Level Playing Field ?
It just does not exist - so
forget about it and make the most of what you have !
For Corporate , it is absurd to demand and for a Government , it is futile to attempt to provide a Level Playing Field
There are no two countries where ALL the resources and the ENTIRE industrial Eco-system , is identical or even closely similar
Inputs for any industry are :
# MANPOWER
* Ave age / Education Level / Skills / Work Ethics / Productivity / Working
Hours / Holidays / Salaries
# RAW MATERIALS / COMPONENTS AVAILABILITY
* Local vs Imported / Supply Chain / Logistics / Duties & Taxes / Quality
# FINANCE / BANK INTEREST RATES
* Equity / Loans / Interest Rates / Collateral / Duration / Terms
# LAND / LOCATION ( of manufacturing unit )
* Availability / Prices / Transport / Availability of Skilled Manpower
# INDUSTRIAL POLICY ( Central and State Governments )
* Exemptions / Incentives / Restrictions / Inspections / Permissions /
Compliance
# MARKET
* Domestic / Overseas
# TECHNOLOGY
* IPR / Patents Regime / Copy-Rights / Home-Grown / Licensing / Royalty
# TAXATION
* High / Low Corporate Income Tax / Capital Gains Tax
# INFRASTRUCTURE
* Internal ( Road-Rail Network / Air-Sea connectivity ) / Warehouses
# COMPETITION
Monopoly / Oligopoly / Cartels / Fierce & Free competition of many
For Corporate , it is absurd to demand and for a Government , it is futile to attempt to provide a Level Playing Field
There are no two countries where ALL the resources and the ENTIRE industrial Eco-system , is identical or even closely similar
Inputs for any industry are :
# MANPOWER
* Ave age / Education Level / Skills / Work Ethics / Productivity / Working
Hours / Holidays / Salaries
# RAW MATERIALS / COMPONENTS AVAILABILITY
* Local vs Imported / Supply Chain / Logistics / Duties & Taxes / Quality
# FINANCE / BANK INTEREST RATES
* Equity / Loans / Interest Rates / Collateral / Duration / Terms
# LAND / LOCATION ( of manufacturing unit )
* Availability / Prices / Transport / Availability of Skilled Manpower
# INDUSTRIAL POLICY ( Central and State Governments )
* Exemptions / Incentives / Restrictions / Inspections / Permissions /
Compliance
# MARKET
* Domestic / Overseas
# TECHNOLOGY
* IPR / Patents Regime / Copy-Rights / Home-Grown / Licensing / Royalty
# TAXATION
* High / Low Corporate Income Tax / Capital Gains Tax
# INFRASTRUCTURE
* Internal ( Road-Rail Network / Air-Sea connectivity ) / Warehouses
# COMPETITION
Monopoly / Oligopoly / Cartels / Fierce & Free competition of many
Now , Industrialists / Businessmen , all over the World , will continue to compare the INDUSTRIAL INPUTS existing in their own country with the following BENCHMARKS :
# Most Business Friendly ................................... Ireland
# Lowest Corporate Tax...................................... Kuwait ( 0 % )
# Lowest Hourly Wages ( PPP basis ).................... Bangladesh ( $ 0.25/hr )
# Highest Working Hours.................................... Mexico ( 42.5 / week )
# Least Govt mandated paid holidays................... USA ( Nil )
# Highest Manpower Productivity......................... Switzerland
# Lowest Bank Interest Rates............................. Denmark ( 0.05 % )
# Demographic Advantage of a Young Population....India
# Ease of Introducing unpopular reforms.............. China ( Dictatorship )
There is , quite likely , some parameter on which a Country can claim to have distinct advantage over all the other countries
It could have something to do with its Geographical situation / Historical evolution / Political System / Legal Frame-work / Societal Norms etc
It is not possible to replicate advantages of all of these Benchmark Countries , into any one single country
At the same time , it is very important to keep studying these Benchmarks and ask ourselves :
" How have these countries managed to reach , where they are ?
What REFORMS can we introduce in our own system to catch-up ?
Are there any parameters in which we ourselves are a Benchmark to others ?
What should we do so that we do not slip-up where we are ourselves , some
kind of a Benchmark , to the rest of the World ?
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12 June 2016
www.hemenparekh.in / blogs
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hemen parekh
Mumbai
