How can import duties protect businesses which creates new industry in a country?

[Rhyghtman]

In very poor countries like Somalia, if an entrepreneur started a business never started before in that country, producing a product which's really highly demanded in poor countries, he produces a flour.

Somalia always import flour from neighboring countries. And after started his business, let's say he realized that his products are expensive than the ones being imported. Would the country protect that newly created industry despite the fact that it's cheaper if the flour is being imported from neighboring countries? Not to mention that since it's a poor country and flour is their common food, none is sure whether it's people would try swallowing the fact that the prices suddenly rose up.

So, what do you think?

[Rob Malone]

Wow that is quite a question. My guess is it all comes down to your political connections. If you have some friends who leaders in the government then maybe you could pull it off. My experience is that unless you have those connections the chances of a government subsidy is pretty slim - unless they have some kind of existing program you can qualify for.

I think your chances are low.

[Rhyghtman]

Cool. So i guess i should be competitive enough and make the prices as low as it should be.
If it seems that impossible, then perhaps I should think of another industry that doesn't require such a high startup cost.
Industries like Manufacturing beverages or something of that sort. Then eventually make my way up and finally meet the flour industry requirements.

Thanks anyway

[Kumar Palani]

It will most likely depend on your contacts within govt circle, and your capacity to manipulate stuffs around. But it would be a sensible idea to leave your industry intact, provided it employes huge number of locals. Sometimes govts accept the losses, to ensure new employments are created.(and maintained). But in the case of Somalia you should be fortunate enough if you managed to keep your business safe from pirates and outlaws who run the show there.