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5 years ago

OPINION

Promoting standards to be competitive

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Valuing standards is yet to be a strong point in the country. Although a growing number of consumers are now more conscious of standards, they get disappointed by the indifferent attitude of the regulatory authority. Product manufacturers, suppliers and service providers are largely compromising on standards by taking advantage of this indifference.

Standard is a mandatory or settled level of quality attainment of a product or service. It is also a benchmark used as a measure, norm or model in comparative assessment of products or services. Because it is a very comprehensive and complex matter, different stakeholders require some detailed understanding of it. Product standard is the most used standard which deals with the characteristics of goods or services and indicates quality, safety and fitness aspects of a product and at times of a service. There are also two other standards: procedural standard and management system.

Standard gives consumers a certain level of satisfaction for uses of a product or service. For food item, it shows the extent of safety and hygiene on human health.  For cement, it denotes the strength of the construction ingredient. For hotel, it indicates the level of service quality.  Consumers are even ready to pay higher amount for better quality as reflected in standard.

Standard has several aspects to be effective. One is standard developing or standard setting. For a certain product, any country can develop a standard through a scientific process. It is, generally applicable in the domestic market for both locally produced and imported good. The same standard may not be acceptable in another country. For export-oriented products, producers and exporters have to comply with the standards set in the destination countries. Even the exporting country may adopt a similar standard for the domestic market. It is known as standard taking. Standard taker approach is less complex in a sense that a country doesn't need to invest more on developing its own standard.

Be it standard developing or standard taking, it is the private firms or companies which play a critical role in this regard. The role of the government is actually limited especially in developed countries. Even in developing countries like India or China, the function of regulatory authority is to oversee the implementation of standards. In many cases, standards set or taken by the government body are outcome of the private initiative.

Bangladesh is mostly standard taker than standard setter. The main problem in this connection is maintenance of standards in the internal market. Locally manufactured goods competing with imported ones have to maintain better standards. But those facing less competition care little about standards. Moreover, by investing less in standardisation, these domestic products become cheaper for low-income consumers.

In fact, cost of maintaining standard is a big factor for a large number of manufactures and service providers. Micro, small and medium enterprises (MSMEs) find it quite challenging. Here comes the role of the government which needs to provide financial and technical supports to MSMEs for maintaining standards.

Compromising on standards has a long-term socio-economic impact. It will enhance the risk of hazardous goods and negatively affect human health and the environment. It will allow import of low quality of products. It will also reduce the competitiveness of local products.

Standards are steadily becoming high-tech and sophisticated across the world. No matter whether these turn as non-tariff barriers to trade in some extent, the wave of competitive standards is now the reality. Bangladesh is not in a position to keep itself isolated.

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