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CHALLENGES

OF CONSTRUCTION INDUSTRIES IN DEVELOPING COUNTRIES

LESSONS FROM VARIOUS COUNTRIES

SUMMARY

          Construction industry is one of the industries that play an important role in developing and enhancing the economic sector and also the development of one’s country. Although the construction industry contributes to the development but at the same time challenges and problems may exist in the progress and development in the development countries such as socio-economic stress, institutional weakness, chronic resource shortages and general inability to deal with the key issue. Besides, globalisation, culture, and the environment are the major issues that must be resolved in the development of the construction industry.

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         Construction industry development is about the process of improving the ability and effectiveness of the construction industry. They must increase the money value to the industry clients and environmental responsibility. Plus, improving the performance of the construction industry has now been recognised in several countries at various levels of socio-economic development. They also need to increase the sophisticated economy, client demands, technological and social change, and globalisation leading to competitive pressures.

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          Globalization allows companies a wider range of access in construction markets, which in turn allows for more direct competition. From the perspective of developing countries, there are very different debates about the advantages and disadvantages of the globalization process.The implications of globalisation for the construction industries, the costs and benefits of the national construction industry may be different from the national economy. Moreover, work is required on how the benefits of globalisation can be maximised and the adverse effects minimised.

 

           Culture is the cumulative personality of my organization based upon my beliefs, view of what I do, the traditions and values I hold as an owner or senior leader, and certainly the attitudes and work ethic of all who work in industrialised countries. Culture has always been larger of an issue for contractors, whether or not they ever discussed it or turned their focus on it. Culture has become an important area of study and It has been found that every organization has a culture which is determined by its history, size, corporate goals and objectives, technology of production, market, and operating environment. Cultural issues are constantly to the fore and the ability to manage cultural issues is a determinant of project and corporate success.

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          The environmental problems of the developing countries exist side-by-side with a lack of the managerial experience, financial resources, and legal and administrative systems necessary to deal with the issue through public and formal education, formulation and enforcement. Many countries, mainly industrialised ones, have taken action to ensure that their construction industries adopt materials, techniques and practices which result in operations and products which have a lower environmental impact. The developing countries can derive useful lessons from these measures such as government action, market forces, institutional initiatives, and operational environment.

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