Dedicated division created
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| Backbone Of Economy: The new department will also help develop the cultural industry |
Small And Cottage Industries 4 March, 2010 – The cabinet has approved the creation of a separate department of small and cottage industries under the ministry of economic affairs to promote micro, small and medium enterprises.
The creation of the department has already been incorporated in the 10th Plan and the budget has also been allocated for the financial year of 2010-2011.
The draft economic development policy also gives some importance to small and cottage industries, with them not needing a license to start operations for non-prohibited activities. Small and cottage industry is currently under the department of industry, some of whose staff will form the new department.
The department will promote the establishment of cottage and small industries across the country and also aim to bring about regional equity. The department’s first task may be to develop a policy that will go into specific measures to support cottage industries. It will also have to develop the institutional and legal structures needed for small industries.
The department will also have the task of developing the cultural industry, which will include textiles, handicrafts and traditional medicine, all linked to tourism. The department will also do a study around the country and come up with resources specific to each area of Bhutan, so that small industries can take advantage of them.
The BCCI after touring the dzongkhags in 2009 had said that currently most small businesses comprised shops with everybody copying the same trend and hence making ventures unprofitable. In its assessment report BCCI recommended that small businesses should make use of regionally available resources like maize in the east to be used for processing into corn flakes.
However observers also say that BCCI in the past years failed to adequately represent the business interests of small businesses across the country that hold 27,000 business licenses.
Experts say that the government till date has also largely ignored the development of small and cottage industries that have largely grown so far on their own and that the new department should facilitate services and not create more red tape.
Experiences from many developing and developed countries show that small and cottage businesses are the backbone of the economy, employing the highest number of people and ensuring equitable distribution of wealth.
Source: kuenselonline