Small and Medium Industries in Asian Developing Countries

In many Asian developing countries, industrialization has not succeeded in achieving the intended objectives of absorbing surplus labor, alleviating poverty and bringing about a more regional balanced growth. The large-scale import substitution approach widely adopted in most countries often led to the use of highly capital-intensive techniques, generated few employment opportunities and aggravated the balance-of-payments disequilibrium with a heavy dependence on imports. In view of these circumstances, the development of small and medium-scale industries is being considered as a more appropriate alternative to promote industrialization…