the 'resource curse' of the scheduled areas – case of the bauxite industry in tribal...
Post on 28-Mar-2015
213 Views
Preview:
TRANSCRIPT
The 'Resource Curse' of the Scheduled Areas – Case of the
Bauxite Industry in Tribal Eastern India
Procedural Paper PresentationPatrik Oskarsson
1 December, 2006
Supervisors: John Cameron
Oliver Springate-Baginski
Presentation Outline
− Introduction
− Research Objective & Justification
− Conceptual Framework
− Research Questions
− Methodology
− Research Design
− Ethics
Introduction - Nimmalapadu Village, Andhra Pradesh
Introduction - Iron Ore Mines in Keonjhar District, Orissa
Introduction - Open Cast Coal Mine
Introduction - Nimmalapadu Village, Andhra Pradesh
Introduction – Distribution of Benefits and Costs in Federal India
• Sets Policies and Royalties on Major Minerals (bauxite, iron, coal etc.)
• Major involvement in clearances (mainly environmental)
• Owner of biggest aluminium company
• Land rights, land records
• Competes for investment with other states
• At the center of demands for ‘development’ from voters
• Responsible for health and education
• Faces main costs of mining and industry in the form of land alienation and environmental degradation
• Few income opportunities from industrialisation because of lack of skills
Union
StateScheduled
Area
Objective and Justification
ObjectiveHow can the strategy of the state governments of Andhra Pradesh and Orissa in Eastern India to promote and expand the bauxite mineral industry be understood given the conflict between this industry and not only, a) the rights of the local tribal communities but also, b) an apparent imbalance between the costs and benefits to and distribution within the state itself?
Justification for topic- Tribal People among India’s poorest communities- The main deposits of minerals (metals and coal) are found in tribal areas of Central-Eastern India- India’s economic growth and integration with the world economy is causing rapidly increased mining- It is not very clear who actually benefits from mining and industry- Local state research is important when the state is becoming more independent from the national government
‘Resource Curse’ of the Scheduled Areas:
• Continued poverty• Increased inequality (to the rest of the state)• Environmental concerns• Potentially increased militant activities
Land RightsPolitical Economy of
Industrialisation
Legal Verdicts and
Implementation
Customary Rights
Economic Incentives
Political Incentives
Elite Capture
Social Mobilisati
on
National and ‘Society’ Rights
Land Use
Conceptual Framework
Power
Key Concept 1 – Land Rights
Individual and Group Rights
Government and ‘Society’ Rights
National
State
• Constitution declares Scheduled Tribes and Scheduled Areas• Tribal education and job Reservation• Right to life and livelihood• Tribal right to land (and the non-transferability of this land)• Right to have any law adjusted to specific conditions of Scheduled Areas
• Right to acquire land for the benefit of greater society, the state’s eminent domain• Rights to all major sub-surface minerals (bauxite, iron, coal etc.)• Right to all minor sub-surface minerals (limestone, marble etc)
Key Concept 2 – Political Economy of Industrialisation
Union
• The Indian constitution defined India as a socialist republic with poverty alleviation and social empowerment as its highest goals• Industrialisation as one of the main means of reducing poverty (Kohli 2004) • Indian state as captured by various interest groups and unable to live up to its ideals (Bardhan 1984; Rudolph & Rudolph 1987) • Change with economic reforms from 1991 implied that the structure was not as rigid as authors had earlier indicated Jenkins (1999)
State
• Union government budget constraints has meant increasing independence of the states• Regional parties dominating/influencing national governments• Rise of competition states but also fiscally pressured states• Reform by stealth since it would have gone against the wishes of the general electorate (Jenkins 1999)
Studying the State:• The developmental state as it is experienced by the poor (Corbridge et. al. 2005; Rudolph & Jacobsen 2006)• Multiple formal and informal interests within the state (different political parties, departments within the bureaucracy, urban/ rural divide, the legal system as formally independent)
Key Concept 2 – Political Economy of Industrialisation
Key Concept 3 – The Resource Curse
• 1950-1980 Mineral Resources (metals, oil, gas, gemstones) are good!
