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J SPECIAL PUBLICATION 543

U.S. DEPARTMENT OF COMMERCE / National Bureau of Standards
NATIONAL BUREAU OF STANDARDS

The National Bureau of Standards' was established by an act of Congress March 3, 1901. The

Bureau's overall goal is to strengthen and advance the Nation's science and technology and

facilitate their effective application for public benefit. To this end, the Bureau conducts

research and provides: (1) a basis for the Nation's physical measurement system, (2) scientific and technological services for industry and government, (3) a technical basis for equity in

trade, and (4) technical services to promote public safety. The Bureau's technical work is performed by the National Measurement Laboratory, the National Engineering Laboratory,

and the Institute for Computer Sciences and Technology.

THE NATIONAL MEASUREMENT LABORATORY provides the national system of

physical and chemical and materials measurement; coordinates the system with measurement

systems of other nations and furnishes essential services leading to accurate and uniform

physical and chemical measurement throughout the Nation's scientific community, industry,

and commerce; conducts materials research leading to improved methods of measurement,

standards, and data on the properties of materials needed by industry, commerce, educational

institutions, and Government; provides advisory and research services to other Government

Agencies; develops, produces, and distributes Standard Reference Materials; and provides

calibration services. The Laboratory consists of the following centers:

Absolute Physical Quantities2 — Radiation Research — Thermodynamics and

Molecular Science — Analytical Chemistry — Materials Science.

THE NATIONAL ENGINEERING LABORATORY provides technology and technical

services to users in the public and private sectors to address national needs and to solve

national problems in the public interest; conducts research in engineering and applied science

in support of objectives in these efforts; builds and maintains competence in the necessary

disciplines required to carry out this research and technical service; develops engineering data

and measurement capabilities; provides engineering measurement traceability services;

develops test methods and proposes engineering standards and code changes; develops and

proposes new engineering practices; and develops and improves mechanisms to transfer

results of its research to the utlimate user. The Laboratory consists of the following centers:

Applied Mathematics — Electronics and Electrical Engineering2 — Mechanical

Engineering and Process Technology2 — Building Technology — Fire Research —

Consumer Product Technology — Field Methods.

THE INSTITUTE FOR COMPUTER SCIENCES AND TECHNOLOGY conducts

research and provides scientific and technical services to aid Federal Agencies in the selection,

acquisition, application, and use of computer technology to improve effectiveness and

economy in Government operations in accordance with Public Law 89-306 (40 U.S.C. 759),

relevant Executive Orders, and other directives; carries out this mission by managing the

Federal Information Processing Standards Program, developing Federal ADP standards

guidelines, and managing Federal participation in ADP voluntary standardization activities; provides scientific and technological advisory services and assistance to Federal Agencies; and

provides the technical foundation for computer-related policies of the Federal Government.

The Institute consists of the following divisions:

Systems and Software — Computer Systems Engineering — Information Technology.

Headquarters and Laboratories at Gaithersburg, Maryland, unless otherwise noted; mailing address Washington, D.C. 20234.

: Some divisions within the center are located at Boulder, Colorado, 80303.

The National Bureau of Standards was reorganized, effective April 9, 1978.
National Bat-earn ef r?amJaK:

MAY * 1?: 3

The Technological Knowledge Base for

Industrializing Countries

Proceedings of the NBS/AID UNCSTD Seminar

Held at the National Bureau of Standards

Gaithersburg, Maryland

October 16-17, 1978

Edited by

Raymond C. Sangster

Office of International Relations

National Bureau of Standards

Washington, D.C. 20234

Organized by the National Bureau of Standards

with the cooperation of the

Office of Science and Technology,

Department of Commerce;

U.S. Coordinator for the UN Conference on Science and Technology for Development; and the Agency for International Development

4** ° F %

U.S. DEPARTMENT OF COMMERCE, Juanita M. Kreps, Secretary

Jordan J. Baruch, Assistant Secretary for Science and Technology

NATIONAL BUREAU OF STANDARDS, Ernest Ambler, Director

Issued April 1979
Library of Congress Catalog Card Number: 79-600058

National Bureau of Standards Special Publication 543

Nat. Bur. Stand. (U.S.), Spec. Publ.543 239 pages (Apr. 1979)

CODEN: XNBSAV

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1979

For sale by the Superintendent of Documents, U.S. Government Printing Office,

Washington, D.C. 20402

Stock No. 003-003-02057-5 Price $4.50
FOREWORD

Every country in the process of industrialization finds that various types of

technological knowledge are essential to the efficient establishment and operation

of industrial plants. Among these are the knowledge required to: (1) measure

process characteristics and product performance; (2) ensure that standards for

health, safety, and performance are met; (3) control manufacturing processes to ensure that product quality is adequate; and (4) enable a wise selection of

technology for industrial application to be made. The ability to obtain and

use such knowledge is of importance to every individual who is concerned with the

application of science and technology for economic development.

National services in standardization, measurement technoloay, and product quality

control have come to be recognized as essential elements of the technological

infrastructure needed for economic and industrial development. In the United

States, the National Bureau of Standards is an important component of that infrastructure, working in a complex and ever-evolving relationship with the private

sector and with other agencies of the Federal government. Early in the year

1971, our institution began an experiment in cooperation with the U.S. Agency for

International Development to explore ways in which we might use our own capabilities to help strengthen the infrastructure of the less-developed nations of the

world.

In the intervening period, several different techniques have been employed for

this purpose. We have organized workshops such as the one associated with this

Seminar; we have conducted surveys of the needs and capabilities of selected

countries; we have provided written standards of ANSI, ASTM, and other organizations; and we have supplied Standard Reference Materials needed by laboratories

in some of the participating countries.

The impetus for this Seminar was a desire to contribute to the U.S. preparations

for the United Nations Conference on Science and Technology for Development (UNCSTD)

which will take place in Vienna in August 1979. This Seminar has been organized

to explore the needs for knowledge of the type described above, knowledge which

is a central part of The Technological Knowledge Base for Industrializing Countries,

and the procedures for acquiring and applying it. These Proceedings are part of

the background material for preparation of U.S. positions in the Conference.

In this Seminar we are pleased to have the cosponsorshi p of the Office of Science

and Technology of the U.S. Department of Commerce, of the Office of the U.S. Coordinator for the UN Conference on Science and Technology for Development in the

U.S. Department of State, and of the Office of Science and Technology of the

U.S. Agency for International Development. Representatives from all of the sponsoring organizations took an active part in the Seminar, and contributed substantially to its success. They were joined by a total of 97 registrants from many

sectors of American society and U.S. Government Agencies, and from 25 nations,

22 of these being in the less-industrialized category.

The record of the discussions that follows will be helpful to the National Bureau

of Standards as we pursue our joint program with the Agency for International

Development. Also, I trust, it will be helpful both to those preparing the U.S.

positions for the UN Conference and to the officials in this and other countries as we strive to apply the methodology of measurement, standardization, and

quality control to the betterment of the global society in which we all live.

Ernest Ambler

Director
ABSTRACT

The National Bureau of Standards held a two-day seminar to explore needs for

the technological knowledge base for industrializing countries and procedures for

acquiring and applying it, in the areas of measurement capabilities and services

required by technological industry, national and international standards that must

be satisfied by industrializing nations, knowledge required for industrial quality

control, knowledge required to enable a country to acquire commercial industrial

technology, and managerial responsibilities and technical knowledge. The Proceedings are background material for preparation of U.S. positions at the UN Conference

on Science and Technology for Development in Vienna, August 1979. Cosponsors included the Office of Science and Technology, Department of Commerce; U.S. Coordinator for the UN Conference, Department of State; and the Agency for International

Development. The 97 registrants came from Argentina, Barbados, Brazil, Egypt,

Guyana, India, Indonesia, Jordan, Kenya, Korea, Lesotho, Mexico, Pakistan, Panama,

Philippines, Saudi Arabia, Singapore, South Africa, Sudan, Switzerland, Taiwan,

Tanzania, Tunisia, Turkey, and many public and private organizations in the U.S.

Key words used to summarize the conclusions were: local realities; industrialization; import, adapt, and innovate; complexity; technology assessment; indigenous

capabilities; metrology, standardization, and quality control; survey projects;

instrumentation; international standardization; existing plant; access to industrial technology; management; organizational climate; the human resource; the UN.

All are important and need attention/support.

Key Words: Africa; Asia; developing countries; industrialization; Latin America;

management; measurement; metrology; quality control; standards; technology transfer; UN Conference on Science and Technology for Development (UNCSTD).

iv
PREFACE

Scheduling of the NBS/AID UNCSTD Seminar on The Technological Knowledge Base for Industrializing Countries on October 16-17, 1978, was congruent with the 1978 NBS/AID Workshop on Standardization and Measurement Services, to allow participants in that Workshop to also

participate in this Seminar. The program (see Appendix I) was structured in eight technical

sessions plus an evening dinner meeting. The technical sessions typically encompassed two

principal papers plus a number of "short contributions". The principal speakers included

five from the United States and seven from abroad, six of whom travelled to the U.S. expressly to participate in this Seminar. Most of the "short contributions" were provided by the

participants in the NBS/AID Workshop. Appendix II contains the complete list of registrants.

This seminar was not an intergovernmental conference. All of the speakers, except for those

officially connected with the U.S. preparations for the UN Conference on Science and Technology for Development, were speaking as individuals, or perhaps as representatives of their

organizations; with possible rare exceptions, they were not speaking officially for their

governments or their countries. As a result, the U.S. was privileged to receive as input

for its planning for the UN Conference the personal opinions of a wide range of exceedingly

knowledgeable individuals.

The printed record in these Proceedings was derived from a number of sources. Each principal

speaker provided an advance copy of his prepared paper. The Workshop attendees submitted,

for Workshop purposes, papers describing the situations in their countries in the broad field

of standardization and metrology; some also provided manuscripts prepared specifically for

their presentations at the Seminar. A taped record was made of the entire Seminar. The

editor used his judgment in transcribing the tapes and in combining the material from the

different sources into final manuscripts. Editorial judgment was also used in selecting

from the material in the Workshop papers the content that would be useful in these Seminar

Proceedings. Papers 4.4 and 7.1 were prepared for use at this Seminar and Workshop; they are being included here even though they were not presented during the Seminar due to the

unfortunate inability of their authors to be present.

The organization of the Proceedings deviates from that of the Seminar Program. Section 4

in the Proceedings is the result of Session V in the Program, Section 5 presents the dinner

speech and discussion by Ambassador Wilkowski, and Section 6 includes the results of both

Sessions IV and VI. The original order of presentation of the "short contributions" has

substantially been ignored; these manuscripts are presented herein in that proximity to the

manuscripts of the principal speakers which will make these Proceedings most useful. Due

attention was paid to maintaining the intelligibility of the discussion periods that dealt

with more than one paper.

As will be seen by reading these Proceedings, the opinions expressed by the authors usually

exhibit a remarkable convergence. On the other hand, there are some differences of opinion,

also. It is obvious that some recommendations may have been put forth or conclusions drawn

in these papers that are at variance with the normal conclusions and recommendations that

would be advanced by the National Bureau of Standards or the other sponsoring agencies.

Therefore, the conclusions and recommendations of individual authors are not necessarily

supported by the U.S. Government or any of the sponsoring agencies. On the other hand, we

are all indebted to these authors for presenting the realities that they see, for that

provides us an opportunity to reexamine our own positions and perhaps to modify them to be more responsive to the situations in the industrializing countries.

In every case, a substantial effort has been made to give each contributor an opportunity to

review the final manuscript of his contribution and to make those changes desired. Time and

distance precluded complete effectiveness in this endeavor. Thus, the successes of these

manuscripts are those of the authors, the failures those of the editor.

As editor and coordinator of this Seminar, I wish to acknowledge the inspiration and guidance

received from Dr. Edward L. Brady, NBS Associate Director for International Affairs,

and Mr. H. Steffen Peiser, Chief of the NBS Office of International Relations. Dr. Brady and

Mr. Peiser were responsible for the conception and design of this seminar, and provided essential guidance in the selection of the principal speakers. ^ ' r \

Raymond C. Sangster

v Seminar Coordinator and Editor
CONTENTS

Page

Foreword iii

Abstract iv

Preface v

SUMMARY 1 PART I - CONCLUSIONS AND RECOMMENDATIONS 2 PART II - HIGHLIGHT EXCERPTS 8

SECTION 1 - KEYNOTE SESSION - Chairman: Dr. Ernest Ambler, Director, NBS 21

Paper 1.1 - Welcome and Introduction - Dr. E. Ambler 21 Paper 1.2 - Objectives of the Seminar - Dr. J. J. Baruch, Assistant Secretary for S&T 22

Paper 1.3 - Expanding Horizons: Technological Knowledge for Industrial Takeoff

- Dr. H. I. Fusfeld, New York University 24

Discussion 28

SECTION 2 - MEASUREMENT CAPABILITIES AND SERVICES REQUIRED BY TECHNOLOGICAL INDUSTRY

- Chairman: H. Herman, Maryland 33

Paper 2.1 - Korean Measurement Capabilities: Past and Present - Dr. J. W. Choi, Korea 34

Discussion 39

Paper 2.2 - On the National Standards System in Korea - D. H. Kim, Korea 41

Discussion , 44

Paper 2.3 - Experience of a Major U.S. Firm in a Newly Industrializing Country

- R. Coria, Mexico 46

Discussion 50

Paper 2.4 - Electronics Metrology in Argentina - H. F. Mazza, Argentina 53

Paper 2.5 - Programs of IPT - J. C. Waeny, Brazil 55

Paper 2.6 - Standardization and Measurement Services in Indonesia-M. E.E. Gandhi , Indonesia 58

Paper 2.7 - Present Status of Electronic Measurement Standards and Calibration Services

in India - Dr. K. Chandra, India 62

Discussion 64

SECTION 3 - NATIONAL AND INTERNATIONAL STANDARDS THAT MUST BE SATISFIED BY

INDUSTRIALIZING NATIONS - Chairman: Dr. K. Y. Al-Khalaf, Saudi Arabia . 65

Paper 3.1 - Standardization in the Developing Nations - A. Fadlalla, ASMO, Cairo ... 65

Paper 3.2 - The International Standards Picture - R. B. Belford, Ohio 73

Discussion 76

Paper 3.3 - Towards Standardization in Guyana - L. Lawrence, Guyana 78

Discussion 86

Paper 3.4 - Standardization in Panama - M. F. de Chan, Panama 87

Paper 3.5 - Standardization as seen in Tanzania - T. Rajaraman, Tanzania 89

Paper 3.6 - Views on Standardization - J. E. Owino-Okwero, Kenya 94

Paper 3.7 - Progress of Standardization in the Sudan - A. G. Suliman, Sudan 99

Paper 3.8 - Standardization in Tunisia - R. Bouhalila, Tunisia 101

Paper 3.9 - Standardization in Saudi Arabia - Dr. K. Y. Al-Khalaf, Saudi Arabia . . . 106

Paper 3.10 - Standardization in Jordan - R. B. Halteh, Jordan 108

Discussion 110

Paper 3.11 - Comments on Standardization - Dr. R. W. Middleton, ISO, Geneva 112

SECTION 4 - KNOWLEDGE REQUIRED FOR INDUSTRIAL QUALITY CONTROL

- Chairman: C. B. Butts, Indiana 113

Paper 4.1 - Establishing a Quality Control System in an Industrializing Country

- Prof. K. S. Stephens, Georgia 113

Discussion 132

Paper 4.2 - High Technology Quality Control in a Newly Industrializing Society

- Dr. Lee Kum Tatt, Singapore 134

Discussion 141

vi
Paper 4.3 - On Providing the Technological Knowledge Base for Industrializing Barbados

- Dr. J. L. Tudor, Barbados 144

Paper 4.4 - Certification and Quality Control Problems in Ghana - A. 0. Ntiforo, Ghana 148

SECTION 5 - SEMINAR DINNER PRESENTATION AND DISCUSSION 151

Paper 5.1 - United States Preparations for the United Nations Conference on Science

and Technology for Development - Ambassador Jean Wilkowski,

U.S. Coordinator for UNCSTD, Washington, D.C 151

Discussion 1 55

SECTION 6 - WORKSHOPS - MANAGERIAL RESPONSIBILITIES AND TECHNICAL KNOWLEDGE

- Chairmen: Dr. R. W. Middleton, ISO, Geneva; W. Armstrong, New York . 161

Paper 6.1 - A Survey of Development Efforts in Turkey - Prof. T. G. Somer, Turkey . . 163

Discussion 172

Paper 6.2 - Experience of an Industrializing Nation in Deployment of Technical

Knowledge to Meet National Needs - Dr. M. M. Qurashi , Pakistan .... 173

Discussion 190

Paper 6.3 - Management Principles in Industrialization - Dr. J. A. Slater, Washington 192

SECTION 7 - KNOWLEDGE REQUIRED TO ENABLE A COUNTRY TO ACQUIRE COMMERCIAL INDUSTRIAL

TECHNOLOGY - Chairman: A. R. Baron, United Nations, New York 195

Paper 7.1 - Remarks Prepared for the NBS/AID UNCSTD Seminar: The Technological

Knowledge Base for Industrializing Countries - I. S. Djermakoye,

United Nations, New York 196

Paper 7.2 - Knowledge Required to Enable a Country to Acquire Commercial Industrial

Technology -- Experience of a Country with an Intermediate Economy

- Dr. Alberto P. de Castro, Brazil 199

Paper 7.3 - The Role of Technology Negotiators - R. J. Radway, New York 209

Discussion 214

Paper 7.4 - A Public Interest Point of View of Science and Technology for Development

- J. Gudaitis, Washington 216

Discussion 217

SECTION 8 - SYNTHESIS AND PROJECTION - GUIDANCE FOR THE U.S. IN THE UNITED NATIONS

CONFERENCE ON SCIENCE AND TECHNOLOGY FOR DEVELOPMENT, AND BEYOND

- Chairman - Dr. E. L. Brady, NBS 219

Panelists: Dr. H. I. Forman, Deputy Assistant Secretary of Commerce for Product

Standards, Washington 219

Dr. Lee Kum Tatt, Chairman, Singapore Institute of Standards and

Industrial Research, Singapore. 221

Dr. A. Small, Office of Science and Technology, U.S. Department

of Commerce, Washington 222

Mr. J. A. Stromayer, Deputy U.S. Coordinator for UNCSTD, Washington ... 223

Adjournment 226

APPENDIX I. PROGRAM - NBS/AID UNCSTD SEMINAR " 227

APPENDIX II. LIST OF REGISTRANTS 230

vi i

NBS/AID UNCSTD SEMINAR

THE TECHNOLOGICAL KNOWLEDGE BASE FOR INDUSTRIALIZING COUNTRIES

October 16-17, 1978

National Bureau of Standards

Washington DC 20234 USA

SUMMARY

This summary section consists of two

parts, Part I - Conclusions and Recommendations, and Part II - Highlight Excerpts.

The purpose of the Seminar was to provide

background material for preparation of the

U.S. positions at the United Nations Conference on Science and Technology for Development (UNCSTD) which will take place in Vienna

in August 1979. In her address to the Seminar, Ambassador Wilkowski, U.S. Coordinator

for preparations for the UN Conference, specifically requested "helpful guidance and

recommendations on how we can better prepare

for this Conference in a way which will be

directly relevant to the needs of the developing countries."

Many of the participants in this Seminar

did indeed make specific recommendations

relevant to the U.S. preparations for the

Conference. Further, the convergences of

opinion regarding the facts of the situation

in the industrializing countries, their

needs, and the desirable approaches toward

meeting those needs, that can be seen from

studying these Seminar Proceedings, also

suggest conclusions and recommendations that

may well be useful in the U.S. preparations.

On the other hand, it should be noted that

the Seminar was not structured in such a manner -- indeed, it was all too short for

such purposes -- as to allow any substantial

explicit consensus to be reached among the

participants regarding conclusions and rec- ommendations. Therefore, Part I of this

Summary represents only the implicit consensus of the Seminar participants, deduced by

examination of the papers and discussions in

the printed record which follows. Responsibility for the accuracy and completeness of

the statement of this implicit consensus

rests with the editor of these Proceedings.

The conclusions and recommendations of

Part I are not necessarily either new or specifically within the intended focus of

the Seminar. Many have long been well established as a fundamental part of the U.S.

approach to the UN Conference. They are included here for three reasons: (1) Reiteration can strengthen the U.S. commitment to

these positions, especially when it is the

result of a broad and overwhelming consensus,

which often is the case for this Seminar.

(2) Presenting the total range of conclusions

and recommendations serves to put those specifically dealing with measurements, standardization, quality control, technology transfer, and technical management into the total

context of the discussions and of the interests and concerns of the group of people convened together for this Seminar. As a re- sult, those conclusions and recommendations

falling narrowly within the scope of this

Seminar become more comprehensible. (3) To a significant extent, this set of conclusions

and recommendations deals comprehensively with

the total subject of science and technology

for industrial development, and is therefore

useful to have explicitly on the record.

The intent in Part II - Highlight Excerpts

was originally to develop an executive summary

of the Seminar by piecing together excerpts

from the papers and discussions. The format

has been retained, but at its present length,

this section is too long to be dignified with

the title "executive summary." It was created

as suggested above, by excerpting key statements from each of the papers and from some of the discussion segments. The excerpts were chosen to highlight the contributions to

the overall conclusions of the Seminar that were made by the different papers or discussions. A minimum of rewording or paraphrasing

was done. These excerpts are not reliable

abstracts of the total scope of the individual

papers. A draft of this section was circulated to principal participants in November.

The responses were uniformly favorable, and

the revisions requested were few.

Part II was used as the direct source of

the conclusions listed in Part I. Some of

the recommendations in Part I also came ex- plicitly from Part II. Most, however, were

phrased by the editor. Many more conclusions

could have been listed. The ones actually

listed are those that are reasonably comprehensive in scope and for which significant

action recommendations can be stated.
SUMMARY - PART I - CONCLUSIONS AND RECOMMENDATIONS

CONCLUSION 1. LOCAL REALITIES.

The local situation must be fully taken

into account in considering science and technology for development. Any approach which

is oblivious to local realities is unacceptable.

The responsibility for observing what the

industrialized countries are doing, picking

what they think they need, and adapting it

to fit the organization and economy of an individual country, is clearly the responsibility of the developing country itself.

The industrialized nations cannot set their

values on these decisions.

Technology is not an end in itself, and

it is not the only means toward the specific

goals of a country. We must be willing to

consider the needs for a country to want to

emphasize cultural diversity and other such

thi ngs.

We are not really transferring technology.

We are building a system in which our choices

are in part to take from outside and in part

to build from inside, to contribute to

growth. It is only going to work if it is

tied in with and contributes to the growth

of local resources, if it supports local

objectives, and if it enables us to build up

the technical and innovative and managerial

skills of local personnel.

Foreign managed ventures should understand, respect, and support the traditional

habits and traditional social standards of

the local people.

RECOMMENDATION:

The focus on local realities, responsibilities, capabilities, and goals should be a keystone in the U.S. approach to UNCSTD.

CONCLUSION 2. INDUSTRIALIZATION.

The growing industrialization of the

world is probably one of our strongest forces

for lasting peace, involving as it does the

gradual elimination of need and meeting the

requirements of individual societies.

The Industrial Revolution is now entering

a most promising and complex phase, as it

becomes global in scope. Most of the industrializing countries are newly independent

and are intent on shaping strategies of industrialization suitable to their own goals,

needs, and values. These national orientations are to be matched with a world situation in which international mobility of technology and resources is creating new forms

of interdependences among nations.

Technology, in the sense of the practical

application of invention and discovery, is as old as mankind itself. What is new is

the science-based technology, the outcome of

industrial research, a phenomenon of the

present century.

For the first time in history, we have at our means the resources and the ability to

being about a better life for all peoples.

If we uplift the world, everyone stands

to benefit.

RECOMMENDATION:

The U.S. position at UNCSTD should include

a major emphasis on science and technology

for industrialization, and industrialization

should not be relegated to a secondary status

at the Conference.

CONCLUSION 3. IMPORT, ADAPT, AND INNOVATE.

To obtain scientific and technological

development in an industrializing country,

it is necessary to import advanced science

and technology vigorously, to build up domestic capabilities to fully absorb, digest, and

adapt imported technology to domestic conditions, and to develop self-sustaining capabilities for local innovation in science and

technology.

RECOMMENDATION:

The U.S. should consistently operate from

the basis of this three-pronged approach.

Each element is essential.

L
CONCLUSION 4. COMPLEXITY. CONCLUSION 6. INDIGENOUS CAPABILITIES.

The "standard problem" for developing

countries is the complex composed ot problems

of education, or promotion of awareness or consciousness, of facilities, and of the system for development.

RECOMMENDATION

:

The U.S. should consistently push for rec- ognition of the critical nature of all aspects of this "standard problem" and for balanced approaches that will attack all aspects

in accord with the needs in any given situation.

CONCLUSION 5. TECHNOLOGY ASSESSMENT.

When the developing nations have decided

what they wish to become and the kinds of

choices they want to make, they can use some assistance, to be defined by them, in developing human resources and institutions so that they are better able to make these

choices in a much more self-reliant way than

they can now do.

If we stop thinking of industrialization

as a developmental state rather than as a developmental process, we will see that the

main way we can help is by teaching that

process

.

Specific industrial objectives should be

based realistically on internal capabilities,

world markets and resources, and the time re- quired to develop a technical base compatible

with these objectives. Indigenous capabilities are required to adapt and then to emphasize those areas of technology most relevant

to national objectives.

Developing countries need national centers

for technology transfer, and appropriate

training; mechanisms for assessing the applicability of a particular technology within

a country and for comparing it with all the

other technologies available.

RECOMMENDATION:

The U.S. and the UN should move to develop

mechanisms that will enhance and support the

ability of the industrializing countries to

assess, select, adopt, adapt, and innovate

in the technological areas that they determine to be of value to them. In particular,

the U.S. and the UN should move to organize

themselves to be able to provide pertinent

educational and training services more effectively and more efficiently than they now do.

While the West needs scientific research

upon which to build its high technology, most

of the technology the developing world needs

already exists, and the immediate need is to

1 earn to sel ect, adapt, and use it. More em- phasis is needed on engineers, relative to

scientists

.

The overwhelming need and demand of the

industrializing world is for help in developing their own indigeneous capabilities in

science and technology and in the whole range

of activities from creation of technology to

development and marketing of products to

managerial expertise generally.

One of the major tasks facing the developing countries is to create, nurture, and more

often than not, rehabilitate, their internal

capacity to invent and innovate.

The main obstacle to the complete nationalization of imported technology is connected

with the lack of capability in the product

design and engineering function. This capability can only be developed through an

R, D and E approach, that is, through an interaction of engineering groups with the

R and D capabil ity.

You have to organize and maintain the

local institutions whose support may be of

the utmost importance in the practical use

of technology.

Developing countries need encouragement

of local R, D and E, and reversal of the

brain drain to put local talent to work on

local problems.

Foreign and multinational enterprises in

the industrializing countries often appear

uninterested in supporting development of

the technological institutions in the host

countries, or in participating in their programs .

A long-term plan of cooperation could make

fluorishing local research institutions

profit from the experience, capability, and

ingenuity of American universities and re- search institutions, in the development of a sound R, D and E basis for the industrializing country.

RECOMMENDATION:

The U.S. position at UNCSTD should support

all effective moves to enable the industrializing countries to enhance their indigenous

capabilities to assess, select, adopt, adapt,
and innovate in the technological areas most

relevant to their national objectives. The

U.S. should seek ways in which it can encourage its industrial and educational enterprises to support and participate in the work

of indigenous technological organizations in

developing countries. The U.S. should support in UNCSTD realistic moves by the developing countries to encourage or require such

support and participation by foreign enterprises operating in their territories.

CONCLUSION 7. METROLOGY, STANDARDIZATION,

AND QUALITY CONTROL.

The knowledge base associated with metrology, standardization, and quality control

must be present as part of the technological

infrastructure needed to support industrial

development. Indigenous capabilities in

these fields are indispensable.

Participation in the world export markets

and in the world technological community, as through a national airline, demands a domestic measurement system that allows domestic

organizations to demonstrably meet international technical requirements.

The economic development of a country must

have available machinery for ensuring high

standards of quality and accuracy for both

its indigenous products and imported equipment and commodities.

Standardization is becoming a prerequisite

for improving domestic quality, and, hence,

for becoming competitive in the world

markets

.

Expansion of export volume promotes

industrial development.

National standards are especially needed

for consumer products which can affect health

and safety or for which there is monopoly

ownership. Standards for exports should be

set by mutual agreement between the parties

concerned.

Technical standardization represents a sum and a summary of the best achievements

of science and technology. Standards institutes open the doors to improved knowledge

of progress and experience throughout the

worl d.

It may be difficult to apply foreign or international standards without modifying

them in the light of existing facilities and

actual needs. Specific national or regional

standards may be needed.

The formal introduction of standards and

standardization in a society will be faced

with some difficulties, in particular those

generated by resistance to change.

Quality control and its related disciplines

have played a significant role in bringing

about an improved standard of living for

the industrialized countries and those rapidly

reaching that status. These same concepts

and disciplines will likewise be of great

importance to the developing nations.

RECOMMENDATION:

The U.S. position at UNCSTD should encour- age international recognition of the essential

roles of standardization, metrology, and quality control, and the development of UNCSTD

actions and recommendations that will support

(a) efforts within the industrializing nations

to achieve local recognition and support for

standardization, metrology, and quality control systems within their countries;

(b) the efforts of existing international and

regional organizations in these fields; and

(c) enhanced international and bilateral aid

for the development of adequate capabilities

in these fields in the industrializing

countries, in all dimensions, e.g., financial,

technical advice, and international and

regional coordination.

CONCLUSION 8. SURVEY PROJECTS.

Standardization and measurement survey

projects conducted with the support of existing institutions in the industrialized countries are very valuable in the creation of

an infrastructure for industry in the developing countries.

RECOMMENDATION:

The U.S. should continue its successful

pattern of such survey projects, and it should

press for UN recognition of the role of existing national institutions in such survey projects and for an enhanced program of the UN

to employ the capabilities of such institutions .

CONCLUSION 9. INSTRUMENTATION.

The available instrumentation from the

industrialized countries tends to be too

elaborate and too expensive, and not adapted

for the climatic conditions of the developing countries.
RECOMMENDATION:

The U.S. should support efforts to develop

instrumentation institutes and industries

that are responsive to the specific needs of

the developing countries.

needs of developing countries and to increase

their ability to respond to them broadly.

The U.S. should support international

approaches to finding more effective means

for enabling newly industrializing countries

to meet their needs for standards.

CONCLUSION 10. INTERNATIONAL STANDARDIZATION.

International standards support elimination of obstacles to the better utilization

of knowledge and capabilities in science and

technology for the development of all countries, particularly for their use in developing countries. They operate as a neutral

vehicle for the transfer of technology, and are available at minimum cost.

It is possible to take over directly and

integrally a large number of international

standards as domestic standards, no matter

what the level of development of the country.

Any country hoping for even modest success

in the international standards negotiations

must have continuity of representation by

qualified technical experts who are wellbriefed, nimble thinkers, willing to work

hard. Participants from the less industrialized countries can be very valuable neutral

third parties, helping the adversaries reach

optimum compromises.

The membership fee in the international

standardization organizations is outside the

financial ability of some very small developing nations; proportioning membership fees

to GNP would help.

The industrialized countries can help the

developing nations by applying certification

and quality-mark systems to all exported

products.

The possibility of reinforcing the prevailing methodology by integrating the administrative and research approaches with the consensus method of preparing standards needs

to be explored for use in developing nations

just embarking on standardization activities.

RECOMMENDATION:

The U.S. should press for extensive recognition of the importance of the international

standardization system in the UNCSTD context.

The U.S. should support efforts to enhance

the capabilities of international standardization organizations to respond to the needs

of specific developing countries and regions.

It should support efforts to increase the

consciousness of these organizations of the

CONCLUSION 11. EXISTING PLANT.

Improving maintenance and repair in developing countries would be one of the most important and effective ways of stimulating

industrial development at low cost. Standardization of equipment is one means of simplifying maintenance work. The possibility of

achieving international standardization of

equipment intended for developing countries

is remote, and the solution of this problem

lies within each developing country.

Developing countries need better management and improved technological developments

in existing industrial plants.

RECOMMENDATION:

The U.S. should promote consciousness of

the seriousness of these problems and efforts

to support their resolution, by

(a) action at the international level oriented

toward the sources of equipment;

(b) action to support individual developing

countries to control their maintenance and

repair problems; and

(c) programs specifically aimed at enhancing

the efficiency, effectiveness, and productivity of existing plants and other capital

investments in the industrializing nations.

CONCLUSION 12. ACCESS TO INDUSTRIAL TECHNOLOGY.

The industrializing countries should make

deliberate efforts to develop close ties with

industrial sectors in the developed countries,

in order to create a reservoir for potential

cooperation for training, for exchange of

personnel, and for establishment of indigenous

technical institutes. Private companies can

be a powerful aid to industrializing countries

in building a technological base.

The tremendous reservoir in the United

States of know-how in commercial industrial

technology is not really being made as available as it might be to the developing world.

Mechanisms for utilizing the private sector

must be looked at.

When problems arise in any particular

technological area, there ought to be a way

to access people in both the industrialized

5
countries and other industrializing nations,

to determine if existing solutions are available.

It takes a lot of money and effort to develop a new process, product, or method; and

an organization is not to be expected to hand

this over to others without a profit.

Foreign investment promotes industrial

development.

In negotiations for technology transfer

agreements, adoption by both parties of a long-term mentality will help provide a climate of stability and mutual benefit. The

transnational enterprise must view the transaction as a partnership, whereby it becomes

a citizen of the host country, undertaking

a commitment to its social and economic development, in return for a satisfactory profit. The host government should exert dedicated efforts to maintain a climate of stability so that the transnational enterprise

does not believe that it will place in

jeopardy its human and material resources.

Strong leadership and political stability

are conducive to industrial development.

External technological dependency may

lead to projects contracted abroad that involve importation of components and equipment

that could have been made locally, to licensing and technical agreements which may lead

to capture of local companies by foreign concerns, to unhealthy perpetuation of technical agreements, and to a lack of technologies

for exploitation of non-conventional local

natural resources.

Appropriate technology should promote

national and local self-reliance. Some criteria for appropriateness include: high

employment potential; low required investment; utilization of domestic material re- sources; strong linkage to local industry

to satisfy actual needs; higher productivity

than traditional technology in the same

field; easy maintenance; compatibility with

prevailing sociological conditions in the

locality. Technology is needed for production for and by the people, to promote both

economic growth and social justice.

Developing countries need promotion of

small-and medium-sized businesses.

RECOMMENDATION:

The U.S. should seek to go the UNCSTD

prepared

(a) to make specific offers of moves on the

part of the U.S. government that would en- courage the private sector in the U.S. to be

more accessible technologically to the industrializing countries,

(b) to make specific recommendations to the

industrializing countries on moves that they

can or must take to attract cooperation from

private U.S. firms, and

(c) to propose that the UN should move to

establish enhanced networks, both institutional

and informal, that will promote in the fields

of technology the type of person-to-person

and institution-to-institution interactions

that now exist in the fields of science,

internationally.

CONCLUSION 13. MANAGEMENT.

A critical factor is the ability to manage

technical resources. The technical manager

is the single most needed person.

Developing countries have an imperative

need for sound planning and project design,

nationally and on a sectorial level.

Poor management is probably the single

greatest problem in industrial development.

RECOMMENDATION:

The U.S. should support all effective

moves to enhance the competence of the technical managers in the industrializing

countries.

CONCLUSION 14. ORGANIZATIONAL CLIMATE.

The organizational climate in an industrial concern has to be one in which managers

accept the paramount importance of people,

coequal with technology and financial re- sources, as a prime ingredient in organizational accomplishment, and one that focuses

the attention of managers on performance.

RECOMMENDATION:

Programs for managerial development in

the industrializing nations should include

a stress on organizational development, to

promote organizations that demand performance

and that are sensitive to the paramount

importance of people.
CONCLUSION 15. THE HUMAN RESOURCE.

The most important resource is the human

resource, the working personnel. A critical

aspect of this resource is quality consciousness and the ability to detect promptly and

act to remedy any situation that involves a deviation from the pre-set minimum standards

of qual ity.

Technology only resides in human beings,

and we can only transfer this technology

from one human being to another. If there

are too many cultural differences, so that

we cannot even understand each other, then

technology cannot be transferred.

Industrial development is promoted by an abundant, skilled labor force with a high

level of education.

The first and foremost problem is manpower

availability. Foreign ventures and consulting organizations should be required to train

local manpower and to lay the basis for a genuine local takeover of the enterprises.

It is necessary to develop people who can

not only adapt, but also innovate.

The educational level in developing countries needs to be balanced among theory and

practice, science and technology, basic

research and application in engineering.

It is necessary for a developing country

to develop a body of highly motivated technologists, scientists, and technicians,

possessing a belief in their own destiny.

The young generation in a developing

country should be taught to appreciate work,

with their hands or otherwise, without shame

or embarrassment. The desire to work and

the sense of responsibility for development

of their country must be introduced.

The will and dedication of the people and

their hard work are the most important

ingredient for economic development.

RECOMMENDATION:

The U.S. should press for general recognition of the attitudes, capabilities, and

skills that must exist in the people of an industrializing nation if it is to succeed

in industrialization, and it should support

moves in education and consciousness-raising

that will promote these attitudes, capabilities, and skills.

CONCLUSION 16. THE UN.

There needs to be introduced a new international agency to assist the developing

nations in technology transfer, quality control, standardization, metrology, certification, and marketing. The proposed agency

should form a triangle with the International

Monetary Fund and the World Bank, to contribute technical and managerial assistance in

the realization of industrial development

projects

RECOMMENDATION:

The U.S. should support at UNCSTD a thorough re-examination of the adequacy of

existing institutional arrangements in the

light of these and similar new needs.

7
SUMMARY - PART II - HIGHLIGHT EXCERPTS

1.1 Topics covered by this Seminar include

metrology, standardization, quality control,

technology transfer, and technical management. These are elements of the technological infrastructure needed to support industrial development. This knowledge base is an indispensable part of the development

process. Without it, the best laid and

clearest plans for industrialization would

be very badly impeded. (Dr. E. Ambler,

Director, National Bureau of Standards.)

1.2 The growing industrialization of the

world is probably one of the strongest forces

for lasting peace, involving as it does the

gradual elimination of need and meeting of

the requirements of individual societies.

A useful working definition of "technology"

is "that combination of the arts and sciences

whereby industry creates the useful goods

and services for a society." The word "useful" requires that there be a match of technology to the needs of society. We should

recognize that when we talk about industrializing countries, we include the United States

of America, for it, too, is still a developing country. (Dr. J. J. Baruch, Assistant

Secretary of Commerce for Science and Technology, U.S. Department of Commerce.)

1.3 Industrialization of the Western world

took place within roughly the same time period as development of the technology that

was part of that industrialization. The

simultaneous progression of industry and

technology was evolutionary; they proceeded

in a crude balance. Industrialization of the

less developed countries today is taking

place within a world that contains a complete

spectrum of technology, from windmills to

satellites. This situation differs from

Western experience in two important respects:

(1) There is a strong element of national

planning.

(2) Any technology selected for emphasis

will almost certainly have been developed and

put to use somewhere else, so that a "technology gap" exists by definition.

Objectives for industrializing countries

incl ude:

(1) Strengthening of existing national

structures in natural resources, manufacturing, and services.

(2) Development of industries to provide

the needs of domestic markets.

(3) Development of industries intended

to create exports.

Specific industrial objectives should be

based realistically on internal capabilities,

world markets and resources, and the time

required to develop a technical base com- patible with these objectives. Indigenous

technical capabilities are required to adapt

and then to emphasize those areas of technology most relevant to national objectives.

The measure of success is the effectiveness

of integration of technology into a workable

economic system. A critical factor is the

ability to manage technical resources. The

most essential person is the technical manager, who can understand and integrate the

contributions of others.

The use of cooperative arrangements with

multinational private companies should be

in addition to, not instead of, the development of domestic technical skills. Complete

"business packages" should be sought. There

should be deliberate efforts to create close

ties with industrial sectors of the developed

countries, in order to create a reservoir of

potential cooperation for training, for ex- changes of personnel, and for establishment

of indigenous technical institutes, Private

companies can be a powerful aid to industrializing countries in building a technological

base. (Dr. H. I. Fusfeld, New York University.^

1.4 Less developed communities within an industrialized country can serve as a paradigm for less developed countries within an industrialized world, but the paradigm is

not an exact one.... When there is a problem

in a developing country, there ought to be a way of accessing people in the United States

or in any one of the other countries represented here. This group has gotten together

because of a common interest in industrialization of a wide range of countries, and forms

the basis of a network for such interactions.

The responsibility for observing what

we are doing, picking what you think you

need, and adapting it to fit the organization

and economy of your individual country, is

clearly the responsibility of the developing

country itself. We cannot set our values on

it. In the past much of our infrastructure

approach of providing institutes and training

of manpower seems to have ignored the fact

that these are 30 year projects compared with

the demands for essentially 2-5 year projects.

In any organization you find two different sets of activities, "goal selection" and

"goal pursuit". Something becoming increasingly obvious is the bringing together of the

politico-technical process to continually

iterate this process of selection—pursuit

selection—pursuit. . . . While there is a tremendous reservoir of technology in the private
sector of the West, the only realistic hope

of getting the cooperation of private com- panies is when there is a business interest

in the company in the country that is asking

for it.... Our latest is not necessarily

their best.... If we stop thinking of industrialization as a developmental state rather

than as a developmental process, we will see that the main way we can help is by teaching

that process.... (Discussion following

papers of Drs. Baruch and Fusfeld.)

2.0 Not only do you need to know where you

are, but also where you are going, and how

to communicate with others. These are the

key points in the use of measurement capabilities and services, because if you don't have

these, you neither know where you are nor do

you have a sound base from which you can decide how far you have come and where you are

going. (H. Herman, Industrial Consultant,

Potomac, Maryland.)

2.1 If scientific and technological development are to be obtained, firstly, advanced

science and technology should be vigorously

imported, secondly, domestic science and

technological capabilities have to be built

up to fully absorb, digest, and adapt imported technology to indigenous conditions, and

to create self-sustaining capabilities for

local science and technology. The main

factors in the remarkable industrial development of Korea are:

(1) Strong leadership and political

stabil ity.

(2) Will and dedication of the people;

hard work.

(3) Abundance of skillful labor force

with a high level of education.

(4) Successful introduction of foreign

investments for industrial development.

(5) Success of export volume expansion,

a 300-fold increase since the beginning of

the economic development plan in 1962.

Since 1972 Korea has been building up its

heavy and chemical industries, and a corresponding new measurement capability has had

to be created. Standardization and measurement survey projects, such as that conducted

by NBS/AID in Korea in 1972, play an immeasurable role in the creation of an infrastructure for industry in the developing countries.

At this time, no systematic nationwide calibration/inspection network exists in Korea.

A fact-finding survey has been conducted to

establish a basic policy for the needed system. It revealed that:

(1) Industry has an insufficient number

of precise and accurate measuring instruments

necessary in the manufacture of products

meeting established standards.

(2) The calibration of measuring instruments is not regularly done, in spite of the

fact that it is necessary to maintain precision and accuracy.

(3) Management, especially top management,

is lacking in understanding of the importance

of metrology to industrial progress.

(4) There is an insufficient distribution

of standard reference materials.

(5) Industry lacks an understanding of

the need for standard reference materials.

To promote an awareness of the importance

of the metrology and standards system and its

full utilization by industry, the Industrial

Advancement Administration launched in 1975

a massive nation-wide quality control campaign, which has proved successful in establishing awareness of the importance of quality control and has induced utilization of

the evolving national measurement and standards system. (Dr. Jong Wan Choi, Industrial

Advancement Administration, Korea.)

2.2 With the utilization of Korean national

standards traceable to internationally rec- ognized standards, the newly established

metrology system in Korea is expected to

make a great contribution to a high percentage of accurate measurements, decreased

reliance by Korean laboratories and firms

on foreign facilities for the supply of

standards and calibration services, and an increasing number of measurement standards

developed or modified to satisfy Korean needs.

(Dong Ho Kim, National Industrial Research

Institute, Korea.)

2.3 The Mexican General Electric Company

was established in 1896 as a sales outlet for

GE products imported from the United States.

Today, it manufactures a wide range of lamps, consumer products, and industrial goods. It

has approximately 5000 employees and annual

sales of $1 04 mill ion

Most of the components of products are made in Mexico, but certain critical items are imported from the United States. The

manufacturing equipment, basic designs,

engineering, and systems, come from the highly

specialized parent company departments in the

United States. Very critical measurements

have to be made of some of the components,

since they affect both the quality of the

products and the yield in manufacture. A

network of exchange of samples and reference

materials and methods between the General

Electric laboratories in Mexico and the U.S.

is used to ensure the adequacy of these critical measurements. The quality level achieved

allows products to be exported to Germany,

9
France, and, above all, the United States.

Following a set of routine procedures is not

enough to allow achievement of this level of

quality. The following of routines sometimes

tends to degenerate through the years, be- cause it is sometimes much easier to manufacture with components slightly different

in dimensions or by slackening some of the

specifications, but always within the current

standards of acceptance.

The most important factor to accomplish a truly competitive quality is to instill in

the working personnel quality consciousness

and awareness of the need for accurate measurement of properties and the need to detect

promptly any deviation that could occur from

the pre-set minimum standards of quality for

any of the parameters. An essential ingredient in the training and development of personnel is the climate of the organization,

the cluster of concepts, attitudes, and patterns of behavior that make up the organizational environment within which people develop their potential as managers or high caliber technicians. This climate has to be,

first, one in which managers accept the paramount importance of people, co-equal with

technology and financial resources, as a prime ingredient in organizational accomplishment. Secondly, it has to focus the

attention of managers on performance, if

they are going to maximize the contributions

of their subordinates and their development.

One of the first steps taken to establish

this kind of climate to develop an effective

training plan was to adopt the Quality Control Circle concept developed in the 50'

s

in Japan. One of the most refreshing experiences in this kind of program is the eagerness to learn that is present in practically

all of the Mexican workers.

The three principal factors key to the success of a technological industry in Mexico

are

(1) the technological support from a very

qualified company in one of the older industrial nations,

(2) the absolute conviction that the most

important resource in any given enterprise

is the Human Resource, and

(3) an adequate approach to the training

and development of that Human Resource, with

the proper motivation.

(R. Coria, General Electric de Mexico, Mexico

City.)

2.4 After the Second World War, the development of heavy industry in Argentina created

a need for interchangeability of parts, that

contributed to the establishment in 1957 of

the Instituto Nacional de Tecnologia Indus10

trial (INTI) to provide the needed metrological reference base. To get experience,

INTI sought help from organizations like PTB

(West Germany), NBS (USA), NPL (Great Britain), and LICE (France). Metrological ad- vances at INTI are transferred to industry

through calibration and other services. For

instance, INTI calibrates electronic instruments used in the maintenance of air navigation equipments, because the U.S. FAA demands

that all air navigation enterprises that fly over the USA must have their instruments

under metrological control. Similarly, the

Argentine automobile factories are finding

that in many countries to which they export

there are regulations limiting the amount of

radiointerference due to ignition systems;

resolution of this problem demands careful

and difficul t measurements . (H. F. Mazza,

INTI, Argentina.)

2.5 Reliable measurements are not the result

of laws. They come out of hard and conscious

labor. However, a favorable set of laws is

helpful, as it brings our a receptivity for awareness of these problems. Further, reliable measurements do not come out by themselves; a reliable measurement must be used,

and is the outcome of some kind of social

pressure. (Admiral J. C. de Castro Waeny,

IPT, Sao Paulo, Brazil .)

2.6 A central guiding system is currently

being created for the standardization and

measurement services system of Indonesia.

An agreement has been signed between the

private standardization organization YDNI and

the National Institute of Science to expedite

the establishment of a national system of

standardization, and the preparatory committee

for establishment of this system has been set

up. The national Calibration Committee has

been established. A network of calibration

services will be created in the near future,

built around nine specialized calibration

centers. These developments have been based

on a national survey on standardization and

measurements jointly conducted by the National

Institute of Science and the U.S. NBS in 1977.

The "standard problem" for developing

countries is the complex composed of problems

of education, of promotion of awareness or consciousness, of facilities, and of the system for development. In Indonesia a new minister has been installed in the present cabinet, the State Minister for Science and Technology. Very recently, the Agency for Assessment and Application of Technology was established, headed by the Minister himself.

These developments demonstrate the importance

attached by Indonesia to science and technology for national development. (Gandhi,

M.E.E., YDNI, Indonesia.)
2.7 In India electronics is now playing a very vital role in a number of areas, and

the electronics industry is on the point of

take-off. To meet the growing demand for

precision electronic measurements for the

purpose of calibration of instruments as well as quality control, reliability evaluation, and interchangeabi 1 i ty of parts, a national system for electronic measurement

standards, calibration, and testing has

evolved over the years. (Dr. K. Chandra,

NPL, India.)

3.1 Advantages of standardization:

(1) Planning the attainment of a given

objective need not be repeated each time.

(2) The concepts in the minds of the

parties concerned are given definite meanings.

(3) More economic use of human effort,

material, and time; hence lower cost of supply and distribution of goods and services.

(4) Variety of means necessary to cover

a given range of needs is minimized.

(5) Interchangeabi 1 i ty of component

parts, assemblies, and complete products,

making possible long-run, highly repetitive

manufacturing, facilitating repair and re- placement,

(6) Easier training of personnel, by means of instruction sheets, manuals, etc.

(7) Elimination of confusion and conflict,

resulting in more harmonious and effective

working together.

(8) Creation of a rational basis of

understanding in contracts.

(9) Promotion of fair dealing in trade.

The economic development of a country must

have available machinery for ensuring high

standards of quality and accuracy for both

its indigenous products and imported equipment and commodities. It may be difficult

to apply foreign or international standards

without modifying or adapting them in the

light of existing facilities or actual needs;

specific national standards may be needed.

Regional standardization is an intermediate

stage, harmonizing the standards of countries

and fitting them to the circumstances peculiar to the area.

Developing countries lack the experience

they need to make use of technological discoveries. In sectors where competition is

based on taking advantage of the most recent

advances in technology, there is only a small

margin in favor of industrial growth in countries of low economic development. On the

other hand, the wide sectors concerned with

the production of basic goods needed by

society as a whole, particularly foodstuffs,

energy, metals, and nonmetallic raw materials,

offer so many other possibilities for economic development, that, if proper use is

made of them, they will provide the means for our societies to evolve at the rate which is

necessary in order to diminish the present

differences in levels of development.

Technical standardization represents a sum and a summary of the best achievements of

science and technology, which, if associated

with the practical experience of the advanced

countries, will bring about rationalization

of production, leading to better economy of

the production factors and reducing losses,

waste, repetition, safety hazards, and the

whole succeeding series of negative effects

for industry. Standards institutes open the

door to improved knowledge of progress and

experience throughout the world. They act as an arbitor between the conflicting interests

of producers, consumers, and the general public. This is of paramount importance in finding a proper balance after decades of mutual

ignorance have built up all kinds of barriers

and obstacles, making it very difficult to

achieve the mutual collaboration which is

indispensable for countries who wish to move

forward in a single constant direction.

Generally speaking, developing countries

acquire technology at the company level, that

is, through transfer from one company to

another. It is very important for the

licensor to take an active part in planning

an industrial project in a developing country, and in carrying those plans out. The

government's role in this sphere will be to

define the specific objectives and to determine the type of technology and equipment to

be imported and on what conditions, including

how much adaptation will be required in order

to bring industrial development plans to success.

Advantages of in-plant standards include:

(1) More attention devoted to fundamentals

of design, dealing with just a few good designs . (2) Product design may be simplified.

The relations between product and process

requirements may be studied more closely.

Long runs of standardized items can be

achieved, rather than many short runs of

"specials".

(3) Inventories may be simplfied, and

inventory costs cut.

(4) Work planning, production control,

and other management procedures can be

simplified, and their frequency of repetition

reduced.

(5) Improved service may be offered to

customers

.

11
One of the prerequisites for efficient use

of equipment is systematic maintenance and

repair. Improving maintenance and repair in

developing countries would be one of the most

important and effective ways of stimulating

industrial development at low cost. Standardiztion of equipment is one means of simplifying maintenance work. The possibility

of achieving international standardization

of equipment intended for developing countries is remote, and the solution of this

problem lies within each developing country.

(A. Fadlalla, Arab Organization for Standardization and Metrology, Cairo, Egypt.)

3.2 Product standards are documents which

define sizes, shapes, dimensions, tolerances,

and all of the other features which affect

interchangeabil ity of manufactured parts.

They are by far the most difficult standards

to develop internationally, because one or more countries must accept physical change

in the products currently being produced and

used domestically. Change is expensive and

disruptive.

Standardization is a business function.

It must achieve an adequate pay-off, or don't

do it! Any country hoping for even modest

success in international standards negotiations must have continuity of representation

by qualified technical experts who are wellbr'iefed, nimble thinkers, willing to work

hard. During the initial exchanges, each

spokesman presents articulate and compelling

arguments why the national practice he ex- pounds is technically superior and why the

international standard should be written in

its image. There is then serious and objective analysis of the technical merits of

competing proposals. Almost always, the

best answer is a combination of the better

features from many proposals. Participants

from the less industrial izaed countries,

often having no strongly held national

positions to put forth, can be neutral third

parties helping the adversaries to reach

optimum compromises. Ultimately, if an international standard is going to gain

acceptance and be used, its contents must

reflect the best technical practice of any

of the participating countries. This puts

a severe burden on the less industrialized

countries, because it requires them to meet

the best, immediately, without the maturing

processes that the more advanced countries

have enjoyed.

Even after an international standard has

been adopted, it may not be adequate in itself to serve as the national standard in some countries. It is often necessary to

add specifications of additional parameters

that have been traditionally used in a given

country. The important fact is that these

additional requirements not affect the

functional interchangeabil ity of the manufactured parts. (R. B. Belford, Industrial

Fasteners Institute, USA.)

3.3 Industrializing nations must produce

both for domestic consumption and for export.

Compulsory national standards should be es- tablished for specific consumer products

which can affect health or safety or for

which there is monopoly ownership. Voluntary

standards should be set for competitive products. Standards for exports should be determined by mutual agreement between the

parties concerned. The quantum of membership in ISO is outside the financial ability

of some small developing nations; proportioning the membership fee to GNP would help.

Another problem is the lack of hard currency

to purchase hardware and software and to develop much needed skilled personnel.

The formal introduction of standards and

standardization in a society will be faced

with some difficulties, in particular those

generated by resistance to change. It is

therefore necessary from the inception to

have the stage well set to cope with this,

firstly, by clearly defining the functions,

powers, and structure of the organization

charged with the responsibility for effecting

the system of standards and standardization,

and secondly, by acquiring the necessary

legal tools for facilitating specific functional activities. Recommendations with re- spect to standardization in Guyana include:

(1) That standardization be accepted as

a precondition for both technological and

economic planning.

(2) That standardization be considered

for rationalization of imports of capital

goods.

(3) That standardization be a prerequisite for simplification of spare parts stocking and inventory management.

(4) That one-man (woman) businesses should

be discouraged , and cooperatives be urged.

T5) That innovative steps be taken in

educational policy specifically to generate

substantially larger numbers of students of

science and technology.

(6) That retired scientists and technologists who are able and willing to function be

given the opportunity to be re-employed.

(7) That a distinction be made between

Rural National Standards and Urban National

Standards, in view of the need to relate

rural production to rural technology, and

to maintain community development in step

with a progressive cultural outlook.

12
(8) That the Commonwealth Science Council

should explore the possibility of convening

a Metrication cum Metrology Conference in the

Caribbean area, in order that the Caribbean

may benefit from proposals for collaborative

undertakings and share in certain calibration

facilities and high-capi tal -cost testing

equipment. (Mrs. Lorna Lawrence, Guyana

National Bureau of Standards.)

3.4 The Comision Panamena de Normas Industrials y Tecnicas is responsible for establishment of technical standards for the Republic of Panama, and has extended its objectives to include quality control and

metrication. (Ing. Maricela Ferrer de Chan,

Panama.)

3.5 Standardization is one of the basic com- ponents which any infrastructure must include

in order to develop a sound economy. It is

the foundation on which to build up the store

of knowledge which a country needs in order

to be able to assimilate imported technology

and utilize its own potential; it is becoming

a prerequisite for improving domestic quality, and, hence, for becoming competitive on

the world market. Standards broadly reflect

the state of the art. By making use of

existing technical data, standards find common solutions to recurring problems and

consequently avoid waste in both materials

and manpower. They lead to compatibility of

industrial practices in different countries.

International standards support elimination

of obstacles to the better utilization of

knowledge and capabilities in science and

technology for the development of all countries, particularly for their use in developing countries. They operate as a neutral

vehicle for the transfer of technology. They

are available to developing countries at

minimal cost. The national standards body

plays a decisive role in the systematic development of the national economy and should

be included in the planning work at the earliest possible point in time.

Although the need for standardization has

been felt for a long time, a real effort to

introduce standardization and quality control

in the national economy was made only about

three years ago, when the government set up

the Tanzania Bureau of Standards (TBS). A

principal aim of TBS is stimulus to industrial development. The major problem is

that the needs are vast and pressing for the

young TBS to meet. The establishment of

priorities and the task of planning ahead

become real difficulties. The possibility

of reinforcing the prevailing methodology

by integrating the administrative and re- search approach with the consensus method

13

of preparing standards needs to be explored;

the balance can always be maintained at the

point the situation demands, the criterion

being the need to produce usable standards

in time.

Existing measurement, testing, and quality

control facilities in Tanzania are very elementary and quite inadequate to support even

a modest industrial development. Expansion

of testing facilities and manpower is needed,

to meet the aspirations of the country for

self-reliance and a reasonable view of quality in products and services provided.

(T. Rajaraman, Tanzania Bureau of Standards.)

3.6 Although it is not easy to realize immediately the activities of a Standards Organization in the economy of most developing

countries, there are prospects of the Organization being very important in the day-today management of the economy, in order to

create more order in the goods/money-worthness and quality. Training of the staff of

the Kenya Bureau of Standards has been very

much emphasized during the three years since

its establishment, in the national standards

organizations in Japan, Britain, Sweden,

Germany, India, the USA, and Australia.

Locally, the Bureau every year organizes a Seminar/Workshop on Company Standardization,

the lecturers being drawn from the Bureau

itself. The event has been very popular

among the industrialists in Kenya, although

the upper hand of the foreign element in the

investments has been uncooperative in most

cases.

In newly industrializing countries, the

system of standardization should be considered the most effective means of management

of the national economy and should assume a compulsory status. The first and foremost

problem is manpower availability. Consultancy services are a potential source of lots

of knowledge. Every foreign venture should

be required to provide local manpower that

is trained to understand, to run, and to

operate that sort of venture and that process.

Otherwise, there is no way you can industrialize the developing countries. Investment

agreements should be geared towards a genuine

takeover by indigenous personnel. Further,

the traditional habits and social standards

of the people should be respected and maintained. The United Nations should make it

compulsory that all members have a standards

organization. This is the only way we can create a unified system or unified order,

all over the country.
Our future is based mainly on the assistance we can get from industrialized countries. I hope that we shall have a more

humane cooperation, that we compromise and

get these things done, for the benefit of

all of us, as a human race. (J. E. OwinoOkwero, Kenya Bureau of Standards.)

3.7 The real work on standardization in the

Sudan has been started recently. In the last

two years the Department of Standardization

and Quality Control has contacted several

regional bodies for help in establishing an

ideal national standards body. The final

work in this respect is being carried out by

the U.S. NBS and AID, the Arab Organization

for Standardization and Metrology, and the

Department. We hope that the recommendations

of this study will be implemented directly.

(A. Suliman, Sudan).

3.8 Our objectives in industrialization were

two-fold, first, that Tunisia's entire industrial production should be increased, second,

that production should be geared toward more

efficient economic and social use. To this

end, standards were developed for processed

products and those set for agricultural and

natural products were improved. A standard

is the means, the tool that you have to have

before all, why you have to do research. It

is a reference resulting from reasoned collective choice, with a view to be used as a working basis for the solution of repetitive

problems. A proposal for establishment of a single, central National Institute of Standardization was sent to the Tunisian Government last month, and we hope for its early

approval. The national development and industrialization programs of Tunisia remain

widely open to foreign technologies, but

must, at the same time, favor and encourage

the national aptitude for invention and innovation. It is easier to say than to do it,

to industrialize a country. So we have to

go step-by-step, but we have to go. We can't

stand still. (A. Bouhalila, Laboratoire

Central , Tunisia.

)

3.9 The impact of standardization on the

Saudi economy is immense. The great demand

for goods in 1974-76 allowed for the importation of very low quality products, and Saudi

Arabia became a dumping ground for factory

rejects and substandard products. It was during that period that the Saudi Arabian

Standards Organization played a great role

in protecting consumers, guiding the businessmen, and helping the economy.

One of the big problems that we are facing

at SASO is that of "image". It is not only

the laymen who don't understand standards,

but many in the government itself. Other

problems include the fact that qualified technical and administrative staff and research

and development laboratories are not readily

available; and standards have to be drafted

by SASO due to the lack of free qualified

experts in the country. The most effective

way by which the industrialized countries can

help is by applying certification and quality- • mark systems to all exported products.

(Dr. K. Y. Al-Khalaf, Saudi Arabian Standards

Organi zation .

)

3.10 The long-term objective is to improve

the national economy by strengthening standardization and quality at the' in-plant and

national levels, which will help to improve

the quality of locally-produced goods, make

the use of local raw materials more efficient

and reduce costs, help to ensure fairness in

trade and commerce, and help in the control

of imports and promotion of exports. Shortterm objectives fall under the headings of

standard specifications, testing, quality

control, legal metrology, information center

activities, training of national personnel,

and participation in regional and international standardization activities.

(R. B. Halteh, Directorate of Standards,

Jordan.

)

3.11 It is absolutely correct to point out

that standardization is a business function.

At the same time, there is, in all the ISO

work, a spirit of compromise and concession,

which means that in fact agreement is reached

and positions are not polarized. As far as the large majority of the ISO standards are concerned -- test methods, terminology,

sampling -- it is possible for these to be

taken over directly and integrally as national

standards. Both the Germans and the British

are following this course, so it is not a matter of the size or level of development

of the country. Today, standardization is

attracting increasing political importance.

It would be a tremendous pity if the political

impetus that is going to be gained from the

United Nations Conference were not to be

spread also into the area of standardization.

(Dr. R. W. Middleton, International Organization for Standardization, Geneva, Switzerland.)

:•

14
4.1 Quality control and its related disciplines have played a significant role in

bringing about an improved standard of living

for the industrialized countries and those

rapidly reaching that status. These same

concepts and disciplines will likewise be of

great importance to the developing nations.

Quality control is now widely used in almost

every type of industry in most countries of

the world. It has proved to be effective

(1) in improving the quality of products,

including life and reliability,

(2) in raising the productivity of manufacturing processes,

(3) in reducing manufacturing and other

costs, and

(4) in timely deliveries and in determining the marketability of products and

services.

However, many developing countries have yet

to promote, utilize, and benefit from quality

control on a national scale. This requires

(1) Strong national leadership and a national plan.

(2) Establishment and support and publicizing of a national standardization effort.

(3) Governmental and commercial compulsion for reasonable levels of quality.

(4) Information exchange media.

(5) An extensive training program.

(6) A program to promote public awareness

of quality, safety, etc.

(7) A national product quality certification program.

The strong temptation to simply observe what

has worked in one country and then apply it,

unaltered, in another, should be resisted.

(Prof. K. S. Stephens, Georgia Institute of

Technology, USA.

)

4.2 The Singapore Government's policy to

accelerate industrialization was based on the

premise that it will be faster and less costly to benefit from the experiences of others.

An aggressive policy of attracting investments, particularly from the multinational

corporations, was pursued. Singapore promoted quality control by the following

mechanisms

(1) The presence of multinational corporations.

(2) The introduction of a national certification scheme.

(3) The formation of a professional

organization of quality control practitioners

and production engineers.

(4) Government support for products cer- tified under the national certification

program.

(5) The policy of pursuing governmental

entrepreneurship where the government invests

in a number of manufacturing operations.

(6) The restructuring of the educational

system towards the scientific and technical,

and later, the provision of industrial training.

(7) The provision of specialized quality

control awareness programs and courses for

industry.

(8) Nation-wide campaigns to promote

quality as a way of life.

In Singapore we have chosen to establish institutions to meet expressed needs, not just

with the hope that needs can be created. In institutionalizing quality control, we have

given priority to establishing an attitude

or philosophy in the minds of the people,

which has become a value, and is becoming a tradition. (Dr. Lee Kum Tatt, Singapore

Institute of Standards and Industrial

Research .

)

4.3 Barbados embarked on a program of industrialization about 10-15 years ago. Improvements in national metrological services are necessary if national quality control goals

are to be met. Our needs fall in three

categories

(1) Training of personnel, at all levels.

(2) Establishment of appropriate laboratory facilities.

(3) The acquisition of appropriate machinery and equipment for testing. This is a major difficulty; the available instrumentation from abroad tends to be too elaborate

and too expensive, and not adapted to our climatic conditions.

When in 1972 the Government of Barbados

decided to commence establishment of the

Barbados National Standards Institution, it was obvious that an integrated approach to

the problems of modernization in industrial

development and standardization had to be

taken, so that the scope of this Institution

encompassed both the establishment of an up-to-date system of legal metrology and the

transition from the Imperial system of meas- urement to the metric system. (Dr. J.L. Tudor,

Barbados National Standards Institution.)

4.4 In the developed countries, the markets

are critical of the quality of goods and

services, while in the developing countries,

such as Ghana, preferences for products and

services are dictated by the price. The

result is a continuous degradation of quality.

The poor person thus gets less and less for

his money, and becomes poorer and poorer.

Quality control methods, where they are in

operation, are often inadequate. The available scientific and technical infrastructure

is also usually insufficient to provide the

necessary technical aid to the factories.

15
Manufacturers do not understand what quality

control is all about. Importation of low

quality raw materials can only result in low

quality products. One will only expect con- siderable changes in these problems when the

economy shows definite improvement.

(A. 0. Ntiforo, Ghana Standards Board.)

5.1 The first item for the agenda for the

UN Conference on Science and Technology for

Development is the choice of technology, the

appropriateness of it, the obstacles to the

choice of technology. The second major

agenda item addresses the institutional

arrangements for the transfer of technology,

and it seeks for new forms of international

cooperation. The third question is how the

existing United Nations system can be better

used to facilitate transfers of science and

technology and to help build up the indigenous capability. Do we have adequate machinery at the United Nations without creating

new institutions there?

You cannot separate science and technology

out of the economic setting. A new view

which is gaining fashion is that growth in

industrialized countries may be strongly

affected by growth in the developing countries. In 1977, 35% of total U.S. exports

and 40% of manufactured exports went to developing countries. The U. S. is approaching

the UN Conference in the belief that it can

find ways of ensuring that developing countries will derive greater benefits from

science and technology, and ways of enabling

developing countries to contribute to the

world's scientific knowledge and technological know-how. One possible mechanism is the

proposed U.S. Foundation for International

Technological Cooperation. (Ambassador

Jean Wilkowski, U.S. Coordinator for UNCSTD.)

6.0 Technology, in essence, cannot be adopted, it has at the least to be adapted, and

ultimately you have to innovate. It is

necessary to develop people who cannot only

adapt but also innovate. It is also necessary

to develop an attitude in the workers and in

the entrepreneurs , from top to bottom, to

identify and move to correct problems when

they see them. We are not really transferring technology. We are building a system

in which our choices are in part to take

from outside and in part to build from inside, to contribute to growth. It is only

going to work if it is tied in with and con- tributes to the growth of local resources,

if it supports local objectives, and if it

enables us to build up the technical and innovative skills of local personnel.

(W. Armstrong, International Management

Development Institute, New York City.)

6.1 The main problems of Turkey in industrial

development have stemmed from an insufficient

number of scientists and technologists, lack

of know-how, insufficient capital for investment, and large deficits in the balance of

payments. In developing countries, the

initial problem has been to build sufficient

industry to supply the nation so that the

volume of exports can be reduced. Only

through persistent, productive, and efficient

research can the differences between the developed and the developing nations be eradicated. The following shortcomings with re- spect to scientific and technological research

efforts are prevalent:

(1) Only a small fraction of 6NP, usually

less than 1%, is allocated to R and D. The

percentage of the population involved is much

too smal 1

.

(2) Sufficient coordination may not exist

between the basic research activities in

universities and research institutes and the

productive sectors.

(3) The productive and managerial staffs

do not understand the importance of research

and its potential problem-solving applications

(4) Research work, when undertaken, is

often poorly supported.

In order to meet the requirements of economic

development and social progress, weight should

be given to research in technology, organization, and control, directed toward lowering

investment and operational costs while increasing output. Purchasing manufacturing

plants on a turn-key basis forces the purchasing nations to follow technological advancement from behind, never being able to

catch up with the advanced countries. Indigenous technological development is es- sential to resolve this situation.

For many years the Turkish Standards Institute has tried to create a metrology laboratory, but has not succeeded. This is creating a serious weakness in the technical facilities available in the country. Correlation

of measurements at national and international

levels is difficult and expensive. Certification in the international markets would

have no value, because the accuracy of the

measurements cannot be guaranteed.

A national quality control system project

was started in 1977, which will greatly con- tribute to the development of Turkey in this

long-neglected field. A preliminary survey

revealed that "the concepts of industrial

quality control are not fully understood by

most industrialists nor by many of the official or semi-official testing organizations.

There are no trained or experienced QC personnel in anything like the numbers which

would be required in the event of a rigorous

16
policy for in-plant QC being pursued by a national QC system.

It takes a lot of money and effort to develop a new process, a new product, or a new method; and an organization is not to be ex- pected to hand this over to others without a profit. If we cannot get this technology as we wish, it's not their fault. It's our

fault, that we have not handled this research

ourselves, or we are not willing to pay a sufficient amount to such firms. The policy

for technology transfer should take into

account the distinction between products for

export and those for domestic consumption.

The former requires technology sufficiently

advanced to allow effective competition

internationally. For the latter, laborintensive technology should be preferred to

enhance employment. Protection of national

interests at the utmost level has to be con- sidered before deciding what areas and what

technologies require or even tolerate foreign

investment. The tendency in most developing

countries is to import sophisticated machinery, computers, and other fancy equipment;

this constitutes a waste and should be prevented. The efficiency of complex equipment

is generally low due to the lack of properly

trained technicians.

Mismanagement and poor cooperation among

various agencies have also acted to prevent a higher rate of development. This is usually

the case in developing countries where available potentials are not efficiently used due

to bureaucracy, poor quality of management,

and lack of cooperation. Government investments in industry and business in the developing countries should be discouraged, simply

because any enterprise so created is generally inefficient, over-staffed, and unprofitable. Unfair practices by unions or management should be prevented in order not to

endanger the country's development.

It is most important to create conditions

in which a continuous development can be

achieved. We have to make sure that the con- ditions we create in the country open the way

for industrial development. The most important contributing factor is the education

level, which needs to be well balanced among

theory and practice, science and technology,

and basic research and application in engineering. The young generation in a developing

country should be taught to appreciate working without shame or embarrassment. The desire to work and the sense of responsibility

for development of their country must be

introduced. Turkey has made great efforts

for development, particularly in the last

25 years. The people, considering industrialization as a national duty and for prestige,

sacrificed a lot for its success.

Industrialized nations should take greater

interest in the development of the industrializing nations. There is needed a new agency

to assist these nations in technology transfer,

quality control, standardization, metrology,

certification, and marketing. The proposed

agency should form a triangle with the International Monetary Fund and the World Bank, to

contribute technical and managerial assistance

in the realization of industrial development

projects. (Prof. T. G. Somer, Middle East

Technical University, Turkey.)

6.2 The Industrial Revolution is now entering a most promising and complex phase as it

becomes global in scope. Most of the industrializing countries are newly independent

and intent on shaping strategies of industrialization suitable to their own goals,

needs, and values. These national orientations are to be matched with a world situation in which the international mobility of

technology and resources is creating new forms of interdependences among nations.

Technology, in the sense of the practical

application of invention and discovery,

is as old as mankind itself. What is new

is the science-based technology, the outcome

of industrial research, a phenomenon of the

present century. Accordingly, there has been

a considerable urge to transfer this technology to the lesser developed countries in the

last 50 years or so.

A development capability index has been

derived empirically. It is approximately

the square root of the product of (gross

national product) times (per capita gross

national product). In other words, both

the gross national product and the number of

people over whom it has to be spread are

important. A technology transfer function

has been devised which is the product of the

development capability coefficients of the

two countries involved.

The symbols of modernity, in the form of

steel mills, chemical plants, automobile

factories, and squadrons of military aircraft, can be purchased on the international

market; but development is a complex social

process, which rests in large part on the

internal innovative capabilities of a society.

It has been repeatedly found during the last

two decades, that in spiteof all the transfer

of technology, the gap between the developed

and the developing countries has consistently

been increasing. Technology transfer alone

cannot bring any developing country up to a level with the donor countries. One of the

17
major tasks facing the developing countries

is to create, nurture, and more often than

not, rehabilitate their internal capacity

to invent and innovate.

Introduction into Pakistan of capitalintensive technologies of the West often has

raised more problems than it can solve. In agriculture, the need for proper adaptation

of imported technologies has been generally

recognized. But in industry and large-scale

construction, this is not true. Appropriate

technology should promote national and local

self-reliance. Some criteria for appropriateness include:

(1) High employment potential.

(2) Low investment required, as compared

to the level of local income.

(3) High potential in utilizing domestic

material resources.

(4) Strong linkage to local industry to

satisfy the actual needs of industrial

cl ients and markets.

(5) Higher productivity than existing

traditional technology in the same field.

(6) Easy maintenance.

(7) Compatibility with prevailing sociological conditions in the locality.

A people-oriented development programme re- quires an emphasis on both economic growth and

social justice. Technology is needed for

production by and for the people. We need

to develop and appreciate the large pool of

technical expertise that is available in our countries; we are consciously drifting away

from those industries in which we have a strong indigenous base. There is a distinct

reluctance on the part of industrialists to

make proper use of the indigenously developed

technological capabilities. They seem to have

an ingrained suspicion of anything home-grown

or home-developed.

For a developing country to emerge from

the state of under-developedness and forge

ahead of others, it is necessary for it to

progressively develop a body of highly motivated technologists, scientists, and technicians, possessing a belief in their own

destiny. While the West needs research on which to build its high technology, most of

the technology the developing world wants

already exists, and the immediate need is to

learn to select, adapt, and use it. More and

more emphasis needs to be placed on the production and utilization of engineers, in con- trast to scientists. What is really wanted

is an optimum mix of intermediate technology

and high technology at any given time, and

this is where the developed nations can help

the developing ones. We need national centers for technology transfer and appropriate

training, mechanisms for assessing the appli18

cability of a particular technology within a country and for comparing it with all the

other technologies that are available; en- couragement of local R, D and E; and reversal

of the brain drain to put local talent onto

projects that have immediate relevance to

their countries. (Dr. M.M. Qurashi, Appropriate

Technology Development Organization, Pakistan.)

6.3 The knowledge and application of sound

management principles is really the basis of

and a firm requirement for industrializing

countries. Technicians and administrators

must be able to plan, organize, direct, staff,

and control the operation. Poor management

is probably the single greatest problem in

industrial development. (Dr. J. A. Slater,

U.S. Department of the Interior.)

7.0 The tremendous reservoir in the United

States of know-how in commercial industrial

technology is not really being made as available as it might be to the developing world.

Mechanisms for utilizing the private sector

must be looked at.

Three aspects need particular attention:

(1) The imperative of sound planning,

national and sectorial, and project design.

(2) Better management and improved technological developments in existing industrial

plants

.

(3) Promotion of small or medium-sized

business. (A. R. Baron, United Nations

Department of Technical Cooperation for

Development, New York City.)

7.1 It does appear evident that much more

can be done by the United States to facilitate

tapping by the Third World of the vast technological know-how of America in fields of

industry. I hope therefore that this Seminar

will lead to concrete recommendations for developing public and private mechanisms to augment the flow of U.S. industrial technological

know-how to the developing countries. We need

to help the Third World introduce and adapt

technologies (industrial and others) which

are people-oriented, which develop selfreliance, and which foster the new international economic order.

The developing countries place their hope

and trust in total cooperation in the struggle

for freedom, dignity, life, and for the knowhow to fight against hunger, illiteracy,

poverty, joblessness, sickness, and death.

"Let us not lose sight of the fact that, for

the first time in history, we have at our means the resources and ability to bring

about a better life for all peoples."

(I. S. Djermakoye, Department of Technical

Cooperation for Development, UN, New York City.)
7.2 The main obstacle to the complete

"nationalization" of the technology involved

in the real cases cited, is connected with

the lack of capability in the product design

and engineering function. This capability

can only be developed through an R, D & E approach, that is, through the interaction

of engineering groups with the R&D capability. The knowledge needed to acquire the

different necessary industrial technologies

has consisted essentially of sound engineering knowledge. But the application of each

industrial technology has always required

some local research, even when this technology was wholly purchased abroad, because of

the necessary knowledge of the most diverse

materials needed to build and operate the

industrial plants. To operate an industrial

plant you also must have available locally a large diversity of skilled personnel, like

mechanics, tool makers, electricians, plumbers,

etc. You also have to consider the organization and maintenance of some local institutions whose support may be of the utmost

importance to the practical use of those technologies. In the case of industrial development in the area of Sao Paulo, an engineering school and an industrial research institute, both stressing the need and the advantages of objective laboratory measurements

and experimentation, have been the key local

institutions. Very few of the foreign and

multinational companies located there have

done anything to help the strengthening of

those institutions.

Since the 60' s there has been a mounting

preoccupation with the growing external technological dependence of the country. Some

of the more objective preoccupations are

related to:

(1) Problems with engineering projects

contracted abroad, which may lead to the

importation of components and equipment that

could have been made in Brazil.

(2) Problems with licensing and technical

agreements, which may contribute to capture

of Brazilian private industries by foreign

companies.

(3) The tendency for unhealthy perpetuation of some techical agreements.

(4) The lack of ready-made technologies

for the exploitation of the non-conventional

natural resources of the country.

Brazil has now a good number of fluorishing research institutions, and a bigger longterm plan of cooperation would make them all

profit from the experience, the capability,

and the ingenuity of the American universities and research institutions, in the development of a sound R, D and E basis for my

country. (Dr. Alberto Pereira de Castro,

IPT, Sao Paulo, Brazil . ) 1

7.2 The negotiation of the agreement for the

technology and its transfer is a threshold,

and the effectiveness with which the principal

actors discharge their responsibilities will

have a substantial impact upon the effectiveness of any particular transfer, and the con- tributions of the technology to the industrialization process. There are obvious conflicts

of interest inherent in the situation before

the negotiations begin. The host country is,

to a degree, dependent upon the supplying

transnational enterprise for the technology

needed. Yet that enterprise is seen as beyond

the control of any government, transcending

the soverign interests and limits of the host

country. The adoption by both parties of a long-term mentality will help to provide a climate of stability and mutual benefit. The

transnational enterprise must view the transaction as a partnership, whereby it becomes

a citizen of the host country, undertaking a commitment to its social and economic development, in return for a satisfactory profit.

