BUSINESS & ECONOMY

Indian transporters strike cripples Nepal

By a Staff Reporter

Due to the rapid development information technology, the printing sector around the world has been facing a tremendous challenges. With the view of making the South Asian printers competent in the global market, the 2nd South Asia Print Congress and Exhibition was held in Kathmandu from March 1 - 4, 2000.

In the process of globalization and the rapid development of electronic media, the printing sector has become a matter of less importance. The four-day long meeting and exposition that concluded on Saturday discussed on how the print media can be made competent in the coming days. It also highlighted on the use of modern technology by the South Asian printers so that they can be made competitive in the global market.

Speaking on the concluding session, S. R. Sharma, Chairman of Conference Committee, said that the main challenge of the South Asian printers is investment. “With the new technologies comping up in the field of printing, the entrepreneurs are finding it difficult in investing for the them,” he said.

Sharma also talked about the new machines and technologies that were placed for exhibition during the programme. “The meeting and exposition has helped a lot in understanding the new technology as well as in discussing challenges related to it.” The four-day meeting was targeted at developing cooperation among the countries in this region to enhance their capabilities.  

Chairman of South Asia Print Congress Steering Committee Viren Chhabra urged the gathering to learn about the progress the developed countries had made in the print sector and act accordingly to take up the challenges that lie ahead in the world market.

Suresh Malla, Chairman, 2nd South Asia Print Congress, said that along with the development of Information Technology, the South Asian countries have also made progress in printing technology.

Presenting a country report, Babu Raja Shakya, Chairman of Nepal Printing Association, said that despite developments in the Nepalese printing sector, almost fifty percent of Nepal’s printing jobs are done in foreign countries. According to his report, out of Nepal’s yearly expenditure of Rs. 3 billion in printing, almost Rs. 1.5 billion worth printing jobs are done in foreign countries.

“That is not because we are less competent. We can give as good quality as the foreign printers. But we are getting only 25 percent of our capacity,” Chairman Shakya said.

He also informed that while bringing in pamphlets, posters and other materials printed at foreign countries, they are exempted at zero percent custom duty as if they are education materials. But, when the printers import raw materials like colours, printing ink and papers, they have to pay VAT on it.

Bikash Sarker, co-chairman of the Steering Committee and Surendra Dhote, General Secretary of All India Federation of Master Printers also spoke on the occasion. The meeting was participated by representatives from all South Asian countries except Pakistan.

Trade must extend to poorer countries

By J. Denis Belisle and Michael R. Czinkota

In the growing world economy, the North can no longer rely solely on trade led by Fortune 500 corporations. Trade must also increase in the South if all are to benefit from a growing world economy. Policy makers and businesses of all sizes must realize the strategic importance of the developing world, not just from the traditional sociopolitical perspective, but from the perspective of fostering an integrated global economic framework. It is in every one’s best interest to respond to global trends in ways that will foster growth in all countries, including the least developed ones.

Why? Simply put, trade between firms in developing and developed countries provides the margin for expanded opportunities for trade and investment. There is a mutuality of benefit in the trade, an inextricable link that contributes to economic development in all countries. Companies that export to developing countries will expand into new markets, reaching consumers with increasing purchasing power. Companies importing from developed countries will gain access to high-quality, lower-cost their competitive edge.

Yet the question remains: how is it possible to help developing countries while letting market forces prevail? Based on extensive research into trends in international business conducted at Georgetown’s McDonough School of Business and on practical experience gained at the International Trade Centre, this article identifies issues in international trade that will affect developing countries, outlines some initial steps taken by ITC to help businesses and countries benefit from these global changes, and presents and opportunity not to be missed.

The three most important dimensions are trends in globalisation, new forms of partnership and the rapid development of information technology.

Globalisation
Worldwide manufacturing and out-sourcing strategies have made the production of goods cheaper, faster and better. To compete, producers must be able to measure levels of competitiveness and correct weaknesses. This requires market information, an ability to understand and forecast demand and creativity in adapting products and finding a market niche. These requirements add up to three strikes against developing countries. They have serious limitations in research and development, great difficulty in accessing trade information and often lack sophisticated marketing skills. Creativity and new technologies, on the other hand, present these countries with unique opportunities to catch up with the industralized world. Harnessing these for the benefit of developing countries is a collective challenge.

Competitiveness is the sine qua non of success anywhere. Yet to become competitive, firms in developing countries must be able to measure and evaluate their performance. ITC has therefore developed a “competitiveness gauge” that enables firms in developing countries to compare themselves to baseline data from manufacturers around the world. Producers can compare their production, organisation and practices with those of enterprises in the same sector, and know where to improve their performance.

New forms of partnership
As developing countries foray more deeply into the global economy, intense teamwork between business and government and among business people themselves has become imperative. Firms and governments must bury their mistrust and communicate constructively on strategies and collaboration. At the firm-to-firm level, businesses must begin to share costs and lessons learned. An emerging trend in the industrialised world is for companies to share the costs of assets such as infrastructure, buildings, employees, storage, transport, repairs, telecommunications systems and the joint marketing of complementary products. Developing countries have to find their own models for joint ventures, value-added partnerships, strategic alliances and cooperative agreements. These are the ways of the future where risks are shared and partnerships rule the day.

ITC has pioneered tools for developing-country exporters that address criteria for successful cooperation between the public and private sector, as well as with non-governmental organisations and agencies such as trade promotion organisations and industry associations. Akin to Pareto’s 80:20 rule, these tools are kept 80% the same while 20% are customized to respond to local needs, thus achieving economy and customization in a partnership-based approach. The executive forum on National Export Strategies held by ITC in autumn 1999 provided a unique opportunity to review success stories of partnership-based and export-led global development strategies.

Harnessing communications
Countries without efficient telecommunications infrastructure were long seen as doomed and excluded from benefits of electronic commerce such as faster service and shipment, more precise order transmittal, online interaction in the production process and specific forecasting of supply and demand. Yet the lack of up-to-date communication is no longer a permanent handicap. It used to be that governments regulated and controlled communication (and postal) services because only they could afford to. Today, the investment required to establish a basic national telecommunications system has fallen drastically, allowing private firms to bring telecommunications to any country — and to do it within two years. The question is not if, but when, developing countries will participate in and benefit from trade based on global telecommunications.

As developing countries become ready to participate in the new electronic economy, ITC serves as their one-stop shop for guidance on implementing commerce strategies. It offers advice on cybermarketing, international purchasing, quality and logistical aspects of e-commerce for agricultural and manufactured goods as well as services.

Responding to needs identified through research, ITC offers progrmmes that can match exporters and importers of fresh fruit and vegetables, profile successful service-export strategies, sponsor online exhibitions of products from developing countries and provide answers to commonly asked questions regarding e-commerce.

The implementation of the World Trade Organisation multilateral agreements has brought about unprecedented growth in international trade. Helping developing countries to capitalize on it is essential. They must be assisted in practical ways to catch up with the industrialized.

Developing countries have to be part of the surge in global well-being, and they are ready to assume the responsibility of becoming successful partners in the global business community. As a result of profound changes under way in globalisation, telecommunications infrastructure and technology, industralized countries would be well advised to trade with firms in developing countries, not only to enhance trade and investment opportunities in this promising, prosperous world of ours, but to lower production costs, extend product life cycles, reduce costs of importing components, services and manufactured goods and expand market access. Otherwise, chances for development, growth and stability will be jeopardized for all, North and South alike.