Russian Trade Profile Research Paper Example | Topics and Well Written Essays - 750 words - 2

Russian Trade Profile - Research Paper Example With regards to imports, the nation brings in food, pharmaceuticals, foot wear, textiles and ground transports (Lalayants p 41). The principal trading partners of Russia include China that controls 7% of total exports and 10% of total imports. Germany dominates over 7% of exports and about 8% of the total imports.In 2013, the Russia Federation's merchandise exports reduced by 1.1% despite the fact that the exports increased by 11.2%. This was a poor performance in relation to the Asia-Pacific's collective growth of 2.1% in merchandise exports, but higher than the region's 4.9% rise in service exports. The service imports grew by 18.2% while the merchandise imports rose by 2.2%. This trade surplus remained stable reaching $ 180 billion in 2013 as shown in figures 1 and 2. This resulted in the growth of GDP and GDP per capita ("Asia-Pacific Trade Briefs: Russian Federation").Russia also experiences the largest expansion in FDI inflows in 2013, that increased with 56.7% to $ 79 billion. This growth has been strong since 2011 surpassing the regional total of 6.6% for 2012 whereby the outflows were larger than the inflows. The outflows in 2013 grew by 94% reaching $ 95 billion as shown in figures 1 and 3 ("Asia-Pacific Trade Briefs: Russian Federation").Cyprus was Russia's largest investment accounting for 18% of the FDI inflows. It reflected her repatriation of the earlier investments caused by the Cyprus financial problems. This resulted in the creation of more employment.

IKEA's Global Strategy - Furnishing the World Essay

IKEA's Global Strategy - Furnishing the World - Essay Example The entrance of IKEA into Germany has been unbeaten because of low prices of IKEA’s products. Although Germany was a mature market and various established retailers were attracting the major consumer segments, still IKEA enlarged the market and changed the competitive position because even the established retailers adopted the formula of IKEA in their own operations. In Germany, unlike traditional retail stores, IKEA introduced lean organizational strategies through which it enhanced responsibilities and freedom of employees. These strategies energized employees by increasing their motivation level. Canadian market was also a mature market, however, IKEA through its full advertising campaign, positive word-of-mouth and newly recruited local suppliers, energized Canadian market and successfully established its position. Moreover, in Canada, lean organizational practices were welcomed. In the huge and mature market of U.S. IKEA established it position by catering to the local ta ste and tapping into local expertise through franchising, acquisitions and joint venture. Therefore, IKEA’s practices insisted the competitors to reconsider their pricing strategies, advertising strategies, product features and management styles. It has analyzed from case study, that most of the markets which IKEA has targeted, word-of-mouth remained the best effective advertising strategy of the company however, in the U.S. market more focused media-advertising was required. IKEA through its TV advertising campaign touched the personality, life style and emotions of people and encouraged the sales of company. Through this campaign IKEA actually changed the furniture buying behavior of the consumers in the United States. The series of eight TV advertising spots was featured in such a way that every consumer in the U.S. could associate himself/herself with one of the series. Therefore, after this campaign, consumers started buying furniture not only to furnish their living space but as a matter of their lifestyle, personality and emotions. The campaign benefited IKEA because other companies in the U.S. were spending huge in advertising to stay in the business, whereas, by changing the behavior of consumers towards furniture, IKEA grew its customer base.     

Various Motivational Theories Essay Example for Free

Various Motivational Theories Essay In the early 1920s Walter Chrysler, a retired president of Buick and vice-president of General Motors arrived at the ill-fated Maxwell-Chalmers company. The company has been losing ground for years and they need somebody who has experience and innovation to keep it on the ground. He was hired to organize the company’s downhilled operations. Unfortunately, the partnership between Chalmers and Maxwell ended in the late 1923. Having to deal with the ailing Maxwell, Chrysler still tried to rescue the company through innovation and experimentation of his car designs. In January 1924 his long time project and prototype came into complete being, was introduced in the American market and was well-received. The Chrysler Six Automobile has a 6-cylinder engine, well-engineered and has an advance design but was most affordable to the standard American. In 1925 when Maxwell needed an overhaul with its management and its system, Chrysler re-organized it to form a solid and well organized company. On June 6, 1925, Walter P. Chrysler introduced Chrysler Corporation to the world and became the president. Chrysler’s era was full of challenges as he introduced classic cars that were in balance with the style of yesterday. Ford Motor Company and the General Motors Corporation was the clear competitor in that period and with the popularity of car sporting, Chrysler introduces the Plymouth to be the best car any sport racer could ask for. As the years entered the 1950s, there was an established dominance with the three major American automobile companies and that is to mass produce cars of their every design in order to gain advantage of client’s trend. These 3 major companies were all located near Detroit, Michigan and were all rapidly expanding in the domestic market. Even with a little competition from foreign competitors, the industry grew rapidly, producing bigger and better and affordable cars to match changing consumer choice of style and needs. Regarding the cars as necessities, interstate highway system was constructed for the transition from urban to suburban areas and traveling has never been easier and enjoyable. The time of the automobile had arrived and contributed much too fast to industrialization. Decades after the Second World War there was a slight setback in American automobile industry. In the late 1960s the American automakers are having adversarial relationships with their suppliers. The cost of the materials in manufacturing car supplies and equipment could not support the fast modernization and production of the car industry and therefore resulted in production inefficiency. The end result was suffering for the suppliers. There was the need for outsourcing of component parts and supplies and competitive biddings were done by the car manufacturers to maintain productivity. The car makers even forced the suppliers to give them a steady supply of materials although there is already the problem on high production cost for supplies. This trend resulted in a highly competitive market structure among automotive makers wherein