Political Economy of India’s Special Economic Zones: a Conceptual Frame Work

 Every country stands for its own development. For this objective the state introduces and implements new policies and programmes such as Special Economic Zones Act. Soon after 60 years of its independence India with its 110 core population has evolved a new paradigm of its political economy which is confusing. The policies and programmes initiated by Indian government to generate a ‘global village' based on free of charge industry economy and cost-free trade amongst nations cutting across all barriers, abolition of national boundaries and dismantling the nation –state technique giving priority to ‘market' more than the ‘state' . Immediately after the enactment of Specific Economic Zone Act 2005, it created tremendous effects on political economic climate of the country.

            The term ‘political economy' came from the two Greek words ‘Politiko' and ‘Oikonomia, where ‘Politiko' stands for the state and society and ‘Oikonomia'means managing the house hold economy. Political economic climate therefore means a study of the state, society and home hold economic climate. The notion of political economic climate arose historically as the economic doctrine of a new class – the capitalist class. It has been evolved since the days of Aristotle who gave a model of public excellent by means of guaranteeing each person private possession of what he was rationally and morally entitled. Private property was elaborated later by Locke, Adam Smith, Ricardo and the physiocrates, who came to be identified as the Laissez Fairists in Economics, or, the liberal democrats in politics. Adam Smith referred to political economic climate as a branch of the method of civil government. It was concerned with public policy.

            In Marxian view, political economic climate can be regarded as a subject which scientific studies the social relations evolves amongst diverse classes of many people in course of production, distribution, exchange and consumption. Political economic climate belongs to the broad land of economics, which opens on to political science. After a prolonged period of hibernation, the subject has once more been resurrected.

Marxist political economy tends to make a study of how the productive forces are implemented under the offered relations of production taking account of the lines and trends in technical progress political economic climate studies the influence of production relations on such progress and its socio economic consequences. Marxist political economic climate begins from the assumption that human essential activity is objectively based on social material production which consists of man's interactions with the nature and entire range of relations which arise in the approach. It has been realized that just about every political action has its obvious economic repercussion, and every single economic action has had its political implications.

 The liberal school of political economy delivers economic implications of political facts and elements. The liberal school has economized politics. The liberal technique focuses on the atomistic individual as the relevant unit, on the description of economic behavior in terms of subject alternatives among alternatives, on the notion of social welfare as the maximizations of individual utility sums. The socialist system views the whole economic system as the fundamental unit, views economic progress in terms of the growth of the forces of production and focuses on ‘relations of production' ‘surplus value' and the rapid enhance of social product.

By contrast the Gandhian technique eschews each the notions of the atomistic autonomous individual maximizing his utility in a self regulating economic climate and the notion of processes of production autonomously effecting changes in the organization of production ,class relationship and the magnitude and distribution of social product rather of the Gandhian model recommend that the fundamental attribute of human economic behaviour lies in the connection of individual to socioeconomic micro groups and the connection of micro groups to society .The fundamental economic act is neither the choice in between economic alternatives nor the social division of all-natural products, but the adjustment among individual and the micro groups to which they belong, and of those micro groups to society .It is this collaboration which is the standard theme of the Gandhian method of political economic climate.

The Gandhian technique is viewed in micro groups that are fundamental constituents of the economic program and offered complete scope to develop their potential in the context of no coercive types of political manage. Social welfare is defined in terms of the functioning of the collaborative micro groups vis –a-vis its members. Gandhi believed that the introduction of technology and patterns of development have to be constant with the full employment objective.

Right now economist speaks of sustainable development and ecological values. Gandhi was not against market but as he predicted it could not give people alot more employment. His constructive programmes had been to give employment to all men and women regardless of whether it be kadhi, gobar gas or tree plantations, where all can be engaged in constructive work. Gandhian economics is an alternative to overcome the exploitation of each capitalism and communism for the exponents of human social order.He was against the huge scale use of machinery which kept millions without having operate. Swadeshi is 1 of the core elements in the socio-economic organisation of Gandhian system.

Gandhi observes

                       "Life right here will not be a pyramid with the apex sustained by the bottom, but it will be an oceanic circle whose centre will be the individual, usually prepared to perish for the village, the latter ready to perish for the circle of the villages, till at last the entire becomes 1 life composed of individual, under no circumstances aggressive in their arrogance, but ever humble sharing the majesty of the oceanic circle of which they are integral units'. The notion of the circle stands for integrating, fullness and self-sufficiency. He wrote that independence need to begin at the bottom. Thus every village will be a republic or Panchayat getting full powers. It follows so, that every village has to be self sustained and capable of managing its affairs even to the extent of defending itself against the whole globe."

 Politics and economic climate are thought to be as two fundamental components in determining the nature of the state and society. They are interrelated to such an extent that the adjustments in one have an effect on the other, and hence each are ‘dynamic' and ‘flexible' ingredients of the national and the international systems. Politics and economy taken together as political economy refers to ‘managing the economic climate of the state'. Conceptually political economic climate connotes the relationship among the state, society and the economy, the cause–effect connection in between technological modify and the course of action of development, the economic relations amongst the different nations of the world.

DEFINITION OF Special ECONOMIC ZONE

            A specific economic zones is a geographical region that has economic laws a lot more liberal than a countries typical economic laws. According to the SEZ Act 2005, A SEZ is a ‘specially delineated duty free of charge enclave and shall be deemed to be foreign territory for the objective of trade operations and duties and tariffs. A SEZ also been viewed as "a geographical region with various economic laws than a nations typical economic laws with the major objective of attracting foreign investment'. "A SEZ or a Totally free Trade Zone (FTZ) is normally an enclave of units operating in a well –defined region inside the geographical boundary of a country exactly where particular economic activities are promoted by a set of policy measures that are frequently not applicable to the rest of the country".

            The idea of specific economic zones is not new. In an International Labour Organization (ILO) report traces the roots of the concept to 13th centaury Spain and in alot more recent occasions to Ireland and Puerto Rico, which established Export Processing Zones (EPZ). Export Processing Zones is the former name of the Special Economic Zones. The countries like China, United Arab Emirates, Malaysia, India, Jordan, Philippines and Russia have utilized the notion of SEZ. In 1986, there were 176 zones across 47 nations. Now the number has increased to over 5000 across 147 countries.  

The zones are recognized by numerous names in several parts of the globe. Most regularly these are Free of charge Trade Zones  (FTZ),Industrial Absolutely free Zones (IFS) Export Processing Zones (EPZ) Bonded No cost Zones and Unique Economic Zones (SEZ).

          Export Processing Zone is the ancestor of SEZ. An Export Processing Zone is comparatively modest geographically spread area inside a country. The objective of which is to attract export oriented industries, by offering them specially favorable investment and trade conditions as compared with the reminder of the host country. The EPZ is just an industrial enclave but SEZ is an integrated township with totally developed infrastructure. The UN Industrial Development Organization (UNID) identifies five fundamental attributes of EPZ s are: