The art of liaisoning

The much-neglected art of liaisoning is still in need not only in government circles, but also among trade bodies.

Not long ago, success in business meant knowing the right politician. Post-liberalization, government policies have been reformed to allow business to happen without much bureaucratic hassle. But the recent change of government has woken up the industry to a new reality where they have to lobby to sustain reforms.

Liaisoning was originally a term used in military parlance to mean the need for inter-communication between various wings of the defence. In today’s environment, it translates to interacting with various officials, convincing them about a particular issue and getting their approval. Moving in government circles for successful completion of jobs requires a great skill. You must have the right domain knowledge, and also make sure that you create a good image of your firm. Federation of Karnataka Chambers of Commerce and Industry has been the industry representative in the state for decades. Are they worried about the change of government and its implications?

Upsetting the policy applecart

Manandi Suresh, president, FKCCI said, “Change of government is routine and is not a cause for worry for our 86-year-old organisation. We very well know that a change of policy is inevitable. The state industry minister P G R Sindhia assured us of all possible assistance and has even constituted a committee of top bureaucrats for one-on-one dialogue with the industry. But when we met with the finance minister, we found that his views are different. We are confident, though, of convincing him about the need to focus on industrial growth along with rural development.”

So how does one represent the various demands of the industry to such a reluctant government? S Babu, vice president, FKCCI, said, “It is obvious that we can’t stress on too many issues that affect the industry here. We focus on one or two burning topics, which can be taken up with higher authorities. We entrepreneurs need to strive to stand on our legs, with or without government support. But it is essential to have a good atmosphere for business with an emphasis on better infrastructure and tax policy.”

Running from pillar to post

One crucial issue that affects bigger firms and SMEs is the streamlining of clearance process. Though most of the investment goes through the single window agency Karnataka Udyog Mitra, some issues are handled by other bodies. Suresh said, “We have been pointing out about certain government departments with overlapping duties. For instance, the two nodal bodies KIADB and KSSIDC have similar job responsibilities. They can be merged to reduce file transactions. Our suggestion was considered. Earlier an IAS officer had thought about making a cost effective industries and commerce department, where an investor doesn’t need to run from pillar to post. We welcomed this move.”

There are many trade bodies like PIA, MAIT, IMTMA established to cater to particular sectors. So is FKCCI’s role getting diluted? Babu thinks not: “Common aspects which affect the industry in general like tax or labor laws, can only be dealt at the policy level. FKCCI is now a federation of nearly 107 associations which liaisons with the government for implementing these policies. For instance, we are now concentrating on universal VAT implementation to bring in a unified policy all over the country. Basically it is lack of political will that is hindering the implementation. Haryana has already taken up VAT and has reported higher revenue despite counter claims.”

Do you need to lobby?

Lobbying has become a dirty word in industry parlance, but still is an essential part of business. So is it necessary to influence politicians to get a favourable policy and if so how can that be done in a civilised way? Suresh says, “Some industries do use lobbying as a tool to get their work done. But otherwise there is a need to interact with people and present your perspective. There was this issue about Cenvat for synthetic fibres and natural fibres, which was working against the handloom weavers. So the small weavers of Tamil Nadu met the finance minister and presented their views just before this year’s budget. And it was obvious that the Cenvat was withdrawn soon after.”

“So we have put forth our point of view to promote ourselves. The burning need now is to have labor law reforms. It has to happen sooner or later. Competitiveness in all aspects is crucial in this globalized world. The ILO convention proposals have been seriously considered by the government and we are positive that a policy favourable to all will be presented,” added Suresh.

Issue BG44 Nov04