the net capital structure. It is not a mere subtraction between revenues and allocated expenses. Current valueaccountancymeasurements also reflect the setting aside of adequate reserves for the economic replacement of the assets of the business or project, which simultaneously convey the anticipated replacement financing requirements. In many developing economies there is a tendency to distribute the maximum amount of income, and where income is historically computed there is a danger that in addition to “true income” part of the actual capital of the enterprise
International Monetary Fund. External Relations Dept.
This paper discusses infrastructure development and building of roads in Honduras. The paper highlights that in countries with backward transportation systems, the concept of “road” takes on an almost philosophical significance. The paper discusses the Western Highway in Honduras that was financed in 1961 by the first credit ever made by the International Development Association, the World Bank’s soft-loan affiliate. Between its terminal points, the highway provides individuals of the area with reasonably easy access to markets, and is encouraging them to expand their agricultural production.