The host government should exert dedicated

efforts to maintain a climate of stability

so that the transnational enterprise does not

believe that it will place in jeopardy its

human and material resources. The apparent

inequality in bargaining power between buyer

and seller in this situation arises in part

from inequality in knowledge. Increasing

the indigenous knowledge base, the theme of

this Seminar, is thus a prerequisite for

ultimate equalization of bargaining power.

No technology is appropriate if the infrastructure is not capable of receiving it,

absorbing it, and util tzing it effectively.

(R. J. Radway, Attorney, New York City.)

7.3 Overemphasis on technological growth has

given rise to serious imbalances within the

global perspective and to problems in certain

areas. Three of these problem areas are in

development, where we see unemployment,

urban congestion, and other drawbacks; in

ecology, where we have pressure on and wasteful uses of resources; and in security, where

an unnecessary amount of resources is being

put into military expenditures. Three other

factors add further complications: the increasing population, the recognition of a finite limit to resources, and an awareness

of a growing global inter-relatedness. Technology it not an end in itself, and it is not

the only means toward the specific goals of

a country. We must be willing to consider

the need for a country to want to emphasize

cultural diversity and other such things.

(J. Gudaitis, Center of Concern, Washington.)
8.1 Why is the United States involved in

this great exercise? Because there is benefit to be received by those in the United

States who have technology to transfer. And

because, in doing what we are proposing to

do, or are involved in doing, we are doing

something for humanity. Because if we uplift

the nations of the world, everyone stands to

benefit. (Dr. H. I. Forman, U.S. Department

of Commerce.

)

8.2 It is not the English that you have to

understand. It is the silence that you must

learn to interpret. Technology only resides

in human beings, not in licenses, papers,

and so on. So, we can only transfer this

technology from one human being to another.

And if there are too many cultural differences, so that we cannot even understand

each other, then I don't see how technology

can be transferred. An approach would be,

how can the more developed help the less developed, and so on? The gap between us will

be smaller.

For developing countries to stay alive,

we need something to live on, and something

to live for. (Dr. Lee Kum Tatt, Singapore

Institute of Standards and Industrial

Research.

)

8.3 Technology transfer has its people-topeople elements. Any plan that does not

recognize this and take it into account, can waste a precious opportunity. (Dr. A. Small,

U.S. Department of Commerce.)

8.4 The phrase "technology transfer" has givein

rise to much faulty thinking. It implies

the transfer of a process from a developed

country to a developing country with the ex- pectation that the process will work as well - in the developing country as it does in the

developed country. This simplistic approach

does not begin to suggest the complexity of

the subject, nor does it take into account

the high degree of psychological receptivity

and technical capability required for an effective transfer.

The phrase is also faulty because it implies the initiation of a process from the

developed to the developing country. This

ignores two basic responsibilities that

repose in developing countries before the

notion of technology transfer or technology

adaptation can be initiated. The first re- sponsibility for the developing country is

to determine what sort of society it wishes

to become in terms of the development of its

human and material resources. Having made

that decision, the developing country must

then determine the sort of technology it requires to achieve its economic and social

objectives. It is only after these two sets

of fundamental decisions have been made,

that developed countries may enter into the

picture.

Developed countries can sometimes provide

resources, skills, and analytical capabilities to assist developing countries in making rational technology choices and in developing the kinds of human and institutional resources they need. In this context the

U.S. has much to offer in both the public

and the private sector. The kinds of training and services offered, for example, by

the National Bureau of Standards in metrology, standardization, and quality control

will probably be of increasing interest to

developing countries. We must try to organize ourselves to provide these and other

kinds of educational and training services more efficiently and more effectively than

we have up to now. (J. A. Stromayer,

Deputy U.S. Coordinator for UNCSTD, State

Department.

)

20
SECTION 1 - KEYNOTE SESSION

Chairman: Dr. Ernest Ambler, Director, National Bureau of Standards

PAPER 1.1 - WELCOME AND INTRODUCTION

Dr. Ernest Ambler

It is my privilege to be chairman of this

first session, and it is also my distinct

privilege to welcome you all here to the

National Bureau of Standards. We are very

pleased to be hosting and cosponsoring this

Semi nar.

It is very gratifying that there are so many

representatives from diverse groups here this

morning, from the United Nations, from over

20 individual nations, from several groups

within the government of the United States,

and from American industry. This augurs well

for a very interesting conference with very

strong interactions and is an indication of

the importance of the topics being explored

this morning. These topics include metrology,

standardization, quality control, technology

transfer, and technical management.

In other words, we will be dealing with

elements of the technological infrastructure

needed to support industrial development. The

infrastructure, or as it is called in the

official title of this program, "knowledge

base", is an indispensable part of the

development process. Without it, the best

laid and clearest plans for industrialization

would be very badly impeded. In the next two

days, you will explore many aspects of the

knowledge base. The information and ideas

that are discussed here will help all of us better understand the needs and opportunities

that exist, and your discussions will serve as background material for the preparations for

the United States positions to be presented at

the United Nations Conference on Science and

Technology for Development.

So we are very glad that you are here, to

share with us your experience, wisdom, and

insight.

21
PAPER 1.2 - OBJECTIVES OF THE SEMINAR

Dr. Jordan J. Baruch

Assistant Secretary for Science and Technology

U.S. Department of Commerce

Washington, D.C.

This is a very exciting conference to me. The

whole concept of the growing industrialization

of the world is probably one of the strongest

forces for lasting peace that we have.

Politicians have their way of approaching

peace. Scientists and engineers, I think,

have a far more constructive one, and that is

by the gradual elimination of need and by

meeting the requirements of their individual

societies.

Unfortunately, industrialization, resting as

it does on technology, is often very difficult

to achieve with any degree of rapidity. There

is a story--I don't know how apocryphal it

is--about a United States company that set up

a large conveyor belt system for moving goods

out of some mine, a long line of rubber on rollers, and some years later I was told that

a visitor to that site found the conveyor belt

standing absolutely still, but the camels

which were carrying the materials from the

mine, were very happily walking in its

shadow.

I think this story typifies some of the

problems we have when we discuss

industrialization, and that is, the need for

an infrastructure: "Infra", meaning not lower

in the sense of importance, but lower in the sense of a foundation. Very often when we hear plans for industrialization, or for

technology transfer, as it is often called,

from people in the United States or people in

other countries, it brings to my mind the

picture of a group of people trying to build

an apartment house starting on the third floor

and working down to the foundation. It's a brilliant idea, but very difficult to

impl ement

.

The series of meetings that you will be

engaged in here addresses the question of

building the foundation for that

industrialization. I don't want to put too

much pressure on you, but let me just say that

without you, nothing is going to happen. Let me repeat that: Without you, nothing is

going to happen. There is no way that the

22

politicians of the world can produce

technology transfer and the industrialization

of many countries without first your groups

building the infrastructures that can keep

such industrial sectors alive.

Now there are many kinds of infrastructure

that are needed for the growth of industry.

One is the physical infrastructure: The

roads, the power system, the telecommunications operation. There is also a financial

infrastructure: the banks, the equity

markets, the venture capital availability. We

are not going to talk about those today and

tomorrow. We are going to talk about the

science and technology infrastructure. I would like to point out, however, that when

you get finished with your meetings here, you

will have covered only part of the subject.

Let me give you a working definition of

technology that I have found useful, and that

may be useful to you. "Technology is that

combination of the arts and sciences whereby

industry creates the useful goods and services

for a society." That is a generally used

definition in many areas of study in the

United States, but I would like to stress the

existence of the word "useful ," the "useful

goods and services". That implication of use requires not only that the technology grow,

but that the knowledge of the match of that

technology to the needs of society grow in

parallel. So many of you will be extending

your thinking from the area of the basic

technological infrastructure to the tasks of

matching that infrastructure to the

fundamental needs of your society.

Now you know, this group has to be one of the

most underappreciated groups around. I have

tried to figure out why that is. I think in

part it is because--wel 1, I can only talk for

the United States— engineers in this country

were always considered to have dirty

fingernails. And if you had dirty

fingernails, you were not invited to the kind

of parties around which the power structure of

the political world grew. I have a feeling
that there is that same kind of a cultural

problem in many countries. I know in certain

South American countries, engineers are considered to be hand workers and, therefore,

not the kind of people that one gets into the

management of a corporation. Those days are changing. And they are changing for a very

simple reason. They are changing because the

countries and the industries recognize that in our modern technological era we cannot

progress without the engineers and scientists.

We are not going to cover even the

technological infrastructure in any great

detail in the next two days. What we will be

doing is developing a basic understanding

among us, and a framework for a continuing

series of discussions. This group transcends

national borders, and we expect that our discussions will continue for a long time.

This Seminar has been called "The Technological Knowledge Base for Industrializing

Countries." I would like to make sure that

all of you~and particularly my colleagues--

recognize that when one talks about

industrializing countries, we include the

United States of America. Dan Bell, a sociologist up in New England, did a great

dis-service, I think, not intentionally, to

the future of the United States by writing

about the post-industrial society, as though

we were finished with the process of

industrialization. It reminds me of the time

back in the 1880' s when we had a resignation

from the Patent Office because, as the letter

of resignation stated, "all of the important

things had already been invented, and there

was no more need for a patent office." That same nonsense applies to the concept of the

United States as a post-industrial country.

An industrial country is fundamentally an entropy sink. It brings order to materials,

to information, and the day we forget that, we start a long down-hill slide. So I would like

to stress that the United States is not only

an industrializing country, but I hope my

colleagues will also recognize it as a developing country.

Now, the National Academy of Sciences has done

a report to help the United States form its

position paper for the UN Conference. The

Fund for Multinational Management Education

has also done a report. None of these really

recognize the importance of the scientific and

technological infrastructure. 23

As you get into that infrastructure, in the

next two days, you will find a great

dissatisfaction and frustration. First of

all, we cannot examine all of the

infrastructure. We cannot examine electronic

instrumentation, the service part of the

infrastructure, the maintenance system of a country. Most important, we cannot examine

the vital link that I mentioned earlier,

between the technology, the need, and the

delivery system of the country. But not only

is it impossible to examine all of the

infrastructure, what we do examine we cannot

examine in detail. We are going to be

examining four parts-- measurement science and

technology, product standardization, quality

control, and agreement negotiation. Each of

these is vital to the transfer of technology,

and each could comfortably take about a month

of discussion of the intensity that you are going to be having in the next two days. I hope that most of you will get a sense from

this meeting that you are part of a new and

vital network that is international in nature,

that parallels the political network, but one that can make extraordinary substantive

contributions.

The meeting program is structured to bring

together participants from governmental

organizations, country representatives from

developing or industrializing countries, and

representatives from organizations that have

been involved in the actual technology

transfer process. We have asked Herb Fusfeld,

who has been involved in this for a long time,

to start the meeting off, with a general

address to the question of the development of

an infrastructure. I could say some things

about each of the areas, but I think I have

talked long enough. What I would like to do

today is to encourage you, not only to get

vitally involved in the next two days of work,

but to make sure that this network that you

are putting together today persists for a long

time, and becomes a good source of communication channels, because the problems we are addressing will only grow over the next few

years rather than decrease. So I wish you

well in your deliberations and in your joint

activities, but, most importantly, I wish you

well, and a welcome to the community of

infrastructure builders that will make

industrialization possible throughout the

world.
PAPER 1.3 - EXPANDING HORIZONS: TECHNOLOGICAL KNOWLEDGE FOR INDUSTRIAL TAKEOFF

Herbert I. Fusfeld, Director

Center for Science and Technology Policy

Graduate School of Public Administration

New York University, New York, NY

There is no exact historical analysis by

which the development of the present

industrialized nations can be used as examples for a comparable development of

countries now in the process of

industrializing. Apart from the truism that

each country is different, the simple fact is

that we are considering today the question of

the best way in which a technology base can be developed within industrializing countries

in a world where industrialization has

already occurred for many countries. While

we are all still developing and

industrializing, there are such different

levels that have been achieved that we have

to look very carefully at the situation

today, where we do have a major base of

industrialization present in many countries;

against that background, we must consider

what newly industrializing countries may do.

There are, of course, guidelines and clues

that can be selected from the industrial

development of the Western world and of the more advanced socialist countries that can be

drawn upon to the benefit of newly

industrializing countries. But these are not

always obvious, they always require tailoring

to the culture and capabilities of the

developing country involved, and we have both

good and bad examples to consider.

The principal distinction to keep in mind is

simply this: the industrialization of the

Western world took place within roughly the same time period as the development of the

technology that was part of that

industrialization and with constant strong

interactions between these two developments.

The industrialization of developing countries

today is taking place within a world that

contains a complete spectrum of technology,

from windmills to satellites.

This simultaneous progression of industry and

technology in the Western world was, in the

broad sense, evolutionary, no matter how

rapid that evolution may have seemed at

times. They proceeded in a crude balance, a key word which I will emphasize again and

again. The industries and markets in place

created needs for technology and at the same time provided a mechanism for exploiting new advances. A growth cycle was in operation by

this feedback characteristic of the

evolutionary industrialization occurring.

Newly industrializing countries today appear

to have an enviable choice for selections

from the available reservoir of technology in

order to build a base for whatever

industrialization is desired. My concern is

that such selections and planning may occur

based on the superficial relation between

technology and industrialization that can be

observed in the developed countries, without

adequate understanding of the more complex

factors present. These factors provide the

cement that brings together technology and

industrialization in an effective

relationship. An understanding of this total

system is necessary in order to guide our approach to building an appropriate

technological base.

The developing countries approach the world

market of technology much as a hungry man approaching a smorgasboard banquet. Where to

start and what to emphasize? But the

situation differs from the experience of

Western developed countries in two important

respects

1. There is today a strong element of

national planning in selecting both the

technological structure and specialties, and

the desired areas of industrialization to be

supported by, or to flow from, this technology

2. Any technology selected for emphasis

by an industrializing country will almost

certainly have been developed and put to use somewhere else so that a "technology gap"

exists by definition.

Keeping in mind these two characteristics,

one should then consider two principles that can help developing countries to avoid the

disadvantages contained in them and to build

24
upon whatever flexibility their situation

implies. First, there should be a clear

understanding of the industrial objectives

for the country that is based realistically

on the internal capabilities, the world

markets and resources, and the time required

to develop a technical base compatible with

these objectives. Second, there must be

development of indigenous technical

capabilities to adapt and then to emphasize

those areas of technology that relate most

closely to the evolving domestic industrial

efforts arising from the national objectives.

Without going into particular technical

subject areas, we can translate these broad

principles into somewhat more specific

guidelines. There are different categories

of national objectives related to

industrialization, and they call for at least

different technological structures, most

probably for different technologies. I find

it helpful to think of these national

objectives by analogy with the several

categories of objectives of a corporation.

Each objective requires not merely different

technologies but a different balance of

capabilities to form an effective system.

A corporation generally develops technology

to meet one or more of these objectives:

1. Cost reductions within its existing

business and operations.

2. Improvements in present products

and/or development of new products for

present markets.

3. Development of new products for new markets and for development of wholly new

busi nesses

These can be compared in a single table in

terms of the three classes of objectives:

OBJECTIVE

Strengthen

present base

Expand present

base

Develop new bases

CORPORATION

Lower costs

Improve products

COUNTRY

Strengthen

national

structures

Provide

for

domestic

markets

New products for Develop

new markets exports

As we think of the problems faced by

industrializing countries in terms of the

comparable corporate situation, the

simplified table above suggests the

fol 1 owi ng:

1. The technological structure called for

must be identified with some industrial

structure already in place or whose

establishment is well defined as to

requirements, markets, and ability to

impl ement.

2. It is clear that the objectives listed

can be achieved by a variety of mechanisms

such as investment in new plants and

machines, different allocation of labor,

cooperative agreements with other countries.

We are concerned here only with technology,

therefore we must really consider the

technological structure that can be most

effectively integrated with the capital,

labor, and management available to best

achieve each objective.

There are, roughly, comparable categories of

objectives for industrializing countries,

namely:

1. Strengthening of existing national

structures in natural resources,

manufacturing, and services.

3. There are different time scales

associated with each separate objective,

time for developing or adapting a desired

technology for a given objective must be

compatible with the time in which it is

needed, an obvious but often ignored

criterion.

The

2. Expansion or development of

industries to provide the needs of domestic

markets.

3. Expansion or development of

industries intended to create exports.

It is clear, then, that a newly

industrializing country may appear to have a choice of all the technology in use within

the developed countries, but it must in fact

operate within the constraints and guidelines

25
of its own position and objectives in order

to use technology productively. The primary

goal is not technology but balance, and the measure of success is not the number of

technical personnel or even technical

contributions but rather the effective

integration of technology into a workable

economic system.

Thus, a critical factor that must be present

in any industrializing country is the ability

to manage technical resources. Not only is

technology merely one of several approaches

to achieving industrialization, but there are many approaches to achieving a technology

base. If a developing country could afford

to buy or to train just one professional

person, that person should be a technical

manager—not an educator, not a scientist,

not an engineer, but one who understands and can integrate the contributions of the

others.

The particular importance of technology

management is that there are choices to be

made, both choices of technology and choices

of mechanisms for acquiring technology.

Again, there is an analogy with the

operations of a private corporation. Each

company develops the most efficient process

for acquiring the technology needed which is

most compatible with corporate resources.

That is, technology can be developed in

company laboratories, it may be obtained

through licenses, or there can be some form

of joint venture with another corporation

possessing the technology.

Thus, an industrializing country can use combinations of any number of mechanisms

including:

1. Development of domestic know-how, in

the home country or abroad, through exchanges

of personnel

.

2. Cooperative technical programs with

private or public organizations from

developed countries.

3. Development of a basis for companies

from industrialized countries to establish

manufacturing plants.

4. Joint business ventures with private

companies from industrialized countries.

5. Mission-oriented technology

institutes, focussed on specific industry

sectors with cooperation of the private

sector of developed countries.

These mechanisms sound as though I place

great reliance on the involvement of private

corporations, and I do. But I am not

suggesting that the industrializing countries

lose control of their development, nor do I have any illusions that cooperation from the

private sector will be provided simply by

asking. However, these several mechanisms

can expedite the development of a technological base if both the industrialized

and industrializing countries understand and

accept the objectives of each.

First, the use of cooperative arrangements

with private companies should be in addition

to, not instead of, the development of

domestic technical skills. There must be some minimum number of skilled technical

people within the country, otherwise it

cannot be considered as an industrializing

country. In any event, particular skills

necessary for the early stages of

industrialization must be the first priority

in order to encourage cooperative ventures as an acceptable and practical option.

Second, instead of attempting to separate

out, or "unbundle", technology from its

related business, every effort should be made

by the industrializing country to attract a "business package" through some form of

cooperative venture with the private sector

of the developed world. Again, I am not

suggesting this simply because I believe in

the effectiveness of the private enterprise

system, which I do, but because a complete

venture which includes manufacturing and

distribution activities will:

1. Provide a mechanism for the technology

to contribute to the domestic economy.

2. Create an infrastructure of supporting

technical skills, including inspection,

measurement, quality control, and

mai ntenance.

3. Identify and motivate the

technological base needed to improve and

strengthen the business structure.
4. Develop an income base to finance a stable, long-term technological effort, in

other words, create the same kind of growth

cycle which has been built up in the Western

World.

Third, there should be a deliberate effort to

develop close ties with one or more

industrial sectors of the developed countries

in order to create a reservoir of potential

cooperation from those enterprises for

training, for exchanges of personnel, and for

establishment of technical institutes

intended to provide the developing country

with the ability to expand its own technical

base in those industry sectors.

My emphasis throughout this paper on the

potential roles of private companies as a powerful aid to industrializing countries in

building a technological base should perhaps

be clarified and put into perspective. After

all, most discussions on the role of

technology in development emphasize training,

health, agriculture, information

exchanges—that is, the general technological

infrastructure. I do not mean to ignore or minimize these activities.

To explain my emphasis, let me return to the

earlier comparison between the approach of a private company and that of an industrializing country. The general

categories I used were (1) strengthen the

present base, (2) expand the present base,

and (3) develop new bases. As a broad

generality, the first category, consisting in

great part of the technological

infrastructure, can draw largely upon resources and technology available within the

public sector, or at least the non-profit

sector. This includes government,

universities, foundations, and so on, which

are the logical sources for such subject

areas as education, public health, and the

like.

The second two categories are concerned with

active economic growth, and involve

manufacturing, distribution, marketing—that

is, the resources needed to use and to

specify the appropriate technology. And this

is a meaningful use of the phrase

"appropriate technology" 1. The resources required for these categories are the

management skills and the technology which

reside in, and are the property of, the

private sector.

This distinction between public sector and

private sector technology and their roles in

different phases of industrialization,

although well understood, is rarely stressed

adequately. This is why I have placed my

focus primarily on the contribution from the

private sector.

Without referring to any particular industry

or technology, I have attempted to set forth

several of the principal conditions that

should be satisfied in the development of a strong and effective technological structure.

These conditions can be summarized as:

1. There must be an industrial structure

to provide feedback that can reinforce and

guide both the industry and the technology.

2. There must be a clear understanding of

objectives and timing, so that the allocation

of technological resources can fit in with

the allocation of total resources into

strengthening the national structure,

providing domestic needs, and developing

export markets.

3. There should be emphasis on technology

management in order to achieve the most

effective mix of domestic technology and

cooperation with developed countries.

4. There should be encouragement for the

establishment of complete business

enterprises in cooperation with the private

sector of developed countries in order to

expedite the integration of technology into

the economy, and provide a basis for

selective technical development.

I believe that an industrializing country can profit greatly in all aspects, particularly

in its development of a technological base,

by becoming familiar with the management

techniques of a private corporation. This is

why I have stressed the value of cooperative

ventures with enterprises from the developed

countries. Such cooperative ventures can in

turn be pursued most effectively when there

is an identifiable company or business unit

within the developing country which can interact with its private counterpart from

the developed country. While the developing
country must establish its overall

objectives, timing, and priorities, the

development of specific technological

strengths can probably best be accomplished

through the independent actions of the

separate industrial or business units within

the developing country.

The present level of industrialization in the

developed countries of the West derives from

the two broad factors of balance and time.

There is a balance among the complex

interplay of technology with those other

elements needed to bring its benefits to

society—manpower, capital, and an organizational structure. A long time period

has been required for this evolution to take

place in Europe and the United States, to

develop the needed infrastructure, and to

evolve the system of feedback and integration

that creates the balance.

Industrializing countries can learn the

principles for achieving this balance, and

the function that balance plays in the use and advance of technology. The time scale

can be shortened through sensible and

creative cooperation with the industrialized

countries—cooperation not just with

governments, but with companies.

This cooperation depends in great part on understanding that private companies are concerned with the successful establishment

of a total business, not with the building of

a technical base as an end in itself. It is

my understanding, however, that this is also

the concern of the industrializing countries,

or at least of those within the country

concerned with its economic health. Equally

important for this seminar, a successful

business both includes and specifies a technological structure. There is no meaningful way to build technology without

building a business structure, and there is no quick way to do this without cooperative

ventures with private companies.

Other speakers at this seminar will emphasize

specific elements that make up a technological structure and case histories to

illustrate their importance. I have

emphasized the need to relate any

technological structure to the parallel

structure for its use. The principles for

accomplishing this and the technical

management required are to be found in the

disciplines of modern industrial research and

in the operation of Western private

companies. It is not necessary for a developing country to copy these practices,

but it is necessary that they are understood

and adapted to meet the specific political

and economic structure of the developing

country. If the developing country is

willing to work with a private company

without destroying the business structure

which it brings along with the technology,

then I am certain that the Western private

sector can provide the needed cooperation

without undue distortion of the domestic

politics or economy. The advantages are mutual, the objectives are compatible.

Building a technological structure as such is

simply an intellectual exercise. Building a strong and successful economy is a worthwhile

human enterprise in which all of us can contribute, and in which the future can work

successfully with the present.

DISCUSSION :

Mr. Saul Padwo (Bureau of Domestic Business

Development, U.S. Dept. of Commerce):

Dr. Fusfeld described a system which says

that technology as a resource by itself is

meaningless, unless it is used appropriately

as part of the management mixture of tools,

where other resources in the management

mixture are blended with it. Could we look

at a lesser developed community in an industrialized country as being comparable to

a lesser developed country, and if that is

so, could the mechanisms that we have

discussed and examined as being applicable to

lesser developed countries in fact be tested

in the industrialized countries, for the

development of their lesser developed

communities?

Dr. David S. Lieberman (University of

II 1 i noi s)

The question is whether less developed

communities within an industrialized

country could serve as a paradigm for less

developed countries within an industrialized

world. I think they probably can. There has

been some work in this area. The paradigm is

not a simple one, because countries, being

28
larger in scale, have a different

distribution of many of the natural

resources, both personal and material. But

yes, I think there are very similar problems,

within the United States, for example, to

those that we are addressing here within the

world.

Dr. Edward L. Brady (Associate Director for

International Affairs, NBS):

Dr. Baruch has referred to a network of some

sort. I would like to ask him to amplify

that a little bit, and explain what he meant

by the "network of people here".

Dr. Baruch:

This group has gotten together because of a common interest in the development of the

industrialization of a wide range of

countries. You constitute, in essence, a group with similar technological backgrounds,

similar tasks of introducing a technological

infrastructure into your countries, and a group that is now connected to each other as

a group. When there is a problem in Saudi

Arabia, there ought to be a way of accessing

the people in the United States, or in any one of the other countries. As we start to

see generalities, congruences among our problems, the ability to make two phone calls

and reach anybody in the network is extremely

important in their practical solution. And

this forms a good nucleus for a network. You

are going to be living together for two days,

discussing a common problem, getting to know

each other, and I would suggest, collecting

addresses and telephone numbers.

Dr. Lieberman:

Both talks in interesting ways touched just

lightly upon the whole question of

technological education, which I think is

inherent as a very important part of this

problem. What are the institutions of higher

technological education? How are they able

to support this growing industrialization?

Without this support you are going to have to

just give aid all the time, instead of having

local development be self-sufficient. You

then have to think about values, a subject

which was also inherent in both talks. So

although we may all agree on how to build a bicycle, the question of whether to build

bicycles or not, is a very different one. Answers to this kind of value question depend

upon the country concerned and the people

involved and the time. I don't know how you

get these answers with

scientific-technol ogical discussions.

Dr. Fusfeld:

It is a very difficult question. You know,

right now, we are faced with exactly that

problem in most of the preparations for the

UN Conference: the question, for instance,

of what is "appropriate technology"?

Automatically, as soon as you use the word

appropriate, you have got a value judgment in

there. For example, it has looked to some people, especially members of some of the

third world countries, as if the idea of

using "appropriate technology" is simply a way of freezing in a low-level agricultural

status. In fact, they would much prefer to

have a highly advanced, industrialized

country, and to use very inappropriate

technology by our standards. I think they

are perfectly right. In other words, it is

not proper for people in our country,

supposedly trying to be of assistance to

developing countries, necessarily to use our value judgments on exactly what technology is

needed and what their objectives ought to be.

The responsibility for observing what we are doing, picking what you think you need, and

adapting it in such a way to fit the

organization and the economy of your

individual country, is clearly the

responsibility of the developing country

itself. We cannot set our values on it. And

therefore by analogy we cannot suggest a training system, and educational system,

unless there is some rough idea not only of

the kind of objectives of the country, the

kind of technologies they will need, but the

time scale that they think they want it in.

In the past, much of our infrastructure

approach of providing institutes and training

of manpower, at least in recent years, seems

to have ignored the fact that these are 30

year projects compared with some of the

demands from third world countries for

essentially 2-5 year projects. So, all I can

say is, you are right. I am not sure what to

do about it.
Dr. Baruch:

I would like to make one observation. In any

organization, you find two different sets

of activities, which I have tended to label

as "goal selection" and "goal pursuit", what

should we do? How should we do it? In

nations, goal selection is primarily a political activity. Goal pursuit is

primarily a technical activity. But what is

increasingly obvious is that goal selection

cannot be done in the absence of knowledge

about what is obtainable, and similarly, goal

pursuit cannot be done without an understanding of the basic reasons for the

selection of the goals in the first place.

So, one of the things that is becoming

increasingly obvious, is the bringing

together of the politico-technical systems in

order to continually iterate this process of

pursuit--selection--pursuit--selection. In a company, it shows up by an increasing

tightness of coupling between the marketing

departments and the engineering departments.

In a government, it shows up by appointing

engineers to assistant secretary slots. I think it is critical that we recognize that

those two are growing rapidly together, and

will eventually merge.

Dr. Jose L. Tudor (Barbados National

Standards Institution):

Dr. Fusfeld mentioned the need to establish

mission-oriented technological institutes

that address the problems of particular

industries. Am I correct in saying that

these could be of two kinds? One kind is

that which the institutes are established by

developing countries themselves, to address

their problems, using their own available

resources, perhaps with financial aid from

international bodies. The other kind would

be the type of institutes established by the more advanced industrial countries within

industrializing countries, which address

problems of interest to both sides. Such

problems might be, for instance, problems in

solar energy or in developing unique resources. I tend to think of a couple of

institutions established in Barbados by

various institutes from more developed

countries which work in areas that could be

of interest to both countries. However, I think that a problem arises in bringing some

of the benefits to the people in the

not-so-well-industrialized country, in that

there seems to be a lack of local

participation in these activities. Perhaps

you would like to expand on ways in which

such types of institutes could be fostered

and the benefits shared more adequately, and

also on how private industry might possibly

fit in establishing such institutes.

Dr. Fusfeld:

I can quote one example that will illustrate

the sort of thing that I had in mind. I must confess that I was thinking primarily of

the first of your two categories, namely, the one where you have an institute in the

developing country, focussed on either the

industrial area or some form of

mission-oriented problem of that country.

The reason I suggested it is because it is a good example of how to get cooperation from

the developed countries.

The example I can give you, since I spent 15

years with the Kennecott Copper Company, is

that of the development within Chile of a copper research institute. This story has

both good and bad examples in it. The

Chilean government wanted to strengthen its own domestic base of people and technology

and processes, focussed on the Chilean mining

industry, which provides them with perhaps

60-70% of their income, very critical to the

country. They did not want to be completely

dependent upon technologies coming only from

the West, which was the case, the research

and development in mining having been done in

the United States, Canada, and elsewhere. So

the concept was good. And they did want to

set this up. They wanted to get cooperation

from the private sector.

They approached the big copper companies,

obviously, and we said, "Yes, we would be

happy to cooperate." And why did we say it?

Not for the sake of charity, but because we

had a major business operation in that

country. We obviously wanted to strengthen

the technical infrastructure and the local

engineering capabilities. In other words, we had a selfish interest in helping them, and

it would have helped that country. I use the

past tense, if you are watching my English

carefully, because this was arranged just

30
before Mr. Allende came into power in Chile.

About two weeks before I was supposed to go

down to Chile, Mr. Allende took over, and of course my trip was cancelled. Naturally, the

copper companies were thrown out, and this

became a Chilean problem only. There was no further help from the Western companies, for

many years. Finally, with United Nations

help, the Institute was set up. Now, with a different government in Chile, they have

again attracted foreign companies to come in

there--I must say Kennecott and Anaconda did

not go back, but Exxon went in--to open some copper mines for them. Of course they are quite able to call upon any company which has

a business interest in that country to help

them. And they are being helped.

Now there are several morals to all this. It was a very good concept in the first place,

because it did address itself to the kind of

growth cycle that I was talking about. There

was an industry, they were building up a technology, and the two could strengthen each

other. It could have been expedited by help

from the foreign private sector, provided

there was a business interest for that

private sector in that country. Believe me,

if no American company had any copper

interest in Chile, Chile would not have been

able to attract a single engineer from those

companies to help them.

I think that is something to keep in mind as we are preparing some approaches for the UN

Conference, that while there is an enormous reservoir of technology in the private sector

of the West, the only realistic hope of

getting the cooperation of private companies

is when there is a business interest of a company in the country that is asking for it.

If there is no business interest, I just

don't see how you realistically can expect it

simply as a favor.

Miss Winifred Armstrong (International

Management Development Institute, New York

City):

One of the problems that I see in many

companies coming into a developing country

is that they bring with them the technology

that they are currently using, that they have

currently developed out of their own situation, and the kinds of equipment and the

kinds of training and the kinds of parts, and

so forth, that generally are geared to what

we have developed here, and the markets that

we meet, that we generate, here. How can the

United States and how can the companies help

the developing countries achieve the kind of

balance that you have talked about, which

includes developing technologies which are appropriate in the countries, which arise

from their needs? Our latest is not

necessarily their best. What kind of

incentives can there be that will help us to

develop the systems with them, that are appropriate, so that growth comes on both

sides?

Dr. Baruch:

I think that you are asking an important

question. I think Dr. Fusfeld stressed

that the private sector has a role. I don't

think that he ever intended to imply that the

private sector has the role. I think what is

important to me in my view of this whole

activity is that industrialization is not a state, it is a process. There is an old

saying, that if you give a man a fish, you

feed him for a day; you teach a man to fish,

and you feed him for his life. I don't think

that the United States can play an effective

role in bringing about industrialization in

another country, but I think we can play an effective role in helping that country learn

how to industrialize. And you can't start

that except from the kind of group that is

here. We need certain basic underpinnings.

When the private sector brings in materials,

goods, machinery, it is geared to their most

efficient use for getting a job done. That

does not necessarily match the state of

development of the country in which the art

is being practiced. Many countries have

negotiated agreements with private sector

firms, to say, "Yes, you may come in and

exploit our resources, but the price for that

is not only money, but training, and the

establishment of training programs to bring our people up to speed." I think if we stop

thinking of industrialization as a developmental state rather than a developmental process, we will see that the

main way we can help, both in government and

in the private sector, is by teaching that

process. And countries that have raw materials are in a good negotiating spot to
insist on that kind of help. But if the

country insists instead, on the delivery of

the shiniest new computers, or the fanciest

new milling equipment, then that country

itself doesn't understand what is going on.

It is putting itself into a situation that

can only be described as being a technological colony. And that I think most

developing countries want to avoid.

Hamilton Herman ( Industrial • Consultant,

Potomac, Maryland):

If you have a local, domestic Technical

Applications Institute, in the developing

country, it can become a technical

translation mechanism. KIST in Korea is an example. The Institutes take the technology

that happens to be current, say in the United

States or in another developing country,

translate it and put it in perspective to

apply it to meet the particular state of

progress, the particular state of industry,

and the particular set of conditions found in

their particular countries.

32
SECTION 2 - MEASUREMENT CAPABILITIES AND SERVICES REQUIRED BY TECHNOLOGICAL INDUSTRY

Chairman: Mr. Hamilton Herman, Industrial Consultant, Potomac, Maryland

CHAIRMAN'S COMMENTS:

The experience of the various people who are participating in this session can be most

valuable. There isn't any one right answer.

As Dr. Fusfeld suggested, there is an answer

that happens to fit the particular country at

a particular time, and therefore the range of

applications of technology is a continuous

spectrum depending upon where you happen to

be in the time-phased development of your own particular country or, within a country, the

time-phased status of an industry or a social

probl em.

Now the group this morning, this particular

session, is going to address itself to

measurement capabilities and services

required by technological industry. Perhaps

I'll go back just one minute to a few years

ago when in this country they were telling

jokes about "Good news, bad news". The story

was about an airplane that you may have heard

of whose pilot came on the intercom to the

passengers and said, "Good morning. We have

both good news and bad news for you. First,

the bad news: we're lost. Now the good

news: we're going 600 miles an hour." I think from a measurement and capability

viewpoint, the idea is not to get lost. The

idea is to chart out or put a grid under the

technology and under the products and

processes that you have, so indeed you do

know where you are. And of course, the

second point is, not only do you need to know

where you are, but where you are going, and

how to communicate with others, and of course

these are the key points in the use of

measurement capabilities and services,

because if you don't have these, you neither

know where you are nor do you have a sound

base from which you can decide how far you've

come and where you are going.

33
PAPER 2.1 - KOREAN MEASUREMENT CAPABILITIES: PAST AND PRESENT

Jong Wan Choi, Administrator

Industrial Advancement Administration

Ministry of Commerce and Industry

Seoul, Republic of Korea

1. SCIENCE AND TECHNOLOGY FOR INDUSTRIAL

DEVELOPMENT

From the early days of man's history, men

have constantly searched for better means and

expanded their knowledge and experience in

their given conditions to best satisfy their

needs. As shown by modern economic history,

we can easily observe that no country, even with abundant natural resources, capital and

large population, can develop industrially

without matching science and technology.

More specifically, metrological capabilities

in science and technology play a vital role,

particularly in technological industry.

Under developing conditions, therefore, it is

necessary to adopt the following two schemes,

if scientific and technological development

are to be obtained. Firstly, advanced

science and technology should be vigorously

imported. Secondly, domestic science and

technological capabilities have to be built

up in order to fully absorb, digest, and

adapt imported technology to indigenous

conditions and to develop domestic

self-sustaining capabilities in science and

technology.

In order for a system or a service to receive

proper social appreciation and support for

substantial development, it must be

responsive to social requirements. The

development of science and technology and a system for measurement cannot exist

separately from industry, especially from

industrialization. In short, a program to

implement these systems must be carried out

in accordance with the degree of industrial

development or industrialization of the

society. Of course, it is true that

development of science and technology and, in

particular, measurement capabilities, often

plays a leading role as an accelerator in the

process of industrialization.

It seems necessary to discuss briefly the

status of Korean industry before getting into

the details of the Korean system for

measurement capabilities.

2. STRUCTURAL STATUS OF THE KOREAN

ECONOMY

2.1 Rising Above the Rubble

Korea is a peninsula with 98,000 km^ and

35 million population. Arable land is only

25,000 km^ with few natural resources. The

country was torn into north and south across

the 38th parallel at the end of the second

world war. The Korean War completely

destroyed whatever industrial facilities

existed at the time. The entire population

had to come through hunger, poverty, and

despai r.

In 1962, the first government action for an economic development plan was initiated to

break out of the vicious circle of poverty

and hardship. Through a planned development

of the economy, Korea achieved remarkable

improvement in its national economy. In the course of this significant economic growth,

the positive assistance in economic areas and

science and technology which was provided by our friendly nations, especially the United

States of America, has been of great help.

2 .2 Progress of Industrial Development

Starting from meager industrial facilities

with not a single large-scale plant in the

1950' s, Korea started the march toward an epochal new stage of development in the

1960's. The first Five-Year Economic

Development Plan in 1962 provided the

foundation for industrialization toward a self-sustaining economy. The manufacturing

industry grew steadily at the rate of 14.7%

per year during the first Five-Year Plan

period; at 21.4% in the second; and 18.8% in

the third (see Table 1). Growth of the

manufacturing industry led the way toward

sustained growth of the economy through the

three Five-Year Economic Development Plan

periods, as can be seen in Table 1.
Table 1 - Annual growth rate of industry

1962-66 1967-71 1972-76

Agricul ture,

Forestry and

Fisheries 5.1 2.3 4.7

Manufacturing 14.7 21.4 18.8

Social Overhead

Capital and

Other Services 8.3 12.3 7.5

SOURCE: Courtesy of Economic Planning Board

(EPB)

The strategies of industrialization in these

periods can be summarized as follows:

a. The first Five-Year Plan period (1962-66)

was characterized by a strong emphasis on consumer product industries and import

substitution. Leading sectors were textiles, cement, fertilizers, and electric

power.

b. During the second Five-Year Plan period

(1967-71), emphasis was shifted on the rapid

growth of these industrial sectors and also

to export-oriented industries. The period

saw considerable increases in the export of consumer products and effective import

substitution of consumer goods and

intermediate products. Social overhead

capital increased, and the new leading

industrial sectors were synthetic fibers,

petrochemical industries, and electrical

equipment.

c. The basic targets in the third Five-Year

Plan period (1972-76) were the export of

intermediate and construction materials.

Chemical and heavy machinery plants were constructed and went into operation. Iron

and steel works, machineries, consumer

products, and shipbuilding were the main

industrial sectors that were especially

fostered during this period.

The three Five-Year Plan periods stimulated

development of the industrial structure

toward a higher level. In 1976, mining and

manufacturing were 31% of the entire

industry; agriculture, forestry and

fisheries, 24.8%; and social overhead capital

and other services, 44.2%. The pattern has

been shifted toward that of the advanced

industrial structure (see Table 2).

Table 2

Composition of the industrial structure

Social Overhead

Capital and

Other Services

46.9%

44 . 2%

16.5% Mining and

Manufacturing

31 . 0% Agricul ture,

Forestry, and

Fisheries

36.6%

24.8%

1962 1976

100

50

SOURCE: Economic Planning Board (EPB)

There has been a change in the industrial

structure of the manufacturing sector also.

The ratio of heavy and chemical industry

versus light industry was 26.6% versus 73.4%

in 1962, and changed to 40.2% vs. 59.8% in

1976 (see Table 3).

Table 3

Composition of the manufacturing industry

26 . 8% Heavy Machinery

and Chemistry

40.2%

Light Industries

73.4% 59.8%

100

50

SOURCE: Economic Planning Board (EPB)

35
Export volume increased steadily during the

periods of this industrial growth. The

annual rate of export increase was 42.9%

during the first Five-Year Plan period; 39.6%

in the second; and 43.4% in the third. In particular, export of manufactured products

increased at the rate of 76.2%, 48.7% and

44.6% during the same periods (see Table 4).

Table 4

Growth Rate of Exports

(In percentage)

1962-66 1967-71 1972-76

Total Exports 42.9 39.6 43.4

Manufactured

Products

Exported 76.2 48.7 44.6

SOURCE: Ministry of Commerce and Industry

(MCI) Data

Economists point out that the main factors in

the remarkable industrial development of

Korea are as follows:

a. Strong leadership and political

stabil ity.

b. Will and dedication of the people.

c. Abundance of skillful labor force with

a high level of education.

d. Successful introduction of foreign

investments for industrial development.

e. Success of export volume expansion.

Actual export volume reached S10 billion in

1977 and is expected to attain the goal of

$12.5 billion this year. This export

volume represents a 300-fold increase since

the beginning of the Economic Development

Plan in 1962.

3. HISTORY OF NATIONAL MEASUREMENT

CAPABILITIES

Korea first established regulations governing

weights and measures in 1902, although the

national physical standards of the meter and

the kilogram had been obtained in 1894. But

it was only in. 1959 that Korea ratified the

Convention of the Meter and the Metric

System. The System was put into force in

1961 to modernize weights and measures by

enactment of the present "Law of Weights and

Measures"

.

Under the "Law of Weights and Measures",

those who manufacture or repair metrological

instruments are required to obtain the

government's license to ensure the precision

and accuracy of such instruments. The

license is presently issued by the Industrial

Advancement Administration (IAA). In addition, metrological instruments

fabricated, repaired or imported are subject

to government inspection. All commercial

metrological instruments are subject to

mandatory inspection and calibration, while

industrial instruments are, in general, left

to voluntary inspection and calibration.

Inspection and calibration services have

already been established by various research

institutes, testing laboratories, and

industrial product inspection agencies, with

reference to secondary level physical

standards of weights and measures which are maintained by the National Industrial

Research Institute of IAA and the Fine

Instrument Center (FIC), which was established jointly by the Korean government

and UNESCO.

As noted, industrial products manufactured

during the First and Second Economic

Development Plan periods (1962-71) were from

the light industries and nondurable goods.

This is why the weights and measures systems

in Korea have initially focused on commercial

uses to ensure equitable trading rather than

on the industrial metrology sector for

production processes.

In view of the government's policy in 1972,

Korea has had to deal with building up its

heavy and chemical industries. Korean

industry, therefore, had to face new challenges in the technological industries.

A timely survey report of NBS/AID in 1972 on

36
"Standardization and Measurement Services in

Korea" accelerated the creation of a new national measurement system and body to meet

the new phase of Korean industry. I would

like to emphasize at this point that the

survey projects by advanced countries play an immeasurable role in the creation of an infrastructure for industry in developing

countries.

4. ESTABLISHMENT OF A NATIONAL STANDARDS

BODY

4.1 Korea Standards Research Institute

In 1973, the Korean government established

the Industrial Advancement Administration

under the Ministry of Commerce and Industry.

This idea was also recommended in a report

prepared by NBS/AID in 1967. Since then, the

Administration has worked for the creation of

a national standards system (NSS). As one result, in 1975, the Korea Standards Research

Institute ( K-SRI ) was established to be the

central body of the NSS.

From its inception, K-SRI has received

support in advanced measurement technology

from the United States' National Bureau of

Standards (NBS), a sister institute of K-SRI.

Using a $5 million AID loan, about five

hundred items, including prototypes of

primary standards, were obtained in the first

phase. Installation of 200 items is

currently under progress, with a schedule of

normal operation by April 1979. Future

investments of £8 million from the Asian

Development Bank (ADB) will provide

supplementary standards equipment and

facilities. With this equipment and

facilities, K-SRI will be ready to support

industry in various technical aspects.

The role of K-SRI can be summarized in the

following three major activities:

a. Maintenance and dissemination of

national standards.

b. Education of advanced measurement

manpower.

c. Technical support for industrial firms.

d. General research work for weights and measures

4.2 Establishment of the National

Calibration System

In order to improve national measurement

capabilities, a national standards

institute alone cannot achieve the goal. A

nationwide dissemination mechanism of

standards through secondary calibration/

inspection organizations is needed.

In Korea, no systematic and nationwide

calibration/inspection network is available.

Accordingly, a systematic calibration

network, with K-SRI at the top in precision

and accuracy is being planned, and the

precision level of the entire industrial

sector will be gradually elevated to the

level of advanced countries (see Table 5).

5. NATIONAL CAMPAIGN FOR QUALITY CONTROL

So far we have laid the groundwork to

modernize the measurement capabilities

necessary to support technology-intensive

industries, and much progress has been made

in this area. However, this does not solve

all the problems. It remains to be seen whether or not Korean industries are ready to

utilize this measurement system.

A fact-finding survey of weights and measures

was conducted in order to establish a basic

policy for the service system. The survey

revealed that:

-First, industry has an insufficient

number of precise and accurate measuring

instruments, necessary in the

manufacture of products meeting

established standards.

-Second, the calibration of measuring

instruments is not regularly done, in

spite of the fact that it is necessary

to maintain the precision and accuracy

of measuring instruments.

-Third, management, especially top

management, is lacking in understanding of

the importance of weights and measures to

industrial development.

-Fourth, there is an insufficient

distribution of standard reference

material s.
Table 5 - Nationwide calibration/Inspection network

Primary Standards

(National Standards)

Secondary Standards

(Ca I Ibratlon/lnspectlon

Agencies)

Tertiary Standards

(Cal Ibratlon/lnspectlon

Agencies)

K-SR

BIPM

^ International

l\ Cooperation and Natlona

\ Credibility Standards

Agenc les

Factory Inspection

Work-Bench Level

of the need for standard reference

material s.

To promote an awareness of the importance of

the metrology and standards system and its

full utilization by industries, IAA, in an effort to provide a broad base in this area,

launched in 1975 a nationwide quality control

campaign throughout the country. This

massive campaign started with a publicity

campaign wherein about 1 million pieces of

educational material related to the

importance of quality control were

distributed. The publicity campaign was followed by many educational programs. As

shown in Table 6, from top to middle

management down to technicians and workers in

the working line level, more than 36,000

persons completed the educational programs.

Next, to introduce the quality control system

to manufacturers' production processes, the

government designated 2,500 firms as leading

quality control companies to implement and

develop quality control methods in the hope

that these companies' experiences will be

shared by medium and small industries.

/ K 1 ST/ llzed \

1 ADD / Ugency

/Local /Army, Nat Ion -I An /lnspec-/Navy al \thor-\

/tlon and/ and Testing \ 1 zed \

/Testing / Air and \ Agency\

/

Agency / Force Research I Agency l

/

Transpor-/MI 1 Itary 1 ndustry Research \

/ tatlon / Unit \ lnstitutes\

/ and / \ and Col lege\

/ Service / I of Eng IneerA

\ Ing \

/ Commerce / Workbench \ Laboratory \

understanding Table 6

19 Authorized

Cal I brat I on/

Inspection

Agencies

54 Authorized

Cal I brat I on/

Inspection

Agenc les

Industries

Status of Quality Control Training

1975 1976 1977

Sept

.

1978

Grand

Total

Top Managers 885 255 356 773

Qual ity

Control

Personnel

Middle

Managers

Group

Leaders

Others

Total

395 701 742 552

327 543 1,005

1,635 1,376

4,817 6,356

2,899

6,196

3,363

3,628

7,732 9,016 10,736 9,321 36,805

38
For quality control at the work bench level,

29,000 quality control circles composed of

workers at the actual work lines have been

organized and are now operating. We have

conducted about 500 seminars, workshops, and

public campaign meetings on quality control

topics throughout the industrial sector.

We also organized annual National Quality

Control Promotion Conferences to assess past

achievements and to promote further

developments in quality control. At these

conferences, we have a national

prize-awarding ceremony to honor outstanding

firms and individuals in their quality

control achievements. This campaign has

proved successful in establishing awareness

of the importance of quality control.

Consequently, this effort has induced

utilization of the national measurement and

standards system.

6. CONCLUSION

We have built the groundwork for the national

measurement and standards systems for Korean

industries, which face new challenges in

advancing toward a higher level of

technological capability. We have

encountered many challenges and obstacles

which we have been able to overcome with

wisdom, innovation, and hard work.

We face more challenges and obstacles in the

road ahead for further industrial growth.

But we now have the confidence and aspiration

from the wisdom and lessons of past

experience. As President Park pointed out,

"We have now overcome the yokes of fear and

despair of the past, and found the courage

and confidence to achieve the goals we set

out to achieve."

We welcome cooperation with friendly advanced

countries on a continuing basis. We will do our best to share our own experience and will

seek the cooperation of small and

economically developing countries.

In the meantime, Korean measurement

capabilities will march on forward.

DISCUSSION :

Mr. Hamilton Herman (Industrial Consultant,

Potomac, Maryland):

It is tremendously obvious from what you

said, that Korea in the short time of 16

years, which even in industry is not a lot of

time, has made tremendous progress with its

technology and industry and the development

of the nation; because it has political

stability, a national purpose, and a plan for

development which changed as it progressed.

Korea had the right kind of leadership, it was able to get its educational system going

and to develop a skilled labor. It had help

from foreign investments, and in developing

exports it brought in income which helped to

continue the process of development. It had

assistance from outside the country through

U.S. AID and NBS and others, which helped

them to get the development plan rolling.

The original target for standards was to

provide a method of communication with other

nations, especially in international trade.

As Korea progressed and developed heavier

industry, it became necessary to apply these

standards to production methods within the

country. In spite of its impressive

progress, Korea has launched an aggressive

program to come up with an even stronger

capability for measurements, standards and

quality control. Korea is still moving,

still progressing. That is an extremely

interesting and progressive history of a successful development effort.

Mr. Jacob Blackburn (Director, Office of

Technology Policy and Space Affairs, U.S.

Department of State)

Could you name one element that was probably

the most important single element in your

rapid industrialization?

Dr. Choi:

Political stability and dedication of the

people, the will of the people. Hard work.

Thank you.

39
Robert S. Walleigh (Senior Adviser for

International Affairs, NBS):

I just returned from ten days in Korea, and I can attest to the fact that the people

there work very hard. If they have any

welfare in Korea, I didn't see any evidence

of it. I think that your work week is six

days, and I think you have a ten hour day for

the workers - it's a long day, anyway - and I think that the school children are also

motivated in the same way; they, too, have a long work day. I think that much of what has

happened in Korea can be attributed directly

to the ethic of the Korean people

themsel ves.

J. E. Owino-Okwero (Kenya Bureau of

Standards, Nairobi, Kenya):

How do you get the people to work hard?

Dr. Choi:

The Korean people work hard because they have

a sense of belonging, a sense of

achievement, united they achieve their goals,

a national purpose.

Dr. David S. Lieberman (University of

Illinois):

Is the system there the same as Japan, in

that they do not have antitrust laws, so that the government can encourage companies

working together, etc.?

Dr. Choi:

I think that we have more or less the same

kind of system that the Japanese have.

Joseph M. Lightman (U.S. Department of

Commerce)

Did you say that Korea has adopted the metric

system? How does this apply to exports of

United States products?

Dr. Choi

Yes. For exports, our manufacturers are producing according to the buyers'

specifications. It is a little bit

complicated. Sometimes they have to use the

metric system, sometimes another country's

system. For internal uses, we enforce the

metric system.

Andrew A. Canellas (Small Business

Administration, U.S. Department of

Commerce)

Considering the enormous increase in exports

that your country accomplished during that

sixteen year period, would you care to make

any comments concerning the role of the

development of small industry in Korea?

Dr. Choi:

I think that small and medium industry

contributed greatly to our export business.

About 40% of our total export volume is from

medium and small industry.

40
PAPER 2.2 - ON THE NATIONAL STANDARDS SYSTEM IN KOREA

Dong Ho Kim

Chief, Electric and Electronic Department

National Industrial Research Institute

Industrial Advancement Administration

Seoul , Korea

1 . DEVELOPMENT OF NATIONAL STANDARDS SYSTEM

The National Standards System in Korea has a long history, but the fundamentals of the

current system were conceived in the early

1960's. As the Republic of Korea Government

formulated the First Five Year Development

Plan (1962-1966), it began to concern itself

with improvement of the quality of industrial

products and productivity in order to achieve

the goals of that plan: industrial

development, replacement of imports with

local products, export expansion,

diversification of the industrial structure,

and protection of consumers.

In 1961, the government enacted the

Industrial Standardization Law to improve the

quality of industrial products, promote

interchangeabil ity of manufactured products,

and increase industrial efficiency. The

Bureau of Industrial Standards was organized,

with responsibility for the establishment of

Korean Industrial Standards. In addition, a KS-mark system was initiated to encourage

qual ity control

.

Also in 1961, the Republic of Korea

Government enacted the Weights and Measures

Law to establish and disseminate metrology

standards and support quality control and

industrial standardization efforts.

Consequently, the Bureau of Weights and

Measures within the Ministry of Commerce and

Industry was made responsible for matters

relating to weights and measures.

In 1967, the government passed the Industrial

Product Quality Control Law to improve the

quality of industrial products and protect

consumers. Under the Law, quality inspection

and quality marking were made mandatory for

certain classes of products.

In 1973, the government established the

Industrial Advancement Administration (IAA),

subordinate to the Ministry of Commerce and

Industry, to more effectively supervise

programs concerned with the quality control

41

of industrial products, industrial

standardization, inspection of export goods,

and protection of consumers. Concurrently,

the National Industrial Research Institute

was reorganized with responsibilities for the

quality control, testing, and inspection of

industrial products.

In 1975, the Korea Standards Research

Institute was established as an autonomous

organization to maintain national metrology

standards traceable to international

standards and promote improved measurement

capabilities throughout Korea. The

responsibility for matters relating to

national standards under the Weights and

Measures Law was delegated to that

organization by the Industrial Advancement

Administration.

The following diagram shows the pattern of

the present National Standards System in

Korea.

2. TECHNICAL AND FEASIBILITY STUDIES DONE

PRIOR TO THE ESTABLISHMENT OF PRESENT

NATIONAL STANDARDS SYSTEM (NSS) IN KOREA

2.1 1967: U.S. National Bureau of Standards

(NBS) Team Survey

An AID-financed NBS survey team, headed by

Dr. Forest Harris and including

Mr. Steffen Peiser and Dr. Ronald Eby,

recommended the strengthening of the NSS,

with prime responsibility for industrial

standards, metrology standards, and quality

control to be combined in one government

agency. At the time, however, other Korean

development needs appeared more urgent, and

no action was taken on the recommendations.

2.2 1972: NBS Team Survey

A second NBS survey was conducted in 1972,

with AID-funding. Members of the team

included Dr. Thomas D. Coyle, Dr. Eby and

Mr. Peiser.
National Industrial Standards System

f

ISO A

\ and j MIX^Tartici pation

_Supe_rvj sjon_

-j Korean Industrial

Standards Association

. Publ ication and

sale of KS

. Promotion of

- Appl ication of KS

- Company standards

- Qual ity control

- KS marking

. Consulting

. Training

Ministry of Commerce and

Industry Coordination

Industrial Advancement Administration

Bureau of Industrial Standards

. All industrial standards of

national importance

. International participation

(ISO-IEC)

. KS-mark administration

. Implementation of KS

Bureau of Extension Service

. Weights and measures

Other bureaus

. QC of industrial products

. Export inspection law

. Electrical safety control

T

National Industrial Research

Institute

Product testing and inspection

Designated agency for

KS-mark

QC of ind'l prods

Electrical safety

Ext. serv Training

Related research

Provincial Inspection and

Testing Organzations

Product testing and inspection

Weights and measures verification

Other Ministries

Other standards than

industrial ones A—

u

1

t

i

h

'

0

!

f

! zat

io

n

Traceabil ity

Korea Standards

Research Institute

Metrol ogy

. Primary standards

. National working

standards

. Verification of 2ry

standards

. Calibrations

. SRM distribution

. SRD information

Programs

. Measurements

. Test methods

. Industrial standards

. Approved projects

. Instrument design,

development, repair

and maintenance

. Training

I

i Traceabil ity

Secondary Level

Calibration Organizations

Dissemination of 2ry

standards traceable

to national standards

to measurement laboratories and industrial firms

42
The NBS team made recommendations for

improvement of numerous areas, among them

that the NSS strengthen its efforts in

metrology standards. In accordance with

other recommendations of the survey, the

nation established the IAA, and reorganized

the National Industrial Research Institute.

2.3 1973: IAA Survey, Report for

Establishment of a National

Standards and Testing System

The IAA survey had two basic purposes:

(1) to determine the extent and nature of

calibration activity for measurement devices

in government agencies and industrial firms

and (2) to determine the domestic demand for

SRM's. Although the response to

questionnaires was disappointing, the IAA was able to conclude that there was limited

understanding of the value of calibration,

that few firms actually prepared calibration

schedules or had their instruments

calibrated, and that few of the standards and

measurement instruments in use were Korean-made. There was also limited

understanding and use of SRM's. This survey

reinforced the IAA's conviction of the need

to establish a strong national metrology

standards system.

2.4 1974-1975: GE-TEMPO Feasibility Study

The purpose of this study, financed by AID

under the Second Feasibility Study Loan

(489-H-083) , was to survey the existing

national standards system and recommend the

creation of new organizations and/or suitable

restructuring of existing ones to produce a national standards system fully adequate to

support current and future economic

development plans.

As a result of its studies, the GE-TEMPO Team

made two principal recommendations:

(1) That the IAA assume a more aggressive technical role through closer

supervision and control to ensure the

effective functioning of the national

standards system.

(2) That a Korea Standards Research

Institute (K-SRI) be established as an autonomous organization to maintain national

metrology standards and promote improved

measurement capabilities throughout Korea.

Based on those recommendations, the Korean

Government has reorganized the existing

national standards system into the present

one to strengthen and spread industrial

standards, quality control, quality assurance

of industrial products, and capabilities for

accurate measurement.

3. STATUS OF KOREAN INDUSTRIAL STANDARDS

Korean Industrial Standards are classified

into 13 categories based on technical fields.

The number of the standards as of the end of

June 1978, was 5,684.

3.1 Procedures for Establishing Korean

Industrial Standards

(1) The standards are drafted by

government agencies, manufacturers, or consumers and submitted to the Bureau of

Standards, Industrial Advancement

Administration (IAA).

(2) The Bureau of Standards studies the

draft, comparing it to existing domestic and

international standards.

(3) The draft and relevant information are reviewed by a Divisional Committee of the

Council for Industrial Standardization.

(4) If necessary, the Divisional Committee

organizes a Technical Committee to study the

draft.

(5) The Bureau of Standards reviews the

final draft submitted by the Council for

Industrial Standardization and announces the new standard.

(6) Once established, industrial standards

are effective for three years, unless the

Bureau of Standards finds them obsolete.

Every three years, each standard is reviewed

by the Council for Industrial

Standardization.

3.2 Korean Standards Marking System

(KS-mark)

Under the KS marking system, the Bureau of

Standards of the IAA designates products that

will be eligible for KS-marks and invites

manufacturers to apply for authorization to use the KS-mark. Personnel from the IAA then

inspect the applicant's plant to assess
management, plant standards, quality control

procedures, measurement and testing

capabilities, and the product's compliance

with the pertinent Korean Industrial

Standard. If the IAA makes a favorable

assessment, the manufacturer is authorized to

affix the KS-mark on his products. Periodic

inspections of the product and plant

conditions are made to insure that the

manufacturer maintains satisfactory

performance; otherwise, his privilege is

withdrawn.

Products bearing KS-marks have several

advantages; they are given priority in

procurement by governmental agencies, and

they are exempted from quality inspections

required under the Industrial Quality Control

Law and export inspections required under the

Export Goods Inspection Law. Despite these

advantages, only 437 firms have obtained

permission to use KS-marks to date. The IAA

is considering several measures to increase

industrial participation in the program,

including the following:

- increasing the number of eligible products;

- making KS-marks mandatory for certain

classes of products, e.g., those required

by the defense sector and those involving

potential consumer hazards; and

- adding stronger incentives such as granting

KS-mark firms preferential treatment in the

allocation of foreign exchange for imports.

In addition, the IAA plans to strengthen

the program by more frequent inspection to

verify that KS-mark products actually

conform to standards.

4. NATIONAL METROLOGY STANDARDS SYSTEM

The national metrology standards system in

Korea, with the Korea Standards Research

Institute in particular at the head of that

system, is insuring measurement reliability

by carrying out the following primary

functions:

- disseminating these standards in useable

form to measurement laboratories and

industrial firms;

- maintaining these standards and instrument

accuracy through supervision of a national

calibration service, inspection activities,

and control over the measurement instrument

industry, and

- refining and upgrading national standards

through research, development, and advisory

activities.

With the utilization of Korean national

standards traceable to internationally

recognized standards with periodic

calibration to maintain that traceabil ity

,

the newly established metrology system is

expected to make a great contribution to a high percentage of accurate measurements,

decreased reliance by Korean laboratories and

firms on foreign facilities for the supply of

standards and calibration services, and an increasing number of measurement standards

developed or modified to satisfy Korean

needs.

DISCUSSION :

Mr. Joel Bernstein (U.S. National Academy of

Sciences)

With respect to Mr. Kim's estimate of the

actual impact of standards on quality control

work on Korean industry, I gathered from your

comments that the survey in 1974 suggested

that standards still were not being

effectively applied in a large part of Korean

industry. For about nine years up to that

point Korean exports had been expanding at

about 40% a year. This raises some question

as to whether standards and quality control are as important as we all tend to believe

they are for the expansion of exports, or whether there is some substitute mechanism

operating to deal with quality control

problems.

Mr. Kim:

As to quality control in 1974, there was quality consciousness in the enterprises and

the factories. At that time, understanding

of metrology was less well understood than

industrial quality control. In 1980, it is our goal to have industrial quality control

and metrology standards together, working

together.

Mr. Bernstein:

You are saying that you had effective quality

control without a good metrology system?

44
Mr. Kim: Mr. Kim:

At that time, there was less understanding of

the metrology standards than the industrial

quality system. However, without the

metrology standards, we cannot attain the

quality control level we want. Nowadays, as

a result of our campaigns, there is more understanding of the importance of metrology

standards.

Dr. Stephens (Georgia Institute of

Technology)

There are many levels of quality control that are practiced in a country. Certainly one of

the first levels of quality control is at the

in-factory company level. It is entirely

possible for various enterprises to be

carrying out programs and systems of

effective quality control in their own

individual companies long before the nation

as a whole gets its total infrastructure and

development prepared to spread that movement

to the country at large. I think probably

what was occurring in Korea during this

nine year period that you were mentioning is

that individual companies, with even the

multinational transfer of quality technology

into those companies through their home

offices, were building up the quality system

of individual goods that were prepared for

export during that period.

Mr. Bernstein:

Most of those companies were Korean

companies.

Dr. Stephens:

But many had overseas trading partners and/or were joint ventures or had licensing

arrangements, where through those joint

ventures and license arrangements there would

be a transfer of quality technology.

Mr. Bernstein:

Was the Korean export board able to

establish effective quality control without

the metrology system?

No, we cannot do it without the metrology

system, so we are now building such a system.

45
PAPER 2.3 - EXPERIENCE OF A MAJOR U.S. FIRM IN A NEWLY INDUSTRIALIZING COUNTRY

Rafael Coria

General Manager, Radiocommuni cations FM Operations

General Electric de Mexico

Mexico City, Mexico

The General Electric Company, which yesterday

celebrated its Centennial, established in

1896 in Mexico the Mexican General Electric

Co. -- which started its activities with 23

people -- as a sales outlet for GE products

imported from the United States. In 1930 the

Company initiated in Mexico the manufacture

of incandescent lamps in the City of

Monterrey, 600 miles north of Mexico City.

The manufacturing of home appliances was started in Mexico City in 1948.

The Company in Mexico is organized by

Departments, which are the prof it-and-loss

centers, and Operations, which are basically

the supporting functions. The current

product scope of General Electric of Mexico

includes flat irons, toasters, blenders,

fans, water coolers, evaporative air coolers,

washing machines (both the wringer type which

is practically obsolete here in the United

States and the automatic style),

refrigerators in several models, radios, TV

receivers (both monochrome and color), and

stereophonic consoles in the Consumer

Products Department. The Industrial Products

Department manufactures motors from

subf ractional , hermetic, fractional, to

integral; also distribution and power

transformers are manufactured in that

Department, and switchgear and control

boards. FM Mobile Radio equipment is made

also in Mexico. In the Lamp Department,

located as I mentioned earlier in the City of

Monterrey, incandescent lamps from the

standard domestic type to the miniature and

special types like infrareds are manufactured. Also, fluorescent, multivapor,

and high intensity discharge lamps are made.

The sales for the Company in Mexico amounted

to 2,400 million pesos in 1977, which is

equivalent to 104 million dollars, and the

overall sales figure for the General Electric

Co. worldwide was 17.5 billion dollars. The

number of employees in the Company in Mexico

is around 5,000 people, out of which 900 work

in the Lamp Department. General Electric Co.

has also about 2,000 Mexican employees in the

Border Zone "in bond" Plants.

The manufacture of lamps is a process that

has been highly mechanized since the very

beginning of the production of the electric

lamp. There is a high degree of local

integration, by that meaning that most of the

components of the lamps are manufactured in our Plant or at least in our country. Of

course, some of the most critical materials

have to be imported and will be so probably a long, long time in the future.

The main ingredients in lamps are glass and

tungsten. The glass is manufactured in the

Plant, starting from silica sand that has to

be imported because of the chemical

composition and short supply of the sands

available in Mexico, which are often

contaminated with some metals, mainly iron,

which do not render good glass. Mainly two

kinds of glass are manufactured in our Plant

in Mexico; one is known as lead glass, and

the other is soda glass. The soda glass is

used for the bulbs and external tubes for

the fluorescent lamps. The lead glass is

used in the manufacture of so-called mounts,

which are the parts on which the filament,

the support wires, and the lead wires are mounted, and this is really the working heart

of the lamp, which is then sealed into a glass bulb or tube depending on the kind of

lamp.

The glass ovens were built in the Plant in

Mexico following designs made by General

Electric in the United States in its

specialized glass plants. American engineers

and technicians were sent to Mexico a long

time ago, in order to supervise the

construction of these ovens and the starting

of operation of the glass making process. In the process of glass manufacture, as well as

in the remaining processes for lamp making,

the basic designs, engineering, and systems

come from the highly specialized parent

company departments in the U.S.

There are certain very critical measurements

that have to be made with some of the
components, let's say glass: the most

important properties of the lead and soda

glasses are their coefficients of expansion,

which are very critical since they will

determine the life of the lamp, to an extent,

and the yield in its production. There are three basic methods to measure the

coefficient of expansion of the glass, out of

which two are available in the Mexican Plant,

both of which involve the comparison of

coefficients of expansion of the sample glass

produced by us, versus those of a standard

glass provided to us by the GE Glass

Laboratory in Ohio.

The laboratory that we have in Monterrey

takes a sample of the glass being produced in our furnaces, and a small piece of it is

bonded to a similar piece of the standard

glass of known coefficient of expansion.

When both pieces are bonded together and

annealed, these are cut crosswise and

polished to a very high degree. Then under a polarizing microscope, the kind and magnitude

of the stresses at the boundary are determined. By means of this data as input,

a calculation can be made in order to

determine the coefficient of expansion of the

unknown sample.

There is another procedure which is just a rough approximation, which consists basically

in doing the same thing, that is, bonding

together two pieces of glass, one of known

properties and the other under test. The two

pieces together are heated and pulled in

order to produce a long fiber, which is

really a dual fiber of the two kinds of glass

bonded together. If there is any difference

in coefficient of expansion, in cooling down,

one of the two fibers will have a greater

pull than the other thus bending or flexing

more or less the composite fiber in one direction or the other, and by measuring the

angle of deflection an approximate idea of

the differences of coefficient of expansion

can be obtained. In addition, there is the

procedure of using a dilatometer.

In any event, regularly samples of the same glass that is tested in our laboratory are

sent to the glass laboratory that belongs to

GE in the United States, where much more accurate and extensive tests are performed,

and this provides us with a basis for a final

correction or control of our glass making

process; that is, to correct the formulation

of the loading of the furnaces, in order to

change the chemical composition of the glass

to modify accordingly the physical properties

of the same. In order to double check our

own findings for other tests, samples of the same batches are sent on a regular basis to

the Glass Laboratories up in Cleveland and/or

to other local materials testing

laboratories; this is particularly true of

such raw materials as the silica sand.

There are many other tests with the glass

products that are performed in our factory in

Monterrey, following technical data regarding

characteristics and procedures furnished to

us by General Electric Co. in the U.S.; the

same is true of highly specialized equipment

such as one piece of equipment known as the

polyscope, which is an optical inspection

device designed and built by Glass Technology

Laboratory of the Lamp Glass Department. It

provides a flexible system for examination

and/or measurement of glass parts and the

stresses within them.

As to the lamps proper, they are manufactured

in highly mechanized equipment also designed

and built by one of the components of the

General Electric Co., since this is a highly

specialized kind of equipment requiring

sometimes on the order of three years for

delivery. In these machines known

generically as "groups", first the "mount" is

made; such a mount is nothing else but the

working assembly of the lamps, i.e., the lead

glass portion on which the supporting wires

for the filament are inserted and also, which

is more critical, into which the lead wires

are introduced.

The lead wires are very critical for the

following reason: in the portion in which

they pass through the glass, a perfect seal

has to be accomplished, therefore in this

portion a special material, known as Dumet,

is used. This material is produced in the

Refractory Metal s Products Department of the

General Electric Co., again in Cleveland or nearby, and sold to us in the required

dimensions. Without boring you with the

details, I'll simply say that the most

important property of this material is that

it has practically the same coefficient of

47
expansion as the lead glass to which it is

sealed, thus avoiding as much as possible any

relative movement between glass and metal in

order to avoid micro-cracks that could

develop into leaks which would shorten

considerably the life of the lamp.

The dimensional characteristics of the lamps

are verified by means of optical comparators,

the polyscope itself and other kinds of

calipers, more or less of the standard type.

But some of the more critical or peculiar

characteristics of the lamps, such as luminous output and efficiency, and lamp

life, which are the ultimate parameters of

interest to the user, as well as some other

physical characteristics which have a definite influence on these last two

parameters (such as pressure of the inert gas

filling the bulb itself) — all of them are measured with equipment which to some extent

is more or less standard in the field and in some instances is designed and built also by

the General Electric Co. in the U.S. Among

the first, we have the integrator type of

photometers, which are calibrated by means of

standard lamps furnished for every specific

type of lamp and recalibrated periodically by

the Lighting Laboratories in Nela Park.

The performance and safety standards to which

these products must conform are basically of

three kinds, specifically:

1. Official standards written by the

Government -- Direccion General de Normas

-- which is an organization that draws on the

technical assistance of private enterprise

and the universities in order to arrive at

the most adequate standards of performance

and safety in the country.

2. In case of exports, the local

applicable standards.

3. The GE Co. standards of performance

which in some instances are even more stringent than some official standards.

I can very proudly say that we managed to

increase the quality level of our products to

the extent that they could be exported to

Germany, France, and, above all, to the

United States of America, complying with the

very, very stringent standards of quality of

General Electric Co. for this product in this

country.

How did we accomplish this? Just by

following a set of routine procedures? Well,

unfortunately, that is not enough. The

following of some routine measurements and

procedures sometimes tends to degenerate or to be slackened through the years, because

sometimes it is much easier to manufacture

with components slightly different in

dimensions or by slackening some of the

specifications, but always more or less

within the current standards of acceptance.

In my considered opinion, the most important

factor in accomplishing a truly competitive

quality, is instilling in the working

personnel quality consciousness and,

obviously, the awareness of the need for

accurate measurement of properties to detect

promptly any deviation that could occur from

the pre-set minimum standards of quality for

any of the parameters.

Of course, there is the need for a technological base of knowledge for the

technical people responsible for all these

measurements or preservation or even establishing of parameters. This is

relatively easily accomplished through

adequate training programs for qualified

technicians throughout the rank and file of

the organization, training which is

accomplished either by taking advantage of

the facilities of our parent Company in the

United States, or by sending specialists or experts to conduct training seminars on specific subjects in our premises, or by

designing and implementing our own training

and motivating programs, or by a combination

of the mentioned alternatives. So in the case of lamps as well as for the overall

Company, a training and development plan for

both managers and technical or other

employees was established.

From long experience we have come to

recognize that an essential ingredient in the

training and development of personnel is the

climate of an organization, the cluster of

concepts, attitudes, and patterns of behavior

that make up the organizational environment

within which people develop their potential

as managers or high caliber technicians. The

first step in the development of this

48
program, and one that has proved to be of

prime importance, was creating the right

climate. What that is and how it is created,

is in many ways difficult to communicate,

especially to seasoned employees who have

been accustomed to think in concrete and

measureable terms — units of production,

sales dollars, profit percentages, quality

standards and the like. This climate has to

be, first, one in which managers accept the

paramount importance of people, co-equal with

technology and financial resources, as a prime ingredient in organizational

accomplishment. Secondly, it has to be a climate that focuses the attention of

managers on performance, if they are going to

maximize the contribution of their

subordinates and their development. A

climate that generates this emphasis on people and their performance is one in which

all managers acknowledge that training and

development is the logical and tactical way

to enhance both individual and organizational

progress.

So, one of the first steps that were taken

to establish this kind of climate and to

support the effectiveness of a proper

training and development plan, was to adapt

the Quality Control Circle concept developed

in the 50s in Japan, by conducting a series

of courses on elementary statistics and

quality control techniques for machine

operators and supervisors, not to mention

higher level courses on essentially the same subjects for some of the managers and

engineers in the Plant. The courses for the

higher level were developed with the

assistance of the leading local University in

the City of Monterrey, that is Monterrey

Tech., and were, of course, a lengthy

program; and for the supervisors and machine

operators, these programs were conducted on

an adequately accessible basis. The

information we obtained at the time on Quality Control Circles was derived mainly

from papers in trade magazines such as Production Engineering, Quality Control, and

the like. Stated briefly, a Quality Control

Circle is a small group, no more than six

people, who meet together regularly to

analyze and offer suggestions to solve

quality problems.

According to J . M. Juran, the Japanese have

rejected the Western theory that quality

problems are due to worker indifference,

blunder, and sabotage. In the January 1967

issue of Industrial Quality Control, he

writes:

"The Q.C. Circle starts with a different set

of beliefs:

"(1) We really don't know the cause of our quality troubles; we don't even know

which are the main troubles.

"(2) Hence, we must teach people how to

analyze the trouble pattern in order to

identify the main troubles.

"(3) We must teach people how to list the

suspected causes of the main troubles and how

to discover which are the real causes.

"(4) We must help people to secure remedies for these real causes.

"(5) Finally, we must teach people how to

sustain these gains through modern control

methods ."

One of the most refreshing experiences in

this kind of program is the eagerness to

learn that is present in practically all of

the Mexican employees and workers. The

instant we announced an opened course, it was

full to its capacity, and in many occasions

there has been the need to organize

additional courses to take care of the

appl ications.

The training and development programs did

acquire such an importance that through the

recent years the number of man hours in courses was increasing until it reached a peak of more than 140,000 in 1975, after

which year a decline began to show due to

mainly two factors: on one hand, by that

time practically all of our managerial and

supervisory and professional population had

been exposed to the basic programs and even

some of the intermediate ones on management

and motivation, therefore, the need to

conduct very extensive courses decreased; and

the other factor has been, of course, the

devaluation and economic crisis that our

49
country experienced starting in

September 1976.

To conclude this description, I would like to

say that in my personal opinion, the three

principal factors key to the success of the

establishment and operation of a technological industry in our country, are:

1) The technological support from a very qualified -- scientifically and

technologically speaking -- multi-national

company.

2) The absolute conviction that the most

important resource in any given enterprise is

the Human Resource.

3) The adequate approach to the training

and development of that Human Resource, with

the proper motivation.

This is in line with what Professor

Gunnar Myrdal wrote in the September 1974

issue of Scientific American:

"For effective technology transfer it would

be better to send teachers to the

universities and schools in the

underdeveloped countries. Some of them would

at least get to understand what the practical

problems there really are. Those who come to

the developed countries for training should

not be students, least of all undergraduate

students, but people who are already

established at home, for example physicians

who want to learn a particular new technique

or engineers who are out to master a new industrial process."

DISCUSSION :

Mr. Hamilton Herman:

Here you have a major, sophisticated, United

States company setting up quite some time

back an expanding range of product

manufacturing in Mexico. In effect, they

took down there the know-how, the standards,

their patents, and their people to get the

businesses started. They trained the people

down there to run the business. We will all

recognize this as a pattern that has

occurred, whether it is U.S. companies, or

Italian, or French, or German, in many

countries. To a degree, that pattern has

been rejected in some countries where they

have wanted to nationalize these companies,

apparently under the feeling that they really

didn't have a. good partnership going. It is

particularly important to note that General

Electric placed great emphasis on the Human

Factor, and as Mr. Coria said, at the very

end, they had support from the parent

company, but then they got busy, and they

made sure that the people there understood

the business, participated in the business,

and had the purpose, that Dr. Choi referred

to in his talk. In this case, the purpose

apparently was as much generated by the

company as by the Government.

What was the relationship in standards and

quality control between the Company and the

Country?

Mr. Coria:

There is a standards writing organization in

my country. Fortunately, this organization

resorts to private enterprise and to the

universities -- the National Polytechnic

Institute, the Autonomous University of

Mexico -- for the preparation of these

standards. And the General Electric Company

of Mexico, as are many other technological

industries in my country, is very active,

participating in the different committees for

preparation of these standards. Also, the

local government Ministry is very conscious

of quality, and so they propose standards,

with particular relation to health and

safety. Inspectors come to our plants from

time to time, and check that the instruments

are properly calibrated. They take random

samples of particular products to check for

performance. This is a regular procedure,

and has been so for many years.

Dr. David Goldman (Acting Associate

Director for Long-Range Planning, National

Measurement Laboratory, NBS):

A couple of years ago I spent some time in

Mexico City and I toured the laboratories

of the National Telecommunications

Organization. I was very impressed with the

state of technology development practiced by

50
that Organization. It surprised me that they

trace their time and frequency standards back

to NBS-WWV in Boulder, Colorado. My question

is, what interaction does the sophisticated

company in the field of telecommunications

have vis-a-vis the National

Telecommunications Organization within the

country?

