Small- and Medium-Scale Industries in the ASEAN Countries
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About the Book and Authors
Small- and Medium-Scale Industries in the ASEAN Countries: Agents or Victims of Economic Development?
Mathias Bruch and Ulrich Hiemenz
Even though small- and medium-scale industries (SMIs) in developing countries are assumed to have great potential for generating income and employment, little is known about their actual performance. In this comparative study of SMIs in the five member countries of the Association of Southeast Asian Nations (ASEAN), Drs. Bruch and Hiemenz use data on performance of SMIs in the 1970s to show that they can significantly contribute to industrial growth and employment creation--but success is dependent on upgrading technology and adjusting product mix. They argue that traditional SMIs, which use simple technologies and produce simple consumer goods, must be replaced by enterprises that supply products for industrial use and manufacture export goods. Modernization, however, has been impeded by industrialization, trade, and credit policies that have favored the development of large-scale industries. The authors conclude that the viability of the SMI sector is critically dependent on changes in these restrictive policies and on programs to promote SMIs. They discuss the design of development policies that will create a macroeconomic environment in which SMIs can not only offer employment and income, particularly to less privileged sectors of the work force, but can also act as vital links in the chain of intra-industrial cooperation.
Mathias Bruch was a research fellow at the Kiel Institute of World Economics for eight years and is currently an officer for the Federal Ministry of Economics. He has written widely on the subject of small-scale establishments. Ulrich Hiemenz was formerly senior economist for the Asian Development Bank and is now head of development for the economics department of the Kiel Institute. He has written many publications on economic development and trade.
Small- and Medium-Scale Industries in the ASEAN Countries
Agents or Victims of Economic Development?
Mathias Bruch and Ulrich Hiemenz
First published 1984 by Westview Press, Inc.
Published 2019 by Routledge
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Copyright 1984 Taylor & Francis
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Library of Congress Catalog Card Number: 84-50860
ISBN 13: 978-0-367-28737-5 (hbk)
The role of small- and medium-scale industries (SMIs) in economic development has been given increased attention by both economists and policy makers in recent years. Unsatisfactory employment records of conventional industrialization strategies revived economic research on the smaller, labor-intensive units of production and induced many governments of developing countries to embark on special promotion programs. All these efforts have been hampered by a lack of detailed information on the characteristics of small-scale enterprises and an insufficient understanding of the interdependence between macroeconomic development strategies and sector-specific government intervention. The purpose of this study is to provide new insights into these important aspects of SMI development based on a comparative empirical analysis of the member countries of the Association of South East Asian Nations (ASEAN). The policy conclusions drawn in the study are addressed to economists and policy makers alike.
Work on the study was carried out in 1980-1982 at the Kiel Institute of World Economics (Kiel, West Germany) with financial support by the Stiftung Volkswagenwerk (VW Foundation). The completion of the study would have been impossible without the assistance provided by the government statistical offices of Malaysia, the Philippines and Singapore. We have also benefitted considerably from the advice of many government officials and economists from ASEAN countries to whom we owe our deep gratitude. The Asian Development Bank in Manila provided the opportunity to rewrite and supplement a first report on the project drafted in German. The final manuscript was completed in November 1983.
Finally, we should like to acknowledge the constant encouragement and constructive criticism of Herbert Giersch and Juergen B. Donges, Kiel Institute of World Economics, and of Seiji Naya and Madhab Godbole, Asian Development Bank. Barbara Bu had to bear with our many revisions in order to prepare the final manuscript.
