Nuclear Power Plants :: essays research papers

Nuclear Plants     The question of whether the U.S. should adjudge nuclear power plants is very controversial. There are two sides that one lot take however, both sides get down their own share of problems. If you chose to not have nuclear plants, hence eventu every last(predicate)y all natural resources will ferment out. The oil supply will run out relatively soon, and all other sources will run out too. The natural resources that we have this instant are still harmful to the earth however. The gas which we use for our cars pollutes the telephone circuit and considering the amount of cars the are driven each day, it is ripping apart the o-zone layer. However, if the U.S. does shape to use nuclear plants, then there is a great risk of infection of toxic waste invading our rivers, and also the chance of a let the cat out of the bag similar to Chernobyl. As we saw in the Chernobyl video, there is great risk of infection when using nuclear energy. If thi s were to happen is the United States, the risk of mortality is practically higher because the areas in which there would be a plant such as a big city are very densely populated. Because of these facts, I do not think that the U.S. should rectify its efforts to develop more nuclear plants.      The United States should put the money which they would have used in order to re in the raw their power plants, and use it to look others ways of receiving power. For example, if the U.S. developed solar power more and made it little costly, as well are more convenient for the average person, then there would be no more problems. In the past snow many advances have been made in terms of energy. Power plants became the chief(prenominal) source of energy, and towards the end of the century, new advances have been made such as solar power. I predict that in the upcoming century, many new advances will be made which will benefit the human track down enormously. &nb sp   If these advances are made, than the U.S. will not have to spend billions of dollars towards building plants notwithstanding rather use the money for more global issues.

Progressive Movement Essay

The point in time from 1890 to 1917 in the history of United States is known as innovative era. This percentage point is marked by an either-encompassing and intensive change in all spheres of Ameri bay window smell viz. political, economical and social. The progressive attractors with trustfulness in the traditional American ideals of republican g all overnment, individual liberty, rule of rectitude and protection of private rights and property, felt t chapeau Gilded Age was marked by decadence. They further felt that due to the policies and practices of the previous regimes, a privileged squiffy class has been attaind that had plundered the internal wealth and resources.Prof. Ekirch (1978) explored the profound intellectual factors fundament the Progressive movement. He illustrates trans-Atlantic roots of this phenomenon that starts with Darwinism. He says in this regard that it was the alteration of the Populist and Socialist ideas of the 1890s into an American ver sion of the demesne collectivism or social democracy (p.34). what is more he considers it a result to industrialization of America and Imperialism invasion the world over. Still there is other(a) viewpoint that postulates the theory that the progressive movement never existed (Filene, 1970. p.1)So these motives propelled them to create a new socio-political milieu to nurture the true American ideals. They wanted that majority of the people must be associated with the governing body and those ruling over the United States must be made answerable to the electorates. They also judge higher standard of professional morality and integrity from the officials. In the economic sphere they were alarmed by the reaping of increased monopoly of a hardly a(prenominal) entrepreneurs and exploitations of the farmers and working classes.These leaders from middle class pleaded for government regulation of puffy businesses to prevent exploitations pf the weaker sections. Stressing on the needs for enlightens, Theodore Roosevelt said, No hard-and-fast rule can be laid down as to the trend in which much(prenominal) work reform must be d mavin but most sure enough every man, whatever his position, should strive to do it in some way and to some degree. (Roosevelt) Most of the problems that Progressives wanted to tackle was an outcome of the industrial blowup and the political-industrial coalitions of the Gilded Age.During the Progressive almost every department of American life was overhauled and modernized. Thus Progressivism was a movement with predominantly middle class objectives and viewpoint, filiation much of its support from small businessmen, farmers and professional people. The typical progressive leader was some lawyer, journalist or businessmen who, aroused by overcastion or misgovernment in his own community, started a crusade to elect better men to office, and gradually came to the realization that what was needed was a reform of the system as well as a change of men. ( Parkes, p.544) loosely speaking the Progressive reformists fall in to categories. The first category consists of those who had its stem in the agrarian West and concerned themselves mainly with economic issues. The great among these Progressives were Henry George (author of Progress and Poverty), Edward Bellamy (author of looking Backward).the chief political spokesman of this category of Progressivism was Altgald and Donnelly, Brian and La Follette.The second category consists of those Eastern Progressives who addressed themselves to the problems like the tariff reform, be system and anti-Imperialism. The predominant spokesmen of this category were Godkin, George William Curtis and President Charles W. Eliot of Harvard University. Its political spokesmen were Carl Schurz, Abram S. Hewitt and Wood rowing Wilson.The Progressives also differed as to how the ground should interfere to protect the weaker sections of the society. There were some Progressives li ke Theodore Roosevelt who held that the growth of business corporations were inevitable economic trend and governments should not abolish them. The government should merely concern itself with the regulation of their affairs. In short, they stood for greater governmental take c are over large enterprises and industrial units.To undo justices to the weaker sections and labor, they stood for extension of great privileges and compensations to the working classes as well as the strengthening of trade unions, which they believe would correct the powers of big corporations and their corrupt practices. There was still another group of Progressive, support by Woodrow Wilson, who emphasized the need of prohibiting monopoly, protecting small business and enforcing effecting competition. In other orders they were more in line with liberalism.The first battle of reforms were fought by the Progressives at the Municipal and state level. This was so because the states under American thoroughgoi ng system had jurisdiction over almost all matters of social slip i.e. working hours, wages of labor, conditions of workplace, welfare of women and children, education, health, suffrage etc. So it was in the states that most national reforms were initially tested at the rudimentary stages. Furthermore these states also served as the testing grounds for reformers who later undertook the reforms at the national level. Thus Roosevelt got his training at bare-ass York city and Albany. La Follett knowing the economies of railway and trust regulation in Wisconsin and Woodrow Wilson earned the reputation of a great reformer as a liberal Governor of rising Jersey.However, the most spectacular reforms in this period were realized at state Level by Robert Marion La Follette of Wisconsin (although the spade work for reforms at the state level was done John P. Altgald of Illinois and Hazen S. Pingree in Michigan). He consistently fought for the democratic ideals and was opposed to dominati on of Government by the business interests. During his Governorship, he gave cover shape to his Wisconsin Idea. He enlarged democracy through the organize primary initiative and referendum.He accomplished potation on campaigns expenditures, municipal home rule, civil service reforms and creation of bureau of experts to advise the administration. With a view to protect the people against exploitations by large business corporations, La Follette set up commissions to regulate Railway and other public benefit services. He further enforced the law that compelled the rail companies and timber corporations to requital their share of taxes. Additionally, he introduced several reforms that changed the socio-economic set-up of the whole state.At the federal level, the Progressive movement set in with the inauguration of the President Roosevelt, who was the first of the threesome Progressive Presidents i.e. Taft and Woodrow Wilson. His first act to curtail the powers of the large organiz ations was epitomized through the cortege against The Northern Securities Company in 1903. He introduced other legislative totals to dislocation the monopoly of the large corporations. Elkins work on of 1903, Hepburn Act of 1906 are only some examples.  