Mr. Coria:

Our relationship is that in order to be able

to offer to the public market our products,

we have to comply absolutely with all the

specifications established by this

Organization. So, we have to submit to them,

not only samples of the products we manufacture for testing in their very

complete laboratories, but also provide

documents known as "memorials", which are

technical descriptions of the performance,

and we make a commitment of the standards

that we promise to meet. So, every product

has to be tested and approved by a governmental agency, in this particular case

by the Telecommunications agency, in other

cases by another agency.

Dr. Goldman:

Do you find that that inhibits your

development? Does that fact that

everything that you do is type-tested in a governmental laboratory, does that prevent

you from doing things that you might like to

do?

Mr. Coria:

I don't really think so. Since this has been

a standard procedure for years, we know in

advance -- we had better know in advance —

that we will be subject to all of these

regulations. This works to the advantage of

the most serious industry, and it affords our country access to the markets of the United

States, so I would say that it is good for

us.

Mr. Robert S. Walleigh (NBS):

Are all of the employees of GE in Mexico now

Mexican, or are there still U.S. advisers?

Mr. Coria:

There are still some American employees, but

the number has decreased very

substantially. We have now most of the

employees in key positions being local

national s.

Mr. Joseph Lightman (Commerce Department):

We understand that in Mexico in order for an American company to license or transfer

technology to a Mexican firm, that agreement

has to be submitted to a registration

procedure and approved by the government in

order for it. to be enforced and payment to be

made. Also, you have to accompany your

normal trademark with an equivalent Mexican

version. Has this adversely affected your

operations down there?

o Has there been any

limitation or control or restriction with

respect to technology coming from GE

headquarters in Schenectady?

Mr. Coria:

In our particular case the trademark

requirement has not very adversely affected

us, because our local trademark has been

very, very popular in our country for many

years. And as a matter of fact, requirement

of the dual trademark helps us, because if

you don't have that proper dual trademark, it

could be that you have smuggled the appliance

in from the United States. I don't think

that restrictions on technology flow have

been really a very severe restriction, but

there are some limitations, particularly on the amount of money that the GE Company in

Mexico can pay to the Company in the United

States, and this is under control of the

National Council for Science and Technology.

We keep records and logs of all the

technological transfers, transactions, with

the Company in the United States, which are

at the disposition of visiting scientists of

that Counci 1

.

Dr. Khaled Y. Al-Khalaf (Saudi Arabia):

Was it a 100% U.S. firm in 1930, or was it a joint venture with some Mexican nationals?

51
Mr. Coria:

This company was for many years a 100%

U.S. -owned company. It was not until some ten years ago that part of the company was Mexicani zed , just a small part of it. Under

the current law, in order to establish a new foreign company in the country, there is a need for at least a ratio of 51% of the stock

owned by Mexicans, 49% by foreigners. But

that is not the case for General Electric.

Mr. Ridha Bouhalila (Tunisia):

What standards do you use when you export to

the Common Market countries?

Mr. Coria:

In the case of our exports to France and

Germany, we were meeting the specifications

of our specific customers: in the case of

Germany, that was Volkswagen; in the case of

France (speaking of lamps), that was the

Renault company. So I think, those were the

International Standards Organization

specifications

.

Dr. Lee Kum Tatt (Singapore):

How much do you have in the way of supporting

industries? Is the operation mainly

assembly? How much do you make locally?

Mr. Coria:

We happen to be very highly vertically

integrated. For instance, in the case of

flat irons, probably the only thing we buy

are some screws and packing materials. So, we are very, very heavily vertically

integrated, in our plants and also in our country. In many of our products we have

about 98% of local integration, to help the

development of local industry and because of

governmental restrictions. It applies in

electronics, too. Absolutely. Particularly

in entertainment consumer electronics. But

not that much in the communications field,

which requires more sophisticated or more

precise components.

52
PAPER 2.4 - ELECTRONICS METROLOGY IN ARGENTINA

Horacio F. Mazza

Chief, High Frequency Measurements and Calibration

Electronic Metrology Division

Instituto Nacional de Tecnologia Industrial ( INTI

)

Buenos Aires, Argentina

1. METROLOGY AND ELECTRONICS DEVELOPMENT

New and better products have been

manufactured with the advance of technology.

During the manufacturing process and after

finishing the products we now require a more

accurate and precise metrological control to assure meeting the specifications.

Electronics is one of the techniques which

has developed more in recent years for two

basic reasons -- the space programs and

military hardware and techniques. In addition, electronics has great influence

over other techniques like medical

technology, air navigation, communications,

and others. Our country has followed all the

process, however, naturally not in the same degree as highly developed countries did.

2. METROLOGY IN ARGENTINA

Until 1940, metrology in our country

contributed mainly to the field of

agricultural and cattle products. After the

Second World War development began in

Argentina of several types of heavy

industries, in particular the automobile

industry. The need for interchangeabil ity of

parts promoted applied metrology to assure

nominal values with certain tolerances. A

reference basis in metrology became

necessary, and in 1957 INTI was created. So our effort in this field began 20 years ago.

As industry grew and diversified, the Physics

Department of INTI divided into six groups,

dedicated to mechanical, electrical,

electronical, thermal, acoustical, and

optical measurements. To get experience,

INTI contacted other Institutes like PTB

(West Germany), NBS (USA) , NPL (England),

LICE (France), looking forward to

establishing technical agreements with that

purpose. Between 1968 and 1972 PTB hosted

technicians and professionals from INTI

during one year periods and delivered high

quality metrology equipment.

53

At the same time in 1972 a body of law was promulgated for metrological regulations, as

a result of the country's interest in its

growing industry. The law assigns INTI

several responsibilities, such as to maintain

and to transfer by means of its calibration

services the National Scales and Standards,

to create other calibrations centers, and to oversee the Argentine Legal Metrology

System.

3. METROLOGY IN THE ELECTRONICS DIVISION

OF INTI

The Electronics Division comprises three

groups with the following duties:

1 - Electronics design and microprocessors

group . It works in the design, construction and

testing of special equipments and the

introduction of automated measuring systems

based on microprocessor control.

2 - Industrial and fundamental metrology

group . Its objective is to assist with

calibration requirements, to establish the

most adequate measurement procedures, and to

keep the high frequency national standards

covering the range above rf.

3 - Radiointerference characterization and

measurement group . It studies problems caused by industrial

activity as far as radiointerference is

concerned and in particular that generated by

automobile ignition systems.

Starting from experiences obtained in

countries like West Germany and the USA over

a period of 70 years in Institutes like PTB

or NBS, we faced the problem of how to

establish a metrological system to contribute

to development of the national industry. The

decision was to transfer to industry the

technological advances through several types

of services (for instance, calibration

services), developing at the same time
fundamental metro! ogical techniques with the

purpose of maintaining and transferring the

national scales and standards.

4. ACTIVITIES OF THE INDUSTRIAL AND

FUNDAMENTAL METROLOGY GROUP

The group verifies and calibrates working

standard instruments to be used in industry

in production process or quality control.

Since 1975, it has calibrated electronic

instruments to be used in the maintenance of

airnavigation equipments, because F.A.A.

(Federal Aviation Administration) demands

that all airnavigation enterprises that fly over the USA must have their instruments

under metrological control. At the same

time, the Airplanes and Technical Department

of the Argentina Air Force demands that all

factories (about 15) that operate under its

jurisdiction keep their instruments

calibrated. In order to illustrate the rate

of increase of our activities, about 300

instruments were calibrated during 1977 as compared with 100 instruments only three

years earlier.

Also, this group controls communication

equipment jointly with the Secretary of

Communications. The latter has recently

established a national register for

telecommunication equipment to certify

national and foreign prototypes and has

requested INTI collaboration to develop this

line of work.

This wide range of activity promotes the

"Argentine System of Calibration" project,

that covers not only electronics but other

fields, too, that seeks to decentralize

calibration activities, promoting the

development of other calibration laboratories

all over the country. Agreements were established with the Faculty of Engineering

at the University of Rosario in the province

of Santa Fe as well as with the Faculty of

Engineering at the University of Cordoba in

the province of Cordoba, to attend to local

metrological needs and to certify

instruments.

One of the most important duties of the

Electronics Metrological Group is to develop

and to keep the national standards. For that reason it was decided as a first step to

54

obtain commercial standards with certificates

of calibration from well recognized

institutes and as a second step to attempt

their development in our own laboratories.

This criterion was applied to voltage,

attenuation, impedance, power and frequency.

5. ACTIVITIES OF THE RADIOINTERFERENCE

MEASUREMENT GROUP

This group began to work about a year and a half ago. Some neighborhoods in

Buenos Aires city have too many difficulties

in the establishing communications due to

the presence of industrial radiointerference.

As a consequence INTI was assigned to study

this problem and to attempt to solve it.

Almost at the same time the automobile

factories found that many of the countries to

which they export Argentine made cars had

regulations limiting the amount of

radiointerference due to ignition systems.

As a consequence they requested INTI to study

and to solve the problem. This line of work

is now being developed jointly with the

Secretary of Communications, and having

concluded a first stage of measurements, we

are presently evaluating results.

This is a synthesis of our work and our

projects in the Electronics Metrological

Laboratory in INTI. We intend to establish a strong metrological basis to have a powerful

i ndustry.
PAPER 2.5 - PROGRAMS OF IPT

Admiral Jose de Castro Waeny

Measurement Assurance Officer

Instituto de Pesquisos Tecnologicas (IPT)

Sao Paulo, Brazil

1. IPT AND INDUSTRIAL QUALITY CONTROL

My topic is what IPT is doing and will

continue to do for quality control and the

improvement of production. These activities

fall into five main areas:

(1) Training.

(2) MAPs (Measurement Assurance

Programs)

(3) SRMs (Standard Reference Materials).

(4) Collaborative programs.

(5) Quality assessment.

From the items listed, you can be sure that

the NBS influence was paramount. And this

is true. We just are finishing at the end of

this month a long project with NBS.

Training is quite straightforward. It is not

academic training. It is industrial

training, because IPT works for and with

industry. So our training takes people from

industry through some specific problems.

Measurement assurance programs (MAPs) are a new area of action that we are trying to

develop, and that is my job. These programs

are being developed at home, inside IPT,

before being offered as a service to other

institutions.

Standard reference materials (SRMs) we are

just beginning to produce. We started out a program on metallic samples -- steels and

brass and bronzes. We plan to go on with

other materials. We are producing SRM's, and

have now about 15 types which are being sold

commercially to all Brazil. In this program

we have 20-30 laboratories analyzing our samples and getting harmonization of data.

NBS has taken part in some analyses, also

BIPM in Paris. We would like to have more

participants in our program, so that we can make a general standardization in this area.

We have a number of collaborative programs in

other areas than standard reference

materials. They are in the area of material

testing. We have eight different programs —

55

cement, aggregates, paper and cellulose,

rubber, plastics, etc. -- and we have about

100 laboratories taking part in these

programs. This work is quite interesting and

quite useful. People are learning a lot, and we are pushing these programs ahead, for the

advancement of our Institute and of Brazil.

IPT is taking the first steps in a quality

assessment program, whereby IPT is going to

assist industry to evaluate the products from

the design to the selling stages. We start

out with the selling specifications, then we

go to recommendations on design, and

standards, and eventually to the entire

production process. This program is quite

new. We are just in the first stages to see

if we can find some customers for this

approach, since this will be a very expensive

program. It seems that it will be very

useful, so we are just waiting anxiously to

see how industry will reply to it.

I would say of the present programs that

industry in Brazil has a good confidence in

IPT. IPT has been serving industry for 78

years. They trust IPT, and if they don't

trust IPT, or IPT makes too many mistakes,

then we are out of business.

2. IPT -- CHALLENGES AND OPPORTUNITIES

A brief background discussion is necessary to

understand the reasons for the title of

this section. The situation is uncommon,

perhaps unique, and it may be opportune to

provide a description of some of our experiences. A good starting point is the

fact that IPT has never been an official

agency; this means that IPT cannot enforce

anything. Our institution always has worked

as a support to industry, and our services

are looked for on a basis of excellence. If

there is some demand for specific kinds of

tests, IPT will equip itself to perform them.

Probably no other institution can do a new or unusual job as easily as IPT, because the

Institute is always looking for new areas of

action.
The history of IPT, with a long record of

technical excellence, brings with it some responsibilities. It is fully realized that

IPT must permanently be making efforts for

improvement. This is the reason why we have

"challenges and opportunities." Against

this background I will describe in more

detail the IPT measurement assurance program.

Some years ago it was decided to expand the

overall capabilities of IPT, and NBS was looked to as a source for guidance [1]. An

agreement was signed starting a very

ambitious program. Incisive comments made by

Dr. Huntoon [2] led to the decision to open

up a new type of service.

The IPT basic output for industry is test

certificates, more than 20,000 per year. The

tests range from routine jobs to rather

difficult problems. And the results are always obtained by some kind of measurement.

The question comes up at once: what kind of

confidence do the results on the

certificates deserve? The problem is very

important, being official agency or not.

The first step was the analysis of

measurements made by IPT to try to group

them. A decision was reached to create five

central measurement stations. These stations

are for measurements of length, mass, force,

thermodynamic, and electrical quantities.

The decision is logical because many

technical divisions of IPT work with one or more of these physical values and the test

results must be certified. The need to

establish traceability to our internal

central stations is then obvious. And our

central stations can comply with official

requirements for all legal aspects.

ITP has previously placed efforts on measurement assurance. Equipment was and

continues to be calibrated, following

approved routines. What is quite new and is

not operative yet is the new measurement

assurance concept, to guarantee compatibility

of all measurements. A follow up is

mandatory to guarantee that results are maintained, and this situation is also

unique. A central station cannot reach IPT

as a whole. A centralized coordination is

necessary, to reach all divisions and

eventually enforce some corrective steps,

unpleasant as they might be. The follow up

will be in the form of randomly programmed

56

inspections [4]. As this program is just

starting, no specific rules or procedures are available.

All the steps already taken or to be adopted

are internal to the institution and have a common objective. The overall objective is

to guarantee that certificates are meaningful, as regards accuracy and

precision. And within the institution some additional steps are now obvious. Their

usefulness could at one time be doubtful , but now their adoption seems logical.

The first step is a certificate auditing

program, and centralization is again

functionally quite important. The best point

to check a system is in the output,

certificates in our case. The auditing is to

be random, and must reach all areas to be

effective.

The second step is that requests for

additional capability can be analyzed as a whole. In each case the request can be

matched against the respective central

station, and a more efficient decision can be

reached. A central coordinator, even though

not executive, may prove useful.

The only connection with others, so far, has

been through certificates. If IPT adopts a language, it must be sure to have it

understood, because it cannot be enforced.

Also, legally mandatory, it will be necessary

to check against a national standard, if

there is one.

As IPT works in close contact with industry,

a natural development is the sponsorship of

collaborative programs. This is also a new

area closely related to measurement

assurance. Such programs are important

because they represent to some degree an extension of the national measurement system.

IPT has nine programs already going on with

about 200 collaborating laboratories, and a new set of questions comes up.

How to evaluate test results? What test

methodology to adopt? How to include

deviations, and so on. A program coordinator

is quite helpful but is not the solution.

His action is important towards the

establishment of a common procedure and

1 anguage.
The collaborative programs have an arduous

path, because it is easy to misunderstand the

objectives. It is quite convenient to have

information available so it can be handed out

during meetings. Information in foreign

languages is helpful, but does not work very

well. This means that additional work must

be done, namely the translation of the

information. And it seems necessary to

emphasize that a mere translation is not

sufficient. Information must be understood

and complemented before the translation, a job to be handled by the program

coordi nator.

This is again a unique situation, because IPT

is sponsoring these collaborative programs.

This means that the pioneer effort must set

the path and that all details of each program

must be worked out by IPT. This includes the

written procedures and methodology. It seems

best to indicate that each case is an individual case by itself, requiring specific

care, because on a first time job always

happen first time errors and problems. Some

facts may have become obvious by now, and it seems appropriate to mention them.

The first fact is that reliable measurements

are not the results of laws. They come out

of hard and conscious labor. A favorable set

of laws is helpful, as it brings out a receptivity for these problems.

Secondly, reliable measurements do not come

out by themselves. A reliable measurement

must be used and is the outcome of some kind

of social pressure. The need for them can be

anticipated but not artificially created.

Also, as a society progresses, more and more

reliable measurements are necessary, even though not mandatory or legal.

The two facts above have a direct bearing on quality assessment and quality control.

Without a need and without reliable

measurements, efforts in this area are wasted. IPT realizes that actual conditions

are favorable to improvement in this area,

again increasing the challenges and

opportunities for action.

Last, but equally important, is the fact that

such programs must be delivered to industry,

"sold", or reach the potential users, both

inside and outside the institution. This

means that the technical information must be

easily available, so as not to discourage

interested persons. And the source of the

information must be able to explain and answer questions from persons with different

backgrounds. Translation alone is

unsatisfactory. There is a saying in my

country, which in well educated terms says -- that if you do not know what you are doing,

you are lost.

References

[1] Florez, R. G., The state of Sao Paulo

Program for Science and Technology - PROCET (Programa Ciencia e Tecnologia) -

a brief description - Report to AID on

an NBS/AID Workshop on Standardization

and Measurement Services NBS Publication

NBSIR 76-1152.

[2] Huntoon, R. D., Needs and opportunities

in metrology of the Instituto de

Pesquisas Tecnologicas for effective

support of Brazilian industry (Report to

be published by NBS).

[3] Huntoon, R. D., Standard reference

materials and meaningful measurements:

an overview - SRMs and meaningful

measurements (NBS Special Publication

408).

[4] Cox, D. R., Planning of Experiments

(John Wiley and Sons, New York, 1958).

57
PAPER 2.6 - STANDARDIZATION AND MEASUREMENT SERVICES IN INDONESIA

Gandhi, M. E. E., Secretary

Yayasan Dana Normal isasi Indonesia (YDNI)

Bandung, Indonesia

I. CURRENT STATUS OF STANDARDIZATION AND

MEASUREMENT SERVICES IN INDONESIA

The standardization and measurement services

in Indonesia, which lack a central guiding

system, are still unconcentrated efforts.

Mentioned below are the following

developments.

1. STANDARDIZATION

2. MEASUREMENT AND CALIBRATION

Indonesia has adopted the metric system of

measurement, by a weights and measures law

which was issued in 1949.

Measurement and calibration services are given by the following organizations:

National Institute for Instrumentation:

engineering metrology

A significant post-war development, the

Standardization Institute "Stichting

Normal i satieraad" , was founded in

December 1948. It was modified into the

"Foundation for Indonesian Standards Fund"

(YDNI) in April 1954. This is a private

organization, installed by the Association of

Indonesian Engineers, which has also been

admitted as the Indonesian member of ISO and

IEC.

In order to meet the urgent requirements of

economic development, several departmental

and non-departmental organizations have been

engaged in standardization activities:

Dept. of Health: Pharmaceuticals and

food stuffs

Dept. of Industry: Industrial products

Dept. of Public Works: Building codes

Dept. of Trade: Export commodities

National Institute of Basic standards and

Science: development of

national standardization system.

A law of commodities enacted in 1961

empowered the government to impose compulsory

quality control on manufactured goods,

commodities for export as well as imported

articles. However, this law cannot be put

into effect, since a statutory decree as a means for deliberation and execution is

lacking.

National Atomic Agency: nuclear

measurements

Metal Industries Development Center

(MIDC): engineering metrology

Directorate of Metrology:

weights and measures

Electric Power Research Institute:

electricity

Telecommunication Research Laboratory:

time and frequency

Material Testing Institute:

force and pressure

Traceability to international standards is

maintained through:

Directorate of Metrology:

weights and measures

National Atomic Agency:

nuclear measurements

MIDC (through Belgium):

length and angle

Electric Power Research Institute (throug

Japan): voltage and resistance.
3. NATURE OF STANDARDS

The use of standards formulated by YDNI and

the other organizations mentioned above is

entirely voluntary, except in those instances

when the reputation of the country is

endangered through unsatisfactory quality or where the risk to public health and safety

can cause the standards to be declared

compulsory, e.g.:

• Crumb rubber for export

• Essential oils

• Pharmaceuticals

• Certain food stuffs

4. COMPANY STANDARDS

The benefits of standardization can be

realized only when the standards are put

into practice at the company or in-plant

level. The Department of Industry has taken

initiative steps towards the promotion of

in-plant standards activities. Technical

assistance from the Federal Republic of

Germany has been received to help the

promotion of in-plant standardization

activities

5. NATIONAL SYSTEM FOR STANDARDIZATION AND

MEASUREMENT SERVICES

A National Survey on standardization and

measurements was conducted and sponsored by

the National Institute of Science and NBS in

1977. The following developments have taken

place since then:

a. An agreement between YDNI and the

National Institute of Science has been signed

to expedite the establishment of the national

system for standardization. Mentioned in the

agreement is that:

- The joint management of international

affairs (ISO and IEC membership) should cope

with financial and official problems.

- Establishment of LIPI - YDNI

Secretariat in Jakarta.

b. The preparatory committee for the

establishment of a national standardization

system has been set up and will be instituted

by the Decree of the State Minister for

Research and Technology. It is envisaged

that under this system coordination and

programming will be centralized, whereas the

execution of formulation and implementation

of a standard will be conducted by the

organization and department concerned.

c. The National Calibration Committee has

been set up by the Decree of the Chairman of

the National Institute of Science. The

members of the committee consist of

representatives from, e.g.,

Department of Defence

Department of Industry

Department of Energy

Department of Communication

Department of Trade

National Atomic Agency

National Institute of Science

d. A Network of Calibration Services will

be established in the near future which will

include nine Calibration Centers dealing with

weights and measures, electricity, nuclear

quantities, time and frequency, and

engineering metrology.

Acknowl edgement :

I wish to thank and express my sincere and

grateful appreciation to the Government of

the USA and the National Bureau of Standards

for having given me the opportunity of

attending the NBS Workshop on Standardization

and Measurement Services. It will certainly

be beneficial in the improvement of

standardization in my country. Thank you.

II. THE STANDARD PROBLEM FOR DEVELOPING

COUNTRIES

We are in the standards environment. We are together, among people from different

fields of work, but all closely connected to

standards. If we look at the results, or the

Proceedings, of the 1977 NBS/AID Seminar on Standardization in Support of Development, I think we can see the standard problem for

developing countries: problems of education;

problems of promotion of awareness or

59
consciousness; problems of facilities; and

problems of the system for development.

I am here to give a small contribution to the

United States as background data for the

Science and Technology Conference of the

United Nations. However, please note that

whatever I say on this occasion is only my

personal opinion, and does not necessarily

represent the views of my Government, of

either Government.

I would like to prove to you that the

standard problem for developing countries

really exists, especially in Indonesia. I would like to share only one specific

experience and problem area concerning

science and technology standards and

measurement services.

It is not questionable, perhaps, that science

and technology for both developing and

developed countries are very important. In

Indonesia, a new minister has been installed

in the present cabinet, the State Minister

for Science and Technology. His task is to

coordinate the activities of research and

science and technology, to make it a concerted effort to support our development.

Recently, about a month ago, a new agency was established, the Agency for Assessment and

Application of Technology. It is headed by

the Minister himself, the Minister for

Science and Technology. I think that should

show you the importance that science and

technology organization has for our development.

The Minister has a new definition for

"technology", which is, "technology is any

activity that supports development, and, in

short, technology is skill."

The Minister's first step after his

appointment has been setting up five National

Committees, namely, the National Committee for

Basic Human Needs; the National Committee for

Resources and Energy; the National Committee

for Industrialization; the National Committee

for National Security and Defense; and the

National Committee for Sociology, Economics,

and Philosophy. The tasks of these

Committees are to coordinate, evaluate, and

monitor research activities conducted in four

different national sectors, that is, the

60

departmental research institutes,

non-departmental research institutes,

universities, and private organizations.

Also, these Committees are to formulate the

national program for research and technology

to support the five year development plan.

We have already launched the national program

for standardization, calibration,

instrumentation, and metrology. We call it

the SKIM program. That is also coordinated

by the Minister for Science and Technology.

But we don't have a National Institute for

Standardization, and we don't have a National

Measurement Laboratory, like NBS, yet. All

the activities are still scattered among

several institutes belonging to different

departments

.

Now, I want to give you a specific problem,

faced by one of the institutes in Indonesia,

just to prove to you that the standard

problem faced by a developing country does

really exist.

It is a problem of experience in calibration

or measurements of testing machines. I have

been working in a materials testing institute

for ten years. The problem is, that we do

have the apparatus for calibration of testing

machines, but the apparatus that we have is more or less outdated. We have proving

rings, certified by NBS in 1937, and never calibrated since then. But we have to do the

testing, we have to do the measurements, we have to do the calibrations, just to have a single or a uniform measurement results

pattern for any testing done in Indonesia.

So the problem is, how can we have true

traceability to national standards?

The second question or issue that I would

like to raise, is that, being limited in

economic and skilled manpower resources, we have been faced with appropriate problems in

other areas, for example, priority setting,

appropriate technology, and information

systems. During our Workshop this year we were shown the NBS data base and information

acquisition network, which to my thinking,

will accelerate and economize research and

development effort. Based on the situation

in my country, and my findings during my

short visit in NBS, I would like to take this

opportunity to raise a question. You possess

CO!

it)|

If
an abundant source of information on research

and technology, nicely classified and

disseminated, using the latest sophisticated

technology, as has been demonstrated to us. This will really accelerate the development

of technology, and if the information can also be made available to us, it will greatly

help us in economizing our effort, as for

example, in reducing unnecessary duplication

of work, and in directing the course of

action.

If I understood correctly, you have been

doing mathematical modelling in the

Measurement Assurance Program (MAP), taking

into consideration the actual situation, to

predict the design of a MAP program. Perhaps

this could be extended to the problem of

technical cooperation between the United

States and developing countries, by designing

a mathematical model, the same way as has

been done in the MAP program, so that we could find the most suitable system of

technical cooperation.

I will conclude my contribution by asking you

point-blank, is it possible for us to acquire

information from your data base and network,

and how? I think that is the main point to

raise in this presentation.

DISCUSSION :

Dr. Sangster (Seminar Coordinator and Editor)

(note added during editing):

The NBS data base and network are accessible

by all. The ease, speed, and costs of access depend upon the specific information

desired. Much is available without charge.

Some is accessible only on a cost-reimbursable basis. Inquiries from

abroad should be directed to the NBS Office

of International Relations.

61
PAPER 2.7 - PRESENT STATUS OF ELECTRONIC MEASUREMENT STANDARDS AND CALIBRATION SERVICES

IN INDIA

K. Chandra

Deputy Director

National Physical Laboratory

New Del hi , India

In India, electronics is playing a very vital

role in areas such as telecommunications,

broadcasting, navigation, space research,

defence, industrial process control, consumer

electronics, etc. The electronic industry is now on the point of take-off, and a variety

of professional grade electronic products

including sophisticated instruments/equipment

and systems are being commercially produced

in the country. Our annual production is in

the range of $500 million, with a 15-20%

annual growth rate. To meet the growing

demand of precision electronic measurements

for the purpose of calibration of instruments

as well as quality control, reliability

evaluation, and i nterchangeabil ity of

products, a national system of electronic

measurement standards, calibration, and

testing has evolved over the years. Several

organizations, both Government and

non-Government, are engaged in this task.

The documentary standards or specifications

are prepared by the Indian Standards

Institution and the Electronics Components

Standardization Organization, a Defence

Organization. The realization, maintenance,

and up-dating of the national measurement

standards for all physical parameters

including electronics, is the responsibility

of the National Physical Laboratory,

New Delhi, under the Council of Scientific

and Industrial Research. The organizations

engaged in the electronic measurement

standards, calibration, and testing have been

grouped into three echelons described below:

Echelon I

This is the apex level providing the highest

accuracy of measurement. The National

Physical Laboratory, New Delhi, is the

custodian of Echelon I Standards (National

and Transfer Standards) and also provides the

calibration services to Echelon II

1 aboratori es/centres

.

Echelon II

Echelon II Measurement Standards and

Calibration Services are offered by four

Regional Calibration Centres and Defence

Calibration Laboratories. The standards

maintained by these laboratories are classified as 'Reference' and 'Secondary

Standards' and are periodically calibrated

against Echelon I Standards. Apart from

periodic calibration services to Echelon III

laboratories/centres, Echelon II laboratories

also undertake specialized testing against

Indian Specifications and Joint Services

Specifications and reliability evaluation

under various environmental conditions.

Echelon III

Echelon III Calibration Standards are maintained by the State Test and Development

Laboratories, Test Laboratories of Indian

Standards Institution, recognized research

laboratories/academic institutions, and some public sector industries. These laboratories

undertake calibration of test instruments of

industries and educational institutions and

also provide test facilities for evaluation

of industrial products against Indian

Standards Specifications.

The international traceability of our

national measurement standards has been

established through periodic calibration by

the International Bureau of Weights and

Measures and some measurement laboratories of

other countries. The present status of the

Echelon I Measurement Standards of some of

the electrical and electronic parameters at

the National Physical Laboratory, New Delhi,

is summarized in the following table.

62
Table

Parameter Techniques Used Accuracy

1. Time and Portable Cs Atomic 7 parts

Frequency Beam Standards in 10 12

2. D.C. Bank of Standard 1 part in

Voltage Cadmium Cells main- 10

tained at 20 oC ± 0.001°C

4. A.C. and L.F. Voltage Standards based on multi-junction thermal convertors.

5. H.F. Voltage standards based on

1 Bol ovac

1 .

6. H.F. and microwave power standard based

on dry load calorimeter and

micro-cal or i meters.

7. A.C. ratio based on Inductive Voltage

Divider.

3. D.C.

Resistance

4. Capacitance

5. Inductance

6. A.C. and

L.F. Power

7. A.C. and

L.F. Ratio

8. H.F.

Voltage

Bank of One Ohm

Standard Resistors

maintained at

20°C ± 0.001°C

1 part in

106

Standard Capacitors 2 parts in

6

9. H.F.

Attenuation

10. H.F. and

Microwave

Power

10

Standard Inductors 1 part in

10*

Non-portable .05% to .1%

El ectro-dynamometers

and Electronic Power

and Energy Meters

Inductive Voltage 5 parts in

Divider 108

Thermal Convertors .05% to 3%

and (depending on Micropotentiometers the voltage

frequency

range)

Waveguide beyond .005 dB/10 dB

cut-off (30 MHz)

Calibrated Power 1% to 2%

Meters

8. H.F. Attenuation Standard based on W.B.C.O. (.001 dB/10 dB).

We have been quite lucky, getting assistance

from various international organizations,

such as NBS, PTB, NPL-Teddington, and VNIIM

of exchange of information, supplies, in

terms of equipment, and training of manpower.

Our strongest asset is our trained manpower.

We have the third largest technically trained

manpower in the world today, so there is no problem at all in terms of trained people,

both at the upper level and at the middle

1 evel

Some of the problems which we are facing at

present are that precision measuring

instruments are not yet being manufactured in

the country, so we have to depend mostly on imports; and that, because of the long

distances involved, we have the problem of

transportation of the measurement standards

after calibration. Also, there is a lack of

consciousness in the industry towards

precision measurements. We are working on a national calibration service, so that we can interlink all the industries, the testing

laboratories, the Echelon II calibration

centers, and the National Physical

Laboratory, in a well -organized national

system.

Some of the areas in which work is already in

progress at N.P.L. to up-date the

abovementioned standards, are listed below:

1. Josephson Voltage Standard.

2. Calculable Capacitor.

3. Capacitance to Inductance transfer

techniques.

As I mentioned, our electronics production is

about £500 million per year, but it is

mostly for in-country consumption. We export

very little, only of the order of 10%. We

would like to export more and more. We have

established the Export Promotion Zone near

Bombay, where we invite both Indian and

foreign companies to establish production

units/assembly plants exclusively for

export.
DISCUSSION:

Mr. Hamilton Herman:

Do you get adequate, consistent financial

support from the Government? Are each of you

able to maintain a reasonably consistent,

independent position, independent of politics?

Dr. Chandra:

During the last three to five years,

emphasis on quality control through

standardization and metrology has greatly

increased. Although more funds are being

made available for these activities, they are

still not quite adequate. We are trying to

get more financial support through various

Government agencies.

Mr. Gandhi:

We have been faced by a bigger problem than

standardization and quality control. It is

the needs of human beings--food, clothing. I think we haven't had enough support from the

Government, but as I have told you, recently,

a new Minister has been installed, a Minister

for Science and Technology, and this new Minister has the task to coordinate and to

evaluate our program in science and

technology. This includes also the program

for standardization and quality control. So

I think that by having the say from the new Minister to the National Planning Board, I do

believe that in the near future more support

will be given by the Government.

Mr. Mazza:

Really, we have some problems, but I think

that our country is growing, in all senses.

We have created some consciousness about

quality control and metrology, and I think

that in maybe not so long a time we can create a good industry.

64
SECTION 3 - NATIONAL AND INTERNATIONAL STANDARDS

THAT MUST BE SATISFIED BY INDUSTRIALIZING NATIONS

Chairman: Dr. Khaled Y. Al-Khalaf, Director General, Saudi Arabian Standards Organization

PAPER 3.1 - STANDARDIZATION IN THE DEVELOPING NATIONS

Abdulla Fadlalla

Acting Director General

Arab Organization for Standardization and Metrology

Cairo, Egypt

1. ADVANTAGES OF STANDARDIZATION

1.1 Planning of the attainment of a given

objective need not be repeated each time.

1.2 The concepts in the minds of the parties

concerned are given definite meanings.

1.3 More economic use is made of human

effort, material and time; hence, there is

lower cost of supply and distribution of

goods and services.

1 .4 The variety of means necessary to cover

a given range of needs is minimized.

1.5 Interchangeabil ity is achieved of

component parts, assemblies and complete

products, making possible long-run, highly

repetitive manufacturing, facilitating repair

and replacement.

1.6 Easier training or retraining of

personnel, by means of instruction sheets,

manuals, etc., is facilitated.

1.7 Confusion and conflict between

individuals and groups are eliminated,

resulting in their more harmonious and

effective working together.

1.8 A rational basis of understanding in

contracts is created.

1.9 Fair dealing in trade is promoted.

2. THE STANDARDS PICTURE (NATIONAL,

REGIONAL, AND INTERNATIONAL)

2.1 National Standards

The rate of development all over the world

and the keenness of international trade

clearly show that the economic development of

a country must have as its constant companion

machinery for ensuring high standards of

quality and accuracy for both its indigenous

products and imported equipment and

commodities. Such machinery can help the

country to hold its home market and to earn a fair share of the export market in order to

bring in much of the foreign exchange needed

for its further development. This is

achieved through national standardization,

which is the most important tool for

promoting industrialization and for

supporting economic progress.

When national standardization starts by the

adoption of foreign or international

standards, some developing countries may find

it difficult to apply such standards without

modifying and adapting them in the light of

their existing facilities and actual needs.

This varies with the actual stage of development, the extent of economic, scientific,

and industrial progress, and the relations

with other countries as regards imports and

exports. Nowadays, many developing countries

have their own national standards.

2 .2 International Organizations

a) International Organization for

Standardization (ISO). The objective

of this organization is the development of

standardization in the world in order to

facilitate the exchange of merchandise

between countries and to realize mutual

understanding in the intellectual,

scientific, technical, and economic fields.

b) International El ectrotechnical

Commission (IEC). The objective of this

Commission is to facilitate the

coordination and unification of the national

standards in the el ectrotechnical fields and
also to coordinate the activities of other

organizations in this field. Its mission is

to establish technical recommendations to ensure the coordination of standardization on the national and regional scale.

2.3 The Need for Standardization at the

Regional Level

Regional standardization is an intermediate

stage between national standards and

international standards. It makes no claim

to replace either type of standard, but

rather bridges the gap in the application of

international standardization to the needs

and possiblities of countries in a given

area, harmonizing the standards of those

countries and fitting them to the

circumstances peculiar to the area. The

special function of regional bodies enables

them to speed up the internationalization of

standards, taking into account the limits and

reqirements which hamper immediate

implementation of international standards

within national boundaries or within the

regional boundaries of a group of countries.

The vast difference between their level of

development and that of the industrially

advanced countries, as well as the

inequalities between countries in the same

zone, has created a need for bodies which, by

following the procedures applied in

international standardization, will be able

to adopt at an intermediate level standards

that are appropriate for regional exchange.

This task of the regional bodies does not

preclude the possibility of adopting

international standards on certain subjects

or which produce certain effects, so long as the interests of national and regional

development are borne in mind.

Regional standardization has certain specific

Objectives, inter alia:

a) To promote national standardization in

all countries of the region concerned, giving

due consideration to the special

circumstances prevailing therein, and to

endeavour to obtain information, training and

assistance for those countries.

b) To coordinate national standardization

in the countries of the region so as to

harmonize it progressively in order to

facilitate exchanges and integration at the

regional level

.

66

c) To contribute to the establishment of

national and regional programmes for the

creation and transfer of technology.

d) To facilitate quality control in the

external trade of the region.

2 .4 Regional Organizations

2.4.1 European Organizations

The International Commission on Rules for the

Approval of Electrical Equipment (CEE) is

composed of organizations in European

countries, which, in the interest of the

public, especially with respect to safety,

issue rules and regulations for electrical

equipment (cables and flexible cords,

accessories and appliances) and check

compliance therewith. CEE specifications are mainly concerned with safety requirements

and, while not formally binding on member

organizations, the appropriate authorities in

their countries are strongly recommended to

adopt the CEE specifications as far as practicable. Owing to the special

circumstances, however, some member

organizations will not be able to accept all

the requirements of these specifications.

The CEE specifications are in force in any

country only in respect of those items of

equipment for which the corresponding

national specifications of that country are

in agreement with or are accepted as equivalent to those CEE specifications.

The European Committee for the Coordination

of Standards (CEN) has as its objective

establishment of standardization documents

common to all the countries of the European

Common Market and those of the European Free

Trade Association. In order to eliminate the

technical obstacles to the exchange of

products between the countries of the

European Economic Community and those of the

European Free Trade Association, it is

necessary to suppress the eventual

divergencies between the national standards.

The aim of the European Committee for the

Coordination of the El ectrotechnical

Standards (CENEL) is to decide on the ways

for harmonizing the recommendations which

could be reached in the el ectrotechnical

field. The activities of this Committee are mainly based on the result of the work of

both IEC and CEE.
2.4.2 Arab Organization for Standardization

and Metrology (ASMO)

ASMO is a technical organization under the

aegis of the League of Arab States,

responsible for standardization, metrology

and quality control. The aims of this

Organization include:

- Raising the level of production and

ensuring the high quality and precision of

Arab industry.

- Promoting cooperation between Arab states

in the fields of the economy, industry,

agriculture, science, and culture through the

elaboration of unified standards and

measurements.

- Promoting commercial exchange between the

Arab States and developing exports.

- Helping the Arab States and countries in

creating, compl eti ng, and developing the

national bodies for standardization and

metrology in order to strengthen the role of

standardization in supporting their economic

plans and development programmes.

- Issuing recommendations and unified Arab

standard specifications for materials,

apparatus, equi pment, and systems for

technical execution.

- Coordinating unification of terminology,

symbols, and definitions, and methods of

inspection, analysis, and measurements

together with measures to be taken for

quality control and for checking conformity

with specifications.

- Establishing a joint Arab centre for

training in the fields of standardization,

metrology, and quality control.

- Establishing a documentation and

information centre for the dissemination and

exchange of all information, publications,

and research in the field of standardization

and metrology.

3. THE ROLE OF STANDARDS IN A DEVELOPING

ECONOMY

In the complicated mechanism of the modern

world, the interactions which take place

despite the distances involved and despite

different levels of development require that

careful attention be devoted to the weakest

links in the chain of causes and effects.

Transition to a more developed society is

more important than simple economic

development; however, such economic

development is the essential prerequisite.

Some scholars have said that the formula for

economic development is quite easy: it

consists in marshalling sufficient resources

for the development process, the development

of industry being the key element. The

problem is, however, that the poorer the

society the more difficult it is to find resources for the development of industry;

hence, societies with very limited means of

subsistence are virtually condemned to

stagnation, precisely because of their

poverty.

The most important surplus a society can have

is in the industry of knowledge, i.e., that

part of society devoted to increasing and to

disseminating scientific knowledge. If this

industry is large enough that a production

surplus occurs (bearing in mind inevitable

drops in production during bad times), the

society cannot but develop. A society's

capacity to develop depends to a very large

extent on the volume of resources which can

be used for educational and research

purposes. At the time of Adam Smith, the

encouragement of wel 1 -organi zed research

aimed at increasing knowledge and improving

production methods was already recognized as being of great importance to industrial

devel opment

Developing countries lack the experience they

need to make use of technological discoveries

in order to increase production and thus

achieve better use of the production factors: raw materials, equipment, methods, manpower.

In the highly industrialized countries, on the other hand, rational use of these factors

has made it possible to build up efficient

industries with high levels of production,

capable of competing in the international

market on the basis of good quality.

Balanced economies have the advantage of

outlets into world markets where competition

is based on quality, price, and suitability.

The more developed countries are also in a position to satisfy, in adequate quantities,

almost any market on the basis of intensive

use of capital goods in the production

process. This is the very thing the

developing countries are unable to do.

67
It might seem that there is only a small

margin in favour of industrial growth in

countries of low economic development, and

this is in fact true in sectors where

competition is based on taking commercial

advantage of the most recent advances of

technology, although not in the wide sectors

concerned with the production of basic goods

needed by the society as a whole,

particularly foodstuffs, energy, metal and

nonmetal materials. These sectors offer so many other possibilities for economic

development that, if proper use is made of

them, they will provide the means for our societies to evolve at a rate which may

surpass that of the industrialized nations

and which is necessary in order to diminish

the present differences in levels of

development. There are conditions which must

inevitably be met, necessary patterns of

evolution, elements of knowledge and

experience to be provided by the highly

developed societies and which will have to be

adapted to the specific local conditions and

pecul iarities.

Technical standardization represents a sum

and a summary of the best achievements of

science and technology, which if associated

with the practical experience of the most

advanced countries, will bring about

rationalization of production, leading to

better economy of the production factors and

reducing losses, waste, repetition, safety

hazards, and the whole succeeding series of

negative effects for industry. Standards

institutes open the door to improved

knowledge of progress and experience

throughout the world. They act as arbitor

between the conflicting interests of

producers, consumers, and the general public.

This is of paramount importance in finding a proper balance after decades of mutual

ignorance have built up all kinds of barriers

and obstacles, making it very difficult to

achieve the mutual collaboration which is

indispensable for countries who wish to move

forward in a single constant direction.

4. THE ROLE OF STANDARDIZATION IN TECHNOLOGY TRANSFER

License agreements are becoming very

important in the international marketing of

technology. In connection with

standardization, one essential aspect of this

development plays a vital role in the

planning and practical implementation of

industrial projects.

Licenses relating to technology are a complex

subject. Conditions vary considerably from

one country to another, and the effect

produced by foreign technology varies

accordingly. There is, however, some similarity in the basic programmes for

international license agreements, in

particular, as regards adoption and the

negotiation leading to adoption.

It must be supposed that, as those countries

develop their technological background, the

sum of their specialized knowledge on international transfer of technology will

increase. It must not be forgotten that a license agreement is the result of bilateral

negotiations, that it is precisely this

instrument which regulates relationships

between licensor and licensee, thus ensuring

that the validity and scope of the license

will comply with the laws in force in the

country where it is to be used.

It is important to define or identify the

objectives, the specifications and the

methods used in conjunction with the

technology to which these negotiations

pertain. Generally speaking, developing

countries acquire foreign technology at the

company level, that is, through transfer from

one company to another. There can be no doubt about the licensee's desire to obtain

the appropriate technology under the most

favourable conditions; yet, it has been

observed that the cost profit analyses are made essentially in relation to the economic

situation of the company.

Now, the choice of a given technology clearly

affects the overall economic and social

development of a country. This is why the

governments of the developing countries have

defined basic principles which the individual

agreements for technology transfer must

fol low.

In order to encourage technology transfer to

developing countries, it is very important to

abide by certain fundamental rules such as

68
the following: The flow of technology must

be capable of satisfying the basic

requirements of industry and of filling in

any gaps at the production level, and must be

associated with the industrial programmes.

Specific guidelines and appropriate standards

and specifications should be laid down which

take account of the requirements and

characteristics of both the home market and

the export markets. On the other hand, it

must be possible to assimilate the foreign

technology quickly and efficiently and adapt

it to local conditions. To achieve this,

priorities should be established and

guidelines for selection followed to make it

possible to acquire know-how and goods in a consistent, coordinated manner.

The development of technical services should

be regarded as one of the primary objectives

of a developing country's policy, so that,

progressively, there will be greater

participation in the planning and

implementation of industrial projects.

There is a decided difference, in practice,

between the type of license agreement drawn

up between two companies in highly

industrialized countries and the type entered

into between an advanced country and a developing country. This difference stems

from the fact that the less industrialized

country is at a much lower level of technical

development than the highly industrialized

country. In the case of developing

countries, it is very important for the

licensor to take an active part in planning

an industrial project and in carrying those

plans out. It has been demonstrated that

highly sophisticated technologies may not be

wholly suitable because they are designed for

large-scale production and, in most cases,

not only is the home market of a developing

country restricted, but distribution networks

are quite inadequate. The choice of

machinery and equipment, as well as the type

of technology best suited to local

conditions, is largely dependent on the scale

of production.

Although during the preliminary negotiations

it may be difficult to assess the true value

of all of the elements included in the

technological aspect, it is essential for the

licensee company to gather the information it

needs to be able to determine the cost, both

direct and indirect, of the technological

processes available from different sources throughout the world. In general, the

licensee should try to find out the expected

lifetime of the technology, the

characteristics and limitations of the

equipment obtainable from the different

suppliers, and also the amount of money

companies in other countries pay for the same know-how.

From the experience of developing countries

it appears that guarantees which have to be

accepted by the different companies call for

special attention on the part of their

governments. In this connection, it is

important for the license agreements to

stipulate that the technology concerned is

capable of achieving given levels of

production, and to include guarantees

regarding the quality and characteristics of

the products.

The government's role in this sphere will be

to define the specific objectives and to

determine the type of technology and

equipment to be imported and on what

conditions, including how much adaptation

will be required in order to bring industrial

development plans to success. This role,

which involves heavy responsibilities, will

require government policies to take account

of the type of infrastructure — both

financial and economic -- needed in a given

sector of industry, furthermore, there will

have to be a broad economic policy which

clearly defines the objectives and

limitations of the country.

The developed countries need to improve the

technical competence of the licensee

countries in the following subjects in

particular:

a) The development of standardization

methodologies with a view to selection and

adaptation of foreign know-how.

b) The development of equipment standards

to be complied with by all suppliers of

techno! ogy

69
c) The training of local technicians so as to obtain technical assistance and

information from abroad.

d) The creation of interdisciplinary

centres in the field of standardization as an integral part of a scientific and

technological infrastructure.

e) Technical assistance with matters

concerning quality control of foreign

equipment and services, such assistance being

geared to the technical abilities of the

1 icensee countries.

5. IN-PLANT STANDARDIZATION OF DEVELOPING

COUNTRIES

While the principles of standardization are of general validity, their application in areas of activity of a manufacturing

enterprise depends upon conditions which vary

from country to country, from industry to

industry and also from one location in

industry to another. In developing

countries, such factors as foreign

collaboration, shortages of materials and the

like, are additional considerations to be

taken into account when formulating specific

standardization programmes. The problems

that any company faces will eventually be

minimized by the establishment of an organized in-plant standardization programme,

since the programme requires that once a recurrent problem is recognized and solved,

the solution should always be recorded. The

company will find it easier to establish

better relations with its suppliers in the

long run because they will realize that the

company with a standards activity does not

rely on guess-work and that its demands are stable. It will be in a better position to

convince government authorities of the

genuineness of its material and manpower

requirements, and in the case of a subsidiary, to convince the "principals" in

foreign countries that its requests are valid

in relation to certain foreign standards

requirements, which may otherwise be

unnecessarily stringent if applied without

regard to local conditions.

Advantages of in-plant standards:

a) More time may be devoted to the

fundamentals of design, when prolonged

concentration is given to a few good designs,

rather than hurried attention to a succession

of minimally workable ones.

b) Product designs may be simplified and

the relations between product and process

requirements studied more closely. More

specialized equipment may be used, since

payoff requirements can be met in long runs

of standardized items instead of short runs

of "specials".

c) Fewer varieties of materials need to be

stocked, so that the total inventory

investment is cut down and losses from

deterioration or changing market values are minimized through fast-moving inventories.

d) Work planning, production control, and

other management procedures can be simplified

and their frequency of repetition reduced.

e) Prompter and better service may be

offered to customers in respect to original

purchase and subsequent reorder, repair, part

replacement, or performance under warranty.

To increase productivity along these lines,

the in-plant standards activity must work

towards the introduction of procedures that

offer the greatest gains. This will consist

mainly in a drive towards external

standardization (i.e., national and

international) and internal standardization

through the guidance of company employees.

Such efforts will require facilities for

reconciling divergent opinions and for

monitoring the standards so that they are consistent with industry practices as well as with internal procedures. In-plant standards

should be such that they operate with the

full support of the company management, on the basis that their cost is an investment

that will be easily recouped through

increased productivity and profits for the

company.

The introduction of in-plant standardization

into a developing country need not follow a pattern different from that which took place

in the industrially developed countries,

unless special circumstances make it

necessary. The first three steps in starting

70
an in-plant standards programme are: reduction of item varieties; simplification

of the product; and an approved charter for

standardization. "Standardization" is not to

be looked upon merely as a "simplification"

process. Simplification should be a part of

the coordinated programme for

standardization. Another important point is

to avoid starting work on certain problems

just because they are easy, attractive, or

have been brought up by individuals or groups

requiring immediate solutions to their

problems. An approved, planned aproach,

starting with these three steps, will avoid

digressions from the main objective and help

to achieve the primary goals of

standardization.

In-plant or company standardization provides

cost reductions through the use of fewer raw materials, small parts inventories, lesser

requirements for special machinery, reduced

obsolescence in materials and equipment, more

efficient use of man-hours by means of

controlled production of standard parts,

product simplification through

interchangeabil ity of parts, and fewer

drawings. Additional advantages also occur

if standardization is applied to in-plant

operations on a continuing basis.

6. MAINTENANCE AND STANDARDIZATION

Increasing attention is given to the

fostering of economic and industrial growth

in developing countries through high

investment ratio and through transfer of

capital and technical know-how from

industrialized countries. However,

industrial development does not confine

itself to investment in new production

facilities. To achieve industrial growth,

the installed facilities must be used

efficiently. One of the prerequisites for

the efficient use of equipment is systematic

maintenance and repair.

Industrial surveys of developing countries

show that the installed capacities are to a large extent poorly utilized. Admittedly,

the reasons for low utilization of installed

capacities can be bad project planning, low

labour productivity, poor management,

unfavourable general economic conditions,

etc. But to a large degree the considerable

downtime of machinery caused by breakdowns

and stoppages contributes to the low

utilization of capacity. Thus, poor

maintenance and repair generally cause economic losses through lower efficiency of

the installed machinery, lower quality of

products, and higher costs of production. In

addition, poor maintenance and repair lead to

the deterioration and consequently

shortening of the physical lifetime of

installed machinery. This clearly is a significant waste of capital - the most scarce factor in developing countries. Owing

to this squandering, industrial development

in developing countries is hampered and

burdened with greater obstacles and higher

costs than would appear necessary. The

increasing indebtedness of developing

countries tends to aggravate the situation,

since it puts serious financial limitations

on the purchase of machinery, equipment, and

material

Improving maintenance and repair in

developing countries would thus be one of the

most important and effective ways of

stimulating industrial development. With

relatively small inputs considerable gains

could be achieved both in the short run and,

above all, in the long run.

Maintenance should not be thought of simply

in terms of shop-floor activities, such as the tightening of a nut, lubrication of a bearing, or repairing of a machine part when

it breaks. In fact, this limited approach is one of the main reasons for inadequate

maintenance performance in developing

countries. Therefore, it would be of little

use to help developing countries to improve

repair facilities or build up new ones without establishing an adequate maintenance

management and stimulating maintenance

mindedness at all levels. Managerial and

economic aspects are of crucial importance in

this field.

The objectives of maintenance are:

a) To extend the useful life of equipment.

This is particularly important for developing

countries in view of their lack of capital.

71
b) To assure the optimum availablity of

installed equipment for production.

Developing countries should aim at getting

the maximum possible return from investment.

c) To ensure instant operational readiness

of all equipment for emergency use, for

example, stand-by units, rescue units, etc.

d) To ensure the safety of personnel.

The importance of standardization of

equipment as a means of simplifying

maintenance work should be emphasized.

However, developing countries face

difficulties in achieving a reasonable degree

of standardization. For instance, a stipulation in bilateral assistance

agreements that equipment is to be purchased

from the donor country hinders

standardization greatly. It is felt that the

possibility of achieving international

standardization of equipment intended for

developing countries is very remote and that

the solution to the problem of

standardization lies within each developing

country. This particular problem should

receive due attention from standardization

bodies.

72
PAPER 3.2 - THE INTERNATIONAL STANDARDS PICTURE

Richard B. Bel ford

Technical Director

Industrial Fasteners Institute

Cleveland, Ohio

Rather than give you the usual talk about the

virtues of standardization, the workings of

ISO and IEC, and an accounting of their

accomplishments and their ambitions, I intend

to share with you some of the reflections and

observations which I have gathered during a 20 year period of active front-line

participation in international standards

work. Before I go into it, I am going to say

that some of my remarks may appear to be

quite cynical. They are not intended to be

offensive, and if you find them that way, I apologize. I am merely trying to relate to

you, as honestly as I can, the realities of

international standardization as it is being

lived today, and hopefully to shed a little

light on the motivations and conduct of some

of the more highly industrialized countries.

Perhaps I can identify for you the role of

the less developed countries and suggest how

their participation and involvement can and

should be strengthened.

Let me first explain the boundaries within

which I feel I have a certain qualification

with which to speak. I have been associated

with the fastener manufacturing industry in

the United States for 28 years. Fasteners

are bolts, screws, nuts, rivets, washers, and

pins. They are the articles used to assemble

every conceivable structure, vehicle,

machine, piece of equipment, from the most

sophisticated space missile to the simplest

of children's toys. Fasteners are totally

pervasive throughout our industrial life. In

fact, it is difficult, if not impossible, to name a single industry that doesn't use mechanical fasteners in highly significant

quantities.

Most countries of the world now manufacture

fasteners. Because fasteners are highly

standardized and are used in such fantastic

numbers, the markets of the more

industrialized countries have become very

attractive to other countries that as yet may

not be so highly industrialized, but

nevertheless, have developed flourishing and

expanding fastener manufacturing industries.

Internationally, there are two organizations

active in standards work: the International

Organization for Standardization (ISO) and

the International El ectrotechnical Commission

(IEC). When ISO was first organized in 1947,

the first two technical projects it

authorized were on screw threads, TC-1, and

fasteners, TC-2. Since 1958 I have been a delegate from the USA to most meetings of

TC-1 and to all of the meetings of TC-2.

Consequently, my remarks reflect primarily my

association in the work of TC-1 and TC-2,

especially during the past eight years, when

we have tackled the extremely difficult and

highly controversial task of negotiating the

basics of a single system of engineering

standards for mechanical fasteners.

There are a number of thoughts that I would

like to discuss with you. Generally, they

flow in the same pattern as that by which a standard is developed: the inception, the

period of negotiation, acceptance,

publication, and the aftermath.

Let's talk first about the different types of

engineering standards. Standards covering

such subjects as nomenclature, definitions,

reference materials, and test methods, are reasonably easy to write and generally are non-controversial. Processes, manufacturing

controls, mechanical and performance

requirements, quality assurance levels,

ratings — these are considerably more

difficult, but still there is plenty of room

for give and take, and friendly accord is

usually possible. And then we have product

standards: documents which define sizes,

shapes, dimensions, tolerances, and all of

the other features which affect the

interchangeability of manufactured parts.

These are by far the most difficult to

develop, because before true international

interchangeability can be realized, one or more countries must accept physical changes

in the products they are currently producing

and using domestically.
Change is expensive. Change is disruptive.

Consequently, when negotiating international

product standards, the primary motivation is

not always technical, but more often it is to

minimize your country's costs at the expense

of those of others. The great majority of

the international fastener standards are product standards, and this has been the nub

of our problem. While we all readily agree

that we want and need international

standards, the question is, "Who will make

the sacrifice of change?"

Let's take a look now at the "why" of a standard. What's the incentive? Or, more

crassly stated, what's in it for me? And

this is a question that all countries,

regardless of their industrial development,

should ask.

We are all aware of the altruistic

platitudes about trade expansion, exchange of

technology, social responsibility of the

haves to the have-nots, and they are all

valid objectives, with no criticism intended

or offered. But I suggest to you, that no country, nor any segment of its industry,

should spend any time, effort, or money, on a standards project that doesn't offer a full

and generous return on the needed investment.

Standardization is a business function. It costs money, and if the pay-off doesn't

justify the involvement, then don't do it'.

With respect to fasteners, the work of TC-2

progresssed at a very lazy pace for 20 years,

with only peripheral accomplishments. About

ten years ago it became increasingly apparent

that many of the multinational corporations

of the world, all of them fastener users, for

their own very good economic reasons, wanted

a single system of engineering standards.

They wanted to design, procure, assemble,

market, and maintain all to one system,

regardless of geographical location. Quite

obviously, this one system had to be in

metric. And frankly, this is the reason why

the USA is now moving toward that system of

measurement. This established the incentive,

and the work of TC-1 and TC-2 accelerated

dramatical ly

.

The next question we might ask ourselves, is

why do all of the highly industrialized

countries take such an active role in

international standards? Is it because they

have a willingness to share their experience

and their technical expertise, for the

international betterment of all? I would

like to think so, and I hope it is true. But

I suspect it is more for the simple reason of

self-preservation. Countries may come to the

negotiating table professing cooperation and

constructive intent, but they are all there

to promote their own domestic practices. In effect, they are all trying to avoid the trauma

and cost of change for their own industries

and to foist if off onto the backs of others.

We now enter the important period of

negotiation, and the actual structuring of

technical content. First, any country

hoping for even modest success, must be

represented by qualified technical experts.

They must be well -briefed, nimble thinkers,

and willing to work hard to achieve their

country's position. International

standardization meetings are no place for

tourists. Many times, I've seen defensible

positions lost, unnecessarily, because of

incompetent representation.

Continuity of representation is equally

important. None of these meetings are easy.

They generally move fast, and first time

attendees without previous experience or background usually find themselves at a significant disadvantage.

During the initial exchanges, each spokesman

presents articulate and compelling arguments

why the national practice he expounds is

technically superior and why the

international standard should be written in

its image. We are all guilty, and yet, why

not? We genuinely believe in the correctness

of our position because it is based on our

own country's experience. It's life as it is

being lived in our own country, and we know

our own domestic producing and using

industries have found it satisfactory. But,

usually, when you scrape away all the

oratory, and you take a hard look at the

various approaches which have been proposed,

they generally boil down to one thing: we are all saying, let's do it my way'. Or, more crudely stated, let your industry suffer

the expense and disruption of change, while

mine continues business as usual'.

After this type of opening exchange — it's

almost a ritual — there is then serious and

objective analysis of the technical merits of

competing proposals. Rarely have we found

one exclusively the best, but rather, the

best answer is a combination of the better

74
features of each. One thing we have all

learned, regardless of the degree of

technical sophistication or industrialization of our own country, is that

no single country, or even group of

countries, has a monopoly on scientific or engineering brains.

To reach international accord, there must be

concession, there must be compromise. And

here is where participation by some of the

less industrialized countries can be

extremely helpful. While their industrial

strength may not yet match that of others,

this doesn't mean that their engineering

talent is any less competent. Frequently,

guidance from a third party can be invaluable

in helping resolve points of impasse.

Sometimes adversaries are so blinded by what

they feel is the obvious correctness of their

positions, that they cannot see the

viewpoints of others. Let the role of the

technical representatives of the less

developed countries be to open eyes and ears

and help soften the polarization of

positions'.

Unfortunately, however, playing the role of a technical adjudicator may indirectly create a difficult problem for such countries. And

the reason is this: If an international

standard is to gain acceptance, and more importantly, if it is going to be used, its

contents must reflect the best technical

practice of any of the participating

countries. Any international standard

presenting less than the level followed

domestically in any participating country

will not be adopted by that country. No

country should be asked to down-grade its

technical and industrial practices, just to

be in accord internationally. In fact, even though a country's sympathies may lean toward

international compromise, its own industry,

and frequently its own laws, will prohibit

such regression. This puts a severe burden

on the less industrialized countries,

because it requires them to meet the best,

immediately, without the maturing processes

that the more advanced countries have been

permitted.

It has been suggested that international

standards might establish varying levels of

quality to encompass the manufacturing

capabilities of different countries. Perhaps

7

this is feasible in some industries and for some commodities, but for fasteners it is

quite impractical

The length of time needed to finalize

international standards has often been

criticized. Certainly, to many participating

countries, it may seem ridiculously long, and

there may be even some suspicion of

deliberate obstruction. Those countries in

which the producing and using industries are of fairly modest proportions, and those

countries which conduct their standardization

by governmental edict, must be somewhat

mystified at times by the apparent

floundering and maneuvering of the larger

countries, particularly those of North

America and Europe. Perhaps I can explain.

The reason is that most of these latter

countries have voluntary consensus standards

systems. This means that all interested

parties have a voice, and that action cannot

be taken without the support of a substantial

majority. Quite often — and believe me I've

been through this more times than I like to

remember -- it is much easier to reach a decision internationally, than it is to gain

the endorsement of that decision after you

return home. In the USA, major international

decisions must be ratified by national

committees. These committees are made up of

representatives of all industries -- large

and small, internationally oriented and

exclusively domestic. All of these

interests, and very properly so, view each

international decision through their own parochial eyes, and their response frequently

runs the gamut from enthusiastic support to

active opposition.

Our own national standards procedures dictate

that such differences must be resolved, if

not into a unanimous position, at least into one that is a provable consensus. This takes

time, and often results in a re-evaluation of

national positions, with modified views

presented at subsequent international

meetings. I know this is trying on the

patience of other countries, but we do need

your understanding. If international

standards are impatiently bullied through by

majority voting, they risk not being adopted

by important trading partners. And standards

which are not used are totally wasteful of

everyone's time and effort.

5
So finally we reach accord. We indicate our domestic intent to change as necessary to

reflect the international decisions. We

convince ourselves that a respectable

technical job has been accomplished. We vote

approval, and an international standard is

published. And this introduces the last of

the problems requiring some mutual

understanding.

Many of the smaller countries are now adopting ISO standards directly, without any

change, as their own national standards. For

the less developed countries, this is

sensible, it is the most economical approach,

and it puts the country immediately into the

mainstream of international agreement.

However, the highly industrialized countries

all have their own systems of national

standards and direct adoption of an ISO

standard is impossible for most. The reason

is that many ISO standards -- and again, I am thinking primarily of those for fasteners —

are incomplete, in that they present the

basics, but not all of the specifics,

required by industry. This necessitates

publishing a national standard, which will

include the content of the ISO standard, but

which will be expanded to present additional

information. The important fact is that

these additional requirements will not affect

the functional interchangeabil ity of

manufactured parts and should not be viewed

as a rejection of international agreements,

or as a unilateral effort to erect a trade

barrier. Our national system, the industries

we serve, and frequently our laws and Federal

regulations, dictate this practice.

In conclusion, let me give you a quick update

on where we stand in the development of

international fastener standards. We've been

through a very difficult and trying eight

years. It's been eight years of controversy,

and at times, very unpleasant confrontation.

But the job is now done, and there will be a single system of engineering standards for

mechanical fasteners. I think we are all

well satisfied with the understandings we have reached. The system is technically

sound, and it is provably superior to any

that is now standard in any country of the

world. For those of us who have been on the

front line, it has been an enriching and

maturing experience. There is still much to

do, but we look forward optimistically to

continuing that work. It should proceed

smoothly and efficiently. All of us are looking forward to the active help of many

more countries.

DISCUSSION :

Questioner:

Can you give us any idea of the cost to the

United States to adapt to this new international standard?

Mr. Bel ford:

Our cost to go metric is going to be quite

significant, and I don't think anybody

could estimate a true value. If you are talking about what it is going to cost an industry such as ours to accept the

international standards for metric fasteners,

it will be reasonably nominal, simply because

we have had no metric standards for

fasteners. All of our production up to very

recently has been in inch. Our goal

throughout this entire exercise in ISO has

been to help design an international system

of metric fasteners, that we can accept and use with confidence that it is technically

good and reflects a reduction of number of

parts to the degree possible. We have tried

to build in just as much economy and

technical improvement as possible. For the

Europeans, it is going to be expensive. For

other countries of the world that are now metric, it is going to be expensive, simply

because they have to make a number of

significant changes in their manufacturing

and use practices. But again, the incentive

was there to have a truly international

system. So when people accept that, then

they swallow really hard and accept the

change that comes about. They satisfy

themselves that in time they'll have a better

system, and it will be truly international.

Mr. David Edgerly (National Bureau of

Standards)

You mentioned that it is difficult for an industrial country to accept or adopt an ISO standard in toto, that indeed you must go

a bit further. Could you illuminate a little
bit, give me some examples of the type of

additional things that are necessary?

Mr. Bel ford:

Let's take a hex nut. You are all familiar

with a hexagon nut. It has a width across

flats, it has a thickness, it has a thread

tapped through the middle of it, and that's

about it. However, a hex nut has about 24

separate elements or dimensional

characteristics that can be toleranced, and

should be toleranced, if there is going to be

proper manufacturing control and for

inspection acceptance by the customer. The

ISO standard for a hex nut might cover 12-15

of those characteristics. The others have

been historically toleranced in our own USA

standards, and users who have been accustomed

to this practice expect the tolerancing of

these additional 8-9 characteristics in

metric standards. As I say, they are very

peripheral. They do not affect functional

interchangeabil ity in any way, but these are things that we just have to do. You could

take almost any fastener product and find a similar situation.

Mr. Edgerly:

You don't think it appropriate that those

additional requirements, including the test

methods that would be necessary to ensure compliance with the standard, should be made

part of the ISO standard as well?

Mr. Bel ford:

We would like very much that they would be.

And we have suggested these things from

time to time. But, other countries of the

world feel these are unnecessary refinements,

and consequently, we work on the basics and

go as far as we can. Our position is very

well known to the other countries, that when

we publish an American National Standard for

a product, it will include everything that

has been agreed in ISO, but there may be some additions. We do our very best to qualify

that we are not going to be disruptive of

interchangeabil ity of parts. Most of the

time any product that is manufactured in

other countries would find acceptance against

these same requirements if it were inspected

for them, but the other standards of other

countries and the ISO standards do not

require them. Unfortunately, in some respects (speaking as a producer), our standards do.

Mr. Albert Baron (United Nations):

Would you indicate how long it will take for

the United States to move toward metric in

the industrial fastener area?

Mr. Bel ford:

We are substantially metric now. I would say

that in our producing industry in this

country, perhaps 10-15% is now metric. And

we are going toward metric just as fast as our customers wish. National standards for

metric fasteners -- these are ANSI, ASTM and

SAE standards — based on the decisions that

have been finalized in ISO, are well advanced

in their writing, and a great number of them

right now are going through the various

procedures leading to their publication. By

the end of 1979, the great majority of these

standards should be in print. And, every

year from now on, more and more of our production will be in metric.

Mr. Baron:

Do you have any idea when Detroit will have

major motor cars with metric fittings?

Mr. Bel ford:

They do now, sir.

77
PAPER 3.3 - TOWARDS STANDARDIZATION IN GUYANA

Mrs. Lorna Lawrence

Senior Scientific Officer

Guyana National Bureau of Standards

Georgetown, Guyana

I. SUMMARY STATEMENT

Industrializing nations, wishing to put their

economies on a sound base, must produce both

for domestic consumption and for export.

With respect to domestic consumption,

industrializing nations should seek to

establish without undue delay compulsory

national standards for specific consumer

products, which can potentially affect health

and safety, particularly in the areas of food

and drugs, and for those consumer products

for which there is monopoly ownership.

Voluntary standards should be set for

products that are competitive, so that consumers can choose products that satisfy,

if not all of their needs, at least most.

With respect to exports, industrializing

nations must satisfy the requirements of

trading partners, within their capability, so that standards for exports should be

determined by mutual agreement between the

parties concerned. These need not be

international standards, since international

standards are based on general consensus,

part of which may in certain circumstances be

disadvantageous to some exporting countries,

and vice versa.

There should be international standard

regulations governing the ethics of pricing

agreements, whereby a lower ceiling remains

intact, thereby providing a built-in

safeguard for small developing nations.

Sugar is a good example, where presently the

world price is far less than production costs.

The existence of an international standards

organization, for example the ISO with its

present aims and objectives, is welcome.

However, small developing nations are presently not in a position to derive

benefits which may accrue from membership in

this Organization, since the quantum of the

membership fee, as it now is, is outside the

financial ability of some small developing

nations, in terms of GNP. Perhaps some nations may appreciate the proportioning of

the ISO membership fee to GNP for each

potential member nation. 78

A readily identifiable problem of small

developing nations is the dire lack of hard

currency to purchase hardware and software,

and to develop much needed skilled personnel.

This is a particularly serious problem, since

manpower development is very, very slow.

Lastly, I wish to comment that there seems to

be an urgent need to revolutionize the

teaching of science, so as to attract more

students to the graduating classes at the

secondary school and university levels, and

to lift the levels of understanding and

know-how of these potential scientists.

II. PREPARED PAPER

1. BACKGROUND

1.1 Geographical :

Guyana occupies an area of 215,000 square

kilometres on the north coast of South

America immediately east of Venezuela. Its

climate is tropical with temperatures in the

range 27-32°C and an average rainfall of

228 cm per annum. It encompasses four well

defined geographical regions, viz., a low

lying agricultural coastal plain supportive

of rice and sugar; heavily forested hills of

sand and clay encapsulating extensive

resources of high grade bauxite and low grade

iron ore; the auriferous highlands; and the

lush cattle-raising savannahs. The

population is estimated at about 800,000, 60%

of which is under 25 years, with an annual

increase rate of 2.5%.

1.2 Economic :

Agriculture has been identified as the main

thrust of the development plan, and its

activities are concentrated mainly on the

coastal plain and certain parts of the

riverine areas. The main crops are sugar and

rice. Other activities are related to

blackeye peas, soya beans, tilapia, ground

provisions, peanuts, plantains, bananas,

wheat, citrus fruit, fish, and cattle.
The shrimp resource off the north eastern

coast of South America, including the

320 kilometre Guyana coastline, is the basis

of a major international fishery industry.

Bauxite is the other major export commodity.

After the enactment of the final version, at

various times and as an on-going process,

pertinent regulations dealing with standards

specifications and codes of practice will be

generated.

1.3 Scientific and Technological

Indicators :

Of 35 organizations surveyed by the National

Science Research Council, the following

data* may serve as indicators of the

present scientific-technological manpower

capabil ity:

Ph.D. - 36

M.Sc. - 47

Post Graduate Diploma - 26

B.Sc. - 173

Undergraduate Diploma - 353

Non-scientific Diploma - 81

Other - 751

Government's instituted policy of free

education from nursery to University should

eventually raise the quanta of these

indicators.

2. TOWARDS STANDARDIZATION

2.1 Legislative Proposals :

The formal introduction of standards and

standardization in the society will, like

most if not all new measures, be faced with

some difficulties, in particular those

generated by resistance to change. It is,

therefore, necessary from the inception to

have the stage well set to cope with this,

firstly by clearly defining the functions,

powers, and structure of the organization

charged with the responsibility for effecting

the system of standards and standardization,

and secondly to acquire the necessary legal

tools for facilitating specific functional

activities. Hence a First Draft of a Guyana

Standards Act has been prepared, making use of the experience of other societies by

studying Standards Acts of eight countries.

iThe National Paper of Guyana--For the

United Nations Conference on Science and

Technology for Development.

2.2 Essential Features of our Standards

Organization :

The essential features of the proposed Guyana

National Bureau of Standards are shown in

Schematic 1.

Schematic 1. Overview of the National

Standards System

Standards Council

(Committee) of

Guyana

Bureau

Accredited Testing

Laboratories

ISO IEC

Guyana Consumers

Association

Guyana Metrication

Board

Technical

Committees

Working

Groups

2.2.1 Standards Council :

The Bureau shall be managed by a Standards

Council which shall have power to:

(a) supervise and control the

administration and financial mangement of the

Bureau

;

(b) advise and obtain advice from the

Minister responsible for standards in regard

to any matter within his purview under the

Standards Act;

(c) formulate matters of policy for the

purpose of providing general or specific

79
guidance to the Bureau for the better

performance of its functions under the Act;

- Engineering

and Architecture

- Standards

Work

(d) do all things necessary for the

better carrying out of the provisions and

purposes of the Act except where otherwise

provided.

Members of the Council shall have

qualifications in fields relating to

standards, or experience in business, or

shall be members of organizations committed

to the maintenance or promotion of standards.

The Director of the Bureau shall be the

Executive Secretary of the Council.

2.2.2 Technical Committee and

Specialist Working Groups :

Since the Bureau cannot employ on a f ul 1-time/al 1-time basis a wide range of

expertise, and since also consultation with a wide cross-section of informed opinion is

essential, some of the work of the Bureau

must be done through Technical Committees.

The Standards Council will from time to time

appoint Technical Committees to draft or adapt specifications/codes of practice,

consider comments thereon, and review

specifications, and to recommend

specifications to the Council for adoption as voluntary or compulsory standards. The

Technical Committees will assign priorities

to the preparation of specifications in the

field in which they operate and will

recommend to the Council the composition and

terms of reference of Working-Groups.

Technical Committees will be representative

of a cross-section of knowledgeable people

from manufacturers, researchers, marketers,

distributors, and users.

The Technical Committees shall establish

specialist Working-Groups as the need arises.

Working-Groups shall comprise persons drawn

from official and unofficial bodies with

knowledge and experience in some of the

following areas:

- Import and Export - Textiles

- Industrial Production - Physics

- Mechanical Engineering - Economics

- Electrical Machines - Consumer

Education and

Consumer Affairs

3. RELATIONSHIP WITH INTERNATIONAL

AND LOCAL AGENCIES

The Bureau seeks to serve the manufacturer,

industrialist, trader, salesman, and consumer and as such cannot operate in

isolation. The Bureau will, therefore,

relate meaningfully with the following, among

others:

o The International Organization for

Standardization, ISO

o The International El ectrotechnical

Commission, IEC

o The Guyana Metrication Board

o The Guyana Consumers Association

o Accredited Testing Laboratories

3.1 International Organization for

Standardization :

The Bureau sees much value in membership of

the International Organization for

Standardization for the following

2 reasons:'1

ISO is the specialized international

agency for standardization, comprising the

national standards bodies of 81 countries;

The ISO work covers a wide range of

topics;

The results of ISO technical work are published as International Standards, which

represent a global consensus of opinion;

In all, some 100,000 experts in different

fields are involved in the ISO work.

- Retail Marketing - Chemistry * ISO - in brief - 1976-09-20

80
3.2 International Electrotechnical

Commi ssion:

3.4 The Guyana Consumers Association :

I EC, as described - quote - "The members of

the Commission are the National Committees,

one for each country, which are required to

be as representative as possible of all

electrical interests in the country

concerned: manufacturers, users,

governmental authorities, teaching and

professional bodies. They are composed of

representatives of the various organizations

which deal with questions of electrical

standardization at the national level. Most

of them are recognized and supported by

their respective governments."^ - should

provide invaluable reference data.

3.3 The Guyana Metrication Board :

Guyana has initiated action for the

establishment of a Bureau of Standards at a time that should allow standards and

standardization to be more impactive on the

national economy.

Standards underlie all mass-production

methods and facilitate the integrating

process necessary to large-scale production

and distribution. This is more so since

presently a Metrication Board has been

established to coordinate and implement a programme for Metric Conversion from the

Imperial System of Weights and Measures.

Standardization and its concommitant

Metrication will bring about the following:

reduction of varietal production

achievement of component/parts

interchangeable ity

reduction of stocks and enhanced

inventory control

3 ISO MOMENTO 1976

The Guyana Consumers Association has as objectives, inter alia, the foil owing:

(a) To improve the general standard of

living through aspects relevant to consumer

education;

(b) To represent consumers before public,

industrial, commercial bodies and government

agencies

(c) To raise the hygienic conditions of

production, improve processing, packaging,

transportation, and marketing of food

products;

(d) To improve hygienic conditions in all

public places where food is sold and/or

consumed and to raise the standard of

presentation of food in all such places;

(e) To work with national standardizing

bodies in developing methods of test for consumer goods;

(f) To provide consumers with information

about frauds, rackets, false advertising,

harmful products, shoddy goods, unsafe

machines.

3.5 Accredited Testing Laboratories :

The establishment of laboratories for

scientific and technological work is a costly exercise even without consideration of

the accompanying cost of personnel

development to operate them. The Bureau's

laboratory work will therefore be done in a two-pronged mode; firstly, in Bureau

Laboratories equipped with essential

apparatus not now available in Guyana and for

testing not done elsewhere locally, and

secondly, in laboratories at the University

of Guyana, the Government Analyst Department,

the Guyana Sugar Corporation, the Guyana

Mining Enterprise, and Government

Departments, should these be accredited for

the Bureau's work. For the latter case the

following observations and proposals are made:

4 extracted from 'Constitution of the

Guyana Consumers Association'

81
Observations :

Advantages :

(a) existing laboratories and

equi pment

(b) existing personnel experienced

in the use of (a)

(c) existing maintenance support

(d) maximal utilization of resources

Disadvantages :

(e) conflicts in actual work

schedul i ng

(f) the problem of accountability

Proposal

s

:

(a) that the proposed use of these

existing facilities be taken up at the

highest possible level —probably Ministerial,

so that obstacles to progress in

implementation may be minimized or

el iminated;

(b) that a feasible fee structure be

developed to defray the cost of equipment

mai ntenance.

4. THE LIBRARY

The Library will be the first permanent

facility to be established in the Bureau

for the following reasons:

(i) For the period up until

December 31st, 1978, the Bureau has no hard

currency and is without a budget.

(it) The Bureau has one full-time

functionary in its employ.

(iii) The only material facilities in

the Bureau's possession are standards

1 iterature.

Note : (a) The United States Agency for

International Development has

donated 3,500 volumes of

standards. 82

(b) The Indian Standards Institution

of New Delhi, India has donated

9,000 volumes of standards;

(c) The Guyana Sugar Corporation has

donated G$5,000 to aid the

establishment of the Standards

Library;

(d) The Guyana Mining Enterprise has

committed itself, in principle,

to further assist in the

establishment of the Standards

Li brary.

A Catalogue of the Standards Literature is

being prepared for distribution. The

back-cover will carry a reply card which will

record information about recipients' needs

and interests, which on return will augment

the Bureau's information base, a necessary

tool for intelligent planning. It is hoped

that even before national standards are generated and laboratories are installed,

that study and implementation of information

on hand will directly better product

qual ity.

5. ADMINISTRATION AND OPERATIONS

5.1 Organization :

To facilitate smooth functioning through

understanding, the following guidelines have

been prepared:

(1) Guidelines for Chairpersons of

committees/worki ng-groups

(2) Guidelines for Secretaries of

committees/working-groups

(3) Guidelines for Members of

committees/working-groups

(4) Guidelines for the preparation of

draft standards.

Since metrication is imminent, all members

serving the Bureau as permanent staff or in

committees/working-groups will soon be

exposed to a viewing of Metric Films

available in Guyana.
5.2 The Public: (5) information and care labeling

The Bureau will inform and educate the public

about its existence and its modus operandi.

