EDITORIAL: We Need Manufacturing, Not A Consumer Mindset
Our trade fairs or exhibits are always fixated on finished products or commodities. It is a consumer’s habit. We cannot improve our economy if we have only a consumer mindset. Aside from entrepreneurial ethos, we must develop a culture of manufacturing. We cannot prosper under a shopper outlook and continue to think as consumers.
Capital goods are the physical assets that are used in the production of other goods and services, such as machinery, equipment, buildings, and infrastructure. Capital goods are essential for economic development, as they increase the productive capacity and efficiency of an economy. We need development policies that can affect the availability, affordability, and quality of capital goods in a country.
We must innovate not only business in marketing but also in manufacturing, processing, and servicing. Since we are basically an agricultural country we must focus on agriculture or farmers Technopreneurship development. In order to achieve this, we must not only deal with planting, animal husbandry, and fishing but also with post-harvest processing or manufacturing. Hence, we need to promote and promote the capital goods manufacturing industry to produce local agricultural tools, equipment, and machinery.
On our trade policies, we have to work on reducing the importation of equipment that is already being produced locally. We can impose high tariffs for importation of capital goods that are 100% foreign manufactured.
We must provide incentives to local manufacturers for the development of the capital goods industry, such as subsidies, tax breaks, credit facilities, research and development grants, and public procurement. Industrial policy can also promote linkages and spillovers between the capital goods sector and other sectors of the economy.
Our education sector must be deregulated and open for curriculum innovation, especially in engineering and technology. Nonformal training seminar workshops must be opened for new development. Product research and development must be introduced college curriculum. Training-cum-production program policy must be adapted to improve the human capital that is required for the design, production, use, and repair of capital goods. and even imposed on engineering, managers, and technicians’ courses.
Vocational training courses must be geared towards services of capital goods, tools, equipment, and machinery both foreign brands and locally manufactured. All gears must be shifted from consumerism to capital goods manufacturing. EDUCATION AND TRAINING POLICY CAN FOSTER INNOVATION AND CREATIVITY IN THE CAPITAL GOODS SECTOR IF GIVEN IMPORTANCE AND INCENTIVES.