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Volume :8 Issue : 30 1982      Add To Cart                                                                    Download

TOWARDS A UNIFIED GULF POLICY FOR THE DEVELOPMENT OF MANUFACTURING ENTERPRISES PATTERNED UPON THE JAPANESE EXPERIENCE

Auther : By: Dr. Zakariya Abdel Hamid Basha

The miraculous Westernization of Japan has been mainly expressed through manufacturing. It was with manufacturing that Japan made a bid for world importance in foreign trade. The Japanese model for the development of both small and medium-scale industrial enterprises has, thus, become significant to other countries. This has induced the Center for Research and Training of the Faculty of Commerce, Economics and Political Sciences in Kuwait University, to sponsor a study aiming at exploring the ways and means for the development of manufacturing enterprises in the gulf region, following the Japanese model. This paper is a preliminary part of this survey, aiming at shedding some light in this respect, and investigating the possibilities for the formulation of a unified Gulf policy.

 

Small and medium-scale industrial enterprises (engaging from 1-49 workers) constitute a considerable percentage of the overall number of industrial establishments in the Gulf exceeding in the average some of 90%, and mounting upon to 97.25% in Kuwait in 1973. The labour force associated with these enterprises represented in the mean almost half the total industrial labour force in the region and approximated 60% in Kuwait in 1973. This signifies the important role assumed by these enterprises in the national economies of most of the Gulf States. Labour productivity, however, is remarkably lower in small enterprises in comparison with bigger ones; a commonplace features of almost all Arab and Middle East countries.

 

Small and medium-scale industrial enterprises in the gulf countries are being faced with a complexity of problems and limitations. Most of these are related to: difficulties of marketing, inadequacy of vocationally trained labour, the lower standard of wages, limitation of finance and loans and competition with the unmatched bigger enterprises. Several recommendations were introduced in this connection, following the Japanese experience. The conclusion postulated and projected the future role of small manufacturing enterprises in the Gulf, the possible spheres of their expansion and their participation in the comprehensive development plans and programmes, implemented by most of Gulf States.

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