--- On Tue, 28/10/08, CK VISHWANATH <[EMAIL PROTECTED]> wrote:


On Mon, Oct 27, 2008 at 10:23 PM, Sukla Sen <[EMAIL PROTECTED]> wrote:
> Reproduced below is the Abstract.
> For the complete text, look up
> <http://www.europe-solidaire.org/spip.php?article11799.>.
> Comments are highly welcome.
>
> Sukla
>
> Abstract
>
> In the recent days, the issue of Special Economic Zones (SEZ) has come to
> occupy a highly visible slot in the national discourse, particularly since
> early 2007 – fairly dramatically catapulted to the national centre-stage
by
> the blood-soaked and protracted mass resistance in, erstwhile obscure,
> Nandigram, in West Bengal.
>
> The idea, however, is not entirely novel – either globally or even
> nationally. Its earlier predecessors were usually termed as Export
> Processing Zone (EPZ), Free Trade Zone (FTZ) etc.
>
> The first EPZ in India, also the first in Asia, had been set up in Kandla
> way back in 1965. The Special Economic Zone Act 2005 came into force,
rather
> recently, with effect from 10th February 2006. Prior to that, the SEZs in
> India functioned, replacing the earlier EPZ regime, from 01.11.2000 to
> 09.02.2006 under the provisions of the Foreign Trade Policy. While the
idea
> of creating especially dedicated enclaves geared to export of products
> enjoying handsome special incentives runs through like a constant red
thread
> from the EPZ to the SEZ, the break-points are essentially defined in terms
> of (radical expansion of the) the scale of operation and their projected
> roles in the economy in general.
>
> The transition from EPZ to SEZ essentially coincides with and, in fact, is
a
> reflection of the momentous shift from the initial stage of "economic
> development" in post-colonial India with the "state" in the
driving seat in
> the form of building infrastructure, setting up of and owning major
> industries – particularly with massive investments and long gestation
> periods, providing necessary supports and protections to the nascent
> indigenous entrepreneurs to come up and assume much bigger roles in the
days
> to come. The current stage is defined by radically raised level of
> self-confidence and assertion on the part of the, by now fairly matured,
> Indian entrepreneurs – particularly its top layer, and consequent
salience
> assumed by private capital – indigenous, and also foreign, and the
> foregrounding of free-market philosophy, which, however, operates rather
> selectively – as in case of the SEZ itself.
>
> The objections to the SEZ are mainly on three counts: (i) displacement
> caused by land acquisition for the SEZs; (ii) revenue loss suffered by
> national exchequer on account of massive tax concession; (iii) the various
> implications of SEZs as quasi city-states.
>
> The resistances on the ground, which are fairly widespread and at places
> pretty massive, are, however, only on the first count.
>
> The snowballing resistance has been, to a significant extent, able to make
> its presence felt. The two most spectacular success stories are Nandigram
> and Goa. Quite significantly, the ground rules of operation of the SEZ
have
> since been modified. A new R&R policy is notified. And the Land
Acquisition
> Act is due to be amended.
>
> But the fundamental driver for the SEZ, the shift in the conceptual
> framework of "economic development" – a decisive and brazen
tilt on the part
> of the state in favour of private capital – indigenous and foreign, and
> "free-market" – is yet to face any major threat.



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