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CHAPTRR T V

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86230

In t. e r ra a of growt.h , efficlency, exports, Rtn. (2) The a e 1 e o t. i on of firn s aficorril ng .t.o thla nrl terlon won ld repreaent. a guarant.ee t.hat. p u blin ront. rant. 8    are    • not    benefit.ing

ent.erprises which, t.hanka to t.he prot.eot.1on of the pnhlln sector, are less dynamie and 1nnovat.1ve.

As to the rlak of engenderlng . 1neff1 ciency in t.he firma which prodnee for t.he pobiło aect.or, ot.her mechaniana co o ld be dev1aed; for Ina tance the government. mlght. draw contract.a only wlt.h a single firm (or poaaibly wlt.h a eon a ort. lun of firma) which, In t.urn, cno Id part.ly eon t. rac t. out t.o ot.hera. Tn a uch a way t.here wonld he morę    guaran t.eea    t.hat.    only

efflolent. and compet.1t. i ve firma are .involved 1n t. he proceas. Tn f a c t.,    1t. la In t.he Int.ereat. of t.he firm which eon t. rac ta

out. t.hat. t.he ot.her firma are' ahle t.o aopply t.he demanded Inpnt.a or 1 nt.er med 1 a te goods at. the beat. ava1 labie terna In t.he market..

Tn any case, of course, t.he government. shoold carefully eon t. roi t.he q u ality of the finał- prodoct. In order t.o avoid t.hat. t.he fulflllment. of t.he cont.ract.nal f 1 nano 1 a 1 aapect.a 1 s not aoh1evftd by lowering the qua 1 1 t.at. 1 ve    st.andards of    the

goods and aerv1cea aupplled. Tf any    firm    provea    unable    - or

unwllllng - to conform t.o - t.he eat.abllshed standard a, t.he government. should    be    empowered t.o    break    the cont.ract., even

t.hough auch a at.ep should be t.aken only In ext.re»e caaea. Normally, t.he relat. ionshlpa be twe en t.he publlc aect.or and the flrns ought. t.o be    of    auch    a klnd t.hat any    d e v 1 a 1.1 o n frora    t.he

eat.abllshed terma    of    t.he    cont.ract.    and/or t.he agreement 1s

rapidly correct, ed. Thls , of course, Inplles t.hat. Controls, snperv1s1on, surveys,    etc.    do not.    t.ake place only at    t.he

finał st.age of t.he proceas but regnlarly durlng t.he whole proceas, when 1t. la eaaler, qnicker, and less expens1ve t.o get. 't.hings rlght.' t.hrough ad jus t.ment.s .

(2) Of course, many dlfferent. 1nd1cat.ora could be choaen. For example t.he ratę of growt.h of t.he va1ne added, t.he number of new joha creat.ed In the laat. year(a), and ao on.