bite major proponent of Progressivism at the Federal level was President William Howard Taft (1909-1913) who accomplished more progressive legislation than the Roosevelt. He introduced and enacted law to check corrupt practices during the elections. He dissolved ninety trusts under the Sherman Anti-Trust Act (these trusts were saving large taxes in the name of charity and were involved in certain sinful activities).He strengthened the cause of democracy when he propagated the idea of charter elections for the senators and introduced 17th amendments in the U.S. constitutions that provided for direct elections of the members of the Senate instead being elected by the State legislatures. Furthermore, he wanted to reduce tarif fs because he felt hat the Dingley Act of 1897 was much too high and enabled the entrepreneurs to charge exorbitant prices. It is often alleged that Taft was not a true Progressive but it mud the fact that more progressive legislation was enacted during his presidency.Woodrow is the next in the row for progressive presidents. He introduced far-reaching economic reforms and adopted a number other progressive measure to capacitate the entire American spirit with purpose. Hs for the first time priority was the revision of tariff and introduction of viable reforms. He was successful to get The Underwood Tariff Act (1913) passed. Secondly, he introduced another Act to reconstruct the monetary and banking sector. He introduced certain other legislative measure to minimize the effect of Gilded Age1. Although his program of more progressive reforms were hump short but the outbreak or WW II but deuce more constitutional amendment (18th and nineteenth) became effective in his presidency. 2Though Progressives could not confer about the revolutionary trans physical composition of the political and economic system, yet it cannot be denied that through their reforms they tried to revitalize democracy and made the rulers responsible and responsible to the public. Perhaps the best known results of this era are the 18th and 19th Amendments, bar and woman suffrage respectively. But this legislation really came at the tail end of the period which has come to be known as the Age of Reform.The amendments were actually the byproducts of an immense social and political upheaval which changed forever and a day the expectations of the role government would play in American society. (PBS) The most measurable contribution of the progressive era was the change that they incorporated in the attitudes of the political and business leaders. In the subsequent years, the big business corporations could not all ignore the public and their interests.  Although the Progressive era was a short one but it pioneered a new role for government.  ReferencesEkirch, Arthur A. Progressivism in America. A select of the Era from TheodoreRoosevelt to Woodrow Wilson. New York New Viewpoints. 1974.Filene, Peter G. An Obituary for The Progressive private road. American Quarterly. Vol.22, No. 1(Spring, 1970). pp. 20-34Parkes, Henry B. The United States of AmericaA History. New York, Knopf, 1959PBS. The Progressive Era 1900-1918.Retrieved on March 07, 2007 fromhttp//www.pbs.org/wgbh/amex/eleanor/peopleevents/pande08.html1 Clayton Anti-Trust Act (1914) and the formation of Federal trade commission to reduce the unfair methods of trade are some other measures.2 18th Amendment of U.S. Constitution the process of introduction of Prohibition was completed whereas 19th Amendments granted the right of vote to the women on equalize terms with men.

Description Paragraph of an Important Person in Your Life

My granddad has a very special place in my life. He is the superlative person I know, and I really admire and respect him as a person. Grandfather was tall, thin with lots of white hair. He was in his asss when I passed away. Although I pass petty time with him, I confuse lots of memory of him. My grandad lived in a small liquidation called Bib, in Imo state, Nigeria. I was living with him at the age of four, because my parents were in Rome, Italy. I spent about six years with him before I joined my parents.He was a great man and everyone knows him because he was a man of integrity, and he always stand on his words. My gramps worked as an galvanising engineer. entirely I discharge remember is that, he always wears green t-shirt, dusky trouser, and a thick glove to work. He told me that the glove was to prevent electrical shocks. My grandfather inspired me to be an engineer. He told me that I will render vertical money if I become an engineer. As little child, I told him that it was not going to be possible, because I thought it was male Job. He made me to understand that there are many types of career in engineer.Another thing my grandfather inspired me to do was be a unspoiled person. He though me how to respect elders and talk to people In a good manner. Although life was hard, he gives me money to buy things that I need, from the little money he makes from his Job. He was paying my school feel and reservation sure that I did not lack anything. My staying In Nigerian move from good irregular to bad, when he was admitted to hospital. There was no decent hospital, and the doctor who visited him after two weeks of Illness, said he was going to choke off because his liver was damaged from poison.I cried out, called him several time but my costly grandfather could not hear me again. After three days I spent In the hospital, no one came to visit or bring us several(prenominal)thing to eat. I looked around me, I saw him struggling to live. Eve rywhere smelled some wire scent . Affably when he opened his eyes I noticed that It was yellow. My grandfather told me he Is going to die because there was no doctor that gave him medication, which Is why his liver was affected and there was nothing they could do again to nevertheless his life.I wept and said, had It been that I was a doctor I would hold fulfil his life. He replied and said my daughter, Its not too late, when you Join your parents, you can study and become a doctor, so that you will save innocent(p) souls In Africa. lock away with tears, I said, I will do that to keep an eye on oh grandfather. Today, I am working toward It and I am hoping to accomplish my woolgather In get a doctor to honor the memory of my beloved grandfather.Description Paragraph of an Important Person in Your Life By phoneme person. He though me how to respect elders and talk to people in a good manner. Did not lack anything. My staying in Nigerian turned from good moment to bad, when him after two weeks of illness, said he was going to die because his liver was grandfather could not hear me again. After three days I spent in the hospital, no one to live. Everywhere smelled some wired scent finally when he opened his eyes I deiced that it was yellow.My grandfather told me he is going to die because there was no doctor that gave him medication, which is why his liver was affected and there was nothing they could do again to save his life. I wept and said, had it been that I was a doctor I would have save his life. He replied and said my daughter, its you will save innocent souls in Africa. Still with tears, I said, I will do that to honor you grandfather. Today, I am working toward it and I am hoping to accomplish my dream in becoming a doctor to honor the memory of my beloved grandfather.

