Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do.

There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Monday, 12 December 2016

A LEVEL PLAYING FIELD ?


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



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 ? 


----------------------------------------------------------------------------------------


12  June  2016


www.hemenparekh.in / blogs

--------------------------------------------------------------------------------------------------------------------------

hemen  parekh

Mumbai






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