^{Page 415 note 1} For example, see O.E.C.D. Development Centre, Choice and Adaptation of Technology in Developing Countries (Paris, 1974), particularly ch. I and pp. 161–4.Google Scholar

^{Page 415 note 2} U.N.D.P. Technical Advisory Division, Appropriate Industrial Technologies: a note for discussion (New York, 1975), mimeographed.Google Scholar

^{Page 416 note 1} It is worth stressing that these factories are fully designed and their operations are fully costed. Their ‘construction’ is based on visits to shoe factories in a number of developing and developed countries, manufacturers of capital goods, research organisations, and government agencies, as well as a careful study of the technical literature.

^{Page 416 note 2} This somewhat confusing terminology is conveniently brief. In principle, the least-cost technology could also be either the most machine- or the most labour-intensive technology. It never is in the comparisons reported in Table I.

^{Page 416 note 3} For an account of the view of the investment decision which underlines this assumption, see Pickett, James, Forsyth, D. J. C., and McBain, Norman S., ‘The Choice of Technology, Economic Efficiency and Employment in Developing Countries’, in Journal of World Development (Oxford), II, 3, 03 pp. 47–54.Google Scholar

^{Page 419 note a} Pairs of shoes per shift: A = 200, B = 1,200, and C = 7,200. I = most machine-intensive, 2 = most labour-intensive, and 3 = least-cost technology.

^{Page 420 note 1} Even this should perhaps be qualified. If raw materials — which account for a considerable proportion of working capital — are local, then the relative constancy of working capital across technologies in Table I would justify a particular focus on the quite marked variations of fixed capital, the financing of which could normally be expected to represent a drain on the balance of payments. Nevertheless, it is important to accept that this is a qualification to, not a contradiction of, the points made in the text. The force of the argument about savings (investible funds) can quickly be seen by appreciating just how little economic activity could be financed in most developing countries if ‘best-practice’ techniques were adopted in a handful of industries.

^{Page 422 note 1} See Pickett, James and McBain, Norman S., ‘Developing Country Export Potential and Developed Country Adjustment Policy’, in O.E.C.D., Adjustment for Trade: studies in industrial adjustment problems and policies (Paris, 1975).Google Scholar

^{Page 422 note 2} The size of the expansion was arbitrarily, but conveniently, chosen to accommodate information available from our pilot investigation in Ethiopia and Ghana. It also amounts to some 8 per cent of British imports of leather shoes in 1972.

^{Page 422 note 3} To write of a small-scale, clearly not automated, ‘factory’ employing three persons, is obviously straining language somewhat. It is convenient, however, to use the same term for the two basic alternative forms of organization.

^{Page 425 note 1} One possible argument in favour of the very small enterprise is that it might, in some circumstances, produce more future entrepreneurs than the factory system. This is, however, such a strongly qualitative argument that it cannot be taken either as settled or decisive.