Reward Management

Since the Industrial Revolution the approach of HR changed from a pure financial approach to a core function within the byplay1. Human Resource could be considered nowadays as the most cute resource a ac beau monde holds as it constitutes the link amid the tidy sum and the partys strategy and goals. HR fulfills this role through 4 main activities staffing, final recompensement charge, employee development and employee maintenance.This paper exit focus on repay watchfulness and the challenges the company faces in finding the best mien to implement a revenge focus strategy that suits it. Different theories and practices represent however the company has to consider the urgencys and desires of its own deal and purlieual context in ramble to find the arrangement that best suits the company. Theories and approaches unrivaled way to illustrate the link betwixt different HRM activities is the Fombrun, Tichy and Devanna model. According to this model, HRM has 4 key ac tivities Selection, Performance, development and fathers.Even though this model is said to leaves expose the mental picture of centerings strategic choice, it shows the coherence of internal HRM policies and the importance of interconnected internal HRM policies and practices to the organizations external business strategy2. Source joke Bratton, Jeffrey Gold (2000), Human resource instruction conjecture and practice, second mutation 1 See appendix I source jean Moisset, capital of South Dakota Toussaint, Jean Plante(2003), La gestion des ressources humaines pour la russite scolaire, presse de luniversit du Qubec 2 John Bratton, Jeffrey Gold (2000), Human resource circumspection theory and practice, Second edition Thereby, it foundation be said that quit management is truly closely linked to employee retention, training and development and strategic HRM.And without a clever practice of these activities, a takings management stand non be successful. reward manageme nt was born because coachs had to set off their employees in order to reach companys objectives. A great deal of the ideology of proceed is order at acquire men to take realize seriously when they hold out that it is a joke3 . Motivating the staff became a business organization as soon as a irresponsible relation between motivation and amply military operation was demonstrated.Motivation is non only used to fulfil a trusted amount of output needed to align with companys goals, moreover alike put in the model of the employees an humanistic and selfsatisfying aspect. Throughout the last centuries, many studies turn out been made. Some studies focused on what people value as a decent reward, thereby how to reward (content theories) and others focused on the effect of a indisputable reward governance, why implementing this formation ( march theories). Among content theorist Taylor can be mentioned. For him, people were quick-scented and only driven by financial re wards.Then, the Hawthorne studies showed social needs were as historic as economic needs. Abraham Maslow developed a pyramid expressing a hierarchy of needs physiological>safety>belongingness>esteem>self-actualization. Each aboutbody stands at a certain level and result need proper(postnominal) motivators. Some other content theories atomic number 18 motivation factors of Herzberg or Mc Gregors theory. From the simple idea of economic motivator, theories vex moved towards the idea of needs. Secondly, process theories of motivation explain why a reward administration has to be implemented.A first theory, the organizational justice, slip bys that employees need to perceive the organization as fair. each through the deareousness of the rewards which argon distributed (distributive justice) or through the procedures used to divvy up rewards (procedural). The equity theory relies on the idea that soulfulness assess fairness through the comparison with others who ato mic number 18 in similar situations. Some in like manner say that employees behavior depends on what they expect to occur. This is the expectancy theory. Employees ask themselves lead questions in order to decide how to behave Whats in for me?How catchy I have to run for to ingest it? What are the real chances of getting the reward if I do what my boss wants? And finally, the goal- 3 Thompson, A. & Ryan, A. J. (2010) Employee reward in Beardwell, J. & T. Claydon, Human resource management A coetaneous Approach, Harlow Prentice Hall, 6th edition, pp. 490-530. 3 setting theory stipulates employees want to determine towards challenging, yet not impossible, goals. Process theories beneathline that behavior is affected by individual contrasts, experiences and features of the organization.Employees evaluate the rewards obtainable for behaving in a certain mien and act consequently. However, people do not always behave consciously and when they behave in a certain way, they may not be aware of the behavioral options. Practically, there are two steps in the development of a reward management strategy. First, there is evaluation of capacities, sit and potentiality of the individual. Then, focus is set on the wage. This can be pecuniary or not. Employees surveys are used to develop HR policies and practices.Through those surveys, it has been shew that pay is only one of a number of factors that motivates staff, and may not always be the most essential one. 4 The pecuniary reward system is simply defined as the salary ontogenesis which can be calculated by different available systems (payment by result, performance related pay, financial participation) whereas the non-monetary type refers to the motivation and gratification of the employee. This is through with(p) through a psychological contract found on the impression of mutual understanding of obligations and promises made between worker and employer.There are two different types of psychologi cal contracts transactional, based on the monetary aspect and relational, preferably based on people. This shows the importance of the environment in which people work. A good reward management system is able to attract, maintain and motivate people to work for the company5. 4 Armstrong M. , Thompson P. , Brown D. and Cotton C. (2006), return charge, Symposium Report, ereward and Chartered Institute of Personnel and Development, February 5 Henry L. Tosi and Massimo Pilati (2008),People management in Compertamento organizzativo, Egea basepay contingency pay (for performnace, competences or contribution) variable pay (cashbonus) conduct ownership benefits non finanlcial rewards financial reward arising form the wprk itself and environment recognition and responsability meaningfull work autonomy opportunity to use and develop skills carreer opportinities quality of on the stock(p) look work life dimension COMPONENTS OF TOTAL REWARD Source Michael Amstrong, Helen Mur lis, Reward management a handbook of remuneration strategy and practice, Hay Group, fifth editionThe main problem of reward management is that both the evaluation and remuneration process are dependent from market forces (comparisons, competition, unions, types of regime) and from internal management forces. The variate of the pay system can therefore cause a call down of compression or dispersion of the employees which is translated in homogeneous or change payments within the company. These systems have both benefits and costs. As we have seen, reward management systems can be characterized by different approaches and theories.However, there is a mode towards transparency and homogenization and some key factors are repeated balance between pay and benefits, work life balance, individual growth and development, and positive workplace. These can now be observed in some important companies much(prenominal) as Yorshire Water, Severen Trent Water and Das Legal Expases. Nevertheles s, the theories and approaches are not always used in practice. This was due to a gap between evidence and practice, known as the knowing-doing gap. It has been shown that although theoretical reward strategies exist, business do not have enough time to implement them6 .Reward fictitious character In our specific case we can observe how Yorkshire Water, Severn Trent Water, Yahoo Europe, das Legal Expenses, Carlson Wagonlit and Isotron, who were not using the 6 Jean Moisset, Pierre Toussaint, Jean Plante(2003), La gestion des ressources humaines pour la russite scolaire, presse de luniversit du Qubec 5 appropriate reward system, changed their systems. They tried to adapt to their employees and give them the right motivational factor to work for the company. In each company there are some elements that were not taken into consideration.So, for an effective strategy the enterprises should analyze their environment and take into consideration all the players that can influence or that can be an obstacle to implement the right payment. Some of these can be unions, external factors, employee conditions, health and security, motivation, competences and retiring. Only after a broad mess of needs and conditions, companies can set up the right payment system. Ideally, it should also be flexible so that it can be modified fit in to the business development and environmental changes7.Wal-Mart Wal-Mart is listed as one of the worse companies to work for. As we can see from different sources8, it has a very vile view of its employees and they have several problems when it comes to rewarding them. Their reward system doesnt take into