ABSTRACT
The Open Door Policy initiated in 1974 encouraged private investment. It is estimated that the contribution of the private sector rose from 10" of total investment in 1973 to 24" in 1981. It accounted for 48" of the GDP in 1981-82. The Open Door Policy involved a variety of administrative and legislative measures. The companies coming under this law are deemed to belong to the private sector; and legislation and regulations applicable to the public sector do not apply to them. For example, the conditions and procedures for electing labour representatives to the boards of directors of public sector enterprises etc. do not apply to them except that the companies' own statutes shall provide for labour participation in management by some method. Customs duties may be increased on the imports of commodities which compete with, or which are substitutes for, the products of the projects concerned; or the imports may be restricted for a period.
