Inadequate research on proposed solutions to problems

Projects intended to alleviate problems, such as those associated with underdevelopment, are not always sufficiently well researched and designed to meet the conditions required by the institutions financing the remedial enterprises. Market studies, estimates of effectiveness, profitability calculations, estimates of the skills or the amount of investment actually required, and estimates of raw material needs and prices, are sometimes superficial. Furthermore, the technological processes and production capacities designated are generally not optimum. There is a lack of awareness of the need for good studies and an unwillingness to fund such studies adequately, although they are essential to avoid poor-risk investments.