Public awareness of the role of

standardization is likely to be slow. It is

hoped to accelerate this by launching an awareness programme commencing with the

showing of two films, viz:

(a) Standards are for Living — made by

the Standards Council of Canada;

(b) Standards for a Better Life -- available at ISO.

This would be followed by a programme of

publications, mass media excerpts, training

courses, lectures, exhibitions, and career

guidance sessions at colleges and schools,

tailored to suit each target audience.

The program content shall be concerned with:

Standard Specifications

Standard Test Methods

Standard Codes of Practice

Inspection

Enforcement

Qual ity Control

Certification

Quality Control will be directed to three

categories of people—Manufacturers,

Salespersons, and Consumers.

The Manufacturers will be made conscious of

their products' entire industrial cycles, and

will be exposed to aspects of:

(1) raw material control

(2) process control

(3) cleanliness of materials used for

packaging

(4) finished product inspection

(6) product transportation

(7) quality costs which would include:

(a) prevention costs

(b) appraisal costs

(c) internal failure costs

(d) external failure costs;

since it is envisaged that these would enable

them to attain increased effectiveness and

lower overall quality costs.

The Salespersons cannot be omitted in this

exercise and will be exposed to topics

concerned with hoarding and product

deterioration and the effect of fraudulent

practices on product quality.

The Consumers will be advised on matters

concerned with:

(1) how to buy;

(2) 'use' and 'misuse' of commodities;

(3) general information which will

minimize the tendency for the general public

to associate faults in manufactured products

and commodities with the efficiency of the

National Bureau; and

(4) certification, which will give the consumer the technical help he/she needs for

judging the quality of a product.

5.3 Staff Recruitment :

As a direct input into expanding and

enhancing the manpower recruitment pool,

the Bureau can equip itself to organize the

teaching of a programme on standards and

standardization at two level s -- University

and Technical Institutes.

83
5.4 Personnel Development :

Personnel development should be done in

several ways operating in harmony, viz:

In-house Training -- Plans are afoot to use the services of experts deputed from the

Indian Standards Institution, New Delhi, to

conduct a course in Standards and

Standardization locally in June to August of

'79.

Production Enterprises -- Discussions will

be held with production enterprises with a view to arranging on-the-job stints for

Bureau staff.

International Forums -- Provisions will be

made for staff to benefit from international

exposure through attendance at seminars,

workshops, conferences, and training

attachments.

5.5 Development of a National Standard

and its Application :

Preparation of a Guyana National Standard

shall be undertaken in response to a request from any reasonable source --

a

government department, either as a statutory

authority or as a user, a consumer

organization, a trade or other association or

an individual firm -- provided that full

inquiry yields evidence that the project is

generally endorsed by the interests concerned

and that these interests will cooperate in

the drafting work.

5.6 Appl ication :

(1) The Guyana National Bureau of

Standards specifications, test methods and

codes should gain recognition as National

Standards from the fact that they are prepared and accepted by all interested

parties represented on the drafting

committees. Generally they should derive

authority from voluntary adoption based on their intrinsic merit.

(2) Where a standard is concerned with

matters affecting safety of life or property,

and where there is no competition in a specific area providing an avenue for

84

'monopolistic exploitation', it may find

compulsory application through reference in

statutory regulations.

(3) The producer voluntarily adopts a standard by simple decision to comply with a relevant standard.

(4) The purchaser gives a citation of

standard specifications as a condition of

tendering and contract.

(5) Standard specifications may be

applied through the use of a Guyana Standards

Mark.

5.7 Certification and the Guyana

Standards Mark :

The GNBS will own this Mark which will be

registered as a certification trademark

under the Trademarks Act. It shall be

available, under license, to manufacturers

who satisfy the Bureau that their products

comply with appropriate published Guyana

Standards and who are prepared to enter into

agreements which shall include observance of

general rules and of specific supervision and

control requirements. These agreements shall

bear the Bureau's seal, and non-compliance

will result in license suspension.

6. COOPERATIVE AGREEMENTS WITH OTHER

AGENCIES

Funding Proposals :

The GNBS will operate on a non-profit basis.

Income may be generated by:

A. 1. A Guyana Government Grant;

2. Annual contributions from:

The Guyana Manufacturers

Association

The Consultative Association of

Guyanese Industry Ltd.

The Berbice Chamber of Commerce

The Georgetown Chamber of Commerce
All Public Corporations

3. Sales of Publications;

4. Fees from subscribing members not

named in 2.

B. 1. GNBS can run courses for a fee for the

staff of manufacturers, small

industries, etc.

2. GNBS may charge fees for laboratory

tests.

3. GNBS may acquire monies by way of

penalties dictated in the Standards

Act.

C. The Bureau will seek assistance from

UNIDO.

7. STANDARDS AND THE FUTURE

GNBS work will be intimately related to

Guyana's economic development. Each new

area of production and each technological

development creates a demand for new or revised standards. The removal of

impediments to trade, nationally and

internationally, the effective communication

of technical information, the change to the

metric system, spell out the need for

continuing growth in both the scope and

competence of the GNBS.

8. RECOMMENDATIONS

A. 1. That standardization be accepted as a precondition for both technological and

economic planning.

2. That standardization be considered for

rationalization of imports of capital

goods.

3. That standardization be a prerequisite

for simplification of spare parts

stocking and inventory management.

4. That one-man (woman) business should be

discouraged and cooperati ves^ be

urged.

Reasons

(a) too great a variety of production

methodologies which would greatly 'strain'

the resources of even a competent Bureau;

standardization enforcement would be nigh

impossible;

(b) too wide a range of raw materials;

(c) opportunity for fraudulent

practices in food production.

5. That innovative steps be taken in

education policy specifically to generate

substantially larger numbers of students in

science and technology both at the University

of Guyana and the Technical Institutes by:

(a) Shunting a major allotment of

potential students for the Social Sciences

and the Arts at the University of Guyana to

the Science and Technology faculties; the

basic intelligence is there, the challenge is

for the Lecturers to take up.

(b) Popularizing science and technology

by radio and regul ar news media columns with

emphasis on bringing about a change in

attitude towards the use of science and

technology in the development process.

6. That retired scientists and

technologists who are able and willing to

function be given the opportunity to be

re-employed. (In some developing countries,

scientists of 70-odd years are active.)

4 The cooperative concept involves groups

of people who come together as parts of a legal entity to ensure for themselves and

the nation a better quality of life.

Inherent in cooperatives is a new order of

collective ownership, control, and

distribution of wealth by people who are,

themselves, users and consumers. The

spirit of cooperati vism is part of the

historical and psychological make-up of

Guyana. Our folklore contains compelling

inspiration for cooperativism in the

proverbs "One hand cyan't clap" and "One

hand cyan catch louse."
7. That a distinction be made between

Rural National Standards and Urban National

Standards in view of the need to relate rural

production to rural technology and to

maintain community development in step with a progressive cultural outlook.

8. That the Commonwealth Science Council

should explore the possibility of convening a Metrication cum Metrology Conference, treated

dichotomously , in the Caribbean and not

solely in Asia/Pacific countries, in order

that the Caribbean may benefit from proposals

for collaborative undertakings and share in

certain cal ibration facil ities and

high-capital -cost testing equipment.

DISCUSSION :

Professor David S. Lieberman:

I think one should very early separate

science and technology, the one having

supposedly no avowed purpose, and therefore

being capable of discovering new things,

since it is not controlled in any way, and

the other having the purpose of having to

satisfy social problems in a given country.

I think it is very important that the

scientists and engineers be taught somewhat

differently, even at the undergraduate level,

and not be allowed to think that they are all

scienti sts.

Mr. Hamilton Herman:

It would seem to me that in response to the

problem of coming up with the highly trained,

skilled people for the standards functions,

that this is one of the areas where some of

the regional laboratories can be most useful,

because now you can pool your funds and your

technical facilities. Is there some hope

that you could use a regional approach in

meeting these needs?

Mrs. Lawrence:

I do not know how much hope there is in that

respect. There is a regional body in the

Caribbean area, but that body is not in a position to give the kind of assistance that

Guyana presently needs. Basically, what they

do is pull together inputs from the various

CARICOM members, and seek to harmonize the

standards that exist at the particular time.

86

Mr. Owino-Okwero (Kenya Bureau of

Standards)

I think that what you said about regional

cooperation is very significant, but from my

experience of Black Africa, the politics are too dynamic for this sort of cooperation. We

have had an experience in East Africa when we

had a regional standards organization, that

didn't last a year. We worked all the time

night and day to establish it, only when we

got it set up, it got broken. So these are some of the problems. We hope that we can surmount them soon.

Mr. Hamilton Herman:

Most of the time, if you have some regional

cooperation, all those people who are cooperating would be almost in the same boat,

all need some help. So sometimes you have to

go somewhere else.

Comment from floor:

You also have the problem of economies of

scale, that unless you have some minimum

funding you cannot have basic industrial

development. So that if you are a smaller

country, it would seem that regional

cooperation is your only hope.

Dr. Al-Khalaf:

I think any cooperation between any two

countries is much better than doing it

individually, there is no question about it.

Cooperation, I think, is very important.

Mr. Baron:

It seems to me that for many of the smaller

countries, in fact, the problems of foreign

exchange, of importing know-how, of skilled

people are really very difficult. It seems to me in this connection there are really

opportunities for technical cooperation among

the developing countries themselves, as was brought out in the conference in Buenos Aires

last summer. I think that increasingly we need to look at the possibilities of

technical cooperation and assistance from the

developing world to the developing world.
PAPER 3.4 - STANDARDIZATION IN PANAMA

Ing. Maricela Ferrer de Chan, Director

Comision Panamena de Normas Industriales y Tecnicas

Ministry of Trade and Industries

Panama City, Republic of Panama

Panama is located in Central America, with a population of 1.7 million inhabitants and

75,000 square kilometers. The history of our country is very recent. With the obtaining

of independence from Colombia in 1903, and

both before and after, our economic

orientation was toward trade and commerce,

because our main resource is our geographical

position.

After the second war, in 1950, development

began. Until now, we can say that we have

not developed industry in general very much.

A lot of effort is going on within the

government, more than ever, to help the best

growing of industry. It is significant to

know the relationships between the producers

of knowledge, such as the universities, the

government, and the productive sector. I am

going to try now to identify each sector with

its main characteristics.

The producers of knowledge: We have two

universities, one public and one private

(Catholic). At the public university we have

now 32,000 students in different fields.

Little research is done, because the

professors at that level are primarily

occupied with teaching, and what they do in

research is more of the type that they give

to the students for theses. Only in medicine

and other limited areas is serious research

done. There exists some relationship between

some industrial sectors -- for example, food

and engineering — and the university,

through the services that the university does

for them.

The productive sector is characterized by

high speed machines, that can in some cases

be working at 40% of capacity. That is not

appropriate for a country which needs to use more manpower efficiently. Some of the

industry is producing through license

agreements and do not do any research,

because this is done at the main plants

abroad.

On the government side, as the result of a proposal of the Panamanian Society of

Engineering, an industrial syndicate, and the

University of Panama, there was created the

Panamanian Standards Commission. The

Comision Panamena de Normas Industriales y

Tecnicas-COPANIT was established by the

Cabinet Decree No. 282 of August 13, 1970, as an appointed organization of the Ministry of

Trade and Industries, and, through

coordination of the Department of Standards

within the General Administration of

Industries. At that time, the scope of this

department was to study, elaborate, modify,

and propose before the Ministry of Trade and

Industries, the adoption of technical

standards for the Republic of Panama.

Likewise the Department was in charge of the

establishment of the necessary technical

commissions, designated to achieve the

objectives mentioned above, in every one of

corresponding industrial and technical

branches.

At the present time, C0PANIT has enlarged its

objectives to include the quality control and

metrology areas (conversion to the

International System of Measurements - SI).

However, attention is directed here to the

technical standardization section.

It was not until 1971 that this Department

began its task of standardization completely.

Since then, up to this time, C0PANIT has

issued 236 Panamanian official standards, of

which 50% have been realized during the more recent years. This fact is a distinctive

sign of the growing conscientiousness among

the groups that participate in the process of

standardization. Actually, this section is

working in 13 different areas of science and

technology. It is hoped that the involved

sectors continue their best working action of

mutual cooperation in order to enable this

department to end the year with the

presentation of 55 documents properly

polished and officially approved.

87
Technical standards are submitted for review

and adoption to the following hierarchical

order: Technical Committee of Director of

COPANIT, Panamanian Standards Commission, and

the Minister of Trade and Industry. The

priority of efforts is established by means

of consultations with all representative

sectors of the country for the purpose of

determining the topics of standardization for

which importance and need justify inclusion

in the program. The topics included in the

program support objectives previously

determined by aspects of the industrial,

economic, and social development of this

country. Furthermore, the topics follow a logical sequence in such a way that the study

of the standards concerning raw materials,

testing methods, and general classifications

permits a rational approach to quality

standards or product standards.

The integration of the work of the technical

committees must offer a satisfactory balance

among the interests of the following groups

or sectors:

Production : Corresponding to the

industries and enterprises that can be listed

for the group of goods; producers, directly

or indirectly.

Consumption : Corresponding to the consumer or distributor entities and those

persons, whether natural or juridical, who

can be classified in the category of goods

and services consumers.

General Interest : Corresponding to the

entities and persons, for which the nature of

their activities can be considered unrelated

to self-interest within the process of study

of the standards: research institutions,

technological institutions, etc.

For the purpose of providing national

standardization with an efficient team

capable of managing the operations performed

in this field, COPANIT has participated in

the following training activities:

a) "Water Bodies Pollution Control", at

the Central American level (Panama).

b) "First Central American Course about

Public Administration and Environmental

Protection" (Costa Rica).

c) "Training in Technical

Standardization, at Departmental Level"

(Colombia)

.

d) "Third Pan American Course in Integral

Standardization" (Mexico).

e) "Regional Composite Conference FAO/OMS

about Food Standards for Latin America

(Mexico)

.

In this year a new organization was created,

the National Commission of Science and

Technology, with the purpose of the

establishment of the goal of the policies for

science and technology in the Republic of

Panama, in agreement with the National

Development Plan. In 1972, the University

was created a center for development of the

national scientific capacity, with the

objective of doing more research and

retaining trained scientists in the country.

All of these entities will work together in

the new Science and Technological Commission,

and I hope the coordination between all of

them will work wel 1

.

38
PAPER 3.5 - STANDARDIZATION AS SEEN IN TANZANIA

T. Rajaraman

Technical Manager

Tanzania Bureau of Standards

Dar es Salaam, Tanzania

I. TBS CONTRIBUTION TO THE PREPARATORY

ACTIVITIES OF THE TANZANIA NATIONAL

SCIENTIFIC RESEARCH COUNCIL FOR THE

UN CONFERENCE ON SCIENCE AND TECHNOLOGY

FOR DEVELOPMENT 1979

1. SCIENCE AND TECHNOLOGY FOR DEVELOPMENT

1 .1 The Choice and Transfer of Technology

for Development

Standardization is one of the basic

components which any infrastructure must

include in order to develop a sound economy.

A well -planned standardization programme is

the foundation on which to build up the store

of knowledge which a country needs in order

to be able to assimilate imported technology

and utilize its own potential. It is a prerequisite for improving domestic quality

and, hence, for becoming competitive on the

world market.

(This was the philosophy behind the

initiation of standardization activities in

Tanzania. The Tanzanian Bureau of Standards

was established under an Act of Parliament,

which was modeled against a model law

prepared by ISO to have a systems approach

for national standardization work in

developing countries. This bill assigns

responsibilities for preparation of

documentary standards, certification (both

internal and external), and metrology

services. The work has just been initiated,

and we hope that it will have a good start in

the near future.)

Standardization is understood to be the

activity of establishing and applying

technical rules in the form of standards.

Standardization means, of course, the issuing

of rules for the manufacture and use of

products and processes but must be understood

in its broad sense: standards cover scientific principles, terminology,

specifications of products and methods,

methods of test and, even more important,

rules for the safety and protection of mankind.

89

In the category of scientific principles,

there are standards which give basic data and

conventions for use in mathematics, physics,

and chemistry. Examples are mathematical

symbols, physical quantities, units of

measurement, and statistical methods.

The heading "terminology" covers not only

definitions of concepts with the

corresponding terms, but also the

harmonization of symbols in different fields.

Standardization includes the establishment of

artifical languages: programming languages

for data processing. The role of

standardization in achieving worldwide

understanding can never be over-emphasized:

without consistency of technical language,

transfer of technology is impossible.

Specifications of products and methods

primarily concern the "traditional" fields:

building construction, electrical engineering, and mechanical engineering. However,

they also include medical research methods,

highway markings, documentary methods, office

organization (e.g., paper sizes). Hence,

standardization extends far beyond the purely

industrial areas.

Before a characteristic, such as stiffness in

bending, can be specified, the method of

testing the characteristic must be known.

For purposes of quality assurance, it is

essential to have uniform test methods. The

basic importance of quality control has been

recognized by the developing nations, and

standards are a prerequisite for quality

control

Safety aspects must not be overlooked when

product quality is being assessed.

Governments are looking more and more closely

into the question of ensuring personal

safety, and safety standards set out the

necessary precautions to be taken in order to

achieve this. Other standards are concerned

with protection from environmental hazards or take knowledge of ergonomics into account.
Thus it can be seen that standards broadly

reflect the state-of-the-art. By making use

of existing technical data, standards find common solutions to recurring problems and

consequently avoid waste in both materials

and manpower. They lead to compatibility of

industrial practices in the different

countries.

1 .2 Elimination of Obstacles to the Better

Utilization of Knowledge and

Capabilities in Science and Technology

for the Development of All Countries,

parti culary for their use in developing

countries

Although standardization forms only a part of

the overall technical activity, as can be seen from the foregoing, it plays a vital

role in sophisticated technology. In

industrialized countries, the beginnings of

modern standardization go back about a hundred years (metre convention, standard

time zones)

.

In Tanzania, standardization activities have

just commenced with the establishment of the

Tanzania Bureau of Standards under an Act of

the Parliament. The technical work has

been divided nto the following sectors:

i. Agriculture and Food

ii. Building and Construction

iii. Chemicals

iv. Mechanical and Electrical

v. Textiles

The technical committees have identified

priorities for standardization and it is

hoped that several standards will be

published within a year.

It is, however, especially important to

promote international standardization so as to eliminate obstacles to a better use of

knowledge and competence in science and

technology. TBS proposes to enroll itself as

a member of ISO.

International standards operate as a vehicle

for the transfer of technology. The active

participation and interest shown by over 80

countries in ISO and IEC activities indicate

that International standards represent an international consensus for the optimum

solutions to problems related to

standardization. The existence of

International standards makes it possible for

a standards body in a developing country to

get round the problem of making the difficult

political choice of which country's standards

to take as the basis for its own national

standardization. As a matter of fact, until

recently national standards were the only means whereby the standards technology of

developed countries could be transferred to

the developing countries. The tremendous

growth of international standardization means

that the developing countries, like the

developed countries, can use the work of ISO

and IEC more and more to meet their needs for

standards

.

It has been estimated that only 2% of the

world's scientific and technical resources

comes from developing countries. At the same time, the developing countries are endeavouring to lessen their technological

dependence on the industrialized countries

and to stem the present outflow of money for

the acquisition of technology. By

comparison, International Standards are readily available to developing countries and

involve only a minor outflow of money.

2. INSTITUTIONAL ARRANGEMENTS AND NEW

FORMS OF INTERNATIONAL COOPERATION IN THE

APPLICATION OF SCIENCE AND TECHNOLOGY

2.1 The Building Up and Expansion of

Institutional Systems in Developing

Countries for Science and Technology

Suitable institutional mechanisms for the

preparation and adoption of standards in

less-developed countries and a well-planned

standards programme are important components

of the infrastructure and are prerequisites

for a successful transfer of technology from

industrialized countries to developing

countries. The national standards body plays

a decisive role in the systematic development

of the national economy and should be

included in the planning work at the earliest

possible point in time. It is further

desirable for the national standards body to

have the power to act in a coordinating

capacity as regards standards work and

technical regulation for the overall economy.

A lack of coordination in the early stages of

a country's development may have adverse

consequences which will later be difficult to overcome.
It is also highly desirable to ensure participation in international standards work

at an early stage of development. There are,

for example, many international standards

published by ISO (especially basic standards

concerning quantities, units, symbols,

technical drawings, tolerances, terminology,

or the large number of standard methods of

test) which are not dependent on any given

level of technical development and can be

taken over directly as national standards by

the developing countries. This means that

the standards institute of a developing

country can begin with a collection of basic

national standards without going through the

long, arduous process of setting up and

maintaining committees to publish standards

on these subjects. Nevertheless, it is

important for the national standards body to

have the possibility of influencing the

choice of subjects and the direction taken by

international standardization and to ensure

that its needs are fully taken into account

during the preparation of international

standards.

Finally, it is advisable for the national

standards body to be responsible not only for

the preparation of standards but also for

monitoring and supporting their application.

In developed countries, the application of

standards can usually be left to the

manufacturers: they have qualified technical

staff who are able to ensure that production

is in accordance with the existing standards,

and they have the necessary experience and

know-how at their disposal to be able to

exercise quality control without assistance

from the outside. In a developing country,

the national standards institute can play an important role in the promotion of exports by

working out suitable national standards and

setting up a system of product control and

marking which promotes compliance with these

standards and quality goods for export.

As far as the country which I represent,

Tanzania, the government is very well

conscious of the importance of

standardization, and is giving very good

support for its program of work. Funding is

not a problem for us. We hope that

standardization will play a very important

role in the development of the economy.

II. STANDARDIZATION IN TANZANIA

1. INTRODUCTION

Standardization is a recent factor in

development of the economy of Tanzania.

Basically, the economy of Tanzania is

agricultural with the commercial and

manufacturing sectors being second and third

in importance. However, the industrial

branch of the economy is presently

registering the highest rate of growth.

Although the need for standardization has

been felt for a long time, a real effort to

introduce standardization and quality control

in the national economy was made only about

three years ago, when the government set up

the Tanzania Bureau of Standards (TBS) under

an Act of Parliament (Act No. 3 of 1975), and

standardization was included as infrastructure for development of industry in

the Five Year Development Plan. TBS was created as parastatal organization and is

fully financed by the government.

2. AIMS AND OBJECTIVES

A principal aim of the TBS standardization

programme is to meet the national interest

by the stimulus it imparts to industrial

development. Such an activity, in the main,

involves the preparation and enforcement of

relevant national standards in the different

industrial branches and the gradual

establishment of a guide to nationally agreed

industrial practice which will render

production units economical , enhance outputs

of reliable quality levels, and foster import

substitution.

The national standardization programme

equally aims to protect the consumer's

interest by virtue of this order and the

benefits it introduces into national

production and commerce as regards both

locally produced items and imported goods.

The programme also concerns itself with

health aspects, safety requirements, and

codes of practice.

Another important objective of TBS is to

promote the country's export items, which are mainly primary products, by defining and

certifying their quality levels. Through

such an exercise the country will be in a
favourable position of gaining powerful sales

arguments in international markets.

A still further major and important objective

of TBS is to facilitate commerce and the

orderly transaction of goods as well as to

provide calibration services to industries

through its broad national metrology

programme which is linked with the TBS

standardization activity.

Finally, as one looks into the future, one

sees vividly that the conservation of scarce available resources and the attainment of an optimum overall economy are the far-reaching

aims of a national standardization programme.

In this context, therefore, the need to

constantly widen the field of application and

promote the rate of development of the

standardization activity makes the national

standardization programme a dynamic process.

Moreover, such a national effort needs to be

coordinated with multinational and

international concerns and requirements in

order to further achieve the aims underlying

the national interest.

Moreover, standardization tasks are interdependent and, in fact, each is a prerequisite of the other, thus rendering

isolated standardization efforts quite

futile. Hence, precise defining of

standardization tasks, better correlation of

such tasks with national objectives and

economic needs, and proper coordination or harmonization of task levels are all

necessary in order to effect a meaningful

standardization programme.

3. ORGANIZATION AND WORK PROCEDURE

TBS is a parastatal body. It has two main

organs the Executive Council and a permanent secretariat headed by the

Di rector.

The Executive Council, which consists of

representatives from the concerned

ministries, university, industry, etc., and

whose members are appointed by the Minister

for Industries, is the governing and policy

making organ of TBS and as such approves all

draft standards, the annual programme of

work, and the budget of TBS. The Director,

assisted by the Technical Manager and

Executive Secretary, is responsible for the

conduct of activities of TBS.

The technical work is carried out at present

through five divisional standards committees,

namely:

a) Agriculture and Food.

b) Chemicals.

c) Building and Construction.

d) Mechanical and Electrical.

e) Textiles.

These divisional committees have a number of

technical committees, and all of them are fully representative of manufacturers, users,

research bodies, technical experts, etc.

Such technical committees are established for

individual economic and industrial fields by

the decision of divisional standards

committees upon recommendation by the

Director.

The work procedure of TBS concerning the

preparation and issuance of Tanzania

Standards (TZS) follows the universal

"consensus method" practiced nationally and

internationally. General surveys and

investigations are initially conducted by the

TBS secretariat for inclusion in the

programme of work.

4. PROBLEMS AND PROSPECTS

A major problem area concerning the

investigation of standardization needs and

the preparation of the work programme is the

fact that the needs are vast and pressing for

the young TBS.

Consequently, the establishment of priorities

and the task of planning ahead become real

difficulties. TBS needs to make breakthroughs in different fronts and fields of

standardization, yet the limited resources which TBS commands, the time factor itself,

and the lack of pertinent technical

information and data are limiting factors.

Moreover, the availability of only a few

technical experts representing industry

groups, research bodies, user interests,

etc., limits the creation of specialized

technical committees, consequently the

committee structure is overburdened and the

work is either prolonged or insufficiently

considered.
The validity and suitability of existing work

procedures and methodology need to be,

therefore, questioned if not reviewed in the

light of standardization requirements at the

different levels and stages of development.

The possibility of reinforcing the prevailing

methodology by integrating the administrative

and research approach with the consensus

method of preparing standards needs to be

explored, depending on the type and level of

development of the national standardization

programme. The balance can always be

maintained at the point which the situation

demands, the criterion being the need to

produce usable standards in time.

5. MEASUREMENT SYSTEMS

The pattern of organization of precision

measurement facilities in Tanzania is more

or less the same as that found in many

developing countries. In these countries,

there is no single body which is responsible

for precision measurement. In other words

the National Measurement Standards Laboratory

does not exist. The body responsible for

"weights and measures" has its principal

standards directly verified by the

International Bureau of Weights and Measures

or by a foreign National Measurements

Standards Laboratory. The subsidiary

companies (of foreign based firms) can still

have their equipment, gauges, etc., supplied

and verified through the parent companies,

and their standards are, therefore, traceable

to international standards through foreign

National Measurement Standard Laboratories.

Local companies, research institutes,

universities, and government laboratories are

not so fortunate. While it is true that the

imported measuring equipment of these

organizations is traceable to international

standards at the time of purchase, by virtue

of the fact that the instrument suppliers can trace their standards back to international

standards, it is, however, obvious that a gap

exists between a local company, research

institute, university, or government

laboratory, and its respective instrument

suppliers. Though the initial calibrations

can be traced to the suppliers at the time of

purchase, these organizations do not maintain

these links to the international standards

because they do not submit their equipment

for recal ibration. Many of the companies and

institutes which do not have calibrations

updated, recognize the need for

recal ibration; but because the amount of

money made available for maintenance is so small, they cannot afford to meet the costs

involved in transporting the equipment to a foreign National Measurement Standards

Laboratory or the test fees involved.

The standard of measurement and testing

facilities, and therefore of facilities for

good quality control, varies widely among the

developing countries, Tanzania being no exception. In Tanzania, facilities are very

elementary indeed, and quite inadequate to

support even a modest industrial development.

In view of this, special emphasis was placed

on establishment of a metrology set-up within

TBS.

6. CONCLUSION

TBS has made a modest beginning and five

divisional standards committees have

started functioning. Several priority areas have been identified, and the work of

formulation of standards on products for mass

consumption, such as aerosol insecticides,

mosquito coils, animal feeds, edible oils,

soaps and detergents, etc., are in progress.

A plan for building a complex for testing and

metrology laboratories and offices of the

Bureau has been finalized and the Swedish

International Development Agency (SIDA) has

kindly agreed to fund the programme. Further

assistance from international agencies such

as USAID and UNDP are being explored for

future expansion of the infrastructure in

terms of testing facilities and manpower to

meet the aspirations of the country for

self-reliance and a reasonable view of

quality in products and services provided.
PAPER 3.6 - VIEWS ON STANDARDIZATION

J. E. Owino-Okwero

Principal Standards Officer (Engineering)

Kenya Bureau of Standards

Nai robi , Kenya

I. THE KENYA BUREAU OF STANDARDS, AND ITS

BUILDING AND CONSTRUCTION SECTION

1. INTRODUCTION

The Kenya Bureau of Standards (herein

referred to as "KEBS") was established by an Act of Parliament called the Standards Act,

1973, - No. 17 of 1973. The date of assent

is 16th January, 1974, and date of

commencement is 25th January, 1974.

The Standards Act is arranged into the

following Sections and Parts:-

Part 1 - Prel iminary.

1.1 Short title and commencement.

1.2 Interpretation.

Part 2 - The Kenya Bureau of Standards.

2.1 Establishment of the Bureau.

2.2 Functions of the Bureau.

2.3 Director and staff of the Bureau.

2.4 The National Standards Council.

2.5 Powers of the Council.

2.6 Financial provisions.

Part 3 - Establishment of standards.

3.1 Standardization marks.

3.2 Compulsory standard specifications.

3.3 Appeals.

Part 4 - Enforcement.

4.1 Samples and information.

4.2 Appointment of inspectors.

4.3 Powers of inspectors.

4.4 Obstruction.

4.5 General provisions.

Part 5 - Miscellaneous.

5.1 Protection of Government, Institute,

Council and members and employees.

5.2 Secrecy of information.

5.3 Victimization.

5.4 Regulations.

2. FUNCTIONS OF THE BUREAU (KEBS)

(a) To promote standardization in

industry and commerce.

(b) To make arrangements or provide

facilities for the testing and calibration of

precision instruments, gauges, and scientific

apparatus, for the determination of their

degree of accuracy by comparison with

standards approved by the Minister on the

recommendation of the Council, and for the

issue of certificates in regard thereto.

(c) To make arrangements or provide

facilities for the examination and testing of (S1 commodities and any material or substance T from or with which and the manner in which

they may be manufactured, produced or processed or treated.

Sii (d) To control, in accordance with the

provisions of this Act, the use of ^ standardization marks and distinctive marks, v

lei

94

(e) To prepare, frame, modify, or amend

specifications and codes of practice.

(f) To encourage or undertake educational

work in connection with standardization.

(g) To assist the Government or any local

authority or other public body or any other

person in the preparation and framing of any , specifications or codes of practice.

(h) To provide for cooperation with the

Government or the representatives of any

industry or with any local authority or other ^ public body or any other person, with a view

to securing the adoption and practical

application of standards.

(i) To provide for the testing at the

request of the Minister and on behalf of the

Government, of locally manufactured and

imported commodities with a view to determine

whether such commodities comply with the

provisions of this Act or any other law

dealing with standards of quality or description.
THE MINISTER FOR COMMERCE AND INDUSTRY

NATIONAL STANDARDS COUNCIL

I DIRECTOR KENYA BUREAU OF STANDARDS

ASST. DIRECTOR - SPECIFICATION DIVISION ASST. DIRECTOR - TECHNICAL SERVICES

DIVISION

PRINCIPAL STANDARDS OFFICER

(ENGINEERING)

PRINCIPAL STANDARDS OFFICER

(FOOD AND AGRICULTURE)

MECHANICAL

DIVISION

Figure I. Typical Structure of Kenya Bureau of Standards

BUILDING AND CONSTRUCTION ELECTRICAL

SECTION SECTION

I SPECIFICATIONS DRAFTING

TECHNICAL COMMITTEES

(STEEL, CEMENT AND CONCRETE,

TIMBER)

3. THE BUILDING AND CONSTRUCTION

SECTION

Since the section became fully operational in

May 1975, it has established three major

Technical Committees in operation—namely,

Timber, Cement and Concrete, and Steel

Technical Committees. The emphasis was on basic materials, since a lot of these are from natural sources and influence very much

the design principles.

The standards already covered are as follows:

(a) Timber : (i) Specification on sawn timber.

(ii) Nomenclature of commercial timber

of Kenya.

(b) Steel : (i) Specification on steels for

building and construction - The

standard details the requirements

for the supply of materials used

for manufacture of hot rolled

steel products, cold formed steel

products, hard drawn steel wire,

and steel sections. The materials

included may be in the form of

billets or ingots and the

semi-finished products may be in

the form of steel sheets, flat

rolls, or coils for wire drawings.

(ii) Specification for hot rolled mild

steel for reinforcement of

concrete.

(iii) Specification for cold formed

steel sections.

(iv) Specification for cold formed

steel sections generally available

in Kenya.

(c) Concrete/Cement : (i) Definitions and terminology used

in cements.

(ii) Specification for ordinary

Portland cement.

(iii) Code of practice for detailing

reinforced concrete in Kenya.

(iv) Specification on aggregates from

natural sources.

The above specifications were the initial

documents that the section felt were needed

for a newly established standards

organization. Many more standards have been

drafted in the section.

The Building and Construction Section follows

a certain pattern in drafting standards in

relation to buildings in and for Kenya.

Briefly, these are as presented in Table 1.

95
Table 1: Information required for control

Title Exampl es Notes

A

B

C

D

F

G

H

Environmental factors

Functional requirements

Required characteri sties

Techniques for design

Techniques for

contruction work

Techniques for

operation and maintenance

Product specifications

Performance assessment

and qual ity control

Techniques for

documentation

Standardization

principles

CI imate

Occupancy

Safety against collapse. Noise

levels. Means of escape from fire.

Ventilation—optimum conditions

for air movement.

Structural character,

resistance periods.

Fi re

Structural design. Measures for

noise control. Design of parts.

Specifications for preparation of

materials. Specifications on workmanship.

Operation of plant. Recommendations

for maintenance.

Specification of materials. Dimensions, properties, and performance.

Methods of test and assessment,

i .e. , procedures.

Presentation of technical information. Use of symbols. Graphical

presentation.

Quality assurance of standard

dimensions. Coordination with

other relevant standards.

Independent of design- ers control .

These are related to

national interests.

Derived from functional

requirements.

Comprises both the

design of systems and

of parts. Wind frequency analysis. Solution to problems arising from chosen form of

construction.

Mainly for site use.

Either in relevant

standard or separate,

where they apply to

more than one product.

Refer to basic standards requirements.

Mainly used by staff

or senior Committee

members.

4. THE BUREAU ACTIVITIES

The establishment of the Bureau noted the

problems faced by the country's measuring

instruments industry. The Bureau had to take

immediate measures to draft a national

standard on units of measurement, which was recommended for the whole industry and for

investors into Kenya.

The Bureau further contacted the Government

for establishment of a Metrology Centre. In 1976-77, we managed to conclude an agreement

with PTB of Germany to finance and train our

96

manpower and to construct a metrology centre

in Nairobi. It is currently under

construction and will be ready for operation

in January 1980. The Metrology Centre will

provide services to the industry in

scientific metrology, calibration services,

and instrumentation. This project is being

carried out in collaboration with a foreign

metrology services organization and the terms

of the agreement include training facilities

for the Bureau staff on the instruments they

will use in Kenya—which is currently going

on for 12 scientists and engineers.
General training of staff of the Kenya Bureau

of Standards has been very much emphasized

during the last three years since

establishment. Training has been realized

through other National Standards

Organizations, e.g., in Japan, Britain,

Sweden, Germany, India, NBS-USA, Australia,

and the defunct East African Community. This

training has helped bring divergent

experiences into the Bureau which has helped

in accelerating the Bureau activites.

The Kenya Bureau of Standards organizes every

year in October—one is going on now—

Company Standardization Seminar, to which we invite all technical officers of industry, at

the graduate level or higher, who are involved in running of the processes or running of industry or design of it, etc.

This happens every year. We require them to

pay a nominal fee, about $30. We keep them

there for 12 days, after which they go back

to the industry. We give them projects, they

come back after two weeks, and we review what

they have found out and tell them how to do

it. The lecturers for these seminars are drawn from the staff of the Bureau. After a number of us had gone out for training, say,

six weeks in Britain or Japan or Sweden, we

said now we don't want any more experts to

come, we already have the indigenous experts,

so read the papers, read the documents, teach

the boys how to do quality control in their

industries and how to set up company

standardization, and maintenance manuals, and

the rest of it. So that is done by all of

us, Kenyans. The event has been very popular

among the industrialists in Kenya, although

the upper hand of the foreign element in the

investments has been uncooperative in most

cases.

Although it is not easy to realize

immediately the activities of a Standards

Organization in the economy of most

developing countries, there are prospects of

the organization being very important in the

day-to-day management of the economy in order

to create more order in goods/money-worthness

and quality.

II. INPUT TO U.S. PREPARATIONS FOR THE UN

CONFERENCE ON SCIENCE AND TECHNOLOGY FOR

DEVELOPMENT

I will address myself to the problems of my

country and the problems of most of Black

Africa, not just Eastern Africa. I will not

address myself to the problems of Korea -- it

is at the head of the queue.

The Seminar is supposed to give NBS and the

United States Government some background data

relevant to the UN Conference on Science and

Technology for Development. I will give this

as my personal view in terms of what should

be done in an economy of the Kenya model.

The first and foremost problem, which has been

taken up by most of you, is manpower

availability. We need trained manpower, we must have a committed manpower, before we can

have an effective standards organization. To

train this manpower, what must we do? I am going to address myself to solutions of how

best, I think, this should be approached.

1. In newly industrializing countries, the

system of standardization should be

considered the most effective means of

management of the national economy and should assume a compulsory status.

2. Newly industrializing countries must

develop an accumulation of indigenous

know-how and manpower to help in a suitable

standardization process. The development of

this capability and ability could be achieved

through the following systems:

(a) Consultancy Services — whereby

collaboration or joint ventures are worked

out with indigenous firms or personnel for

transfer of know-how in methods of work

analysis, evaluation, and design principles

consideration. This should cover industrial

processes, investment feasibility studies,

operation, installation, and management

procedures.

There are a number of projects that are going

on in developing countries, consultancy

services. All these things involve lots of

technology. They involve lots of knowledge

that the developing country can accumulate,

for their own manpower. And these

consultancy services are normally carried out
without a single indigenous person involved

in this sort of thing. The aid comes in,

then they go. They say, all right, you do

need the fish, eat it. You eat it today, but

you cannot fish another fish the following

day.

(b) Investment Agreements -- whereby

training programs covered are geared towards

genuine take-over by indigenous personnel

within the period agreed to at the inception

of the project but not a situation wherein

the investor manages indefinitely by crisis.

These agreements must contain all maintenance

and operation clauses geared to the education

of the recipient countries in these aspects.

Most of the agreements for investment in

developing countries lack a take-over and a training portion. A lot of know-how is still

retained, as the foreigner or the investor

comes in and says, "Look, if that switch goes

off and that portion of the transformer is

blown, we'll call in Joe from Colorado."

Well, this is costing a number of developing

countries a lot of money, yet all the systems

could be taught, and they should be.

3. Training programs should be encouraged

between newly industrializing and

industrialized countries for exchange and

review of progress made in achieving

industrial development and also to train

management Technocrats from newly

industrializing countries. These programs

should be convened more often at regional

levels in order to address the participants

to their specific needs and capabilities.

4. All newly industrializing countries

should be encouraged and assisted to form

standardization organizations -- which must

include specification divisions and

certification in quality control sections.

5. Newly industrializing countries should

have a system of developing the indigenous

use of their resources, particular emphasis

being placed on raw materials, i.e., major

cash crops development.

6. Major research and development projects

must not and should not take the shape and

interest of only developed nations, e.g.,

solar energy all over the world oriented

towards heating rooms as alternative energy

-- rather newly industrializing countries

should direct their research to developing a solar kettle for tea making or a solar

pressure cooker for use by rural communities

who cannot afford the high cost of fuel and

to control desert approach through saving our forests.

7. The social standards should be respected

and supported. There are a number of

international investments going on like

housing developments and industries, which

ignore the social habits of the people.

These are all standards within themselves.

They need to be maintained. And I think that

we ought to incorporate and make this a component part of investments, that the

traditional habits and the traditional

standards are maintained while we are trying

to invest and get these amenities through to

the local people. The main anomaly has been

noticed in housing schemes, where housing

provided rarely serves the social problems

although it provides shelter.

8. I would recommend that the United Nations

make it compulsory that all members of the

United Nations should have a standardization

organization established in their countries.

All of us here have known the significance of

this organization, and the significance of

having a standards body. We should make sure that others, also, who have not been aware,

benefit out of it, and this is the only way

that we can create a unified system or unified order, all over the country.

In conclusion, I say that although the

present level of industrialization of most

countries is increasing, as for our future,

it is based mainly on the assistance that we

can get from industrialized countries. I also feel that industrialized countries have

the ability and the capability either to

resist or to implement industrial development

in less-industrialized countries. And I only

hope that we shall have a more humane

cooperation, that although you have the means

to resist, you also have the means to

implement, that we compromise and get these

things done, for the benefit of all of us, as

a human race.

98
PAPER 3.7 - PROGRESS OF STANDARDIZATION IN THE SUDAN

Abdel Gadir Suliman

Director General

Department of Standardization and Quality Control

Ministry of Industry

Khartoum, Sudan

1. INTRODUCTION

Sudan realized the importance of

standardization long ago. Early in 1961, the

Ministry of Commerce, Industry and Supply

invited a division chief officer from the

British Standards Institute to give advice on the matter and to study the possibility of

establishing a national standards body.

After viewing the structure of the industry,

he recommended that a small panel of experts

with technical knowledge of the conditions

under which imported goods and materials are used, should first be appointed. This panel,

which should later develop into the official

Sudanese Institution for Standardization,

should as a first step obtain the official

standards applying to certain imported

products, and should study through short

missions to the factories of the countries of

origin, the possibilities of improvement or simplification to suit local requirements and

conditions. Tentatively, specifications

should be prepared and should be kept under

constant review during their application.

Unfortunately, for various reasons, it was

not possible to put these recommendations

into effect.

2. SPECIFICATION AND MECHANICAL TESTING

DIVISION AT THE INSTITUTE

The Industrial Research Institute, which had

been established in 1965, is a national,

non-profit-making institution. According to

its act the Institute is supposed to assist

the Ministry of Industry in preparing

Sudanese Standard Specifications for

industrial and commercial products. So in

1967 a small section was formed to start the

work on standardization. The work

accomplished by this section till the

formation of the Sudanese Organization for

Standardization in 1968 could briefly be

summarized in the following:

1. Establishment of a library containing

most of the National Standards (British,

Indian, DIN, etc.).

2. Preparation of about ten drafts

standards for different industrial products

which are manufactured locally.

3. Assisting the Ministry of Industry in

formulating the constitution for the Sudanese

Organization for Standardization.

4. Publishing a manual to be as a guide

for members of the technical committees.

3. SUDANESE ORGANIZATION FOR

STANDARDIZATION (S.O.S.)

In 1968, S.O.S. was formed in accordance with

the Organization and Promotion of

Industrial Investment Act 1967.

A council including most of the concerned

official and non-official Ministries and

bodies was then formed, headed by the

Permanent Under-Secretary of the Ministry of

Industry. The Council set up four permanent

committees, and technical sub-committees were

established. This organization did nearly

nothing in the field of standardization

during its four-year period of existence.

4. STANDARDS AND QUALITY CONTROL

DEPARTMENT

In 1972 the Promotion of Industrial

Investment Act was amended and at the same time the whole structure and organizational

chart of the Ministry was rearranged as shown

in the attached chart. Accordingly, the

Standard and Quality Control Department was formed with the following functions:

99
Organization Chart for the Ministry of Industry

Minister

Leather

and

PI astics

Corp.

Sugar

Corp.

Food

Corp.

UnderSecretaryTextile

Corp.

Edible Oil

Corp.

Industrial

Control Dept.

Concessions

Dept.

Industrial

Projects Dept,

Personnel

Dept.

Importation

Dept.

Industrial

Costing

Dept.

Standards

and

Qual ity

Control Dept.

(a) To prepare and promote standards at

the national level with the cooperation of

all other institutions and other concerned

bodies.

(b) To cooperate and exchange information

with the other national, regional, and

international bodies in the field of

standardi zation.

(c) To undertake tests and analyses of

the locally manufactured products and to

issue certificates accordingly. The tests

are usually done in one of the specialized

laboratories, namely:

1. Sudan Industrial and Consultancy

Research Institute.

2. University of Khartoum

Laboratories.

3. Ministry of Health Laboratories.

4. Food Research Institute.

5. Building Material Research Centre.

6. The laboratories of the factories

themselves (sometimes).

(d) To give advice and help existing

industries on matters of quality control.

The Department has carried out a lot of work

until now in the field of standardization.

It is now a member of the International

Organization for Standardization (ISO), and

the Arab Organization for Standardization and

Metrology (ASMO). Steps have been taken now

to join the newly formed regional African

Organization. The Department is preparing

and finalizing a number of standards every

year, alongside with the continuous checking

of the locally manufactured products.

5. CONCLUSION

As can be seen, the real work on standardization has been started recently.

So in the last two years the Department has

contacted several regional standards bodies

for helping in establishing an ideal national

standards body. The final work in this

respect is now being carried out by the

National Bureau of Standards, the Arab

Organization for Standardization and

Metrology, the Standardization and Quality

Control Department, and the American AID. We

hope the recommendations of this study will

be implemented directly.

100
PAPER 3.8 - STANDARDIZATION IN TUNISIA

Ridha Bouhalila

Director

Laboratoire Central

Tunis, Tunisia

1. INTRODUCTION

As early as 1919, Tunisia felt a need to curb

fraudulent dealings in food and agricultural products. Supply difficulties in the

years 1914 to 1918 caused a sharp drop in

quality and the emergence of substitutes.

Because of this, a decree promulgated on October 19, 1919, called for a check on fraudulent dealings in the sales of

commodities, farm products, and raw materials. Soon thereafter an official

laboratory and an inspection office to uncover and penalize fraudulent transactions

were establ i shed.

It was only after World War II that Tunisia

promoted foreign trade. This commercial

drive that permitted the country to export

farm and processed products, made it

necessary to enact and enforce export

regulations requiring exporters to adhere to

clear-cut standards of description, grading,

calibration, presentation, and packing.

When Tunisia attained independence in 1956,

most manufactured items were imported from

abroad. In the subsequent years, our government embarked on an industrialization

drive. Successive development plans placed

much emphasis on industrial development which

would enable us to achieve some of the most

essential objectives: increasing the

national income to cope with the population

rise; finding new outlets for our excess farm

produce; eliminating regional imbalances;

creation of new employment opportunities;

saving foreign currency by substituting

domestic for imported products; and earning

foreign currency by opening new markets

abroad.

As one can see, our objectives were twofold:

first a quantitative objective, which means

that Tunisia's entire industrial production

should be increased, and second a qualitative

objective, which means that production should

be geared towards more efficient economic and

social use. To this end, standards were developed for processed products, and those

1

set for agricultural and natural products were improved.

The Standardization Office, reorganized in

1962, was made part of the Office of Trade

which was responsible for setting standards

for agricultural products in cooperation with

appropriate technical departments. On the

other hand, the Industrial Product Division,

placed under the control of the

Under-Secretariat of State for Industry and

Trade, was entrusted with the task of

developing standards for industrial products.

At the same time, efforts were made to

modernize laboratory equipment in the Central

Laboratory, the National Office of Olive Oil,

the Wine Office, the Agronomical Research

Institute, the "Pasteur" Institute, etc.

Although, standards now in force in Tunisia concern almost exclusively agricultural

products and food commodities, and only few

industrial items, efforts are being made to

harmonize national standards with those in use in the countries who are our principal

customers and to extend such standardization

to other industrial products, while putting

the coordination of the whole scheme in the

hands of a National Institute of Standards.

2. STANDARDIZATION OF AGRICULTURAL

PRODUCTS BY THE STANDARDIZATION SERVICE

2.1 History

Standardization was initiated in Tunisia in

1934 under a law decreed on January 12, 1934, which entrusted this task

to the "Office Tunisien de Standardisation"

(O.T.U.S.). This included fresh agricultural

products (dates, citrus, vegetables, fruit,

cereals, wine, olive oil, fresh fish) and

handicrafts. In pursuance of the Executive

Order dated January 18, 1934, a quality

label, "Tunisia", was established in order to

certify the origin and the quality of

Tunisian products intended for export.

By a decree dated July 19, 1939, quality

control was made compul sory for some 48
The Standardization Department organization chart

Office of Trade of Tunisia

Standardization Department

Legal

Division

Documentation

Division

Technical Division

and Liaison with the

Technical Committees

Division of Standards Division

Coordination with of Active

Other Countries and Control

Laboratory Studies

products including canned foods and sea-salt.

However, this control system became effective

only after World War II, in 1946. After a number of intermediate organizational

changes in April 1972, standardization was assigned to the Tunisian Trade Office. In 1953-54, we created the Laboratoire Central,

which is a national laboratory to control all

products manufactured by the state or imported or for export.

2.2 The Standardization Department

Operating Procedures

Developing standards calls, to a great

extent, for initiative and support by

professionals both to determine criteria and

to enforce them. In pursuance of a law

decreed in 1950, the Central Standardization

Commission, which included representatives of

various interested administrative and

professional groups, was entrusted with the

task of studying all measures related to

standardization. This decree-law also

provided for the establishment of specialized

subcommissions each dealing with a specific

product or class of products, whose task was

to develop specific standards. The proposed

standards, once approved by the

sub-commission, are passed on to the

Standardization Commission in the form of a draft project. Once approved, the project is

forwarded to the supervising office to be

published in the Official Journal to become

an enforceable regulation. At present,

several executive orders dealing with

standardization, issued in pursuance of an October 22, 1953 decree, regulate the control

of fresh and processed agricultural products,

before their exportation. These executive

orders were revised, adapted to export market

requirements, and issued in 1969.

2.3 Standardized Agricultural Products

Agricultural products presently standardized

are:

a) Primary Agricultural Products

Fresh fruits: apricots, almonds,

cherries, pomegranates, melons,

peaches, grapes

Vegetables: artichokes, carrots,

marrows, green beans, turnips,

onions, leeks, potatoes,

lettuce, cucumbers, olives

Dry fruits

Citrus fruits

Dry almonds

Dates

Ground sweet peppers

Fruit pastes

Milk

Muscat wine

Shell -fish and fish

01 i ve oi 1 Olive-cake oil

Sponges

b) Preserved Foods

Canned fruits

" fruits with syrup

fruit and vegetable juices

" vegetables

" olives

" peppers (Harissa)

dry peas diluted with water

tomatoes (whole tomatoes,

peeled, ground or mashed

tomatoes)

Jams, jellies, marmalades,

preserves

Canned fish and shell-fish

102
c) Others

Ice-cream, non-alcoholic beverages,

margari ne

2 A Technical Committees

The existing technical committees are mainly

committees dealing with agricultural

products, both processed and not. They are

12 in number, namely:

The Technical Committee on citrus fruits.

" " other fresh fruits.

" " vegetables.

" " cereals.

dates

" " wi ne

" " edible oil s.

" " canned fruits.

vegetables.

fish.

" " candy.

The Technical Committee on sea-transport.

3. STANDARDIZATION OF INDUSTRIAL PRODUCTS

BY THE DEPARTMENT OF INDUSTRY

Industrial products manufactured in Tunisia

fall into two categories with respect to

standardization.

3.1 First Category: Industrial Products

Subject to National Standards. These

include building materials .

- First quality burned-clay bricks, both

hoi 1 ow and sol id.

- Mechanical tiles, authorized by an Executive Order dated May 28, 1947, based

on the advice of the Building Materials

Standardization Commission.

- Hydraulic building materials, authorized by

the Executive Orders of June 16, 1950 and

August 23, 1954, based on the advice of the

Building Materials Standardization

Commission.

- Cement rings manufactured by "El Fouladh",

authorized by Executive Order No. 67856 of

Sept. 11, 1967.

3.2 Second Category: Industrial Products

Not Subject to Standards

The establishment of the Institute of

Standards will make it possible to develop

national standards for such products.

io:

4. PROMOTION OF A NATIONAL INSTITUTE OF

STANDARDS

Under the Tunisian social and economic

development plan, an important part of this

country's resources is dedicated to creating

and expanding industrial firms in all

sectors. Centers for regional development

have been established or further extended in

Bizerte, Sousse, Gabes, Kasserine, and Gafsa,

respectively, for iron, textile, chemical,

cellulose, and extractive industries.

Furthermore, the electric, petroleum,

mechanical, metal processing, and agricultural

products processing industries are progressing well and contributing to a large

extent to the growth of the national income.

It is opportune now, after the start-up

period inherent to the creation of these

complex industries, to establish a collection

of standards in order to improve the

production, marketing, and utilization of

products intended for national needs and for

export. Such standards provide the technical

components needed for a quality control

policy and comprise basic data required not

only by industry but equally by laboratories,

research organizations, and technical

training institutions.

Surveying the present standards situation in

Tunisia clearly shows that the prevailing

conditions are most favorable for the

establ ishemnt of a National Institute of

Standards, particularly for the following

reasons:

- Control of the type that would be exerted

by an Institute of Standards is now carried

out by the Standardization Staff of the

Office of Trade for agricultural products,

and by the Directorate of Industry for

industrial products.

- A Central Laboratory, which provides the

main expertise for developing and verifying

standards, exists.

- Control is shared by the Office of

Fraudulent Products and the Control Office of

the Directorate of Industry.

A proposal for establishment of a single,

central National Institute of Standards was sent to the Tunisian Government last month,

and we hope before December that its
establishment will be approved. The motives

that led to this proposal start with why it

is necessary to have standards, some of which

has been said earlier in this paper.

We think that both for our country and for

developed countries, a standard is the means,

the tool that you have to have before all , why you have to do research, either

fundamental or applied. A standard is a reference resulting from a reasoned

collective choice, with a view to be used as

a working basis for the solution of

repetitive problems. Standardization of the

process of developing standards is designed

in particular to identify — based on specific categories of need — appropriate

ranges of products or methods best fitted to

fulfill those needs, for the intended use,

wiping away complication and superfluous

variation. An objective is simplification,

so as to permit rational production and

actualization based on the technique in use at

that moment.

Standards provide definitions,

characteristics, qualities, testing methods,

instructions for use, and so on. All these

elements can be given separately, or combined

together. Producer, distributor, user,

public administrator, scientific and

technical agency, other qualified persons —

all are required to contribute by means of

jointly conducted surveys, to the development

of Tunisian standards.

Tunisian standards will be defined and

protected by law. References to a given

standard may be made in a large number of

technical survey projects, in the operation

of processing plants, in supply programs, in

commercial exchanges, in writing

specifications, in public contracts, in

administrative regulation, in export reports,

and so on. The production, distribution, and

utilization of commodities, as well as the

national productivity will derive much

benefit from it. Such benefits can only be

established through national regulation,

excluding any alternative or contradictory

rules. The existence of national standards

and their use also provide a much stronger

position at future discussions on international standard i zation.

The present situation in our country in

matters of standardization is marked by

insufficient recognition and regulation by

laws governing this activity, as well as by a lack of adequate institutional structures.

This situation is growing more and more

unbearable, given the remarkable growth of

Tunisian industry and especially the

ambitious objectives set for our exports.

These gaps were brought out previously by the

various economic and social development

plans. Several projects concerning the

establishment of a national standardization

institute were worked out, but unfortunately

did not materialize.

The introduction of standards in the economic

field is warranted by the short- and

long-term advantages which will be gained by

both producer and consumer, as well as the

country's economy as a whole. It is useful

to mention a few of such advantages:

- Rational organization of manufacturing

processes.

- Increase production and reduced losses and

waste.

- Reduced cost, price, and idle stocks.

- Accurate guarantees as to quality,

regularity, security, interchangeabi 1 ity, and

so on.

- Access to technical data formerly secret

and unavailable.

- Shorter delivery periods.

- Fewer and less intense disputes, as the

manufactured products are better fitted for

utilization — quality, convenience,

durability, efficacy.

- Better satisfaction of international

markets

.

- Increased national productivity.

These advantages explain the need to promote

standardization in Tunisia through the

creation of a National Institute of

Standards, with the following objectives:

centralization of standardization work;

dissemination of documents prepared by

technical committees; control over the

actualization of approved standards;

participation in the community of

international standardization agencies;

training of qualified personnel; development

and preparation of proper regulations.

104
It is obvious that the Institute will see to

it that any proposed standard be reviewed and

accepted by all concerned parties —

producer, user, distributor, public

administrator, scientific or technical

agency, qualified person -- who will be

grouped into specialized committees. The

proposed standard, approved by the

appropriate committee, will be passed on to

the concerned Ministry for final approval and

publication in the official journal.

Implementation of standards will be done as follows: All contracts entered into by the

Government, local public organization, public

enterprise, or state-subsidized enterprise

shall require compliance with fixed

standards. For contracts entered into by

private individuals, any raference to a given

standard shall be binding upon the parties;

and the contractor who doesn't observe it may

be held liable in courts. The implementation

of standards in the private sector must be

based on the advantages resulting there from,

except for some projects considered of

strategic importance, to be described later

by executive orders.

Standardization, as an institutional support

for the quality and reliability of both the

manufactured item and the manufacturing

process, cannot be dissociated from the

control and approval of invention and

innovation. As a matter of fact, the

national development and industrialization

programs in Tunisia remain widely open to

foreign technologies, but must, at the same

time, favor and encourage the national

aptitude for invention and innovation.

However, such encouragement must not become a matter of over-riding priority, as the end

objective remains the interests of users and

the country's economy. It is, therefore,

necessary to propose to proceed to an evaluation and selection of foreign

techniques that are best suited for our

country's needs and potential, and afterwards

to review and approve methods for such

technological transfer on the basis of the

objective assistance rendered and patent

rights. It is also necessary to examine the

veracity and the soundness of invention and

local processes with a view to issuing

appropriate patents. That is why the

Standards Institute will, in addition to its

normal duties, be required to review all

technical plans accompanying a request for a patent before registration, to give its

opinion about foreign technical processes and

patents.

For a developing country, a Laboratory is a means, it is not the end, of a thing. What

is important is the help the institution can give to control of the quality of our products. We have another organization in

Tunisia which is concerned with

standardization in Tunisia, which is an institution for research. We have three

universities which are looking in research

into standardization. We have a specialized

University of Technology and Science with a staff which includes many engineers. Our

universities grant degrees for the masters or the Ph.D., and others, but they have not

specialized in the education for

manufacturing or for the job itself, and we now have unemployed white collar workers. It is our big problem that we have to resolve,

to motivate our population to work with its

hands, not only to seek positions as directors or as chiefs.

We have to apply the standards that we have.

In many cases, the only ones available are from the developed countries. These

standards are often different in the Common

Market, the USA, Japan, and other developed

countries. With the new Institute, we will

try to choose the standards that are of

interest to us, not only for export purposes

but also internally for our country.

We are industrializing our country, not in a hurry, but step-by-step, based on a choice of

the technologies which are offered by other

countries. We now have technical depth. We can adapt imported technologies to fit our means and our raw materials. It is easier to

say than to do it, to industrialize a country. We want to avoid situations in

which a manufacturer finds after working for

six months that his product cannot be

exported, because these products exist

already in other countries at a lower price.

So we have to go step-by-step, but we have to

go. We can't stand still.

105
PAPER 3.9 - STANDARDIZATION IN SAUDI ARABIA

Dr. Khaled Y. Al-Khalaf

Director General

Saudi Arabia Standards Organization

Riyadh, Saudi Arabia

1. STANDARDIZATION ROLE IN SAUDI ARABIAN DEVELOPMENT

The impact of standardization on the Saudi

economy is immense. It became more

apparent after the 1973 energy crisis when

Saudi Arabia emerged as a world economical

power and assumed a very influential role in

the international market. The great demand

for oil has exerted a pressure on Saudi

Arabia to produce much more oil than its

plans call for, and thus has multiplied its

revenues, and dictated a very ambitious

second five-year plan in 1975. The main

goals of that plan were:

(1) To develop alternative sources of

income by more intensive mineral exploration

mi ssions.

(2) To establish an industrial base for

the country.

(3) To improve the quality of human resources.

To implement this plan required the

establishment of the basic facility

infrastructure needed, like houses, roads,

utilities, communications, etc., and to do

that required the importation of the know-how

and the manpower from different parts of the

world. The Saudi doors, which were closed,

were opened and many skilled and non-skilled

foreign workers poured into Saudi Arabia in a very short time.

The Country was not ready for this. The

prices of commodities and services reached a staggeringly high level, and thus the

inflation rate was rising vertically in 1974,

75, and 76. The great demand for goods

allowed for the importation of very low

quality products, and the huge volume of

imported materials coupled with limited

quality control capability at the ports made

the Saudi Arabian market a dumping place for

factory rejects and sub-standard products

from different parts of the world.

It was during that period that the Saudi

Arabian Standards Organization (SASO) played

a great role in protecting the consumers,

guiding the businessmen, and helping the

economy. SASO has been charged with

establishing quantitative and qualitative

standards which are mandatory, with applying

a quality mark and certification; and with

increasing public awareness of the importance

of standardization. After passing through

the organizational stage, SASO adopted in

1975 a five-year plan of its own, and top

priority in drafting standards was given to

food products and construction materials;

food, to feed the many imported workers;

construction materials to use in our building

boom. The plan calls for 300 standards to be

approved by 1980. We have now completed 112

and 40 more are waiting for final approval,

so that I am sure that by 1980 we will finish more than 300.

SASO is also playing a great role in

informing the public of the importance of

standardization through newspapers,

specialized magazines, radio and television

stations. One of the problems we are facing

at SASO is that of "image". We are trying to

improve our image with the people, to

increase their confidence in what we are doing, to encourage them to use standards,

and to understand standards. Really, one of

the big problems that we are facing is that

it is not only the laymen who don't

understand standards, but many in the

government themselves do not know the

advantages of having standards. So that awareness of the people is very important, we think, for the success of our organization.

Regarding the other very important task of

applying quality-mark and certification

systems -- I wish other countries would do

this regarding their exported materials —

SASO has not yet done anything because SASO

does not have its own laboratories built. As soon as the analytical capability is

acquired, this system will be applied.

106
This brief presentation reveals the influence

SASO will have in the economical development

of Saudi Arabia. SASO will set the

foundation rules for establishing the basic

industries and also assures the consumer of

the quality of the products and the safety of

their use. All of this indicates that

standards do supply some of the knowledge for

Saudi Arabia that will help in deciding

whether a technology is appropriate and

whether the necessary equipment is suitable.

In conclusion, it is the general feeling

the people at SASO that the most effectiv

way by which industrialized countries can help is by applying the certification and

quality-mark systems to all exported

products.

2. GENERAL PROBLEMS FACED BY SAUDI ARABIAN

STANDARDS ORGANIZATION

Standardization has become a very

comprehensive universal discipline with its own special features and characteristics.

However, each country is applying standards

in its own unique way.

The Saudi Arabian Standards Organization was established toward the end of 1972. The

first three years were mainly spent on administrative and technical staffing of the

organization. As mentioned above, in 1975

SASO adopted a very ambitious five-year plan

to keep up with the national five-year plan

of Saudi Arabia. At the beginning SASO was concerned mainly with establishing standards

for commercially oriented society, but later

its role was shifted toward establishment of

standards for new industries as well as imported commodities.

The main problems SASO is facing in

efficiently carrying out its tasks are typical of any developing country's problems.

Principally, these problems are:

1. Qualified technical and administrative

staff are not easily available.

2. Research and Development laboratories

are not readily available.

3. Standards have to be drafted by SASO

due to lack of free qualified experts in the

country.

4. The quick increase in size, about 10

times, of foreign imports has placed a greater pressure on SASO.

5. The problems of the SASO image in the

public eye.
PAPER 3.10 - STANDARDIZATION IN JORDAN

Eng. Remon B. Hal ten

Head, Quality Mark Division, Directorate of Standards

Ministry of Industry and Trade

Amman, Jordan

1. INTRODUCTION 2.2 Short - term

In 1970, the Government of Jordan decided to

carry out a policy measure of setting up and

enforcing internationally recognized standard

specifications aimed at insuring the good

quality of local products, in order to

protect the consumer and earn a good

reputation in foreign markets. In 1971, a Directorate of Standards within the Ministry

of Industry and Trade was established to be

the competent national body on standardization and quality control. The

following year, the standardization law

No. 24/1972 was promulgated.

In an effort to promote standardization

activities and to ensure the efficient

operation of the Directorate of Standards,

the Government executed a large-scale project

aimed at strengthening activities in the

relevant fields of standardization, namely,

specifications, testing, quality control,

certification marking, and standard weights

and measures. This project also included the

setting-up of Industrial Testing and Quality

Control Laboratories (ITQCL) to provide the

necessary facilities for analysis for the

standardization of the measuring instruments

used in trade and commerce.

2. OBJECTIVES OF THE PROJECT

2.2.1 Standard Specifications.

(a) To organize and strengthen the

operation of the Directorate of Standards,

related to national standards.

(b) To elaborate and carry out a national

programme of standardization.

(c) To bring about the application of

national standards and to assist in the

establishment, organi zation, and operation of

standards departments in industrial

enterprises

.

2.2.2 Testing

(a) To set up, organize, and operate the

Industrial Testing and Quality Control

Laboratories (ITQCL).

(b) To co-ordinate the facilities of the

ITQCL with other testing facilities in Jordan

2.2.3 Quality Control

(a) To develop a national quality control

scheme with a view to improving the quality

of goods and products in the domestic and

export markets, thereby protecting consumers

and promoting the export trade of Jordan.

2.1 Long - term

The long-term objective of the project is to

improve the national economy by

strengthening standardization and quality at

the in-plant and national levels, which will

help to improve the quality of locally

produced goods and make the use of local raw materials more efficient and reduce costs.

This, in turn, will help to ensure fairness

in trade and commerce, control of imports,

and promotion of exports.

1

(b) To develop quality consciousness in

the public and industrial establishments.

(c) To organize and operate a national

quality certification scheme, whereby the

standards and quality marks would be granted

to products conforming to national standards.

2.2.4 Legal Metrology

(a) To establish, organize and operate a central standards laboratory in Amman and

district weights and measures offices in the

main governorates of Jordan to accommodate

reference standards.
(b) To plan, organize, and implement

national metrological services.

(c) To effect the smooth transfer to the

metric system.

2.2.5 General

(a) To set up an information centre for

the dissemination of technical information

relating to standard specifications, testing,

quality control, certification marking, and

legal metrology.

(b) To train national personnel in

standard specifications, testing, quality

control, and legal metrology.

(c) To increase the participation of

Jordan in regional (ASMO) and international

(Codex Alimentarius Commission, EOQC, IEC,

ISO, OIML, ASTM) organizations in the fields

of standardization, testing, quality control,

and legal metrology.

3. JOB DESCRIPTION OF THE DIRECTORATE (As

prescribed in the law No. 24 of 1972)

1- Determine standards and measures, amend

the same as it may deem necessary, work for

the universalization of their use, and

publish information related thereto.

2- Prepare draft standard specifications

for the commodities and materials produced in

the Kingdom with a view to determining their

quality and facilitating their commercial

dealing in the Kingdom and abroad.

3- Issue the standards approved by the

Council of Ministers to be standard

specifications

4- Prepare technical terms and set

procedures for examining, testing, analyzing,

supervising, and inspecting commodities and

materials with a view to determining their

quality and specifications.

5- Coordinate the Jordan Standard

Specifications to the extent possible, to

conform to the recommendations of the Arab

Organization for Standardization and

Metrology (ASMO) and the International

Standards Organization.

6- Prepare a special Mark, hereinafter

referred to as Quality Mark, to be used by

the producer or exporter for the commodities

and materials which conform to the Jordan

Standards as an indication of their quality.

7- Encourage the use of labels and

manifests or, as it may deem necessary, make

their use mandatory on containers, for the

purpose of guidance.

8- Make agreements with similar Arab and

international organizations with a view to

permitting them to use the Jordan Quality

Mark, on the condition that such

organizations shall, before the use of the

Jordan Quality Mark, carry out inspection of

the commodities and materials concerned with

a view to making sure they conform to the

Jordan Standards.

9- Recognize, on the recommendation of the

Director, the standards of other states for

the periods which the Ministry may decide

with a view to regulating and supervising the

commodities and materials produced in Jordan,

exported or imported.

10- Approve laboratories and procedures

for examining, testing, analyzing,

supervising, and inspecting commodities and

materials subject to Jordan Standards.

11- Prepare or encourage the preparation

of studies and research work in different

fields in relation to standards.

12- Encourage the industries of Jordan to

improve the quality of their commodities and

materials, and collaborate on improving the

level of these industries, protecting the consumer and suppressing adulteration, by means of determining the specifications and

conditions with which the producer, exporter

and importer shall comply.

13- Keep the essential reference standard

units which it requires for the verification

of measures with view to ensuring the extent

of their accuracy and compliance with the

reference standard units and impressing

109
thereupon the seal which the Ministry

determines.

14- Cooperate with similar Arab and

international organizations and represent

Jordan in Arab and international conferences

on standards and measures.

15- Take any other steps which may assist

in discharging the functions above.

4. REGIONAL AND INTERNATIONAL ACTIVITIES

The Directorate of Standards is a full member

in the Codex Alimentorius Commission (CAC),

a correspondent member in the International

Organization for Legal Metrology (OIML), and

a correspondent member in the International

Organization for Standardization (ISO). We

have also a varying level of relationships

with Arab standards bodies as well as with

foreign standards bodies.

The Directorate of Standards is a full member

of the Arab Organization for Standardization

and Metrology (ASMO). Our technical staff

participates in the technical committees to

draft and finalize the Arab standards, and

they also participate in the seminars and

training courses that the ASMO holds almost

every year. The Director of the Jordan

Directorate is a member of the ASMO board.

5. RECOMMENDATIONS FOR THE DEVELOPING

COUNTRIES IN FIELD OF STANDARDIZATION

To start without any delay in establishing

standardization organizations and quality

control in their countries, if these have not

already been started.

To try, if possible, to work in regional

organizations for standardization.

To try to participate as a full member in the

International Organizations.

To try to operate certification marking

schemes, so as to facilitate export to

foreign markets.

Science and technology and research centers

are very necessary to cope with every

movement in the field of standardization.

What is required from developed countries is

assistance in establishing organizations for

standardization. Also, the developing

countries are depending upon imports from

foreign countries where they have different

specifications and different dimensions for

the same product. That leads to difficulties

in keeping spare parts and good maintenance.

So working on international specifications

and metrication will help indirectly the

developing countries to look after their own problems.

DISCUSSION :

Mr. Hamilton Herman:

If one has a group of good technically

trained people, there isn't any reason why

these people cannot do more than one thing.

In short, a good engineer is capable of

understanding standards and is also capable

of the application of technology. So my

suggestion is this, if one has limited funds,

one does several things at once, and one uses

his engineers broadly at least at the outset.

At the moment, for instance, a country I have

visited recently is using the same engineers

that are doing the development work to

establish environmental controls also. One

can say that that is not a good thing, that

they might approve something they wouldn't

otherwise approve, but nevertheless, my

suspicion is that they get 85% of the

pollution control needs met even within that

framework, and they save the elaboration of a separate organization and a lot of money. So

my comment is that while standards are important, it is the overall use of the

technology that is going to count, and one may

be able to stretch his engineering dollars by

combining these things, particularly at the

outset

.

Dr. Jose L. Tudor (Barbados National

Standards Institute):

I see one area in which this idea of drawing

on the technical knowledge of technical

no
talent to do other things than write and

interpret standards can be applied in a very

practical way. One aspect is in the area of

servicing and maintenance of equipment,

particularly the test equipment that is so very important in maintaining quality control

in industry and in standards institutions,

and that sort of thing. Another is to

encourage the development of instruments

designed to do the particular things and to

meet the needs of particular industries in

particular environments in the developing

countries, instruments that their own technical people will be familiar with and

know how to service. One of the problems

that one is very often faced with, especially

in the developing countries, is having very

sophisticated instruments that can do very

much more than meet the requirements of the

developing country, and for which there are very few people knowledgeable enough to

service them properly. Since there is the

availability of relatively cheap electronic

devices which form components in many of

these instruments, I would like to see someone in a position to invest in the

technology of instrumentation as applied to

the areas of quality control, materials

product testing, etc., which will alleviate

some of the problems that we hear about.

Dr. Al-Khalaf:

I sure agree with you. Also, I think that if

a person uses a simplified machine at the

beginning, he can understand the whole theory

and application behind it, but if he is hit

with a very complicated one, he probably

knows how to operate it, but he doesn't know

anything about it. I sure believe in what

you just said. And it would be nice if they

could make instruments that do not need

maintenance at all --just get the instrument

and use it.

Prof. Lieberman:

I think that there is possible danger. My

observation is that if you look at some of

the so-called standards laboratories around

the world in various countries, that

frequently these have turned into, also,

scientific laboratories, of the highest

order, and that a lot of your

instrumentation, a lot of your standards work

is being done by scientists. Now, I want to

call your attention to the difference between

a scientist and a technologist. A scientist

is not going to go out in the field and worry

about a pump, and do the kind of work that

you want him to do, also. So it may be that

you need another kind of person. You have to

be very careful about this. Your man doing

your standards work may be a scientist, but

you need a field engineer to really go out

and do things like developing new products.

In your countries, who is doing standards

work: scientists or engineers? Is standards

work now being done by the kind of person who

can go out and design products?

Mr. Owino-Okwero (Kenya):

I do standards work. I am a civil engineer.

I design roads, I designed buildings, I can design, also, structures, etc. I have been

in the field before. I have that experience.

And that has been a criterion in training of

most of our standards employees. Of late, we train graduates direct from the university,

and we find them not very useful, because

they cannot follow the technical committee

discussions. So we are taking them to

industry to learn how to design, to gain

field experience, and to learn a little bit

of production engineering. I agree with you,

you need people who can get out and design

thi ngs.

Ill
PAPER 3.11 - COMMENTS ON STANDARDIZATION

Dr. Robert W. Middleton

Assistant Secretary General

International Organization for Standardization

Geneva, Switzerland

I would like to respond to some of the points

made here this afternoon.

To Mr. Bel ford, you need not in any way be

apologetic. I like very much what you said,

and I think it does a great deal of good to

take the lid off the internal workings of the

ISO committees. I was expecting something

far worse. I think it is absolutely correct

to point out that standardization is a business function. At the same time, I think

you were quite correct to emphasize that

there is, in all the ISO work, a spirit of

compromise and concession, which means that

in fact agreement is reached and positions

are not polarized. Secondly, in respect to

the possibilities of taking over ISO

standards directly, I think it should be

pointed out that this particular problem

relates essentially to product standards. As

far as the large majority of the ISO

standards are concerned — test methods,

terminology, sampling — it is possible for

these to be taken over directly and

integrally as national standards. In fact,

both the Germans and the British are following this course, so it is not a matter

of the size or level of development of the

country.

Today, standardization is attracting

increasing political importance. We have

tried to assist the Secretariat of the United

Nations Conference on Science and Technology

by pointing out to them that it would be

incorrect for them to forget the subject of

standardization in this Conference. We have,

also, at the end of last year written to our members saying that they should take this

matter up with their governments, with a view

to ensuring that the matter is included in

the government position papers. It would be

a tremendous pity if the political impetus

that is going to be gained from the United

Nations Conference were not to be spread also

into the area of standardization. And I would make an appeal to all those here to

make every effort that they can at the

national level to ensure that whatever comes

out of the United Nations Conference on Science and Technology, there is something in

it for standardization, and for all of our standards institutions.

112
SECTION 4 - KNOWLEDGE REQUIRED FOR INDUSTRIAL QUALITY CONTROL

Chairman: C. B. Butts, Supervisor, Equipment Engineering

Detroit Diesel Allison, General Motors Corp., Indianapolis, Indiana

PAPER 4.1 - ESTABLISHING A QUALITY CONTROL SYSTEM IN AN INDUSTRIALIZING COUNTRY*

Prof. Kenneth S. Stephens

Georgia Institute of Technology

Atlanta, Georgia

1. INTRODUCTION

The author is keenly aware of the importance,

necessity, and humane right of the developing

countries and their individual citizens, to

achieve a rapid, balanced, and sure standard

of living, equivalent to that enjoyed by many

developed nations. Experience has shown that

Quality and its related disciplines have

played a significant role in bringing about

an improved standard of living for the

industrialized countries and those rapidly

reaching that status. These same concepts

and disciplines will likewise be of great

importance to the developing nations.

But, as yet, there are places on the face of

the earth where cheap labor is and can be

exploited to achieve a competitive edge in

the manufacture and sale of various products

and commodities. However, as developing

countries cross the threshold to the

"developed" status with resultant benefits in

better standards of living for the populace,

and as international standards and trade with

developing countries increase, emphasis will

shift from cheap labor to good quality for

the competitive edge. Examples already

abound, notably from Japan, Republic of

Korea, Republic of China, Mexico, Israel,

Singapore, etc.

The exploitation of cheap labor is, at best,

only a stop-gap activity in world supply and

demand. A quarter century or more ago U.S.

Portions of this paper are abridged from

the forthcoming publication by the author

on "Preparing for Standardization,

Certification and Quality Control",

reference 1, and are used here by kind

permission of the publishers, the Asian

Productivity Organization.

(and other) companies established operations

in Japan (and elsewhere). Now Japanese (and

other) companies are establishing operations

in Korea, Thailand (and elsewhere). The

cycle continues, but the emphasis moves closer to better quality at a reasonable

price.

Quality Control, correctly applied with an awareness of the importance of quality, can provide the active ingredient needed to

achieve domestic and export quality and the

resulting good reputation for products, "made

anywhere". Quality Control is now widely

used in almost every type of industry in most

countries of the world. It was, and is

claimed by many of the Japanese leaders to

be, the key to the tremendous economic

prosperity and growth that has occurred in

Japan. One of the consultants that helped

the Japanese program in the late 40 's and

early 50' s was a man that is very close to us here, Dr. Edwards Deming, and he is quoted as saying "Japanese management listened, they

learned, they observed, and they did

something about common quality problems."

The world knows the benefit of that work.

It has proved to be most effective (1) in

improving the quality of products, including

life and reliability, (2) in raising the

productivity of manufacturing processes,

(3) in reducing manufacturing and other

costs, and (4) in timely deliveries and in

determining the marketability of products or

services

However, many developing countries have yet

to promote, utilize, and benefit from quality

control on a national scale. Most are receiving some assistance and are interested

in developing. Understanding the principles

and benefits and placing them in proper

perspective will surely help. It must also

3
be understood that the commonly heard

resistances to quality implementation such

as, "our problems are different," "it will

cost too much," "management will not accept

it," etc., have been voiced before most

successful applications, regardless of

degree of development and/or scope of

appl ication.

Many developing countries around the world

stand on the threshold of rapid industrial

development. If this development is to be

successful in achieving domestic and export

acceptance of locally made products, quality,

price, and delivery must be placed in proper

perspective and continually improved.

