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 ? 

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12  June  2016

www.hemenparekh.in / blogs

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hemen  parekh

Mumbai

hcp@RecruitGuru.com