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Increasing quality standards of exports is costly business
Wednesday, 20 July 2005 - 5:26 AM SL Time
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Sri Lankan business community is expecting tougher times in relation to exports. From January 1, this year many countries, especially to the European Union (EU) are expected to introduce stringent quality standards on imports to those countries. The measures are expected to place difficult conditions against local exports, which do not adhere to internationally acceptable standards.
However, to overcome the situation, the government`s science arm, the Ministry of Science and Technology, has already planned to setup a supervision and accreditation statutory body.
`We already passed a bill relating to this issue`, said Minister of Science and Technology Professor Tissa Vitharana.
The Parliament of Sri Lanka passed the Sri Lanka Accreditation Board for Conformity of Assessment, a bill to provide for the establishment of the Board of Sri Lanka Accreditation for Conformity Assessment and to provide matters connected herewith or incidental thereto.
`The member countries of EU and some leading countries will impose certain standards on import items which will be initially introduced by the International Standards Organization- ISO from 1st of January in year 2006.These standards would stop all of our export products including natural tea,` lamented Prof. Vitharana.
At present Sri Lanka Standards Institution-SLSI and some other state and private organizations issue certifications on local products. However, the international accreditation agencies have refused to accept local certifications. Due to this situation, the local companies who were engaged in export business use to obtain ISO certification from leading international certification and accreditation agencies to face the global requirements.
`Its costly business`, said Minister Vitharana.
`The international accreditation agencies charge over two million Sri Lankan Rupees to issue an ISO certification. Most of the local exporters cannot afford the price,` said Prof.Vitharana who hopes to introduce the affordable rate for international accreditation of local export products.
The recently introduced act on Sri Lanka accreditation would assist us to overcome this tedious situation. It allows supervising all local laboratories, which issue standard certification on local products. It also promotes accreditation activities in conformity with the guidelines laid down in the National Quality Policy as approved by the Cabinet of Ministers.
It is further learnt that the proposed Supervision body will ensure competence in internationally accepted accreditation practices, would facilitate international co-operation in accreditation and to conclude agreements on mutual recognition with foreign and international bodies. The Ministry of Science and Technology is now in the process of setting up the Sri Lankan Accreditation body suppose to maintain an international standard.
Sri Lankan Accreditation body is expected to include wider participation such as representatives of the government, trade chambers, Scientists and specialized resources personnel who are engaged in the issuing the of certification.
`The Ministry received an allocation of 10 million Rupees to set up the proposed accreditation board. We expect the introduction of anti-dumping laws to prevent sub-standard imports too,` said the Minister.
`At present various countries dump sub-standard products in the local market without obtaining of any kind of certification over their products. The new regulations will minimize the imports,` Prof. Vitharana said.
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KURAL
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20 Jul 2005 10:53:15 GMT Report for Abuse
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Well mr. the Minister of Science,
i know it's a cheap buissnes..
i hope Sri Lanka will take measure in this sense. I hope Sri lanka will be able to make standard products for the export in EU,...
otherwise their competitor tamils in EU will be able to have the monopoly.. and everybody know why. |
radaw
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20 Jul 2005 21:23:55 GMT Report for Abuse
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| KURAL, Are you implying that Tamils are waiting to create a monopoly wherever they go? I don't think ordinary Tamils think in your line. |
newbie
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20 Jul 2005 21:55:10 GMT Report for Abuse
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Anyone have idea about the quality standard of Chinese products? Most of the retail suppliers in North America import products from China. China is considered as world manufacturer and if you go to any retail shop you may find plenty of made in China products and the prices are also very competitive.
World biggest company which is Wal-Mart imports more that 70% products from China and the quality is not too bad. Today, no country can compete with Chinese products and price. For sure they have to follow all those quality standards when they export to other developed countries.
Our professor is saying that maintaining the quality of the product is costly business, so my question is how come China maintains the quality of the product while lowering the cost. Can?t we learn those tricks from them? |
radaw
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21 Jul 2005 00:02:10 GMT Report for Abuse
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Newbie,
I?m not an economist but I'll try to explain my view as I see it. Although most of these products are 'Made in China' the profits goes to companies who have invested in China. Otherwise china would have been the richest nation in this world. Whenever they see low cost destinations they pack everything in containers and go. It happened to a company I was involved with in Malaysia they shifted to Vietnam.
The Main reason for investing in China is cheap labour. Cheap labour means low stranded of life under the tyranny of communist rulers. You see mate, There are no or less government regulations meaning no labour dignity, no minimum pay, No max working hours, no healthcare benefits, no insurance, no strikes. No Strikes not because of they are happy. Few people tried to fight for their rights in Tiananmen Square the Chinees government sent tanks to crush thousands of its own people.
I have seen a program in discovery channel how workers are treated in china. People are migrating from rural parts of China to work in cities live like animals. I have seen a few people who lost their limbs due to work place accidents complaining that they haven't received any compensation. Imagine the same scenario in US. They didn't show their faces. This is half of the story. A minder followed the TV crew wherever they went.
China is now facing an energy crisis because of the rising demand. Have you seen thousands of coal miners getting killed for the lack of safety procedures?