Management personnel in government

departments; private industry; management,

professional, and trade associations;

academic institutions; etc., must develop a genuine and growing interest in the use of

quality control and all its facets to achieve

these results. Awareness of the importance

of quality, the specifications of desired and

aimed-at quality, and planning for quality

are essential decisions and actions for

governments and industrial and commercial

enterprises - whether small or large.

Establishing a quality control system is

hardly an alternative, it is becoming a necessity for the economic and humane

well-being for any nation.

2. QUALITY CONTROL PROGRAM DEVELOPMENT

Quality Control programs and applications

have grown rapidly in developing countries

over the past decade with considerable

promotion by such international organizations

as UNI00, APO, and ISO, and by numerous

bilateral programs, but also in no small measure by the inspiration of the phenomenal

Japanese industrial and economic success coupled with no reluctance on their part to

credit much of their progress to the

establishment of a quality control

consciousness and to application of quality

control methodology and management.

Considerable impetus for quality control

program development and industrial

applications has also been the result of the

transfer of quality control technology by

multinational companies and other foreign

investments, joint ventures, licensing

arrangements, etc. All of these avenues of

assistance are generally available to

developing countries just embarking on programs of industrial development and should

at least be considered in the establishment

of a national program.

The scope of a program of quality control is

quite broad and needs to take into

consideration both individual companies or factories, and national, regional, or international organizations and activities.

Quality -- its attainment and control, like a precious gem -- has many facets -- each

contributing to its sparkle and value. There

are the in-factory programs of receiving

inspections, raw material and piece parts

inspection, vendor relations; process

performance and capability studies; process

controls; motivation of employee quality

consciousness; failure analysis; reliability,

life, and environmental testing; instrument

calibration, and control; maintainability of

plant and equipment; final inspection;

product warranty and liability; customer

relations and analysis of field use data;

quality assurance; quality cost analysis;

quality of design; management reports;

organization for quality; etc.

On a national level there are quality control

societies; other professional and trade

associations; local, regional, and national

seminars and conferences; training programs

and certification of practitioners;

university degree programs; publications and

literature promotion; product liability

legislation and government compulsions for

quality and safety; standardization;

certification and quality marks programs;

export inspection programs; legal metrology;

etc

.

The multinational companies, bilateral and

multilateral aid programs, such as the United

Nations Industrial Development Organization,

and other international organizations carry

the in-factory and national programs over to

the international level. As mentioned above,

the world has seen, first hand, the

tremendous economic impact of the transfer of

quality technology from one culture to

another -- notably the case of Japan.

What is needed in a developing country by way

of a quality control program is also
dependent on the degree of development

already attained. Dr. J. M. Juran [2]

identifies five phases which an industrially

developing country passes through on its way

to full development. He recognizes the

importance of standardization and the role of

the National Standards Institute in this

evolution and equally recognizes the

necessity for complementary activities and

organizations as industrial development

progresses. His short, but cogent paper,

should be consulted for more detailed study

and information for industrial planners in

developing countries.

Many papers have been written on quality

control in developing countries, of which

many are listed in the References section.

All of them include, at least in part, the

following recommendations for developing an effective quality control program at the

national level

1) Establish strong national leadership

and a national plan, as through one or more

influential national organizations, such as the national standards body, association of

manufacturers, management associations,

engineering and other professional societies,

universities, etc. This implies the

formation of a group or groups to spearhead

the quality movement. This need not be a Q.C. Society, per se, but should be well

organized, influential, and active. Develop

a quality consciousness and concern for

quality in key governmental, industrial,

commercial, financial, and academic leaders.

This may be done by arranging for

internationally known experts to conduct

seminars for such leaders to emphasize the

importance of quality in a developing economy

-- perhaps using the success of another

country. (Japan can serve as an excellent

example.)

In the national plan give serious

consideration to the establishment of

reasonable trade policies to encourage

competition and quality improvement, while

promoting local manufacturers. Promote

exports and the necessity for local

manufacturers to meet international quality

levels and standards.

2) Establish and actively support and

publicize a national standardization effort.

11

The adjunct of a quality certification

program with a publicized and recognized

quality mark backed up by a sound program of

initial factory inspections, product testing,

surveillance inspections and testing, etc.,

is highly desirable. The development of a national capability in legal and industrial

metrology and calibration is a necessary

program to support the certification efforts

and industrialization in general.

3) create government and commercial

compulsion for reasonable levels of quality

via quality requirements in purchase

contracts, building specifications,

standardization and certification, export

inspection programs, etc. Some quality

requirements need enforcement from an organization or program with a broader

perspective than the manufacturer himself or

his immediate customer. (For example, the

higher cost of electricity or even the cost

of a fire from poor quality electrical cable

is most often not borne by the manufacturer

of the cable or by the construction

contractor. Without some independent

enforcement of such quality, they may be

tempted to cut their individual costs by

supplying a low grade cable.) There are at

least two levels of compulsion which may be

created. One can be referred to as a "subtle

compulsion" obtained by the

political-technical activity of convincing

responsible authorities to specify or require

quality in products and services. The other

may be referred to as "hard core compulsion"

obtained by the politico-technical-legal

activity of decreeing by law that imported

and/or manufactured products must conform to

a given standard, with associated

liabilities. Each of these forms of

compulsion has its place in a national

quality control system. Priorities based on national development, economy, and public

safety must be established. Programs of

enforcement, compatible with the requirements

and scope of compulsion, must be established

and supported to make the entire effort

effecti ve.

4) Establish media for exchange. Promote

industrial applications. Hold seminars and

publish transactions and journals in the

local language. Develop training manuals,

texts, standards, etc. in the local language.

Develop study groups to study applications in
other countries. Request and implement local

projects funded by outside aid. Direct these

projects in accordance with the national

plan. Develop local practitioners,

lecturers, teachers, etc., for more intensive

training.

5) Establish an extensive program of

training. This can be organized and

spearheaded by the Q.C. Society and/or other

organizations such as management

associations, industry associations,

government departments, etc., especially for

managers and practitioners. Academic

institutions should be encouraged to develop

courses for inclusion in key curricula.

In-company training should be encouraged and

assisted.

6) Develop a program to promote public

awareness of quality, safety, etc. Public

media such as radio, TV, newspapers,

magazines and journals, even movies, should

be used in this effort. Consumer

organizations for representing consumer

groups in negotiating better quality from

monopolies, informing the public, etc.,

should be established. Involve workers

(ultimate consumers) in programs of

participation in quality improvement (QC

Circles are examples at the factory level).

It should be emphasized that approaches to

the tasks included in the above

recommendations must be individually tailored

to fit the distinctive requirements of the

particular country involved. There is a strong temptation to simply observe what has

worked in one country and then to apply it,

unaltered, in another. This temptation

should be recognized and resisted. The

transfer of technology from one country to

another has sometimes led to unanticipated

difficulties and frustrations. If care is

not exercised by those responsible in the

developing country, the same kind of unhappy

results may be realized with quality control

as well as activities such as standardization, certification, metrology,

etc. Thoughtful consideration, then, must be

given to the problem of how to initiate and

how to sustain a national quality movement

that encompasses standardization,

certification, quality control, and related

activities. The resulting plan will

undoubtedly be unjque to that country. It is

11

important to assess cultural differences when

studying quality control programs of other

countries. And, in most cases, adaptation is

to be preferred over adoption, generally.

However, much can be learned from the

experience of others, and within the

constraints of adaptation to local

circumstances and unique conditions,

developing countries can often accelerate

their advancement through the phases of

development. Especially with respect to

quality control methodology and management,

the latest experiences can be learned and

implemented immediately - without the

necessity to evolve these principles.

The national plan should also be flexible

because of inevitable internal and external

changes and because, as experience is

acquired, knowledge will be gained about

which types of things work and which do not.

To mount and sustain a successful quality

control movement on a national scale, it is

necessary that there be at least one group

somewhere in the country (perhaps in a governmental body or an academic institution)

that is knowledgeable in quality control, aware at all times of latest developments in

the field, capable of adapting techniques to

local needs, and competent to provide

consulting assistance. Ideally, such a group

would be actively engaged in relevant

research. It has certainly been the case in

Japan, where a most vigorous national quality

control movement is found, that a multitude

of such support groups have been supported.

3. INTEGRATED STANDARDIZATION

A national standardization effort is included

in the above recommendations for the

development of an effective quality control

program at the national level. It is also

essential to support progress in

industrialization. The concept of

"integrated standardization" has emerged

during the past decade or more and developing

countries will do well to give it serious

consideration in the organization of their

standardization and quality programs. A

recent ISO conference and its report [3] serves to formalize the concept by inclusion
of a somewhat comprehensive set of functions

and listing as a formal recommendation the

fol lowing:

"4.2 National standards bodies in developing

countries should adopt an 'integrated

approach' to standardization (embracing

standards-writing, metrology, quality

control, certification and applied research)

as providing the best means of ensuring

implementation of standards and their

adaption to local conditions and of raising

the level of quality."

Integrated standardization will include the

following elements:

1. Standards preparation and

promulgation

2. Industrial metrology -- measurement

and calibration

3. Legal metrology -- weights and measures

4. Certified reference materials

5. Certification and quality marking

6. Export inspection

7. Applied research

8. Quality control

Systems of quality control and quality

assurance for application in developed

countries often take for granted (or

rightfully assume) an existing strong base

for supporting activities such as (1)

measurement and calibration; (2) weights and measures control; (3) certification,

including a national quality marks scheme,

self certification programs of individual

companies, etc.; (4) various programs of

export inspection and testing; and (5)

applied research for improved designs,

materials, functions, tests, packaging,

utilization, etc. These assumptions are in

addition to that of an advanced system of

standards development itself, as well as subsystems of quality control programs by

suppliers of raw materials and components,

quality control training programs, an active

quality control society, professional and

1

trade associations, etc. Countries with

emerging industrialization programs simply do

not have such a base of supporting activities

and must include their development in overall

national plans. These often become the

initial or at least parallel tasks of

standardization bodies, i.e., if recognized

as essential and organized accordingly. It

is, of course, possible to assign these tasks

to agencies other than standardization bodies

and in some cases this is highly desirable,

especially if an infrastructure has been

created for rationalization and coordination

of the tasks. That is, a wider based effort

is thus created.

For a comprehensive coverage of the

principles of integrated standardization, the

reader should consult the first three

references and the following papers presented

at UNIDO symposiums and workshops by Ettinger

and Sittig [4], Evseenko [5], Gavin [6,7],

Okamoto [8], Salama [9], and Koukhar [10].

4. NATIONAL CERTIFICATION PROGRAM

Also included in the above recommendations

and part of integrated standardization is a national certification and quality mark

program. A quality certification mark is a distinctive insignia that is placed on a manufactured product by a qualified producer.

To qualify, a manufacturer in the country

needs to obtain a license from the national

or private body responsible for the

certification scheme. The license can be

withdrawn or other penalties can be imposed

if the manufacturer fails to maintain the

necessary minimum level with respect to

pertinent quality specifications. One of the

chief reasons national governments and

individual companies promote certification

programs is that they see it as a way to

increase exports because buyers will

preferentially purchase products with quality

certification marks provided the

certification scheme is effective in ensuring

a more consistent quality level and perhaps

also a higher quality level than would

otherwise be the case.

Steps through which a company might in fact

gain certification under a national program

include a number of factory visits. The
initial visit is preceded by promotion and

instruction in the procedure. Visits are made to the factory to review the company

situation and to discuss the whole program

with management. There is a factory visit to

look at the actual operations, at the quality

control situation, and at the organization

for quality control. The laboratory is

inspected which conducts tests associated

with the quality of the product. Test

records are examined, and the processes are observed by which the tests are carried out.

Actual tests can be conducted, such as very

simple viscosity tests on tooth paste, which

can be done right on site by the team that is

doing the inspection. Checks can be made to

determine if the company itself is

maintaining quality with respect to its own tests of the products. Random samples are selected from the product, either at the

warehouse or directly from the production

line, and are taken back to an independent

laboratory, other than the company

laboratory, for an independent check on the

quality of the product, prior to issuing a license for the actual certification.

Examples from the program developed in

Thailand include a ballast factory, asbestos

cement sheet fabrication, tooth paste

production, and a fine silver shop. Two

counterparts in Thailand have, through UNIDO

fellowships, both received their masters

degrees in quality control from the

University of Birmingham in England.

The crowning glory of the process is when the

quality mark license is issued and the local

entrepreneur can be proud of displaying the

quality mark. Ceremonies connected with the

issuance of the license, promotion, and

publicity with respect to the companies, help

inform the public that there is such a program, and that quality is being achieved

by local manufacturers, and that they should

look for the quality mark in their purchases.

This is a program which has had a lot of

publicity to it, with coverage in the

newspapers and TV and radio. Public

exhibitions of products which bear the

quality mark help to inform both the

industrial public, who are potential

customers for each other, and also the

consumers, or the local public, about the

quality mark and about goods which have been

certified as meeting the quality mark.

Such programs have beneficial effects for

local consumers. Some enlightening results

were obtained in a recent British national

survey of public awareness of quality marks.

Among other things, 33% of the adults

surveyed claimed that they looked for quality

marks on products when shopping. Another 43%

said they would look for quality marks if

they knew more about the marks and what they

represented about the assurance of quality.

This indicates the strong influence which

quality marks can have on consumers and

domestic products.

Particularly when products are being

exported, some independent third party, that

is, some body other than the buyer or seller,

can advantageously be involved in checking

products to see that the quality of products

meets certain specifications. Since, in a sense, the reputation of the country is at stake, it may well be in the best interest of

the nation that a government or quasi -government organization act as this

third body. The function of such an organization would be to ensure that outgoing

products meet the required quality standards.

A country might want to have two

certification schemes, one for products sold

nationally and one for exported goods, i.e.,

an export inspection program. Perhaps, a certification mark may be given to certain

categories of products, which meet the

required standards. Normally a mark can only

be granted for a product for which a standard

has been published. Customers, both local

and foreign, can be educated by various means

to understand the meaning of the mark and in

this way be encouraged to buy goods with the

certification mark in preference to others.

Then, provided the certification program is

good enough to ensure the quality of

outgoing products, the reputation of the

national mark will grow (and so likewise will

that of the nation)

.

In Japan's rise to international recognition

as a manufacturer of quality products,

licenses to use the J I S (Japan Industrial

Standard) quality mark have been issued to more than 10,000 factories. In 1949 the

Industrial Standardization Law was established. One of the key characteristics

of this law was the certification labeling

system (the J IS mark). By law, through

118
statistical quality control audit, the

Ministry of International Trade and Industry

permitted manufacturers to put J IS

certification marks on their products. This

program, together with an extremely active

supporting program of quality control

education, implementation and public

promotion, is credited with giving Japan a major thrust to industrial and economic

promi nence.

Historically, in the earlier developed

industrialized countries, national

certification mark programs proceeded (or are proceeding) from mature standardization

efforts. It took (or is taking) many years

to achieve the overall benefits of

standardization together with the

implementation of standards through a certification program. The developing

countries have an excellent opportunity to

shorten the period to achieve a significant

degree of industrialization (of quality goods

appreciated on the international and domestic

markets) by simultaneously developing their

standardization, certification, and quality

control programs.

As mentioned above, in most industrialized

countries, standardization has preceded

certification, but in many developing

countries certification is often the primary

impetus for a standardization program. In

these cases recognition of the value of

standardization in its own right may be

somewhat slow. Cultural and social factors

may play a role in this regard. It is

certification, with its statutory obligations

or its more easily recognized commercial

advantages, which will lead industry to an increasingly wider acceptance of standards.

Standardization Body tries to determine if

the factory has an adequate program of

control of production so as to assure

continued conformity to the standard! s) • Thus, in addition to the manufacturer's

efforts, certification provides an independent, third party form of quality

assurance.

In general , certification is assurance by a competent organization , independent of

trading interest , that goods are being

manufactured in conformity with a standard.

However, it is not a guarantee 1. The

quality of a manufactured product is

primarily the responsibility of the producer.

Since it is economically impractical to

provide for 100% assurance, a system has to

be devised, product by product, which will

provide the desired assurance within

practicable and economic limits. This can be

achieved under a system of quality control

and assurance at the manufacturing plant,

backed by regular inspections by an independent inspectorate and independently

verified tests. In consonance with this

principle, certification programs have the

following objectives:

* Implementation of industrial standards

with their many production benefits.

* Encouragement of quality manufacture,

exports, and imports.

* Protection of the consumer from

misrepresentation of product quality.

* Protection of the producer from

improper competition.

One of the principal purposes of

certification and quality marks programs in

conjunction with standardization efforts, is

to encourage and assist the manufacture of

quality products — a prelude to economic

growth and stability. In this, the national

standards body must recognize the importance

and need for manufacturers to establish

and/or maintain an adequate program of

Quality Control and Assurance. In the

preliminary investigation for the initial

grant of license, as well as in the

surveillance inspection and testing for

continuance of the license, the National

* Reduction in the multiplicity of

quality certificates (which reduces sampling,

testing, time, and costs).

* Assistance to the producer's

advertisement and marketing.

* Improvement in the quality of the

Standards by locating errors and/or outmoded

practices for feedback to technical

committees or the Standards Council for

revision of Standards.

119
5. QUALITY CONTROL - SOME BROADER ASPECTS

All of the activities of integrated

standardization, and especially those of

certification, are interrelated with quality

control and contribute to improved quality of

products and/or services. The statistical

techniques of quality control and quality

planning are useful in carrying out these

activities. Yet something needs to be said

here concerning the broader aspects of

quality control and economic progress of

developing countries. While statistical

quality control is an essential part of a certification program, we must be careful

that we are not lulled into thinking that

certification is quality control. Especially

in developing countries, there are at least

three reasons why applications of quality

control principles and techniques cannot be

limited to a certification program. These

are as follows:

1) Certification (as carried out in most

developing countries) itself is an adjunct to

a national standardization program. It is,

therefore, limited to those products for

which standards are prepared and published.

Statistical Quality Control is not so limited. Standards preparation is also a relatively slow process. Then too (even

without the usual limited resources),

standards cannot be prepared on all products

simultaneously — lower priority products are bound to be delayed. Furthermore, the

application of statistical quality control to

the manufacture of products, before or during

the preparation of national standards on these products, can improve the standard by

an inherent improvement in the quality of the

products, and leads to direct cost reduction

and increased orders for the manufacturers

(as well as foreign exchange in the case of

exports)

.

2) Not all products (processes,

procedures, etc.) for which standards are prepared are suitable for certification. Yet

statistical methods may be employed to

improve and/or control these products,

procedures, etc.

3) Manufacturers undergoing

investigations for certification have a natural tendency to avoid discussion of

quality problems on their products or

120

processes. Whereas the crux of the matter on quality control investigations, assistance,

and applications lies at high-lighting major

problems and directing detailed study where

it will count the most. Of course, test

failures under certification have a similar

effect. But it is possible for a manufacturer to obtain certification on his

products (demonstrating conformity to the

standard) while still plagued with relatively

high internal scrap losses, excessive repair

or rework, poor delivery, and other related

ills. It is possible to miss the greatest

benefits of Statistical Quality Control, if

limiting quality efforts to a certification

program alone.

6. TRAINING PROGRAMS ON QC METHODOLOGY AND

MANAGEMENT

In the development of a comprehensive program

of quality control, training cannot be

over-emphasized. It has been and still is

the key to unlock advances in quality and

resultant manufacturing savings. It is the

prerequisite to many other important quality

control programs. In one U.S. factory of

approximately 4000 employees, in which the

author was employed, some 23,000 man hours of

quality control training were conducted for

personnel from top management to inspectors

and key shop workers in a period of seven years. (And expanded to over 30,000 man

hours over 12 years; see Stephens [11] for more details). This was during a concentrated period of process studies using

quality control principles and techniques to

control and obtain improvements on some 30

different products. More than 3,000 control

charts were being used to achieve the

results. Over this seven-year period,

savings in production waste and excessive

inspection amount to S27 million, against some S9.7 million in costs. Documentation

of the results obtained on a number of

specific products is contained in papers by

Schin [12,13,14].

The above factory was visited by many

Japanese industrial study teams in the

mid-to-late 50' s. Ishikawa [15] refers to

his visit to this factory in 1958 on page 7 of the referenced paper. The importance of

training in Japan's rise to international

fame in quality manufacture is summarized in

several papers, see for example,
Ishikawa [16,17], Higashi [18],

Koyanagi [19], Miura [20], Mizuno [21],

Juran [22], Deming [23,24]. It is estimated

that the total number of participants in the

education courses outside companies reached more than 100,000 for the period from 1949 to

1968. With the in-company training programs,

several million have been trained. In more

than 2,000 companies, training has been

completed for all employees including top

management and workers. The Japanese

Standards Association, since 1953, has been

conducting seminars on quality control and

standardization. Every year the Association

held 17 seminars of about 160 hours' duration

each. Above 1100 attendants were trained in

1972 and more than 18,000 in total.

Identified at the UNIDO-Athens First

International Symposium on Industrial

Development in 1967 as the main difficulty in

establishing quality control programs in

developing countries was the problem of

training and education. This is still true

today, generally. And since its

establishment, UNID0 has been providing

extensive technical assistance, including

training programs. See Stephens [25]. Other

international organizations such as AP0 and

ISO have contributed along with numerous

bi -lateral efforts.

One training format which has been used

successfully on a number of occasions and

locations is the following. After attending

lectures and participating in workshop

sessions for a number of weeks (between one

and four, depending on the course),

participants are then required to return to

their regular jobs, apply what they have

learned, prepare a report on one or more of

such applications, submit the report to the

training staff, and finally reassemble with

the other participants for a final workshop

discussion of their experiences in applying

the techniques they have learned. It is only

after satisfactorily completing all these

things that a participant is considered a graduate of the course and awarded a certificate. This program has been used in

India, Ott et. al [26], and Ott [27]; in

Singapore, Hunter et. al [28], and more recently in Nigeria, Stephens [29].

The workshops in Nigeria are always opened by

a Minister. After the basic introduction of

quality control techniques and principles, we

i;

carry the program right out to the factory,

where the problems are. We consult with

them, and we also train the local staff, in

this case the staff of the Nigeria Standards

Organization, in how to carry out factory

consultations and training. The workshop is

always capped by a ceremony to present

certificates, which are always given out by one of the State Ministers. So far, we have

conducted this type of program in six of the

cities of Nigeria.

Properly planned and conducted, such a program has the following potential benefits:

(1) initial training in the basics of

statistical quality control /qual ity assurance

for a selected group of industrial personnel,

(2) the beginning of applications of the

principles and techniques directly in the

factories of the participants and the

resultant "real world" exposure, (3) exposure

of staff from local organizations to methods

of instructions and industrial consultation

to enable them to carry on the program

(preferably in the local language for

additional groups of foreman, etc., not

necessarily proficient in English).

In an industrial consulting situation, the

above program has the feature of

superimposing a training effort on top of the

consulting program alone --with the added

ingredient of directing the participant

himself to seek the improvements. The

training effort is two-fold -- initial

training of the industrial participants and

advanced training of the indigenous staff.

7. QUALITY CONTROL PROMOTION

Another of the earlier recommendations is

that of developing a program of public awareness of quality. This includes programs

to promote quality control, educate

consumers, involve and motivate worker

participation in quality improvement, etc.

Two programs with a wide-spread application

and literature, namely "Zero Defects" and "QC

Circles" are discussed separately. More

general national programs of public awareness

are presented first in the following

subsection
7 .1 General Promotional Programs

Ishikawa [17] outlines use of public media in

Japan's efforts to educate her people and

promote quality control as follows:

"7) QC education for foremen through

broadcasting were held between 1956-1962. QC course through radio began in July, 1956.

The Nippon Shortwave Broadcasting Co. (NSB)

held three month course seven times. Since

1957, NHK (Japan Broadcasting Corporation)

held an intoductory course called 'management

and quality control' for seven weeks

(15 minutes per weekday). More than 100,000

copies of this textbook have been

distributed. From 1957 to 1962, there were

seven NHK radio QC courses. In 1960 and 1961

NHK TV broadcast two courses called 'Quality

Control and Standardization' for four

months

.

"9) 'National Quality Month' started in

1960, which are held under the co-sponsorship

of JUSE, JSA (Japanese Standards Association)

and other organizations, and since then it

has been observed every November. The 'Q'

mark and 'Q' flag were decided."*

Singapore launched a program called PQR

(Prosperity for all through Quality and

Reliability) on 23 February 1973 after a call

for such a program by the Finance Minister in

June 1972. Highlights of the PQR Campaign

activities included:

• "Training courses for workers at all

levels on quality control concepts and

techni ques

.

• Essay competition for pre-Uni versity

school students.

• A science and industry quiz for

secondary schools.

t Worker-of-the-month competitions in

factories participating in the campaign.

• A national PQR stamp selection

contest.

Ishikawa [17], page 423

• Issue of a set of four PQR

Commemorative stamps.

• Public lectures and talks on Quality

and Reliability to manufacturers and

workers

.

• Distribution of PQR flags and posters

to participating organizations.

t Presentation of worker-of-the-month

certificates and awards to deserving

workers

.

• Awards of citations to companies active

in promoting PQR ideals.

"These activities, carried out over a j six-month period, involved some 70,000

workers, 146 schools, 300 companies,

government ministries, and organizations like

the Consumers Association of Singapore and

the Singapore Quality and Reliability

Association

.

"In a nutshell, a whole nation was involved

in the PQR Campaign."*

Features of the campaign are summarized in

the following forward by the Chairman of SISIR

and Chairman of the PQR Campaign Organizing

Committee, Dr. Lee Kum Tatt, in the brochure,

"PQR ... a way of life."*

"This publication is dedicated to the 70,000

workers and the 300 companies who

participated in the PQR Campaign. It is also

a tribute to the various organi zations — the

National Trades Union Congress, the Singapore

Manufacturers' Association, the Singapore

Institute of Standards and Industrial

Research (SISR), the government bodies and

the Consumers' Association of Singapore for

working together and planning the numerous activities and programs that took place

during the Campaign.

"The spirit and mood of the PQR Campaign is

captured in print and in pictures in this

publication. It is hoped that this will serve as a record to those that come after us that when national tasks are at stake,

sectorial differences can be subdued and

* SISIR [30], pages 20 and 21

122
replaced with a common goal. That goal was,

and still is, Prosperity for all through

Quality and Reliability.

"Companies who are featured have contributed

towards the cost of this publication. They

represent a cross section of the Republic's

industries, subscribing and working towards

the PQR ideals.

"As you read through these pages, you may

discover that the PQR Campaign is much more

than simply a tripartite parternship between

the workers, manufacturers and the

Government. It is an integration, a melding

of modern quality control concepts and social

obligations and responsibilities, into a national way of 1 ife.

"With continued dedication and understanding

-- and above all,, with proper encouragement

and support by the public -- the Q and R movement is likely to provide significant

results in meeting the increasing demands of

the public for entirely new and higher levels

of quality products and services.

Internationally, it should reinforce the

image that Singapore is a manufacturing

nation of quality goods and that PQR

activities never cease in Singapore."*

The Republic of Korea has also launched a Quality Control Campaign. It was reported on by Dr. Jong Wan Choi [31] at the 1976 Annual

Technical Conference of the ASQC in Toronto,

June 7, 1976. The following excerpts from

his paper describe the background and program

and need no further amplification.

" Brief Historical Background of Quality

Control Development

"Now let us turn to the historical background

of recent quality control developments in

Korea

.

"In 1961 the Government established the

Industrial Standardization Law. This was

followed in 1963 by the adopting of the

Korean Standards marking system. Many

leading Korean industries began their Quality

Control activities as a result of these

Government initiatives.

* SISIR [30], page 3

"Since the K.S. Marking System was put into

force in 1963, a total of 249 commercial

products have been allowed to display this

mark. The number of factories producing K.S.

Mark products now stands at 338.

"Before the 1961 law very few industries in

Korea had any serious concern for quality

control. It was a seller's market. The

economy was in rapid transition from

pre-modern to modern, and the manufacturers

concentrated on increasing production and

starting new operations. Consumers received

little attention and competition was

mi nimal

.

"In due time, however, as her exports

increased, Korean industry ran into stiff

foreign competition. At the same time,

domestic consumers were becoming more sophisticated, and competition on the local

market gained more attention. The situation

for Korean industry was changing rapidly, and

the need for quality control became clear.

"Since 1973 the oil crisis and worldwide

recession have served as further forces

accelerating changes in Korean business

practices. Modern management techniques,

quality control and energy management have

been emphasized."

" Quality Control Campaign in Korea

"Last year the Korean Government, through its

Ministry of Commerce and Industry, launched a Nation-wide Quality Control Campaign.

"The Campaign headquarters is placed in the

Industrial Advancement Administration (IAA).

"I, who happen to be the first administrator

of IAA, am responsible for making overall

policies, coordinating between various

implementing activities and evaluating and

assessing campaign results for the quality

control campaign with advice and

recommendations from the advisory boards,

which consist of related government agencies,

various economic and industrial organizations

and trade associations.

"The Korean Standards Association is

designated and authorized as the Secretariat

Bureau for the campaign. This mean? that

although the national campaign is under

government leadership, its actual
implementation is the responsibility of the

Korean Standards Association.

"To kick off the campaign and create

awareness of the importance of a QC system in

industry, the campaign committee conducted

massive public relations activities through

speeches, seminars and various public

meetings utilizing public media and

distributing leaflets, pamphlets, manuals and

other printed materials.

"The campaign has two main directions. In the first facet the government designated

companies which are to carry out QC

improvement programs. The companies which

have been designated so far are large and

high level industries, including export

manufacturers

.

"In 1975 the government designated 500

industries, and this year the number

designated will reach 1000. Companies accept

this designation with pride and respond with

a sense of duty.

gold medals and several secondary awards for

the competition. The highlight of last

year's QC movement was the nationwide QC

Convention held at the National Theater on October 30. Participants included some 1,500

QC-related officials and members of the

companies and especially the Prime Minister,

who personally led the whole convention.

Exemplary QC circles and enterprises were cited at the ceremony, and special lectures

were given by such world renowned QC

specialists as Dr. W. Edwards Deming of the

U.S.A. and Dr. Mizuno of Japan.

"As you can see, the Nation-wide Campaign and

other factors I have mentioned have given a big push to our QC progress in Korea. But

the active government involvement such as I have been describing is only temporary. Over

the long range, we realize, the

responsibility must come to rest with

individual enterprises. It will be up to

industry to keep the ball rolling. This

process has already begun, but maintaining

momentum is always a problem."*

"For each designated company, the improvement

program includes the following:

1) establishing a company-wide QC

system

2) improving company standardization

3) employing QC specialists

4) organizing QC circle activities

5) developing on-the-job training

programs

6) holding company conferences and

contests on QC activities

7) participating in specialized

semi nars

"The second facet of the campaign is a national awards program for companies and QC

circles which make exceptional progress in

the improvement program just described. At

the industry level, outstanding companies

submit applications to the awards committee

of the national QC campaign administration.

Inspection teams then visit each applicant

firm and prepare recommendations for the

award committee. One first prize and a few

second prizes are awarded.

"In the case of QC circles, competition takes

place first within an individual company then moves on to a local contest and finally

reaches the national level. There are a few

i;

7 .2 Zero Defects Program

Zero defects had its beginning back in

1961-1962, when the Martin Company of

Orlando, Florida delivered a Pershing Missile

with zero discrepancies to Cape Canaveral.

Shortly after this,

Brigadier General R. W. Hurst, then deputy

commander of the United States Army Missile

Command requested the delivery of a Pershing

Missile one month earlier than scheduled.

The Martin Company accepted this challenge

and transmitted it to the Pershing team. The

reply transmitted was that the delivery would

be made in February and with zero discrepancies. (This was transmitted down to

the quality inspectors.) When this was accomplished, the idea of zero discrepancies

was passed down to the employees. The result

was the inception of the Zero Defects

program.

Basically, the objective of this program is

to place emphasis on the importance of the

employee's effort continually to do

error-free work. The program must be well

*Choi [31], pages 3-6
planned and carefully organized to give the

best results from top management on down to

the individual employee (i.e., top management

must indoctrinate and motivate

mid-management; mid-management must do the

same for supervisors; etc.). This

indoctrination and motivation toward zero defects is accomplished by the use of a kickoff campaign. Included in the campaign

are rallies, posters, pins, slogan contests,

etc. After the kickoff of the program, each

employee is asked to sign the Zero Defects

pledge; they are not required to sign, but

only asked for a voluntary effort. The whole

program is aimed at motivating the employee

to do his best because he wants to, not

because he has been coerced.

Motivation of an employee to do his best must

begin with management. The management team

must be sold on the zero defects program

before they can attempt to motivate their

employees into accepting the zero defects

program. For the program to be a success,

the employees must thoroughly believe in the

program. This is achieved by convincing the

employee of the importance of his job. This

is not done by congratulations or patting the

employee on the back. The worker must be

shown and convinced by actions and examples

that his job--any job— is worth doing well.

Only then will he see any reason to make the

effort that Zero Defect performance

requires

The maintenance of a Zero Defects program

requires that specific detection, monitoring,

and correction techniques be given to

operators and their supervisors. Each case

of non-conformance to specifications

represents a challenge to someone; if he

knows he can identify the specific causes of

such defects, the worker or supervisor is

motivated to do it year after year. (See

American Management Association [32].) Thus,

the Zero Defects program is aimed at keeping

the employee doing his best, time and time

agai n.

The Zero Defects program itself is actually a method of quality assurance through

prevention rather than detection. Emphasis

is placed on preventing defects during the

production process instead of correcting

defects after the item is produced. In order

to achieve this, a good deal of money is put

into the prevention techniques of quality

12

control. In most companies, many man-hours

are spent keeping records, analyzing costs,

and developing statistics so they can better

tell how much to add to their cost proposals

and project plans to cover losses due to

discrepancies (See Hal pin [33].) Many

companies can cut quality costs if, in the

beginning, they had put their money into a prevention program instead of an after the

fact quality program. In the long run, the

Zero Defects (prevention) program will turn

out to be actually cheaper than a detection

program. However, aside from costs, the Zero

Defects program has other benefits:

1. Improvement in attitude and in

employee morale.

2. Development of better communication

between employee and supervisor, therefore,

there is a better teamwork, more group

spirit, and an all-around improvement in

working relationships.

A definition of the Zero Defects Program as given by James F. Hal pin [33] is "Zero

Defects is simply a method of assuring that

each individual within an organization

realizes his importance to that

organization's product or services and,

conversely, that each member of management

realizes and recognizes the important

contribution of each person reporting to

him."*

Several companies have reported on ZD

programs. See for example, Crosby [34],

Pierce and Streep [35], Hal pin [36],

Haas [37], Riordan [38], Sharpe [39],

Wood [40], Dallas [41], Shove [42],

Berndt [43], and papers in Texti 1

World [44], Coal Age [45], Iron Age [46], and

Quality Management and Engineering [47].

There is also the misuse or perhaps the

misrepresentation of credit to ZD programs

for results obtained. One serious danger is an attempt to achieve results by motivational

techniques alone, not backed by the

recognition of common causes of defects with

management responsibility and statistical and

engineering tools. Juran [49] examines the

ZD movement and the concept of motivation.

The author presents a brief critique of a

* Hal pin [33], page vii - preface
paper by Gregory [49] in a letter to the

editor which was published in the OctoberDecember 1973, International Trade Forum , Volume IX, number 4, on page 37.

Sandholm [50] also presents some cautions in

his paper and mentions a motivational program

in the USSR referred to as the "Saratov

method"

.

Zero Defects programs have been used in

developing countries. The author has had

the privilege of some exposure to the use of

Zero Defects by the Teajon Leather Company in

Taejon, South Korea. The program involves

some 30 member affiliates. A Zero Defects

newspaper is published and circulated among

the members to create attention to

improvements, and accomplishments as well as problems. It is worth consideration by

developing countries, especially in light of

the present thinking as to the necessary

complementary programs and features.

7 .3 QC Circles

Perhaps no other single quality control

concept has been lauded more in the

phenomenal growth of Japan's industrial post war era than that of the QC Circle. See

Modern Manufacturing [51], March 1970.

Five principal references contain a great

deal of background material and explanation

of the QC Circle idea and program. These are

(1) QC in Japan Series No. 1, QC Circle

Activities, JSUE, 1968, edited by

Kaoru Ishikawa, (2) Reports of QC Circle

Activities, Nos. 1-8, 1968 to 1975 (a number

of these are out of print), (3) Proceedings

of the International Conference on Quality

Control, 1969, Tokyo, (4) Guide to Quality

Control Circle Activities, Asian Productivity

Organization, No. 24, April 1971, (5) Japan

Quality Control Circles, Asian Productivity

Organization, 1972.

With respect to the birth, early development

objectives and activities of QC Circles, the

first reference above should be consulted,

see Ishikawa [16], pages 16-18.

QC Circle activities have been reported by

Kao [52] in the Republic of China and by

Choi [31] in Korea. Some preliminary papers

and an entire workshop session on QC Circles were held at the 1976 ASQC Annual Technical

i

!

Conference in Toronto, Canada. See papers by

Amsden D. [53], Blakely [54], Beardsley [55],

Rehg [56], Rieker [57], Dewar [58], and

Amsden, R. [59]. This is a continuation of

such workshops and exchanges between the U.S..

and Japan. See for example, Rubenstein [60]..

And these programs continue and expand

annually. See Beardsley and Dewar [61].

8. ELEMENTS OF A QUALITY SYSTEM

To serve as a guideline in the development of an overall quality system, the following is

a listing of some elements that should be

taken into consideration. It is presented

primarily in outline form for brevity.

Further details on each of these areas are available in various publications and can be

consulted and studied for implementation.

(Many are included in the reference section.)

The degree to which these elements are included and integrated within the business

structures will vary by size and type.

However, these activities and programs can be

organized and carried out by a single

entrepeneur as owner-operator of a business,

by managers (owners) of small to medium

businesses or by management-technical teams

of large businesses. Emphasis is on the

functions rather than the organization or individuals that carry out the functions.

I. Planning, Organization and

Administration

A. Qual ity Pol icy

B. Organization

C. Quality Control System Manual

D. Quality Assurance System

Monitoring, Review, and Audit

E . Qual ity Cost Data

1. Prevention Costs

2. Appraisal Costs

3. Internal Failure Costs

4. External Failure Costs

5. Life Cycle Costs

6. Val ue Analysis

7. Management Reporting

II. Product Design, Planning, Specification

Devel opment, and Control

A. Design Review on New or Redesigned

Products and Services

B. Acceptance/Rejection Criteria for

All Inspections and Tests

1
C. System to Qualify New or Redesigned

Products, Processes, or Services

D. Documented Authorizations

E. Safety, Regulatory Requirement

Assurance

F. Control of Design or Processing

Changes

III. Control of Purchased Materials and

Component Parts

A. Communication of Requirements to

Suppl iers

B. Selecting Qualified Sources

C. Determining Supplier Capability -- Evaluation and Rating of Suppliers

D. Vendor-Vendee Relations — Util i zing

Supplier Quality Evidence

E. Nonconformance Control and

Corrective Action

F. System of Inspection and Test

G. Instrument Calibration and

Mai ntenance

H. Stock Control --Quantity and

Qual ity

IV. Manufacturing Quality Control

A. Planning and Controlling the

Process

1. Materials Control

2. Production Operations Control

3. In-Process Inspection

4. Nonconforming Material Control

5. Employee Selection, Training,

and Motivation (see VII)

B. Final Inspection

1. Acceptance Sampling

2. Product Quality Audit

3. Performance Testing

4. Environmental, Life,

Rel iabil ity, and Safety Testing

C. Test Equipment, Tools, and Gages

D. Handling, Storage, and Shipping

E. Product and Carton Identification

(Label i ng)

F. Quality Information

1. Production Reports

2. Quality Reports -- Scrap and

Spoilage Reports

3. Inspection Reports

4. Cost Reports

V. Customer Contact and Field Performance

A. Marketing

1. Market Research

2. Advertising and Promotion

3. Sales/Service

127

4. Application Engineering

B. Product Development

C. User/Consumer Feedback

1. Product Return and Failure

Analysis

2. Customer Complaints

D. External Feedback (Government,

Trade Associations, etc.)

VI. Corrective Action

A. Need for Corrective Action

1. Routine Inspection and Test

2. Customer Complaints

3. Product Service Calls Analysis

4. Warranty Claims Analysis

B. Application of Corrective Action

1. Product

2. Process

3. People

VII. Employee Selection, Training, and

Mot i vat ion

A. Policy for Employee Quality

Performance

B. Company Work Rules

C. Product and Process Design for

Employee Quality Performance

D. Employee Job Standards

E. Job Training

F. Employee Motivation Programs

1. Zero Defects

2. Q.C. Circles and/or

Participative Quality Control

G. Employee Job Supervision

H. Surveillance and Audit

I. Wage and Salary Administration

VIII. Sampling and Other Statistical

Techniques

A. Acceptance Sampling

1. Attribute and Variable (MIL STD

105D, MIL STD 414)

2. Lot by Lot, Batch, Continuous

(Dodge-Romig Tables, CSP)

3. Miscellaneous Plans (Narrow

Limit Gauging, ChSP, Skip Lot,

etc .)

B. Process Control Charts

1. Attribute Charts (p and np, c and u charts)

2. Variables Charts (X and

R, M and R, X and R, Cum Sum

Charts)

3. Acceptance Control Charts

C. Special Studies and Experimental

Design Techniques
1. Designed Experiments

2. Error of Measurement

3. Evolutionary Operation

IX. Legal Requirements/Product

Liability/User Safety

A. Mandatory Standards and Regulation

(CPSC, FDA, etc.)

B. Safety and Environment (OSHA, EPA)

C. Insurance Coverage

D. Product Certification Program

9. CONCLUSION

In summary, we have found through experience,

that Quality, and its related disciplines

of quality control, quality assurance,

standardization, certification, and the whole

approach to integrated standardization, have

been very successful in allowing many

countries, including the developed countries

and those that are fast reaching that

threshold, to gain the progress that they

have made. It certainly is recommended as a very important element in the national

development of any country, to put Quality

and these related disciplines in the proper

perspective, and to give them a proper

priority in planning and in implementation.

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[13] Schin, R., Process control is essential

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[14] Schin, R., Quality control engineering

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Control, Tokyo, Oct. 1969,

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[25] Stephens, K. S., UNID0 technical

assistance in standardization,

certification and quality control -- with a Thailand case study,

International Conference on Quality

Control, Tokyo, 1978.

[26] Ott, E. R., Andrews, H. P.,

Gore, W. L., and Stephens, K. S.,

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industrial development, Final Report to

the Government of India of experts

appointed under the United Nations

Technical Assistance Program,

Commissioner for Technical Assistance,

June 15, 1963.

[27] Ott, E. R., The national development of

industrial applications of quality

control, Proc. of the International

Congress on Quality Control, Oct. 1969,

pp. 737-739.

129
[28] Hunter, W. G., Stephens, K. S., and

Chacko, E., Creating effective national

programs in developing countries for

standardization, certification, and

quality control, ITCC Review, Tel Aviv

(1974).

[29] Stephens, K. S., Certification mark and

quality control program for the

Nigerian Standards Organization,

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Vienna, 18 November, 1977.

[30] Singapore Institute for Standards and

Industrial Research (SISIR), PQR...a

Way of Life (published by PQR Campaign

Organizing Committee, Singapore,

1974).

[31] Choi, J. W., Quality control campaign

in Korea, Paper presented to 30th

Annual Technical Conference, ASQC,

Toronto, June 7-9, 1976.

[32] American Management Association, Zero

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time, Management Bulletin, 7^ (1965).

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Dimension in Quality Assurance (McGraw

Hill Co., 1966).

[34] Crosby, P. B. , Z is for zero defects,

Industrial Quality Control, 182-185

(Oct. 1964).

[35] Pierce, R. J. and Streep, S. C,

Successful, motivational programs,

Industrial Quality Control, 654-658

(June 1966).

[36] Halpin, J. F., Zero defects in

retrospect, Industrial Quality Control,

669-670, 681-682 (June 1966).

[37] Haas, A. R., The superior craftsman

program, Industrial Quality Control,

665-669 (June 1966).

[38] Riordan, J. J., Quality and reliability

assurance management in the Department

of Defense, Industrial Quality Control,

662-665 (June 1966).

[39] Sharpe, M. R., Manned flight awareness

- zero defects for man-rated space

130

vehicles, Industrial Quality Control,

658-661 (June 1966).

[40] Wood, W. P., Zero defects; it pays,

Mechanical Engineering, 88, 45-47

(Nov. 1966); Naval Engineering Journal

,

79, 293-296 (April 1967).

[41] Dallas, D. B., Zero defects bandwagon,

Tool and Manufacturing Engineering, 56,

62-65 (Jan. 1966).

[42] Shove, R. J., Lessons of a zero defects

campaign, Naval Engineering Journal

,

79, 972-976 (Dec. 1967).

[43] Berndt, R. E., Zero defects programs

give safety a lift, Safety Maintenance,

135 , 13-14 (Feb. 1968).

[44] Zero defects; Burlington-Balfour finds

major savings by raising quality goal

from 90 to 100%, Textile World, 116,

50-55 (Nov. 1966).

[45] Zero defects concept: modern way of

achieving top-notch quality control,

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[46] Zero defects down to the wire, Iron

Age, 199, 83 (June 15, 1967).

[47] The quality world of ITT, Quality

Management and Engineering

(Jan. 1975).

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remedies and nostrums, Industrial

Quality Control, 647-653 (June 1966).

[49] Gregory, G., Zero defects - Japan's

quest for quality, International Trade

Forum, JJ(, No. 1, 14-17

(Jan. -March 1973).

[50] Sandholm, L., Quality, quality

motivation, reliability, and the

consumer, ID/WG. 100/10,

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Cairo (UAR), 30 November, 9 Dec. 1971.

[51] The secret of Japan's rise to quality

fame, Modern Manufacturing, 66^-68

(March 1970).
[52] Kao, S. C, National quality control in

the Republic of China, Proc. of the

International Congress on Quality

Control, Tokyo, Oct. 1969,

pp. 813-816.

[53] Amsden, D., QC circles: a challenge to

ASQC, 30th Annual Technical Conference

Transactions, ASQC, Toronto,

June 7-9, 1976, pp. 224-228.

[54] Blakely, E. D., and Amsden, D., QC

circle workshop: Pareto analysis, 30th

Annual Technical Conference

Transactions, ASQC, Toronto,

June 7-9, 1976, pp. 236-243.

[55] Beardsley, J. F., Training is the heart

of the Lockheed QC circle program, 30th

Annual Technical Conference

Transactions, ASQC, Toronto,

June 7-9, 1976, pp. 257-260.

[56] Regh, V., QC circle workshop:

application, 30th Annual Technical

Conference Transactions, ASQC, Toronto,

June 7-9, 1976, pp. 229-235.

[57] Rieker, W. S., What is the Lockheed

quality control circle program?, 30th

Annual Technical Conference

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June 7-9, 1976, pp. 253-256.

[58] Dewar, D. L., Measurement of results - Lockheed QC circles, 30th Annual

Technical Conference Transactions,

ASQC, Toronto, June 7-9, 1976,

pp. 249-252.

[59] Amsden, R., Beardsley, J., ,and

Rehg, V., QC circle workshop: cause

and effect diagrams, a most useful

tool , 30th Annual Technical Conference

Transactions, ASQC, Toronto,

June 7-9, 1976, pp. 244-248.

[60] Rubinstein, S. P., Participative

quality control, Quality Progress, 24

(Jan. 1971).

[61] Beardsley, J. F., and Dewar, D. L.,

Quality Circles (Quality Circles Ltd.,

San Jose, Calif., 1978).

The following' references are a continuation

of the literature associated with the paper

though not specifically referenced.

Numbering is for continuity and

identification purposes.

[62] Deming, W. E ., What happened in Japan , Industrial Quality Control, 24, No. 2,

89-93 (August 1967).

[63] Deming, W. E., Some statistical logic

in the management of quality, Proc. of

the All India Congress on Quality

Control, New Delhi, March 1971,

pp. 98-119.

[64] Feiganbaum, A. V., Total Quality

Control: Engineering and Management

(McGraw Hill Book Co., 1961)

.

[65] Juran, J. M. (ed.), Quality Control

Handbook (McGraw Hill Book Co.,

New York, 3rd edition, 1975).

[66] Juran, J. M., and Gryna, F., Quality

Planning and Analysis (McGraw Hill Book

Co., New York, 1970).

[67] Burr, I. W., Statistical Quality

Control Methods (Marcel Dekker, Inc.,

New York, 1976).

[68] Caplen, R. H., A Practical Approach to

Quality Control (Business Books

Limited, London, Second edition,

1972).

[69] Dodge, H. F., and Romig, H. G.,

Sampling Inspection Tables - Single and

Double Sampling (John Wiley and Sons,

Inc., New York, 2nd ed., 1959).

[70] Duncan, A. J., Quality Control and

Industrial Statistics

(Richard D. Irwin, Inc., 4th ed.,

1974).

[71] Grant, E. L., and Leavenworth, R. S.,

Statistical Quality Control (McGraw

Hill Book Co., New York, 4th ed.,

1972).

[72] Harris, D. H., and Chaney, F. B., Human

Factors in Quality Assurance

(John Wiley and Sons, Inc., New York,

1969).
[73] Hopper, A. G., Basic Statistical

Quality Control (McGraw Hill, London,

1969)

.

[74] Japan Quality Control Circles (Asian

Productivity Organization, Tokyo,

1972)

.

[75] Ott, E . R. , Process Quality Control

(McGraw Hill Book Co., 1975).

[76] Simmons, D. A., Practical Quality

Control (Addi son-Wesley Pub. Co.,

Reading, Mass., 1970).

[77] Statistical Quality Control Handbook

(Western Electric Co. Inc., Mack

Printing Co., Easton, Pa., 1964).

[78] Thomas, L. F., The Control of Quality

(Thames and Hudson, London, 1965).

[79] ASTM Manual on Quality Control of

Materials (American Society for Testing

Materials, Philadelphia, Jan. 1951).

[80] Peason, E. S., The Application of

Statistical Methods to Industrial

Standardization and Quality Control,

British Standard 600:1935.

[81] Building a quality movement.

Techniques designed for developing

countries suggest broad applications,

Quality Progress, 35-38 (August 1972).

[82] Tinkham, M. L., Quality control

movement stirs in Singapore, Quality

Progress, 38-40 (August 1972).

[83] DeFremery, J. D. N. , Still

underdeveloped aspects of Q and R,

Paper presented at the National

Conference, Verwaltung der Qualitat,

Sofia, Bulgaria, 14-17 Nov. 1972.

[84] Lancaster, E. J., International quality

activity, Quality Progress, 14-15

(August 1973).

[85] Stephens, K. S., Quality and Quality

Control, Productivity Series No. 11

(Asian Productivity Organization,

Tokyo, 1976).

[86] Stephens, K. S., Thailand's

certification and quality marks

programme, 29th Annual Technical

Conference Transactions, ASQC,

San Diego, May 12-14, 1975, pp. 345-356

and Quality, E0QC Journal, XIX, No. 2,

52-58 (Summer 1975).

[87] Hopper, R., and Stephens, K. S.,

Standards and certification in a developing country, BSI News, 8-9

(April 1973).

[88] Sheffer, D. (translator), Quality

Control in a Developing Economy, A Case

Study of Israel (The Centre for Policy

Studies, Keter Publishing House,

Jerusalem, 1970).

[89] Ishikawa, K., Guide to Quality Control

(Asian Productivity Organization,

Tokyo, 1972).

[90] Sandholm, L., United Nations training

programs in quality control, Quality,

Journal of the European Organization

for Quality Control, XX, No. 2, 8-11

(1976).

[91] United Nations Industrial Development

Organization, Guides to Information

Sources No. 6, Information Sources in

Industrial Quality Control

(United Nations, New York, 1973)

(available from UNID0, P.O. Box 707,

A-1011 , Vienna Austria)

.

DISCUSSION :

Dr. Edward L. Brady (NBS):

Is there a continuing UN program in Nigeria?

Dr. Stephens:

Nigeria has one of the largest UN country

programs in the world. This specific project

runs through 1980; additional workshops are scheduled for both 1979 and 1980. There is an adviser right now in Nigeria, advising the

Nigerian Standards Organization on the

selection of test equipment for the eventual

national testing laboratories. A site has

been selected by the Nigerian Government for

the construction of a national laboratory for

132
product testing and metrology. Once that

building is finished and some of that

equipment is brought in, then there will be

three long-term advisers that will come out

in areas of chemical analysis, product

testing, and metrology, each for a one year

period.

Mr. Radway:

It seems pretty clear from your presentation

that there is a direct correlation between

the system of quality control and the

effective transfer of technology. Is UNIDO

communicating this simple fact to the various

developing countries? What I have in mind is

the fact that certain developing countries at

this moment have laws prohibiting the

transferor of technology from imposing

quality control systems and standards, in the

license agreement or the technology transfer

agreement. In those situations where that

exists, is there some way of communicating

this kind of information to the technocrats

in those countries, so that they can internally contribute to the dialogue that is

going on within the country?

Mr. Frank Lancetti (Office of the U.S.

Coordinator for UNCSTD, Dept. of State):

To establish a connection between what has

been said and the UN Conference on Science

and Technology, note that UNIDO is one of the

three United Nations specialized agencies

which are called upon to play a role in

preparation for the UN Conference on Science

and Technology. I am sure the experience

which has been gained by that specialized

agency will be utilized by the Conference

when it convenes in Vienna in August.

Dr. Stephens:

I am sure there is. UNIDO does provide,

periodically, regional seminars on this

subject. I personally agree with you that

this whole effort could be planned with

respect to disseminating the experiences of

other countries and the benefits that have

resulted from efforts in standardization and

its full integrated approach, including

certification programs, quality control,

metrology, export inspection, and applied

research in all those areas. However, one of

the philosophies under which UNIDO operates,

by way of its policy and charter, is that it

protects the sovereignty of every nation. It does not impose anything on a nation that

that nation does not itself desire. All

UNIDO projects must be requested. UNIDO

provides certain instruction, advice, and

assistance in the creation of projects or may

propose that certain countries might benefit

from certain programs. But in the bottom

line, the request must originate from the

country, and of course be approved by that

country.

133
PAPER 4.2 - HIGH TECHNOLOGY QUALITY CONTROL IN A NEWLY INDUSTRIALIZING SOCIETY

Dr. Lee Kum Tatt, Chairman

Singapore Institute of Standards and Industrial Research ( SISIR ) ; and

Singapore Standards Council

Singapore

1. INTRODUCTION

From what has been said so far in this

Seminar, one could gain the impression that

quality control has been with us for a long,

long time. I think that that is the wrong

impression. I think we should correct that.

Quality control is a relatively new science.

I am very happy to hear from my colleague,

Dr. Stephens, this morning, that UNIDO is

going to advocate an integrated approach of

standardization, quality control, extension,

and industrial research. Some ten years ago,

when we tried to start an institute called

SISIR, I received nothing but brickbats

against an organization of this nature. It was said that standardization, quality

control, and industrial research are incompatible. I am very happy indeed,

Dr. Stephens, to hear as you say, that UNIDO

has accepted this concept. On my part, and

on our part in Singapore, we have had no models to follow. And with the brickbats, it

has not been an easy task.

So today, I think that most of the points of

how to set up a quality control system and to

relate to this standardization and extension,

and for that matter, industrial research,

have been quite well presented by the various

speakers, especially by Dr. Stephens this

morning. I will only go through with you

some of the salient points of our experiences

that we have had in Singapore.

Now the facts are these: I think the

ingredients are there, just like our food.

We eat fish, we eat wheat, we eat vegetables.

It is how we put them together that makes the

difference. If we put them wrongly together,

they taste awful '.

So, in Singapore, just in case some of you

may not know what Singapore is, we are only

an island of 227 square miles, twice the size

of Martha's Vineyard, with 2.3 million

people, while Martha's Vineyard has 5,000,

and 50,000 in the summer time. It is very

significant, because we have a change of more

than 1% in land area, between the tides. We

have no natural resources, and not even enough water of our own.

This morning, I would like, therefore, to

talk to you on quality control, not in the

world context, but in the Singapore context,

and then, on what we see of the future. I would like to say here, that it is easier to

have hindsight than foresight. It is very

safe to tell you what we have done because we bury our mistakes. It is very difficult and

dangerous to forecast the future, especially

when we are asked to do it for the next five

years. I will still be around, you know'.

2. QUALITY CONTROL IN THE WORLD CONTEXT

The future can be discerned by looking into

the past. If we go back just some 50

years, we will find that at one time quality

control was confined to inspection. This was the situation through the 19th Century and

into the 1920s. No theory, organized

practice, nor real knowledge of quality

control was present. Then came the pioneers--

people like Shewhart and Edwards-- who

introduced statistical sampling as a unique

and useful tool. This was in the mid-20s

and what happened was that variability and

its statistical measurements, already used

widely in the scientific world, were applied

into the world of manufactured products. The

work of Shewhart and his colleagues laid the

foundation for quality control as a separate

and essential discipline for industrial

production. Because of the depression,

however, very few industrial enterprises

listened to the quality control people.

The depression dragged on through the decade

of the 30s. Then came World War II, and

vast quantities of materials were needed. By

the end of the 1940s, quality control was firmly established in military procurement,

but was still largely confined to the quality

control of production. By the 1950s,

quality control had moved from production to

design and development, while continuing to

134
exert a major influence in procurement and

production. Today, quality control and its

applications have further shifted as a result

of consumer pressures which have transformed

quality from a product attribute into a social cause. It has made quality control a necessary step in every phase of

manufacturing and trading from the

conception, to design, development,

production, marketing, and servicing. From

present trends, quality control professionals

will likely be drawn into the public arena in

the role of mediators of quality and safety

between consumers, producers, and government

regulatory agencies. Particularly in the

developed countries, the quality control

professional has to cope with the contending

voices of advocates for consumers, industry,

and government regarding the quality, safety,

and durability of mass production articles.

What, then, can a small developing city state

like Singapore, with a population of

2.4 million and a manufacturing sector

comprising 2,847 establishments with output

valued at 518,456 million do? Singapore is

further handicapped by the lack of raw materials resources. Unlike the generality

of developing countries, Singapore does not

have an agricultural base. As a compact

urban society, the pressures on Singapore for

rapid industrial development were even greater. The gist of the Singapore solution,

as Prime Minister Lee Kuan Yew and his

colleagues saw and formulated, was plain and

straightforward — Singapore must

industrialize or bust. What part did quality

control play in this process of

industrialization? Perhaps we can extrapolate from what Singapore did in the

past in the area of quality control and

attempt to forecast what Singapore should do

in the future.

3. QUALITY CONTROL IN SINGAPORE

Industrialization was actively pursued in

Singapore in the early 60s, when the

Government embarked on an active program to

attract investments into Singapore as the

major thrust of its national economic plan.

Prior to that, Singapore's only experience

was in trading, where the ideal location of

the country made it a centre for entrepot

trade. The plan to transform a trading

economy into an industrialized society was

not easy. The mentality of traders is

entirely different from that of

industrialists. The time frames of

risk-taking are very different. With a limited population base and no natural

resources, how could Singapore hope to

attract investments in manufacturing?

Singapore could then boast of a fairly

developed infrastructure in shipping,

transportation, education, and finance.

These were plus factors, and together with

the Government's arm, the Economic

Development Board (EDB), set up in 1960 to

promote investments, Singapore opened its

doors to manufacturing. The Singapore

government is a socialist government. It has

been an embarrassment at one time, stated by

the Deputy Prime Minister himself, that it

protects the capitalists more than the

capitalist countries.

When Singapore became part of Malaysia in

August 1963, the stage was set for greater

growth in manufacturing in view of the larger

market associated with the much larger

population base. We attracted industries who came on the basis of this large internal

market. This union with Malaysia, was,

however, short-lived; and in 1965 Singapore

was separated from Malaysia. Independence

followed in August 1965, and Singapore had to

learn to stand on its own two feet. All the

effort that we had put in to promote

industries based on the bigger internal

market, the premise on which these industries

were built, was no longer valid. Survival

became a mission for the Government. We had

to change all of our industry; we had to

become export oriented.

Amidst all this, the EDB as part of its

program to attract manufacturing investments,

established a number of technological

institutions to service industries which were

to set up based in Singapore. One of these

institutions was the Industrial Research Unit

(IRU), set up in 1963 to do research on raw materials usage and to provide testing

services to industries. Standardization was instituted as a program of IRU in 1966. In 1969, in view of the greater emphasis placed

on standardization and quality control, the

IRU was converted and renamed the Singapore

*The figures given are in Singapore $.

One U.S. $ = S$2.20. 135
Institute of Standards and Industrial

Research ( SI SIR ) . If I were to be asked what

year Singapore embarked on an active program

to promote quality control in the

manufacturing sector, I would choose 1969 as the base year.

In 1969, the manufacturing sector comprised

1,714 establishments, employing some 100,758

workers with an output valued at

S3, 214 million. In contrast, by 1977, the

manufacturing sector had 2,847

establishments, employing 200,112 workers

with an output valued at £18,456 million.

In 1969, direct exports from Singapore were

valued at 51,265 million and comprised

mainly low value items, especially in the

traditional industries such as food,

garments, plywood, and plastics. By 1977,

exports were valued at £10,160 million and

products have shifted to high value added

items and sophisticated engineering and

electronic components and parts. These data

are all reflected in Annex I. Annex II shows

the principal statistics of manufacturing by

major industry group as of 1977. This

transformation has not been easy. It has

been very painful. It has cost us a lot.

What part did quality control play in all

these developments? How was quality control

promoted, especially among local

entrepreneurs who have had no tradition in

manufacturing? What specific programs were

instituted by the Government through SI SIR to

promote quality control as part and parcel of

production processes? Did the developments

in quality control in the developed economies

have any impact or effect on Singapore? What

will be the role of quality control

professionals in Singapore for the future?

Will consumerism in the developed economies

affect Singapore? How will and how can the

developed countries play a role in their

commitment towards assisting the less

developed countries to develop their

economies?

I hope that the Singapore experience will

provide the distinguished delegates at this

Seminar an insight into what the developed

countries can do for the newly

industrializing countries. I hope also that

by relating to you our experiences in

introducing and developing quality control as

a discipline among our manufacturers, some of

you will be able to decide how best

developing economies could be assisted

through quality control to develop better

quality living.

The Singapore Government's policy to

accelerate industrialization was based on the

premise that it will be faster and less

costly to benefit from the experiences of

others. An aggressive policy of attracting

investments, particularly from the

multi-national corporations of the USA,

Europe, and Japan, was pursued. This would

provide the base for infrastructures to be

developed, while at the same time, allow time

for local entrepreneurs to have a feel of

what manufacturing is and the types of

management and organization required to

manage manufacturing operations. The

multi-nationals brought with them not only

manufacturing and management experiences but

also ready markets for their own products.

On the other hand, Singapore manufacturing

operations, when established, will not have

immediate access to international markets.

Singapore manufactured products do not enjoy

the luxury of a large local consumer

population. There is only one answer and

that is, Singapore manufacturers must export

the bulk of their products. Quality control

therefore must become a vital process in the

manufacturing operations of Singaporeans.

How does one promote the concept of quality

control in a newly industrializing economy?

How does one persuade manufacturers to invest

in plant, machinery, and equipment to control

the quality of products?

To my mind, Singapore promoted quality

control among its industries through a combination of the following mechanisms:

1. The presence of multi-national

corporations

.

2. The introduction of a national

certification scheme.

3. The formulation of a professional

organization of quality control practitioners

and production engineers.

136
4. Government support for products

certified under the national certification

program.

5. The policy of pursuing governmental

entrepreneurship where government invests in

a number of manufacturing operations.

6. The restructuring of the educational

system towards the scientific and technical,

and later, the provision of industrial

training.

7. The provision of specialised quality

control awareness programs and courses for

industry.

8. Nation-wide campaigns to promote

quality as a way of life.

These were all pursued with intensive vigour

from the period 1969 onwards up to today.

3.1 Presence of Multi-national Corporations

The presence of multi-nationals serves to

demonstrate to local manufacturers how

effective manufacturing operations can be

managed and controlled. We made a statistical study. Multi-nationals do fail,

also, but only up to 6%. Locals, they fail,

30%, joint ventures, 7%. What does this

mean? It means that we don't have enough

entrepreneurship, we don't have the

experience to manage. That, we have to pay a price for. Multi-nationals also provided

employment for Singaporean workers, and many

of these workers would for the first time be

introduced to the concepts of quality control

in production.

3 .2 National Certification Scheme

SISIR introduced a national certification

scheme for locally manufactured products in

1971. This very active scheme covers multi-nationals as well as indigenous

manufacturers. Today, over 450 brands and

products are covered under the national

certification program, both those with

standards and those for which there are no national standards, with products ranging

from edible oils to sophisticated electronic

products and components such as calculators,

electric motors, twist drills, cameras,

projectors, flash guns, circuit breakers,

etc. An annual Buyers' Guide is produced

listing the companies and products under the

certification program. We also do export

inspection.

3.3 Formulation of a Professional

Organization

To promote quality control awareness among

workers and professionals in Singapore,

SISIR initiated the formation of a Singapore

Quality and Reliability Association (SQRA)

whose membership is drawn from QC

practitioners in industry as well as from

companies which subscribe to the QC movement.

This is a very prestigious organization. Our

first chairman is now Ambassador to Moscow.

Our second chairman is now Senior Minister of

State for Finance. Our third chairman is the

Cabinet Minister in charge of industrial

training. So the Singapore Quality and

Reliability Association is wel 1 -patroni zed

Today, the SQRA has 400 individual members

and 80 company members. Dr. Stephens is a member. Some 40% of the individual

membership are QC practitioners working in

multi-national corporations. The SQRA thus serves as an instrument whereby QC

practitioners from indigenous firms will be

able to mix and interact freely with QC

practitioners from the multi-nationals. The

SQRA also actively conducts courses for its

members, holds seminars, and plans factory

visits to companies of interest.

3 .4 Government Support

Initially, to attract manufacturers to come

into the national certification scheme (it

is, by the way, voluntary in nature),

government departments, statutory

organizations and government-owned

enterprises gave preference to products

certified by SISIR in their purchases. This

indirect incentive was necessary during the

early days of the certification program to

attract Singapore manufacturers to

participate. Today, although the government

still gives preference to products certified

by SISIR, such incentives are no longer

regarded as essential by local manufacturers.

The message that quality control need not

necessarily result in increased production

137
cost and in fact could be a cost saving

instrument has sunk in.

3.5 Governmental Entrepreneurshi

p

Dynamic governmental entrepreneurship, which

evoked positive responses from the private

sector, yielded high economic growth rates.

Government-owned enterprises were set up

initially in ventures considered as strategic

to the national industrialization program or

in ventures where through government sharing

of the risks, private sector participation

could be forthcoming. Government-owned

enterprises had to be managed in a more

professional manner, and the fact that such

operations could introduce quality control

and yet achieve high profit margins served to

demonstrate that quality control programs can

be managed by locals.

We do not consider government investment as interference. We consider it as part of

sharing the risk with entrepreneurs. We do

not go in if we are not wanted. Also, when

we do industrial research, we come up with a product, we approach industries. The first

question they ask is, if it is so good, why

don't you do it yourself? Very often, we did

not have the mechanism. Now we have. OK, we

will do it ourselves. And nothing succeeds

like success. We have demonstrated in a small way that we can make money out of our

own research projects. This is a mechanism

which we have developed within SI SIR

.

3 .6 Restructuring of the Educational System

On this we place a very strong empasis. We

only have human resources. Babies, we can't export, and so we have to educate them

for productive employment. We spend one third of all of our national budget on training, not only at the University level,

but also in Singapore Polytechnic and

industrial training. For multi-nationals who come here, we subsidize part of their

trai ni ng.

When the quality control movement took root

in Singapore, there was need not only for

engineers and QC professionals, there was also need for the manufacturing sector to

have skilled workers and technicians at all

levels. The government restructured the

educational system towards the scientific and

technical in 1969. The engineering faculties

of the University and the Polytechnic and

technical colleges were rapidly expanded.

From 1969, most students entering secondary

schools began a 2-year course combining

academic and technical subjects. Whereas the

student enrollment ratio between academic and

technical education was 6:1 in 1968, a ratio

of 3:1 was reached by 1972. In 1959, when I was first time appointed as Governor of

Singapore Polytechnic, we only produced 150

graduates per year. Today, we produce 1,800

in the Polytechnic alone; our student

enrollment is 8,000. And we have set up

another polytechnic in the same time. It

cost us a lot of money, but this has worked

well. To ensure that industrial training

meets the needs of industry, industry-based

training centres subsidized by the

government, were set up. Industry-based

training also includes overseas training

schemes, apprenticeship schemes, and

on-the-job training programs.

3 .7 Provision of Specialized Quality Control

Awareness Programs and Courses

Various organizations in Singapore, such as SISIR and the National Productivity Board,

conduct quality control courses for

management, QC practitioners, QC technicians,

and operatives. In particular, SISIR

conducts regularly specialized courses every

year, catering to different types of

industries or different levels of workers.

From general awareness courses, the courses conducted today in SISIR are more specialized, and specific industrial groups

or industries are being catered for.

3 .8 Nation-wide Campaigns to Promote Quality

as a Way of Life

We believe that everything should be done

voluntarily. We should get the people on our side. Campaigns are a fact of life in

modern Singapore. We had the "Keep Singapore

Clean and Green" campaign; "Use Your Hands"

campaign; "Courtesy is our Way of Life"

campaign; and "Stop at Two" campaign. In

1973, SISIR, in collaboration with the

National Trades Union Congress (Singapore

Workers' Union) and the Singapore

Manufacturers' Association (association of

138
some 800 Singapore manufacturers), organized

a nation-wide campaign to promote "Prosperity

Through Quality and Reliability (PQR)". The

campaign, which lasted for one year, involved

all of the politicians, everybody who

believed in quality (they cannot afford not

to believe), some 70,000 workers, 146

schools, 300 companies, government ministries

and organizations like the Consumers'

Association of Singapore, and the Singapore

Quality and Reliability Association. The

objective of the campaign was to make

Singapore industrialists, workers, and the

man in the street to be more aware of the

necessity and importance of making Singapore

goods synonymous with quality and

reliability. So they flew our flags, our flags were all over Singapore.

The "Stop at Two" family plannning campaign

has been very effective. I said that we paid

a price for what we have. Our population

growth was 3.6% not so long ago. We believe

that if we want something, we pay a price for

it; this is one of our philosophies. So, if we have more than two children, the third

child involves no maternity leave for the

mother, no free accouchement in the

hospitals. So people have to choose whether

they want a TV set or an extra child -- no unloading unnecessary responsibilities onto

the poor society of which we form a part.

That is one of the prices we pay.

4. THE DECADE OF THE 1980s - THE ROLE OF

QUALITY CONTROL

We have satisfied the quantitative needs,

e.g., to provide enough schools. What we

have to do for the next decade is to improve

on the quality of life.

We have no more unemployment, and there we

have probl ems, too. Wages are going up, which

is one of the objectives of

industrialization. Certain industries

operating in Singapore now are no longer

competitive. What are they to do? We help

them to get to other places where they are more competitive. And in this way we are also helping the countries in the region in

industrialization. Ambassador Wilkowski was very careful last night not to define what is

"appropriate technology". We feel that the

industries of the private sector know best,

they know how to adapt themselves, and in

this way we have spread industrialization and

transferred technology from Singapore.

Because, we are limited by physical size -- 224 square miles at high tide, don't you

forget — the country can only hold so many

people, more than that, we will sink. So we have to keep the number constant, and the

only way is to keep on increasing our

qual ity

We will need more sophisticated metrological

services in the years to come. In the past

(1969), we started it wrongly. We spent

around $2 million -- there was no use for

it — all the equipment went to waste. That

reminds me of a saying, "Even the dust has

its use if it is found in the right place at

the right time." So now, we will start

again, and I think this time is the right

time.

Just as the manufacturing sector in Singapore

was supposed to bear the brunt of employment

creation in the 1960s, and economic

modernization in the 1970s, manufacturing is

expected to take the lead in technological

development and economic diversification in

the 1980s. The government has provided

incentives to manufacturers, potential and

existing, to move to more sophisticated

operations with a higher technological

content. Besides manufacturing, other

economic sectors, including the banking and

financial sector and the transport and

communications sector, are expected to

contribute towards this economic

diversification in the 1980s. It is also

envisaged that Singapore will serve as a regional centre for consultancy services in areas as diverse as banking, management,

engineering, urban development, medicine, and

technological development.

The economic strategy for the 1980s, based

upon a Singapore diversifying in many fronts,

can succeed only if Singaporeans are prepared

to absorb swiftly innovations developed

overseas and also, at the same time, to carry

out technological development indigenously.

The quality control movement in Singapore has

developed rather rapidly in response to the

needs of the export markets and through

139
planned and calculated promotion at the

national level. As Singapore manufactures

for the world markets, it is inevitable that

the pressures of consumerism in the developed

countries will also affect Singapore

manufacturers. Quality control will,

therefore, involve not just product quality

but also issues such as consumer product

safety, product reliability, mandatory

standards, product traceabil ity, warranties,

and even perhaps compulsory export

inspection. This then will be the change in

the manufacturing sector which the government

and SI SIR will have to bring about in the

1980s.

I have described to you how Singapore

introduced quality control to the

manufacturing sector; how quality control was promoted actively, and how certain

infrastructures were developed

simultaneously. Many would ascribe

Singapore's success in this area to the three measures mentioned earlier on. I personally

feel that there is another dimension which

may be equally important or much more

important. This dimension I shall refer to

as the question of attitude and philosophy.

Many aid agencies in their programs to assist

the developing countries to institute quality

control programs for industries have

invariably proposed huge structures in the

form of national physical standards

laboratories or testing laboratories. Many

of these structures are today what I would

call physical beings without a soul. We had some of them in Singapore. One reason for

this could be due to the fact that these

structures were set up not to meet a need,

but with the hope that that need can be

created. In Singapore, we have chosen to

establish institutions to meet expressed

needs

.

Coming back to the question of attitude and

philosophy, I would say that our ability to

introduce quality control, maintain and

sustain it to the present stage, is due not

only to the infrastructure built, programs or mechanisms introduced, but due to the fact

that the people involved were constantly

being inculcated with the right attitude, the

pride of work, the pride of belonging to a company. We started off with a philosophy of

thinking, and that philosophy had to be sown

into the minds of the people as values. When

these values take roots and become

institutionalized, we end up with a tradition. When that tradition is

entrenched, it becomes part of the culture.

It is hoped that quality control will become

a tradition among Singapore manufacturers.

Our ultimate aim is to make it a part of our

cul ture.

Whether or not we will succeed is a difficult

question to answer. However, if the past is an indication of what a newly industrializing

society with limited resources and with an open policy of free competition and trading

can do, then gentlemen, I have every cause to

be optimistic. I would like to share with

you these words of Prime Minister Lee which I think will provide you with the type of

scenario under which industries have been and

will be operating in Singapore:

"It is the consciousness of our being co-owners of the new society we are creating

that provides the drive for fulfillment.

Developing the economy, increasing

productivity, increasing returns, these make

sense only when fair play and fair shares

make it worth everyone's while to put in his

share of effort for group survival and group

prosperity."

We believe to get from each his best, to each

his worth. In introducing this system we may

need a few missionaries.

I believe that there is much that the

developed countries like the U.S. can do for

the developing countries. If the U.S. can decide to send men to the moon, I believe it can also make the technologies available to

make deserts productive. What is needed may

be the pol itical wi 1 1

.

140
ANNEX I. PRINCIPAL STATISTICS OF MANUFACTURING, 1969 AND 1973-1977

Unit 1969 1973 1974 1975 1976 1977

Establ ishments Number 1 ,714 2,100 2,201 2,405 2,524 2,847

Empl oyment Number 100,758 201,813 209,214 194,258 209,875 220,112

Output $ Mi 1 1 ion 3,214 8,687 14,215 13,165 16,131 18,456

Value Added $ Million 857 2,591 3,579 3,439 4,007 4,419

Direct Exports $ Million 1 ,265 4,779 8,520 7,610 10,160 12,145

DISCUSSION :

Mr. Jacob Blackburn (Director, Office of

Technology Policy and Space Affairs, U.S.

Dept. of State)

I am very interested in the society which you

are developing. What is your unemployment

level at the present time? Do you have any

problem of that sort at all?

Dr. Lee:

Statistics conceal as much as they reveal.

So if you go by statistics, we are supposed

to have about 3%. But I think you have to

analyze how these statistics are gathered.

People just register with the Ministry of

Labor when they want a job. Some of them are

not employable. And some of them only want

to change jobs. As a matter of fact, we have

quite a number of guest workers from

Malaysia. So we really do not have a serious

unemployment problem.

Dr. Edward L. Brady (NBS):

Dr. Lee, you say that the total GNP is about

$18,000 million. Is that correct? With

a population of about 2.4 million, that comes

out to be something over $7,000 GNP per

capita per year, and that is comparable with

the United States right now. Is that

correct?

Dr. Lee:

Sir, as I say, statistics are dangerous. We are the fourth if not the third largest

refinery in the world, and with the oil price

going up, the refinery output constitutes

something like 40% of our GNP or GDP. Unless

you know the details, statistics conceal as much as they reveal

Mr. William L. Eilers (AID Coordinator for

UNCSTD, U.S. Dept. of State):

Singapore is often known as a rugged or tough

society. Do you have compulsion upon

manufacturers to adopt quality control, or do

you depend mostly upon persuasion?

Dr. Lee:

We have compulsion only when it involves

safety and health. And that legislation is

the responsibility of the Ministries, not the

Singapore Institute of Standards and

Industrial Research. The rest is essentially

on a voluntary basis of what is good for

them. We require a lot of persuasion, but it

works. The main thing is to get started.

The most difficult part is to get started.

Let me say this, in 1963, we got started,

somebody started. We got two firms in, after

six months, no more in, the two firms left.

So we waited until 1969, before we started

again. And this time, we got it going.

Mr. Albert Baron (Special Adviser, Dept.

for Technical Cooperation for Development,

United Nations, New York City):

Dr. Lee, with the tremendous success that

your country has had, even at high tide, it seems to me that you have a great deal to

offer other developing countries. I would

just like to ask the question, in your region

have you done very much interchange with

other countries on how to move toward the

development of industrial firms, or small and

medium size business, how to organize to

provide the institutional arrangements that a country needs in terms of quality control, in

141
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142
terms of research, training, and so on? In other words, has there been an exchange of

information with other developing countries

from Singapore to give them the benefit of

your know-how?

Dr. Lee:

Yes, the answer is yes. We have very many

programs. One of them is that we are a member of the Commmonweal th, and we have got

Commonwealth Scholarships, I think more than

1,000 a year, training for nursing, customs,

port tending, and so on. Also, our Institute, and I myself, are actively

involved in technical information exchange.

In 1970, we initiated this regional program,

with Canadian help (IDRC), it is called

Technonet, the technical information network

of Asia. This one is not a governmental

network. We want it to be I-to-I, Institute

to Institute, not G-to-G. G-to-G has too

much bureaucracy. So we have I-to-I linkage.

We now have 11 members, including Korea, Hong

Kong, Indonesia, Malaysia, Philippines,

Thailand, Singapore, Bangladesh, and

Sri Lanka. We get together, and we do

exchange information.

There are two services we provide. One is an awareness service,- that is, we collect what

we have, and we distribute it to whomever

wants it, just like your journals. The user

must give us an interest profile. Otherwise

they will be over-documented, and

under-informed. Then we have the Question

and Answer service, which is more difficult.

And that is where we need external support.

