Government set aside programs
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Stage collapses at BNP rally in Chattogram. A stage where BNP leaders were delivering speeches calling for the government to allow party Chairperson Khaleda Zia to seek medical treatment abroad has collapsed in Chattogram. The case started innocently enough when Croson bid on a contract to provide urinals for the city jail. The company then sued.
And in , the U. Supreme Court issued a landmark ruling that essentially guides the structure of set-aside programs today. The Center for Equal Opportunity opposes such studies. In fact, Clegg says he does a daily internet search to find municipalities that are considering using them and then sends a form letter encouraging them to stop. Sometimes cities approach the companies hired to perform the studies and say they want to find disparity so they can use certain preferences to fulfill political agendas.
Furthermore, disparity studies — usually performed by only a handful of companies nationwide — often are hundreds of pages long and include a plethora of tables and charts, says George La Noue, an outspoken critic of set-aside programs. La Noue is a research professor of political science and of public policy in the School of Public Policy at the University of Maryland Baltimore County.
It takes a considerable amount of work to determine whether even the mathematics of the study are correct, not to mention other conclusions. As an example, he cites highly specialized work that perhaps only a few companies can perform. Lawsuits brought against municipalities and the like often are settled out of court.
Set-aside programs also can stunt the development of disadvantaged companies. In fact, some studies show that the failure rate of companies that graduate from set-aside programs is higher than the normal failure rate for small businesses. Another point to consider: Not all minorities are disadvantaged, La Noue observes, which raises the question of whether ethnicity, race or gender are appropriate categories to identify who is disadvantaged and who is not.
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