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By James G. Brown

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As the domestic economy develops, disposable income and urban population grow and create markets for a greater volume and diversity of processed goods. When farm incomes rise and labor productivity increases, more and more production capacity can be diverted from agriculture to meet this new demand. Prepared foods such as bread, tortillas, and processed cassava quickly become standard items in urban and even rural diets. Canned goods such as tomato paste, condensed milk, and tinned fish find their way into village stores and weekly markets in the most remote regions.

At present the substance of the EDI's work emphasizes macroeconomic and sectoral economic policy analysis. Through a variety of courses, seminars, and workshops, most of which are given overseas in cooperation with local institutions, the EDI seeks to sharpen analytical skills used in policy analysis and to broaden understanding of the experience of individual countries with economic development. Although the EDI's publications are designed to support its training activities, many are of interest to a much broader audience.

It is enough to know what product is required, on what schedule. Once in possession of that knowledge, the manager must focus on the movement of materials through the production and marketing chain. Conversion and throughput efficiency become important measures of material flow in the constant struggle to make certain that unnecessary costssuch as wasted inputs, oversized inventories, and redundant staffare kept to a minimum. Page 8 From the plant manager's point of view, the best approach to understanding the enterprise is the reverse of that required for initial investment analysis.

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