It is obvious that the results attained from programs in recent years have been much less than proportional to the very large expenditure of funds and effort. This relative waste of public appropriations and private contributions and of the time of government officials and public spirited citizens deserves critical attention. It is the purpose of this article to identify some of the factors which may have been responsible. The term area development has currency as a descriptive phrase for all organized activities intended to promote economic progress in a spatial sense. In most such programs, however, economic progress appears to be measured principally by the degree of industrialization attained or, more specifically, by the net addition secured to local manufacturing capacity. Chambers of commerce have long directed a major part of their attention toward increasing the size and influence of local business but the special interest in smokestacks received a tremendous stimulus from the national defense and war production programs. The awarding of war material contracts and the enlargement of national industrial capacity through the construction of new plant facilities were direct incentives to the organization or strengthening of means for the presentation of favorable arguments for local war plant location. The close of the war, rather than halting these activities, brought their intensification. Communities that had succeeded in getting new plants sought buyers or new tenants for the war surplus facilities; towns that had been passed by diverted or renewed their efforts toward attracting migrant or foot-loose industries; and both, anticipating a postwar depression, sought every means by which they might enlarge or diversify their industrial or economic base and, thereby, reduce the impact of business decline. In most states, some form of state agency was established to aid these efforts either through general fact-finding and coordinating functions or by the direct solicitation of moving industries. The federal government recognized the special statistical and advisory needs of the organizations by setting up service units in at least two cabinet departments.' In addition, public agencies such as the Tennessee Valley Authority and the Bonneville Power Administration and regional organizations, exemplified by the New England