the large buyers are able to abuse smaller parts and component makers. The 1970s was the decade in the introduction of foreign cars by the Japanese. Theirs were smaller, less expensive and more fuel efficient than the large and gas consuming American cars. Their method of company management was also recognized by the Americans as strict but with direction, disciplined but precise and particular but with best quality control measures. This was now the global competition for car manufacturing. The 1980s was the decade for the Japanese automakers to celebrate. They were making cars what the people needs- small but trendy and comfortable. Able to join the free world market the Japanese are having momentum in the car manufacturing industry in the world market and are selling good. This looks like trouble to the American manufacturers. Although there was the opening of gate to foreign exporters the carmakers of America directly advised the Japanese to regulate the exportation of cars to the US or else their own industry would be in trouble. The Japanese complied with the concern of the Americans. In effect the Americans allowed the Japanese to put up and run their own car manufacturing plants in the US soil. From 1980 and 1990, Japanese automakers led by Honda, Mazda, Nissan and Toyota totally invested $5. 3 billion in North America for cars alone. The Japanese are well known for their discipline, dedication and hard work. They do this with their lifestyle and even to work. Their production style and manufacturing practices give them superior support in terms of efficiency, quality assurance and economy. To be able to protect American’s position in their share in the domestic market and to be able to compete in the global economy the Japanese served as good examples for the Americans in their car manufacturing business. Daimler-Benz purchased Chrysler in 1998 and later changed the name of the company into DaimlerChrysler Motors Company LLC. The company became the fifth largest auto maker in the world with estimated annual revenue of $130 billion. The merging of two large companies resulted in a workforce of 421,000 employees worldwide and declared to be a merger of equals thought evidently Daimler-Benz is the dominant partner. Chrysler went into another crisis after this union. The year 2001 was the phasing-out of The Plymouth. Cost-cutting plans were done by sharing of components as well as platforms. The result of this program was the development of the Chrysler Crossfire which has a strong influence by the Mercedes. By the year 2004, the Chrysler 300 and the new introduced Hemi V8 became the top selling brand of the company. The restructuring efforts have contributed to the company’s financial performance as well as the introduction of the these two new brands to the world market.. The partnership of Mitsubishi and Daimler-Chrysler also ended as Daimler divested most of its shares in the firm and also due to Mitsubishi’s diving sales worldwide. Today, the European Commission has approved of the U. S. buyout firm Cerberus Capital Management (CBS) to purchase carmaker Chrysler from DaimlerChrysler (DCXGn) and the deal was approved under basic procedures because nobody lodged any objection, the Commission said. Without any option DaimlerChrysler conceded to sell most of its shares and some of its services that concerns with financing to Cerberus (Reuters, 2007). Meanwhile, the Chrysler Group with the need to restructure its field organization has created five Regional Business Centers to have focus on sales for each region. Every center is empowered to make plans relative to the car’s accessories and parts, incentives and its market. The five Regional Business Centers are located in Detroit, New York, Orlando, Dallas and Los Angeles. The centers will be supported locally with enough assistance such as Finance, Legal, Marketing, Parts Service, Fleet, Customer Relations, Training and Warranty personnel. There would be a need for downsizing staff and re-deployment to the Regional Business Centers. This is done to directly service the dealers and the local markets. It was assumed that the restructuring in the organization will be faster, more responsive and more efficient. (Group, 2007) After many years of pitfalls and improvement and the innovation of cars to the new world, Chrysler has experienced lots of changes and loses just like any giant companies which dominate the car world for decades. Chrysler has been employing many personalities known for their superior management style and productivity. But business is business and there is always a change of climate and trends. Although over the years the primary concern of the car industry is always focused on saving the company with output expenses but maintaining quality and sales, the internal problem would always affect the company’s growth and existence. Now that Chrysler has a new and restructured organization and plans, the need for other strategies to improve productivity is needed. Within the company, jobs are created and sometimes are getting lost too. Ironically, there must be the feeling of hopelessness of the employees because they knew that working with a company that had strived, lose and survived again seems to bring worries. Nobody knows the future and this sometimes causes demoralization to the individuals. Management has always been changing and it only put shivers to every employee that another management who has the capacity to run the company is now looming their heads. This is where enhanced motivations to drive force to the working people must be employed. Motivational strategies are required to every company to lit up the workers into working more, produce more, and be happy about it. But one thing is for sure. Motivation improves when everything in the organization is organized. So the keyword here is â€Å"Organization†. To top it all, the characteristic of a good organization can best be described if everything being done inside the workplace is meaningful to the workers. One of the best methods the organization must include is the injection of beneficial related tasks to the task that were already in practice. A positive environment greatly contributes to the worker’s attitude inside the workplace. Erroneous beliefs, wrong assumptions and expectations that may bring negative learning and guilt must be faced with positive confrontations. If needed, any indication or components that may lead to failure or fear must be removed. Activities that allow the employees to learn should always be advocated. Within an organized institution, an observation for any discontent within the workforce must be enforced. Make the employees involve themselves with the plans, giving them options on how to be more productive. Involve them with all the tasks that require acceleration of learning, interest and efficiency. Organize them so they can have smaller groups and provide them the right to choose their group leaders which can also motivate them to relate and work with bigger groups. From a small group with group leaders into teams and team leaders, this could essentially form a network of supporters for every cell