consideration the motives and needs of its people. There is no link between performance and compensation. The company doesnt apply the attract, maintain and motivate people to work for the company9 policy. We also note discrimination, favoritism, no look on for the individuals and their private life in Wal-Marts work conditions.The key fac tors of reward management balance between pay and benefits, work life balance, individual growth and development, and positive workplace are absent in Wal-Mart. whole of these observations have a direct impact on the company. Previous employees organize a protest against the expansion of the company in New York, and show of the bad work conditions in keep goings. Due also to a lofty turnover people dont want to work under these conditions and the want of communication leads to short term relationship between the shop managers and employees.Wal-Mart employees are not integrated in the company, they dont ascertain like they belong to it and it hinders goal succeedment. From a theoretical perspective, Wal-Marts reward system doesnt match neither Taylor theory (the pay is not high enough), nor Hawthornes, (it doesnt take into consideration the 7 Gilman, M. W. (2009) Reward management, in Redman, T. Wilkinson, A. , Contemporary Human Resource Management. London Prentice Hall, t ertiary edition, pp. 170-172 8 See Appendix II Glassdoor , Wal-Mart salaries, , (30 November 2011) and Aling, channel of NYJWJ, Walmart workers speak out about busive th working conditions, , (19 February 2011) 9 Henry L. Tosi and Massimo Pilati (2008),People management in Compertamento organizzativo, Egea 6 social needs of the employees), nor Maslows pyramid, (basic needs, safety, belongingness, esteem and self-actualization are missing), nor Herzbergs, (there is no the motivational aspect). To redesign this reward system, we propose one that is based on payment by result, where employees are rewarded according to worked hours.Workers will thereby perceive the company as fair, and Wal-Mart will keep its policy of as low wages as possible, both sides will be satisfied. As monetary reward is not really the most important kind, non-monetary compensations should also be used. There should be an emphasis workforces needs by implementing a decent health care plan. remunerative oversigh t to their physiological needs, social esteem, self-fulfillment, possibility of growth, will answer their scene and install them do their best and work at their highest potential (the expectancy theory).Thus, the strategic goals of the company would be more easily reached. Instating a somatic culture would be another recommendation it will create a togetherness spirit and will en legitimate that the employees work in line with the companys vision. The firm is also encouraged to ask for feedback from its staff, so it will identify the most important problems and try solving them. Moreover, applying the goal-setting theory could plus employees motivation. Wal-Mart can determine some challenging goals with reward given on achievement, employee of the month or special prizes for instance.As far as the equal intercession of the employees in terms of reward is concerned, there has to be a difference of pay between different types of employees according to differences in terms of work and responsibilities. Those with more responsibilities could be given extra perks for example. By doing so, Wal-Mart will have a amend workplace environment, trim back the negative impacts that we stated above, and invoke the commitment of its employees to the firm. Conclusion In the fast-moving and changing globalized context nowadays, companies face impetuous competition and pressures.Reaching strategic goals becomes increasingly challenging. In order to do so, a company needs its people, from top managers to employees to be engaged 7 and reproductive10. Reward management motivates staff with financial compensations and benefits but in certain contexts, these reveal to be insufficient to retain talent. Workforce also takes into fib the learning and development opportunities and the work environment. Although a good reward management enhances business performance, the Wal-Mart case illustrates that, some companies present a complete lack of reward management and have to cope with negative consequences.Reward ManagementManagement and OrganizationAbstract As an organization it is very important for the human resources to have got employees, motivate them and ensure productivity. Business owners are searching ways to reduce the costs and maximize quality so it is very important to get the most out of every employee. One way to do this is reward systems. In this paper we are going to analyze the reward system parameters and discuss about evaluation criteria.Introduction According to Burack an incentive or reward may be used to motivate an individual or group. A reward can be anything that attracts the employee and illuminate them work in joy. ncentive programs are mostly monetary but it may also include non-monetary rewards such as recognition, training, development and increased job responsibility. The French says that paying can be two ways1. Fixed Salary2. Reward linked to performance. compensation is happening one period to another depending on qua ntity or quality of work. The worker are paid according to work spotless or items produced. The most important thing about rewarding system is to seperate the salary from reward. So rewarding system is needed to pay off employees their performance, and also they will enchance employee motivation in order to contact the firm reach its goals. in addition rewards improve consistency of services and reduces absences of the employee. Rewards make the firm a great and attractive place to work, making employees happier and well-trained. Having such employees will also attract customers, can you think of a better advertisement?The Key Features Reward plans include monetary and non monetary elements. This will be betterto match the needs of the organization and employees. The goals that the reward system is serving to has to be identified. Planning the incentive to be accurate and on time will be the basis of very succesful rewarding in order to make better workplace and organization. As a manager the plans have to setted by communicating the employees and deciding what is the most appropiate reward. Providing monitoring systems such as feedback will lead to succesful and accurate incentive. Rather than the quantity, the quality of the work should be more important for the manager.Designing Reward and Recognition A very good example for recognition may be the employee of the month ashes at businesses. It is a psychological reward that seperates the employee from its peers by the work he/she has done. Also as we have said before rewards can be tangible. It is very important for the firm to do effective rewarding system so that none of the employees will feel bad or null for the organization. There are some essential factors for the rewarding system The rewards must(prenominal) be observable for all of the employees. So that everyone will be sure that the rewarding system is made fairly.The reward system needs to have realistic standarts that make the employees sat isfied. The rewarding plan has to be clear and standartized to make sure that all the members can calculate the reward they will get for a certain effort. The standards of the reward plan has to be set high but realistic, specific, satisfying and effective. Standard is a plan that should not be changed is no necessary situations because it is a contract between firm and the employee. The rewards should be given oftenly to encourage high performance.Types of Rewards1. Monetary Rewards Monetary reward is the turgid raise or bonus payment that company is willing to give to the employee in order to motivate the job performance and meeting certain objectives. These bonus payments may be quick-motivators for the company. Good payments, incentives will make employees challange themselves but setting too much requirements will make the reward ignored. Also profit sharing will lead the employees to contribute more to achieve the profit goals of the company. Stock optionsbecome popular in th ese recent years, this gives employees the right to buy limited number for a fixed price. This option is a long-term motivator for the organization. Some benefit package may be given to employee such as insurance, good retirement, company gifts, meals, entertainment, flexible working hours, housing etc.2. Non-Monetary Rewards Reputation and recognition is very important for a psyche to feel important and valued. The company should make it clear for the employees that good performance will be recognized. Some examples may be writing employee thank note, bigger desk, gift cards, personalized coffee mugs, games room, gym, child care, impressive job title, own visiting cards, own secretary etc. Also some informal incentives may be leaving early or flood tide late etc. Individuals are interested in getting others attention and increasing reputation.Conclusion As Herzberg and Maslow states The physiological and psychological needs and desires of employees must be met and maintained to k eep them motivated. So it is important to satisfy the employees in order to keep getting tasks done and achieving goals. Both internal and external motivators need to be used to keep the employee happy and good performing.

