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| Sunday, 15 December 2002 |
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| News Business Features Editorial
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NCCSL President's vision for Sri Lanka
'Vision 2010 Sri Lanka' predicts a GDP growth of 8.2 per cent, reduction of unemployment to three per cent, budget deficit at three per cent of GDP, inflation reduced to 3.5 per cent and per capital income increasing to US$ 2490 in 2010, placing Sri Lanka among the newly industrialised countries. The Government depends on the private sector to achieve this vision while it plays the role of facilitator and regulator, Asoka De Z. Gunasekera, the newly appointed President of the National Chamber of Commerce Sri Lanka (NCCSL) told the annual general meeting of the Chamber. "We need to be internationally competitive and change our industry structure towards producing technologically sophisticated and high quality products to meet the requirements of developed countries. The current wave of globalisation has generated widespread interest among countries and within countries in the development and upgrading of national competitiveness," he said. According to the World Economic Forum's Global Competitiveness Report, Sri Lanka's growth competitiveness ranking in 2001 was 61 out of 75 countries. In 2002, it was 59 out of 80. Sri Lanka came behind India, 57 and 48 in 2001 and 2002 respectively, in both instances. "Over the next decade, the major issue will be the adaptation of national economies and national institutions to global change, and the adaptation of global change to global needs." Gunasekera said: "Competition involves enterprises in a struggle to create new competitive advantages by investing in technological upgrading, marketing capabilities and skills formation. Those that have successfully acquired competitive capabilities will survive while the less efficient ones will not. Over time, new enterprises will be established in response to market opportunities and incentives. The Chamber's business viewpoints and interests are being lobbied continuously with the Government for appropriate policy changes. Enterprises and all chambers can pull together, sharing such information across chambers and the labour force and public sector. "A similar analogy can be applied to the private sector - Government relationship in an outward-oriented economy. If markets work well, and are allowed to, there can be large economic gains. If markets fail, and governments intervene carefully to remedy market failures, there can be further gains." He told the AGM that competitiveness should be equated with productivity. The first step towards this is to improve productivity, which is crucial to our country's integration into the global economy. With opportunities for output and trade growth and increased competition offered by globalisation, it is important for Sri Lanka to develop the capacity to pursue strategies for productivity and competitiveness improvement of industries supplying local and international markets. Bringing labour productivity to international best practice involves a long and complex process of investing in the requisite skills. The private sector should take the lead in skills creation together with workers' organisations. The Government can support these efforts by developing a comprehensive workforce development program. Towards this end, Gunasekera said, the Joint Forum of Chambers is discussing with the Government to once again take over the management of the Tharuna Aruna program in consultation with the Ministry of Employment and Labour to restructure the program to meet private sector requirements. As the first step towards a more focused public - private partnership effort to enhance Sri Lanka's competitiveness, the NCCSL and the Joint Business Forum support the formation of the National Competitiveness Council and urge the Government to prioritise this. Policy changes are also needed in upgrading technology and restructuring and modernising the industrial base to upgrade manufacturing standards. Adoption of modern technology, development of human resources in areas where special skills are needed, provision of industrial zones and IT parks with comprehensive infrastructure are of importance. An employment-friendly flexible labour market needs to be introduced to solve labour disputes expeditiously. An output-based wage structure is needed with limited holidays. The establishment of a strong partnership between the Government and private sector together with labour unions, employers and the workforce creates a competitive advantage, thereby creating harmony in industrial relations which would attract large investments and high value employment. The NCCSL commended the Government on its "dedication and positive approach" to set up a new political culture by establishing the independent commissions to create a suitable environment towards finding durable solutions to our problems. "For the private sector to take up this challenge and fulfil our role, the Government has to create an environment conducive to growth of economic activities and investment. Foremost among these are a stable political environment with sustainable cohabitation between the President and the Cabinet; good governance sans corruption, more transparent and accountable to ordinary people; curbing of violence and instilling discipline in all walks of life; accelerated development of infrastructure; deregulation and public sector reforms; and an employment-friendly labour market. With such an environment, the private sector will rise beyond expectations to create wealth, employment and the much expected renaissance in the North and the South," he said. |
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