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Quality Systems and Standards for a Competitive Edge

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Author Info

  • J. Luis Guasch
  • Jean-Louis Racine
  • Isabel Sánchez
  • Makhtar Diop
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    Abstract

    This book argues for the urgent need for countries to move forward aggressively on adopting and upgrading quality and standards. The focus is on developing countries, many of which are lagging in the race for standards adoption, and within that category, on middle-income countries. The book analyzes the economic impact of quality and standards on economic growth, on international trade, and as an entry point for the industrial upgrading and mainstreaming of small enterprises. It offers detailed guidelines for the creation of national quality systems that can effectively support the use and adoption of standards. It describes the optimal structure for a national quality system, evaluates the precise roles of the public and private sectors, and proposes best-practice guidelines and norms for these roles. It also addresses the financing issue, including the extent of and rationale for targeted subsidies, and questions of jurisdiction. Special emphasis is given to international integration through mutual recognition agreements that enhance access to external markets-a key objective for developing countries. The first part of the book is generic and normative, providing empirical evidence and guidelines for reform. The second part describes and evaluates the performance of a number of Latin American countries with respect to various components of the national quality system. The first half of this book presents a conceptual framework, highlighting the importance of a national quality system and explaining its role in international trade and economic development. Chapter 2 examines the systemic impact of quality and standards on economic growth and international trade. In particular, it looks at the usefulness of standards as an entry point for technological upgrading and for the mainstreaming of Small and Medium Enterprises (SMEs). Chapter 3 addresses the relative roles and jurisdictions of the public and private sectors in the implementation of an effective national quality system. Chapter 4 presents the structure, organization, and functioning of the certification, testing, calibration, inspection, accreditation, and metrology bodies of the national quality system. Chapters 5 and 6 discuss international aspects of the system, especially the ISO 9000 quality management standards. Chapters 7 through 10 focus on the experience in Latin America and the Caribbean. These chapters examine the standards-setting institutions, certification activities, accreditation processes, and metrology institutions in this region. The last two chapters of the text turn to the policy framework. Chapter 11 analyzes existing policies and support programs implemented in several Latin American countries to facilitate the diffusion of standards and quality in the productive sector. Finally, chapter 12 presents detailed policy recommendations for developing countries for implementing effective national quality systems and ends with a brief conclusion.

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    Bibliographic Info

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    This book is provided by The World Bank in its series World Bank Publications with number 6768 and published in 2007.

    ISBN: 978-0-8213-6894-7
    Handle: RePEc:wbk:wbpubs:6768

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    Postal: 1818 H Street, N.W., Washington, DC 20433
    Phone: (202) 477-1234
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    Web page: https://openknowledge.worldbank.org
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    Related research

    Keywords: Private Sector Development - E-Business Social Protections and Labor - Labor Policies Science and Technology Development - Standards and Technical Regulations Information Security and Privacy Environmental Economics and Policies Environment;