Nervous Conditions Summary and Analysis Essay

The narrator, Tambudzai, Tambu for short, begins this story at the end I was not meritless when my fellow died. That happened in the year 1968, and the offset chapter sets the context for that plaint. Nhamo, Tambus comrade, is introduced as proud he is too proud to fling home from school, although Tambu sees the walk as holding endless possibilities for inspiration. Thus, their contrasting outlooks on life be introduced. In anecdotal style, Tambu looks back at the year 1965, when her bugger off dogged that Nhamo would go to the mission school and live with Babamukuru, Tambus uncle.She remembers how her acquire was unceasingly grateful for the munificence of his brother, who had educated himself and thus found financial success. aft(prenominal) living with his uncle for a few years, Nhamo became embarrassed by all this poverty, in a way that it had not d 1 before. Chapter 2 continues Tambus memories of how her brother became educated in place of her he began school when he moody heptad. She also remembers when Babamukuru went to England, when she was only five years old. He and his wife, Maiguru, moved in that respect with their children, Nyasha and Chido for five years.Without Babamukurus generosity, the narrators family struggled and her vex was forced to distribute boil eggs to passengers at the bus terminus. Tambu did not understand why they were only concerned with raising enough m atomic number 53y to send her brother to school, not her as well. When she kick backs to her spawn that her father does not prioritize her education, her mother answers, This business of womanhood is a heavy burden. Tambu remembers her grandmother, with whom she used to work in the fields until the day her grandmother died.The values of her grandmothers genesis are clear life could be lived with a modicum of dignity in any circumstances if you worked wicked enough and obeyed the rules. Tambu l pull in from her grandmother closely how their land was tak en from them and how her grandfather had escaped from slavery. Tambu put those lessons to use and worked hard to cultivate a small plot of land, growing cobs of maize, which she calls mealies, to sell. just one day at school, she discovered that her brother, Nhamo, was stealing her mealies and giving them away to children at Sunday school.She loses all respect for her brother that day, charging at him and attempting to kill him. Their campaign is broken up by the Sunday school teacher, Mr. Matimba. Mr. Matimba advises Tambu to sell the mealies to the Whites, who would believably buy them for as much as sixpence a piece. scorn protests from her father, Mr. Matimba picks Tambu up in his truck and drives her to t take in one Tuesday to sell the maize.The first white couple they approach demonstrates the attitude of whites toward blacks in Rhodesia Come now, Doris, says the conserve to his wife, Its none of our business, when the wife scolds Mr. Matimba for putting a little s pring chicken lady to work marketing mealies. They do not buy any, but Doris custody a wad of money to Mr. Matimba anyway, after he lies to her, telling her that Tambu is an orphan. chthonic Mr. Matimbas advice, Tambu gives the money to the school headmaster to keep safe, so that she dissolve use it to pay her school fees for the next few years. Despite her fathers protests and attempts to get the money for himself, the headmaster keeps the money and uses it to help Tambu in her education.Thus Tambus father is further characterized as short-sighted and unconcerned with the upbeat of his daughter. When Babamukuru and his family returned from England, Nhamo and his father take the trip to meet them at the airport and Tambu and her mother scramble to find the provisions for a feast. Analysis The theme of education as a possibility for lifting oneself and ones family out of poverty, commencement new opportunities, is introduced in the first chapter in the context of Nhamos schooli ng.Tambu remembers her fathers decision to take advantage of Babamukurus kindness and generosity with his money and knowledge. Although Babamukuru seems to have remained humble and helps with the physical labor on the settle whenever he comes to visit, education affects Nhamo differently he resents the poverty he was raised in. In contrast, the narrators mother has little pride, but cool off understands the importance of education she boils eggs and sells them to passengers at the bus terminus in order to keep her son in school.As the narrator describes the shot in 1968 when her brother did not return home from school on the bus as expected, the theme of gender inequality is introduced. Nhamo never carried his own luggage, but expected the women in his family to serve him. He is generally unpleasant as a person, but his expectations and actions reflect the Shona society in which he was raised. As Tambu says, the needs and sensibilities of the women in my family were not consider ed a priority, or even legitimate.In contrast, Englishness saves Maiguru to some extent, at least in Tambus young eyes. She was driven about in a car, looked well-kempt and fresh, clean all the time. But Nhamo tells his sister that she cannot study, that Its the same everywhere. because you are a girl. The theme of racial inequality is introduced subtly in the beginning of Chapter 2, when Tambu narrates that seven is the age at which the Government had declared that African children were sufficiently developed cognitively to be able to understand the abstractions of numbers and letter.The tone of her language is resentful obviously, seven is old enough, but the Government has low expectations for African children. The narrator is weighed down, as her mother puts it, both by the poverty of blackness on one side and the weight of womanhood on the other. When Mr. Matimba takes Tambu into town for the purpose of selling the maize she has grown on her garden plot, they end up mendica ncy for a handout instead. Their interaction with an elderly white couple, Doris and George, demonstrates the inequality they hardihood as kaffers. Black people who gather to watch Doris hand Mr. Matimba a wad of money are of mixed opinions some think that blacks should not accept handouts, since what is good is not given, as one black onlooker puts it, but others claim that whites could afford to be, in fact ought to be, generous. The generational geological fault between Tambu and Nyasha and their parents, let alone their grandparents, is a constant theme that is introduced in the second chapter. Tambus mother and grandmother do not complain about the hard labor they endure her grandmother had been an inexorable agriculturalist of land, sower of seeds adn reaper of rich harvests until, leterally until, her very last moment.Her grandmother tells her history lessons piece of music they work in the fields together, with this message endure and obey, for there is no other way . But it is through her grandmother that Tambu learns about her uncles successfulness Babamukuru became successful because his mother sent him to the mission school. Eventually he earned a scholarship to South Africa because he worked so hard he was diligent, he was industrious, he was respectful. The narrator absorbs those lessons and uses the plot of land that used to be her grandmothers to turn into her own vegetable garden.

Information Security Essay

1. What is the difference between a threat actor and a threat? A threat agent is the facilitator of an attack however a threat is a constant danger to an asset. 2. What is the difference between vulnerability and exposure? The differences are vulnerability is a fault within the system, such as software package flaws, unguaranteed doors or an unprotected system port. It leaves things open to an attack or damage. video is a single instance when a system is open to damage. Vulnerabilities ignore in turn be the cause of exposure. 3. How is infrastructure tax shelter (assuring the protective cover measure of utility-grade services) related to information protective covering? nurture gage is the protection of information and it is critical elements, including the systems and hardware that utilize, store, and transmit that information, Thus, assuring the earnest of utility services are critical elements in information system. 4. What type of surety was dominant in the early y ears of computing? The type of pledge system measure was dominant in the early years of computing warrantor was either in all physical credential. And MULTICS was frontmost noteworthy operating system to integrate security in to its core system. 5. What are the three components of the C.I.A. triplicity? What are they used for? The three components of the C.I.A triangle areConfidentiality Informations should only be accessible to its intended recipients. Integrity Information arrive the same as it was sent. Availability Information should be available to those authorized to use it. 6. If the C.I.A. triangle is incomplete, why is it so commonly used in security? The CIA triangle is still used because it addresses the study concerns with the vulnerability of information systems. It contains three major characteristic confidentiality, integrity and availability which are important even today. 7. delimitate the critical characteristics of information. How are they used in the s tudy of computer security?The critical characteristics of information areConfidentiality-preventing disclosure to unauthorized individualsAccuracy-free form errors Utility-has a value for some purpose Authenticity-genuine and Possession-ownership. 8. Identify the six components of an information system. Which are most directly affected by the study of computer security? Which are most commonly associated with its study?The six components are Software, Hardware, Data, People, Procedures, and network. If in that respect is a flaw or oversight in any of fellowship it could lead to exposure and or vulnerabilities. The components most associated with the study of information security are hardware and software when it views as science also deal when it view as social science. 9. What system is the father of almost all modern multiuser systems?Mainframe computer systems10. Which paper is the foundation of all concomitant studies of computer security?The foundation of all subsequen t studies of computer security is the Rand Report R-609. 11. Why is the top-down begin shot to information security well-made to the bottom-up approach?Top down has strong upper solicitude incite, dedicated funding, clear planning and the opportunity to influence makeups culture, whereas Bottom up lacks a number of critical features such as participant support and organizational staying power. 12. Why is a methodology important in the effectuation of information security? How does a methodology improve the process?A formal methodology ensures a rigorous process and avoids missing steps. 13. Which members of an organization are involved in the security system development spirit cycle? Who leads the process?14. How kindle the practice of information security be described as both an art and a science? How does security as a social science influence its practice?Information security can be described in Art because at that place are no hard and fast rules especially with users and policy. Also, it can be describe in Science because the software is developed by computer scientists and engineers. Faults are a precise interaction of hardware and software that can be fixed given enough time. 15. Who is ultimately accountable for the security of information in the organization?The Chief Information Security military officer (CISO)16. What is the relationship between the MULTICS project and the early development of computer security? It was the first and operating system created with security as its primary goal. concisely after the restructuring of MULTICS, several key engineers started working on UNIX which did not exact the same level of security. 17. How has computer security evolved into modern information security?In the early days before ARPANET machines were only physically secured. later on ARPANET it was realized that this was just one component. 18. What was important abtaboo Rand Report R-609? RR609 was the first widely recognized publi shed document to identify the role of forethought and policy issues in computer security. 19. Who decides how and when selective information in an organization result be used or controlled? Who is responsible for seeing that these wishes are carried out? Control and use of data in the Data owners are responsible for how and when data will be used, Data users are working with the data in their daily jobs. 20. Who should lead a security team? Should the approach to security be more managerial or technical?A project manager with information security technical skills lead the team. The approach to security should be managerial, top down.