As you may have experienced workers rights are well protected in western democracies. As a carpenter you can earn the same amount as a doctor. I think carpenters earn more than doctors. Countries like SL well...ehh.. I will say the situation is not bad as in China.
So China..... Is this the example we want to follow? You decide. |
Gamma
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21 Jul 2005 01:54:15 GMT Report for Abuse
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Radaw,
Cheap labour in China does not mean low standerd of life. Chinese government take care about health, education and lots of other social benifits to their people. That is why their labour is cheap. One reason for the rising oil price is the consumer demand in China. Lot of people are buying vehicles and they have the fastest groving market for autos. Work place accidents are happen around the world. Only one thing I agree with you is their coal mines are not safe. |
newbie
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21 Jul 2005 02:59:00 GMT Report for Abuse
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Radaw:
I found your post is very useful information about the other side of the China Labor market.
I have some different view regarding the Chinese labour market and manufacturing strategy. We all know the theory of demand and supply, China having a largest work force in the world, the problem of unemployment or under employment is much more serious than other developing countries. So that, the employers always pay lower salary for their employees if the government has not imposed a minimum wage.
This is happening in Sri Lanka right now inside the free-trade-zone. Some labor rules are not applied for those companies in free-trade-zone and they have the power to negotiate the salary and the number of hours to work.
I found in Encarta that China GDP in 2001 was US$910.00 which is good compare to the other developing countries in Asia. The cost of living in China is much cheaper than any country in the region.
My concern is the production strategy and methods that Chinese are implementing today to be a leading supplier in the world. Today China is the world leading Steel supplier, textile, automotive part, mining, electronic equipment you name it, China has. We have lot of things to learn from them, their industrial plan, technology and manufacturing strategy, how to establish trade agreements with other countries, how to maintain the quality, these are the positive aspect of China. In mass scale manufacturing environment, the manufacturing cost will be distributed among large number of units and so that the cost of a unit is low. We should learn from China how to produce the high quality product lowering the cost using mass scale production techniques.
Frankly, think about the Sri Lanka working environment. How many employees are actually working 8 hours per day? When same person migrated to developed country, they work like a slave, no leave, no poya days, no sick days, and always punctual. This is our attitude. Do you have any guarantee about the job in these countries? Tomorrow your employer may say, ?ok Newbei you worked very hard all these time, unfortunately our business decided to close down some of our department and your are no longer be a employee of this company. Here is your last pay?
What so you think about Sri Lanka employees and work environment? We have lot ofpositive things to learn from China and other countries. We should change our attitude. |
Gamma
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21 Jul 2005 04:58:41 GMT Report for Abuse
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Newbie,
In a developed country if you lost your job, you can go to the workers compensation board.
You can have two weeks paid vacation for a year plus some medical leave. It is true that their public holidays are not many. You cant force the people to work without any motivations. |
radaw
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21 Jul 2005 05:00:57 GMT Report for Abuse
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Gamma,
I partially agree to what you say. Health, education and other social benefits are provided in PRC although they are not up to the standards of western countries. But we have to remember most countries provide these services free anyway. Are you suggesting in western countries people spend their additional income to achieve what is provided free in PRC. For me still the salary gap is enormous.
I'm not in favour of these caged chicken farm type of societies. One line to feed the hens and other line to collect the eggs. I'm not sure how long it will last. People cannot be controlled like that. In western countries workers are better looked after. Whether the employers like it or not they have to comply with some rules and regulation. That's why if you loose a limb or something in a work related accident they are compensated. Work place safety is a must in these countries.
Although I mentioned cheap labour as the main reason the next reason is stability. But the price you have to pay is FREEDOM. Work related demonstrations do not exist in these countries. I had opportunity meet many people who used to work in that type of environments who admire the freedom of the societies we live in.
Is this what you call Proletarian dictatorship (also called workers' dictatorship)? |
radaw
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21 Jul 2005 05:03:04 GMT Report for Abuse
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Newbie,
I try to have my own opinion on all the issues. True china has the largest workforce. That doesn't mean they can use them as tools. Do you know in some western countries there is a campaign not to buy certain products made in China due to the working conditions?
What PRC promise investors is cheap labour, Environment free of trade disputes and corporate tax free (or less) business. Although you See Made in China on a Sony TV. It doesn't mean Chinese people made it. They are just assembly workers. I worked in such a company. All the Higher Management was Japanese. All the blue prints and parts were imported. Quality control is done by these people. After they left none of the workers had the ability to start their own factory.
What is the purpose of compromising democracy to achieve that in Sri Lanka? I know mainly leftist political parties are guilty of misleading the workers to go on strike for political advantage. There were huge newspaper headings in Singapore newspapers when one of the Prima flour employers was taken hostage by the striking workers. In my opinion except China, North Korea, Vietnam and Cuba all other countries are none communist. World 's biggest economies don't follow the communism. The way things are going these countries will give up failed communist theories and adopt the market economy, which is very successful. So instead of taking examples from PRC why don?t we learn from other countries?
I know that is the sad situation in Sri Lanka. But if not for this war we would have been in a better position. I don?t think any future government will change the economic polices. They simply can't.
PS: Could everyone share you genuine opinion on this? I think this is a very good question asked by Newbie. |
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