effectiveness of an investment include: (1) duration of the 

 investment cycle (period from construction initiation to first 

 use of project), (2) the mass of envisaged production and the 

 birth rate, (3) costs of production (operating costs plus the 

 annual eguivalent of capital costs, which are called costs of 

 adaptation or transformation) , and (4) length of time of 

 exploitation of a planned investment. An example involving the 

 computation of an index of effectiveness of a planned capital 

 repair for a particular pond project is given, following an 

 explanation and discussion of the variables and assumptions in 

 the index. This index is essentially an annual cost benefit 

 ratio and was obtained from the Polish Ministers' Planning 

 Commission instructions on the ecomonic comparison and evaluation 

 of the efficiency of investments. A previous application by the 

 author is cited (1967, Gosp. Rybn. 19(2): 3-5). 

 Subject descriptors: 



Investment model; benefit-cost analysis; economic concepts; 

 methodology; Poland. 



254 



Szamborski, Jerzy. 

 1967. 



Some elements of the economic efficiency of pond production 

 (Niektore elementy ekonomicznej ef ecktywnosci produkeji 

 stawowej ) . 



Gosp. Rybn. 19 (2): 3-5. (Copy of translation available on loan 

 from NMFS.) 



Output per hectare of carp (ponds) and beef cattle (pasture) are 

 compared on the basis of meat and protein weight, and live-aniiral 

 value. This is done for the primary (natural) increase, then 

 with specified amounts of fertilizer, and finally fertilizer and 

 feed in specified amounts. Carp is clearly more productive. 

 However, investment projects for the two kinds of production 

 differ in several particulars and the author then explains and 

 applies a general formula for comparing the efficiency of 

 investments, as obtained from the Polish Ministers* Planning 

 Commision instructions. This formula takes account of various 

 costs in the numerator and the value of output in the denominator 

 all on an annual basis. It is an annual cost/benefit ratio. 

 [Annotator's note: certain computational assumptions differ from 

 those sometimes used in U.S. water resource agency benefit-cost 

 analyses respecting the interest rate or discounting rate effects 

 of time, although a time-adjustment factor is used. ] In terms of 

 annual cost-benefit ratios, beef and carp are similar or closer 

 in investment efficiency than they are on the £>asis of simple 

 productivity, but if the flood prevention effects of carp ponds 

 are counted, carp are again the winner over beef. Of course, 

 possible exceptions for individual projects are recognized. 

 Subject descriptors: 



Enterprise comparison; carp; beef cattle; productivity; 

 benefit-cost analysis; economic concepts; economic feasibility; 

 investment model; Poland. 



117 



