SPECIAL ECONOMIC ZONES Not a Good Idea
By: Adv. Joseph Vaz NT Panorama Sunday December 2, 2007 " "Blind opposition to SEZs would be disastrous. The country has to compete with the world economies. This can be achieved without the bulldozing and destruction of fertile farmlands by the pseudo promoters of SEZs. " " Special Economic Zones, under the Act of 2005, are geographical areas of India, which are deemed to be foreign territory having economic and other laws that are liberal, and are not in conformity with the laws prevailing in other parts of the country. Though much noise is being made about the SEZ Act 2005, it is to be noted that SEZs existed in this country prior to the 2005 Act coming in force. Most of them were either under the control of the central government or state corporation. The following were the Economic Zones in the country prior to the Act of 2005. Andhra Pradesh (1), Gujarat (4), Kerala (1), Madhya Pradesh (1), Maharashtra (1), Rajasthan (1), Tamil Nadu (5), UP (2), West Bengal (3). The SEZs, prior to the Act of 2005, also enjoyed special tax exemption, but were subject to all the other laws of the respective states and the country. Under the SEZ, 2005 Act, they are zones having off shore banking units, special courts, 100 per cent tax holiday for 15 years, exemption from minimum alternate tax, no dividend distribution, exemption from capital gain tax, exemption from custom duty on goods/service tariff area, exemption of excise duty and exemptions galore. The SEZ 2005 Act has created islands within the country, dominated and controlled by the investor/promoter. As such the critics opine that security and sovereignty of the country is at stake. Not to be lightly dismissed!! The first SEZs came to be established in the People's Republic of China, in the Shenzhen Province in the 1980s, and are some of the most successful economic zones. Subsequently SEZs came to be developed in several countries - Brazil, India, Iran, Jordan, Pakistan, Philippines, Russia, Poland etc. The World Bank estimates that there are more than 3000 SEZ projects underway in 120 countries. The idea of the prevailing SEZ 2005 originated after the then Union Minister for Industries, Mr. Murasoli Maran visited China. He was impressed by the SEZs in China and its booming economy. More than 45 per cent of China's exports are from SEZs. Undoubtedly the intention of creating SEZs was to boost the economy of the country and to prevent it from being isolated, in view of globalisation. It gave rise to the 2005 Act, which came in force on June 23, 2005. India, since Independence, has been an agrarian economy. Billions were invested in agriculture and dairy farming. We had the White Revolution, and we have excess production of agricultural produce to export. Then, where has the SEZs 2005 Act failed? Why is there opposition to the establishment of SEZs? We have failed to understand economic development keeping in mind India's perspective, not China. The democracy in this country is deeply rooted and people are conscious of their rights, respectfully, may be less of our obligations. But the biggest democracy in the world ought to have its own economic agenda and not copy a nation whose people do not enjoy democratic rights and have almost no human rights. The violence at Nandigram, Singur District (Tata Motor's project) in West Bengal, Kalinganagus in Orissa, protests at Raigadh in Maharashtra and at Amritsar in Punjab, indicates that, SEZs 2005 Act and the manner in which the farmers were being divested of their land, a lot needs to be done in respect to SEZs Act 2005. Goa with a geographical area of 3702 sq. kms has 18 SEZs in waiting. This single example indicates that the SEZs policy has ulterior motives or lacks total application of mind. A policy formulated in the national interest must be made for the betterment of the nation as a whole. It should not create new slums and law and order problems in new localities. Such a policy can by no stretch of imagination be considered in the public or national interest. The employment register of the State of Goa has approximately 90,000 unemployed in its roll. An estimate of the number of jobs that SEZs will provide is 900,000 (as per the proponents of SEZs). Employment generated by SEZs is estimated to be 90 per cent highly skilled and specialized jobs, of these not more than 10,000 fall in highly skilled and specialized jobs in the register of the State. Then for whom are these jobs? What type of infrastructure has been put in place to accommodate these additional 9,00,000 population and their families, the State's present population is 13,43,998. The administration should be gracious to the people of Goa for not complaining violently about the restricted supply of water for 2 hours a day and many-a-time not even that, the electricity that trips every 15 minutes and at times we have to go without power for hours. Do we know the disaster we are inviting for the future generation of this State? The Peaceful nature of this State is taken for granted. Ideas are flowing for people's referendum only for Taluka levels on SEZs. Why only Talukas? Goa should be looked at as one entity. The disastrous effect of SEZs, the manner in which they are planned and sought to be executed will have a catastrophic effect on its culture, environment, crime and social system on the whole of the State. The violence