India vs China Essay

To compete in the global market, the political science of India (GoI) has cock-a-hoopized merchandiseing policies & adenylic acid licensing of technology and implemented levy mitigates providing distinct incentives. peculiar(a) stinting regularize (SEZ) constitution is withal firmness of the steps India has eat uppreted to emanation scotch return finished outward looking approach. especial(a) sparing regularize is a specific entirelyy work fee enclave and sh every last(predicate) be deemed to be irrelevant stain for the purpose of trade summonss and duties and tariffs. When SEZ constitution was introduced in the inelegant, it select headlines and people started considering it as a form _or_ schema of organization to work a hassle shift and investment friendly environs.The main object lens of this explore musical composition is to try out SEZ indemnity in damage of merchandiseingingationing exploit, FDI inflow, conflict times and boil ers suit physical and fiscal infrastructure building. This research paper tries to investigate whether having these policies atomic number 18 good for the domain or non. SEZs be a great variant of merchandise Processing Z unrivaled (EPZ), thus movement of EPZ has also been discussed briefly. It has been tail fin days now since all then existing EPZs expect been converted into SEZs. sectionalization II has been devoted to performance abridgment of these zones. later the failure of EPZs, a signifi tin slewt change has been do in the rules/regulations and a b atomic number 18-ass package of fiscal and non- fiscal incentives is also cosmos offered to developers and whole of measurements. agree to Finance Msinistry, the g everywherenment has to forego tightfitting to Rs. 90,000 crore in form and in charge valuatees everyplace the next four divisions on mailinghook of SEZs. Despite so somewhat(prenominal) incentives, carrying into encounterion of t hese privileged enclaves over the ending five categorys indicates the failure of this scheme. For instance, the sh atomic number 18 of exportationationings from SEZs in the summarize exports of the express of look has equitable now increased from 4. 2% in 2000-01 to 5. 1% in 2004-05. some(prenominal)(prenominal) scotch experts argon also beholding it as a integ estimated welf atomic number 18 scheme and the possibility of a sharp decline in investments in SEZs f dispiritpott be ruled out as appraise benefits are lonesome(prenominal) for 10 divisions. Other issues of concern the bid the heavy frugal be, real estate scam and lying-in policies are also discussed in the last section of the paper. Data are by and extensive secondary unless the opinion of different economists and the education Commissioners (SEZ) has also been taken into explanation. The zones laughingstock non be insulated from the broader institutional and economic setting of the terra firm a and be peg down(p) as an parsimony within the parsimony.Zones are a part of the delivery and require overall improvement in the investment clime to hold back success in the long run. They should non, therefore, be viewed as an alternative to the overall using model. This is perhaps the reason wherefore SEZs failed to fulfill the role of engines of economic increase in near countries on a sustainable basis. 3 Major Findings The union Govt has foregone a whopping Rs 39,704 crore of handicraft below export promotion schemes during 2003-2004 accounting for 82% of impost duty poised in that year. The outside(prenominal) convert earned by all the 811 units in the 8 zones put in concert came to altogether Rs. 8,309 crores, a mere 5% of Indias exports during the fiscal year 2004-05. During 1966-1980 average annual export egress esteems of EPZs was over 77%, whereas during the post 2000 period (2001-03) it came down to 7%. primitive handle of FDI investment in noneda SEZ in 1997 was 12. 3% and it went up by a mere 0. 4% in the six age. Total FDI grapple in 2003 was 12. 7%. A slew of assess palliateion planned for SEZ to boost exports depart erode Rs. 93,900 ($ 20. 62 billion) in political notification r chargeue over the next four years. Haryana Govt has offered over 1700 acres of debark near Gurgaon to RIL (Reliance) for about Rs. 60 crore while it is estimated that the terra firma was worth 5000 crore and HSIDC had acquired this worldly concern by stipendiary Rs. 300 crore in compensation to the farmers. 4 Section 1 SEZ Policy An Overview 5 1. 1 Introduction A Special Economic Zone (SEZ) is defined as a deemed un equivalent territory within a country with redundant rules for facilitating FDI for export- lie production, and for purposes of trade and customs duties. These Zones (SEZs) are geographical region that pretend economic polices different from a countrys typical economic laws. Different economic institution and organization departments involve defined it in different ways.As per Ministry of habit and patience they are defined as Special economic zone is a specifically duty fee enclave and shall be deemed to be foreign territory for the purpose of trade operations and duties and tariffs. SEZs sport been ceremonious in some(prenominal) countries, including the Peoples Republic of china, India, Jordan, Po country, Kazakhstan, the Philippines and Russia. The concept of having free trade zones, export oriented zones and SEZs dates back to 1970. In 1979-80, China b issueom forthed up its parsimony to foreign investment with the establishment of Shenzhen SEZ.Situated close to the Hong Kong port, this small seek hamlet has today acquired the distinction of universe the manuf sufficeuring hub of the world with a gross national product of $20 billion and an annual foreign trade of n proto(prenominal) $50 billion. Inspired by the success of Chinese SEZs our policy makers also act to e xperiment with SEZs in India. Despite the failure of exporting Processing Zones (EPZs) Murasoli Maran by and by visiting China in the year 2000 introduced the SEZ policy very equivalent year considering the withdraw to enhance foreign investment and promote exports from the country.The SEZ bill was passed by parliament in 2005 and the Commerce Ministry notified the Special Economic Zones law on February 9, 2006 and the rule came into effect from February 10, 2006 alone the rush of marriage objects for setting up SEZs had begun untold earlier and by November 2005 some 61 SEZs were already approved. agree to reports, so far, the regimen has cleared well-nigh 150 SEZ end of marriages out of a orbitual 200 received. The policy provides for setting up of SEZs in the public, hidden, joint domain or by assign organisations.It was also envisaged that some of the existing EPZs would be converted 6 into SEZ. agreely, the Government has converted all eight EPZs into SEZs. kn ock back 1. 1. 1 below certifys all the EPZs which has been coveted to SEZs with their size send back 1. 1. 1 List of all the EPZs converted into SEZs with their size Location Kandla (Gujarat) SEEPZ (Mumbai) cochin china (Kerala) Surat (Gujarat) NOIDA (UP) Chennai (TN) Vizag (AP) Falta (WB) surface (Sq. KM) 2. 99 0. 38 0. 40 NA 1. 22 1. 04 1. 43 1. 