within the organization and company. Sharing is one big factor that emanates from each member of an organization to the top management. Sharing is learning, learning is giving the company the capability to be more adept and ready with any internal and external changes. In conclusion, there must be a continuous supply of feedback particularly to the management. It must recognize that the progress of the company begins from the workforce. If the company does not recognize that there is always the feeling of discomfort and lack of interest to be productive. Recognition breeds motivation. Chrysler has already evolved into a giant corporation and already withstands difficult times. It had already recognized and imitated the work ethics of the Japanese and it still has enough manpower and brains to stir its way to top. Lots of management changes must have contributed to the adoption of different management style and quality employment within the company. But the company must always have to choose the best and not the easiest methods. Motivated people provide growth and stability to the company. Loyalty and trust of all the people within is the best way to avoid losing the best assets of the company. The people within are the driving force of an organization. References Group, C. (2007). Chrysler Group Restructures Field Organization To Empower Local Management [Electronic Version] from http://www. prnewswire. com/cgi-bin/stories. pl? ACCT=105STORY=/www/story/03-26-2001/0001455476. Reuters. (2007). EU Approves Purchase of Chrysler By Cerberus [Electronic Version] from http://www. bnet. com/2407-13071_23-93331. html.

Analysis of the Strengths Based Model

Analysis of the Strengths Based Model A quality construct methodology works in light of the suspicion that individuals have qualities and assets for their own particular strengthening. In quality based- approach the emphasis is on the individual and their qualities and capacities not their inabilities. Quality base techniques dont overlook issues yet move the edge of reference in the issues. Quality based methodologies supplement the model of social incapacity. Key components of quality base methodology: A emphasis on qualities, not shortcoming ,issues or shortages The man is in control and nothing is done without their regard The group is an asset not a hindrance People keep on learning, develop and change regardless of what their handicap Assessment Formative directions cant be completely comprehended without an incorporated concentrate on pathology and fitness (Masten Coatsworth, 1995) and exploration has demonstrated that adolescents qualities are as critical to consider as their shortcomings in comprehension potential for succeeding in every aspect of working (Garmezy, 1993; Kirby Fraser, 1997). While not all kids who experience noteworthy hazard at last experience negative results, most youngsters who have a mixed bag of qualities experience sound results (e.g., Masten, Hubbard, Gest, Tellegen, Garmezy, Ramirez, 1999).However, a great part of the act of recognizing understudies necessities is taking into account a shortage model, which concentrates on issues, for example, handling deficiencies, poor accomplishment, and social-passionate troubles keeping in mind the end goal to endorse mediation programs. The accessibility of numerous psychometrically solid instruments to survey emotional sickness and handicap manages this deficiency center (Epstein, 1999). Despite the fact that therapists, social laborers, and advocates have created casual methodologies for quality based appraisal, the exact acceptance of appraisals inspecting youth qualities is in its initial stages. Unpretentious yet noteworthy contrasts between different terms connected with flexibility need to be precisely characterized so as to illuminate different phenomena under study. Terms, for example, hazard factors,protective variables, resources, and flexibility all speak to particular components that are regularly connected with specific models proposed to clarify versatility. A danger component is any impact in a youthslife, whether natural, behavioral, ecological, socio social, or demographic, that expands the likelihood of a negative result. Then again, a defensive variable is characterized as any impact in an adolescents life that declines the likelihood of a negative result (Kirby Fraser, 1997). Anxiety is a condition coming abou t because of an individuals apparent powerlessness to meet life requests that debilitates the capacity of the person to capacity effectively . Planning Numerous individuals now perceive that our perspective of, and reaction to, individuals with incapacities needs to change definitely in the event that they are to be offered admiration, poise and chances to lead esteemed lives in our groups. An increasing amount, individuals are recognizing that natives with inabilities, similar to whatever remains of us, are individuals with dreams, endowments and abilities who need to carry on with a decent life. By concentrating on individuals endowments and dreams – instead of limits a noteworthy movement has happened in the routes in which choices are made about individuals and the courses in which they are helped to live in their groups. This has implied that: We need to invest as much energy as important listening to individuals as people and giving chances to individuals to recognize their fantasies for the present and future; and  The routes in which we give help to individuals needs to regard singular objectives and goals and bolster individuals to do the things that will permit them to live conventional lives. On account of individuals who dont impart well –or not in any manner with words, we have to perceive that it is our obligation to figure out how they do convey and to adjust ourselves to their ways. Finding out around a mans fantasies, abilities, and what makes him or her interesting; Helping persons to decide solid dreams and objectives and the approaches to accomplish these. Recognizing what is happening at this point. Recognizing other persons to enlist to help achieve the objectives. Discovering approaches to manufacture quality to fulfill the objectives (for instance, what aptitudes need to be created or what connections kept up). Coordination The mission of Coordination is to assist persons with developmental disabilities and other groups needing assistance in determining and meeting their needs in ways they prefer. The organization works to do this by assisting individuals to become active members of their communities with equal rights and responsibilities. Service Coordination helps people develop and obtain high quality supports and services that are the least intrusive to meet their desires and needs and support their personal goals. Service Coordination believes that each persons values, dignity, happiness, and rights must be respected Services. Administration Coordination is an association that plans anticipates people with formative handicaps in light of the trusts and longs for these people. With the conviction that individuals with formative incapacities are qualified for the same rights as