TopCat
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How are we an export driven economy?
90% of our industrial workforce works in export oriented industry. Without those industry our economy will come down to zero.
What do we export in the big western economies in
bulk other than Garments. Malaysia Japan & S.korea are eg of export driven economies as they
export Hi-tech Value added products unlike us.
If you did not know except Malaysia everybody started with weaving industry. I still remember buying Japanese Tetron which were a delicacy once upon a time. Toyota started their business as weaver.
Protectionism is a must to devolop nascent industries
If walton makes a car today do you think it can survive competition from Toyota & Nissan.
Well, I already told yu, our domestic car market is heavily protected yet there is no car industry. What do you protect when you have nothing to protect. The car market is so small that nobody ever will invest in car plant. First you need to create a market. Instead of imposing high taxes govt should encourage consumers to buy few cars so that the others will be interested in investing for the market.
Protectionism & GOV support comes in different forms like subsidising R&D cost, tax holidays etc.
Well that can be done in a selective manner. No problem with that.
Increasing tarrifs on imported cars won't allow devolopment of Automobile sector. Have you heard of Japanese Gov support of devolopment of colour TVs in the 1960's. The Jap gov subsidized
R&D of the major competitive campanies while forgein cars were banned throughout the 60's and
may be in the early 70's as well. They only opened up when they knew their cars are good
enough to compete in the Intl market. Its better to have home made junk to help an industry
grow at home.
Yes govtment can invest in R&D same way as United States. Thats how Boeing and IBM became world leader. These can be done in indirect manner, like govt commit to buy technology and to provide cost and effort for R&D. But for a 3rd world country like us, we are a long way to go before govt can do such things. We even dont have enough money to repair our roads.