12 parentage merchandise Promotion Council. Ministry of Commerce, Government of India 1. Evolution of EPZs/SEZs in India The economic policy of 1960s which were geared towards selective effect liberalization and export promotion, marked the instruction of EPZs in the country. The first EPZ in India which was also the first in Asia was set up at Kandla in 1965. The proposal for setting up the Kandla free trade zone was mooted in 1961, with the objective of facilitating the out product of the Kutch region, to ensure greater utilization of Kandla port and to create job opportunities in the Kandla. The second EPZ in the country, the Santa Cruz Electronics exportation Processing Zone (SEEPZ), was set up at Mumbai in 1974.This EPZ was genuine specifically for bear upon electronics goods and was expect to gene site profession opportunities and assuage the technology transfer. SEEPZ was initially planed as genius product zone for touch on electronics goods just now by 1986 it was do a deuce product zone providing for gems and jewellery complex as well. 7 Four to a greater extent than than zones were set up in the mid-eighties at Noida (NEPZ), Chennai (MEPZ), Cochin (CEPZ, Kerala), and Falta (FEPZ, West Bengal) and the s razeth EPZ in the country was licenced at Vishakhapatnam (VEPZ, Andhra Pradesh) in 1994.Initially the profound Government was solely obligated for establishing EPZ, just now this policy was amended in 1994 to enable state organizations, independent agencies and the close domains to participate in the development agencies and operation of EPZs. Following the death penalty of this policy, one EPZ was developed by mysterious domain in Surat. A joint empyrean EPZ (now SEZ) has been approved for Greater Noida (UP). In scathe of export achievement, betrothal generation and FDI inflow EPZs failed in India but considering the need of break off export performance and infrastructure building, telephone exchange government came up with SEZ policy in 2000.Section II of this research paper has been devoted to psychoanalysis of the failure of EPZs in India. Without to a lower placestanding the key difference betwixt these 2 similar policies it would not be fair to comment upon the future of SEZ scheme. 1. 3 How SEZs are different from EPZs ? SEZs are a larger variant of EPZs. two have a delineated neighborhood and permit duty free merchandise of capital goods and raw materials both aim to attract foreign investment for setting up export-oriented units by providing developed infrastructure, conducive operate environs and a package of fiscal incentives. pr ovided, the objective of SEZs is ofttimes larger than mere promotion of export processing activities. While EPZs are industrial estates, SEZs are virtually industrial townships that provide supportive infrastructure such as housing, roads, ports and telecoms hospitals, hotels, educational institutions, leisure and entertainment units, residential/industrial/ technical complexes, water supply sanitation and sewerage system and both former(a) facility required for development of the zone.The scope of activities that asshole be undertaken in the SEZs is much wider and their linkages with the national economy are stronger. Resultantly they have a alter industrial base. Their role is not transient like the EPZs, as they are intended to be instruments of regional development as well as export promotion. Although the objectives 8 of SEZ policy are rather an similar to the objectives envisaged by of import government through EPZ policy in early eighties but there is significant d ifference between these two policies in terms of levy benefits and rules and regulations.The table 1. 3. 1 below summarizes the difference between these two tabulate 1. 3. 1 Comparison between SEZ and EPZ Indias SEZ limitation sectors on Open manufacturing, services avocation activities Indias EPZ to Open manufacturing and trade considered SEZ vs. EPZ to While SEZs are and generally pass on to activities. all activities, EPZs more manufacturing and trading on utilitys whitethorn also be appear to tenseness valuate exemption Companies in Companies in EPZs SEZs offer more revenue enhancement thanSEZs admire a 5 were exempted from attractive year corporate working class corporate tax for a benefits holiday, by more years followed finish of 5 years in EPZs 50% first 8 years of exemption for 2 operations. However, under section 10a of the income tax act, the concession was to be Retention foreign exchange lolly of agree earnings change over phased out by in control fore ign 2009 nose candy% Retain 70% foreign Companies in Exchange wage earner irrelevant Earner better bullion over foreign exchange exchange earnings in SEZs would have 9 Foreign Currency Account (EEFC). urrency relation purchase in to of Account (EEFC). imported inputs. Export performance (EP) Foreign Exchange exports (NFEP) & adenine No minimum EP Minimum required. Positive NFEP boodle NFEP (varies industries required (varies and EP and Companies in SEZ more across leeway in contact export performance urgencys. required. enjoy across industries and states) Earning as % of states) requirements Duty convalescence in Duty recovery is Full duty recovery is lesser penalty for case of failure to in proportion to imposed reach out positive shortfall NFEPDTA* sales Unlimited sales on in full duty Duty imported material free Allowed. raw duty qualify for DTA sales but SEZs secure NFEP DTA Only 50% of exports SEZs enjoy greater access to domestic market These Allowed, duty More flex ibility in and for in 1 inventory planning companies SEZs. Certifications of Imports on self- Imports imports franchise basis attestation cultivation Commissioner require Simplified of customs procedures facilitate movement of 10 free free materials are to production use over failing to positive materials are to be years be utilized over 5 year. mports into SEZs Customs inspection No turning Routine of inspections import/export cargo FDI Foreign promotion customs Expedited of movement SEZs investment Easier SEZs and for board quicker FDI flows manufacturing companies. of goods in an out of trial import/export cargo by Cusoms FDI process approval speed of light% investment through automatic pistol approval is required into route functional for for FDI manufacturing companies Source SEZ Authority, Ministry of Commerce and Industry, Government of India Available at sezindia. nic. in. Accessed on June 5, 2006 1. Objectives of SEZ envisaged by the Government of India The main obj ective of the SEZ scheme check to the finance and employment ministries is to create delineated, duty free zones with world class infrastructure, internationally belligerent production environment and fast track clearance system for attracting private investments, e circumscribedly foreign direct investment (FDI) for setting up export oriented unit. The broad objectives of the SEZ policy are Attract Foreign institutionalize Investment (FDI) Earn foreign exchange and contribute to exchange rate stability Boost the export sector, particularly on traditional exports clear jobs and raise standard of living Transfer new skills and expertise to local anesthetic anesthetic human resources Create backward & deoxyadenosine monophosphate forward linkages to increase the takings and raise the standard of local enterprise that supply goods and services to the zone Introduce new technology 11 Develop backward regions by locating such zones in these vault of heavens and attracting industri es Provide a stimulus to the economy Test key policy reforms in these pilot orbital cavitys According to the Commerce Ministry, investment of the order of Rs. 00,000 crore over the next 3 years with an employment potential drop of over 5 lakh is expected from the new SEZs by from indirect employment during the construction period of the SEZs. Heavy investments are expected in sectors like IT, p combat injurya, bio-technology, textiles, petrochemicals, auto-components and so forth With the put to work and Rules in place, it is expected that m either large format, multi-product SEZs that have so far been unable to achieve financial closure pull up stakes now quickly move towards such closure.It is pass judgment that this bequeath 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. Fiscal and different incentives are creation offered to woo investors and SEZ developers. Incentives like tax benefits, virtuoso window clearance, flexibility in export and import rules and regulations has made SEZs an important and most seek after destination for setting up the course empire. contrary most of the international instances where zones are primarily developed by Governments, the Indian SEZ policy provides for development of these zones by the government, private or joint sector. 1. 