    References

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    1. Michal Grajek, 2004. "Diffusion of ISO 9000 Standards and International Trade," CIG Working Papers SP II 2004-16, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    2. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
    3. Maggie Xiaoyang Chen & Aaditya Mattoo, 2008. "Regionalism in standards: good or bad for trade?," Canadian Journal of Economics, Canadian Economics Association, vol. 41(3), pages 838-863, August.
    4. Eric Neumayer & Richard Perkins, 2005. "Uneven geographies of organizational practice: explaining the cross-national transfer and diffusion of ISO 9000," LSE Research Online Documents on Economics 16271, London School of Economics and Political Science, LSE Library.
    5. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
    6. World Bank, 2005. "World Development Indicators 2005," World Bank Publications, The World Bank, number 12426, October.
    7. Ian Goldin & Kenneth Reinert, 2006. "Globalization for Development : Trade, Finance, Aid, Migration, and Policy," World Bank Publications, The World Bank, number 6996, October.
    8. Albuquerque, P. & Bronnenberg, B.J.J.A.M. & Corbett, Ch.J., 2007. "A spatiotemporal analysis of the global diffusion of ISO 9000 and ISO 14000 certification," Open Access publications from Tilburg University urn:nbn:nl:ui:12-332031, Tilburg University.
    9. John S. Wilson & Victor O. Abiola, 2003. "Standards and Global Trade : A Voice for Africa," World Bank Publications, The World Bank, number 15131.
    10. Terlaak, Ann & King, Andrew A., 2006. "The effect of certification with the ISO 9000 Quality Management Standard: A signaling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 579-602, August.
    11. Otsuki, Tsunehiro & Wilson, John S. & Sewadeh, Mirvat, 2001. "Saving two in a billion: : quantifying the trade effect of European food safety standards on African exports," Food Policy, Elsevier, vol. 26(5), pages 495-514, October.
    12. Bernard M. Hoekman & Togan Sübidey, 2005. "Turkey : Economic Reform and Accession to the European Union," World Bank Publications, The World Bank, number 7494.
    13. Raballand, Gael & Aldaz-Carroll, Enrique, 2005. "How do differing standards increase trade costs? The case of pallets," Policy Research Working Paper Series 3519, The World Bank.
    14. Knut Blind & Andre Jungmittag, 2005. "Trade and the impact of innovations and standards: the case of Germany and the UK," Applied Economics, Taylor & Francis Journals, vol. 37(12), pages 1385-1398.
    15. Schmitz, Hubert, 1999. "Global Competition and Local Cooperation: Success and Failure in the Sinos Valley, Brazil," World Development, Elsevier, vol. 27(9), pages 1627-1650, September.
    16. Sharma, Divesh S., 2005. "The association between ISO 9000 certification and financial performance," The International Journal of Accounting, Elsevier, vol. 40(2), pages 151-172.
    17. Swann, Peter & Temple, Paul & Shurmer, Mark, 1996. "Standards and Trade Performance: The UK Experience," Economic Journal, Royal Economic Society, vol. 106(438), pages 1297-1313, September.
    18. A.M. Lima, Marcos & Resende, Marcelo & Hasenclever, Lia, 2000. "Quality certification and performance of Brazilian firms: An empirical study," International Journal of Production Economics, Elsevier, vol. 66(2), pages 143-147, June.
    19. Christopher R. Turner & Gerald F. Ortmann & Michael C. Lyne, 2000. "Adoption of ISO 9000 quality assurance standards by South African agribusiness firms," Agribusiness, John Wiley & Sons, Ltd., vol. 16(3), pages 295-307.
    20. Ayyagari, Meghana & Beck, Thorsten & Demirguc-Kunt, Asl, 2003. "Small and medium enterprises across the globe : a new database," Policy Research Working Paper Series 3127, The World Bank.
    21. Wood, Adrian, 1997. "Openness and Wage Inequality in Developing Countries: The Latin American Challenge to East Asian Conventional Wisdom," World Bank Economic Review, World Bank Group, vol. 11(1), pages 33-57, January.
    22. Catherine Dolan & John Humphrey, 2004. "Changing governance patterns in the trade in fresh vegetables between Africa and the United Kingdom," Environment and Planning A, Pion Ltd, London, vol. 36(3), pages 491-509, March.
    23. Chen, Maggie Xiaoyang & Otsuki, Tsunehiro & Wilson, John S., 2006. "Do standards matter for export success ?," Policy Research Working Paper Series 3809, The World Bank.
    24. Aldaz-Carroll, Enrique, 2006. "Regional approaches to better standards systems," Policy Research Working Paper Series 3948, The World Bank.
    25. David De Ferranti & Guillermo E. Perry & Indermit Gill & J. Luis Guasch & William F. Maloney & Carolina Sanchez-Paramo & Norbert Schady, 2003. "Closing the Gap in Education and Technology," World Bank Publications, The World Bank, number 15168.
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    Cited by:
    1. Jose Guilherme Reis & Thomas Farole, 2012. "Trade Competitiveness Diagnostic Toolkit," World Bank Publications, The World Bank, number 2248, October.
    2. Hezekiah Agwara & Philip Auerswald & Brian Higginbotham, 2014. "Algorithms and the Changing Frontier," NBER Working Papers 20039, National Bureau of Economic Research, Inc.
    3. World Bank, 2008. "Bulgaria - Investment Climate Assessment : Volume 2. Detailed Report," World Bank Other Operational Studies 7868, The World Bank.
    4. Chandra, Vandana & Osorio Rodarte, Israel, 2009. "Options for Income-Enhancing Diversification in Burkina Faso," MPRA Paper 20928, University Library of Munich, Germany.
    5. World Bank, 2011. "Jamaica - Country Economic Memorandum : Unlocking Growth," World Bank Other Operational Studies 2756, The World Bank.
    6. World Bank, 2008. "Bulgaria - Investment Climate Assessment : Volume 3. Technical Appendices," World Bank Other Operational Studies 7867, The World Bank.
    7. Hezekiah Agwara & Philip Auerswald & Brian Higginbotham, 2013. "Algorithms and the Changing Frontier," NBER Chapters, in: The Changing Frontier: Rethinking Science and Innovation Policy National Bureau of Economic Research, Inc.

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