Thursday, March 25, 2010
Contribution to indistrial development
Public enterprises had been established also with the objective of initiating industrial development in the country as well as to work as the model entrepreneur and employer.Their is no up to date data regarding this.However,according to industrial census of 1993/1994,the public enterprises of manufacturing sector have made significant contribution in industrilation.Manufacturing enterprises had contributed 10.2 percent to employment,15.9 percent to labour wage,19.6 percent to out put and 29.2 percent to value added.Government industries were more capital intensive than private sector industries.Labour productivity was also higher in government industrial than in private sector industries.
Government manufacturing enterprises must have remarkably stimulated private entrepreneurs in the form of model entrepreneur However,at present those retired from the job of government enterprises have initiated their own business,which prove this fact.Likewise,the proper provision of salary,allowance,rent,child induced private enterprises to make such provision.
Since government industries are mainly of import substituting natural their to earn foreign capacity to learn foreign exchange by promoting export is almost.In past goods such as handicraft,leather shore,magnesite and medicinal herbs were exported in negligiable quantity and are still continuing to some extent.However,government industries have in a sense made the country self-sufficiant in the production of commodities such as ciggarate,sugar,cement etc.In this way,these enterprises have contributed in fulfilling the basic needs of people even if to some extent.However,machine,equipments,raw materials,chemicals should be imported for these industries on account of which there is no large saving of foreign exchange.
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