You see, we operate like a bank. I would

like to say this very- clearly. Even for my

own Institute, I have to make sure that the

bottom line is black. So, when we operate an information service, we want to have an exchange. If a person comes to the bank and

only draws out money, pretty soon the bank

will go bankrupt. Initially, we do not mind

people coming in and getting information from

us, and we get it from Canada and from the

U.S. and from UNIDO and everywhere else, but

ultimately -- in a year or two years or three

years -- they must bring some information and

put it into our computer. That is the only

condition we have. And that way they all

help to submit information. And very often

we help a small industry in procuring

supplies, if not know-how.

143
PAPER 4.3 - ON PROVIDING THE TECHNOLOGICAL KNOWLEDGE BASE FOR INDUSTRIALIZING BARBADOS

Jose L. Tudor, Ph.D.

Chief, Laboratory Section

Barbados National Standards Institution

St. Michael, Barbados

1. QUALITY CONTROL IN BARBADOS

Barbados embarked on a program of

industrialization about 10-15 years ago. It

has been well recognized that improvements in our metrological service must be made if our

goals are to be achieved. One area in which

it is expected that great benefits will be

derived from improved metrological services

is that of Quality Control, both in the

metrological service and in industry which,

it is planned, will be monitored through such

instruments as intra-factory quality control

programs and a Certification Marking Scheme

to be conducted by the Barbados National

Standards Institution (BNSI), as well as preshipment inspection of goods for export,

possibly under the supervision of BNSI.

3. Procedures for designing statistical

sampling plans.

4. Methods of inspection and sampling.

In the second instance it has been acutely

realized that the very laboratory procedures

necessary to monitor the performance of the

manufacturing process must be subjected to

quality control analysis, so that training in

quality control as it applies to laboratory

testing procedures will be necessary for the

technical staff in industrial laboratories

and at BNSI. Such techniques as the use of

control charts, the mathematical concepts of

standard deviation, and coefficient of

variation, the assessment of the reliability

of a measurement, etc., need to be taught

throughout industry.

In an effort to make such a goal a reality

our needs may be placed in three categories,

namely:

1. Training of personnel.

2. Establishment of appropriate

laboratory facilities.

3. The acquisition of appropriate

machinery and equipment for testing.

With regard to the first of these categories,

it must be said that during the first three

years of the establishment of the Barbados

National Standards Institution, an expert in

quality control provided by UNIDO advised on the implementation of quality control measures in industry and conducted some preliminary courses on the topic among

managerial personnel as well as technical

staff in industry. There is, however,

further need for training of our governmental

and industrial middle management in:

1. The theory and practice of

measurement, with the emphasis on the

treatment and analysis of errors.

2. The statistical basis for

establishing the degree of precision and

accuracy in both the manufacturing process

and the assessment thereof.

14

Members of the staff at BNSI have

participated in quality control training

courses in India, Sweden and elsewhere, but

it is necessary that such opportunities be

made available also to industrial personnel.

Because of the expense in sending large

numbers of people abroad, it would be

advantageous both for us and sponsoring

institutions to have such training courses organized in Barbados.

A major difficulty which our industry faces

is the acquisition of proper and appropriate

instrumentation for quality control

laboratories. One obvious method of

surmounting this difficulty is the purchase

from abroad of necessary equipment. However,

this is known to be expensive, and currently

not many industries are likely to be able to

afford much of such equipment which very

often is too elaborate for their needs and is

difficult to service and maintain mainly

because of the lack of adequately trained

technicians. Another way of overcoming the

obstacle is to be able to design and

fabricate the simplest possible equipment

appropriate to our needs and from less costly

and more readily available components.

Indeed, we at BNSI have already been faced

with this alternative as the solution of
difficulties encountered when requested to

test batteries for automobiles. This

approach, however, would necessitate training

in instrumentation for testing laboratories,

for some of our mechanico- and

electro-technical personnel.

2. ESTABLISHING A METROLOGY SERVICE IN BARBADOS WITHIN THE CONTEXT OF A

STANDARDS INSTITUTION

In November 1966, when Barbados became an independent nation, modern industrial arts

and skills were still, with but a few

exceptions, relatively unknown on the island.

There were, of course, the long established

foundries, two in fact, which made and

serviced equipment for the sugar factories;

the dry dock in Bridgetown, which offered

docking services to such ships as could enter

our then small harbour; artisans practicing

such skills as plumbing, welding, carpentry,

masonry, still mainly with hand tools; and

mechanics who repaired automobiles on the

island. But apart from the activities

associated with the above mentioned

establishments and craftsmen, virtually no manufacturing was carried on.

Up until then virtually all trading was done

with our traditional colonial partners, Great

Britain and Canada, who sent us food and

manufactured goods in return for our sugar.

To a lesser extent some trade was also

carried on with the United States of

America.

The Government of the day wisely sought to

lead Barbados along the path of

industrialization, and to extend our trading

activities throughout the world. Its first

task was laying down the infrastructural

facilities for such a daring process. A new deep water harbour was built and is currently

being extended, and industrial sites were developed at favourable locations on the

island. Diplomatic relations were established with more and more foreign

nations, and Barbados assumed her well earned

membership at the United Nations.

It was during these years of national growth

that the Barbados Industrial Development

Corporation came into being. The activities

of this latter body acted as a stimulus for

145

the nurturing of the idea of the

establishment of a National Standards

Institution, an idea which had been voiced

many years before by farsighted statesmen.

Some import substitution was beginning to

take place in the areas of garments, building

materials, processed foods and pharmaceutical

trade, and more and more products were being

exported to the countries of the Caribbean

Free Trade Association and

beyond. More and more the need for a Standards Institution, and with it a modern

metrological service, was appreciated. It was during this period that UN experts,

Mr. Davis and Mr. Gordon Weston, assisted the

Barbados Government in examining the

desirability and feasibility of establishing

the Barbados National Standards Institution

as it later became known. Later, with the

able assistance of local personnel,

UNIDO personnel of the first United Nations

country program for Barbados laid the

foundations of the Standards Institution. It was to be a major infrastructural support for

the promotion of industrial development and

expansion of trade. Among its immediate

objectives, were:

1. To assist in the metrication

changeover in Barbados, and

2. To upgrade the metrology system in

Barbados thus assuring equitable value in

trade and commerce, both locally and overseas.

In my presentation, therefore, I shall be

making specific references to the experience

in Barbados during its present attempt to

bring up to date its system of metrology.

When in 1972 the Government of Barbados

decided to commence establishment of the

Barbados National Standards Institution,

it was obvious that an integrated approach to

the problems of modernization in industrial

development and standardization had to be

taken, so that the implementation of the

Standards Institution encompassed within its

scope both the establishment of an up-to-date

system of legal metrology and the transition

from the Imperial system of measurement to

the metric system. There is consequently a department of metrology within the Laboratory

Section of the Institution and a technical

officer of BNSI has been assigned the special

task of piloting the varied aspects the
metrication procedures within the ambit of

general standards work at BNSI.

The old Weights and Measures Act of Barbados

dates back to 1891. Under the Act, the

standard of weights and superficial measures

in the Island was the same as in the United

Kingdom. However, the standard of liquid measure of capacity in Barbados was that in

which a gallon was equivalent to 231 in 3 as

in the United States of America, whereas the

gallon in the United Kingdom was equivalent

to 227.274 in3

.

The system was administered by an Inspector

of Weights and Measures who was also the

Senior Superintendent of Markets. Under the

Act, the Inspector was obliged to keep in the

Public Market in the city of Bridgetown, in

Speightstown, in Holetown, and at every

police station, 19 different standards of

weights and measures. He had also to supply

every Inland Revenue Officer with one of each

of these weights and measures. All weights

and measures used in trade had therefore to

be verified and suitably stamped by the

Inspector of Weights and Measures.

It was inevitable that under the conditions

prevailing in Barbados up to the present day,

that the day to day administration and

execution of the provisions of the Weights

and Measures Act, was left to persons with

inadequate technical training resulting in

deficiencies in maintenance and calibration

practices necessary to maintain an acceptable

standard of measurement throughout the

Isl and.

It is one of the purposes and functions of

the BNSI to establish and maintain a Metrology Service, including electrical

measurement capabilities. Towards this end,

a bill to revise and consolidate the law

relating to weights and measures, and to

provide for the introduction in Barbados of

the International System of Units (SI) and

for related matters, was enacted by the

Parliament of Barbados in 1977. The

provision of a modern system of legal

metrology, including as its fundamental base,

the measurement of mass, length, time,

temperature, and capacity, is recognized to be

an essential component in the industrial

development process in Barbados. That such a system must take cognizance of the present

day expansion of the SI system throughout the

world is accepted as inevitable. Provision

is made in the Act that every standard of measure shall be verified by such competent

institution as the Minister directs (in this

case, the Minister of Agriculture, Food and

Consumer Affairs). The Act provides for the

national standards of weights and measures to

be kept at such place, and under such custody

and under such conditions, as the Minister

determines. It is virtually certain that the

place so determined will be the Barbados

National Standards Institution.

Our current capability of measuring

temperature, time, and electrical quantities

is limited, but it is planned to improve

capability in these areas by the acquisition

of appropriate equipment. Barbados is

currently able to attract a number of

electronic industries, including computer

components assembly plants, and would benefit

from having facilities capable of offering

appropriate calibration services. We at the

Institution will therefore be able to offer

in the near future such metrological services

as are needed to support most of the local

manufacturing and distributive trades, as well as a significant part of the scientific

and technical institutions not directly

associated with industry and trade.

One of the important facets of our trade is

that carried on with our Caribbean Common

Market partners. Our work, both in

standardization and metrology, consequently

has significant impact upon such activity.

It is, therefore, not surprising that the

efforts at coordinating activities in

standardization and metrology have been made

through such regional bodies as the Caricom

Secretariat and the Caribbean Common Market

Standards Council. A survey is being

conducted of all the metrological facilities

in the Region, with the ultimate goal of

identifying a regional reference system of

measurement.

There are, at present, a few important areas

to which consideration will have to be given.

Of prime importance among these is the

ability to guarantee with reasonable accuracy

the masses and volumes of bulk products

intended for international trade. Again,

existing reference masses have not been as well cared for as might be expected, and

146
little attempt has been made to verify their

accuracy periodically.

One of the technical difficulties facing the

Institution will be its need to carry out all

of its calibration procedures under

conditions of ambient temperatures varying

from 25°C to 31°C outdoors, but perhaps

stabilizing around 28°C to 29°C indoors

during the daytime. Economic factors

prohibit the installation of equipment

designed to control temperature and humidity.

The fact that the humidity level in Barbados

is usually 80% or higher adds to the

difficulty of maintaining equipment in good

working condition, and will necessitate

frequent cleaning and other measures needed

to protect equipment from corrosion.

In view of these circumstances, the BNSI will

find it necessary to pursue a vigorous

programme of training of personnel at all

levels in order to re-establish a sound

metrological service in Barbados. The first

step in this direction was taken when a member of its technical staff participated in

a training programme, under the United

Nations auspices, held in Moscow, USSR,

during August to November, 1977.

BNSI was set up with aid and expert advice

from the United Nations Industrial

Development Organization (UNIDO). Similar

aid will again be forthcoming from UNIDO as

part of a second Country Programme for

Barbados. Much emphasis will be placed on firmly establishing the metrology department

under the guidance of a United Nations expert

in Metrology. This will afford further

opportunity for training for our laboratory's

technical staff. Such training exercises

will, of course, have significance also for

many other standardization activities, such

as advising industry on the use of

measurement and measuring instruments in

quality control, maintaining the desired

accuracy and precision in the Institution's

own day to day testing activities, as will be

related to such programmes as the

Certification Marking Scheme, import and

export inspection, and so on.

As mentioned above, the process of

metrication in Barbados has already been set

in motion and is expected to gather momentum

very rapidly, culminating in about the middle

of 1979, when it is planned that the Island

will have completed the conversion to the

metric system. The two processes of

establishing a sound metrological service and

converting to the SI system of measurement

are being closely coordinated at the

Standards Institution, through its Standards

Implementation Division, in collaboration

with appropriate government law-making and

administrative bodies. Personnel at the

Institution are also engaged in programmes of

education on the SI system of measurement,

directed at industry, schools, and the general

publ ic.

If I may be permitted to speculate a little

about the future, the growing concern throughout the world about energy

availability and use is shared by Barbados,

and there exist two obvious sources to which

we may turn in order to meet some part of our energy need. These are solar and wind

energy. Already a local industry in the

manufacturing and sale of solar water heaters

for domestic use has been established. The

Standards Institution has been holding talks

with manufacturers of these devices with a view of developing programmes for testing of

the devices. It will, therefore, undoubtedly

become necessary to equip ourselves with

instruments capable of measuring solar

radiation and to establish proper standards

of reference for the calibration of such

instruments. Al so, as industrial development

continues, there will be a need for greater

precision and accuracy in engineering, and the

Standards Institution will have to upgrade

its means of measuring lengths, masses, time,

electrical quantities, and temperature in

order to cope with the growing needs and

aspirations of our nation.

I shall briefly sum up by saying the above

brief assessment of our needs would serve to

indicate the areas of basic technical

knowledge in mathematics and the physical

sciences, with particular emphasis on their

application to industrial processes, from

which we will need to draw, in order to

bridge the gap between our aspirations and

current capabilities.

147
PAPER 4.4 - CERTIFICATION AND QUALITY CONTROL PROBLEMS IN GHANA

A. 0. Ntiforo

Ghana Standards Board

Accra, Ghana

In the developed countries, the markets are critical of the quality of products and

services offered while in developing

countries such as Ghana, preference for

products and services is dictated by the

price. This factor affects to a great extent

the general development of the economy —

especially of industry. In such a situation

where the market is sensitive only to

quantity and price, industrial production

results in a continuous degradation of

quality, and this becomes a serious

impediment to improving it. The poor person,

therefore, spends his meager resources to buy

products from which he does not obtain the

maximum benefit and thus spends more money in

replacements or adaptations and becomes

poorer and poorer.

In an attempt to rectify this situation,

Ghana established a standards body whose

functions include the promulgation of

standards and the ultimate implementation of

these standards through certification.

Certification

Certification may be defined as "Assurance by or under the supervision of a competent and

independent organization that goods are consistently in conformity with a standard or specification."

Problems with Certification

In Ghana, the certification system is

generally based on analysis of the finished

products with the aim of assessing whether

the products satisfy laid down standard

specifications. This system in effect

represents a quality assurance arrangement

which I believe works satisfactorily in

highly industrialized countries, where

factories have their own well developed

quality control systems including

laboratories for testing and research

purposes. The situation in Ghana is that

quality control methods, where they are in

operation, are often inadequate.

1

The available scientific and technical

infra-structure is also usually insufficient

to provide the necessary technical aid to the

factories. Moreover, like a lot of other

developing countries, Ghana operates a market

which is oriented towards quantity and price

rather than quality criteria. It is our experience that the application of the

certification system based on analysis of the

finished product is effective only for a small part of the industrial output without

any serious impact on the general economy of

the country.

A way to get round this problem is said to be

the adoption of the certification system

practiced in Ecuador, which is based on certification of the industrial output, i.e.,

a type of auditing of the manufacturer's

quality control system. This auditing is

undertaken by the Ecuador Institute of

Standardization under a contract signed with

the manufacturer. Inspection methods as well

as information analysis are decided upon.

Among the advantages of such a system may be

cited the following:

a) It supplements the factory's technical

capabilities in quality control;

b) It provides additional means of

analysis and assurance;

c) It provides training for factory

personnel

.

The practice of "auditing the manufacturer's

quality control system" operates in Ghana to

a large extent. Manufacturers who apply for

the Ghana Standards Board Certification Mark,

as a condition open their premises for

inspection by Technical Staff of the Board.

Quality control systems are checked on during

the inspection, and where necessary

appropriate recommendations for improvement

are made. The award of the Certification

Mark is dependent mainly on the acceptability

of both the quality control system and the

quality of the product.
Qual ity Control

Quality control plays an important part in

the certification exercise. Without an efficient quality control set up in a factory, final product examination does not

adequately offer the guarantee expected in

certification.

The major problem with regard to quality

control in Ghana is the lack of understanding

among manufacturers as to what the concept is

all about. Especially among the

semi -1 iterate manufacturers, quality control

is thought of as implying the acquisition of

highly sophisticated test equipment to

undertake final product examination. Other

relatively more informed manufacturers

consider time spent on quality control (or even the quality control department) as a waste in production time because it does not

yield money directly. They easily forget the

savings in production waste and excessive

inspection costs which arise from the

application of quality control practice and

techniques.

The question of lack of technical staff also

affects the desires of manufacturers to

establish quality control systems in their

factories.

There is also a problem posed by the present

economic constraints which do not permit

manufacturers to import the right quality raw materials. Manufacturers import low quality

raw materials in an attempt to stretch the

scanty foreign exchange allotted to bring in

as much raw material as possible in order to

keep the factory running until the next

allotment. The quality of some of these raw materials brought in is such that one is never surprised to see the quality of the

final products that come out.

Some of the problems outlined will be with

Ghana for some time. One will only expect

considerable changes when the economy shows

definite improvement.

149

SECTION 5 - SEMINAR DINNER PRESENTATION AND DISCUSSION

PAPER 5.1 - UNITED STATES PREPARATIONS FOR THE UNITED NATIONS CONFERENCE

ON SCIENCE AND TECHNOLOGY FOR DEVELOPMENT

Ambassador Jean Wilkowski

U.S. Coordinator for the United Nations

Conference on Science and Technology for Development

U.S. Department of State

Washington, D. C.

I should like to begin by adding my welcome

as well to the distinguished visitors from

many countries who have come here to this

National Bureau of Standards seminar—visitors from Africa, Southeast Asia, and

Latin America. I have had the pleasure of

talking with them, both during the

reception and at dinner time.

Next I would like to congratulate the

National Bureau of Standards of the

Department of Commerce, as well as the Agency

for International Development, for the

excellent job of preparation for this

important seminar. NBS has a very special

place in U.S. preparations for the UN

Conference on Science and Technology for

Development, which will take place in Vienna

next August. Not only does NBS have a vast

and useful store of knowledge directly

relevant to the objectives of this

conference, but it has gained wide experience

in sharing this knowledge with other

countries and helping them to serve the

objectives of the Conference. Other things

NBS has include: a sense of real mission in

helping the developing countries, and a perception of opportunities in which to

employ its skills and experience. One of

these opportunities is the UN Conference.

When I assumed my responsibilities, some

15 months ago, as U.S. Coordinator for this

Conference, Ed Brady and Steffen Peiser of

NBS were the first persons to call on me and

to offer their assistance. Jordan Baruch,

Assistant Secretary of the Department of

Commerce, was one of the first persons I consulted with. And so NBS has been in on U.S. preparations for this Conference right

from the start.

Let us now turn to the NBS seminar. How does

it fit into United States preparations for

UNCSTD? The focus of the seminar is on the

technological knowledge base. You have come together to consider such subjects as measurement capabilities; developing country

needs and U.S. experience in meeting them;

national and international standards, which

are a sine qua. non of effective world trade;

the importance of management; quality

control; information on technology. From

these subjects we are hoping will come

helpful guidance and recommendations to us on how we can better prepare for this Conference

in a way which will be directly relevant to

the needs of developing countries. We are counting on our visitors from other countries

to help us in this regard.

I know my good friend, Dr. Herb Fusfeld, has

given you some serious challenges in his

keynote address. I should like to table

another challenge. That is, that you be

painstaking in your deliberations so your

recommendations will be as relevant as possible to the UNCSTD Conference agenda.

Let us take a look at that agenda, which is

serving not only as points of discussion in

Conference deliberations, but as an outline

for the national papers which each country is

required to prepare.

There are only three major elements in the

Conference agenda, as follows:

First — the choice and transfer of

technology, and the obstacles in the way of

this choice or transfer. For example, the

developing countries are asking at this

Conference how they can pull away from their

dependency on foreign technology. How can they expand their education and training?

How can they develop more scientists, that is

their own scientists, their own engineers?

How can they become more self-reliant? Still

other questions they are asking are: what

has been the historic pattern or trend in

their past choices of technology? Did these

choices make them more or less dependent?
How can they break such dependency trends?

Thus, you can appreciate from what I have

said that the essential issue on the agenda

is capacity. How can the developing

countries improve their indigenous capacity

to better choose, select, adapt, and manage,

as well as create, their own technology?

The purpose of this Conference is to help the

developing countries find answers.

The second agenda item addressed is the

institutional arrangements for the transfer

of technology:

-- How to improve on modes of cooperations

between the industrialized countries and

developing countries so as to make this

relationship more efficient as well as more

productive. Your attendance here at the

NBS/AID seminar can make a real contribution

in the search which we must jointly make for

the answers.

-- How to shape new forms of international

cooperation in the application of science and

technology to development. For its own part,

the United States government is thinking of

establishing a Foundation for International

Technological Cooperation, which President

Carter proposed in Caracas, Venezuela. We

will talk later about this subject.

As you review the subject matter of this

seminar and consider measurement

capabilities, quality control work,

standards, management, and information

systems, I hope you will keep these agenda

items in mind. For example, what does your

review suggest in terms of new institutional

arrangements? Are the transfer means

adequate, or are they inadequate? Can

private industry as well as the government

individually or jointly devise new institutional arrangements as part of our

preparations for this Conference? Another

question: Can U.S. private industry do more

than it now is in helping to meet the

capacity issue? If so, what kinds of

approaches must we as a government make to

industry? We must search for reasons why

some institutional arrangements have

succeeded, while others have failed, and what

are the essential elements in this test which

can guide us in looking at new institutional

arrangements on a broader geographic scale?

Finally, we come to the third item on the

Conference agenda, which deals with the

question of how the existing United Nations

system can be more effectively used in

152

accelerating inputs of science and technology

for development. For example, do we have

adequate machinery at the United Nations now without creating new institutions with

respect to information systems, regional

management training centers, standards

institutions? If we have detected weaknesses

within the UN system, what should

participating countries propose to correct

these weaknesses?

Having challenged you to be specific in

helping us, I would like to use the remainder

of the time this evening to tell you how the

United States looks at this UN Conference and

how the United States is preparing for it.

The United States believes that science and

technology cannot be looked at in isolation

simply because science and technology do not

operate in a vacuum. They operate within a given economic setting or environment. Let

us look for a moment at four separate but

interrelated economic problems in the world

economy today. There are the industrialized

countries, which face the critical question

of how to restore growth and progress , how to moderate inflation, how to overcome unemployment. There are the oil exporting

countries, who are looking at the question of

how to accommodate to the financial surpluses

which they now enjoy and which for the most

part are deposited in industrialized

countries on a short-term basis. These funds

must be put into long-term productive

investments. Then there are the

middle-income developing countries, who face

the question of how to resume the remarkable

growth rates these countries enjoyed in the

late 60s and the early 70s. And then there

are the poorest countries in the third and

fourth world, who are completely absorbed

with the question of how to relieve the

dismal prospects of poverty.

Economic observers have traditionally held

the view that the rate of growth in the

industrialized countries is important to the

developing countries; that is, the

industrialized countries are viewed as the

engine of economic power and the developing

countries as the train being pulled along. A neglected view which now appears to be

gaining fashion is that growth in the

industrialized countries may be strongly

affected by growth in the developing

countries or the lack of growth, which is worse. If this is true, it behooves us to
help stimulate the developing countries so as to help them and ourselves in our respective

national interests.

The United States believes there are benefits

for the rich countries in accommodating

the proposals of the developing countries for

changes in the existing international system.

Thus, the United Nations Conference on Science and Technology for Development is a timely event, which comes at a moment of

serious structural change in the world

economy. So, regardless of the present state

of our economies, we are all asking if the

industrialized countries and the developing

countries can find it in their mutual

interests to create a new set of economic

relations to enable both sides to achieve

their respective economic and social goals.

Increasingly, we are finding the importance

of drawing attention to United States trade

with the developing countries. In 1977, 35%

of total United States exports, or $42 billion, went to the developing

countries. Forty percent of all U.S.

manufactures are presently going to

developing countries, or more than the total

which the United States ships to Western

Europe, Japan, Eastern Europe, and the Soviet

Union combined. On the import side, it is

noteworthy that 40% of our total imports, or

S67 billion, comes from developing

countries. Comparing the totals of exports

versus imports, it is obvious that the United

States has a deficit balance with the

developing countries of about £25 billion.

It is obvious that to the extent we can improve developing countries' capacity to

choose U.S. technology, these countries

should thus be in a better technical position

to buy more from the United States, and for

the United States to sell more and ultimately

to narrow this trade deficit. So we return

to the original proposition that it should

be in the U.S. interest, as well as developing country interests, to serve the

basic objectives of this Conference. Thus,

in examining how the United States is looking

at UNCSTD, we conclude that we have

legitimate interests at stake. UNCSTD comes

at a time when there are fundamental changes

occurring in the world economic sector,

changes which will profoundly affect the

shape of the world in the next 20 years, into

the year 2000.

Our next topic concerns what the United

States is doing to prepare for this

Conference. First of all, I should clarify

that the Conference is actually in session

and has been in session since the first

preparatory committee met in New York in

January of 1977. We believe that the

preparations for this Conference are as important, if not more important, than the

two-week formal session in Vienna next

August. The Conference has called for

elaborate preparations at the national,

regional, and international levels. There

have been two preparatory meetings — in New

York in January of 1977, in Geneva in January

of this year — and there will be a third

prepcom in New York in January of next year,

with perhaps a fourth prepcom in May at a site

to be determined before the final Conference

in Vienna in August. This Conference is a highly complex international meeting on global issues. It is both highly technical

and political. It is part of the North-South

dialogue, and the issues are ones of justice

and equity as well as economic growth and

progress.

United Nations conferences have tended to

raise the consciousness or awareness of

participating governments on global issues.

They often cause governments to do what they

might otherwise avoid. As the developing

countries prepare, they have tended to review

and evaluate their economic development

policies and the role which science and

technology has in their plans and policies.

This is causing developing countries to

develop more coherent and comprehensive

science and technology policies, to link

their public and private sectors more intimately. Some developing countries have

begun serious questioning of elitism in

science and technology and to urge more

practical links with the productive sectors.

Finally, preparations in the developing

countries have enabled them to prepare

clearer statements of their needs and

requirements which are being set forth in

their national papers.

On the industrialized country side, the

United States has also made a policy review,

and it has questioned whether it has an

153
appropriate or coherent U.S. policy on science and technology for development. In fact, the White House in February of this

year has requested that such a policy be

drafted for Presidential review. This study

is nearing completion. We have also reviewed

th role of science and technology in our bilateral assistance programs, and the

mandate for international cooperation in

science and technology in agencies other than

AID. Our national paper has been a difficult

one to construct, because as happens with all

international conferences, all countries are looking at a new subject almost for the first

time. The U.S. national paper will cover the

following topics: goals and concepts; the

role of science and technology in the

development of the United States (that is,

a bit of historical review); the private

sector experience; the U.S. government

experience in applying science and technology

to development overseas; international

institutional arrangements; and, finally,

issues and approaches.

Let me read to you the introductory statement

of the national paper:

"In 1976, seventeen distinguished

scientists and engineers from eight countries

around the world met in Bellagio, Italy,

under the auspices of the U.S. National

Academy of Sciences to discuss the role that

science and technology can play in helping

solve some of the world's major problems.

This group offered the following general

observation:

"'Humanity is, for the first time in its

history, within reach of managing its fate

toward a better life for all. This new condition has been reached through a period

of two centuries of intensive application of

science and technology to the satisfaction of

human wants. But the benefits of technology

have not been shared equally by all nations.

A thirst for these benefits is the focus of

rising expectations for a better life in many

parts of the world still in the grip of

poverty and uncertainty about the future.*'"

*Science, Technology and Society — a Prospective Look, U.S. National Academy of

Sciences, 1976.

The foregoing statement is the work of the

former head of the National Bureau of

Standards, Dr. Lewis Branscomb, now Chief

Scientist for IBM. He is also a member of

the United States Steering Committee

concerned with U.S. preparations for the

Conference.

So much for United States approach to the UN

Conference. Our preparations have focussed

on a policy review and writing of the

national paper.

Let us turn to other preparatory efforts. We

undertook a number of background studies, the more prominent of which were those done by

the National Academy of Science and the Fund

for Multinational Management Education. In addition, we have undertaken at least two

dozen special research projects related to

various topics of the Conference agenda. And we are sponsoring any number of workshops or items related to the three-point Conference

agenda. For example, we have coming up in

November a series of four workshops in

collaboration with the International

Management and Development Institute, which

will be testing some of the propositions

developed on industrialization in the two

studies mentioned -- the NAS and FMME

studies. Another workshop with Winrock in

Arkansas will focus on appropriate

technology. All in all, we see ourselves as completing phase one of U.S. preparations,

which had to do largely with developing an information base for decisions on U.S.

positions. We are beginning phase two, which

will deal mainly with what it is the United

States might do in the way of new things in

its bilateral and multilateral assistance

programs focussing on science and technology.

We will be looking for common ground which

will enable us to join in a consensus with

other countries in new programs or initiatives at the Conference. The U.S.

proposal for a Foundation for International

Technological Cooperation is one of the new

ideas the U.S. will be advancing.

As you know, the President of the United

States made a proposal in Venezuela that

there be such a Foundation. The genesis is some studies which were done at the Brookings

Institution and later developed by the Office

of Science and Technology, the Office of the

Science Adviser to the President.

154
A Planning Office has been established under

the leadership of Dr. Ralph Smuckler of

Michigan State and Mr. Princeton Lyman of

AID. The FITC would be concerned with many

aspects of development. Its essential aims

would be as follows: ~ to assist the developing countries in

strengthening their indigenous science and

technology capabilities; — to develop science and technology

education and manpower training programs; — to encourage both the public and the

private sectors engaged in science and

technology efforts relevant to development; — to support collaborative research and

development between the United States and

developing country institutions.

The concentration over the next ten months

will be on the terms of such a new institution, its programs, and how

specifically relevant we can make the FITC,

not only to the objectives of the Conference

but over the long term leading into the year

2000.

This now brings me full circle to the

importance of the NBS/AID seminar. We are looking to you for ideas, suggestions, and

recommendations. The United States

Government has no monopoly on technology. On

the contrary, the bulk of technology resides

in the private sector. Whatever our proposals at this Conference, they will have

to represent a blend between what it is the

U.S. Government can do on non-proprietary

technology for which the government has

expertise and authority, and proprietary

technology, over which private enterprises

and not the U.S. government has authority.

These distinctions should be made, as both

sides in the Conference learn more about each

other's capabilities and needs as regards

science and technology for development. I wish you well in your deliberations, and I look forward to receiving a set of very

useful recommendations.

Thank you.

DISCUSSION :

Dr. Fusfeld:

Since you have a draft of the National Paper

in your hand, what is it that you expect

during the next four or five months other

than editorial corrections? Is the input

phase over, or is there still some opportunity or mechanism for meaningful

changes?

Ambassador Wilkowski:

The period for inputs into the National Paper

is over. But that doesn't mean that private

sector inputs for the U.S. position at the

Conference are over. The Paper is simply a requirement on the part of the Conference

sponsors to get countries to think about

their own policies, where they have them or don't have them, to evaluate these policies

and to make proposals. It is a starting

point for the Conference. But we will

continue to welcome inputs from workshops

such as yours which affect the position

papers we write and the positions that we

will take, and the proposals that we will

make. For example, we have not attempted to

summarize in the National Paper all of the

recommendations in all of the research

projects, like that of the Academy of

Sciences or the Fund for Multinational

Management Education (FMME), that we have

received so far because we are limited on space. But we will welcome right up until

August 1979, ideas from both the public and

the private sector for positions that the

U.S. Government should take at this

Conference.

Dr. Fusfeld:

And are there mechanisms that you envisage by

which you will request this in some formal

way? How will people who are not intimately

involved in the process even know or be

exposed to the state of the Paper or the

state of what you need, at that point?

Ambassador Wilkowski:

Since we have organized this coordinating

office, we have engaged in outreach to the

private sector. I have met with many groups,

such as this, and so have members of my staff.

155
The Fund for Multinational Management

Education had at least 40 workshops. We have

about 10-15 more workshops coming up at which

we will make our wants, our needs known. And

in addition to that we are in correspondence

with a lot of non-governmental organizations

and with other private sector agencies. We

have a Steering Committee, which has on it

representatives of government at the

Assistant Secretary level, of industry and

business, of research foundations, and of the

university and academic community, so that our needs are generally well known, and I think there shouldn't be a problem with

this.

Questioner:

Will the National Paper be published in

advance of the Conference, do you have a target date?

Ambassador Wilkowski:

Yes, it will be. It will be available from our office. That's another way we will be

able to get input. People will see it and

will think that this is all wrong, or they

should have tal ked more about this, or here's

an idea that I can relate to this point in

the paper. They can easily submit these

thoughts.

Questioner:

What is the makeup of the U.S. delegation to

be?

Ambassador Wilkowski:

It's quite a sensitive question. You can imagine when you have a major United Nations

Conference coming up, the number of people

that would want to be on the delegation. I would guess the delegation size would be

anywhere from about 35 to 65, and there will

be a lot of private members; but this is

small, and characteristically small, because

the Carter Administration wants this. I don't know what the standard ratio has been

for private sector to public sector on the

delegations. I would guess it might be

something like 40% private sector,

60% government. But, at any rate, I have a file for the recommendations that have been

coming in. I have been turning these over

to Ambassador Hesburgh, the President of

Notre Dame, who is chairman of the United

States delegation, and he will be discussing

the matter with interested people over at the

White House. I don't know when he will want

to announce the delegation. There will

certainly be Congressional members as well as private sector members on it.

Dr. Middleton:

One of the problems that we in the

International Organization for

Standardization in Geneva have had, is that

we are not part of the United Nations system.

As you know, standardization is a mul tidiscipl inary activity. We have found it

very difficult to find any part of the UN

with which we can talk about technology

policy. Would it be giving anything away to

give an assessment as to whether any part of

the UN would be given a leading role as a result of the Conference?

Ambassador Wilkowski:

We have a Secretary General of the Conference

at the present time, who is the focal point

at the United Nations, and I think you ought

to let him know the views of your particular

office. There is also the Office of Science

and Technology, headed by Dr. Klaus Standke.

There is the United Nations Development

Program. It seems to be that there are a number of contacts for you, but we have here

Mr. Frank Lancetti from our Bureau of

International Organizations, and since it is

a highly specialized question, I would

suggest that you discuss it with him.

Dr. Middleton:

You have, I think, put your finger on the

problem. There are so many points of

contact. I wonder if you have made any

assessment i n the U.S. paper as to the role of

the UN after the Conference?

Ambassador Wilkowski:

Yes, we have. That's "international

institutional arrangements." It's

camouflaged by that glittering UN

general ity.
Prof. Lieberman: Ambassador Wilkowski:

I think you used the words, "appropriate

technology."

Ambassador Wilkowski:

Yes, I am bound to. The Congress requires

it. If I don't, if I make any public speech,

or write anthing, that doesn't have

"appropriate technology" in it, I am in error.

Prof. Liebeman:

Whose "appropriateness?" Would you care to

go further into it?

Ambassador Wilkowski:

Yes, actually we put it in quotation marks,

"appropriate technology." You know, this is

a contentious issue, and there is a great

deal of tension between those advocates who

would satisfy basic human needs with

traditional technology, or "light capital"

technology, or labor-intensive technology, or what some people call "appropriate

technology," but which the developing

countries resent, because they say, "who says

it's appropriate?" We like to think of it as the right technology, the technology which

the people in the developing countries have

chosen for their particualr economic, social,

and cultural setting, and for the job,

development job, that they have in mind.

Prof. Lieberman:

And this will be said at the meeting, as our position?

Ambassador Wilkowski:

Well, it's said in the National Paper.

Questioner:

Has the Conference planning process given any

attention to reconciliation of the inevitable

differences in views emanating from the

politicians and from the technicians at the

Conference?

Well, that, of course, is very much a domestic

policy matter. In our preparations, as I tried to point out, we started out with very

serious outreach to the private sector, by

contracting with the National Research

Council, and by going as well to the

consortium headed by the FMME, which also had

the Council of the Americas and the

International Chamber of Commerce in it as well as George Washington University, and our

research studies likewise have been spread

throughout the sectors of our very

pluralistic society here in the United

States. That is the way the United States is

going about it.

We have plans in our preparations to meet

this problem. We are hoping that we will be

able to send out what we call travelling

seminars, mixed groups of government and

private sector people, who would go out to

other countries to talk about the content of

their National Papers and of our Nation

Paper, and we would encourage the meetings to

be mixed groups on both sides. I would hope

that those of you from embassies here —

Mexico, the Philippines, and others -- would

raise this question with your own governments, because we would like to see this Conference a very practical conference,

with a reasonable program of action, and not

a conference in which politicians, as you

suggest, talk with one another.

And we don't want to be talking past one another. It is a government-to-government

conference, there is no question about that.

It is both a highly technical and a highly

political conference, and it is a very

complex subject. As I was saying to somebody

else, it is not only science, which has its own "Mafia," it's technology which has its

own, and it's development, so that it is all

three of these disciplines, wrapped up in

one, and each of them has their own language,

almost their own folk-ways. I don't know

whether I have answered your question or not,

but we are conscious of the problem, we are trying to do our part in an effort to overcome it.

157
Questioner:

What you are saying is that the United States

is prepared to follow up this Conference with

potential bilateral dialogues 5 or whatever way

it may develop, if this problem develops at

the Conference?

Ambassador Wilkowski:

Not only to continue, we are doing it now.

We have had bilateral conversations with a number of governments. The Argentines are in

town; we are having a three-day session;

science and technology is on the agenda.

Some of the people from my office will be

talking with them tomorrow.

Questioner:

What is your reaction to the State Department

appropriation bill which denies funds for

technical assistance to international

organizations? How does this affect your

operations?

Ambassador Wilkowski:

This is a very serious action that has been

taken on the part of the Congress. The

gentleman is referring to a condition that

strikes $27 million from the State

Department appropriation and forbids any of

these funds being used for technical

assistance to the United Nations. You may

recall that when the President signed that

appropriations bill for the State Department,

he voiced very strong objections to this

action, and having done that, you've caught

the wi 1of the Administration, which is to

attempt to reverse that. This action was not

taken because a majority of the people in the

Congress feel this way, but it was taken for

a number of reasons which I think you and I might discuss privately before we leave here

tonight. Frank Lancetti, do you have

anything further to add? You are our expert

on the subject.

Mr. Frank Lancetti

It is true that Congress prefers that the

funds, which are normally used by the

specialized agencies of the UN, come from a voluntary contribution. The reason for this

is that voluntary contributions allow us to

1!

control the way taxpayers' funds are used,

whereas the contribution to the general

budget of the specialized agencies goes into

an anonymous accounting fund, which is used

generally at the discretion of the

Secretary-general of the organization, which

denies us control. There are other important

implications stemming from this Congressional

act, and probably remedial action will be

taken within the next two or three months.

Questioner:

I am curious to know to what extent

individual members of private enterprise in

the U.S.A. will share your commitments. In other words, you are proposing something to

the United Nations; do you think that in the

future, members of the private enterprise in

the U.S.A. will share those commitments with

you, although you say that 40% of the members

of the delegation will be from private

enterprise? Can Company X in the future say,

this doesn't concern me?

Ambassador Wilkowski:

Lots of American companies will never hear

about this Conference I am sure, but we are making a serious effort to engage them. We

have members of the private industry, as I told you, on the Steering Committee, and we have engaged them in making recommendations

to us. The FMME study I told you about has

three sets of recommendations. One set is to

the companies themselves. They themselves

have said, "We ought to be doing more of

this, more of that, in order to be responsive

to developing countries. We've heard what

they are saying, and this is what we think we ought to do. More education and training.

More laboratories with a conscious policy to

employ host country nationals." The FMME

consortium made another set of

recommendations to the United States

Government, and a third set of

recommendations to the host countries.

But, to answer your question, we have engaged

in a very active campaign to encourage the

private sector -- in fact, I was down in

Atlanta talking with a group of the IBM • people just last week — we've encouraged

them to review what they're doing. Do you

know that some of these companies don't even know how many people they have in education
and training, how many people they have of

the 220,000 in the United States now, how may

of those they are paying for on scholarships.

Some of them really don't know, they have not

really focussed on this. They have one little branch of the company here doing one

i thing, and the other, and so forth, and they

have not really pulled their stories

together. We are trying to encourage them to

look into their company operations and to

aggregate them on a company basis. We can't

aggregate all of them for U.S. industry,

we'd never get through with it. But we are trying to get them to think about it by

asking them to do this. And I have been

corresponding with a number of companies. I have gone out and talked with them, as well.

And we hope that we can get a response from

them. Because when you look at it, it's

quite impressive what they are doing. We

have an authority here on a series of

workshops, one of the members of my staff.

We are going to have four workshops with

chief executive officers of the leading

corporations. The meetings will be held, one

in New York, one in Chicago, one in Atlanta,

and another one out in Los Angeles, at which

we will again go to the private sector and

ask them what they think of this set of five,

ten, and twelve recommendations, what they

think of the National Academy study

recommendations on industrialization, and

what they think they can do as a company

contribution independently, in the spirit and

under the umbrella of this Conference. So we

will see what their response is.

Mr. John B. Maieane (First Secretary, Lesotho

Embassy)

Which countries have been aproached with

respect to the ten recommendations in the

FMME report, and which have responded?

Ambassador Wilkowski:

These have only been recommendations from a consortium of American private interests to

host countries. We have not attempted to

convey those in any formal or official way to

the host countries. But in our meetings with

developing country representatives, we will

bring these recommendations to their

attention. In fact, the IMDI workshops which

are coming up in these four cities across the

United States, will specifically look at

1!

those recommendations to the host countries,

and we have invitations out to a number of

representatives of developing countries, and we will ask them for their reactions to these

recommendations to host countries. Will you

be in Washington for any time? We would like

to invite you to come into our office and we can talk more about it. In this scheme of

things I do have a clear set of the countries

we are interested in contacting, to visit.

Mr. Radway:

I have a compliment to offer. Is that in

order? I am one of the private sector

speakers on the agenda for this seminar, and

although I don't have an extensive knowledge

of previous preparations for previous

international conferences, I would like to

salute the Ambassador and the entire

inter-agency task force and coordinating

staff. For as far as I know this effort to

communicate and create a dialogue at

different levels between the United States

Government and the United States private

sector has been greater with respect to

preparations for this Conference than for any

other single event that I am aware of, in the

history of this country. And I think that

although perhaps the gentleman's key question

cannot be answered with certainty, the sense

of his question has been answered in that the

United States Government under Ambassador

Wilkowski has made a major attempt to really

engage in a sincere dialogue with the United

States private sector to create some mutual

understanding and education, which hopefully

will be an on-going process in this country.

I think that the process of international

technology exchange will be benefited by this

dialogue going on in the United States. So I offer my compliments.

Ambassador Wilkowski:

Thank you very much.

SECTION 6 - WORKSHOPS - MANAGERIAL RESPONSIBILITIES AND TECHNICAL KNOWLEDGE

Chairmen: Dr. Robert W. Middleton, Assistant Secretary General

International Organization for Standardization, Geneva, Switzerland

Miss Winifred Armstrong, President

International Management Development Institute, New York City, NY

CHAIRMAN'S COMMENTS :

Miss Winifred Armstrong:

I want to share with you some of the questions

that we panelists in the two managerial

workshops have discussed prior to this

session, and which both Dr. Somer's and

Dr. Qurashi's papers highlight and elaborate.

Dr. Fusfeld suggested yesterday that in the

Western countries industrialization has taken

place more or less in synchronization with

the rate of growth of technology, that

industrialization and technology grew at more

or less the same pace. The question that we have been dealing with in this and other

sessions is: Can we transfer technology such

that it increases the rate of growth of

developing countries? Dr. Somer's paper

suggested that technology would not

necessarily increase the rate of growth of a developing country, unless it was tied in with

the local technological base. What we mean by

that is the local level of skills, the local

ways of working, the local infrastructure, the

availability of local finance. Dr. Qurashi

proposes that foreign + local = technology.

And again, in our discussion, we concluded

that the transfer of technology will probably

not increase the rate of growth, unless it is

tied in with local objectives. These

objectives can be increasing the number of

people engaged in productive activity, whether

as employees, or as suppliers, distributors,

or servicers for an enterprise; increasing

foreign exchange, either by increasing exports

or decreasing imports; using local materials

and resources, rather than putting local

producers out of work; or producing better or cheaper than an imported product. But, in any

case, unless the foreign technology is tied in

with the local technology base, and serves

local objectives, its transfer may not

contribute to increasing the rate of growth.

In a sense, the choice of technology is

Management by Objective. The choice relates

to the objective that you have, but we have

all seen plenty of examples where that has not

been the case. Technologies have been "sold"

by developed countries and "selected" by

developing countries as being "the latest";

latest is not necessarily best. Wrong choices

of technology have crippled growth: "too big" can skew the costs forever, raise the price of

a good or service beyond what it needs to be;

"too high" technology can force workers and

small producers out of work. Objectives

should determine the choice of technology:

not vice versa.

In a sense then, the transfer of technology

can be a misnomer. I am playing devil's

advocate a bit here, but quite deliberately.

You don't transfer technology, you develop

technology. Part of your choices are local,

part of your choices are foreign. And unless

you can combine them usefully, you haven't

got a useful output, you haven't achieved

your objective.

We all know that technology, in essence,

cannot be adopted, that it has at least to be

adapted, and we've all had experience with

knowing that to operate and adapt a technology you ultimately get to the point

where you have to innovate. And part of our

problem, part of the wringing of hands in

international forums, is over the necessity

of developing people who cannot only adapt,

but innovate (in both less and more

industrialized countries).

Mr. Coria urged me to stress that the need is

not only training in a sense of the higher

levels — the design engineers, the people who

know the science and technology of materials,

the people who understand man and machine

relationships -- it is also developing an attitude in the workers and in the

entrepreneurs, from top to bottom, to identify

problems when they see them, to report those

161
problems, and to make suggestions. I would

note that in the United States, in my limited

experience, the best plants are often those

where the operator of the machine or the

operator on the floor takes the responsibility

for identifying the problems, reporting the

problems, and making suggestions. At that

point the engineer and the operator together

work out a solution. The engineer frequently

doesn't know what the operating problems are. Thus an attitude of mind by all concerned

that "I am responsible for making this work"

may be precedent, in a sense, to the

successful acquisition and use of a technology

over the long term.

Some of what we are getting at here, is that

we are not really transferring technology.

We are building a system, in which our choices are in part to take from outside and

in part to build from inside, to contribute

to growth. And that system is only going to

work if it is tied in with and contributes to

the growth of the local resources, if it

supports local objectives, and if it enables

us to work with the technical and innovative

skills of local personnel.

162
PAPER 6.1 - A SURVEY OF DEVELOPMENT EFFORTS IN TURKEY

Professor Ta

Middle East Tech

Ankara,

Before presenting you an analysis of various

applications in Turkey of standardization,

quality control, and technology transfer, I would like to give you a brief outline on Turkey, its present state of development, and

the nature of problems being confronted in

industrialization. I believe that it is a good representation of a developing country,

and the conditions that I am going to

describe may also apply to other developing

countries.

Turkey is. located in the Near-East. Total area of the country is approximately 300,000

square miles; 97% of this land is in Asia,

the remainder being in Europe. The

population is 45 million. The country is

surrounded by the Black, Aegean and

Mediterranean Seas. The eastern part and the

sea shores are mountainous; the central

portion, Anatolia, consists of inland

plateaus. After the fall of the Ottoman

Empire, which lasted six centuries, the

Republic of Turkey was founded in 1923.

Turkey has been an agricultural country for

centuries; 60% of the labor force resides in

the countryside. Literacy is 62% (76% among

men and 48% among women). Main agricultural

products are cereals, tobacco, cotton, sugar

beets, fruits, vegetables, and nuts.

The following figures should give an idea of

the rate of industrialization of Turkey.

Since 1962 the industrial production has

increased, on the average, 9.7% annually.

Gross National Product (GNP) has increased by

18% annually, based on current prices. This

corresponds to a 6.7% growth rate when

adjusted for inflation. In 1962 agricultural

products constituted 38% of the total

national income. This figure has now dropped

to 23%. The figure for industrial products,

on the other hand, has increased from 15% to

23% in the same period. Thus, in 1977 the

total shares of agriculture and industry in

the national income weYe about equal.

Natural resources include large quantities of

minerals, such as chromium, copper, boron,

li

ik G. Somer

ical University

Turkey

manganese, zinc, iron, wolfram, and sulfur.

A recent discovery of rich uranium deposits

along the Black Sea shore is under study.

Little information is presently available on this subject. In the field of petroleum,

domestic crude oil production accounts for

only 20% of the total national consumption.

The major industries are textiles, cement,

fertilizers, iron and steel, copper, zinc,

food and beverages, petroleum refining, coal,

and borax.

In spite of heavy investments in the past 15

years, Turkey still imports machinery,

transportation equipment, iron and steel,

petroleum, fertilizers and chemicals,

creating a large deficit in the balance of

payments. Exports in 1971 corresponded to

58% of imports. As a result of the impact of

the rise in oil prices, this figure dropped

to 30% in 1977. In other words, foreign

trade at the present is creating a 70%

deficit in the balance of payments. In 1977

Turkey's import and export figures were

$5.8 billion and $1.75 billion

respectively. The cost of crude oil and

petroleum products imported in the same year

reached $1.44 billion.

Ever since the foundation of the Republic

some 55 years ago, the main problems of

Turkey in industrial development have stemmed

from an insufficient number of scientists and

technologists, lack of know-how, insufficient

capital for investment, and large deficits in

the balance of payments. The Republic

inherited practically no industry from the

Ottoman Empire. This fact can be seen from

the number of industrial workers of that

period, which was only 11,000 in 1923.

Realizing that the private sector did not

possess sufficient capital for investment,

the Government began establishing state-owned

industries as early as 1930. Little or no control was exercised on the choice of

technology, process or product quality.

Large investments were made in the fields of

cotton yarn, textiles, mining, metallurgy,

cement manufacturing, and iron and steel
production. This situation continued until

1950, when the Government began to encourage

private and foreign investments. Large

numbers of plants were built within a short

period. It was a new experience for the

public to observe the functioning of these

industries, namely the private and the state

sectors. They were evaluated with respect to

product quality, dependability, price and

service to consumers. Today, in contrast to

the inefficiencies of most state-owned

industries, private plants still operate with

high efficiency, good maintenance,

modernization, and profit. Within this mixed

economy, per capita income reached $1009 in

1977, a figure still too low.

I believe that it is possible to find many

similarities between the conditions in Turkey

and other developing countries. With this

assumption in mind, I would like to point out

certain factors relevant to development in

general

.

Industrial development means different things

to a developed country and a developing

country. Among the industrialized nations

the primary goal is to discover new methods

and new products for competition in the world

markets. In the developing countries,

however, the initial problem has been to

build sufficient industry to supply the

nation, such that the volume of imports could

be reduced. Although in many of these cases,

the capacity of a plant required for domestic

consumption may not be high enough for

economic operation, it is often subsidized by

the government and further importation is

prevented to give the firm a monopoly in the

local market. The need for foreign currency

and the ever increasing problem of the

balance of payments force these nations to

make great efforts on a national scale for

self-sufficiency. High taxes, generous

educational investments, and export

promotions are characteristic among these

nations

.

It is generally agreed among scholars that

only through persistent, productive, and

efficient research can such differences

between the developed and developing nations

be eradicated.

Developing countries may face the following

shortcomings with respect to scientific and

technological research efforts:

1. Only a small fraction of the GNP,

usually much less than 1%, is allocated

annually to research and development.

2. The percentage of the population

involved in research and development is too

smal 1

.

3. Although basic research activities are primarily conducted in universities and

research institutes, sufficient coordination

may not exist between them and the productive

sectors

.

4. In general, the importance of research

and its potential problem-solving

applications are neither sufficiently

understood nor appreciated by the productive

and managerial staffs.

5. Such research work as may be

undertaken by some of these organizations is

poorly supported.

In order to meet the requirements of economic

development and social progress, weight

should be given to research in technology,

organization, and control, directed to

lowering investment and operational costs

while increasing output. Support should be

given to research whose direct contribution

to an increase in productivity cannot be

measured but which contributes to economic

growth, to research which reveals the

features of social progress and increases the

effectiveness in the implementation of

decisions. Manpower should be trained for

economic and industrial development research.

Finally, basic and applied research should be

supported by both the private and state

sectors, becoming more effective by a close

cooperation between them. The recognized

gaps and shortcomings should be filled

through international scientific

organizations with concentration on those

activities required by the demands of

development.

Industrial development in developing

countries has been practiced mainly by

purchasing manufacturing plants on a turnkey

164
basis. Thus the cost of design,

construction, installation, and start-up is

paid by the purchaser. Payment for the

know-how and technology transfer constitutes

a substantial portion of this fee. Under

these circumstances one can hardly expect

such a plant to be competitive in the world

markets. In fact, their operation is often

subsidized by the Government. Imported

technology may not be outmoded, but certainly

it cannot be expected to be up to date. This

method of industrial development, therefore,

forces one nation to follow the advancement

from behind, never being able to catch up

with the technological developments of the

advanced countries. In order for the

products to be competitive, certain factors

such as the availability of raw material and

labor must greatly be in favor. Other

factors affecting industrial development,

product quality, and cost can be listed as

fol lows:

1. Construction of a plant on turnkey

basis may take from two to five years for

completion. Since capital is scarce and the

interest rates are high in developing

countries, such a delay may increase the cost

of construction by as much as 50 to 100%.

2. The contracting firm has to employ a large number of its own personnel at the

construction site. This means the

multiplication of normal salaries by a factor

of two or three.

3. Training of local technicians, plant

operators, and administrators also adds to

the total cost.

4. Once the plant begins to operate,

maintenance becomes a problem. Experts are often invited for advice and trouble

shooting. Thus, local management is

dependent on the original contractor until

sufficient personnel are either trained or acquire experience.

5. Industrial plants built by foreign

firms operate within certain preset

specifications. Consequently, they cannot be

modified with ease for higher capacity or greater efficiency.

6. Lack of research maintains the

original design and product specifications

over many years. Meanwhile, the discovery of

a new product as a substitute often appears

in the market, making the old product

obsolete or more expensive. Transistors in

place of radio tubes, electronic calculators

in place of mechanical devices, and satellite

communication in place of cable transmission

are some examples of such a situation.

Considering these handicaps, developing

countries should adopt a way by which

industrial development can be achieved

economically and with greater assurance of

continuity and progress. It may be suggested

that the best way to accomplish such a task

is to mobilize the resources of the nation

towards the developmental needs of the

country. That would entail scientific and

technical research with particular emphasis

on the efficient and effective utilization of

human and material resources.

There are numerous examples of organized

research undertaken at the time of

development of countries which are now highly

industrialized. Agricultural research

conducted by the land-grant colleges in the

U.S.A. since the second half of the last

century has been the primary factor in the

development of agriculture and related fields

in this country. Basic research in

agriculture opened new fields of application

and promoted the training of scientists and

engineers, not only in agriculture but in

other fields as wel 1

It was mentioned above that industrial

development should be achieved economically

and with greater assurance of continuity and

progress. These considerations led to the

establishment of several agencies in Turkey,

among which I would like to mention a few:

The Turkish Standards Institute (TSE) was founded within the Union of Chambers of

Commerce, Industry and Commodity Exchange in

1954. Its goals were to produce publications

in standardization, to establish a library of

standards, and to undertake a program of

cooperation between the scientific and

technical institutions in Turkey. TSE

operated until 1960 with a small budget,

employing only a few personnel, most of whom

165
were volunteers. The Institute gained a new

status by a law passed in 1960. This law

obligated each member of the Union to pay a certain percentage of its annual income to

TSE. The buildings and laboratories of the

institute were financed by AID. Today, it is

well established, performing various

functions, such as research

in standardization, cooperation with

industries, universities, and scientific

organizations, preparation and publication of

standards, training of personnel, cooperation

with the International Organization for

Standardization (ISO), and controlling the

quality of products which bear the TSE sign

as a symbol of conformity to respective

standards

.

It is well justified to state that TSE has

substantially contributed to the industrial

and agricultural development of Turkey in the

past 20 years. It created a certain

discipline and confidence in the domestic and

export markets in quality and

standardization. Nevertheless, it still has

a long way to go before its services are perfected. For instance, in evaluating its

present performance, one cannot help noticing

the following:

1. In the preparation of national

standards the priority question is not

seriously considered.

2. Standards are prepared by personnel,

most of whom are employed in Universities or Government offices: these people have little

or no contact with the industry, not knowing

its problems sufficiently or the qualities of

the raw materials available to them in the

market.

3. The cooperation between various

industries in the preparation of standards is

not too satisfactory.

4. Even in the preparation of national

standards, similar standards of other nations

are consulted. Little thought is given to

the question of adaptability. This has

created numerous problems, particularly in

the standardization of agricultural

products

.

5. The present procedure of certification

is inadequate and misleading. Any product

If

which bears the TSE sign meets the minimum

level of quality set by the relevant

standard. There may be several products, all

meeting this level of quality but one superior to the others. The TSE sign,

however, makes no distinction among them.

6. Quality checking of product

specifications at certain intervals for

certification is not handled efficiently due

to insufficient personnel and funds.

For many years TSE has tried to establish a metrology laboratory but has not succeeded.

This is creating a serious weakness in the

technical facilities available in the country.

Without a properly equipped and maintained

metrology laboratory, many of the existing

technical facilities in Turkey are jeopardized, I should say, paralyzed, in

certain cases. For instance, correlation of

measurements at national and international

levels is difficult and expensive. It should

also be noted that without a system of

calibration, certification in the

international markets would have no value

because the accuracy of the measurements

cannot be guaranteed. Similarly, in the

application of legal metrology (laws

pertaining to weights and measures) and the

determination of tolerances, a metrology

laboratory becomes an absolute necessity.

There are, however, differences of opinion in

Turkey on where this laboratory should

eventually be located. Since it requires

extreme care and precise control (humidity,

temperature, etc.), also a highly qualified

technical staff, TSE may not be the proper

place to handle the job. As an alternative,

the research center of the Scientific and

Technical Research Council of Turkey

(TUBITAK), located in Istanbul,

may be a more appropriate place for this

laboratory. It is also hoped that with the

contributions of its technical and managerial

staff, the proposed metrology laboratory may

someday develop into a National Physical

Laboratory within this organization.

The State Planning Organization (SPO) was established in 1960. Attached directly to

the Prime Minister's Office, SPO undertakes

comprehensive development planning in Turkey.

It is guided by a High Planning Council

chaired by the Prime Minister. SPO has three
principal divisions: the Social Planning

Division, the Economic Planning Division, and

the Coordination Division. They prepare and

follow the short and long range plans known

as the Five-Year Development Plans. So far,

three such plans have been concluded, a fourth is under application.

Public Sector Investment Projects, whose

number may reach as high as 100,000, Special

Projects involving large capital investments,

and other development and industrialization

projects, are studied and evaluated by SP0.

When selecting different project proposals,

particular emphasis is placed on the income

effect, foreign exchange effect, employment

effect, correction of consumption patterns,

production costs compared with import prices,

and the effect of regional impact. No

technological selection or assessment of the

technology factor is performed, however.

Results of these studies are published in the

annual programs. At the beginning, SP0 was given also the responsibility to offer

training courses for people responsible for

the collection of information for evaluation

purposes during and after project

implementation. This responsibility was later transferred to the State Investment

Bank.

At this point I would like to mention one project which is relevant to this Seminar's

topic. SP0 was selected as the Government's

implementing agency for a three-year project,

undertaken by the United Nations Development

Program (UNDP) in Turkey, titled "National

Quality Control System". This project, which

started on 15 November 1977, has the following

development objectives:

"To assist the Government of Turkey in the

establishment and operation of the

appropriate and legal, institutional and

technical infrastructure needed to further

improve the quality and reliability of goods

and products manufactured and produced in

Turkey, with a view to promoting and ensuring

a greater acceptibil ity in the international

and national markets."

The project will also assist in developing

quality consciousness among industrialists

and producers; in introduction and

implementation of effective quality control

in industrial plants; in developing the

closer integration of the national activities

in standardization, quality control, and

quality certification; in improving the

technology of manufacturing processes,

thereby developing greater national

technological capability and self reliance;

in providing training in quality control to

the personnel for production and management.

Needless to say, this project will greatly

contribute to the development of Turkey in a long-neglected field, quality control (QC).

The current study in this project is

seriously handled, aiming to establish a National Quality Control System. It is

facing, however, certain difficulties which

originate from the following facts:

a. To create an effective QC System for

the entire country, a great variety of

factors must be taken into consideration.

b. There are numerous Government

organizations, institutions, municipalities,

and others who have some responsibility under

the present law related to the quality of a product

.

c. The range of products to be covered is

not limited; thus, the range of technologies

to be catered to is also unlimited.

It is also believed that the ultimate success

of the proposed system of quality control

will depend on its constant refinement and

development in the light of practical

experience and changing circumstances.

A preliminary survey carried out by the UNDP

experts in connection with this project

revealed that "the concepts of industrial

quality control are not fully understood by

most industrialists nor by many of the

official and semi-official organizations.

There is the mistaken idea that inspection

and testing of the product constitutes

quality control. Only in the more sophisticated industries and then, usually,

only where there has been some foreign

influence, has there been any attempt to

organize effective QC systems, internally

within manufacturing plants. As a result,

there are no trained or experienced QC

personnel in anything like the numbers which

167
would be required for industry in the event

of a rigorous policy for in-plant QC being

pursued by a national QC system."

Returning now to the activities of the State

Planning Organization, it is justified to

state that this organization has been

successful as an effective central planning

authority. Although certain influence on policy decisions from outside can always be

expected, since its direct involvement in

project implementation was cancelled in 1971,

it has managed to function as an advisory and

investigatory body quite independently. SPO

always emphasized the need for quality

control, standardization, documentation,

metrology, and packaging.

During the first Five-Year Plan Development

Plan (1962-1966) the lack of any

policy-making authority for scientific and

technological research was recognized. As a result, the Government decided to establish

the Turkish Scientific and Technical Research

Council (TUBITAK) in 1963. I would

like to mention the activities of this

Council, particularly for its contribution to

development and technology transfer.

TUBbAK, like the SPO, is attached to

the Prime Minister's Office and is,

therefore, independent of other Ministries.

The Establishment Act states that

"tObITAK 1 shall be the central

authority responsible for assisting the

Government in formulating a national policy

for research in the fundamental and applied

sciences and for formulating education policy

in the scientific field." Thus,

ii i

- TUBITAK has been given power and an open mandate to promote and carry out

research activities for this purpose. Since

its foundation, the Council has undertaken

the mobilization of existing research

potential, strengthening of the institutional

structure of Turkish science, providing

facilities for information and communication

to Turkish scientists. Within this program

TUBITAK established three research

institutes, a number of research units in

various institutions, and the Turkish

Documentation Center. It supported

scientific meetings and provided scholarships

at different age levels, mainly for the

training of future researchers.

Scientific and technological research

laboratories are located in Gebze near

Istanbul . Studies requested by the industry

are evaluated for their importance and fields

of application. In this respect the

laboratories operate in a fashion similar to

that of TNO in Holland. Bench scale and

pilot plant studies are carried out for

process development, use and evaluations of raw materials found in Turkey, and trouble

shooting. Automatic control and computer

applications are also introduced to the

industry.

According to TUBITAK, technology

generation in Turkey is at a preliminary

stage. Although the adaptation of technology

has a special importance in development,

there is no institution in the country

controlling this process. Meanwhile,

technology transfer is being carried out by

individual organizations without any

coordination among them. Even if these

organizations would favor such a coordination, the unification of the existing

laws and regulations would be difficult.

Today I have heard a number of our colleagues

speak on technology transfer. I have a different view on that. Because technology

transfer is not handled on a more generous

basis, it seems that industrialized nations

are being accused to a certain extent. But,

after all, it takes a lot of money and effort

to develop a new process, a new product, or a new method; and an organization is not

expected to hand this over to others without

a profit. It is a business proposition. If

they have perfected something, they have the

right to sell it. I remember that the DuPont

Company invested more than £60 million for

the perfection of nylon. Or the purification

of materials in the production of

transistors was a very expensive proposition.

Why should they give this knowledge, after

working on it for years and spending so much

money to others without anything in return?

A company has to consider its own profit,

and never jeopardize its own interests. We

have to realize that. If we cannot get this

operative technology as we wish, it's not

their fault. It's our fault, that we have

not handled this research ourselves, or we are not willing to afford, or to pay a sufficient amount to such firms.

168
TUB ITAK considers that in the

transfer of technology, for products to be

eventually exported, up-to-date technology

should be imported, for competitive reasons,

while for items of local consumption, there

is no need for such up-to-date technology.

Instead, a labor-intensive technology should

be substituted. Again, I do not agree with

this. Just because the developing nations

have an employment problem, there is no need

to go back and choose a technology which is

not up to date, which is not modern, for the

sole purpose of employing more people. I remember that in 1954-1956, in the United

States, too, there was a lot of argument on the switching to automatic control systems.

Many of the labor unions objected that this

would cut down employment. Nevertheless, it was very successfully applied, and today

there are petrochemical plants miles long,

where you seldom see a worker working

outside. And there are no objections from

the union or the management, and everybody is

happy. I am sure that by importing

up-to-date technology, even for products for

local consumption, developing countries

should be well ahead, and definitely in a better position than by importing an old

technology for the sake of employing more

peopl e.

One thing is definite, that license

agreements should be prevented as much as possible, simply because the seller of a license puts a lot of restrictions on the

process. For instance, you have to buy all

of the raw material from the licensor, and

you are often prevented from exporting any of

the product. Also, the patent rights which

may result from the purchasing of this

license are often confiscated by the

1 i censor

.

However, for the sake of the record, I want

to note that TUBHAK believes that:

a. The policy of technology transfer

should take into account the distinction

between products for export and those for

domestic consumption. For export products,

the imported technology should be so advanced

as to enable competition at the international

level. For the products for domestic

consumption, on the other hand, labor

intensive technology should be preferred to

enhance employment.

b. For items of domestic consumption,

there is no urgent need for technology

generation, since many of such industries

face little or no problems in this respect.

However, certain selective industries, such

as the processing of a raw material available

within the country, may require technology

generation.

c. For technology transfer, an effective

coordination is necessary among the

Ministries and agencies involved in decision

making and implementation. An organizational

setup is needed for searching, collecting,

storing, and retrieving information on technology transfer. Studies should also be

directed to determine the existing

technological potential and technology

generating activities.

A brief survey was undertaken to determine

how technology has so far been transferred to

Turkey. The results reveal that license

agreements for processes and patents,

importing of machinery and equipment, foreign

investments, exchanging of experts within

technical cooperation programs, and obtaining

of information from books, journals, and

other printed documents constitute the basic

modes of technology transfer.

From the considerations stated above, it is

obvious that the developing nations must

import technology from the industrialized

nations until they reach the level of

generating their own technology. Before

deciding which technology to import, these

nations must have adequate and reliable

information in their hands. They are often

confronted, however, with restrictions

imposed on the technologies by their

proprietors. The decision making, too,

becomes a difficult task, as there is certain

reluctance in accepting the new and modern

methods. Developing nations still consider

such modern technologies as luxurious,

unnecessary, and often in conflict with their

employment policies.

In the license agreements, too, certain

conditions are often imposed on the recipient

(licensee) by the supplier (licensor). These

169
may be restrictions on the exporting of goods

produced according to that particular

license, an obligation to import all raw materials from the licensor, acceptance of a package deal (turnkey project), or confiscation by the licensor of all patent

rights which the licensee may acquire as a result of the application of that particular

1 i cense

.

The National Productivity Center (NPC) is

another organization, established by law in

1961, to perform studies and do research to

increase productivity in industry and

agriculture. NPC organizes seminars and

workshops to train managers and the

personnel employed in industry and

agriculture. New techniques and methods are introduced in these seminars. Work study

(time and motion study), quality control,

value analysis, value engineering,

ergonomics, marketing and productivity

measurements are heaviy emphasized.

Performance analyses are carried out in

industrial centers, and methods are demonstrated.

After the National Quality Control System is

established, the National Productivity Center

is desired to take an active part in the

System. A Productivity Officer at each

regional and district office is expected to

instill the idea into the minds of managers,

supervisors, or others concerned with

production, that effective in-plant QC can achieve considerable gains in productivity.

This officer will develop personal contacts

with industrial communities in his area,

visit managers in their factories, organize

in-plant seminars, arrange for groups of

employees from different factories to meet

and discuss common problems, organize

Productivity Groups, QC Discussion Circles,

QC Local Associations, Management Debating

Groups, etc.

Although there are other organizations

contributing to the National Development,

they are less important and will not be

mentioned within the limited space of this

report

.

In summary, Turkey has made great efforts for

development, particularly in the past 25

years. People, considering industrialization

as a national duty and a matter of national

prestige, sacrificed a lot for its success.

For instance, even the middle-income people

have been paying taxes from 35% to 58%, a rate highest in the world. Factors

preventing rapid progress have been

insufficient capital for investment, large

deficits in the balance of payments, rising

oil prices, and the lack of know-how.

It should also be confessed that

mismanagement and poor cooperation among

various agencies prevented a higher rate of

development. This is usually the case in

developing countries, where available

potentials are not efficiently used due to

bureaucracy, poor quality of management, and

lack of cooperation. Therefore, the

establishment of a new institution to perform

a certain task in a developing country is not

sufficient to achieve the desired goal. The

main problem lies in the proper

administration and the proper incorporation

of this facility within the development

complex. These facts are often learned by

experience, either too late or after much

money and effort have been wasted.

Now, what should be done in a developing

country to expedite the rate of development?

What are the methods and procedures one can expect? I personally think that it is most

important to create conditions in which a continuous development can be achieved. In

other words, we have to make sure that the

conditions we create in the country open the

way for industrial development. For

instance, heat would flow, if you had a temperature difference. Mass would flow, if

you had a concentration difference. Or

electricity would flow, if you had a voltage

difference. So, what difference should

exist, or what are the conditions, by which

development can be achieved in such

countries? I believe that this potential is

the education level, both in theory and

practice.

Of course, science and technology or research

in basic sciences, education in basic

sciences, and application in engineering,

should be well balanced. Many people

consider scientific education unnecessary, in

a way, for developing countries, because,

they claim, the country is not at the stage

170
where sophisticated theories of science

should be brought out. I am of the contrary

opinion. For instance, Russia has progressed

very rapidly, not because of its system,

because even during times of the Tsars in

Russia, there was a very high level of

science. They had perfected elasticity

theory, for instance, by 1912, and they were

far ahead in mathematics, physics, and

chemistry, compared to many of the Western

nations. The Tsars made a habit of inviting

top scientists to Russia. For instance, the

genius in hydraulics, Bernoulli, was paid a high salary to come to Russia and do

research, and they succeeded in that. They

almost succeeded in getting Gauss, the famous

mathematician, but the German government was smarter, to keep him there.

A few years ago, we had a meeting, in Africa,

in a developing country. A friend suggested

that they should train technicians to build

roads. Just as a suggestion, I mentioned

that in the training they should include also

certain principles pertinent to road

construction, such as adhesion, cohesion,

porosity, weather effects, the composition of

tar, oxidized tar, etc. I was bitterly

attacked by the people, that this was not

creating an atmosphere by which this country

should develop. And, they decided that they

should just ask the people how to lay the

stone and to cover it with tar. I'm sure today, those roads either do not exist, or require a lot of repair, because people

applying a certain technology should be well aware of the scientific background before

they try to apply it. And I do believe that

today's theory is definitely tomorrow's

appl i cation.

So, in conclusion, while many people suggest

practical education in a developing country,

I believe that such a limitation on education

prevents rapid development. In a developing

country education should be well balanced

between theory and practice. A sound

training in basic sciences assures continuation of progress.

Government investments in industry and

business in the developing countries should

be discouraged, simply because any enterprise

so created is generally inefficient,

over-staffed, and unprofitable. Private

enterprise, on the other hand, proves to be more efficient with greater assurance to

expand in time. Since capital is scarce in a developing country, people should be

persuaded to participate in industrial

investments by purchasing shares. It should

be noted, however, that the rapid devaluation

of money in developing countries, which is so common, makes certain investments, like in

real estate, more attractive. Accordingly,

the government should take proper steps in

taxation to prevent such speculations and to

direct investments towards industrial

development.

Foreign investment in a developing country

requires careful selection and

implementation. Protection of the national

interests at the utmost level has to be

considered before deciding what areas and

technologies require or even tolerate foreign

i nvestment

.

There is an immense desire in most developing

countries to import sophisticated machinery,

computers, and other fancy equipment. This

tendency often constitutes a waste and should

be prevented. The efficiency of complex

machinery is generally low due to the lack of

properly trained technicians.

Two years ago I visited a machine shop in a developing country. The machines they were

using were of high quality, all computerized,

etc. I asked about the value of the

investment they had made, and also calculated

what possible return they could get. It was less than 1%. So what is the use of

importing such expensive machinery, which

will eventually result in a very small

return, except for a good show to political

people?

You will all remember that at the end of the

Second World War, England and Germany used

machinery which was quite obsolete at the

time. Nevertheless, until they had developed

their industries and had developed sufficient

capital, they had to resort to using such

out-of-date machinery, and they have been

successful

.

I think that work or working should be

appreciated by workers, and that they should

be disciplined. Now, a certain discipline

171
comes from the level of industrialization of

a country. I have seen many workers in

Turkey who have been expelled from their

plants, because they were not doing their job

properly. They went to Germany (by the way,

we have more than 500,000 workers in

Germany). There, they have been very

successful, and their employers have been

well satisfied with their performance. Now

how we can create that atmosphere and the

feeling that a worker considers himself part

of that industry, is something to be

considered.

I also believe that industrialization and

development should be introduced at early

stages, for the school teachers and students

in primary schools, for instance. I admire

certain examples that I have seen. For

instance, when I was at one time working in

Niagara Falls, I would see a young boy

selling newspapers early in the morning. It was months later that I found out that he was the son of the director and owner of the

plant. In many developing countries, if the

boy is the son of a rich man, it would

be thought shameful for his father to put him

to work. Now, this idea should change. This

morning, it was interesting to hear about the

progress in Korea. "The primary reason for

that progress was work, hard work, nothing

else. Unless we are willing to work, unless

our children are willing to work, then no one

can look with confidence into the future.

The young generation in a developing country

should be taught to appreciate working

without shame or embarrassment. This

philosophy should be introduced at the

primary school level. Unfortunately, the

underdevelopment of many countries originates

from the idleness of their people and the

complete dependence of the youngsters on their parents even after completing their

education. Desire to work and the sense of

responsibility for the development of their

country by working must be introduced among

the rich and the poor as well. I would also

suggest that the inheritance tax in a developing country should be very high for

the same reason.

In the developing countries, labor unions and

management should be protected by laws. No one of these two should dominate the other.

And in the preparation of laws and

172

regulations, I think that the national

interest should be the prime consideration.

I strongly believe that industrialized

nations should take a greater interest in the

development of developing nations. There is

needed a new agency to assist these nations

in technology transfer, quality control,

standardization, metrology, certification,

and marketing. The proposed agency should

form a triangle with International Monetary

Fund and World Bank, to contribute technical

and managerial assistance in the realization

of industrial development projects. The same agency should even continue its work several

years after the project is fully realized. I would also think that every such project with

modern technology and management would

constitute a new example to the already

existing agencies and industrial plants of

that developing nation. Thus, they will

learn the easy way by observing each time a new example for their own improvement and

moderni zation

.

DISCUSSION :

Dr. Robert W. Middleton (Assistant Secretary

General, International Organization for

Standardization, Geneva, Switzerland):

With respect to your last comments, your

suggestions with relation to the World

Bank, I would like you to know, as a matter

of coincidence, that I happen to have an appointment next week with the World Bank to

discuss a project very similar to that which

you have suggested.
PAPER 6.2 - EXPERIENCE OF AN INDUSTRIALIZING NATION IN DEPLOYMENT OF TECHNICAL KNOWLEDGE

TO MEET NATIONAL NEEDS

M. M. Qurashi*

Director General

Appropriate Technology Development Organization

Islamabad, Pakistan

1. TECHNOLOGY, ITS TRANSFER AND ADAPTATION

The Industrial Revolution is now entering a most promising and complex phase as it

becomes global in scope. Presently, at least

77 countries in Asia, Latin America, Europe,

and Africa, containing about two-thirds of

the world' s popul ati on, are in the

industrializing or semi-industrialized stages

of development, including a few that are

still building up the physical

infrastructure. Most of these nations are newly independent and intent on shaping

strategies of industrialization suitable to

their own goals, needs, and values. These

national orientations are to be matched with

a world situation in which the international

mobility of technology and resources is

creating new forms of interdependences among

nations. Technology, in the sense of the

practical application of invention or discovery, is as old as mankind itself. What

is new is the science-based technology or high technology, the outcome of industrial

research, a phenomenon of the present

century. Accordingly, there has been a considerable urge to transfer this technology

to the lesser developed countries in the last

50 years or so.

The term technology has been variously

defined, but I am sure that we all realize

that in general terms technology is supposed

to do things for people, and should bring

benefits to the people at all levels,

especially to provide progressive

self-reliance, if it is to be any use in the

long run.

The total flow of technology to any one country can be considered as the sum of the

imported technology and the local technology.

By itself, each is incomplete. The latter is

The views expressed in this paper are the

author's own and not necessarily those of

the Appropriate Technology Development

Organi zation.

a minimum in the so-called "turnkey" jobs,

with hardly any transfer of technical

information or basic technological skills.

However, even the more sophisticated

countries have had to import science or technology, or both, at various stages of

their development. And it is in fact a mixture of direct importation with a considerable measure of what is known as vertical technology transfer that seems to

give the optimum development. This involves

grafting of suitable unembodied technology,

that is to say, the know-how rather than the

actual machinery, onto the existing technical

base in the developing country.

In agriculture, the application of modern

know-how necessarily involves adaptation to

suit the soil, climate and other aspects of

the specific environment, e.g., improved

rice-growing techniques must ultimately be

tailored to fit the particular conditions of

a particular area. While there have been some striking successes in this field, it is

fair to say that present efforts (over the

developing regions as a whole) have been

largely concerned with only a few major grain

crops, grown under irrigated conditions.

Application of even these results of adapted

technology has not necessari ly brought

socially equitable results, as they have

usually tended to favour the larger farmers;

but this apart, many important fields are

still neglected in cultivated agriculture,

while as a rule little attention has been

given to applying modern technology to animal

husbandry, forestry, and fisheries.

Nevertheless, the need for proper adaptation

of imported technologies in agriculture is

generally recognized . But in industry and in

large-scale construction projects, the

situation has been rather different. Here

the tendency has been towards the wholesale

introduction of technology from

industrialized countries in packaged form,

often as turnkey projects. Typically, this

direct or "horizontal" transfer of technology
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is associated with some measure of foreign

equity participation, which may in itself

make for difficulty in adapting any part of

the package to meet local conditions. The

modern sector thus built on simple transfer

of the industrialized countries' technology

has tended naturally to be capital intensive,

labour saving, and dependent on imported

machinery and chemicals.

2. TECHNOLOGICAL CAPABILITY AND TRANSFER

INDICES

In a paper that I published a few years

ago [1], I was able to describe and formulate

a "technical development capability" index,

in an effort to define what sort of project

any developing country could reasonably take

up with some hope of success (see also

Appendix A). This question is important,

because all of us are trying, for various

reasons and in response to several pressures,

including political pressure, to become more

and more sophisticated in our technology.

