The Republic of Logisticsland

by Jacob JosephNovember 1st, 2007 | Editorial, Issue 2 November 2007

Three suggestions for governments

In the first issue of LOG.Middle East, my editorial touched upon the three trends that will shape the future of the logistics industry in our region. I was told by one of our first readers that one of these trends, deregulation, was a landmine issue.

“Can you image a government giving up authority?” he said. And before I could think and respond, he added, “That’s what governments are for – regulate, control and tax!”

So, in between the multiple deadlines for this issue of the magazine, our website launch and the FIATA World Congress dailies, I managed to steal some time to day dream – “What would I do if I were in government? What if I were President of the Republic of Logisticsland?”

Other than the first obvious step of visa-on-arrival for all Indians, I narrowed my ideas down to three.

PROMOTE FDI Sure, most governments talk about promoting foreign direct investment, but how many really mean it? Far more important than attractive advertising aimed at luring foreign money are the policy and regulatory changes that actually draw it in. These policies should include a liberal economic environment, full foreign ownership and adherence to global quality standards. History, after all, has taught us that liberalisation and the removal of market entry barriers lead to substantial economic growth, particularly in the logistics industry.
OPTIMISATION Red tape kills business. Areas of government services such as licensing, regulatory oversight, competitive regulation and customs services need to partner with industry. Particular care should be taken to foster entrepreneurs, as they are usually bureaucracy’s first victims.
PROMOTE LOGISTICS CHAMPIONS Every country needs national heroes, why should the Republic of Logisticsland be any different? Very often, smaller sized local enterprises do not own the means to establish sophisticated logistics processes and service offerings. Larger industry players, on the other hand, focus predominately on their core business, often neglecting the innovation potential of logistics processes. Governments can use the savings made by optimisation to educate, nurture and support the growth aspirations of smaller local industry players. This generates competition and forces the industry to be more efficient and innovative.

Now all I need to do is get elected.