Tuesday 5 August 2014

China: Finding New Resources For Cheap, Quality Labor

China is finding new places in the world to the resources of cheap labor, quality and one of the countries that is found in Ethiopia. A factory owner said that Ethiopia reminded China 30 years ago, and that Ethiopia is ripe for change. However, poor infrastructure, inefficient local government and lower productivity is weighing on the minds of the factory owner, who expressed frustration with the fact that production levels at its factory in Ethiopia is not in the expected levels Chinese workers produce.



Transport and logistics cost as much as four times those of China, due to Ethiopia from a developing country. You take two hours for trucks that supply oil and goods to get 18 miles to the factory, due to bad roads. Cattle often roam near the road and even into the bumper to bumper traffic.

There is potential in Ethiopia. 80 percent of Ethiopia's workforce is in agriculture. With the second largest population in Africa, there is no shortage of workers here. China, however, is seeing its workforce to dry. Africa may become the new China, with global investors from countries like Tanzania, Rwanda and Senegal looking. This could be of great help to Africa; you can easily fill some of the 80 million jobs projected to export from China. Justin Lin, former World Bank chief economist, says China manufacturers are losing competitiveness. Interior regions of China have exploited workers dry, causing China to lose its appeal.

China, however, is to find new resources for cheap labor but quality. The Chinese government has decided to provide more professional migrant workers from inland training, increasing their income and creating a workforce of high quality China is key to maintain and improve its position as a major exporter of goods. The State Council of China is also implementing a plan to improve services to migrant workers and improve their professional skills.

The Chinese government is studying ways to improve the marketability of students who do not finish high school, offering students the opportunity to receive an education in a vocational school. This will provide a higher quality of labor to China, and improve the chances that these students are better paid job with better working conditions. China's plan is that all migrant workers receive training by 2020, enabling them to acquire the skills necessary to advance socioeconomically.

Lack of skills in the workforce has been noted by the Chinese human resources executives, who have a growing number of clients seeking experienced workers. This leaves companies with the opportunity to partner with these vocational schools for the best students working in their factories. Another aspect that companies are looking for is building more factories in most inner cities, put workers in closer proximity to their villages. This is giving employees time to spend with their families, and to send their children to school without having to miss the daily interaction with them. China's plan to find new, cheap and high quality resources of labor marks a change in strategy towards economic growth and development, and shows a more compassionate side to view defamed the world is the way it treat their workers.