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Footwear Industry: Improving Business Environment Is More Important Than Industrial Pfer.

2010/9/17 14:14:00 69

Footwear Industry Pfer

Recently, the State Council promulgated the State Council's acceptance of the central and western regions.

Industrial pfer

"Guiding opinions", which mentioned that the central and western regions have the advantages of rich resources, low factor cost and great market potential, actively undertake industrial pfer at home and abroad, which is not only conducive to speeding up the process of new industrialization and urbanization in the central and western regions, but also promoting the coordinated development of the region, and is conducive to promoting the pformation and upgrading of the eastern coastal areas and optimizing the division of labor in the whole country.

According to this guidance, the NDRC and many local governments are also implementing the implementation details.


Promoting eastern coastal areas as a macro strategy

Shoemaking

The pfer of labor-intensive industries to the central and western regions is reasonable, but at the level of policy implementation, how to identify the inherent rationality of industrial pfer and how to avoid the improper intervention of administrative power to the market is a major challenge.

In fact, in the business environment where the local government is stronger and the business is weaker, there is a lack of proper definition of rights and game of rights. Industrial pfer is likely to become a violation of the local government's right to operate independently and distort the normal competition and resource allocation mechanism in the market.


What needs to be reiterated is that, after 30 years of economic development, the economic form of coastal areas has been highly complex, and many industries rely on each other, integrate with each other, and support industries. The formation of the market environment contains many hidden conditions which are difficult to describe simply. Therefore, the Executive authorities do not have enough wisdom to identify which industries are not suitable for coastal areas to continue to develop, and which labor-intensive industries are suitable for migration to the central and western regions.


According to what I have learned, the business situation of many labor-intensive enterprises along the coast is not only true.

management model

Beyond the general problems of upgrading and growth, more problems arise from the unintended consequences of the state's special economic and social policies, which are beyond the normal risk control scope of an enterprise.


For example, since 2009, the typical problem of recruitment is difficult. On the one hand, the active fiscal policy under the 4 trillion country's background has been hard to occupy a lot of labor resources. On the other hand, the inflation caused by excessive money supply has led to a rapid rise in the cost of living of workers, causing their demands for wages to rise.

And the traditional coastal export processing enterprises are all survival of the meager profits, and in the short term, they have no ability to pay a significant rise in labor costs.


In addition, under the current household registration system in urban and rural areas, migrant workers are unable to settle in the employment area and face discrimination in their children's education, medical treatment and social security. Therefore, workers are like migratory birds and can not really settle down in the employment area.

These costs are directly and indirectly reflected in the business operation.

It can be envisaged that if all discriminatory policies related to the employment of migrant workers can be abolished, industrial workers can truly enjoy universal national treatment, so that the supply of labor will certainly be more stable and orderly.


In addition, under the current macro environment, local officials show a lot of special preferences for economic organizations and industries. For example, they tend to favor the gimmicks of large state-owned enterprises, Fortune 500, high-tech and new energy, while they lose enthusiasm for traditional clothing, shoes and other labor-intensive industries. This often means that traditional industrial enterprises are subjected to unfair injustices in terms of tax revenue, land use indicators, credit arrangements, energy conservation and emission reduction, environmental protection and so on.


Therefore, labor intensive industries are no longer suitable for continuous development in coastal areas. It is a simple and crude way of ignoring the inherent complexity of market economy.

Of course, how to improve the pertinence and effectiveness of macroeconomic policies and social policies requires the active participation of the public and entrepreneurs.

If the entrepreneur class has a clear cognition and full consciousness, it can join more social forces and participate in the debates on economic policies and social policies, so that the problems behind them can be presented and the business environment will be improved.

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