in the northeastern states of Jarkhand, West Bengal, Andra Pradesh is on account of the failure, for ignoring the socio economic problems of the region and its unplanned development. "No child is born a terrorist in the mother's womb; it is the creation of the Society. No parent, after laborious service in bringing up a child would like him or her killed as a terrorist." It is in this context that we must consider the violence in Nandigram and the other areas of India. People there are battling for their survival and their rights. They fight daily against hired goons sponsored by vested interests. The SEZs cannot be established by force in the name of economy. Nor will they have a lasting peace and result in progress and prosperity, when hundreds of people had to shed blood to save their lands, which is their only livelihood. The proponents of SEZ must keep in mind that the battalions of our three armed forces are being replenished in thousands by people from regions and economies of our country that were subject to repression, violence and bullets and that this class is equally responsible and interested for the wellbeing and progress of the nation. People from the backward regions are responsible for India's unity, integrity and military development, why should the government displace them from their ancestral homes? Various leaders cutting across party and regional lines had the following to say: Medha Patkar: "They are not special economic zones but they are special exploitation zones" Ragunathan Rajan, Chief economist IMF: "Tax sops for SEZs are another give away which the government cannot afford." Kuldeep Bishnoi, Congress MP: "the main objectives behind development of SEZs is to facilitate land grab" Kiran Karnik, NASSCOM chief: 'all SEZs do is to lead to land grab and promotion of builders and promoters." Sonia Gandhi, Congress President and UPA Chairperson: "No prime agricultural land should be acquired for SEZs, SEZs are to come only on wasteland, farmers must get proper compensation and become stake holders in the projects of their acquired land" - the wisdom developed after much bloodshed !!!. It is admitted by the parliamentary panel that things ought to change and that new SEZs policy ought to be reconsidered, after 2005 Act, 154 SEZs have been given licences as on August 24, 2007. The parliamentary committee has recommended that no further SEZs should be notified unless the existing law is amended to incorporate the changes related to the land acquisition. Maximum area for the multi-product SEZs should not be more than 2000 hectares of land acquired if cultivable. Land ceiling to be fixed at 5,000 hectares. All land for SEZs should be taken on lease by the developers, there should be no transfer of the ownership. The socialist eyes when seen through the capitalist sunglasses are bound to see different prisms to suit their political objectives. " " " " The SEZ concept originally was to utilise wastelands to the optimum. Why was this concept changed overnight? This is a million dollar question. COMMENTS We have spoken to Adv. Joseph Vaz and congratulated him on the strength of the article. He has confirmed the authorship of this article. This is because the prefix Adv. is missing in the article and there are many Joseph Vaz's around in Goa and who write. It is an acknowledged fact that SEZs are ruthless engines of economic growth. That China has seen the economic boom through SEZs. That such set-ups are needed for India, a nation that has skilled labour in abundance, to compete in the globalised economy. However , our august planners should have realised that China is a dictatorship whereas India is the world largest democracy. China has been able to push its industrial growth with scant respect for environmental safeguards. It is said that China has polluted its environment to the extent that the damage done will come to haunt it in years to come. Instead of copying the SEZ text-book from China, India should have been very cautious, mainly because people of India enjoy democratic rights to choose what they want and to reject what is being shoved down their throats against their own legitimate interests. There should have been a calculated exercise for setting-up SEZs on experimental basis in waste-lands of bigger states like UP, Bihar, Maharashtra etc, where there is abundance of skilled labour. Center should have realized that un-polished and raw SEZ policy such as the one being implemented at present will never work in a state such as Goa where land is scarce, infrastructure is minimal and croaking, ready to come apart at the seams and more specifically, where Goa has neither the ordinary or skilled labour force. And if those who are at the helm of Goa's political affairs think that Goa has the obligation to employ in Goa every unemployed skilled worker in the rest of India to make hay for themselves while the sun shines, they have been sadly mistaken. Come 18th. December, 2007 these imposters will have to make a decision, irrespective of whether Delhi likes it or not, whether they like to hold on to the seats of power or be kicked out. goasuraj ----------------------------------------------------------------- GOA needs a 'REVOLUTION' if it is to see better days. Goasuraj is that revolution. It needs your support. email: [EMAIL PROTECTED] Website: www.goasu-raj.org Ph: 2266111 - (M) 9890470896