• 1990 → Mineral Resources are bad!• Three types of curses:
1. Poor economic performance2. Political regimes with low levels of democracy3. Internal conflicts and civil war
• Ross (2004:28) defines the resource curse as "the distributional conflicts that commonly arise when resource wealth is unevenly distributed around the country".
• Strong empirical evidence and acceptance in policies that there is a resource curse. But some countries have managed to overcome the curse (Rosser 2006)!
• Resources are not per se cursed. Literature on the resource curse have focused too much on the inherent qualities of resources and how these produce poor political, economic or other outcomes (Ross 2004; Rosser 2006).
New Opportunities in the Scheduled Areas:
• Acquiring land which may or may not be used for
industrial purposes
• Resources used to attract domestic and international
private investment
• Extracting rents which require little accountability
(compared to for example direct taxation)
• Creation of high value jobs for the educated middle class
Scheduled Area Experiences of Mining:
• Few new jobs but those available will mean increased
income. The local skill and educational level is not adapted
to industry
• Environmental problems/ Water Scarcity
• Displacement/Land Alienation
Key Concept 3 – The Resource Curse
Objective and Research Questions
ObjectiveHow can the strategy of the state governments of Andhra
Pradesh and Orissa in Eastern India to promote and expand the bauxite mineral industry be understood given the conflict between this industry and not only, a) the rights of the local tribal communities but also, b) an apparent imbalance between the costs and benefits to and distribution within the state itself?
Research Questions1. What have been the changes to tribal rights to land and
livelihood in the Scheduled Areas of eastern India in relation to economic reforms and industrialisation since the 1990s?
2. What are the characteristics of the political economy of the mineral industry in relation to the benefits driving demand for increased mineral industry expansion and the mitigation and distribution of associated costs?
3. What conclusions can be made about the functioning and importance of the local state in relation to the extraction and processing of bauxite and the existence of endemic poverty in the tribal areas of India?
Methodology
Comparative State Analysis - India as ‘controlled laboratory’ when studying the local state (Jenkins 2004):– Same national regulations (Constitution, legal framework,
major mineral rules, environmental clearances)– The states (Andhra Pradesh and Orissa) have similar
institutional setup and similar but still different land rights– Same resource (bauxite) with same geology and technical
process– Different languages, political and economic histories
• Components:– Policy Analysis (Roe 1994; Hajer & Wagenaar 2003)
• Key Informant Interviews• Legal Judgements and their implementation• Cost/Benefit Analysis• Policy Debates
Methods - Research Design
State Orissa Andhra Pradesh
Deposits Biggest bauxite deposits in India (also iron, coal etc.)
Bauxite as main mineral in scheduled areas (also coal)
Current Industry
NALCO is operating but many upcoming mines and plants in south Orissa
Attempts to circumvent the Samatha Judgement through a joint venture
Economy Mineral Industry as only hope for economic development (mines and related industry).
Mineral industry relatively marginal (IT, pharmaceuticals, also agriculture)
Regimes • Elitist and coastal domination• Violently trying to push for the industrial development that is seen as the only hope for the state to prosper.
• Populist and rhetorically supporting the struggling rural population. • Desperate to provide any sort of ‘development’, especially now through irrigation projects.
Tribes 8 million (22% of state total)
4.5 million (7% of state total)
Methods – Data Collection
Union (Delhi)
State (Andhra
Pradesh and Orissa)
Scheduled Area (about 5-6 large
projects in research area)
• Key Informant Interviews
• Analysis of Public Industrial Policies and Budget Documents (national scope)
• Key Informant Interviews
• Analysis of Public Industrial Policies and Budget Documents, legal documents and judgements, investment agreements (MoUs) (local state scope)
• Annual reports of companies
• Field Survey• Analysis of
mining leases, land records, satellite imagery
Ethics in Research
• Difficult Situation in Orissa means rural fieldwork will be minimised.