others, Service Coordinators help people in finding assets and bolstering for themselves, such that their needs are persistently met. strength Quality construct model centers with respect to the quality of the elderly individual as opposed to on their shortcoming, issues or deficiencies. The elderly individual is the primary in control and there is no hope without its approbation. All things considered, the support and right to assent from the elderly is worked out. Another quality to consider is that the group serves as an asset as opposed to a hindrances. Furthermore, in conclusion elderly individuals keeps on learning ,develop and change regardless of what their maladies and handicaps are. Weakness One conceivable destruction of the model is that it will get to be inadequate in the piece of the more established individuals if there is absence of coordination among different areas of wellbeing and human administrations assigned for them. Another shortcoming of this methodology is that obstructions might potentially happen which will impact the effectivity of this model. Boundaries here and there exists in executing confirm based practice among the quality of the more established individuals. Point of view Appraisals are considered in a social responsive way to distinguish assets that can expand administration interest and backing the accomplishment of settled upon objectives. Engagement and evaluation are portrayed by the accompanying: a. sensitivity to the ability of the individual or family to be locked in b. a non-debilitating way c. respect for the individual, self-sufficiency and classifiedness d. adaptability Social responsive evaluation can be incorporate the more established individuals decision or inclinations in regards to dialect of decision and religious, racial, ethnic and social foundation.

Financing the Future Essay -- Essays Papers

Financing the Future The Quest for Educational Equality "So", writes the immortal Dr. Seuss, "be your name Buxaum or Bixby or Bray or Mordecai Ali Van O'Shea, you're off to Great Places! Today is your day! Your mountain is waiting. So†¦get on your way!" Unfortunately, unlike the graduating class this speech was addressed toward, many students in today's urban education system are not of to "Great Places", and will never get the chance to move mountains. These students attempt to learn without textbooks, proper laboratories, or even pencil and paper. The schools are falling apart around these children; in some cases sewage continuously floods the halls, the crumbling roof cannot shut out the weather, and there are even gapping holes in classroom walls. It is definitely not "their day". The problem with our education system finds its roots in funding. We live in a capitalist society where some have the money and others do not. In a poor community, where a family struggles just to put food on the table to feed their kids; the funding necessary to support the schools just is not there. Conversely, in a wealthy community, where the families never go hungry or worry if they will have shelter over their heads, there is a comfortable pool of funds to support their schools. This creates a clear division between the poor schools in urban areas and the wealthier suburban schools. The Wall Street Journal once wrote that "Money doesn't buy better education†¦The evidence can scarcely be clearer" (Kozol 133). They argue that the per-pupil spending has increased, while test scores and other student achievements have remained the stagnant. This conclusion, however, was based on the fact that the spending rate had increased in both urba... ... you will say, 'I don't choose to go there.' With your head full of brains and your shoes full of feet, you're too smart to go down any not-so-good street." Unfortunately, like so many of our improperly educated, it looks like our schooling systems are going down that "no-so-good street" and we must use our "head full of brains" to turn away and fix the inequalities right before our eyes. Works Cited "Addressing Violence in Oklahoma." The Addressing Violence in Oklahoma Coalition. June 1995: pg. 1. Online. Internet. 16 November 1997. Giuliani, Rudolph. "A vision for education". 11 August 1995. "It's Not the Money, It's the Principal." Editorial. TIME 27 October 1997: 92. Kozol, Jonathan. Savage Inequalities: Children in America's Schools. New York: Crown Publishers, Inc., 1991. Seuss, Dr. Oh, the Places You'll Go! New York: Random House, Inc., 1990

Privacy and Confidentiality in the Electronic Medical Record Essay

It was just yesterday when Electronic health records was just introduced in healthcare industry. People were not ready to accept it due to higher cost and consumption of time associated in training people and adopting new technology. Despite of all this criticism, use of Internet and Electronic Health records are now gaining its popularity among health care professionals, as it is the most effective way to communicate with patient and colleagues. More and more hospitals and clinics are getting rid of paper base filling system and investing in cloud base storage. According to HIMSS The Electronic Health Record (EHR) is a longitudinal electronic record of patient health information generated by one or more encounters in any care delivery setting. It includes information from patient demographics, medications, to the laboratory reports. Introduction of Electronic Medical Records in healthcare organizations was to improve the quality care and to lessen the cost by standardizing the means of communication and reducing the errors. However, it raises the â€Å"eyebrows† of many when it comes to patient confidentiality and privacy among healthcare organization. The Problem is 1. Transfer of Information- The problem is remote access of the health records and pooling of large number of data for various purposes like research program and lab work, may lead to an error and confusion. 2. Lack of information centralization- Many patients keep their own records of blood sugars, weight and blood pressure by using various Internet tools. However, healthcare providers cannot access these records because they cannot streamline those records with EHR. 3. Security theft - Internet tools like Google health and Microsoft Vault provides conveni... ...idence of users by agreeing to the policy that the data submitted to their cloud platform will be kept confidential. (Ryan, 2011) The cloud computing is still under development but if it can manage to maintain information privacy and confidentiality than it will become revolutionary in healthcare field. And we never know, in future science and technology might introduce more advanced level of apps and service with enhanced level of privacy and security measures. Patient personalized health cards are also long underling technology that might provide patient a freedom of owning his/her PHI. Transferring data from one hospital to another wouldn’t be a challenge with this password protected health cards. Privacy wouldn’t be much of an issue as all the information is stored in the chip of the card that can be retrieve by a healthcare provider or by patient when needed.

