Today's, World Trade Organization (WTO) is very
common for us; everywhere in Pakistan the debates are in full swing with
supportive and non-supportive arguments. The clouds of fears,
misconceptions and misunderstanding about WTO are felt. In our
discussion we will try to find out what is it related challenges and
WORLD TRADE ORGANIZATION:
The WTO established in 1995 and it is
only international organization dealing with the global rules of trade
between nations. Its main function is to ensure that trade flows as
smoothly, predictably and freely as possible. Almost the 90% of world is
its member, the decision-making are truly by consensus. General Council
and numbers of other committees try to analyze the various aspect of
trade among the nations working under it.
BENEFITS OF WTO: The
main objective of WTO is to facilitate the producers of goods and
services, exporters and importers to conduct their business in friendly
environment. This organization also desires to eliminate
discriminations, trade barriers and unfair activities. Everyone has
scarce resources to meet his unlimited desires. Everyone wants to deal
with necessities and enjoys luxuries within his available resources.
This is not only beneficial for producer of goods and services but also
for consumer. Consumer can enjoy more choice, broader range of quality
products to choose from and competitive environment may lead to low
WTO provides opportunity to Pakistanis producers and
exporters to export their goods and services to other countries. At the
national level exports can increase governmental revenues which adds to
national income and translates into better standards of living to its
people. As a whole the economy grows, economic growth means more jobs.
European Union calculates that creation of the single market means it
will provide 300,000 to 900,000 more jobs. The ten major benefits of the
WTO trading system are listed as under:
o The system helps to keep the peace.
o The system allows disputes to be handled constructively.
o A system based on rules rather than power makes life easier for all.
o Freer trade cuts the cost of living.
o It gives consumers more choice, and a broader range of products to
o Trade raises incomes.
o Trade stimulates economic growth, and that can be good news for
o The basic principles make the system economically more efficient, and
they cut costs.
o The system shields governments from narrow interests.
o The system encourages good governance.
MISUNDERSTANDINGS OF WTO:
The few misunderstanding about the
WTO are spreading:-
o The WTO serves only the interest of multinational
o WTO is a stacked court.
o It dictates governments' policies that lead to undermining national
o It destroys jobs, widens the gap between rich and poor.
o The WTO is only concerned about commercial interests. This takes
priority over development.
o In the WTO, commercial interests take priority over environmental
o WTO is killing people. The WTO dictates governments on issues such as
food safety, and human health and safety. Again commercial interests
o Weaker countries have no choice; they are forced to join the WTO.
o Small countries are powerless in the WTO.
o The WTO is undemocratic.
CURRENT AND FUTURE CHALLENGES:
Although the issues of higher power
rates and taxes are very important, yet we put aside these issues for a
while. There is another major element, which highly influences on the
price that is quality. The future market competitive advantage will
depend on price and quality advantage as compared to the current quota
regime. Pakistani manufacturers have for long time under quota regime
produced goods and services of substandard quality for its people. The
real challenge today is to ensure that produces/manufactures,
industrialists and managers do not lose sight of the basic principles on
which quality management and performance excellence are based. The
domestic and international competition has made organizations around the
world realize that their survival depends on high quality. Many
countries such as Korea, India and Pakistan are mounting national
efforts to increase quality awareness, including conferences, seminars,
radio shows, school essay contests, and pamphlet distribution. In the
case of Pakistan, it has established Pakistan Institute of Quality
Control (PIQC) in 1991. PIQC has provided training to around 15000
persons and practical facilitation/consulting services to more than 200
firms within and outside Pakistan. PIQC is also conducting postgraduate
level professional diploma/certificate programs in collaboration with
the NED Engineering University Karachi and the National University of
Sciences and Technology (NUST); to make awareness in the industry and
preparing future managers. Spain and Brazil are encouraging the
publication of quality books in their native language to make them more
accessible. These trends will only increase the level of competition in
WHAT IS QUALITY?
Competitive Advantage means a firm's
ability to achieve market superiority. The powerful tool, which enables
to compete with challenges, is quality. Quality is a confusing concept,
because people view quality in relation to different criteria based on
their individual thinking. Neither consultants nor business
professionals agree on a universal definition of quality. A study that
asked managers of 86 firms in the eastern United States to define
quality produced several dozen different responses, including the
Perfection, Consistency, Eliminating Waste, Speed of delivery,
Compliance with polices and procedure, Providing a good, usable product,
Doing it right the first time, Delighting or pleasing customers and
Total customer service and satisfactory.
Quality can be judgmental which is "both
absolute and universally recognizable, a mark of uncompromising
standards and high achievement" in products and services.
Product-based quality would be a function of a
specific, measurable variable and that differences in quality reflect
differences in quantity of some product attribute, such as in the number
of paper sheets in a ream or in the number of common pins in a box. That
is higher levels or amounts of precut characteristics are equivalent to
higher quality. As a result, quality is often mistakenly assumed to be
related to price; the higher price, the higher quality.
For users quality is determined by what a user wants.
Individuals have different wants and needs and hence, different quality
standards. For example motorbike and motorcar both are fit for use, but
they serve different needs and different purpose of customers.
Quality is also based on value; that is the
relationship of usefulness or satisfaction to price. From this
perspective, a quality product is one that is as useful as competing
products and is sold at a lower price, or one that offers greater
usefulness or satisfaction at a comparable price. Thus, one might
purchase a generic product, rather than a brand name one, if it performs
as well as the brand-name product but is cheaper.
