Inter-Economy Comparisons: A Case Study

Inter-Economy Comparisons: A Case Study of Industrial Development, Currency Devaluation, and Inflation provides an in-depth exploration of the challenges and opportunities faced by developing nations in establishing industrial projects under diverse economic systems. The study compares two modern cement plants—the Gresik plant in Indonesia and the Cushenberry plant in the United States—focusing on their capital costs, operational expenditures, and economic contributions. The analysis highlights the complexities of industrial development in newly independent nations, where economic and political volatility often intersect with the need for self-sustaining growth. The book also examines how infrastructure deficits and the broader socio-political environment influence costs and outputs, providing a comprehensive framework for understanding industrialization in transitional economies.

Divided into three parts, the study first compares the capital investments required for the two plants, revealing the higher costs incurred in Indonesia due to the necessity of establishing additional social overhead capital. The second part delves into operational cost comparisons, employing a custom accounting framework to address disparities caused by inflation and differing economic systems. The final section evaluates the Gresik plant’s contributions to Indonesia’s economy and its broader implications for the country's Eight-Year Development Plan. Through detailed analysis and statistical appendices, the book not only sheds light on the economic dynamics of industrial projects but also offers policy recommendations to guide future development initiatives in similar contexts.

This title is part of UC Press's Voices Revived program, which commemorates University of California Press’s mission to seek out and cultivate the brightest minds and give them voice, reach, and impact. Drawing on a backlist dating to 1893, Voices Revived makes high-quality, peer-reviewed scholarship accessible once again using print-on-demand technology. This title was originally published in 1965.