And if you try to transplant something that

is too sophisticated, it just doesn't fit, it

doesn't grow. The Technological Development

Index is to a first approximation given by

the square root of the GNP multiplied by the

square root of the per capita GNP. A slight

refinement of this was worked out in a later

paper, and this gave very interesting

resul ts.

Following on from this, I was able, with the

help of certain data and discussions with

various colleagues, to work out a very simple

formula, showing the total quantity of

technology transferred into a given country,

from one country "A" into a country "B", and

how that depends on the same type of index.

In fact, I was able to show that the total

quantity of technology transfer, which you

might evaluate by the amount of money spent

on the imports of technology that is

transferred, is given by the product of the

development indices of the donor and

recipient countries. Obviously, technology

transfer is a function of both. For

instance, if the recipient is totally

incapable, there is hardly any chance of

effective transfer.

[1] M. M. Qurashi , Proc. Pak. Acad. Sci . 11,

9 (1974).

Figures 1 and 2 give some idea of the kind of

thing that I have just been describing. On

the left hand side of Fig. 1 is plotted the

technical development capability index,

against time over a 50 year period, for the

first achievement by various countries of

three types of technology: (1) building of

large dams, which is perhaps the simplest

sort of technology, because large dams were built centuries ago, in some cases; (2) the

manufacture of aircraft; and (3) nuclear

explosions. The value of the index decreases

with each successive repetition of the

particular process, and comes down to roughly

50% of the starting value. The first country

which built aircraft had to have a very high

level of development, but those who copied it

later on required a much lower value of the

index, and the same applies to nuclear

explosions. This indicates that borrowing

technology does give you a certain advantage.

In other words, you are able to do that

particular kind of project a little earlier

than you would be, if you were developing on your own.

Figure 2 shows the application of that same type of formula to the total expenditures on technology transfer, which is shown on the

vertical axis, against the development index

of the recipient. The development index of

the donor averages out if you consider that

there are only five or so large donors of

technology in the world — the U.S., USSR,

UK, Japan, Germany, and perhaps a few others

-- and you can take the average of those, and

multiply by this constant factor. This

graph, for which the expenditures go from

about BIO million per annum up to about

S400 million per annum, does provide a fairly reasonable sort of linear relationship

on a log-log scale. What is interesting is

that there are two types of country, the type

on the upper curve, which corresponds to

countries which have no highly valuable

resources like oil, and the countries on the

lower curve, which are the oil producers.

Both of these curves come out of the formula.

The formula is to my mind what one might

call the First Principle of Technology

Transfer, in that there is a relationship

between the state of development of the

recipient and the amount of technology that

it is capable of absorbing through transfer.

This particular type of formula is also true

in time, that is to say, the formula will

give equivalent results when applied to data
Table 1: Analysis of Pakistan's expenditure on import of technology from 1955 to 1975.

No. Item

1st Plan

1955-60

2nd Plan

1960-65

3rd Plan

1965-70

4th Plan

1970-75

1. GNP (Rs. x 10 9

) 2. Annual Dev. Plan (Rs. Million)

3. Foreign assist: (S million)

4. Expend, on import of techn.

(S million)

5. Total expend, on techn. transfer

6. Develop index for Pakistan

($ mil 1 ion)

7. Mean dev. index for 5 donors

(S mill ion)

8. Tech. transfer index

(S mil lion)

9. Factor of proportionality

28

2,500

200

65+10

75

1.4

33

46

1.6

39

6,000

470

1 40+40

160

1.9

43

82

1 .9

70

9,500

540

220+20

55

176

1.6

95

12,000

450

220+40

280 340

3.2 4.6/3.5

70

245

1.4

over a period of 10-15 years, at least for

the case of my own country, as shown by a comparative assessment of the total amount

spent on technology transfer in various

Development Plan periods. If we take this

amount to be the sum-total of the imported

"embodied" and "unembodied" technology, we

can make estimates of this expenditure in two

different ways, viz (i) as 4/3 times the cost

of machinery imported in any one year, so as to include all patents and technical

services, or (ii) as 40% of the total foreign

assistance provided in any one year. The

averages of these two estimates are given in

the fourth row of Table 1, together with the

probable variation [2]. To these we may

add the gradually increasing value of

machinery manufactured within Pakistan to

arrive at the total annual expenditure on technology transfer as given in the fifth

row, which exhibits a 5-fold increase from

S75 million in the First Plan period up to

S340 million in the Fourth Plan period.

This is in almost exact proportion to the

value of the technology transfer function

which is calculated in the eighth row. Taking S million as the unit in all cases,

the mean value of the factor of

proportionality is seen from the ninth row of

the table to be 1.6, with a variation of only

±10%, which provides further evidence for the

validity of the theoretically derived

technology transfer equation.

[2] "The Fourth Five-Year Plan (1970-75)",

Govt, of Pakistan, Islamabad, and

related documents. 1

3. ECONOMIC AND TECHNOLOGICAL DEVELOPMENT

OF PAKISTAN

In Pakistan, technological development can be

said to have commenced somewhere in the

early 50s. We have had four five-year

plans. During these plans, there was a concerted technological development effort

made by our national planning organization

(currently known as the Planning Division of

the Government). This began by simple

horizontal technology transfer -- that is,

imports of machinery and experts -- in the

first plan period, and gradually over the

subsequent three plans, the emphasis was shifted towards vertical transfer, with more

and more of the know-how being obtained and

less and less of the actual hardware.

The traditional major raw material resources

of the original Pakistan, which included both

the present Pakistan and what is now Bangladesh, were cotton, leather, sugar, and,

of course, jute. And there was a certain

amount of indigenous expertise existing in

woodcraft and metal -working. Accordingly, we find that in the first ten years, there was a considerable growth of cotton textiles, and

of some of the food product industries, e.g.,

the sugar and hydrogenated oil industries.

During the third and fourth plan periods,

there has been a consolidation of the

manufacture of cement, and a slow development

of the fertilizer and soda-ash manufacturing

industry (See Table 2.).
Table 2: Manufactures of Pakistan

Product OnTt 1949-50 1959-60 (1964-65) (1969-70) 1974-75

(est.)

Cotton textiles

(a) Yarn Million Lb 43 403 (520) 710 800

(b) Cloth Million Yards 99 606 — 810 7700

Jute textiles Thousand tons -- 250 (340) 600

Vegetable Ghee Thousand tons 3 30 (90) 160 250

Sugar Thousand tons 36 144 (310) 460 500

Fertilizers Thousand tons ~ 51 — 370 300

Soda Ash Thousand tons — 27 (28) 45

Cement Thousand tons 417 1027 (2000) 2700 3,000

Machinery Million Rs. N.A. N.A. N.A. 297 500

As a result of the rapid growth of the

industrial sector, combined with the

introduction of incentives like the export

bonus scheme, the manufactured exports

increased at an average rate of 20% per annum

in the 1960s and accounted for over 60% of merchandise exports in 1970. A

substantial part (about one-quarter) of the

industrial development was a consequence of

aid, mostly in the shape of loans, and the

ratio of debt-service to exchange earnings

was nearly 20% by 1970. Although the climate

for foreign assistance deteriorated after

1965 at a time when Pakistan's commitments

for developmental outlays had grown

substantially, the industrial growth

continued with appropriate adjustments of

development priorities to produce industrial

machinery, fertilizer, and transport

equipment, mostly at the expense of the

social sectors.

We can form a useful picture by looking at

the development expenditures in the various

sectors, during the first three Plan Periods

extending from 1955 up to 1970, and assessing

the results produced in the form of exports

and manufactures for internal consumption, as against the imports (Tables 3-5). The

heaviest development outlays have been in

manufacturing, water and power, and transport

and communications. It is readily seen that

there are now sizable exports of cotton

cloth, cotton yarn, footwear and leather

goods, while nearly sufficient sugar and

vegetable ghee are being manufactured to meet

the local demand. Over 5% of the GNP is in

the small-scale manufacturing sector. These

fields all involve essentially traditional

technologies, which have been modernized and

the efficiencies of which have been improved

considerably with the help of imported

technology. In most of these, the technology

import has been of the unembodied character,

that is to say, the know-how has been

obtained, and most of the hardware is now being made in the country itself. For

instance, a good deal of sugar processing

machinery is now being manufactured in the

country, and, in fact, small size sugar

manufacturing plants are being exported from

Pakistan today.

In the field of fertilizers and chemicals and

machinery, the expertise is growing, but here

there seems to have been rather less of the

vertical technology transfer. There has been

a rather unfortunate incidence of large

factories put up with the latest know-how,

and we are not always able to produce the

finished product at actually competitive

prices.

In reference to the overall picture over the

last 25-30 years, I have tried to make a broad analysis. I have found that there are certain authors who maintain, notably

Zahlan [3] from Lebanon, that a twelve year

period is required for bringing about a socio-economic change. And it is rather

interesting that when I looked at the data

for Pakistan (and possibly the same kind of

177

[3] A. B. Zahlan, Paper read at Seminar on the "Impact of Science on Society" at

Islamabad University, 1974.
Table 3: Public sector development

expenditure in various sectors

(Rs. Million)

Table 4: Structural changes in GNP

(as percentages)

1954- 1959- 1964- 1969- 1974

Fourth Sector: 55 60 65 70 75

First Sec. Third Plan

PIr 1 anall Plan r 1 ail Plan r 1 a II 1ljQ7fl_ / u— Agriculture: 56.5 53.2 47.8 44.9

1X 955-60 J ~J -J \J\J 1 960-65 1 965-7(1

Manufacture: 7.0 9.3 11

11 .Hd 19 7 --Large Scale 1.5 3.8 6.0 7.3

1 .Agriculture 806 1,856 2,811 6,695 —Small Scale(5.5) (5.5) (5.4) (5.4)

2 .Manufactur- 1,018 1,305 2,331 4,418 Services: 33.3 37.5 40.9 42.5

ing

per cap.

3 .Mi ni ng 100 cm C"7 7 b/ / GNP(Rs.) 283 318 450 560 ~600

4 .Water 1,0/0 C A 1C b ,4/0 C A CO b ,4 bo in 1 OC11) , ldb

devel op Table 5: Exports and imports

5 .Power 742 1 "7*7 C

1 ,775 3,507 C O A A 5,840 A. Exports (Rs. million)

develop

1964-65 1969-70 1974-75

6 .Transport 1 ,590 3,072 4 ,312 "7 r*nc 7 ,905 (Est.)

and Comm.

I. Manufactures

7 .Housi ng 690 1,666 1,636 3,795

and Phys. Cotton cloth 270 450

Planning Cotton yarn 270 350

(Jute products) 810

8. Education 380 912 1,328 3,665 Footwear leather

and and products 200 350

Trai ni ng Others 350 750

9. Health and 146 381 638 2,445 Total manufactures 1,200 1,900 1,900

Medical

Services II. Primary

10. Works — 650 1,136 2,450 Cotton 215 250

programmes Rice 85 300

(Jute) 780

1 1 .utner Qy ys

/ion 4oU 1 not; 1 ,Uoo Others 270 300

( smal 1

)

programmes Total primary 1,200 1,350 850

Total 6,929 17,059 25,147 49,000 Grand Total 2,400 3,250 2,750

B. Major imports (Rs. million)

Per annum 1,400 3,400 5,000 9,800

1. Machinery 1,760 1,200

2. Steel 742 1,100

3. Fuel and mineral s, incl udi ng chemical

fertilizer. 455 600

4. Chemicals 520 400
picture may emerge from examining the

economic data for other countries), the first

twelve years were those in which technology

transfer was almost entirely a simple

horizontal transfer with very little

infrastructure being -built. The second

twelve years were the ones in which the most

rapid and the most satisfactory growth took

place in the economic and technological

fields. In these twelve years technology

transfer was essentially of the vertical

type, and there was a considerable portion of

it which was integrated into the local

effort. There was a certain amount of

training being provided, both at our own Institutes and under some technology transfer

agreements. But, when we come to the third

twelve year period, which we are now passing

through, there seems to be something that has

gone wrong. In fact, what has happened, one of the things that is clearly visible (see

Table 6) is that the growth of higher

scientific manpower has far out-stripped

economic and technological growth. This is

to some extent symptomatic of many of our developing countries.

Of the 73,000 scientists and technologists in

Pakistan, about 1/3 may be B.Sc's, while

nearly two thousand have a Ph.D or equivalent. Comparison with other countries

on the road to development shows that more

and more emphasis needs to be placed on the

production and utilization of engineers

(e.g., in Turkey, where the number of

engineers is nearly equal to that of the

scientists). This requires a small increase

in the science degree enrollments, but a substantial increase of 2- to 3-fold in the

enrollments of engineering deqree courses if

the situation in Pakistan is to be rectified

over a span of ten to fifteen years.

Using international criteria, e.g., the

UNESCO-CASTASIA model , applicable to

countries like Pakistan, it could be

estimated that at least 115,000 professional

staff should be made available by the end of

1981, of which the breakdown would perhaps be

95,000 scientists and technologists and

20,000 engineers against the existing figures

of 73,000 scientists and technologists and

12,000 engineers.

However, what has actually happened is that

the industrial and technological

opportunities have not grown recently at a rate commensurate with the increase of

scientific and technical education, thus

leading to disillusionment and unemployment

of trained manpower. At the same time, the

lack of a strong local R and D and quality

control infrastructure prevented the

transferred technology from becoming

self-sustaining in any real sense of the

word, and so we lag behind. Heavily involved

in this situation is the tendency in

developing countries to seek a white-collar

Table 6: Growth of education, technical manpower, and GNP

in Pakistan from 1950 to 1975

Educational TechniPer Enrol 1 - Univer- Engin. cal

3NP Capita ment sity Degree Di pi oma Billion GNP (Mil- Enroll- Enrol 1- Enrol 1 - Year of Rs. (Rs.) lion) ment ment ment

1949-50 21.5 253 4.2 3,000 1 ,000 900

1959-60 31.4 .318 6.4 8,000 2,400 3,700

1969-70 74.3 567 13.7 30,000 8,300 18,000

IN EMPLOYMENT

Science

graduates

Engineering

graduates Technicians

(35,000)

50,000

90,000

(7,500)

9,000

12,000

(10,000)

15,000

30,000

West

only

1969-70 38 580 5.7 15,000 5,000 9,000 50,000 7,500 20,000

1974-75 45 600 8.5 18,000 6,000 13,000 73,000 12,000 40,000

179
education which will lead to the kind of job

where you don't have to dirty your hands, so much so that we find engineers from some of

the developing countries who, when they go

abroad, just don't like even to go near a lathe, or to handle any of the tools of their

trade. This is something which one needs to

look at very carefully, even though it is

true that the more technological education

you have, the more rapid growth is likely to

be, as shown later in this paper from three

case studies (USSR, Japan, China).

This general situation is an example of the

second important result of experience, that

it has been repeatedly found during the last

two decades that, in spite of all the

transfer of technology, the gap between the

developed and the developing countries has

consistently been increasing. So, we may

generalize this into the Second Principle of

Technology Transfer to say that technology

transfer alone cannot bring any developing

country up to a level with the developed or donor countries. In fact, to bring

developing countries up to the level of

developed countries, several important

factors other than simple technology transfer

must be considered.

4. THREE CASE HISTORIES

In the cases of Japan and the USSR, there is a very clear parallel between the increase of

higher scientific and technical education and

the economic growth of the nation. First,

let us take a brief look at some of the

statistics for the USSR from 1914 to

1964, as brought together in the following

Table 7 based on "Soviet education" by

Nigel Grant and other sources. It is at once evident that, whereas there has been a seventeen-fold increase in the total

enrollment in educational institutions in 45

years, giving an average factor of xl.8 per

decade, the corresponding increase at

University level has been thirty-fold, i.e.,

an average rise of x2.2 per decade.

This growth factor of x (2.0 ± 0.2) per ten

years bears very good comparison with the

average estimated economic (GNP) growth

factor of x 1.9 per decade over the same

span.

In the case of Japan [4], although schools

on the European pattern were established from

1853 onwards, the reorganization of the whole

education system was energetically taken in

hand only after the Meiji Restoration of

1871. The Government methodically

established model workshops, sent scientists

and technicians on missions to foreign

countries, spread knowledge through trade

exhibitions, founded industrial R and D

laboratories, granted financial aid, etc.

The new system of education then introduced

included six years elementary and five years

grammar school, followed either by three

years high school and three years at

University or trade school of three years

duration for studying technology, commerce,

agriculture and forestry, or fishery

management. In 1886, the School of

Technology was attached to the Imperial

[4] U. Hashimoto, An historical synopsis of

education and science in Japan from

Meiji Restoration to the present day

(1965)

.

Table 7: Comparison of expansion of education

in the USSR, with the growth of GNP

Year 1914 1934 ' 1954 1959 " 1964

Total enrollment 0.13 0.4 1.5 2.1 3.0

Million Million Million Million Million

Graduates 10,700 40,000 210,000 342,000 0.5 million

Institutions 105 250 766 (1,000)

Universities 8 - 40 -

Estimated $20 $50 $180 $280 $450

rmp Billion Billion Billion Billion Billion

180
Table 8: Research institutes and

scientific societies in Japan.

Period Research Scientific

Institutions Societies

New Total New Total

1868-1987 6 6 1 1

1878-1887 7 13 16 17

1888-1897 6 19 11 28

1898-1907 17 36 16 44

1908-1917 36 72 26 70

1918-1927 56 128 26 96

University; it was expanded to form the

Institute of Technology in 1921. It was only

natural that in addition to the universities,

various scientific societies, academies, and

research institutions should be established,

and after 1914, it became clear that a systematic programme of scientific research

was indispensable. In table 8 is shown the

consequent steady growth of the number of

research institutions and scientific

societies during the six decades from 1868 to

1927. It is clear that during this period

there was a more or less steady exponential

growth in number of research institutes as well as scientific societies, the growth

factor being 1.75 ± 0.05 per decade. This

apparently laid the foundation for the

phenomenal advancement of Japanese science

and technology in the thirties. In 1925, the

membership of these scientific societies

numbered 122,000 of whom 50,000 were

engineers. If we take account of the

increasing size of each research institution

or society, this actually corresponds to a

1

growth factor of about 2.5 per decade in

higher scientific effort, which may be

compared with the decade growth rate of xl.8

in GNP, and with the factor of 2.2 per

decade for total number of graduates in the

USSR. Thus, in both countries, the growth

rate of the economy is equal to that of

engineers and technologists, who now make up

30 to 50% of the total highly trained

manpower.

The expansion of technical training in China seems to have followed a similar pattern, and

visitors have reported that, based on earlier

technology transfer, China possessed about

50 specialized mono-functional research

institutes in the mid-50s which paved the

way for the high technology developed by

China in the 60s.

In each of these three countries there was a massive technology transfer in the earlier

stages. In the case of China, it was not

well known and not often admitted, but the

fact remains, that most of their heavy

industry was developed by technology

transfer, from Japan, the USA, and the USSR,

about 30 years ago. Thereafter, the switch

toward an appropriate technology type of

structure took place, in which the emphasis

was on the local people acquiring all the

expertise and not only operating the machines

themselves, but gradually learning to make

and to improve those very machines which they were using. In the case of all three

countries considered here, the complete cycle

of educational growth, technological

modernization and economic development

appears to have taken 30 to 50 years.

A very important factor in the impact of

higher technical education on industrialization and the transfer of

technology is the relative proportion of

trained graduates employed in industry and

those in research. An analysis of this was made some years ago for the USA, Japan and

several European countries, and the data

(taken from the Economist of March 1968) are reproduced in Table 9. It can be seen that

in the six countries studied, the number of

graduates in industry per 1,000 of the total

working population varies from 21 in Sweden

to 75 in the U.S., and the number of

researchers per 1,000 of total working,
population varies from 8 for Japan to 29 in

Sweden. The ratio of researchers to

graduates in industry is an interesting

criterion, and its values are given in

Table 10. The values of this ratio in

Table 10 are extremely revealing,

Table 9: Number of graduates in industry

and researchers per 1000 of

working population (1968).

Country USA JAPAN CANADA EEC BRITAIN SWEDEN

Graduates

i n

i ndustry

per 1000 76 47 43 31 28 21

Researchers

per

1000 24 8 20 27 28 29

Table 10: Ratio of researchers to science

graduates in industry for some

typical countries.

USA JAPAN CANADA EEC BRITAIN SWEDEN

Researchers:

Graduates

1:3 1:6 1:2 1:1.2 1:1.0 1:0.7

Mean for three Mean for these

countries is countries is

1:3.5 1:1.0

because these show distinctly different

patterns between the European countries with

a 1:1 value for this ratio and the first

three countries in the table, which have good

technological utilization with values of this

ratio ranging from 1:6 up to 1:2. It can be

surmised that a 1:3 relation of researchers

to graduates is probably near the optimum for

efficient industrial and technological

advancement. Similarly, somewhere from two

to four technicians are required per

scientist in R and D institutions.

Accordingly, it is perhaps equally important

to give immediate attention to the proper

training and selection of middle-level

scientific and technical manpower, comprising

the simple B.S. and the diploma-holding

technicians who constitute the major

proportion of the technical work force.

5. APPROPRIATE TECHNOLOGY

The large-scale capital intensive

technologies developed in Europe, North

America or Japan may well be very efficient,

but their introduction into poorer, less

developed societies often raises more

problems than it can solve. A growing number

of development experts and national policy

makers are now beginning to question the

wisdom of massive technology transfer from

the industrialized countries to the

developing nations. These require an education and industrial infrastructure which

take decades to build up, the economic size

of plants is usually too large for these

countries' needs, and their disruptive social

consequences (such as unemployment and rapid

urbanization) tend to be much more sudden

than in their culture of origin. But perhaps

most important of all, their introduction

often inhibits the growth of indigenous

innovative capabilities, which are necessary

if "development" is to take place.

The symbols of modernity, in the form of

steel mills, chemical plants, automobile

factories or squadrons of military aircraft

can be purchased on the international market,

but development is a complex social process,

which rests, in large part, upon the internal

innovative capabilities of a society.

Imports of foreign ideas, values, and

technologies have a major part to play, but

few societies in history have developed

exclusively on the basis of such imports.

One of the major tasks facing the developing

countries is to create, nurture, and more

often than not rehabilitate their internal

capacity to invent and innovate. As far as technology is concerned, this implies not

only a much greater selectivity in the choice

of imported equipment, plants, and methods of

production, but also — and this is much more

important — the invention and diffusion of new types of technology and new forms of

organization which are better suited to local

conditions .

182
The fact of the matter is that modernization

of a society involves technological changes

at many different levels, from large-scale

steel mills and power stations to improved

work methods on the farm or in the small

town. Given rapid modernization as a desirable objective, the introduction of

improved and appropriate technologies for

higher productivity, increased use of local

resources, and generation of employment may

require a combination of the two

above-mentioned extreme approaches, i.e.,

(a) the transfer of suitably selected

existing technologies from elsewhere, with

suitable adaptation and the training of

people in their use and application, and

(b) the development of new technologies with

relevant infrastructures. In general, for

most Asian countries, an appropriate

technology can only be relevant if it can help to combat poverty, particularly in the more vulnerable segments of the society. At

the same time it must take into account the

local skills as well as the particular

society's long-term development objectives

and the different resources endowments that

are specific to the country.

The course of development in many countries

seems to have been an interesting mixture of

high and low technology. For example, we

note a side-by-side growth of sophisticated

technology in China and in India along with

the slow diffusion of the concepts of

Appropriate Technology, based on the

ideological statements by various Chinese and

Indian leaders, some of them projecting

simple living with high thinking and

village-level traditional technology, while

others have held that economic development

depends on the growth of heavy industry.

Clearly, appropriate technology should aim at

the optimal use of a nation's resources and

assets. In many developing countries with an abundance of human skills and resources, this

clearly means that it should be usually

capital saving, labour-intensive, small-to

medium-scale, and rural -based. But these

conditions may not be applicable to other

developing countries, where the labour

situation is different and the industrial

sector is significantly export-based. The

example of Singapore is there clearly before

us in which the export impetus has been

largely responsible for the phenomenal

development. In either case, whether one is

manufacturing for indigenous consumption or for export, the appropriate technology should

have the fundamental objective of promoting

self-reliance in the people of the country.

A people-oriented development programme

requires an emphasis on economic growth as well as social justice, the two main features

of what is now being termed the New

International Economic Order. In the past,

the emphasis has been almost entirely on economic growth, to the detriment of social

justice. The creation of employment

opportunities is one way of increasing

minimum incomes while producing satisfactory

growth, and carefully chosen technologies

adapted to the labour and skill availability

in most Asian countries can be an important means of effecting this.

In the past, great store has been set on transferring technologies that usually

favoured highly capital-intensive and

mass-production programmes, like steel

production, which are doubtless desirable in

their own context, but have a small direct

employment potential. This concept needs in

many cases to be replaced by one of

production by and for the people, SO that

poverty can be removed through job-creation

at comparatively low capital cost. This

imposes a search for technologies of a medium

level of sophistication, that will be more appropriate to the conditions and goals of

the developing countries. In some sectors,

it is quite possible that the appropriate

technology may be the one which is the most

sophisticated. The most quoted example is

that of electronic assembly equipment for consumer products.

Among the desirable attributes that an appropriate technology should possess from

the point of view of factor-endowment and the

country's national development strategy, we may include the following:

(a) High employment potential.

(b) Low investment required, as compared

to the level of local income.

(c) High potential in utilizing domestic

material resources.

183
(d) Strong linkage with local industry to

satisfy the actual needs of industrial

cl ients and market

.

(e) Higher productivity than existing

traditional technology in the same field.

(f) Easy maintenance.

(g) Compatibility with prevailing

sociological conditions in the locality.

If we concentrate in the first instance on the first three of the above basic national

requirements, then it is possible to lay

down some sort of quantitative criteria for

"appropriateness", which may be considered

under the heads of (i) labour intensi veness

,

(ii) small capital-cost per work-place, and

(iii) import substitution, respectively.

These three aspects have been looked at and

frequently taken into consideration in the

development of the country, and certain

quantitative criteria have been suggested for

differentiation between appropriateness and

inappropriateness. Thus, for example: two

parallel criteria for 1 abour-i ntensi veness

can be based [5] on the following two

indices:

(i) Labour-intensiveness Factor = (No. of production workers in firms)/

firm's gross output),

and

(ii) 1 - Mechanization Factor = (No. of manual operations)/(Total

No. of operations) in the particular

manufacturing firm

1 - Mechanization Factor > 1/2 for

1 abour-i ntensi veness

In case of labour-intensive industries, these

two factors would have higher values than the

national average and, of course, considerably

higher than for the developed countries.

Both these factors can provide guidelines for

the policy-making bodies of developing

[5] "Indigenous Technology Indispensable for

Self-Reliant Growth"--Report of National

Seminar on Cooperation between

(i) University (ii) Research Institute

and (iii) Industry—F.C.C.I . Karachi

1977 .

countries. In addition to agriculture,

typical industries that are labour-intensive

may be quoted as footwear, small-scale

food-processing, ready-made clothes

manufacture, metal working, and electric fan

manufacture. Otherwise, nearly all our so-called "modernized" industry in Pakistan

could be labelled inappropriate, according to

the above two criteria.

The second characteristic, i.e., small

capital-cost per work-place, in fact, requi res that this cost be reasonable in comparison

with the national per capita income; and the

level of sophistication should be such that

it matches with and encourages the spread of

technical skills among the working population

of the country. At present, the costs per

work-place in the major industries in

Pakistan range from Rs.20,000 to 300,000

(approximately) per work-place

(Rs.10 = SI); for example, in the

modernized textile industry, a double-knitting economic unit requires

Rs.70,000 per work-place, and a conventional

spinning and weaving unit of 25,000 spindles

and 500 looms nearly Rs.40,000 per

work-place. The actual range will naturally

vary from industry to industry, and the

industry will be considered appropriate to

the conditions in developing countries when

the cost per work-place is low. The concept

of appropriateness at the moment in Pakistan

centres very largely around this matter of

low capital-cost per work-place. In Pakistan, with our per capita GNP of about

Rs. 1,000, anything in the range Rs.2,000 to

10,000 per work-place can be a reasonable

capital cost if the industry is to provide

employment to people in the rural and small

towns of the country, which is where the

largest chunk of our working population comes

from. Low capital cost per work-place is

perhaps the most significant criterion for an appropriate technology which will be capable

of absorbing the labor force available and

through which the skills of the people can be

appropriately developed so that they not only

operate the machines but also manufacture and

improve them.

184
6. THE APPROPRIATE TECHNOLOGY DEVELOPMENT

ORGANIZATION

In Pakistan, the Appropriate Technology

Development Organization (ATDO) was set up

about four years ago. The strengthening of

the Appropriate Technology Development

Organization was recommended in the draft

proposals for Pakistan's Science Policy in

1976. The ATDO has already taken in hand the

task of furthering several projects at the

village level in the fields of food and

agriculture, energy, small-scale industry,

low-cost housing, agricultural implements,

and new methods of irrigation for arid

regions. A considerable measure of success

has been obtained in several projects,

notably:

1. Low-cost pre-fabricated urban housing

and rural school s. 2. Biogas plants for producing gas and

fertilizer from wastes.

3. Small hydre-electric units for local

fabrication in far-flung areas.

4. Dehydration of vegetables and fruits.

5. Production of hand-made matches.

6. "Nay-Fishar" screw- type cane-juice

extractor for use at the village level.

For these activities, the ATDO of course

utilizes the trained manpower and facilities

already existing in the Universities, the

Research Institutes, and private industry

within the country. In some ways, the

function of ATDO can be compared with that of

a catalyst, to motivate these people to do

the design and development work, while we carry out the extension activities.

Recently, a project has also been started by

ATDO under the heading of Village-Level Food

Processing, which seeks to identify, develop,

produce, and ultimately disseminate (on a pilot-project basis) improved appropriate

technology of a suitable scale and

sophistication for use in farm and

village-level processing of sugar cane,

oilseeds, and rice bran. The project is

based on the premise that elements of more efficient technology exist elsewhere in the

world, can be identified and brought to

Pakistan, where modifications and adaptations

can be undertaken as required to permit local

fabrication and commercially viable operation

in the village environment. The project is

being carried out in four carefully

overlapping phases, of which the first two

have now been completed. Denver Research

Institute, the Pakistan Council for

Scientific and Industrial Research (PCSIR),

and other Pakistani organizations are involved in the execution. It is hoped that

successful completion of this project will

enable a substantial increase in the yields

of sugar and oil at the village level, and

also increase employment opportunities.

Sugar cane processing presents a very

interesting picture, to which some reference

was made yesterday, by one of the speakers

from the Caribbean, namely, that the cost of

production of sugar in the sophisticated mill

is, today, higher than the international

price of sugar. Now, the village level

technology, which is supposed to be

inefficient, is supposed to have losses at

various stages, and is crude in every way —

strangely enough, comes up with precisely the same cost of production as the large mill.

We are still in the process of trying to

analyze what is the reason for this, because

the large-scale technology is supposed to be

much more efficient. I have a strong

suspicion that one of the basic reasons is

that the capital costs for the large mill are high. Because money also has a cost, namely

the rate of interest that you pay on it per

annum, the price of the product goes up

automatically by 15%, or whatever it is, in

the large mills, which almost entirely

offsets their technical advantages.

Now this is something very important and very

significant. And we are having a very hard

time convincing people at home that this is so. Because, somehow we have an in-built

mechanism whereby we feel that the large mill

must be more efficient, must be better, and

the product coming out from the large factory

must be intrinsically superior to everything

that we could do in a smaller unit. Now that

is not necessarily so. Every process needs

to be examined, in its own right.

This example brings out the point that I wish

to stress, that in transferring any

technology, it is important that within each

developing country, there should be a mechanism available for assessing the

185
applicability of that particular technology

within that country, and comparing it with

all the other technologies that are available. Now certain suggestions have been

put forward of having an international

registry of technology, but that does not

solve the problem. Ultimately, an assessment

has to be made within that particular

country of how the various technologies, if

they are transferred, would compare with each

other, and for this, some sort of a capability to make the analysis needs to be

built up within each of the developing

countries.

The third characteristic, namely high

potential for utilizing domestic material

resources, has usually been given a good deal

of attention practically from the inception

of Pakistan, but considerable exceptions have

been made in the case of high-technology

industries like electric machinery,

electronics, plastics, fertilizers. In our

country, the Pakistan Council of Scientific

and Industrial Research, like the

corresponding institutes in various other

developing countries, has been working at

it. But here, the big problem arises, the

products of the research are not readily

accepted by the industry. The emphasis

having been on "turnkey" jobs in the earlier

years of Pakistan, there has been a distinct

reluctance on the part of industrialists to

make proper use of the indigenously developed

technological capabilities. The

industrialist seems to have ingrained

suspicion of anything that is home-grown or home-developed. Perhaps he is not sure that

it will work at a profit. He has been taught

and told that that which comes from abroad is

well-tried and well -tested. But the fact

remains that that was well-tried and

well -tested maybe 20 years ago, and the

conditions today are not what they were 20

years ago. It may operate under these

conditions, or it may not. So, here we have

a problem.

It is also true that, while there is

considerable R and D talent in the country,

as also a realization of the importance of

developing indigenous technology, certain

weaknesses are noticeable in the existing

framework of quality-control in industry

(especially of the small- and medium-scale),

in R and D, and in the adaptation and

extension of technology, all of which are required to be made up urgently. For

instance, without adequate quality control,

it is hardly possible to develop any sort of

indigenous technology to a competitive level.

This is, moreover, a first step to improved

methods and processes.

In an effort to attack these problems, a National Seminar on Cooperation between

Universities, Industry, and Research

Institutes was organized at Karachi in 1977

by the Federation of Pakistan Chambers of

Commerce and Industry [5], Among the

recommendations emerging from this, the

following are noteworthy:

(a) There should be exchange of personnel

between university, research institute and

industry at the advisory and management

level. Also, (i) university, and

(ii) research institute should exchange with

each other workers; and (iii) industry should

be brought within the purview of such

arrangement. (This is something which is

fairly well known in the USA but which does

not seem to be so common in the developing

countries.)

(b) Government should take measures to

inventory the work done so far in research

institutes and the processes and products

which are being utilized or are suitable for

utilization in industry.

(c) A Research Utilization Board should

be set up within the Federation of Pakistan

Chambers of Commerce and Industry (FPCCI) on

a permanent basis, having representatives

from research institutes (including

consultant firms and companies) and

universities. The proposed Board should be

adequately financed.

136
(d) Large industrial concerns should have

'innovation cells' within their premises and

guide and advise the (i) university and

(ii) research institutes in respect of their

needs and requirements so that university and

research institute can orient their research

programmes accordingly.

(e) Fuller recognition should be given to

the talented pool of innovation and adaption

available in the skilled groups of

technicians (such as those called "MISTRIES"

in Pakistan) and their status be up-graded.

(f) Associations of medium and small

industries should jointly set up laboratories

and research centres within their premises to

render research service to those industries.

These laboratories and research centres

should also accept students from universities

as trainees.

(g) In-plant training facilities should

be expanded, and it should be made a condition precedent for the award of degree

in science, engineering, and business

administration, that a student has received

in-plant training in industry.

Item (e) above comes back to a philosophical

problem, or the problem of attitude. The man

who has the expertise is quite often looked

upon with suspicion. It is true, knowledge

combined with expertise is the best thing,

but, if I were told that I could have only

one, I am sure I would go for the expertise

and leave the knowledge alone. Because

knowledge without technology is useless, it

is the expertise that is essential. The man

who is able to make the engine work, the man

who is able to repair the instrument, is very

much more valuable in any organization than

those who have merely abstract knowledge.

I remember when I was in charge of the

Physics Division of the PCSIR, we had an instrument maker who was very deft, very

clever with his hands. He could repair an instrument, he could make an instrument that

you designed for him. But he was a cantankerous old man. He was bad-tempered,

he was rude to nearly all the research staff

on occasions, and they came to me in a delegation, asking that we should get rid of

that instrument maker. Well, I explained to

them that he was a very useful person, that

we cannot, it was absolutely impossible. So

I proposed the alternative, I said, "Well,

would you please take upon yourselves the

responsibility of repairing all the

instruments in the Physics Laboratory? I will sack him immediately." They all went

away, without any further comment.

I think we do need to develop and appreciate

the large pool of technical expertise that is

available in our countries. We are losing

that, because we are consciously drifting

away from those industries which have a strong indigenous base, whereas if we wish

really to have a biologically growing process

of technological development, then it is this

very base which we should tap, and we should

graft onto the base. This is something which

I think seems to have been taken care of in

countries like Singapore, where they have one Polytechnic which turns out 1000 diploma

holders. Now I hope, and I trust, that their

diploma holders do not wish to become white

collar engineers, because we have had that

experience in our country. The diploma

holders from several of the Polytechnics did

agitate to be granted engineering degrees, at one time, which of course would defeat the

very purpose of the idea of a Polytechnic.

7. CONCLUSION

It needs to be emphasized that for a developing country to emerge from the state

of under-developedness and forge ahead of

others, it is necessary for it progressively

to develop a body of highly-motivated

technologists, scientists, and technicians,

possessing a belief in their own destiny.

Such a group can be developed only by

motivation provided through basic moral and

ethical values. This may be taken as a fundamental law based on the history of

nations, at least over the last 2,000 years.

What science can contribute at least to the

developing countries is its methodology,

because that is something that can be applied

to many problems. The trained mind is an asset, however it is applied, but we should

not blindly support open-ended pure research.

There appears to be a lack of people who are

187
able to bridge the gap between research and

applications. Partly because "the typical

scientist from the third world has had a very

sheltered education -- boarding school,

residential university, foreign university

and straight back into a university or research institute — he often wants to do

the research he learnt in the West because he

knows no alternative." If we support him in

this instead of, say, helping him win a development research contract, we are doing a disservice. Meanwhile, many companies have

to hire expatriate production managers

because they cannot find suitable local

people. With more appropriate teaching and

motivation, our graduates could surely

contribute much more to the production, if

not the distribution, of wealth -- it is

after all lack of these that make a developing country poor.

The West needs research on which to build its

high technology; but most of the technology

the developing world wants already exists,

and the immediate need is to learn to select,

adapt, and use it. One could suggest at

least two general principles to apply to

science proposals: (i) clear objectives must

be spelt out, agreed and followed;

(ii) projects should be primarily assessed on

a strictly utilitarian basis, with a view to

the widest spread of their benefits.

In fact, what we want is an optimum mix of

the so-called "intermediate" technology and

high technology at any given time, and this

is where the developed nations can help the

developing ones, in three different

directions, with which I will conclude:

First, to induce, as I said before, the

setting up of national centres for technology

transfer and providing appropriate training,

for building up a decision making capability

with regard to the technology transfer,

within the developing countries.

Secondly, to encourage local R, D and E for

projects in the developing countries. In

other words, those multinational corporations

which have projects in developing countries,

should be motivated to provide local

development and extension cells within the

developing countries, rather than go back for

this to the parent country. This is one way

in which the local infrastructure can be

strengthened, quickly, and this would in the

long run feed back benefits to both sides.

And, finally, consider putting the brain

drain in reverse, by putting a sizable effort

in the developing countries, on projects that

have immediate relevance to those countries.

At the moment, the situation is the reverse. Our scientists working in the developed

countries usually work on projects which have

nothing whatever to do with our problems.

APPENDIX A

DERIVATION OF TECHNOLOGICAL CAPABILITY

AND TRANSFER INDICES

In a recent paper on technology transfer, the

author [6] described the formulation of a Technical Development Capability Index,

n f) 45

(GNP) x (per capital GNP) (1)

which can be used to predict the type of

projects most suitable for effective

technology transfer at a given time in a country.

The experience of the last 50 years in

various attempts of technology transfer leads

to several general conclusions, some of which

can now be put down as basic Principles of

Technology Transfer. First and foremost, the

amount of Technology Transfer, both

qualitatively and quantitatively, depends on the capabilities of the recipient country as well as the donor country. The quantity may

reasonably be considered as related to the

GNP, while the quality can be measured by the

per capita GNP, and the combination is then

found to lead to the Development Capability

Index derived above. Technology Transfer can

be taken as being proportional to the

function,

[6] M. M. Qurashi , Proc. Pak. Acad. Sci . 13,

55 (1976).

188
(Dev.Capabil ity

Development Capability x of Donor) m

of recipient (Dev.Capabil ity

of Recipient)"1

-.P

(2)

where the power p = 2 and 'm' should be

between the limits of 0 and 1, because if m = 1, then the transfer depends solely on the donor's development capability, while

m = 0 implies that the donor capability has

no influence at all. We may, as a first

approximation take 'm' to be in the middle of

this range, i.e., m = 1/2 and so write

Optimal

Technology a Transfer

(Dev. Cap.

(Dev.capabil ity of donor)^

of recipient) (Dev. Cap. ^

of Recipient) 2

= (Dev.Capabil ity x (Dev.Capabil ity (3)

of recipient) of donor)

10 55 0 45)2

(GNP) mMn x (per cap. GNP ) m^n |(4)

which may be called the Technology

Transfer Function, where (GNP) Mean

1S

the Geometric Mean of GNP and per

cap.(GNP) Mean

is the Geometric Mean of

per cap. GNP for donor and recipient. When

the two are close together, the geometric

mean can be replaced to a good approximation

by the arithmetic mean; in such cases, there

may also be considerable reverse transfer of

technology.

An experimental verification of the above

theoretical derivation can be found in

figure 2, in which the amount of foreign

exchange spent annually on the import of

unembodied technology [7] (i.e., patents,

know-how and technical services) by 19

developing countries around 1965-70 are plotted logarithmically against the

Technology Transfer Function. The plotted

points split up into two lots, through each

of which a mean straight line can be drawn,

the upper one with slope =1.0 for eleven

countries, and lower one with slope = 2.0,

the two meeting somewhere near a Development

Index of about $55 million. The upper one

is mostly for countries with per capita

GNP < 450, with Pakistan, Mexico, and Nigeria

as unusually high spenders, and fits the

equation 3, yielding the result

Expend, on unembodied Tech. Transfer

= 12 x (Recipient Dev. Index)

= 0.21 x (Tech. Transfer Function) (5)

One can further deduce from the estimates in

the UNCTAD reports that the unembodied

technology accounts for 1/10 to 1/3 of the

total spent on technology transfer. The

lower graph in the figure corresponds to a certain group of countries that includes

oil-producers, like Iran and Venezuela, and

countries with other special resources. Its

slope shows that these countries, which are relatively late starters in technology

transfer, are nevertheless catching up fast

by more-steeply rising inputs, as indicated

by the equation to the lower graph viz.

Expend, on Unembodied Technology

= 0.25 x (Recipient Develop x (Technology

Index/60) Transfer

Function)

= 0.25 x (Recipient Dev. Index)^ (6)

Both the empirical equations (5) and (6) are particular cases of the technology transfer

equation (2), corresponding to the case of

m = 1/2 and m = 1. Thus equation (2) is the

quantitative First Principle of Technology

Transfer. In fact, it can be generally seen that the slope of the upper line in the

Figure equals m x p, while that of the second

one would be equal to p, thus giving

m x p = 1.00 and p = 2.0

whence it follows that

[7] UNCTAD document, TD/E/AC. 11/10, dt.

13-12-72.

1.00 m = mp

p =2.0 0.50

189
This gives us an empirical determination of m as being equal to 1/2.

DISCUSSION :

Dr. Somer (Turkey):

I enjoyed very much hearing the paper

presented by Dr. Qurashi . I am quite

familiar with the conditions in Pakistan,

because Pakistan, Turkey, and Iran are joined

in RCD projects, within the CENTO

organization. Many of the problems he so very nicely formulated are common in that

area, particularly in Turkey and Iran.

For instance, he complained about the

products of research not being readily

accepted. This is a common problem. I remember one case, when a certain problem was contracted to a German firm, and the German

firm in turn subcontracted to a Turkish firm

to do the same job. In other words, this

inferiority complex in developing countries

does exist, and it is costly. They seldom

have confidence in the suggestions of their

own people or in the projects prepared by

them. They have to be certified or they have

to be prepared by agencies outside the

country. This is very costly, and I hope

that someday this is somehow reversed.

Another point he brought out was the

necessity for education of scientists,

technologists, and technicians before

development can be expected in a country. I ful ly agree with him.

But, the brain drain that he touched upon is

another matter. He may be surprised to hear

that I broached this question with some of

the leaders in Pakistan, and asked them their

opinion what to do about it, because we had

the same problem. Today, many of the Turkish

scientists, Pakistani scientists, engineers,

doctors, work in countries outside of their

own. For instance, I have met many engineers

from Pakistan working in Saudi Arabia, in

Europe, in the United States, in England.

But I was surprised to hear that some of the

officials in Pakistan somehow favored this.

In other words, they were not as sorry as I was, that brain drain was causing damage to

the country. In a way, they couldn't provide

190

•

i

jobs for them; they were dissatisfied. It

j

ie ca would be better for these engineers to go 5

*

out, earn some money, and probably come back have later on. I would ask Dr. Qurashi to comment |

ovei on this, and to correct me if I am wrong. I thn Because brain drain is definitely a problem ^' that prevents rapid development of a country.

After all, training of a good engineer takes ten at least 15-18 years, and one cannot afford

to lose them after they are trained and ready ^

to serve their own country. cor

I

-< Dr. Qurashi mentioned a number of areas in to which Pakistan has made great progress -- in ov sugar manufacture, in textiles, and others.

He did not mention the nuclear field. I can I f

proudly say that in that area, in nuclear I

pi technology, Pakistan has done a great job.

In fact, he is the leader in that area, in

nuclear power generation. 1

e With respect to the jute that he mentioned,

which is a product of the eastern part, now a Bangladesh, plastics are being substituted to

a large extent, in place of jute, and

Bangladesh is in serious trouble because they

cannot enjoy the same market that they used

to have. It is one good example where

research is definitely needed, for new products, and not to rely on the old ones.

Miss Armstrong (New York City):

Dr. Qurashi suggested that there may be room

for what I will call multiple technologies,

i.e., the small sugar producers can produce,

and the large-scale can operate. Often, the

bureaucratic tendency is to say, choose one or the other. If you have multiple

technologies, as indeed Japan developed with,

for example, then you often have to have

different regulations for different sizes of

enterprises -- different tax systems,

different standards for different kinds of

enterprises, physical standards, health

standards, and so forth. I am really

wondering whether within your government

machinery you find this practicable? It may

be practical for economic growth. Can your

bureaucracy stand it?

Dr. Qurashi:

This is certainly something that is of great

significance, and it does need tc be done.
Because whenever one is examining as to which

is the best technology, one usually does not

have one choice that sticks out head and ears over the others. Usually there are two or three competing ones, and the conditions

which will make one more profitable as against the other, may be reversed in five or ten years. And therefore one does want to

allow the alternatives to at least exist.

One does not want to stamp them out

completely, otherwise they will not be

available when you need them. Now, in the

bureaucratic system, while they do try to

oversimplify and like to have just one answer

-- yes or no -- to everything, I think they

are now gradually being educated into this

process. Again, I must say that the U.S. and

the U.K. have been responsible for this

education, through the Intermediate

Technology Group of England, and the present

emphasis in the United Nations on Appropriate

Technology. And I think this can be brought

about through appropriate recommendations.

Miss Armstrong (written commentary notes):

Technology is a means to an end, not an end

in itself. It is "good" when it serves the

objectives of "management" (which can be

government, company, an entrepreneur, etc.,

or any combinations of these). Integration

into a working system is required.

Who is choosing the objectives (de factor or

de jure)? Are techniques chosen which best serve the objectives of society or a particular enterprise? Or are technologies

chosen because they are available or "good"

elsewhere? If so, do they thereby impose v objectives on the recipient society (or fail

because they are not suitable)?

Some of the measures often usable in

developing countries are:

(a) Increased number of people engaged in

productive activity (through employment, or

as suppliers or servicers to industry).

(b) Low investment in relation to

return.

(c) Effect on foreign exchange.

(e) Linkages with other local

enterprises.

(f) Production cost versus import cost.

(g) Regional development and other

sociological effects.

The term "transfer" is a misnomer.

Technology works only if developed in

relation to the local situation. "Transfer"

does not work. There are endless examples of

local people learning to make a project work,

but not knowing how to make further adaptive

changes.

The latest is not necessarily the best. Nor

is "catching up". "Best" is what suits your

purposes. Competitive products can often be

produced with "older" technologies.

How can the U.S. be more constructive?

Support more R and D about, in, and with

developing countries -- for both U.S. and

non-U. S. citizens.

Fellowships to train U.S. and foreign

citizens in developing countries or to

undertake research on developing country

technologies.

Other?

(d) Use of local material resources.

191
PAPER 6.3 - MANAGEMENT PRINCIPLES IN INDUSTRIALIZATION

Dr. James A. Slater

International Program Office

U.S. Department of the Interior

Washington, D.C.

You have heard my main thesis before during

this seminar, but I think it really bears

repeating because of its great importance in

industrialization. My thesis is that

knowledge and application of sound management

principles is really the basis of, and is a firm requirement for, industrializing

countries. Technicians and administrators

must be able to plan, organize, direct,

staff, and control their operations.

Poor management is probably the greatest

single problem in industrial development.

Unfortunately, it is a difficult problem to

correct. Nobody likes to hear about, and

nobody will admit to, being a poor manager.

Personnel attitudes in an organization are very negative toward management changes. Few

managers know the principles of management,

and probably fewer yet apply them when they

know them.

Let's look at some typical management

shortcomings, based upon my limited

experience in dealing with both the

developing and the developed nations. Under

the organic functions of management, let's

start with planning.

Development is often not based on needs. I think it is a very basic fundamental of good

operations -- business or government -- to

determine first what are the needs of the

operations, and industrialization operations

must be based around those needs.

I remember doing work in Nigeria and looking

at a 5100,000 retail market, that was funded by AID. A beautiful place -- it was

all self-enclosed and had fine artistry on the walls — and it cost 5100,000. It was really comical that the retailers were

setting up their orange crates and boxes

around the outside of the market place, not

in the building itself. It wasn't based on their needs. I think a 510,000 market

would have been quite sufficient. What the

retailers needed was a roof over their heads,

a place to weigh their merchandise, water,

and so forth, and those were the basics.

192

This reminds me of the story of the sales

manager who was before his salesmen,

indicating what a great product the company

had. They had the finest dog food on the

market. It had the highest vitamin content,

protein, low fat, everything that a dog could

want. And he asked a salesman, "What's

wrong, why aren't you selling this marvelous

product?" And the fellow shot back, "Because

the dogs won't eat the darn stuff." They were not looking at the basic needs and

desires of the consuming market.

Under the function of organizing, I think we

see in many industrializing situations a lack

of communications. It is a very easy problem

to get at, if we simply hold meetings,

discuss with our colleagues what we are doing, use the telephone, send drop copies of

correspondence, and the like. I think that

through contacts with the field and central

offices, we can get at this problem of basic

communications.

I have seen, and you have seen I am sure,

managerial situations where we have an indefinite chain of command. A worker

doesn't know who his boss is. Or he may have more than one boss. This is a very clear

violation of management principles. We must

have that focal point in the organization.

It is a very basic theorem of management that

if you cannot diagram an organization, it is

prima facie evidence that there is poor

organization in that operation.

Under the principle of staffing, we many

times find that there is a lack of

institution building in industrializing

countries. The solution to this problem is

that we must provide counterpart training.

I was recently in a developing country, and one of our experts there had offered to take

out the counterpart trainees many, many times

on field research. He was a worl d- renowned

expert in his field of research. And one time, he got one of the counterparts to go

along with him. On the basis not that he

would be with the U.S. expert at 6 o'clock in
the morning to start a two week field trip,

but the counterpart rather would fly up to

the place where the work was to be done. He

would meet the U.S. expert up there at a reasonable hour, like one or two o'clock in

the afternoon, he would spend a couple hours

in the field with him, he would fly back that

same day, while our expert would go on and

conduct the rest of his two weeks of research

in the field. It is very difficult to get some of these people out in the field where

they can get that training that is so necessary.

Under the function of direction, I think we find that in many industrializing situations,

there is a different emphasis or a different

weighting on the economic constraints. Time,

cost, quality, and quantity in developing

country situations have different weights

than what we apply in this country. For

example, in some of the work we are doing in

Saudi Arabia, time and quantity rank very

high in the economic constraints, whereas

quality and cost require less weighting. We

must have very clear direction in carrying on an operation.

Lastly, under the organic function of

control, I think we've seen in our work

abroad situations where many of the

executives have too broad a span of executive

control. I recently had discussions with a deputy minister in a developing country, and

his span of executive control reached to the

point of giving authority to duplicate work

on a duplicating machine. He interrupted our interview for a minute or two to look at a requisition to make 20 copies of an engineering drawing. Now I would say that

that is reaching out in the span of executive

control and certainly hindered the

industrialization of that country.

I've only hit upon some of the principles of

management that are being violated. I think

that this whole area of management is

critical in industrializing. We must

continue to pay attention to it, and I think

through proper application of management

principles, a lot of the work will progress

much faster.

Lack of personal incentives: we've seen this

a great deal , both the non-monetary

incentives and monetary incentives. You are

all familiar with the Hawthorne studies, and

what they produced in terms of the

non-monetary incentives. People need a challenging job, a job that is interesting, a job where they know that management cares, in

its operations and its treatment of the

workers. This is vital, as are the monetary

incentives. So that is, I think, a very

important factor in industrialization.

193

SECTION 7 - KNOWLEDGE REQUIRED TO ENABLE A COUNTRY TO ACQUIRE COMMERCIAL INDUSTRIAL TECHNOLOGY

Chairman: Albert R. Baron, Interregional Adviser, Development Planning

Department of Technical Cooperation for Development, United Nations, New York City

CHAIRMAN'S COMMENTS :

Mr. Issoufou S. Djermakoye,

Under-Secretary-General in charge of the

Department of Technical Cooperation for

Development of the United Nations, is unable

to be present to chair this session as planned, due to late-rising and urgent

requirements for his presence at the United

Nations. As a result, I am fortunate to have

the opportunity to chair this session.

Mr. Djermakoye 1 s prepared remarks will appear

in the published Proceedings. What I would

like to do now is to make a few personal

remarks which are inspired by the exchanges

this morning and yesterday afternoon.

First of all, I think the Bureau of Standards

has done a particular service in focussing

this Seminar on the industrial aspects of

development, the technological basis for

industry. Now, of course, the UN Conference

on Science and Technology for Development, in

Vienna next year, is going to cover all

aspects of development, from environment to

energy to rural development, agriculture,

etc., including industry. The point I would

make here, is that in recent years, U.S.

technical assistance, U.S. AID, has, by

design, been very heavily focussed on the

problems of poverty, of rural uplift, of food

production, of agricultural production, very

important problems, and the major emphasis,

at least in the public programs, has been

directed, and I believe rightly so, to

non-industrial development, per se . But , and

this I think is the point, the United States

with its tremendous reservoir of know-how in

what is called in this session, commercial

industrial technology, this tremendous

know-how is here, but is not really being

made as available as it might be, to the

developing world. I think that that is

something that many people in the United

States understand, and one of the purposes of

this Seminar is to focus on ways and

mechanisms to increase the flow of assistance

from the United States in this area of the

technological base for industrialization.

I would also like to add that in considering

how to stimulate the flow of transfer or adaptation of technology, one should not only

consider what the public sector can do, but,

as many other speakers have already

mentioned, also the private sector

contributions. Mechanisms for utilizing the

private sector must be looked at.

I would like to mention three aspects of

industrialization which I think need to be

borne in mind:

The first is the imperative of sound

planning, national planning, sectorial

planning, and project design. Too many

industrial projects in too many countries

failed because the basic project design work

was improperly or inadequately done. The

financial or technical or social analyses

just were not adequate. So I do feel that

the importance of tapping technological

know-how at the project design level can scarcely be over-emphasized, and what clearly

needs to be done over the years in many, many

countries, is to increase the country's

capability to manage project design well.

Second, I would like to recall that in many

countries today, the concern is not only the

establishment of new industry, but also, a real concern about how to get their existing

industrial plant working effectively. One can go around the continents and point out

many, many countries where a good proportion

of industrial plant is not working properly

or is subsidized at a heavy cost. What is

needed is better management and improved

technological developments in those failing

i ndustries.

The third point that I would like to make is

that there is a special need in nearly all

countries to look at the requirements for

promotion of small or medium-sized business,

which is a special problem.

195
PAPER 7.1 - REMARKS PREPARED FOR THE NBS/AID UNCSTD SEMINAR:

THE TECHNOLOGICAL BASE FOR INDUSTRIALIZING COUNTRIES

Issoufou S. Djermakoye

Undersecretary-General

Department of Technical Cooperation for Development

United Nations, New York

Mr. Chairman, Ladies, Gentlemen,

Distinguished Panel istsI consider it a privilege to be in

Washington, D.C., capital of the United

States of America, and I would like to take

this opportunity to greet, on behalf of the

United Nations and particularly on behalf of

the Third World, the American people, their

President Mr. Jimmy Carter, their Government,

and members of the Congress. Greetings and

thanks also to the distinguished organizers

and participants of this Conference.

The annual general meeting of the

International Monetary Fund and of the World

Bank, which was held from 24 to 28 September

here in Washington, gathered financial and

planning ministers and investment

organizations responsible for world monetary,

economic, and financial destinies and for

balanced relations between the northern and

southern hemispheres. I listened with

interest to the various speeches, and along

with the other participants, I appreciated

the scope of President Carter's impressive

speech and his tireless contribution, so necessary to safeguard what our modern world

needs most, namely peace.

During the IMF and IBRD meetings, I was once more struck by the interdependence of the

economies of the international human

community and by the interaction of all the

basic prerequisites to the establishment of a new world economic order, most just and more

humane. The purpose of our meeting here will

be to examine the basis of one of these

prerequisites, namely the transfer of

techno! ogy.

However, I must also point to progress made

in an area which has resulted in a chain

reaction of other initiatives. I am referring to the implementation, in fact and

in reality, of the 1970 United Nations

General Assembly resolution. This resolution

set at 0.7% of the gross national product the

minimum amount of aid from the industrialized

countries to the Third World.

Since 1970, the amount of this aid never rose above one half of this percentage. In fact,

a regular decrease has been registered, since

in 1976 and 1977, the absolute total of this

aid was lower in real terms than it was in

1971, 1972, and 1973.

The Third World countries paid tribute to the

Netherlands, Norway and Sweden, which went over the 0.7% aid figure. At the same time,

they will continue to express their

confidence that gradually the industrialized

countries as a whole will do their utmost in

the next decade to also reach, if not

surpass, this minimum set by the United

Nations, knowing that a better balance for

the world is at stake, sole guarantor of a real peace and better global security.

With reference to the problem mentioned

earlier of basic prerequisites, we must

continue to bear in mind the justified and

repeated concerns of the Third World during

the work of the Second Committee of the

General Assembly of the United Nations, and

at UNCTAD, concerning a realistic approach to

the transfer of technology, including the

need to lead to a revision of the 1883 Paris

Agreement on Industrial Property, and

establishment of a code of international

conduct with regard to the transfer of

technol ogy.

Let us now take up the basic theme of the

seminar: "The technological knowledge base

for industrializing countries".

First, I note that the organizers of the

conference have carefully arranged the

various panel sessions to help define more

clearly the needs of developing nations for

knowledge of the technologies for

industrial ization.

196
Secondly, the various sessions will make it

possible to explore procedures which have

proven effective in developing countries in

acquiring technical knowledge and in adapting

it to local needs. The presence of so many

distinguished representatives from developing

countries, from U.S. industry, and from U.S.

institutions concerned with science and

technology and industrialization certainly

holds promise that the outcome of these two

days will be to illuminate specific steps to

accelerate technological development in the

Third World.

I also note that the seminar has been

organized with the sponsorship of the

Department of State, the Agency of

International Development, the Department of

Commerce, and the prestigious U.S. National

Bureau of Standards in order to contribute to

preparations for the United Nations

Conference on Science and Technology for

Development to be held in Vienna next August,

by considering in particular the transfer and

adaptation of technical knowledge for

industrialization. The UNCSTD will of course

deal with the need to expand the technology

base for all aspects of development. I have

been pleased to note the emphasis of this

seminar on the industrialization aspect,

because it does appear evident that much more

can be done by the United States to

facilitate tapping by the Third World of the

vast technological know-how of America in the

field of industry. I hope, therefore, that

this seminar will lead to concrete

recommendations for developing public and

private mechanisms to augment the flow of

U.S. industrial technological know-how to the

developing countries.

Another essential point is that we are gathered here not only to try and solve all

kinds of problems which still act as blocks

to comprehensive development efforts, but

first and foremost to find arrangements and

solutions which will respond to the search of

the peoples of the Third World for a nourishing and need-satisfying culture. We

must devote ourselves to discover and create

that which is basic to their priorities and

to the multiple requirements of a new international economic order for a fair

redistribution of our planet's resources and

better international justice. We need, in

short, to help the Third World introduce and

adapt technologies (industrial and others)

which are people-oriented, which develop

self-reliance and which foster the new international economic order.

I have not wanted to take up too much of the

panel's limited time with my remarks, and

have endeavored to keep them brief. I would like to conclude by underlining for the

attention of all thinking men, professors,

researchers, technicians, experts in science

and technology the extent to which developing

countries and especially the poorest ones,

place their hope and trust in their total

cooperation in the struggle for freedom,

dignity, life, and for the know-how to fight

against hunger, illiteracy, poverty,

joblessness, sickness, and death. The men,

women, and children of the Third World know

that the people of the United States will,

along with other industrialized nations, make

their exceptional scientific and

technological capital available to the

developing nations.

In the words of Mr. Kurt Waldheim, Secretary

General of the United Nations, at the recent

meeting of the International Chamber of

Commerce in Orlando Florida on October 1st:

"Let us not lose sight of the fact that,

for the first time in history, we have at our means the resources and ability to bring

about a better life for all peoples. We do

not have much time. The new decade is almost

upon us, and the new century is not far away.

We must, in these few years, make meaningful

progress in solving our burning economic

problems. We can only do this if we are committed to the advancement of human welfare

and human dignity. This, in my view, is a great challenge of our time. Let us determine to meet it with imagination and

courage in order to build a better life for

all".

Ladies and Gentlemen, I thank you.
SOUTH AMERICA

Population: 213 (Millions, 1975)*

Area: 17.7 (Millions of kmJ

) GNP: 175 (Billions of US$, 1975)'

BRUSH

Population: 107 (Millions, 1975)*

Area: 8.5 (Millions of km9

) GNP: 82.4 (Billions US$, 1975)

*

* Progresso S6clo-Econ6mlco na America Latina,

Interamerlcan Development Bank.

198
PAPER 7.2 - KNOWLEDGE REQUIRED TO ENABLE A COUNTRY TO ACQUIRE COMMERCIAL INDUSTRIAL

TECHNOLOGY — EXPERIENCE OF A COUNTRY WITH AN INTERMEDIATE ECONOMY

Dr. Alberto Pereira de Castro

Superintendente

Instituto de Pesquisas Tecnologicas

Sao Paulo, Brazil

1. INTRODUCTION AND SUMMARY

I will speak about some experiences in

acquiring technology in the region of Sao

Paulo. First of all, I like the idea of

speaking of acquiring technology, as contrasted to the common expression, transfer

of technology. I believe that "acquiring" is an active act. You have to be active if you

want to find some technology in this world.

I will try to make a rapid summary of the

conditions in the country, and then try to

make some points that I think should be

di scussed.

After a long historical period of a slow

maturation, the Brazilian manufacturing

industry started to grow during the 30s and

has been keeping a rather steady pace of

growth since the mid-40s in spite of some intervening slumps. This growth started with

the development of some manufacturing

industries by Brazilian entrepreneurs, mainly

in the urban areas of Sao Paulo, Rio de

Janeiro, Minas Gerais and Rio Grande do Sul

,

the first one being the most important.

Foreign and multinational companies joined

this development later, in the same urban

areas, constituting a second segment of the

Brazilian manufacturing industry. A third

segment is constituted by state-owned

enterprises, mainly in the steel and

petroleum industries; the state-owned

enterprises also have had a very important

participation in the development of basic

industrial services, such as electric power,

railroads, navigation, and communications.

Joint ventures, represented by industrial

manufacturing companies with a participation

of both Brazilian private and foreign

interests, have not been uncommon and, very

recently, a new kind of a hybrid has appeared

in the form of several joint ventures with a tripartite participation of state-owned

companies, Brazilian private interests, and

foreign or multinational companies.

The characteristics of the modes of acquiring

1

the necessary technology have a very

important bearing on the distribution of the

different industrial initiatives among the

various above segments. The present paper

deals mainly with the acquisition of

technology by the first segment of the

Brazilian manufacturing industry, i.e., the

one developed by Brazilian interests and

entrepreneurs, and draws from real case experiences, in the area of Sao Paulo, in the

period starting at the end of the last world

war.

2. SOME ASPECTS OF THE BRAZILIAN ECONOMY

The map of Fig. 2.1. presents the relative

position of Brazil in South America: about

half of the area, half of the population, and

half of the gross national product [1]. The

map of Fig. 2.2 shows the main regions of

Brazil [2]. The Northern Region plus the

Center-West Region correspond to 64% of the

total area of the country, with less than

10% of the population. The new capital,

Brasilia, now with more than 750,000

inhabitants, has contributed to the increase

of the population of the Center Region of the

country; the triangle formed by the cities of

Brasilia, Goiania and Anapolis represent a total population of 2 million inhabitants and

constitutes a pole for the colonization of a vast hinterland. The main cities in the

Northern Region are Bel em (800,000 inhabitants)

and Manaus (700,000 inhabitants). The

Northeastern Region corresponds to 18% of the area and 30% of the population of the country;

60% of the Region is a dry country suffering

from irregular and insufficient rainfall. The

Northeastern Region has three metropolitan

areas with more than one million inhabitants

each: Fortaleza (1,300,000), Recife

(2,000,000) and Salvador (1,500,000). The

South and South-Eastern Regions comprehend

another 18% of the total surface of Brazil and

60% the total population. Its main

metropolitan areas are: Sao Paulo, with

10 million inhabitants (7,100,000 in the City

of Sao Paulo); Rio de Janeiro, with 8 million
200
inhabitants (4,800,00 in the city of Rio de

Janeiro); Belo Horizonte, with 2 million

inhabitants; and Porto Alegre, with 1,800,000

inhabitants.

Most of the agricultural and industrial

production of the country comes from the

South and South-Eastern Regions; the

Center-West and Northern Regions represent a vast expanse for new cattle raising and

agricultural projects, and the Northeastern

Region still represents the "poverty belt" of

the country which exports excess population

to the other regions. The average per capita

incomes of the different regions reflect the

above observations (see Fig. 2.2).

Table 2.1 shows some indicative figures of

the industrial growth of the country since

1930; it shows also that the Brazilian

industrial development is of quite recent

origin.

3. EXPERIENCES IN THE ACQUISITION OF

TECHNOLOGY BY BRAZILIAN

MANUFACTURING COMPANIES

expanded in later years to become one of the

main suppliers of forged parts for the

Brazilian automotive industry. In 1955, a new plant was started to manufacture pressure

vessels (heat exchangers, reactors,

direct-fired furnaces and boilers) for the

petroleum refining and the petro-chemical

industries. Three years later, the Group

started the erection of another plant for the

manufacture of rear axles for the Brazilian

automotive industry. More recently the Group

has been expanding its manufacturing

facilities and has built other plants,

including one for rear axles for tractors,

and one for railway passenger cars.

Such an astounding variety of techniques and

of engineering know-how has required a well

balanced plan for drawing both from local and

from foreign technological capabilities (see

Table 3.1).

Table 3.1

Real case experiences of acquisition of

technology by Brazilian manufacturing

companies

A Brazilian industrial Group, with whom the

author was associated for more than 20

years, has been engaged since 1945 in the

building and the operation of several

manufacturing industries, in the metropolitan

area of Sao Paulo. It started to build, in

1945, a plant for the manufacture of railway

rolling stock, that included a steel foundry

for the production of truck bolsters and side

frames, of couplers and of draft-gears for

freight cars, and a car shop; later a railway

axle production unit was also installed in

this same plant. In 1952, the Group started

the development of a drop- forging plant which

-Starting in 1945-- A plant for the

manufacture of railroad rolling stock.

(a) Steel foundry for cast freight trucks,

couplers and draft-gears: Technology

acquired through a contract of license and

technical assistance;

(b) Carshop: Technology developed without

technical assistance agreements;

(c) Railway axle plant: Technology

developed without technical assistance

agreements.

TABLE 2.1 SOME SERIES OF BRAZILIAN INDUSTRIAL PRODUCTION

Electric Energy Steel

(Kw) (tons)

Cement

(tons)

Automobile

and other

vehicles

1930

1940

1950

1960

1970

1975

778,800

1 ,243,900

1 ,883,500

4,800,100

11 ,233,400

19,056,000

21 ,000

169,000

690,000

2.219,000

5.390,000

8.308,000

87,160

744,673

1 ,385,797

4,417,788

9,002,000

16,736,458

0

0

0

133,078

416,394

920,834

201
2—Starting in 1952-- A drop- forging plant

for automotive parts. Technology

developed without a technical assistance

agreement.

3 —Starting in 1955-- A manufacturing plant

for pressure vessels for the petroleum

refining and petrochemical industries.

o Agreements for the purchase of the

basic designs.

4—Starting in 1958— A plant for the

manufacture of automotive rear axles.

o Joint venture with a minority

participation of an American

manufacturer.

o Technology acquired through a license

and technical assistance agreement.

For the railway rolling stock plant, while

the design and the manufacturing methods for

the freight-car bodies was wholly developed

locally, an agreement for a license and

technical assistance was made with an American company for the development of the

trucks, couplers and draft-gears. According

to the agreement, the American company has

trained three Brazilian engineers in its own shops; supplied the product designs and

specifications; provided drawings,

instructions and standards for every

manufacturing step, including inspection and

testing methods; and provided a senior

metallurgist and a master pattern maker for

the first year of operation of the steel

foundry shop.

The second plant, the drop forging plant, was developed by local engineers, a fact that is

noticeable because it was the first of its

kind in the country. In this development the

Brazilian technicians had substantial

technical help from the multinational

automotive companies that were installing

manufacturing plants in Brazil, as well as from the foreign suppliers of the forging and

die-making equipment.

As for the pressure vessel plant, the Group

made an agreement with an American

engineering company for the supply of the

basic designs, and developed locally the

mechanical designs and the manufacturing

methods.

Finally, for the production of the automotive

axles, the Brazilian Group negotiated with an American company a joint venture in which the

American partners subscribed 30% of the

stock, thus providing part of the funds for

the importation of the necessary equipment.

The new company made a technical assistance

agreement with the parent American company,

which comprised not only the supply of the

necessary drawings, specifications and

production plans for the various parts and

components, but also a very extensive program

for training Brazilian technicians in the

U.S. and an intensive participation of some

key American technicians in the initial phase

of operation of the new plant, due to the

complexity of the products involved.

During all those years, innumerable other

industrial projects were being developed in

Brazil. In the earlier years, only the very

big projects would involve the retaining of

an engineering firm; more recently this has

become the rule, because the complexity of

the projects has increased and also because

of the growth of several Brazilian

engineering companies. In general these

companies will contract the whole project

and, when necessary, will sub-contract some

items with foreign specialized engineering

firms.

Besides the petroleum refining industry, the

heavy steel industry is in large part

controlled by state-owned companies. In the

petroleum industry this is due to a legal

monopoly, but in the case of the steel

industry it seems connected to a lack of

interest from the private sector, because of

the large long maturing investments necessary

and of the considerable foreign loans

required for the importation of the equipment

invol ved.

202
The chemical industry is largely controlled

by foreign and multinational companies,

because of the proprietary processes

resulting from their strong R and D activities abroad. The same is true for the

modern electronics industry. Recently, the

Government has been fostering the tripartite

joint venture scheme mentioned above, in an effort to attract the necessary technology

and at the same time secure a national

participation in these industries.

The same multinational companies that lead

the development of the automotive industry in

the U.S. and in Europe control this

industrial sector in Brazil; but their

suppliers constitute a large automotive

parts industry where Brazilian and foreign

enterprises are competing and prospering side

by side. In most of the sectors of the

manufacturing industry this free competition

between Brazilian and foreign private

companies is a rule.

4. THE CONTENTS OF AN INDUSTRIAL

TECHNOLOGY - THE ACQUISITION

OF TECHNOLOGY

The graph of Fig. 4.1, taken from R. Charpie

throuah a citation in Graham Jones' "The

Role of Science and Technology in Developing

Countries" [3], constitutes a good basis for

the analysis of the contents of a commercial

industrial technology and for the discussion

of its application in a developing country.

The transfer from abroad of a commercial

industrial technology may cause in the

economy of a developing country many of the

effects of a true technological innovation

and can be considered as a relative or secondary innovation. Its contents can be

described in terms of the technical functions

represented in the three intermediate bars of

Fig. 4.1: (a) product design and

engineering, (b) conversion process

engineering (tool ing-up) , and

(c) manufacturing engineering.

In a true innovation, the product design and

engineering function is performed in two

steps. In the first step, the product

engineers, working very closely with R and D and with marketing, develop the general

specifications of the product, as related to

form and performance, and experiment with one

or more prototypes. In the second step, the

general specifications are translated into

the manufacturing language, i.e., drawings

and technical specifications [4]. In general, a commercial industrial technology

incorporates only the results of the second

step — the product drawings and technical

specifications.

FIG. 4.1

TYPICAL DISTRIBUTION OF COSTS IN SUCCESSFUL PRODUCT INNOVATIONS

Research,

advanced development

basic invention

Engineering and

designing the product

Tooling, manufacturing

engineering (Getting ready

for manufacture)

Manufacturing

start-up expenses

Marketing

start-up expenses

5-10%

10-20%

40-50%

5-15%

10-25%

10 20 30 40 50 60 70 80

Source: Charpie, Technological Innovation.

203
The conversion process engineering function

deals with the study of the unit operations

and process charts involved in the

manufacture of the product, and with the

specification of the industrial equipment

necessary considering both the levels of

production and of quality to be attained. In general, the commercial industrial technology

includes the process charts, the operation

sheets, and the specifications of the raw materials and of the industrial equipment.

In special cases, more frequent in dealing

with chemical products, it can require

special process equipment of proprietary

design; that is, it may contain a sort of a "black box" or something that is not

acquired. The technology is transferred to

us, and we get the basic designs of the

equipment, but we don't get a handle on how

to redesign an equipment if we need to.

The manufacturing engineering function

includes the study of the procedures for the

day to day activities of production planning

and control and of quality control. In general , these questions are thoroughly

detailed in a commercial industrial

technology and references are made to the

relevant fundamental texts available, because

the recipient of the technology must be

capable of making the necessary daily

adaptations in a rational way.

In many practical cases one may want to

assemble his own complete commercial

industrial technology, acquiring different

parts from different sources, possibly by

different methods. Or one may need only to

acquire improvements for a basic technology

one already masters. In Table 4.1, I tried

to list the different ways of acquiring

technology. The list is not exhaustive, and

I think that everybody involved in the

technology business will eventually use each

of the different ways described in Table 4.1,

if not to acquire, at least to compare the

technology he is using with that of the

actual and potential competitors.

Table 4.1

Acquisition of industrial technologies

Through one or a combination of some of the

following ways:

1. R and D 2. Technical Information

o Books and Magazines

o Foreign and International

Standards and Specf ications

o Technical Information Services

o Commercial Technical Catalogs

3. Training Personnel

o Training Abroad

o Importing Technicians

4. Analysis of Embodied Technology

o Importation of Foreign Products

(For copy and adaptation)

o Importation of Foreign Special

Process Equipment (to learn about

Special Conversion Processes)

5. Contracts of Purchase of Technology

o Licensing of Patents (Includes

Disclosure of Peripheral

Techno! ogies)

o Technical Assistance (Includes

Product Design)

o Engineering Projects and

Services

Referring now the four real case Brazilian

experiences presented in the Section 3 above,

one can make the following generalizations:

(a) The two cases of purchase of a complete

industrial technology (the first for the

production of cast steel freight car parts

and the second for the production of rear axles for automotive vehicles) correspond in

fact to major product innovations (relative)

in the country.

(b) The examples where the necessary

technology was assembled from different

sources correspond to manufacturing

operations where the product designs were

specified by the clients; this is true even

in the case of the manufacture of freight-car

bodies, where some important adaptations had

to be made. We can assemble a technology

whenever we don't have to develop the product

design and also in those cases where you do

not have a complicated process.

204
(c) In one case, the manufacture of the

pressure vessels, all we had to import (and

we still have to import) is the basic product

design. We developed our own methods for

mechanical design, manufacturing, and quality

control, completely.

In conclusion, the main obstacle to a complete "nationalization" of the technology

involved in the real cases cited, including

the two cases of major (relative)

innovations, is connected with the lack of

capability in the product and process design

and engineering function. And I believe that

this capability can only be developed through

an R, D and E approach, that is, through the

interaction of the engineering groups with

the R and D capability.

5. KNOWLEDGE REQUIRED TO APPLY AN

INDUSTRIAL TECHNOLOGY

In the real case examples examined in the

preceding section, the knowledge needed to

acquire the different necessary industrial

technologies has consisted essentially of

sound engineering knowledge, the industrial

technologies being expressed in terms of the

engineering language — drawings, standards,

specifications, process charts, plant

lay-outs, operation sheets, and testing

procedures. But the application of each

industrial technology has always required

some input of local research, even when this

technology was wholly purchased abroad,

because of the necessary knowledge of the

most diverse materials needed to build and to

operate an industrial plant.

To operate an industrial plant you must also

have available locally a large diversity of

skilled personnel, like mechanics, tool

makers, electricians, plumbers, etc. In these aspects, the industrial area of Sao

Paulo was in a favorable position, when the

speed of the industrialization of the country

started to increase. It had skilled

personnel , because the thousands of

immigrants that came from Europe, attracted

by the coffee plantations of the State of Sao

Paulo, had included a large number of skilled

technicians, many of them with

entrepreneurial capability. In fact, their

"back-yard industries", as their small

factories were called, reached such an importance that since the early thirties the

city of Sao Paulo boasted of being "the

biggest industrial park in South America".

Later, the training of skilled workers was undertaken on a national basis by an institution organized and maintained by

industry. On the other hand, the local

engineering school ~ Escola Politecnica de

Sao Paulo -- that was founded in the last

decade of the past century, has shown since

its beginning a strong capability for the

development of a good laboratory basis for

the study of the locaj materials and natural resources. Its young engineer graduates were initially attracted by the needs of the

railroad and highway construction, by the

growth of the local electric power network

and by the building of the city of Sao Paulo,

but soon started to show interest in the

manufacturing industry. As an out-growth of

the engineering school, an institute for

technological research was founded in 1934,

the Instituto de Pesquisas Tecnologicas —

IPT for short -- with the objective of

supporting the industrialization movement.