Sez- Challenges Before Indian Economy

Mundhe. Dept. of Business Economics, Siddharth College of Comm. & Eco. Mumbai. SEZ – Challenges Before Indian Economy Introduction : Over the years it has been seen that the growth rate of the Indian economy, employment generation, improvement in the standard of living of the people has not been as expected.It was realized that foreign (and even domestic) investments in India were much lesser as compared to the much smaller South East Asian countries mainly due to multiplicity of controls and clearances, absence of world class financial infrastructure, etc. With a view to overcome the shortcomings experienced in attracting investments, increasing exports and accelerating economic growth the Special Economic Zones (SEZs) policy was introduced by the then NDA government in April 2000.This policy intended to make SEZs a tool for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimu m possible regulations Further, to instill confidence in investors and signal the Government’s commitment to a stable SEZ policy regime and with a view to impart stability to the SEZ regime thereby generating greater economic activity and employment through the establishment of SEZs, a comprehensive draft of SEZ Bill was prepared after extensive discussions with the stakeholders.The over enthusiasm to push the SEZ policy as an instrument of rapid industrialization has met with a series of roadblocks especially after the Nandigram incident. The SEZ policy is a part of the policy of â€Å"Growth at any Cost†, with the cost falling on the marginalized section of the rural population. Thus, those who gain and those who lose will be different sections of the population. This simply means that the SEZs are not Pareto-optimal over a situation where SEZs are absent. Therefore, this policy can lead to various socio-economic and political challenges.Meaning of SEZs? The Special Economic Zones (SEZs) are well developed enclaves of industrial infrastructure with plots, built up space, power, water supply, transport, housing etc. Besides industrial facilities, the SEZs provides social infrastructure including schools, hospitals, roads, hotels and the like. The SEZs are specifically delineated areas wherein units may be set up for specified purpose of manufacturing or trading or rendering services or providing warehousing facility for exports.In terms of the Section 2(i) of the said SEZ Act 2005, the Domestic Tariff Area (DTA) is defined to mean the whole of India (including its territorial waters and continental shelf) but not including the areas of SEZs. Furthermore, section 53 of the said SEZ Act provides that the SEZ shall be deemed to be a territory outside the Customs territory of India. The legal implication is that the SEZs are treated as the foreign territory for the purpose of trade operations, duties and tariffs.In other words, goods and services go ing into the SEZ (from the DTA) are treated as exports and goods and services coming from SEZ into the DTA are treated as imports. Therefore, domestic laws do not generally apply to the SEZs and the units therein. In short, SEZs will be considered sovereign territories of MNCs setting up shops there and ordinary Indians will require passports to enter these enclaves. Historical Background & SEZ Act: The SEZ Act was enacted only recently, in 2005, but the origin of the SEZ scheme can be traced to as far back as 1965 when the Kandla Free Trade Zone (FTZ) was started.Thus there were Export Processing Zones (EPZs) in the country well before the new legislation was enacted, but these were few in number (only eight, operated by Central Government) and did not have a major impact on exports or investment. This led to a comprehensive review of the policy framework for existing EPZs/FTZs In 1999, which included a study of many SEZs world-over. The finding of the study was that there was scop e for significant improvement in export performance through policy changes relating to DTA access, export obligation, etc. The concept of SEZ was given to India by late Shri.Murasoli Maran, former Union Commerce Minister. During his China visit he had a occasion to visit some of the SEZs in coastal regions of China. He observed the contribution that these SEZs have made to the Chinese exports and was deeply impressed by the progress achieved by SEZs and their overall impact on the economy. Back at home, he introduced the concept of SEZs in the EXIM policy-2000. He was very much interested in creating some SEZs in India and develop them on the lines of SEZs in China. He wanted to use the concept of SEZs to achieve a speedy economic growth in India.As a result, the Special Economic Zones Act was passed by Parliament in May, 2005 which received Presidential assent on the 23rd of June, 2005. After extensive consultations, the SEZ Act, 2005, supported by SEZ Rules, came into effect on 10 th February,2006, providing for drastic simplification of procedure and for single window clearance on matters relating to Central as well as State governments. Objectives of SEZs: The SEZs are primarily viewed as elements of the Government’s export promotion strategy but that is not entirely correct. They are expected to benefit the economy in multiple ways, as spelt out in Section 5 of the said SEZ Act.Herein it is provided that the following factors should be considered by the Board of Approvals in Approving proposals to establish SEZs: (1) Generation of additional activity (2) Promotion of exports of goods and services; (3) Promotion of investments from domestic and foreign sources; (4) Creation of employment opportunities; (5) Development of infrastructure facilities; It is expected that this will trigger a large flow of foreign and domestic investment in SEZs in infrastructure and productive capacity, leading to generation of additional economic activity and creation of employment opportunities.Here it is important to mention that in case of India, the key element for the success of SEZs are political will and commitment, removal of bureaucratic hassles, labor reforms, better fiscal incentives and continual review and monitoring of the