CHALLENGES OF CONSTRUCTION INDUSTIES IN DEVELOPING COUNTRIES

 

     Due to challenges of construction industries in developing countries, the main issues addressed are: construction industry development; globalisation; culture; and the environment.

     In conjunction with construction industry development, dedicated agencies have been formed in few countries to handle the those obstacles, mostly by government agencies. However, since formation of an agency does not solve the resources constraints in construction industry, it does not guarantee the success of construction industry development. Therefore, a number of countries formulate a long-term plan for improving their construction industries. Especially the C21 from Singapore is mentioned, and its six strategic thrusts were identified, they are Enhancing the Professionalism of the Industry, Raising the Skills Level, Improving Industry Practices and Techniques, Adopting an Integrated Approach to Construction, Developing an External Wing and A Collective Championing Effort for the Construction Industry.

     Moreover, globalisation is an inescapable fact because many of the construction projects which the nations require for their socio-economic development are beyond the capability of their industries to undertake, owing to the size, novelty and complexity of those projects. advantages and demerits of globalisation to the construction industries of developing countries are mentioned. As their advantages are the presence of international funding helps some initiatives to be initiated, such as those involving large infrastructure, direct foreign investment in projects contributes to an increase in demand for construction, generating opportunities for local businesses to work, competition between foreign companies decreases project costs for developing countries. As the disadvantages are, in order to engage in the funding of privatised projects, local construction companies have no capital or skills. there is a shortage of technological and administrative capacity for local construction firms to implement most of the foreign-funded projects. Local businesses will be deprived of the opportunity to expand. Global construction companies can pay lip service to the transfer of technology or take steps to avoid it. In addition, local businesses may not be in a position to profit from the transfer of technology or to use the gained knowledge subsequently

     Furthermore, owing to cultural issues, the ability to manage cultural issues, especially in multi-cultural situations as are encountered on large construction projects, is a determinant of project and corporate success. In construction, the studies relating to culture have concerned, the impact of the nation’s culture on construction activity the culture of the construction project,the culture of the construction firm and the culture of the construction site

     In additional, the environmental issues lead to shortages of fresh water, a situation which is expected to worsen, and possibly lead to conflict among nations. The developing countries are also losing their forests at a very fast rate. The countries also face rapid urbanisation with its associated problems of air pollution and pressure on existing infrastructure such as waste management systems. The environmental problems of the developing countries also causes by lack of the managerial experience, financial resources, and legal and administrative systems. For dealing with the issue, should handed through public and formal education, formulation and enforcement of “command and control” measures, as well as the devising and implementation of “economic instruments”.

     For construction industry development, the economies of many developing countries are currently confronted by severe difficulties owing to a combination of lower commodity prices, higher energy costs, falling exchange rates and rising inflation. Way to deal with those problems are the construction industry should effectively play its role in the economy by realising its potential to create jobs in all parts of the country as well as stimulating business activities in other sectors of the economy and construction activities should lay the infrastructure for development.

      The construction industries of the developing countries will face major challenges in future. It is necessary for more work to be done on the issues of globalisation, the environment, and the various aspects of culture as they relate to construction activity, construction enterprises and the construction industry in developing countries