The combined influence of the two

institutions -- the Escola Politecnica and

the IPT — in the industrialization of the

country has been studied by

Prof. Dr. Carneiro, Jr., in a work at the

Institute for Latin American Studies of the

University of London, published in

February, 1970, under the title: "The

Development of Technological Progress in

Brazil — a case study: IPT's role in

adapting, transferring and creating

technology". From this work of

Prof. Carneiro I quote the following

excerpts, with some of his findings and

conclusions: "Research was started (then) in

several areas of chemistry, in metrology, in

industrial standards, building structures,

soil mechanics, and high quality plywood" ... "IPT did also pioneer's work in different

specialized areas of metallurgy, ferrous and

non-ferrous alike" ... "Its permanent

assistance was vital to the motor industry

and all sectors of different engineering

industries when they went into production in

the country" ... "By its initiative, the

Brazilian Association for Technical Standards

(ABNT) was formed and several industrial

standards were first drafted at IPT" ... "Technicians from several Brazilian states

and firms and from other countries in Latin

America worked there for varying periods,

being trained in different industrial
techniques. Finally it also turned into an important source of entrepreneurial talent,

many of the Sao Paulo leading industrial

leaders having done several months or years

of training in its laboratories" ... "these

men are or have been front rank entrepreneurs

in important industries and financial

groups".

The support of IPT to the growing industry

was provided through specific services of the

following categories:

--Tests and chemical analysis.

--Industrial metrology.

--Research on specific problems and

trouble shooting.

--Pilot plant experimentation (in some industrial sectors).

_

—Training of personnel in the

laboratories and experimental stations.

--Technical assistance and consulting.

When you consider the problem of acquiring

industrial technologies you have also to

consider the organization and maintenance of

some local institutions whose support may be

of the utmost importance to the practical use of those technologies. In the case of the

industrial development in the area of Sao

Paulo, an engineering school and an industrial research institute, both stressing

the need and the advantages of objective

laboratory measurements and experimentations,

have been the key local institutions. I am emphasizing the adherence to a basic

experimental orientation of the two above

institutions, because I believe that Sao

Paulo constitutes an early example of local

reaction against the generally prevailing

discursive-rhetorical characteristic of

higher education in Latin America. In 1899,

the founder of the Escola Politecnica, had

specified what he expected of the new school,

in the following words:

(The Sao Paulo Engineering School's) "main

objective is to prepare people to do and to

act, rather than to discuss and

digress". [5]

I tend to believe, also, that those

institutions, besides acting as a basic

support for the acquisition of industrial

technology by Brazilian enterprises, have

also largely contributed to attract the

foreign and multinational companies that

operate in the country, most of them settling

in the area of Sao Paulo. This is in

agreement with Prof. R. B. Stobaugh, Jr., of

the Harvard School of Business, who considers

that what he calls a "local technology"

represents a very strong factor in the choice

for the location of an industrial affiliate

abroad [6], I would add as a commentary that

in the case of Sao Paulo, very few of the

foreign and multinational corporations

located there have done anything to help the

strengthening of those institutions.

6. THE ACQUISITION OF TECHNOLOGY BY

BRAZILIAN INDUSTRIES - A CHANGING PICTURE

The industrialization of the Country, made

through the combined efforts of the

national private enterprises, the foreign and

multinational corporations and the

state-owned companies, has significantly

strengthened and developed the Brazilian

internal economy. But since the sixties

there has been a mounting preoccupation with

the growing external technological dependence

of the country. Some of the more objective

preoccupations are related to:

I - Problems with engineering projects

contracted abroad. A project developed in a given foreign country will tend to specify

the construction materials and the

industrial equipment according to what is

used in that country. This may cause the

importation of components and of equipment

that could otherwise be manufactured in

Brazil

.

II - Problems with licensing and technical

agreements. They may contribute to the

capture of Brazilian private industries by

foreign companies:

(i) Some foreign companies have used a technical assistance agreement with a Brazilian company as a way of exploring the

size and the importance of the local market;

at the end of the term of the agreement, they

have exerted pressure upon their licensee to

sell the industry, or simply put up a factory

in the country, in full competition with

their former licensees, leading them to

bankrupcy.
(ii) Some local companies that wanted

to acquire a certain technology to support

the evolution of their Brazilian market, have

met as an answer from the few foreign

companies that controlled said technology

that they were not interested in an agreement

"because they wanted a free hand in the

growing Brazilian market".

In both cases, the Brazilian companies have

found that "technology" is not a regular

commodity that can be bought in the open

market. It is, indeed, a different sort of a commodity, that a foreign company can produce

and not sell, or it may sell and still keep

it.

Ill - The tendency of perpetuation of some

technical agreements. In general the

Brazilian industry after contracting an assistance agreement finds itself in a conflicting situation. On one side it would

like to get free of the payments involved as soon as possible, but on the other side it

tends to prolong the agreement because:

(i) It fears to acquire a competitor - either a branch of the licensor or another

Brazilian company that could take its place;

and

(ii) It fears to lose the access in the

future to some eventual innovation the

licensor may develop. What is not generally

understood is that the Brazilian licensee

frequently adds a third reason to the

perpetuation of the license.

(iii) It derates its own process and

product engineering department to the mere

functions of translating, interpreting and

detailing the drawings and technical

procedures received from the licensor.

IV - The lack of ready-made technologies

for the exploitation of the nonconventional

natural resources of the country. Many of

the Brazilian mineral, forestry, and

agricultural resources are considerably

different from those of the industrialized

countries, and in these cases their

industrial use will depend upon a work of R,

D and E that cannot be expected to be made

outside of the country. This is the case,

for instance, of some very complex mineral

bodies, of the high ash coals of the southern

part of the country, and of the charcoal

plantations of the center east part of the

country that supply almost half of the

Brazilian steel production. And as we try to

develop local substitutes for the imported

petroleum the number of such cases will

certainly increase.

I don't believe that many of the problems

presented above can find a definite solution.

Many of them represent conflicts of interest

that have to be dealt with on a day to day

and a case by case basis. But I believe that

a steady strengthening of the Brazilian R, D and E capability will increase the

self-confidence of the Brazilian companies

and will create a better climate for a mutual

understanding between the foreign suppliers

of technology and the recipient local

industries. It will also help in the

development of the general economy through

the increased industrial use of the local

nonconventional resources above mentioned.

A way of doing this could be through the

strengthening of research institutions like

IPT. In the past five years IPT has lived a very interesting experience of working in

many projects together with American

institutions, through a loan agreement with

USAID. One of the American institutions has

been our host today, the U.S. National Bureau

of Standards. Brazil has now a good number

of flourishing research institutions, and I believe that a bigger long term plan could

make them all profit from the experience, the

capability and ingenuity of the American

Universities and research institutions, in

the development of a sound R, D and E basis

for my country.

207
References

[1] IBD ( Interamerican Development Bank) - Social and Economic Progress in Latin

America (1976).

[2] IBGE (Brazilian Institute for Geography

and Statistics ) - Sinopse Estatistica

(1977).

[3] Jones, G. , The Role of Science and

Technology in Developing Countries (The

International Council of Scientific

Unions, London, 1971).

[4] Timms, H. L., The Production Function in

Business (IRWINN, Inc., Homewood, 111.,

1962).

[5] IPT, Meio seculo de tecnologia, Bui. 34

(1950).

[6] Stobaugh, R. B., Jr., Where in the world

should we put that plant?, Harvard

Business Review (Jan. /Feb. 1969).

208
PAPER 7.3 - THE ROLE OF TECHNOLOGY NEGOTIATORS

Robert J. Radway

Attorney and Consultant

New York, N.Y.

1. INTRODUCTION

First, I would like to add my thanks and my

gratitude to that of the other speakers in

commending NBS and AID for the splendid

organization of this program. I have

participated in a number of programs on the

transfer of technology, and I am delighted to

see the emphasis in this one on some of the

specific technical infrastructure of the

subject. I think that is a topic that is too

often neglected in favor of other aspects.

I would like to elaborate a little bit on my

own background. I have been asked, "Why a lawyer in this program, amid so many

engineers and scientists?" I have had a little involvement myself with standards,

going back to my days in the defense and

aerospace industries, which those of you

here in the NBS and other U.S. Government

organizations will particularly appreciate.

It goes back to cutting my teeth on ANMS and

NAS and Mil specs, when I was working in the

defense and aerospace industries. And I have

been involved (for a lawyer) in a rather

extraordinary number of aspects of the

production process, from the receipt of raw materials and parts on the receiving dock,

tracing the receiving reports into the

materials operations departments, and through

to inventory control and production control,

and all the way up to the Project Offices of

various large systems and hardware projects,

in those industries, and so on. I am told

that I speak "engineering" to some degree,

although I am not an engineer myself.

I am not going to confine my remarks to the

role of licensing negotiators, but to speak more broadly of technology negotiators,

because as you have seen demonstrated by the

previous presentations, technology is

transferred in a variety of ways, not simply

in licensing agreements. Part of my

experience was as International Counsel for a large process engineering firm that built

processing plants all over the world, serving

a number of the processing industries.

Technology is transferred through direct

foreign investments, in my view, probably more than any other means. It is transferred

extensively (I agree completely with the

previous speaker) through the supply of

detailed and basic engineering. It is

transferred through the supply of technical

assistance and technical services agreements,

management assistance agreements, and, of

course, through the licensing of patents,

trademarks, and, particularly, unpatented

know-how.

In the process of technology transfer

attention has shifted from the sources of

technology and attempts to control and

regulate both access to and the supply of

appropriate technology for economic and

social development, to the capabilities of

the receiving infrastructures to properly

select, absorb, utilize, assimilate, and

improve upon technology for industrialization, or in other words, to acquire

it for effective use. This point in the

entire process — the negotiation of the

agreement for the technology and its

transfer -- is perhaps a threshold, and the

effectiveness with which principal actors

discharge their responsibilities will have a substantial impact upon the effectiveness of

any particular transfer, and the contribution

of the technology to the industrialization

process. Let me be a bit more specific.

2. IMPORTANCE OF NEGOTIATION TO

SUCCESSFUL TRANSFER

Once a recipient country identifies a need

within its development plan, it invariably

undertakes the necessary activities to

identify technology which will be suitable to

fill that need. The host government, or the

appropriate productive sector enterprise,

directly or by retaining a consultant, will

survey the available data, and prepare

parameters or specifications which must be

met in order to fill the need and accomplish

the objective. For example, in the context
of an import substitution model, studies may

have identified substantial expenditures of scarce foreign exchange on particular

chemical products which have been imported

for use in the industrialization process.

The determination is made that the raw materials exist within the country. The

decision is made that a chemical processing

plant should be built, and a location is

determined by a feasibility study. The study

may take into consideration national policy

to diversify industry away from highly

concentrated areas in order to create

employment opportunities in other zones,

thereby reducing population pressures on major urban centers. Research indicates that

processes owned by several of the leading

Transnational Enterprises (TNEs) would appear

to be suitable to the constraints and

parameters identified before and during the

feasibility study. Specifications are then

prepared for an international tender. The

documentation is made available to a substantial list of enterprises for whom data

indicate that capability exists to produce

the facility.

Nine (9) enterprises respond, with elaborate

proposals, to design and construct the

appropriate chemical processing plant. The

bids are evaluated and for various reasons,

four of the nine are eliminated for

non-responsiveness. Of the remaining five, a determination is made that the proposal

submitted by company 1 is the most attractive

from a technical, economic, and social point

of view. Company 1 is thus selected, and the

others are ranked in descending order as to

desirability, 2 through 5. Company 1 is

notified that its proposal has been selected,

and it accepts the offer to begin

negotiations for a contract to design and

construct the plant.

There are obvious conflicts in this situation

before the negotiations begin. The host

government is, to a degree, dependent upon

the TNE for the technology to be supplied to

accomplish the country's industrialization

goals. Yet the TNE is seen as a creature

with worldwide presence, foreign control, and

ability to raise capital and other resources

in foreign markets, seemingly without

allegiance to a single country. The

perception is, that lacking this allegiance,

government to government pressure would not

necessarily be successful in the event

difficulties or disputes arise (as they

inevitably do) during the project. The TNE

is seen as transcending the sovereign

interests and limits of the host country.

The stage will be set in this negotiation for

the relationship between the technology

supplier and the host country. The adoption

by both parties of a long-term mentality will

help to provide a climate of stability and

mutual benefit, such that difficult decisions

at crucial stages will be resolved in favor

of a successful transfer. These decisions

often have negative economic consequences for

the technology supplier, in the short term.

Thus, the negotiating posture, particularly

that of the host government, as well as the

strategy and tactics employed, will have a direct bearing on whether a climate of mutual

trust and confidence is created. This, in

turn, will directly affect the speed and

efficiency with which the technology is

transferred -- how quickly and how well the

chemical plant will be built — and the

degree of commitment by the supplier to the

complementary but essential elements of the

transfer process, including training and

subsequent maintenance and support of the

pi ant

.

3. UNEQUAL BARGAINING POWER - RELATION

TO KNOWLEDGE BASE

When the recipient is a local private sector

organization, as opposed to a government

agency, there is less of a tendency for the

subliminal conflict in perceptions to arise.

Generally, there is more of an acceptance of

the necessity for dependence upon the foreign

technology supplier, at least in the early

stages of the project. In either event, it

has been common in recent years to refer to

inequality of bargaining power between the

recipients and suppliers as one of the major

reasons for political attempts to restructure

the process of technology transfer.

Inequality of bargaining power arises, in

part, from inequality of knowledge and

experience. Increasing the knowledge base,

the theme of this conference, is thus a prerequisite for ultimate equalization, or at

least realignment, of bargaining power. In the interim, however, among the most

210
successful approaches to equalization include

the adoption at the outset of the long-term

approach and attitudes referred to earlier,

toward developing a mutually productive and

beneficial relationship with the supplier.

The adoption by both sides of such a long-term mentality facilitates the creation

and development of mutual trust, as mentioned. The TNE must view the transaction

as a partnership, whereby it is becoming a citizen of the host country, and it is

undertaking a commitment to economic and

social development (through building an efficient plant which adds value to existing

raw material resources), in return for a satisfactory profit. The host government

should look upon this relationship in a similar way, and should exert dedicated

efforts to maintain a climate of stability

such that the TNE does not believe that it

will place in jeopardy the allocation of its

human and material resources toward the

accomplishment of this project. Such a climate of stability has been increasingly

lacking in recent years in various parts of

the industrializing world.

The use of consultants is highly recommended

for the technology recipient. Consultants

have long been employed by TNEs in technical

capacities to supplement their existing

technical expertise. This also lends

additional prestige to the supplier, since

the consultant usually has established a favorable international reputation. This is

urged for the recipients as well, including

host governments. The analysis of the

technical proposal submitted by the TNE

requires an intensive qualitative dimension,

in addition to the quantitative now being

discussed by the Technology Registries and

other appropriate government agencies in

certain developing countries. In other

words, at the present time, one of the major

criteria for determining acceptance and

registration of technology agreements by a host government is whether the royalty rate

is too high. What is far more important,

however, is the quality and distinctive or unique characteristics of the technology, the

determination of whether it is appropriate to

the needs of the country, and whether it is

suitable or adaptable to the market into

which the technology is being transferred.

No technology is appropriate if the

infrastructure is not capable of receiving

it, absorbing it, and utilizing it

effectively, and, ultimately, improving upon

it.

In addition, recipients should begin to

employ as consultants the experienced

negotiators who have insight into the

operations, thinking, and negotiating tactics

of TNEs. Many of these professionals are available but are not being utilized for a variety of reasons. These people are often

seasoned professionals, including economists

and lawyers, and would be totally loyal to

the client that hired them for the particular

assignment. The employment of technical and

negotiating consultants by technology

recipients would lead to more productive and

shorter negotiations and fewer

misunderstandings. The cost of the

consultant's fee would be recovered many

times over the life of the project, and can

be financed with the project.

In the long term, several international

organizations are actively conducting

programs to train developing country

government officials in the art and science

of improving their negotiating capabilities

with TNEs. These are the TCDC programs, with

which Mr. Baron is involved. In addition to

capacity for negotiations, however, practical

experience in the technical discipline

involved is essential to appreciate the type

of problems which normally arise in the course of these projects. While this

capability is being developed, there would

appear to be no better interim solution than

the prudent deployment of consultants.

Another important strategy to equalize

bargaining and accomplish negotiating goals

includes the granting of various important

negotiating trade-offs in return for

necessities and to more readily encourage

more effective transfer. For example,

various kinds of incentives can be granted to

a technology supplier, including tax

incentives and others, in exchange for the

requirement that the TNE commit itself to and

carry out a mutually agreed-upon program of

training, both in the host country and in the

home office of the technology supplier, with

access to the kind of facilities and

environment which would provide an entirely

different dimension of training for the

technician who will eventually be operating

1
the plant. This "hands-on" training is an important element to accomplish an ultimate

objective of increasing the skill levels across the broadest sectors of society.

Another tradeoff could be the establishment

of small R and D or adaptation centers,

involving only 2-3 people, in the host

country, to perform the well-known

development engineering function, so well

perfected by technology suppliers, in the

particular environment of the host country.

These would employ one or more local

technicians or engineers and would provide

the kind of outstanding training that would

be directly relevant or valuable for

increasing the skill level and providing an upgrading of the knowledge base.

4. CONFLICTING OBJECTIVES OF SUPPLIERS

AND RECIPIENTS

In addition to the conflict in perceptions

which sometimes exists, and the inequality

of bargaining power, the recipient enters the

negotiating arena with a defined set of

objectives, whether government or private.

These objectives normally include some or all

of the following: The necessity for the

importation of . capital and technology for

industrialization to supplement the domestic

resources, preservation of scarce foreign

exchange reserves, diffusion of the benefits

of the imported technology throughout the

economy, creation of more employment for

nationals and location of plants in

labor-surplus areas, avoidance

of unsuitable or irrelevant technology

(developing countries often need more labor

intensive as opposed to capital intensive

equipment or technology with some exceptions), avoidance of overcharges and

restrictions on the confidentiality and use of the technology, and compatiblity with

existing environmental and energy policies of

the host government. The general objective

expressed by leaders of many developing

countries is to obtain the technology

outright or purchase it, rather than pay

continuing royalties throughout the length of

what are viewed by some as excessively long

agreements. The recipient will enter these

negotiations aware of a history of

experiences in its own and other developing

countries, which may include some documented

abuses in the transfer to these countries.

21

These alleged abuses include, for example,

the sale of technology without the

accompanying arrangement for technical

assistance. As a result, problems arise at

various stages of the production process,

which could involve anything from the

selection and utilization of raw materials,

to the organization and training of the

personnel. From the unfavorable results in

these cases, it has been erroneously

concluded that the technology is worthless,

and payment for it constitutes wasted resources. In other cases, technology which

is obsolete or already in the public domain,

has been sold, or charges have been made for

technology which has not been transferred, or the technology transferred was simply not

appropriate for production for the specific

size and characteristics of the domestic

market. This would include the relative

availability of the other factors of

production, or support items which the plant

will require to function effectively (e.g.,

power and other utilities, roads,

communications, etc.). Finally, many

conditions have been imposed in technology

contracts such as export restrictions or obligations to purchase raw materials,

supplies, or parts (tied purchases) from the

technology supplier. It is sometimes alleged

that these obligations include prices higher

than those prevailing in the international

market. This latter has been mentioned

particularly in transfers involving

affiliated companies. These abuses, and it

is admitted by reasonable spokesmen for many

TNEs that there have been occasional abuses,

have led to extreme reaction in some countries

.

On the other hand, the supplier enters the

negotiating arena with its own set of

objectives. Some of these are in direct

conflict with the objectives of the host

country, and they include the following: a fair return on the investment in the R and D which has produced the technology; an increase in the market share or a new entry

in a market; protection of the property

rights in the technology, including patents,

trademarks, and most particularly unpatented

know-how, which technology suppliers also

view as industrial property. It was interesting for me to view the Brazilian

experience. It should be noted from the

earlier presentation that Brazil did

not reflect acquisition through the
license of unpatented know-how. It is well

known in this country that many developers of

processes, including chemical and

petrochemical processes in particular, do not

obtain patents for these processes, because

they feel that protection through

confidentiality agreements is more effective.

Thus, the absence of a policy to acquire this

kind of know-how through the licensing of

processes, which is the case in Brazil, and

it is reflected in their laws and

regulations, in my view could have serious

long-term implications. And finally, along

with the others, objectives of the

suppliers also include the necessity to

control and maintain the standards, the

quality level, and reputation of the supplier

in the international marketplace. In this

context, I was particularly interested in the

quality control presentations and discussions

this morning.

5. THREADING THE NEEDLE

The greatest amount of technology is

transferred as an integral part of the

foreign capital which flows into developing

countries. This is generally seen in the

form of direct foreign investment. When gaps

exist in the technological capacity of

developing countries to produce growth and

expansion, including more employment and

creation of indigenous technology, then

foreign technology must be acquired to fill

those gaps.

Reference is occasionally made to the

Japanese Model of industrialization.

The leaders of that government embarked upon

an organized course of action to repair and

rebuild their economy after the Second World

War. They established long-term objectives

and goals and created the necessary

infrastructure to support the accomplishment

of such objectives. At some substantial

initial cost and investment, they have

accomplished a modern miracle within the last

couple of decades. They are now leaders in

technology development in many areas well

known to all of you.

The Japanese Model may or may not be

appropriate in any other country, but one lesson is useful from their experience. Some

developing countries today are participating

in efforts to enact increasingly restrictive

laws and regulations controlling technology

transfer, which have, in many cases, served

to reduce the flow of essential technology

for the industrialization process of those

countries. The Japanese did not restrict

such flow at all. In fact, they did

everything to encourage such flow to

facilitate development of their industries to

the level at which they could be competitive

in the international market. Today, they

excel in many areas, and are the leading

producers of technology in certain specific

i ndustries.

Negotiators must become sensitive to all

these constraints which are present upon

entering the negotiating arena. A

negotiation for a technology transfer,

whether by license agreement, with or without

a joint venture arrangement, technical

assistance agreement, turnkey project for a chemical processing plant, direct foreign

investment in an automobile engine or transmission plant which would create a multiplier effect on the economy with the

resultant emergence of secondary and tertiary

suppliers for the manufacturing plant, or any

other form, cannot be viewed in negotiating

terms as a win-lose contest. Since a long-term mentality and relationship are required for successful transfer, the

negotiations must be looked upon as a win-win

situation. There must be mutual benefit, and

there must be commitment by both parties to assure successful transfer. This means that

the host government must make a commitment to

simplify whatever bureaucratic obstacles may

ordinarily delay the completion of this

plant. As noted earlier, the TNE must make a commitment to the economic and social

development of the host country, in return

for a satisfactory profit. The goals of each

side should be explicitly defined,

recognized, and accepted at this stage in the

negotiation process. It is only at this

point where the complete and candid

communication of such objectives can facilitate the abilities of each party to

achieve its long-term objectives.

The negotiator must obtain a commitment from

higher levels of decision makers in his own organization, who will not be directly

involved in the negotiating process. In recent years, with increasing efforts to

213
regulate and control the transfer process,

the negotiator's role has become more

critical. All of the tension that has been

created around these efforts may create

strong pressures on the negotiators to

accomplish objectives, which may be viewed more as political than as technically related

to the successful execution of the

project, the successful acquisition of

technology. In order to expand the knowledge

base for industrialization, negotiators must

resist these political pressures, whether in

specific contract negotiations, or international negotiations for codes of

conduct, or the like. The rhetoric must be

left to the politicians and must be removed

from the negotiating rooms. Understanding,

not rhetoric, is the most direct path to the

creation of the kind of relationship which

will result in effective transfer of the

technology, and mutual benefit for both

parties.

DISCUSSION :

Mr. Owino-Okwero (Kenya Bureau of

Standards)

What I want to get clarified concerns the

restrictive laws that you feel are applied

by developing countries, which cannot create

a condition like the one you described for

Japan. I found that rather signficant. Can

you just amplify it a little bit, so that we know which laws we don't need to apply and

which laws are acceptable, because allow me

to say for my country, we have laws like, we need to participate in more joint ventures

coming in as a country, through a governmental organization, which does 50%

financing, etc.

Mr. Radway:

I would be delighted to do that. Some of my

clients, suppliers of technology, would

say, the best laws are no laws. It is not

the law that is going to encourage economic

development. If a need is determined to

enact a legislative structure, laws and

regulations or policies, in order to provide

a climate of predictability and certainty,

which is usually spoken of as being desirable

for private foreign investment and technology

suppliers, then I would suggest that a

21

balance be struck. I am not saying that

1some j of the laws that have been enacted in the

last decade, in particular, are totally

irrelevant. I think that the majority of

Transnational s today recognize the benefit

for host countries to screen and control and

regulate to some degree the transfer of

technol ogy

.

However, in the enthusiasm and the eagerness

to control the source of technology, as opposed to the process or the acquisition of

technology, a lot of laws were enacted which

prohibit certain kinds of agreements or certain kinds of clauses in agreements.

Nearly three years were spent at UNCTAD

negotiating the so-called restrictive

business practices. The group of 77 tabled a draft of 40 restrictive business practices,

that in their view should be prohibited from

any agreement involving transfer of

technology. But in fact, a lot of these

so-called restrictive clauses provide

guarantees. Tied purchases, while allegedly

restricting the recipient of technology to one source, at the same time guarantee that

recipient access to a particular quality

level of supplies and raw materials, and

personnel, as long as the prices are those of

the prevailing international market. Note

that kind of a provision has in fact recently

been written into certain laws of the

developing countries, where previously more

restrictive laws were reversed.

In other words, what I am saying is, a balance should be struck. A lot of the

rationale behind the so-called restrictive

business practice discussions, or rhetoric,

related to the antitrust laws existing in the

United States, the European Common Market,

and Japan. Well, these laws are highly

sophisticated economic principles, based on application in highly developed, highly

sophisticated marketplaces. These laws are almost totally irrelevant for application in

far less sophisticated marketplaces, in less

industrialized societies. In addition, in

the process of economic development, it is

very often essential to erect protective

barriers, to promote investment in new industries. So, protection of certain kinds

of new investments -- pioneer industries, as they are called in the laws of many countries -

is essential to create industrialization in

certain sectors. Well, this kind of
protection and the promotion of competition, mutual interaction to facilitate the longwhich is the purpose of antitrust laws, are term compatibility mentioned earlier.

totally inconsistent. So the idea of

referring to the antitrust laws of the United

States and the EEC, is in my mind, really

just another set of confusing, irrelevant

issues.

A balance can be struck with the requirement

for screening of technology transfer

agreements, for registration if that is

desired by the host government, in order to

monitor balance of payments and areas where

abuses may occur, but flexibility must

be written into the law and into the policy

of those people who will be applying the law.

Now this has taken place in certain countries

with these kinds of laws, and their

experience with the flow of technology is far more attractive, far better than other

countries, which do not have this desired

degree of flexibility. You can put

guidelines around royalty rates, and levels

of technical assistance fees for different

kinds of industries, but you cannot cast them

in concrete, because there are always

exceptions where technology is unique. Some

laws have been written for very ordinary

technology, almost public domain technology,

and then those laws are applied to unique

technologies. It just doesn't work. The

rule of reason, a flexible approach, has to

be written into these policies, in order to

be able to attract the desired technology and screen out the excesses.

Laws may require a joint venture between

foreign technology suppliers and local interests, and the latter may be a government

organization. There may be rules with

respect to percentage of financing from

local sources, and with respect to nationals

employed in both managerial and production

capacities. What I am suggesting is that

such laws, if they are a political requirement, must contain the flexibility to

structure the entity to be able to breathe

and live, not to choke and die. If the law

requires local participation, then sufficient

resources (economic and human) must exist in

the specific sector and level of sophistication to be capable of blending with the

foreign component to form a viable organism

capable of working efficiently to meet the

objective. There must also be sufficient

215
PAPER 7.4 - A PUBLIC INTEREST POINT OF VIEW OF SCIENCE AND TECHNOLOGY FOR DEVELOPMENT

James Gudaitis

Center of Concern

Washington, D.C.

In a way, I feel somewhat out of place here,

representing a public interest group, in the

midst of so many people who are specialists

in a specific area. I feel somewhat like a developing country, if you will excuse the

analogy, talking to the industrialized

countries of the world. I have very narrow

or am just beginning to develop a technological infrastructure, and I look upon

you as having a very extensive one. And yet,

at the same time, I feel like I can contribute something. I have expanded and

developed other areas, maybe, that with

limited resources I am still interested in

expanding and developing; whereas you

sometimes, with your technology, which seems very attractive, may be offering a route that

I do not necessarily want to proceed along.

The potential of technology, as it now exists, is rather unlimited, as has been

said, and it seems like the only things that

are restricting it at this point are the

political will and possibly the limitations

of resources. Now, there is no doubt that

science and technology do have positive

benefits: increased life expectancy,

increased economic growth, etc. But at the

same time, the overemphasis on technological

growth has given rise to serious imbalances

within the global perspective and to problems

in certain areas.

Three of these problem areas are in

development, where we see unemployment, urban

congestion, and other drawbacks; in ecology

where we have pressure on and wasteful use of

limited resources; and in security, where an unnecessary amount of resources is being put

into military expenditures, the channeling of

these resources into armament production.

Now, the problems caused by these imbalances

are further complicated by three other

factors: the increasing population, the

recognition of a finite limit of resources,

and an awareness of a growing global

inter-rel atedness.

One of the things that has been recognized at

the UN is an expanding concept of

216

development. It no longer is limited to

economic growth, but is beginning to include

such things as man's cultural diversity and a more social aspect of development. One of

the things we must continually remind

ourselves about with this perspective, is

what types of goals are we actually looking

for? What is it that we want technology to

do? And to this extent, we must realize that

technology is not an end in itself, which

this conference may almost -- with, you know,

little attention being paid to anything else

-- seem to indicate, but that it is a means

to an end. And at the same time, technology

is not the only means to the specific goals

of a country, but is one of many. There

would be other alternatives. Now, granted

the complexities of things, like improving

the quality of life, which may be a desired

goal by a national country, it will be

necessary for us to expand the economic

growth, but at the same time we must be

willing to consider the need for a country to

want to emphasize cultural diversity and

other such things.

Now what I want to do is to only mention some of the questions that would have to be

raised, when we look at the development of a technological infrastructure, and technology

transfer. One of these would be, "How does

this, as a developing country, influence my

self-reliance and autonomy as a country?

What are the future implications of the

transferance of this technology? Will it

affect the ecological systems of my country?"

One of the things that is being discussed,

and it is a very complicated issue, is the

exportation of hazardous technologies from

the more developed countries to developing

countries, whereas they have a desire for a specific type of technology, which we have

found hazardous and have limited in our country, but by exporting over there we seem

to be able to get away from a lot of things.

Another thing would be the opportunity for

employment and income distribution. Many of

the arguments for appropriate technology have

fallen under the guise of "better, more
equitable distribution of resources, an.d employment for many". Now, what type of

technology is appropriate for a country is

dependent upon what that country's specific

goals are. But among those, it would seem

like you could have a high technology

approach as long as you consider the

implications for employment of the people and

the income distribution of those resources

and the benefits paid by the adoption of a certain technology.

What types of security are needed? Is the

imbalance or overemphasis of resources into

armaments having a detrimental effect on my

country's production? And is it taking away

from some of the social goals and the meeting

of basic human needs that I would think

necessary?

Finally, am I allowed as a country to develop

the type of technological infrastructure that

I would find adequate? Or have I decided to

buy a Western approach, the entire Western

approach to high technology and things like

that? My emphasis again would be on cultural

factors.

i

I would like to close by saying, using again

the analogy that I am a developing country,

that I have gained a lot by being here among

people who have a very specific interest in

the development of high technology. At the same time, because of my own desire for

possibly other aspects of what I consider a more holistic approach to my development, I think maybe my emphasis on cultural diversity

may affect your own interests in where you

want your development to go, so that you do

not just emphasize economic growth.

DISCUSSION :

Mr. Baron:

I think that Mr. Gudaitis has spelled out

very well the point that was made earlier by

other speakers, of the need to look at

technology in terms of people in the country

and the objectives of the country, and I know

many developing countries today, in UN fora

and others, are saying very similar things.

Professor Lieberman (University of

II 1 inois)

I have been teaching for several decades,

technology students, engineering students.

And at the University of Illinois, we have

participated in "Earth Day" and several other

kinds of "Days", since they began with the

local politicians, and students, and others.

What we have observed, is that as you look

around the audience, it

is very difficult to find black students,

Iranian students, Israeli students, Indian

students, Bangladesh students, or any

students other than people from the United

States, mostly, who have "made it", and can afford to look at some of these problems.

I think that you are pointing out correctly,

that if you look at them from the beginning

before they get frozen in the wrong way, they

will be easier to handle. However, I think

it is very difficult to talk to people in the

developing countries about situations -- important situations, I agree --- that are of

fairly low priority at the time -- and I just

don't know how you do it, really. You can't

go in and say, you had better not do it this

way because you will be like we were, since

they will say, "Great, I want to be like you

were. I want two television sets and an automobile, and then I'll take care of the

pollution, just like you did. Don't tell us that we should not have all of these

wonderful things."

So you are projecting what you now think is

important to project, what you hope these

countries will say to you. I think you will

be disappointed. I think that most of them

will want to outboard the full dinner pail,

before they say the stream is dirty. And

that's Japan. I really don't think that

right now many of them think that you are presenting it right. They are not negative -- they really don't know what you are talking

about. You are talking a language that has

no meaning for them at their stage of

development.

So I just wanted to get other comments,

perhaps, as to whether my experience is

indeed unique, in finding that there is not

that total amount of agreement that these

other issues can be considered important, at

this time, in their development. They are back at the time, in terms of our own development, where a black plume coming out

of a smoke stack (as in 1938) was considered

success: it was generating jobs. Now, you

and I look at this black smoke stack and say,

"That's terrible."

217
Mr. Gudaitis:

I would only like to say that this requires

greater participating by all concerned. In a lot of the developing countries -- I hate to

generalize -- it seems like sometimes it is

the governments themselves that have bought

our desire for technology and

industrialization. But sometimes, if you go

into the villages themselves, they have not

yet been inculcated into the Western

ideologies, and our public relations job, and are willing to maintain some of their own cultural traditions. And again, I would just

like to say, what is needed is the

participation of all involved, and in any

case, we would like to caution them in these

areas.

218
SECTION 8 - SYNTHESIS AND PROJECTION - GUIDANCE FOR THE U.S. IN THE UNITED NATIONS

CONFERENCE ON SCIENCE AND TECHNOLOGY FOR DEVELOPMENT, AND BEYOND

Chairman: Dr. Edward L. Brady, NBS Associate Director for International Affairs

A. Dr. Edward L. Brady:

We have had two days of talks and

discussions. Now we want to see what sort of

instant conclusions we can come to as a result. Of course, Proceedings of this

seminar will be printed and will be available

for study. We hope that they will have some

impact on the United States positions for the

UN Conference, and certainly, we expect the

Proceedings of these discussions to have an impact on the program that we at NBS expect

to continue, hopefully, indefinitely into the

future.

First, let me recall for you what our objectives have been in this Seminar.

First was to examine some elements of the

infrastructure for technology for

industrialization throughout the world,

particularly in those countries that have

been successful in the development of a technological industry. So you undoubtedly

noticed that there was emphasis in the talks

through these two days on the experience of

those countries that have been especially

successful, such as Korea, Brazil, Mexico,

and Singapore.

Second, we wanted to see how the problems of

developing a technological infrastructure

appear through the eyes of people in those

newly industrializing countries that have had more recent experience than we have had in

the United States. We wanted to see what

lessons we could learn, from the examination

that people have made of these problems, and

of the thought that people from other

countries have put into analysis of their own problems of the infrastructure.

Finally, we wanted to ask ourselves, what

should we do about it? What should we in the

United States do about the problems of a technological infrastructure in the United

States and in the industrializing countries,

and especially what should we do about it for our preparations for the UN Conference on Science and Technology for Development?

21

B. Dr. Howard I. Forman (Deputy Assistant

Secretary of Commerce for Product

Standards)

:

Most of what I could say will be in the

Proceedings. Rather than repeat some of the

things that I have heard, I would like to do

something else, which will reflect I am sure

a considerable amount of what I have heard

these two days. Then I want to add to it some of my personal experiences which I think

might be responsive to the purpose of this

particular session, which is to give guidance

to the United States in the United Nations

Conference on Science and Technology for

Development.

First of all, I would like to borrow a page

out of Mr. Radway's self-introduction, for

just a moment, because I will have to qualify

myself as a sort of a witness of what I am going to say in part of my remarks. Briefly,

I guess this is my forty second year past

undergraduate school, half of which time was

in government, half in the private sector.

Until 2 1/2 years ago I was with a multinational company in the United States

for some 20 years — patent counsel , international corporate counsel, and a few

other things; prior to that, a chemist,

laboratory director, and that sort of thing.

First, a comment on some of the things I have

heard repeatedly from a number of the

speakers, which reflected in my own mind answers to some of the things that have been

troubling me over the past year or so since I have been in Washington, and have been

attending some of the meetings that

Ambassador Wilkowski has been holding. When

I ask myself, Why is the United States

involved in this great exercise? What is the

importance to the United States in doing it,

and what is the importance to the

industrializing nations? (I don't like the

term "developing nations", because as Dr. Baruch pointed out, we are all

developing. The United States can send a man

to the moon, but we still have to develop.

And everybody else is doing that. So if I
may, I will just refer to them as less-industrialized and more-industrialized.)

Why are we interested in going into this

Conference? I heard the answers here. I heard them from Mr. Bel ford. I heard them

from Professor Somer. And heard them from

our friend from Kenya, Mr. Owino-Okwero.

These three gentlemen gave me the answers

that I was looking for.

Mr. Belford said, let's be candid*. Nobody

is interested in giving something away for

nothing. The United States government cannot

compel the companies and the individuals in

this country, who have acquired and developed

technology at great personal expense to

themselves and their investors, to give away

that technology to others. They can only

encourage, but they cannot compel , not under

our free enterprise system. So there has to

be a reason why, and one of the reasons is,

there is benefit to be received by those in

the United States who have that technology to

transfer. It's a profitable venture for them

to do it. It's a two-way street. I don't

think there is anything wrong with that. I think this is a very proper way to do it, but

I was very delighted, actually, in hearing

Professor Somer make the same point. He made

the point that the nations who need

technology should not expect it to be given

as a one-way street. It is not normal for

people to work that way. I think he is being

pragmatic. I believe it would be well for

both sides of this transfer to keep that in

mind. It is the best way to form a partnership that works.

My friend from Kenya made another point. If

I may, it sounded like a plea, and I think it was a proper one. He said to the United

States - "In doing what you are proposing to

do or are involved in doing, you are doing

something for humanity." And I am proud of

that. And I think we all should be thinking

that our country is doing this, not entirely

for selfish reasons, although I do not deny

them. They should be there. But also for

humane reasons. Because the more we do good

for others, the better we do good for us, all

of us. Because if we uplift the nations of

the world, I think everyone stands to

benefit. I think that it is very proper of

you to call that to our attention. And it

should be one of the motivators in going to

the Vienna conference, next year.

Dr. Fusfeld made a point repeatedly. I know

Dr. Fusfeld, we started out in life together,

back in our early government days, so I know

how he thinks, and how he worries. He is

very practical. He said over and over again,

that those nations that are interested in

acquiring technology should learn a lesson

from the growth of corporations in the United

States, and he might as well have said, in

Germany, and in Japan, as well, because the

lessons are identical. The same techniques

that have been used to create our great

corporations, wherever they are in the world,

are the same techniques that should be

employed in the countries that wish to

develop themselves beyond their present state

of industrialization. You can prove it in

management, prove it in financing techniques.

A lot of these things have been referred to over and over as "infrastructure". All of

these things have to be developed in a very

practical way. And you don't just have them

happen. In other words, I think I heard

Mr. Radway and some others say, one of the

problems is, that some of the people in the

nations that are looking for technology are thinking that they should demand it, that

they can get it by changing their laws:

they will acquire it, and they can use it.

Frequently they are not ready to use it. They

haven't prepared themselves properly. They

need more help to prepare.

Now, I will cite you one of several

experiences I have had, which I think might

teach a lesson. Several years ago, I was a member of a group of the Licensing Executives

Society that was invited to Mexico. We

talked with a quasi -governmental

organization, somewhat like our National

Science Foundation. It was a time when

President Echeverria was introducing new legislation regarding intellectual property

transfer'. We were being asked if we saw any

problems. As this discussion was going on, I asked a question that I think sort of turned

that conference upside down. I said, you

know, if I were a Mexican, I would do exactly

what you are doing. Except that I think you

are doing it the wrong way. Because I think

you are going to harm your country, rather

than help. And of course they asked why? I said, well, you are going to impose restrictions, e.g., a 4% maximum royalty that was imposed, or proposed to be imposed; the fact

220
that you say we'll pay royalty, come down,

leave your technology here, let our people

use it, and then, that's all, we don't want

you to just stay here. I heard that over and over again. I said, well, there is only one problem. If it is the General Electric

Company, they've been in here so long and

they have so much invested, it is not good

business for them to leave. But many other

investors, whether they are U.S., or from any

other country, where their capital is limited

for investment, they will choose to look to

other countries rather than to invest in a country that follows policies such as you

have proposed here. That is your danger.

So I think that that is the fear or the concern that I have, that in this course of

transferring technology, I hope the countries

that are looking for it and wish to receive

it, and to whom we wish to give it, won't

kill the goose that lays the golden eggs.

C. Dr. Lee Kum Tatt (Chairman, Singapore

Institute of Standards and Industrial

Research)

When I look around me, I feel that I have

been handicapped. Paraphrasing is not one of my specialties. So, since I do not always

want to be a born loser, I will do something

that I think I am good at: interpretation of

silence. Sometime ago I met the top man of

an aid-giving agency. He came

to Asia, and he said, "You know, I thought

everything was alright, how come this did not

work out?" Then he said, "Yes, you know what

happened'." I said, "It is not the English

that you have to understand. It is the

silence that you must learn to interpret."

So today, paraphrasing of the English that

has been spoken during these last two days, I will leave to my colleagues. I will try to

interpret the silence that has not been

spoken at this Seminar. And if my colleagues

do not agree with me, please speak up if I interpret you wrongly.

First, I think it is obvious that we have the

feeling that there is a ready keenness in the

United States, as reflected by this Seminar

and by the speech that was given to us last

night by the Ambassador. So we never

question the honest intention to do something

for the world in the UN Conference in 1979.

We believe that there is a mutual interest.

We must also believe that we should do

things, not on a one-way street, but to

benefit both sides. But as our friend the

lawyer said, "We have to be candid'." Now,

that is not so easy for us to do. What is

candid to one person is not candid to

another. It may be a rudeness on their part.

And we create a lot of misunderstanding that

way.

Maybe, in the developing countries, the

agents of change are the bureaucrats. In the

developed societies like the United States,

the agents of change are in the private

sector. I think we recognize this

distinction while we deal with those people.

But our mentalities are so different, our motives are so different, and the rules by

which we play our games are also very

different. So when we say we are being

candid, we mean different things. Maybe we have to learn to understand each other. And

of course, in the developing countries, as our friend Mr. Radway says, we are not on an

equal bargaining basis. And when one tries

to be candid, you can give the impression

that you are trying to force things down the

other guy's throat. And that is not very

healthy. Perhaps we should learn to do

things in a more tactful way.

So I think from the developing countries'

point of view, the points have been taken

that we should as government, and as advisors

to government, help the multinationals to

achieve part of their objectives, and to

create suitable climates for these people to come and work with us. We also recognize

that many conflicts of interest, and the

solution of these conflicts, depend very much

on the priorities which each and everyone of

us and our governments place on our goals.

Whether it is on the social side, on the

employment side, on the whatever side, we so decide at a particular point in time.

Another point that I would like to make is

that I think there has been a lot of emphasis

placed on manpower development. Technology

transfer. I do feel that technology resides

only in human beings, not in licenses,

papers, and so on. So, we can only transfer

221
this technology from one human being to

another. And if there are too many cultural

differences, so that we cannot even understand each other, then I don't see how

technology can be transferred. We can transfer physical facilities and whole

plants, including the marketing and know-how.

But once we have a misunderstanding, the

plant that was set up in one month, can be

dismantled in one week. Of course, that will cause a lot of disruption in the developing

countries, and create a lot of problems for

all of us. So I think that it is very

important, that maybe we should not only have

schools for NBS to teach metrology, but also

the social sciences of understanding each

other. Trying to interpret the other guy's

silence. I think that maybe we should train

people to negotiate.

I was involved quite some time ago, on a U.S.

panel to form an International

Industrialization Institute. One of the

things that you had in mind was to train some people to negotiate - at least on the legal

terms, which we can understand. I don't know

what happened to that proposal . I had my

misgivings. The name itself was bad. It was called I-cubed (ice-cube). And it remains in

cold storage, and I think it is still in cold

storage, is that right? But it would be

something useful if we could train our lawyers to negotiate on equal terms.

Coming back to transfer of technology, the

subject of QC, and so on, I think it is a very important subject, and we should place a lot of emphasis in getting something

positive. I think many of the developing

countries do feel tired of meetings and

meetings to plan for things which will happen

25 years later. For developing countries, to

keep alive — to keep the so-called body and

soul together — we need something to live on and something to live for. When we send our scientists over to America, in an affluent

society, there is no survival problem, they

only go for things to live for. But when

they come home, they have nothing to live on,

they expect the other guys to produce it for

them. So I think we have to have a proper

balance of something to live on and something

to live for. In most of our developing

countries, I think the emphasis should be more on creating jobs in a quantitative

aspect, to start off with, and after we have

achieved a certain amount of success, maybe

we should go to the qualitative aspect.

So that brings me to the last problem, the

last question, What stand should the U.S.

take? I don't think you should take a simple policy or one policy for all, because

there are so many levels of development. And

perhaps, an approach would be, how can the more developed help the less developed, and

so on. And the gap between us will be

smaller, and in this way if we can find some solution, or some understanding, I think that

we will be in good health.

D. Dr. Albert Small (Office of Science and

Technology, U.S. Department of Commerce):

First of all, on behalf of the Department of

Commerce, Assistant Secretary Baruch, and

Deputy Assistant Secretary Wolek, I would

like to thank and congratulate the personnel

of the National Bureau of Standards who

organized this Seminar, and the participants

from this country and abroad who made it such

a success. Our goal was to bring together

people with hands-on experience in this

field, and I think that this goal was impressively achieved.

I would like to leave the discussion of the

details of our meeting and speak just to this

one issue that the Department of Commerce

considers of particular importance -- the

achievement of sound, rapid industrialization

by the Third and Fourth World countries, as a development tool. Let me preface this remark

by saying that industrialization is

complementary to progress in all other

elements addressed to basic human needs -- health, education, housing, population, and

the continuing progress in agricultural

production. I believe that our representatives from the developing countries

agree that full development cannot take place

without the growth of industry. In some cases developing countries have already made

impressive strides in the achievement of this

goal. In other cases, industry is still in

its embryonic stages.

222
I believe that there is an appreciation of

the two types of industry needed for

development: industry to meet basic consumer

needs within the country, and industry that

makes use of the country's labor and material resources to export and pay for the goods the

country needs to import to continue on its

development path. Each of these types of

industry has its own infrastructure

requirements, both physical and intellectual,

and we are here dealing with some of the

intellectual requirements. There is a need

for technological absorptive capacity, so that a developing nation can select the

technological resources that it needs from

abroad and can adapt technologies to the most

efficient satisfaction of its needs.

These ideas have already been elaborated in

various papers and studies prepared for the

Coordinator of the U.S. preparations for the

UN Conference on Science and Technoloq.y for

Development. I believe that our meeting has

helped to pinpoint and clarify many of the

issues related to the provision of a technological infrastructure for

industrial ization.

I want particularly to express my

appreciation to a number of the participants

who gave me their time in two special

meetings, that we had to consider some ideas

on industrial technology formulated here in

the Department of Commerce. In these

meetings, I substituted for Dr. Wolek. Very

briefly summarized, the proposals to which I am referring, we call "technology for

development". And they involve surveying a developing country's industrialization needs

and goals, through the use of a joint team

from the industrial and industrializing

country, of a multi-disciplinary composition.

Emphasis is placed on analyzing the

industrial opportunities and problems,

pin-pointing what Dr. Baruch calls the

change agents, and then following through and

implementing the team's recommendations,

through various technology transfer

arrangements

I will not take your time to detail our discussions, but I can summarize them by

saying that the participants expressed a genuine interest in novel approaches to

promote industrial technology. They also

added a number of highly useful thoughts of

their own. They encouraged us to look into

further opportunities for technology transfer

involving the private sector, including joint

ventures. They pointed up the problems, for

example, in developing local sources for the

components that multinational firms may be

willing to assemble in developing countries.

At the same time, they cautioned us that

technology transfer — and this is what

Dr. Lee has just been talking about — has

its people-to-people elements. And any plan

that does not recognize this and take it into

account, can waste a precious opportunity.

We will commend these points to Ambassador

Wilkowski and her staff, represented here.

To the extent that these ideas may be

reflected in U.S. participation in the UN

Conference, we don't believe they will

represent any attempt by the United States to

represent itself as a sole source of the

technology mentioned. Indeed, they are the

ideas that can be shared by all the

industrial countries in their desire to help

the industrializing countries. And just as Dr. Baruch has stated, that we are all at one stage or another of industrialization, so many of the developing countries are also

highly industrialized by now, and they may

wish to join the United States, Western

Europe, and Japan in offering their

assistance to other countries, that still

have further to go along the path to full

industrialization.

E. Mr. James A. Stromayer (Deputy U.S.

Coordinator for the UN Conference on Science

and Technology for Development):

I would like to start out by renewing the

thanks that I am sure Jean Wilkowski

expressed last evening to all of those

responsible for this Seminar, which I think

is going to be very useful and productive. I must say, I feel somewhat disadvantaged in

trying to sum up, because I missed

yesterday's session, but just being here

today, I think I heard so much said that was very wise, that I am sure that I had been

here two days, I would feel even stronger

about it.

223
On the other hand, I want to reiterate

quickly that the more I listen to people that

do know something about this subject -- economic development -- the humbler I become,

and the more I feel and appreciate the

complexities of the development process and

the kinds of efforts that are required if we

are to make it work better. I might say that

I was especially impressed by the two

presentations by Dr. Lee that I was able to

listen to, and let me just give a few

personal reflections on some of the things he

suggested. It seems to me he suggested at

least 36 points that could occupy us in long

sessions in a seminar, for many days to go,

but two or three of the things he said made a specially strong impression upon me.

First of all, let me refer to this phrase

that we all use so knowingly, "transfer of

technology". I have felt for a long time

that there is something wrong with it, but

have never been able to identify what.

However, what I have heard here today

increases my confidence that there is

something wrong with it, and gives a different dimension to it. First, I think

the notion itself implies some sort of

simplistic transfer of some sort of device or knowledge from Point A to Point B, and that

it works at Point B somewhat the same as it

would at Point A. This, I think we all

agree, is terribly simplistic and doesn't

even begin to suggest the complexities of the

subject.

But perhaps more important is something that

Dr. Lee said in ticking off the various

characteristics of the situation in Singapore

that struck me. He said that the philosophy

and the attitudes of the people are of great

importance in the development process. And

this, it seems to me, is key to our considerations, and probably key also to some

of the various serious and grave mistakes we have made in the past. The notion of

technology transfer suggests a process going,

in the old jargon, from donor to recipient.

And this is a basic misconception of the

process, at least if the model that Dr. Lee

presented to us is correct. And that is,

that it is a basic requirement of each

society itself to define what it is and what

it wishes to become, and what kind of society

it should be in the future. And this is the

!

notion of philosophy and attitude which he I qua stressed. jut

Sti The second point is that once a society has ") decided what it wishes to become, it has to

decide how to go about it. And this involves tin the question of choice of technology. So

that these are very, very heavy requirements

that are on the shoulders of the developing

countries, something that we in the developed in world were rather slow in learning. In the

olden days I think we used to think that we could just transfer these things to the ;;| developing countries, they would adopt them,

and somehow develop along the same lines that

we have. But in fact, the process starts

there, as it were, defining what sort of

society the developing countries wish to

become, then choosing the technologies that

are best suited to do that.

And here I get to a point raised by

Dr. Qurashi , this morning, when he said that

the stress we place on self-reliance relates

very much to the selection of technology.

And many developing countries at this stage

of development simply do not have the people — the trained scientists, technologists,

engineers, technicians -- who can competently

and rationally make these choices. And that

it is these kinds of people that most of the

developing countries need more of.

Well, again, this suggests something to us. That the developing countries, having decided

what they wish to become, and the kinds of

choices that they want to make in becoming

that sort of society, could use some assistance, to be defined by them, in

developing human resources and institutions

that are better able to make these choices in

a much more self-reliant way than they can now. This suggests to me, at least,

something that ought to be fundamental to our

own preparations, and that is, that we ought

to try to organize ourselves to be able to

provide those kinds of educational and

training services, perhaps more efficiently

and more effectively than we have up to now.

Now this relates, too, to the role of an institution like the National Bureau of

Standards, which as an American, I view as one of our genuinely excellent institutions.

When we think of the NBS we think of high

224
quality work. And, my hope is, that to the

extent that metrology, quality control,

standardization — which are sort of the

hallmarks of this institution — to the

extent that the developing countries

themselves feel the need for institutions of

this kind and expertise of this kind, that we

in the United States will be able to respond,

again, perhaps better than we have up to now.

In some of the discussions that I have had

with Ed Brady, my impression is that there is

a limitation on the amount of resources that

NBS can devote to this activity, and it would

seem to me that one of the things that ought

to come out of this Seminar and work into our

own preparations for the Conference would be

that if there is indeed a greater demand for

this kind of service and this kind of

institution, the U.S. Government ought to

give very serious consideration to having

sufficient resources at hand to provide these

services.

Let me just wind up with three or four other

remarks. What I have tried to say is that

the developing countries have to define for

themselves what their needs are, and we have

to see whether we can respond. And not

vice-versa. The second thing is, it seems to me they have identified to us certain needs

in human and institutional development, to

which we can relate, and hopefully respond

better than we have in the past.

Now, in terms of the state that we have

reached in our own preparations, I would just

tick off sort of three general orientations

of policy, at the risk of repeating to some extent what Ambassador Wilkowski said last

evening. The first conclusion we have come

to in the preparatory process thus far,

anyway, is that it would seem that the

overwhelming need, the overwhelming demands,

even, of the developing world, to the extent

to which you can generalize about it, is that

they need and would like help in developing

their own indigenous capabilities in science

and technology, and in the whole range of

activities that relate to science and

technology, right from the creation of

technology to the development of products to

the marketing of products, and to managerial

expertise, generally. It is in this area,

that we believe the developing countries are

saying, this is the area in which you can

help us. And we would like to organize

ourselves better to do that.

The second point is, as I am sure has been

raised here yesterday -- I heard it once or twice today -- there is the President's

proposal for a Foundation for International

Technological Cooperation, which would try to

organize and focus U.S. institutional

resources, including those from the private

sector, the Government, the domestic

agencies, the foundations, the universities,

the research labs, in a much more effective

and efficient way than we have done in the

past, and it is our very strong hope that

that institution can be in being before the

Conference.

Finally, I would like to get to the point of

mutual benefit, that many have stressed here

earlier, and that is, that we in the United

States recognize very much that there are a whole host of global problems, in the fields

of energy, food, health, education, and so on, which are problems that are no longer

susceptible of national solutions, they are problems which require international

solutions, they are problems which require

international cooperation. I think that we have got to get the word across to the people

of the United States perhaps better than we

have up to now, that these kinds of

cooperative activities with developing

countries are not a one-way street, but

indeed will yield benefits to us on our own specific problems. We approach the

conference in that spirit, and I just think

we have to do a better job of convincing the

American public that that is true.

225
Dr. Lee:

I would like to say, Thank You, to you and

your colleagues in NBS, who have organized

this excellent seminar, and the people from

AID and all our American friends who have

taken time off to be with us and to share

their views with us on how to build the

infrastructures and develop manpower for this

transfer of technology, to input into next

year's Conference of the UN. I think I am speaking on behalf of my colleagues from the

various countries, that we have enjoyed

ourselves here, and I would like to say Thank

You for all the wonderful arrangements you

have made for us. Thank you very much.

Dr. Brady:

Well, let me thank you, too, Dr. Lee, for

those remarks. Really, there are so many

people here that deserve thanks for the

contributions that they have made to these

two days, that it really is impossible to

list people by name, or even by organization,

such as AID, the U.S. Coordinator's Office,

the Office of the Assistant Secretary for

Science and Technology, but specially I think we ought to thank those people, such as Dr. Lee himself, Dr. Choi, Professor Somer,

Mr. Coria, Dr. Qurashi , and Dr. Alberto, who

has already had to leave to return to Brazil,

who came especially for these two days -- people who have come long distances to give

us the benefit of their experience and their

words on these important things that we have

been talking about.

226
APPENDIX I. PROGRAM

NBS/AID UNCSTD SEMINAR

THE TECHNOLOGICAL KNOWLEDGE BASE FOR INDUSTRIALIZING COUNTRIES

October 16-17, 1978

National Bureau of Standards

Gaithersburg, Maryland

MONDAY, OCTOBER 16, 1978

9:15-10:30 I. KEYNOTE SESSION - Chairman: Dr. Ernest Ambler, Director, National

Bureau of Standards

1. The Objectives of the Seminar - Dr. Jordan J. Baruch,

Assistant Secretary of Commerce for Science and Technology

2. Expanding Horizons: Technological Knowledge for Industrial Takeoff

- Dr. Herbert I. Fusfeld, Director for Science and Technology

Policy, Graduate School of Public Administration,

New York University, New York City

10:45-12:45 II. MEASUREMENT CAPABILITIES AND SERVICES REQUIRED BY TECHNOLOGICAL INDUSTRY

- Chairman: Mr. Hamilton Herman, Industrial Consultant, Potomac,

Maryland

1. Survey of Measurement Needs of an Industrializing Country

- Dr. Jong Wan Choi, Administrator, Industrial Advancement Administration, Seoul, Republic of Korea

2. Experience of a Major U.S. Firm in a Newly Industrializing Country

- Mr. Rafael Coria, General Manager, Radiocommunication FM Operation, General Electric de Mexico, Mexico City, Mexico

3. Short Contributions:

Mr. Horacio F. Mazza, Instituto Nacional de Tecnologia Industrial,

Buenos Aires, Argentina

Ir. Gandhi, Yayasan Dana Normal isasi Indonesia, Bandung, Indonesia

Dr. Kailash Chandra, National Physical Laboratory, New Delhi, India

1:45-3:45 III. NATIONAL AND INTERNATIONAL STANDARDS THAT MUST BE SATISFIED BY INDUSTRIALIZING NATIONS - Chairman: Dr. Khaled Y. Al-Khalaf, Director General,

Saudi Arabian Standards Organization, Riyadh, Saudi Arabia

1. Meeting the Standards Requirements of Trading Partners

- Mr. Abdulla Fadlalla, Acting Secretary General, Arab Organization

for Standardization and Metrology, Cairo, Egypt

2. The International Standards Picture

- Mr. Richard B. Bel ford, Technical Director, Industrial Fasteners

Institute, Cleveland, Ohio

3. Short Contributions:

Mrs. Lorna Lawrence, Guyana National Bureau of Standards,

Georgetown, Guyana

Mr. Remon Halteh, Directorate of Standards, Amman, Jordan

227
Mr. J. E. Owino-Okwero, Kenya Bureau of Standards, Nairobi, Kenya

Mr. Thiagarajan Rajaraman, Tanzania Bureau of Standards

Dar es Salaam, Tanzania

Dr. Robert W. Middleton, International Organization for

Standardization, Geneva, Switzerland

4:00-5:00 IV. WORKSHOP - MANAGERIAL RESPONSIBILITIES AND TECHNICAL KNOWLEDGE

- Chairman: Dr. Robert W. Middleton, Assistant Secretary General,

International Organization for Standardization, Geneva, Switzerland

1. Management of the Acquisition of Technical Knowledge

- Professor Tarik G. Somer, Assistant President, Middle East

Technical University, Ankara, Turkey

2. Short Contribution:

Mr. Ridha Bouhalila, Laboratoire Central, Tunis, Tunisia

5:30 RECEPTION

6:30 DINNER - Speaker - Ambassador Jean Wilkowski, U.S. Coordinator for the United

Nations Conference on Science and Technology for

Development, State Department, Washington, D.C.

TUESDAY, OCTOBER 17, 1978

9:00-11:00 V. KNOWLEDGE REQUIRED FOR INDUSTRIAL QUALITY CONTROL

- Chairman: C. B. Butts, Supervisor, Equipment Engineering, Detroit

Diesel Allsion, General Motors Corporation, Indianapolis, Indiana

1. Establishing a Quality Control System in an Industrializing Country

- Professor Kenneth S. Stephens, Georgia Institute of Technology,

Atlanta, Georgia

2. High Technology Quality Control in a Newly Industrializing Society

- Dr. Lee Kum Tatt, Chairman, Singapore Institute of Standards and

Industrial Research, Singapore

3. Short Contributions:

Dr. Jose L. Tudor, Barbados National Standards Institution,

St. Michael, Barbados

Mr. Dong Ho Kim, National Industrial Research Institute,

Seoul , Korea

Admiral Jose de Castro Waeny, Instituto de Pesquisas Tecnologicas

,

Sao Paulo, Brazil

Mr. Abdel G. Suliman, Department of Standardization and Quality

Control , Khartoum, Sudan

11:15-12:15 VI. WORKSHOP - MANAGERIAL RESPONSIBILITIES AND TECHNICAL KNOWLEDGE

- Chairman: Miss Winifred Armstrong, Vice President, International

Management Development Institute, New York City, New York

1. Management of the Deployment of Technical Knowledge in Pakistan

- Dr. M. M. Qurashi , Director General, Appropriate Technology

Development Organization, Islamabad, Pakistan

228
1:15-3:15 VII. KNOWLEDGE REQUIRED TO ENABLE A COUNTRY TO ACQUIRE COMMERCIAL INDUSTRIAL

TECHNOLOGY - Chairman: Mr. Albert R. Baron, Interregional Adviser,

Development Planning, Department of Technical Cooperation for

Development, United Nations, New York City, New York

1. Experience of a Country with an Intermediate Economy

- Dr. Alberto Pereira de Castro, Superintendent, Instituto de

Pesquisas Tecnologicas , Sao Paulo, Brazil

2. The Role of Licensing Negotiators

- Mr. Robert J. Radway, Attorney, New York City, New York

3. Short Contributions:

Dr. James A. Slater, U.S. Department of the Interior, Washington, D.C.

Mr. James Gudaitis, Center for Concern, Washington, D.C.

Mr. Ridha Bouhalila, Laboratoire Central, Tunis, Tunisia

Dr. Khaled Y. Al-Khalaf, Saudi Arabian Standards Organization,

Riyadh, Saudi Arabia

3:30-4:30 VIII. SYNTHESIS AND PROJECTION - GUIDANCE FOR THE U.S. IN THE UNITED NATIONS

CONFERENCE ON SCIENCE AND TECHNOLOGY FOR DEVELOPMENT, AND BEYOND

- Chairman: Dr. Edward L. Brady, NBS Associate Director for

International Affairs

Dr. Howard I. Forman, Office of Product Standards, U.S. Department

of Commerce

Dr. Lee Kum Tatt, Singapore Institute of Standards and Industrial

Research

Dr. Albert Small, Office of the Assistant Secretary for Science and

Technology, U.S. Department of Commerce

Mr. James A. Stromayer, Deputy U.S. Coordinator for the UN Conference

on Science and Technology for Development

229
APPENDIX II. LIST OF REGISTRANTS

Dr. Khaled Y. Al-Khalaf

Director General

Saudi Arabian Standards Organization (SASO)

P. 0. Box 3437

Riyadh, Saudi Arabia

Dr. Ernest Ambler

Director

National Bureau of Standards

Washington, D.C. 20234

Ms. W. Armstrong

Vice President

International Management and

Development Institute

400 Central Park, West

New York, NY 10025

Mr. Gus Athan

Overseas Development Council

1717 Massachusetts Ave., N.W.

Washington, D.C. 20036

Miss Susana Avila

Mexican Embassy - Science Office

1101 15th St., N.W. Suite 505

Washington, D.C. 20005

Mr. Albert Baron

Special Adviser

Department of Technical

Cooperation for Development

1 United Nations Plaza

U.N. New York 10017

Dr. Jordan J. Baruch

Assistant Secretary for Science

and Technology

Department of Commerce

Washington, D.C. 20230

Mr. George Beckerman

U.S. Department of Commerce

Room 5087

Washington, D.C. 20230

Dr. B. C. Belanger

Chief, Office of Measurement Services

Measurement Services Division

National Bureau of Standards

Washington, D.C. 20234

Mr. Richard B. Belford

Technical Director

Industrial Fasteners Institute

1505 East Ohio Building

1717 East Ninth Street

Cleveland, OH 44114

Mr. Joel Bernstein

NAS - Ambassador Wilkowski's Office

Department of State

Washington, D.C. 20520

Mr. J. A. Birch

4205 Bradley Lane

Chevy Chase, MD 20015

Mr. Gordon Bixler

American Chemical Society

1155 16th Street, N.W.

Washington, D.C. 20036

Mr. Jacob Blackburn

Director, Office of Technology Policy

and Space Affairs

Room 7823, Department of State

Washington, D.C. 20520

Mr. Ridha Bouhalila

Director

Laboratoire Central

Montfleury, Rue Dr. Braquehaye

Tunis, Tunisia

Dr. Edward L. Brady

Associate Director for International Affa

National Bureau of Standards

Washington, D.C. 20234

Mr. Richard A. Brown

General Electric/TEMPO

777 14th St., NW

Washington, D.C. 20003

Mr. C. B. Butts

Supervisor, Equipment Engineering

General Motors Corp.

Detroit Deisel Allison Division

P. 0. Box 894 Speed Code P5

Indianpolis, IN 46206

Mr. Thomas R. Callaway

U.S. Department of HUD

Office of International Affairs

451 7th St. SW

Washington, D.C. 20009

Mr. Andrew A. Canellas

Economist

Small Business Administration

P.O. SBA-79-51

1441 'L' Street, N.W.

Washington, D.C. 20416

Dr. Kailash Chandra

Deputy Director

National Physical Laboratory

Hillside Road

New Delhi-10012, India

230
Mr. Wen-Kuei Chen

Ministry of Economic Affairs, Taiwan

c/o 4301 Connecticut Ave., N.W. No. 132

Washington, D.C. 20008

Mr. Kyung-Mok Cho

Scientific Attache

Embassy of Korea

2370 Massachusetts Ave., NW

Washington, D.C. 20008

Dr. Jong Wan Choi

Administrator

Industrial Advancement Administration

Ministry of Commerce and Industry

Yongdeungpo-Dong, Yongdeungpo-ku

Seoul , Korea

Mr. Rafael Coria

General Manager

Radiocommunication FM Operation

General Electric de Mexico

Apartado Postal 14-175

Mexico 14, D.F.

Dr. Alberto Pereira de Castro

Superintendent

Instituto de Pesquisas Tecnologicas

Caixa Postal 7.141

01000 Sao Paulo SP, Brazil

Mrs. Maricela Ferrer de Chan

Director, Comision Panamena de Normas

Industrials y Tecnicas (C0PANIT)

Apartado Postal 9658 - Zona 4

Panama City, Panama

Mr. William L. Eilers

AID Coordinator for U.N. Conference

On Science and Technology Toward

Development, 1979

Department of State

Washington, D.C. 20520

Mr. Abdulla Fadlalla

Acting Secretary General

Arab Organization for Standardization

and Metrology (ASM0)

P.O.B. 27 Dokki

Cairo, Egypt

Dr. Rogers B. Finch

The American Society of Mechanical Engineers

345 East 47th Street

New York, NY 10017

Ms. Anna Fotias

Senate Committee on Science, Commerce,

and Transportation

5202 Dirksen Senate Office Building

Washington, D.C. 20510

Mr. German E. Framinan

Organization of American States (OAS)

1735 Eye St., NW

Washington, D.C. 20006

Mr. John C. Fry

Senior Staff Member, DS/ST

Agency for International Development

Rosslyn Plaza C, Room 209

Washington, D.C. 20523

Dr. Herbert I. Fusfeld

Director for Science and Technology Policy,

Graduate School of Public Administration

New York University, NY 10016

Ir. Gandi

Secretary, Yayasan Dana Normal isasi Indonesia

(Indonesian Standardization Funds Foundation)

Jalan Braga 40

Bandung, Indonesia

Dr. D. T. Goldman

Acting Associate Director for

Long-Range Planning

National Measurement Laboratory

National Bureau of Standards

Washington, D.C. 20234

Mr. James Gudaitis

Research Associate

Center for Concern

3700 13th Street, NE

Washington, D.C. 20017

Mr. Perfecto K. Guerrero

Science Attache

Embassy of the Philippines

1617 Massachusetts Ave., NW

Washington, D.C. 20036

Mr. Remon Halteh

Head, Quality Mark Division

Directorate of Standards

Ministry of Industry and Trade

Amman, Jordan

Mr. Ahmad S. Hassan

Embassy of Hashemi te Kingdom of Jordan

2319 Wyoming Ave., NW

Dr. Howard I. Forman Washington, D.C. 20008

Deputy Assistant Secretary

for Product Standards

Department of Commerce

Washington, D.C. 20230

Mr. Hamilton Herman

Industrial Consultant

7316 Masters Drive

Potomac, MD 20850

231
i

Dr. C. G. Hide

Scientific Counselor

Embassy of South Africa

3051 Massachusetts Ave.,

Washington, D.C. 20008

NW

Mr. E. Horowitz

Deputy Director for Resources

and Operations

National Measurement Laboratory

National Bureau of Standards

Washington, D.C. 20234

Mr. Franklin P. Huddle

Congressional Research Service

Library of Congress

Washington, D.C. 20540

Mr. Donald Kelly

Patent and Trademark Office

Department of Commerce

Bldg. 3, Room 2C33, Crystal Plaza City

Arlington, VA 22202

Dr. K. G. Kessler

Director

Center for Absolute Physical Quantities

National Bureau of Standards

Washington, D.C. 20234

Mr. Dong Ho Kim

Chief, Electric and Electronics Department

National Industrial Research Institute (NIRI)

Industrial Advancement Administration

Ministry of Commerce and Industry

219 Karibong-dong Yungdeongpo-ku

Seoul , Korea

Mr. Francis Kinnelly

0ES/APT/SA - Bureau of Oceans International

Environmental and Science Affairs

Department of State

Washington, D.C. 20520

Mr. S. Krammer

Acting Associate Director for

Program Coordination

National Engineering Laboratory

National Bureau of Standards

Washington, D.C. 20234

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Office of International Affairs

U.S. Department of HUD

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Embassy of India

2536 Massachusetts Avenue, NW

Washington, D.C. 20008

Mr. Frank Lancetti

U.S. Department of State

I0/SCT

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Mrs. Lorna Lawrence

Senior Scientific Officer

Guyana National Bureau of Standards

National Science Research Council Guyana

44 Pere St. Kitty (P. 0. Box 689)

Georgetown, Guyana

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Chairman

Singapore Institute of Standards

and Industrial Research

179 River Valley Road

Singapore 6

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Metallurgy and Mining Building

University of Illinois

Urbana, Illinois 61801

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U.S. Department of Commerce

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Washington, D.C. 20230

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First Secretary

Lesotho Embassy

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Washington, D.C. 20009

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Minister Counselor (Scientific Affairs)

Embassy of Mexico

2829 16th St. NW, Suite 505

Washington, D.C. 20009

Mr. Horacio Federico Mazza

Chief, High Frequency Measurements

and Cal ibration

Electronic Metrology Division

Instituto Nacional de Tecnologia Industrial

Leandro N. Alem 1067, pisos b°,

1001 Capital Federal

Buenos Aires, Argentina

Mr. Pender M. McCarter

Editor, AFIPS Washington Report

1815 North Lynn Street, Suite 805

Arlington, VA 22209

Dr. A. 0. McCoubrey

Acting Associate Director for

Measurement Services

National Measurement Laboratory

National Bureau of Standards

Washington, D.C. 20234

(INTI)

y 7

232
Dr. J. D. McKinley

Planning Office

National Bureau of Standards

Washington, D.C. 20234

Dr. Robert W. Middleton

Assistant Secretary General

ISO Central Secretariat

1 , Rue de Varembe

1211 Geneva 20, Switzerland

Mr. Stanton Miller

American Chemical Society

1101 15th Street, NW

Washington, D.C. 20005

Mr. Seth Neugroschl

Advisory Systems Planner

IBM Corporation

3000 Westchester Avenue

Harrison, NY 10528

Mr. J. E. Owino-Okwero

Senior Standards Officer

Civil Engineering Department

Kenya Bureau of Standards

P. 0. Box 10610

Nairobi, Kenya

Mr. Saul Padwo

Bureau of Domestic Business Development, ITA

Department of Commerce

Room 1001, Main Commerce

Washington, D.C. 20230

Mr. H. Steffen Peiser

Chief

Office of International Relations

National Bureau of Standards

Washington, D.C. 20234

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Director General

Appropriate Technology Development

Organization (ATDO)

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Islamabad, Pakistan

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Attorney at Law

750 Third Avenue

New York, NY 10017

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Technical Manager

Tanzania Bureau of Standards

P. 0. Box 9524

Dar es Salaam, Tanzania

Ms. M. Carolyn Rhodes

Legislative Assistant to Congressman Long

2304 Rayburn Bldg.

Washington, D.C. 20515

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Federal Register Writer

Office of the Associate Director for

Regulatory Affairs

Food and Drug Administration

Room #15-42 (HFC-40)

5600 Fishers Lane

Rockville, MD 20857

Mr. Ludwig Rudel

TA/N 714C SA-18 AID

Department of State

Washington, D.C. 20520

Dr. Raymond C. Sangster

NBS/AID UNCSTD Seminar Coordinator

National Bureau of Standards

Boulder, CO 80303

Dr. J. A. Simpson

Director

Center for Mechanical Engineering

and Process Technology

National Bureau of Standards

Washington, D.C. 20234

Dr. G. A. Sinnott

Acting Associate Director for

Technical Evaluation

National Engineering Laboratory

National Bureau of Standards

Washington, D.C. 20234

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International Program Officer

Office of the Assistant Secretary for

Policy, Budget, and Administration

U.S. Department of the Interior

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Office of Assistant Secretary for

Science and Technology

Department of Commerce

Room 3877, Main Commerce

Washington, D.C. 20230

Prof. Tarik G. Somer

Assistant President

Middle East Technical University

Ankara, Turkey

Dr. H. E. Sorrows

Technology Adviser

Special Activities

National Bureau of Standards

Washington, D.C. 20234

Prof. Kenneth S. Stephens

School of Industrial and Systems Engineering

Georgia Institute of Technology

Atlanta, GA 30332

233
Mr. James Stromayer

Office of U.N. Conference on Science

and Technology for Development (T/CST)

Department of State

Washington, D.C. 20520

Mr. Abdel Gadir Suliman

Director General

Department of Standardization

and Quality Control

Ministry of Industry

Khartoum, Sudan

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Embassy of Republic of China

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Washington, D.C. 20008

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National Bureau of Standards

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Chief, Laboratory Section

Barbados National Standards Institute (BNSI)

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Scientific Consultant

Senate Subcommittee on Energy, Nuclear

Proliferation, and Government Service

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Washington, D.C. 20510

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Measurement Assurance Officer

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CP. 7141

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Mr. Robert S. Walleigh

Senior Adviser for International Affairs

Office of Associate Director for

International Affairs

National Bureau of Standards

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Ms. Denise Weiner

American Association for the

Advancement of Science

1776 Massachusetts Ave., NW

Washington, D.C. 20036

Mr. A. A. Wells

8515 Woodhaven

Bethesda, Md. 20034

Mr. William Wight

American Association for the

Advancement of Science

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Washington, D.C. 20036

Ambassador Jean Wilkowski

Coordinator, U.N. Conference on Science and Technology

Department of State

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Dr. J. R. Wright

Deputy Director

National Engineering Laboratory

National Bureau of Standards

Washington, D.C. 20234

Dr. R. N. Wright

Director

Center for Building Technology

National Bureau of Standards

Washington, D.C. 20234

234
NBS-114A IREV. 9-76)

U.S. DEPT. OF COMM.

BIBLIOGRAPHIC DATA

SHEET

1. PUBLICATION OR REPORT NO. NBS SP 543

2.Gov*t Accession No. 3. Recipient's Accession No.

4. TITLE AND SUBTITLE

Proceedings of the NBS/AID UNCSTD Seminar:

The Technological Knowledge Base for Industrial izi ng Countries

5. Publication Date April 1979

6. Performing Organization Code

7. AUTHOR(S)

Raymond C. Sangster, editor

8. Performing Organ. Report No.

9. PERFORMING ORGANIZATION NAME AND ADDRESS

NATIONAL BUREAU OF STANDARDS

DEPARTMENT OF COMMERCE

WASHINGTON, DC 20234

10. Prbject/Task/Worfc Unit No.

11. Contract/Grant No.

PASA TA (CE) 6-71

12. SPONSORING ORGANIZATION NAME AND COMPLETE ADDRESS (Street, City, state, ZIP)

Organized by NBS with the cooperation of the Office of Science

and Technology, Dept. of Commerce; U.S. Coordinator for the

UN Conference on Science and Technology for Development; and

the Agency for International Development.

13. Type of Report & Period Covered

Final

14. Sponsoring Agency Code

15. SUPPLEMENTARY NOTES

Library of Congress Catalog Card Number : 79-600058

| | Document describes a computer program; SF-185, FIPS Software Summary, is attached.

16. ABSTRACT (A 200-word or less factual summary of most significant information. If document includes a significant bibliography or

literature survey, mention it here.) The National Bureau of Standards held a two-day seminar to ex- plore needs for the technological knowledge base for industrializing countries and procedures for acquiring and applying it, in the areas of measurement capabilities and . services required by technological industry, national and international standards that

must be satisfied by industrializing nations, knowledge required for industrial, quality

control, knowledge required to enable a country to acquire commercial industrial technology, and managerial responsibilities and technical knowledge. The Proceedings are

background material for preparation of U.S. positions at the UN Conference on Science

and Technology for Development in Vienna, August 1979. Cosponsors included the Office

of Science and Technology, Dept. of Commerce; U.S. Coordinator for the UN Conference,

Dept. of State; and the Agency for International Development. The 97 registrants came

from Argentina, Barbados, Brazil, Egypt, Guyana, India, Indonesia, Jordan, Kenya, Korea,

Lesotho, Mexico, Pakistan, Panama, Philippines, Saudi Arabia, Singapore, South Africa,

Sudan, Switzerland, Taiwan, Tanzania, Tunisia, Turkey, and many public and private organizations in the U.S. Key words used to summarize the conclusions were: local realities; industrialization; import, adapt, and innovate; complexity; technology assessment;

indigenous capabilities; metrology, standardization, and quality control; survey projects; instrumentation; international standardization; existing plant; access to industrial technology; management; organizational climate; the human resource; the UN. All

are important and need attention/support.

17. KEY WORDS ("six to twelve entries; alphabetical order; capitalize only the first letter of the first key word unless a proper name;

separated by semicolons) Africa; Asia; developing countries; industrialization; Latin America;

management; measurement; metrology; quality control; standards; technology transfer;

UN Conference on Science and Technology for Development (UNCSTD).

18. AVAILABILITY QUnlimited

I | For Official Distribution. Do Not Release to NTIS

|X j Order From Sup. of Doc, U.S. Government Printing Office, Washington, DC

20402, SD Stock No. SN003-003-02057-5

Order From National Technical Information Service (NTIS), Springfield,

VA. 22161

19. SECURITY CLASS 21. NO. OF

(THIS REPORT) PRINTED PAGES

UNCLASSIFIED ^39

20. SECURITY CLASS 22. Price (THIS PAGE) $4.50

paper copies

UNCLASSIFIED only

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0(
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