- •In Partial Fulfillment of the Requirements
- •Chapter ----1
- •Introduction........................................................................................................09
- •Chapter----2
- •Chapter----3
- •Chapter ---------4
- •Influence the marble cluster in Afghanistan.......................................................13
- •Integration of suppliers in the actual marble business........................................17
- •Importance of marble industry to the block suppliers.........................................17
- •Chapter ---------5
- •Acknowledgment
- •General introduction to marbles
- •To investigate the current approach to the afghan marbles productivity:
- •To understanding the current literature of the afghan marble industry:
- •Overview to afghan domestic marbles product by provinces percentage
- •The five year projection of Afghans marbles industry
- •An overview of world marbles industry
- •The regional market
- •Afghanistan Marble and Granite survey by usaid
- •Amgpa(Afghanistan marbles processor association )
- •Recommendations:
- •Marble companies:
- •Market structure
- •Market opportunity
- •Ballistic brown marbles slab brecciate brown marbles slab
- •Demand in Local and Foreign Markets
- •Problems question
- •The Market and the Actual Production:
- •Recommendations:
- •Role of government
- •Factors of production :
- •Role of Private Sector
- •Role of donors
- •The method(s) used for analyzing the information:
- •The analysis:
- •Swot analysis
- •The national demand for Afghanistan
- •Factor conditions:
- •Demand conditions:
- •Related and Supporting Industries Advantages:
- •Related and Supporting Industries Disadvantages:
- •Context for Firm Strategy, Structure and Rivalry Advantages:
- •Context for Firm Strategy, Structure and Rivalry Disadvantages:
- •Influence the marble cluster in Afghanistan:
- •Second Afghanistan International Marble Conference
- •New Marble-Processing Facility Inaugurated at Marble Conference Opening
- •Websites
- •Appendix
- •Bibliography
- •I | Page
Recommendations:
despite the fact that there is almost infinite best quality marbles deposits throughout the country and enormous demand exist within the domestic and international markets ,afghan firms are not performing very well -price is high ,quality of finished products in term of polishing and finishing is dire ,innovation lacks, market is dominated by foreign products ,and export of marble is low moreover ,the current market condition cannot attract enough investment reasons for this situation range from undesirable legal framework and bureaucracy to lack of factors of production but the reason for bad performance of establish firms is lack of direction which is caused by both lack of direction which is caused by both lack of incentive and lack of effective regulation by the government
Role of government
In order to push private firms to perform well (i.e. . . . to decrease their price and to increase their quality of production) the afghan g0vernment, especially the ministry of mines should take the following steps:
the MOM should provide strong incentives for quarries to increase their production and output such a supply -side policy will encourage the firm to employ modern technology and use more efficient extraction method to benefit from the incentive this in turn will enable the firms to benefit from the inventive this in turn will enable the firm to benefit from the economics of scale to decrease their total cost to supply at a lower price and thus to increase their competitiveness moreover employing modern technology will also hove positive effect on the quality of their products.
A simple incentive mechanism can be offering discounts on the royalty fees for each additional amounts of marbles products .for example quarry a is supposed to extract 10,000 tones of marbles per year according to its contract with the ministry of mines if this firm, extract 20.000 tones within a year the monastery of mines should give a 50% royalty discount on the additional amount (i.e. 10.000 tones) for the next 10,000 additional tones of marble, the ministry should offer a 75% discount.
such a mechanism can provide strong incentive for quarries to produce more afghan firms will benefit from the economies for scald and will have lower total cost they can thus easily sell at a lower and competitor price, an ell be able to compete with Pakistan marbles evenly afghan firms can increase their share at the local market .and even at foreign markets.
Nonetheless, the decrease in royalty revenue of the government will be more than offset by an increase in income/sales tax, business receipt tax (BRT) and other types of taxes due to increased production of marble in the economy.
2. The Ministry of Mines must prohibit the use of explosive materials in extracting marble. Prohibition of explosive devices can save 50 to 70 of waste and prevent damage to the entire deposit. It can also push the quarrying firms to use standard technology which is more productive and safe.
3. Ministry of Mines should also provide incentives for the use of standard technology (e.g. a royalty discount) or prioritize in the bidding process those companies which employ standard technology and modern machineries.
4. The Afghan government should adopt policies which promote domestic marble usage and encourage purchase of Afghan marble products throughout their procurement system - by adopting “Afghan product first” policy. Such policies increase domestic demand for Afghan marble and ensure a sustainable expansion of Afghan marble market.
5. Ministry of finance (MOF) should increase export tax on row marble (unprocessed marble blocks). This will insure continuous supply of marble for processing firms as well as encouraging value added activities to take place within the country.
6. In order to promote private investment in marble industry, the government should provide necessary public goods and access to factors of production for marble producers. Infrastructure, land, and capital are such goods need to be facilitated by the government. Below, specific policies have been proposed for each factor or services.