Monday Nov 25, 2024
Monday Nov 25, 2024
Friday, 25 October 2013 04:25 - - {{hitsCtrl.values.hits}}
In this address, Bhargava noted that the road ahead for emerging countries such as Sri Lanka and India is likely to be a difficult one with the young population and their thought processes, which are vastly different to that of the older generation.
Inspired by technology and the likes of social media, the awareness levels of the youth of today are at a degree that older generations find impossible. This has also made them impatient and no longer do they believe they must sit back and wait patiently for fate to deal them a hand.
“This means they are impatient for change and want a life that is not possible without development and growth. Politician and others must recognise this change and that the young cannot wait for fate to dictate their lives,” Bhargava said. “Hence they need to be productively employed in a growing economy.”
Globalisation and competition
With every country attempting economic growth, the world is seeing competition rapidly intensifying. Many tend to believe that this kind of globalisation is harmful and will result in the death of local industry and that protectionism on the scale that it existed 20 years ago must be in place. This however is wishful thinking, Bhargava noted.
Competition leads to market expansion and growth. It is the consumer who grows that market and they will keep growing the markets that give better value for money at high quality. Exports are now being opened with barriers to trade being removed through FTAs and various initiatives of the World Trade Organization. This in turn expands the scope for developing markets in terms of cost, quality and sales.
“Countries must attract a great deal of investment, whether domestic or foreign, and take advantage of growing and available markets both domestically and internationally,” he said.
Bhargava noted that the role of public policy plays an important role here. “Governments must frame public policy in a manner that encourages investments in a country. Several of our countries make it very hard for businesses to come in.”
Innovation is key
However, setting aside the government’s role, companies must also play their part in growing their businesses. “The essential condition is that companies must always be able to meet customers’ needs a bit better than their competitors. What is relevant is how better you are doing than anyone else in the area. This is how innovation can help.”
The experience in India in the 1950s when there was a highly protected economy is an example of how a country can dry up and get into trouble. In 1991, forced by circumstances, policies changed and moved to a more market-driven economy. In areas where freedom was allowed, there was tremendous growth.
This could be seen in the telecom sector in India, Bhargava said, noting that while there are now 800 million mobile users in India, in 1991 they had to wait for years to get a telephone line and hours to connect from one state to another. “This is what happens when there is deregularisation.”
Innovation for growth
Innovation however doesn’t mean only invention. It is but one stage in the process of innovation. There are various limitations in trying to innovate only in the lab, Bhargava said, and the requirement of large expenditure is key.
“Research work of this kind requires a multi-disciplinary approach. This is why such research takes place on a partnership basis.” However, this kind of research doesn’t guarantee results in terms of a profitable product or technology. Debt funds are also too risky. “Small companies will rarely have the means to set up the kinds of research we are talking about.”
This doesn’t mean smaller companies cannot innovate. The history of Japan’s industrial success gives good guidance on how emerging countries can build, Bhargava assured. They gathered technologies from various companies and countries but improved products and manufacturing technologies. This is a process that companies everywhere can follow.
Learning from the Japanese
How do you make it happen? Education is key. In Japan during this period education happened at two levels – the business of getting knowledge in schools and creating a value system in children which consists of discipline, cleanliness, etc. “That is how the Japanese miracle took place.”
Management also had to make workers change their attitudes. “They had to convince workers that their wellbeing and company growth was mutually interdependent,” Bhargava said. “This was done through action and behaviour of the management and the result was that workers voluntarily participated to improve productivity and quality, lowering costs and establishing the fact that human beings if properly educated and motivated can make a big difference.”
The Japanese Government also had policies that supported the growth, with the industry and Government being on the same side instead of being adversaries. “We could follow the same pattern for growth,” he recommended.
CA Sri Lanka President Sujeewa Rajapakse, National Conference Committee Chairman Lasantha Wickremsinghe and National Conference Technical Committee Chairman Dulitha Perera also addressed the gathering.
Pix by Upul Abayasekara
