relationship between the output of capital goods and that of
consumer goods is equally ambiguous. The share of capital goods in the
output of 1968 was officially reported as 55.5 percent, as against 44.5
percent for consumer goods. The apparent discrepancy between the
reported shares in total output of consumer goods as compared with the
production of the light and food industries may be explained, in part,
by the fact that a portion of these industries' output is usually
included among capital goods as, for instance, textiles used by the
clothing industry and leather used by the shoe industry.

Foreign observers have reported the country's industry to be poorly
balanced not only in a technical sense but also in terms of essential
domestic needs and the availability of foreign outlets for its products.
The metalworking industry, for example, which is limited to the
production of automotive and industrial spare parts, apart from a few
types of simple agricultural equipment and household utensils, cannot
even ensure the maintenance of the existing machinery inventory because
it is able to supply only about 60 to 70 percent of the country's needs.
Industrial production is substantially oriented toward capital goods and
exports, whereas the manufacture of products for domestic consumption
continues to be severely restricted.

The leadership is aware of industry's structural shortcomings and is
intent on overcoming them through a program involving the reconstruction
and modernization of old plants and the concentration of small shops
into larger, more efficient specialized units. Progress in this
direction, however, has been hampered by inadequate investment resources
and by a reluctance of managers and workers to cooperate with this
program. It has also been handicapped by a lack of effective planning
and by an inability to organize comprehensive studies that would provide
a basis for both overall and detailed plans.

Nevertheless, a few plants for the manufacture of machine spare parts
and of simple equipment were formed through the concentration of milling
machines previously installed in maintenance shops of various
enterprises, and a step toward the consolidation of small artisan shops
was taken in May 1969 by transforming artisans' cooperatives into state
enterprises.

Owing to the lack of prior industrial experience by both managers and
labor, industry also suffers from poor organization of production and of
the m