| Abstract | Greater attention had previously been geared towards the development of capital-intensive, large-scale industries. In recent years however, equal emphasis has been given to the small and medium scale industry group. This strategy emerges largely from the experience that large-scale industries have failed to generate adequate spread effects. neither in terms of geographical coverage nor the population size directly benefitting from them.
This study aims to suggest measures for small-scale industry development for Hambantota District, Sri Lanka, which could possibly be implemented through NORAD assistance. To achieve this, it presents the experiences of four Asian countries in their efforts towards industrialization with emphasis on the promotion and development of small-scale industries. Through this review, we hope to identify the reasons, causes. and requirements for the success or failure of the policies and programs.
The country experiences show that as a first step to a comprehensive, integrated, and coordinated SSI development scheme, there must be a careful selection and evaluation of industries of group of industries for priority development. Its implications are obvious. Firstly, with the magnitude of industries, one is not really sure that the assisted enterprises are really those that deserve the assistance most. Secondly, in order to achieve maximum returns from the scarce development funds within an accelerated period, the foci of assistances must be on those enterprises which would derive maximum benefit and generate greater impact on the economy. And finally, this kind of perspective enables us to establish institutions and effectively design program packages, specifically tailored to their needs. |