functioning of SEZs and adoption and application of correctives. Criteria for Approvals: 1) SEZ size not to be less than 1000 hectares, recently it is scaled down to 5000 hectares & further to 1000 hectares (2) Sector specific SEZ can be set up in lesser area 3) Local Laws, Rules / Regulations applicable to SEZ & Units there in (4) Units to be approved under the SEZ scheme, by the Unit Approval Committee headed By the Development Commissioner. (5) The minimum processing area limit has been fixed at a Uniform level, at 50% of the total land acquired, for multi product and sector-specific SEZs Scheme to Develop / Operate / Maintain SEZ: The SEZs can be developed and managed either jointly or separately by the Central Government, State Government, or Any Person (including a Private orPublic Limited Company, Partnership or Proprietorship), for manufacture of goods; or for rendering services; or for both; or as a free trade and warehousing Zone. Incentives for Developers of SEZs : Developers and SEZ units shall be entitled to the following exemptions and concessions: 1) Exemption from customs duty on goods imported into the SEZ by the Developers or SEZ Unit to carry on the authorized operations; 2) Exemption from customs duty on goods exported from the SEZ by the Developer or SEZ Unit to any place outside India; ) Exemption from excise duty on goods brought from Domestic Tariff Area (â€Å"DTA†) to the SEZ by the Developers or SEZ unit to carry on the authorized operations, 4) 100% Income Tax exemption on export income for SEZ units in the first 5 years and 50% for the next 5 years. 5) Exemption from service tax on taxable service provided to a Developer or unit to carry on the authorized op erations in a SEZ 6) 100% of the profits of the developer arising from the business of developing an SEZ, shall be deducted from taxable income ) The developers of SEZ are not required to pay Minimum Alternate Tax. Challenges before Developing Economies, A Case Study of China: The SEZs policy is a part of the policy of â€Å"Growth at any Cost†, with the cost falling on the marginalized section of the rural population. Thus, those who gain and those who lose will be different sections of the population. This simply means that the SEZs are not Pareto-optimal over a situation where SEZs are absent. Therefore, this policy can lead to various socio-economic and political challenges.China is a shining example of a country which has developed through its SEZs. But this image of success of Chinese SEZs is both incomplete and incorrect. They have by no means been an unqualified success, and they have brought about severe economic and social problems. We have taken the case of SEZs in China and analyzed the effects on arable land, water, environment, health, income equality, poverty, etc. Some of the most striking effects of SEZs in China are as following: 1) during the period of 1996-2005, SEZs in China, have caused diversion of more than 21% of arable land to non-agricultural usage.Per capita land holding now stands at a meager 0. 094 hectares. This is when China has to feed 22% of the world’s population on only 7% of land, and every year, an additional 10 million people have to be fed. As more arable land is taken over for urbanization and industrialisation, issues related to changes in land use have become a major source of dispute between the public and the government. 2) In just thirteen years, between 1992 and 2005,about 20 million farmers were laid off agriculture due to land acquisition for SEZs.Protests against land acquisition and deprivation have become a common feature of rural life in China. Social instability in China has become an issue of concern. In 2004, the government has admitted to 74,000 riots in the countryside. 3) Whereas a few years ago, excessive and arbitrary taxation was the peasants’ foremost complaint, resentment over the loss of farmland, corruption, worsening pollution and arbitrary eviction by property developers are the main reasons for farmers’ unrest now. 4) China set up its first SEZ, Shenzhen in 1979.After growing at a rate of around 28% for the last 25 years, Shenzhen is now paying a huge cost in terms of environmental destruction, soaring crime rate and exploitation of its working class, mainly migrants 5) In 2006, the United Nations Environment Programme designated Shenzhen as a â€Å"Global Environment Hotspot†, meaning a region that had suffered rapid environmental destruction. 6) According to Howard French, the New York Times Bureau chief, most of the year, the Shenzhen sky is thick with choking smoke, while the crime rate is almost nine- fold higher than Shanghai.The working class earns US$ 80 every month in the sweatshops and the turnover rate is 10% – many turn to prostitution after being laid off. Further, real-estate dealers have stockpiled houses which have caused prices to spiral and have created a new generation of people, French calls them as, â€Å"Mortgage Slaves† in an article in the International Herald Tribune on 17th December,2006. 7) The mindless pursuit of growth following the model of high input, high consumption and low output has seriously impacted the environment.In 2004, China consumed 4. 3 times as much coal and electricity as the United States and 11. 5 times as much as Japan to generate each US$1 worth of GNP, according to the The Taipei Times, some 20% of the population lives in severely polluted areas and 70% of the rivers and lakes are in a grim shape. 8) Around 60% of companies that have set up units in the country violate emission rules. According to the World Bank, environmental problems are the cause of some 3,00,000 people dying each year.The Chinese government has admitted that pollution costs the country a staggering $200 billion a year – about 10 % of its GDP. 9) While export-driven policy for economic growth has helped China touch record growth figures, the income gap is widening and rapidly approaching the levels of some Latin American countries. Going by a recent report by the Chinese Academy of Social Sciences, China Gini coefficient – a measure of income distribution where zero means perfect equality and one is maximum inequality – touched 0. 