Manufacturing based criteria for quality says that
quality is defined as the desirable outcome of engineering and
manufacturing practice, or conformance to specifications. Whenever an
engineer designs a product, he may emphasize the five basics elements
(i.e. product, process, customer, standard and quality) as indicated by
Mr. Kamran Mosa, one of the quality experts in Pakistan.
The manufacturer must translate customer requirement
into detailed product and process specifications. Making this
translation is the role of research and development, product design and
engineering. Product specifications might address such attributes as
size, form, finish, taste, dimensions tolerances, materials, operational
characteristics and safety features. Process specifications indicate the
types of equipments, tools and facilities to be used in production.
Product designers must balance performance and cost to meet marketing
From customer point of view quality is "the
totality of features and characteristics of a product or service that
bears on its ability to satisfy given needs." By 1980s many
companies had begun using a simpler, yet powerful, customer-driven
definition of quality, "Quality is meeting or exceeding customer
What or who is customer most people think of a
customer as the ultimate purchaser of a product or service. Clearly,
meeting the expectations of consumers is the ultimate goal of any
business. But before a product reaches consumers, it may flow through a
chain of many firms or departments, each of which adds some value to the
Dr. W. Edward Deming was Ph.D. in
Physics and was trained as a statistician, during World War II he taught
quality control courses but he realized that the teaching only would not
serve the basic quality needs. After World War II Deming was invited to
Japan, the Japanese had heard about his theories and their usefulness to
US companies during the war. Deming preached beyond the statistics and
emphasized on importance of top management leadership, customer/supplier
partnerships, and continuous improvement in product development and
manufacturing processes. Japanese managers embraced these ideas and
become quality leaders. Deming's influence on Japanese industry was so
great that the Union of Japanese Scientists and Engineers (JUSE)
established the Deming Application Prize in 1951 to recognize companies
that show a high level of achievement in quality practices. Deming also
received Japan's highest honor, the Royal Order of the Sacred Treasure,
from the Emperor. The former chairman of NEC Electronics once said,
"There is not a day I don't think about what Dr. Deming meant to
Philip Crosby another quality expert viewed that
improved conformance in production or service delivery leads to lower
costs through savings in rework, scrap, resolution of errors, and
warranty expenses. Philip Crosby popularized this viewpoint in his book
Quality Is Free.
Quality is not only free, it is an
honest-to-everything profit maker Every penny you don't spend on doing
things wrong, over, or instead of, becomes half a penny right on the
bottom line. In these days of "who knows what is going to happen to
our business tomorrow", there aren't many ways left to make a
profit improvement. If you concentrate on making quality certain, you
can probably increase your profit by an amount equal to 5% to 10% of
your sales. That is a lot of money for free.
Quality of Jannah: The most important is that Allah
Subhanahu Wa Taala (SWT) also set up standards of aamal for true momin
and Allah will reward Jannah to momin for his good deeds and mentioned
the quality and standards of Jannah for example when Momin will enter
into Jannah, it will be announced:
o You will remain in health forever and disease will
o You will remain alive forever and death will never come.
o You will remain in bounties that will never be finished.
o Qualities of people of Jannah:
* In Jannah, height of Momin will be equal to the
height of Hazrat Adam Alaihissalam (60 arms or 90 feet), beauty will be
like that of Hazrat Yousaf Alaihissalam, age like Hazrat Eisa
Alaihissalam (30-33), sweet of voice like Hazrat Haoud Alaihissalam,
tolerance like Hazrat Yaqoob Alaihissalam, patience like Hazrat Ayub
Alaihissalam and habits will be like that of Hazrat Muhammad (SAWS).
In the light of thorough discussion, we may derive
quality as solution for Pakistan's survival and growth. The government
of Pakistan can provide numbers of facilities to its producers of goods
and services for example government can reduce power rates for
manufacturer, can minimize taxes, can create quality awareness to
industry but the real player of this game are the producers to compete
with the global market who should ensure the implementation of quality.
In our industry the cost of poor quality element (the
products which could not produce according to specification at the first
time, these products needs rework, resolution of error etc. rate of
rejection is 5% to 20% cost 2 millions to 200 millions per year) is very
heavy that's why the production cost goes up and up. Accounting system
is not designed to calculate the cost of poor quality. Unfortunately,
our industry is not ready to understand this problem; they always blame
government in terms of power rate or taxes etc. There are numbers of
companies who got ISO 9000 certificate but they are using this
certification as marketing tool.
In October 1887, William Cooper Procter, grandson of
the founder of Procter & Gamble told his employees, "The first
job we have is to turn out quality merchandise that consumers will buy
and keep on buying. If we provide it efficiently and economically, we
will earn a profit, in which you will share".
When Ford executives visited Japan in 1982 to study
Japanese management practices. As the story goes, one Japanese executive
referred repeatedly to "the book", which the Ford people
learned was a Japanese translation of "My Life and Work",
written by Henry Ford and Samuel Crowther in 1926 (New York: Garden City
Publishing Co.). "The book" had become Japan's industrial
bible, and Ford Motor Company had strayed from its principles over the
years. The Ford executives had to go to a used bookstore to find a copy
when they returned to the United States.
In fact, US was the enemy of Japan but Japanese
captured its evolutional philosophy of Dr. Deming, treated Ford's book
as its bible and won technological war. I invite Pakistani producer of
goods and services not to view WTO to whom it belongs, the need of the
time is how you are equipped. Here I will not hesitate to repeat the
title of documentary telecasted by NBC of United States in 1980,
"If Japan can........Why can't we?"