• Local protest movements against industrialisation often facing state violence
• Low-level Maoist insurgency
• Other means will be sought to estimate social impact and focus on state-level mechanisms (land records, mining leases, satellite imagery)
Timeline
• Preliminary Fieldwork Carried out in October 2006• Second Phase of Fieldwork Planned for January –
May 2007
PhD PlanFeasibility Trip to IndiaWork on Procedural PP PresentationFieldwork In Delhi In Andhra Pradesh In OrissaData AnalysisWriting Up
2005
Dec … JanDec Jan
2006
JanOct … Sep Apr May
2007 2008
… SepFeb MarOct Nov Mar
2009
Oct Nov Feb
The End
Thank You!
Comments appreciated poskar@gmail.com
Extra Slides
Extra Slides
Bauxite Alumina Aluminium
Year Value (million USD)
Quantity (thousands kg)
Value (million USD)
Quantity (thousands kg)
Value (million USD)
1997-1998 0.84 86,876.07 87.32 427,182.89 259.59
1998-1999 5.74 98,942.25 38.78 216,878.74 142.53
1999-2000 6.99 596,800.99 21.07 86,062.45 247.16
2000-2001 27.38 1,248,175.41 43.26 189,309.53 337.22
2001-2002 14.10 979,570.45 45.32 263,103.58 340.17
2002-2003 32.14 1,785,350.22 191.29 1,101,614.37 375.48
2003-2004 37.20 896,137.07 173.09 808,178.53 404.91
2004-2005 29.86 1,016,141.85 294.06 957,703.69 541.27
2005-2006 68.80 2,355,277.13 400.53 1,025,022.97 606.16
Source: Export-Import Data Bank, Department of Commerce, Government of India, http://dgft.delhi.nic.in/
Indian Bauxite Export Statistics
• Bauxite is aluminium ore of different chemical compositions • Alumina, aluminium oxide (Al2O3)• 95% of all bauxite is turned into aluminium
Methods - Data Collection
Type of Information
Sources Method
Economics of mineral industry
Costs• Cost of excavation and transport, Forest clearance, Water usage, Carbon dioxide usage, input materialsBenefits (state and national benefits should be separated)• Royalty (64 rupees per ton of bauxite), CESS Income taxes and Excise, Employment, Customs• Based on annual reports and other official data where possible. International cases to be used where possible
Cost/Benefit Analysis
Politics of distribution
Legal documents, policy statements
Key informants: Politicians, Bureaucrats, Activists, Industrialists and Academics
Document Analysis
Semi-Structured Interviews
Type of Information
Sources Method
Land use Land Records and Mining Leases
Satellite Imagery and GIS
Field Survey
Document Analysis
Policy Narratives
Key informants: Politicians, Bureaucrats, Activists, Industrialists and Academics
Semi-Structured Interviews
Methods - Data Collection
Key Concept 3 – The Resource Curse
• Indigenous Peoples and the Resource Curse:• Local states can get caught up in resource struggles (Scholtz 2006)• Linguistic and cultural differences, remoteness of location often makes the ‘curse’ more likely to happen• Extra contributions to the local area might not even be enough to avoid a ‘resource curse’ (Ross 2004)
Key Concept 3 – The Politics of Industrialisation in India
Pressures on the Local State:
State Government
Jobs for the Urban Middle
Class (powerful group with
money)
Agricultural Support to
farmers (vote bank)
Welfare Measures for Landless and
other rural poor (vote bank)
National Government (fiscal
discipline)
International Agencies (fiscal
discipline, transparency)Pressure from
‘above’
Pressure from ‘below’
Political Party and its supporters,
industrialists and other important
groups
Data Analysis
Policy Analysis
Cost/ Benefit Analysis
Land Use, Land
Records, Mining Records
National and State Distribution
of Royalties/ Welfare and
Local Support Systems
Conclusions
Discourse Analysis
Key Informant Interviews
Court Judgement
s
Mines
Industry
Agricultural land limit
10% slope mark
Valley View of Land Usage in Tribal Areas of Orissa
Source: Interview Researcher, Orissa, 2006-10-26
Layer of Bauxite on top of the mountain (thickness 15-20 metres)
= Village located along the mountainside= Land claimed by tribal people as traditionally used
Source: Interview Researcher, Orissa, 2006-10-26
Bauxite Mining in Kashipur on Bapthimala Mountain
top related