96 in the year 2006. In comparison, income inequality figures are 0. 33 in India, 0. 41 in the US and 0. 54 in Brazil. Further, the rural-urban income divide is staggering – annual income of city dwellers in China is around US$1,000 which is more than three times that of their rural counterparts. 10) In certain areas such as asset distribution or years of schooling China’s levels of inequality ar e lower (i. e. , more favourable ) than India. However, when one looks at it at the aggregate level, the picture is different.The levels of inequality in China have been rising through the last three decades, whether between rural and urban, within them, or on an aggregate basis. According to Zhu Ling, between 1978 and 1995, the Gini coefficient of rural income increased from 0. 21 to 0. 34 and that of the urban from 0. 16 to 0. 28. 11) With the Chinese economy opening up rapidly post – 1995 and also due to the massive concessions that China was forced to make in order to join the WTO, the trend continues and the aggregate Gini coefficient in 2006 was around 0. . Lessons India should learn from China: There are far reaching negative impacts of SEZ policy in India. It is normally advocated that India should learn from China. It is big failure there in China on the grounds of food shortages that may arise in future due to land acquisition, environmental problems etc. , therefor e India should consider the following while implementing the policy of Special Economic Zones – 1) Following China, India is replicating a similar model where vast tracts of a agricultural land are being acquired for creating SEZs and other industries.Therefore it will have the similar impact on the environment as in the case of China, as the dirty industries may enter in these zones. Further with drastic changes in labour laws favouring industry being considered, the plight of workers in these SEZs will be similar to those in China. Hence, such a model of development is environmentally unsustainable and socially undesirable. 2) It is now widely acknowledged that Chinese exports have also been boosted by its undervalued currency something which is turmed as an â€Å" effective subsidy†. This is a luxury that Indian exporters do not enjoy.Therefore, the argument for setting up SEZs to emulate China’s export-led growth is questionable. 3) Is export-driven growth t hrough SEZs desirable for India? There is no doubt export play a significant role in boosting GDP. However in the case of a country with a sizable domestic market, the choice lies with the producer to either export or supply to the domestic market. 4) According to Ila Patnaik of the National Institute for Public Finance and Policy, household consumption in India at 68% of the GDP is much higher than that of China at 38%, Europe at 58% and Japan at 55%.Given the high level of consumption of Indian households, it is quite possible that this rush to set up SEZs in India is fuelled not by the desire to export out of the country but by the possibility of exporting from SEZs into the Domestic Tariff Area (DTA). The SEZs act is also designed to facilitate this. Any unit within the SEZ can export to the DTA, after paying the prevailing duty, as long as it is a net foreign exchange earner for three years. It is therefore a win-win situation for these units. ) The soaps in a SEZ will reduce t he cost of capital while labour reforms will ensure trouble-free operations. Further, given the considerable international pressure to reduce industrial tariffs, SEZs will be able to export to the DTA at highly competitive prices. This does not augur well for units outside the SEZs who will now face unfair competition. As cheaper imports have already played havoc with the livelihoods of artisan sector of the economy, cheaper imports into DTA from SEZs will also adversely affect the domestic.No wonder many of them now want to migrate into SEZs. 6) In a country with 65% of the population depending on agriculture as a means of livelihood, industry ought to be complementary to agriculture. Though SEZs however, industry is being promoted at the cost of agriculture. This is the reason why Indian farmers all over the country are not willing to depart from their farm lands. It is witnessed on 21st Sept,2008, where 85% of the farmers from Raighad District have voted against the SEZs. ) Valua ble resources spent to create SEZs will be at the cost of building better infrastructure for the rest of the country, something that will affect both the domestic industry as well as agriculture. Challenges before Indian Economy: Given that India’s socio-cultural and economic scenario is altogether different from that of China’s, it is debatable whether SEZs prove to be a success here. In the words of, Sunil Rallan, MD of Matadee Eco Parks,† The Indian government’s SEZ policy is superior to China’s in terms of legislation but has failed in the implementation process. Thus while SEZs may be loudable idea it is doubtful whether it is the right policy for the basic problems of heterogenous country like India. Replicating the Chinese model, India may end up not only with insufficient SEZs but also with reintroduction of the era of famines, water crisis, riots, pollution, etc. , and many more socio economic and political problems. We have taken the case of existing SEZ units (and the units which are slated to be set up in days to come) and analyzed their socio-economic effects on the Indian economy. 1) Threat to Food Security:According to the website of the Commerce Ministry, totally about 41,700 hectares of land is to be taken for the formally approved and notified SEZs. Land acquired on such massive scale has posed a threat to the food security of the country. Already, India’s food security is in a precarious state and the country has to import food grains including wheat, pulses and oilseeds. In this scenario if our arable land is diverted to establishment of SEZs, it will create a major food security problem in the country.Studies in West Bengal have shown that loss of food grains production due to SEZs would be of the order of 1. 5 million tones. This can create a serious shortage of food grains in the coming years. 2) Threat to Water Security: The SEZs are going to be set up by acquiring huge tracts of land. When the l and is acquired on such massive scale, the water requirement for such SEZs would be huge and would have very large impact on water access for the surrounding area. The SEZs at such locations will also have impact on irrigation and agricultural development.Available information about the water needs and sources of water for various SEZs should ring alarm bell. For example, the massive water demand, at least 8 million liters per day, for The Mahamumbai SEZ is to be met by the Hetwane and Morba dams in Pen and Khalapur tehsils in Raigarh districts. In a situation where, farmers had to struggle to get irrigation water due to them from these dams, the huge water requirement for Mahamumbai SEZ would definitely lead to the water crisis. Forum of Manglore has quoted that the Manglore SEZ’s water requirement is at a hoping 136 million liters a day.When Manglore city is facing the water crisis without the SEZ, one can imagine what will be the case when SEZ comes up. 3) Displacement and loss of livelihoods in SEZs: Estimate show that close to 114,000 farming households (each house hold on an average comprising five members) and an additional 82,000 farm worker families are dependent upon these farms for their livelihoods will be displaced. In other Words, at least one million people who primarily depend upon agriculture for their survival will face eviction.Experts calculate that the total loss of income to the Farming and farm workers family will be at least Rs. 212 crore a year. This does not include other income (for instance artisans) due to the demise of local rural economies. The government promise humane displacement followed by relief and rehabilitation. However historical records does not offer any room for hope on this count an estimated 40 million people(of which nearly 40% area Adivasis and 25% Dalits) have lost their land since 1950 on account of displacement due to large development projects.At least 75% of them still await rehabilitation. Almost 80% of the agricultural population owns only about 17% of the total agricultural land, making them near landless farmers. Farmer’s families and communities depend on a piece of land (for work, grazing) than those who simply own it. 4) SEZ are actually land grab by the real estate mafia and the corporate sector: What are SEZ likely to become in few years time? According to a clause in the SEZ Act (section 5(2) as much as 75% of the area under large SEZs above 1000 hectares) can be used for non-industrial purpose.What will the remainder of the land used for? This lacuna in the law is likely to become a loophole for massive accumulation of Land by private players including the real estate mafia, developers and property dealers for the purpose of real estate speculation. This explains why so many of them have been buying land for SEZs. In fact it may well be the case that the rationale for the above clause in the SEZ Act is the uncertainty surrounding the Economic attractiveness of SEZs. If adequate productive investment is not forthcoming, the SEZ developer can at least cash in on the land value.Conglomerates like Reliance already own upwards of 100,00acre of land in the countrywide. 5) Loss of natural habitat, flora and fauna Massive land acquisition for the establishment of SEZs has led to the destruction Of natural habitat, flora and fauna due to deforestation. For example due to the Mundra SEZ in Kutch in Gujrat about 3000 hectares of area covered by Mangroves is being destroyed. . 6) More suicides, More crimes†¦ It is again no. coincidence that all most all the SEZs are being built only on the fringes of cities – like satellites all over again.A rough study based upon the â€Å"in principle† approved SEZs in Maharashtra shows that around 67% of the land for SEZs is within 100 km. of Mumbai. If the cities pf Pune and Nagpur are also considered, then a figure of 85% of land for SEZs is arrived at, and if Nashik and Aurangabad are also th rown then about 98% of the land for SEZs in within 100 km of these five cities. Thus there will be no real development. the rural areas will be further devastated. Farmers will commit more suicides larger slums with even more squalor will be created.There will be more crime, more communual riots, more atrocities against Dalits and more attacks and exploitation of women as always happens in the condition of squalor. 7) Ruthless Depeasantisation : However the SEZs are not the only instruments for grabbing the lands of the peasantry, millions of acres of land are taken by national and international big business for construction of Greenfield projects, private airports, tourist resorts, health tourism, smart cities, entertainment parks, building of private township for the super rich including vast areas for golf courses and luxury hotels.To provide infrastructure for super profits of local and multinational big business the state is acquiring millions of acres of fertile land to build industrial zones, golden corridors express ways including the much flaunted golden quadrangle express highways systems. This is the glaring phenomenon of contemporary global enclosures of forcible depeasantisation ruthlessly divesting the producers from their means of production, cultural moorings and commons.Adding salt to the injury the neo-liberal state is resorting to the most predatory inhuman primitive accumulation of forcing the farmers and adivasi’s out of their land when the entire peasantry is reeling under acute agrarian crisis where more than 2 lakh farmers have committed suicide in the past decade under the neo-liberal economic regime. Conclusion:There is much more to learn as well as unlearn from the Chinese experience. Until this is done, millions of poor across the country will be made to pay an even higher price than the Chinese did for following this flowed approach. India should thus work towards reforming its domestic economic rather than supplementing it with an SEZ model. It should not blindly follow China in this regard.