Competition for entrepreneurs
Monday, 20 October 2008
ARTIFICIAL rearing of enterprises is never good. Under a wall of protection, such enterprises never develop the urge, creativity or efficiency to produce quality goods at competitive prices in a dynamic business environment.
Protected industries tend to shelter redundancy, inefficiency and pass on the high costs of their production to consumers. The consumers also get poor quality of their products. In contrast, enterprises exposed to competition might be expected to take the steps to improve the quality of their products and improve stock control, to survive.
The domestic industries need to improve their efficiency and quality for a positive influence on the economy. Some naysayers apprehend that domestic industries, unable to compete after trade liberalisation, might die. But this can be no excuse to rear the white elephants in the public sector or their molly coddled equivalents in the private sector.
Undue protection ought to discontinue. But the government can help exchange competitiveness of the domestic enterprises by improving infrastructure. It would reduce the costs of doing business that frustrate enterprises or new industrial investments.
Sajjad Khan
Aminabad Colony, Dhaka
Protected industries tend to shelter redundancy, inefficiency and pass on the high costs of their production to consumers. The consumers also get poor quality of their products. In contrast, enterprises exposed to competition might be expected to take the steps to improve the quality of their products and improve stock control, to survive.
The domestic industries need to improve their efficiency and quality for a positive influence on the economy. Some naysayers apprehend that domestic industries, unable to compete after trade liberalisation, might die. But this can be no excuse to rear the white elephants in the public sector or their molly coddled equivalents in the private sector.
Undue protection ought to discontinue. But the government can help exchange competitiveness of the domestic enterprises by improving infrastructure. It would reduce the costs of doing business that frustrate enterprises or new industrial investments.
Sajjad Khan
Aminabad Colony, Dhaka