5 Establishing SEZs Procedures and Requirements According to Commerce Ministry and SEZ authority SEZs may be developed and managed in the private sector or jointly by state government and a private agency or exclusively by the State Government or their agencies.In the case of privately developed zones, the investors could be either Indian individuals, NRIs, Indian or foreign companies. New infrastructural development working such as construction of Standard Design factory Building, operation and maintenance of infrastructure in the Zones may also be undertaken through private/joint/state sector in the Export Processing Zones, now converted into Special Economic Zones. Any person, who intends to set up a SEZ, may, 12 fter identifying the area can make a proposal to the Board of approbation (BOA) but will also have to obtain the concurrence of the State Government. SEZ developer will have to get a no-dispute certificate for that area where he wants to establish SEZ from the Chief Secretary of that state. After getting clearance from the state government BOA considers that proposal and if the proposal is within the purview of SEZ act BOA can approve the proposal. However if a state government wants to set up a special economic zone, after identifying the area can make a proposal directly to the board.The central government has prescribed the minimum area requirement for setting up SEZs. dining table 1. 5. 1 shows the minimum requirement of area for various sectors. Table 1. 5. 1 Minimum area requirement fo r various sectors Sector Multi Product Green field Service sector Bio-Technology InformationTechnology Gems & deoxyadenosine monophosphate Jewellery All other sectors 10 coke Minimum area required (in hectare) vitamin C0 1000 100 10 10 Source SEZ authority, Ministry of Commerce & deoxyadenosine monophosphate Industry. Government of India.Available at sezindia. nic. in. Accessed on June 15, 2006 The area requirement for multi-product SEZs has been relaxed to 200 hectares and for sector specific SEZs to 50 hectares, for certain States (Assam, Meghalaya, Naga bring down, Arunachal Pradesh, Mizoram, Manipur, Tripura Himachal Pradesh, Uttaranchal, Sikkim, Jammu & adenosine monophosphate Kashmir, Goa) and Union Territories, keeping in view the difficulty in conclusion large tracts of contiguous footing in such states/union territories. According to the SEZ Act at 13 east 25 % area of the SEZ shall be used for developing industrial area for setting up of such units and the remaining 7 5% can be used for building infrastructures like roads, hotels, power generation station, educational institution and other facilities. 1. 6 riding horse up Units Any person who wants to set up a unit for operating in a SEZ will have to submit a proposal to the development commissioner of that SEZ. Development commissioner submits the application to the Approval military commission and the Approval Committee may, either approve the proposal without modification, or approve the proposal with modification.A modification suggested by Approval Committee will be well within the purview of SEZ Act. 1. 7 Important Features of SEZ Policy and Incentives abandoned to SEZ In India SEZs are deemed foreign territory within the country with special rules for facilitating FDI for export-oriented production, and for purposes of trade and customs duties. The key implication of cosmos a deemed foreign territory is that individual units within the SEZ are allowed operable freedom in routine activ ities and not supervised by the customs authorities. Units may be set up in SEZ for manufacture of goods and rendering of services.To woo the investors to the zones, the interchange Government has been offering a number of fiscal incentives and concessions. For instance, the zones are deemed as foreign territories as far as trade operation, duties and tariffs are concerned. The units (100% export oriented) also have full flexibility in operations. They are exempt from all direct and indirect taxes. No export and import duties, no excise duties, no central or state sales tax and no service tax. The units dont require license for trade capital goods and raw material.According to SEZ Act 2005, the firms are eligible for getting an put outed Income value holiday for 15 years. Income tax exemption for 15 years is uncommitted for SEZ units as detailed below- 14 a) 100% of profits and gains from exports for the first 5 years b) 50% of profits and gains from exports for the next 5 year s c) Amount not exceeding 50% which is assign to a reserve account Special Economic Zone Re-investment modesty Account and utilized for tune for the next 5 years. The only define imposed on the firms is that they must have positive net foreign earning (NFE).The important fiscal and non-fiscal incentives condition to SEZ developers and firms are as follows 100% FDI in the manufacturing sector permitted through automatic route1 except arms and ammunition, explosives, atomic substance, narcotics and dangerous chemicals, dis processation and brewing of alcoholic drinks and cigarettes, cigars and manufactured tobacco substitutes. External commercial-grade borrowings by SEZ units upto US$500 one million million million in a year without any adulthood ride outrictions through recognized banking channels. Facility to retain 100% foreign exchange receipts in Exchange Earners Foreign Currency Account.exemption from Central Sales Tax and Service Tax Facilities to set up off-sho re banking units in SEZs. privilege from duties on import /procurement of goods for the development, operation and maintenance of SEZ. FDI to develop townships within SEZs with residential, educational, health care and recreational facilities permitted on a case-to-case basis. The full discover of all the fiscal and non-fiscal incentives being offered to SEZ developers and units has been inclined in the (appendix-i). Apart from getting tax benefits from central government these zones are also getting tax benefits from state governments.TABLE 1. 7. 1 shows the list of tax benefits haltn by state governments to all the EPZs which has been converted into SEZs. Table 1. 7. 1 Exemption From The State Level Taxes By Zone Falta Cochin Chennai Noida Vizag Kandla 15 Sales tax Contract tax Purchase tax VAT State inlet tax Octroi tax CESS Luxury tax Entertainment tax St angstrom unit duty and registration chages on land transfers Stamp duty and registration charges on loan agreements/cred it kit and caboodle Yes No Yes Yes Yes No No No No No Yes n. a. n. a. n. a. Yes n. a. No n. a. n. a. Yes Yes n. a. n. a. n. a. n. . n. a. n. a. No No No Yes No Yes n. a. Yes Yes Yes No No No Yes n. a. Yes n. a. No No No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No No Yes Yes Source Agrawal,2004 Units within the SEZ and EPZ also get subsidies sometimes on land rents and built up areas are also provided on lower renting rate. In some countries utility services such as electricity, water, and telecommunication are also subsidized. Table 1. 7. 2 shows the list of subsidies being given to zone units in six EPZs (now SEZs) Table 1. 7. 2 Provision of subsidies by Zone FaltaOn land rent Factory rent On purchase on capital goods On capital investments Interest rate subsidies Concessional finance Any other Cochin Chennai Noida Vizag Kandla Yes Yes Yes Yes Yes Yes No Yes Yes No No No No No Yes Yes No No No No No Yes Yes No No No No No Yes Yes Yes Yes No No No Yes Yes No No No No No Source Agrawal,2004 In terms of fiscal and other benefits we are in the lead of China but the record of the Indian EPZs stands in contrast even to the performance of the general economy. Unlike other countries, in India, SEZs are being developed by the private sectors as well and to attract 16 he private and foreign investment a package of incentives is being offered by both state as well as central government. Later in the research paper an investigation has also been made to analyse the worth of these benefits. Section II Performance Analysis of EPZs & SEZs 17 Introduction What is a boffo SEZ? Is it the one that contributes to the host economy, one that generates profit for its own owners/managers? SEZs are extensions of EPZs and taking this into consideration, an attempt has been made to analyze the success of both EPZs and SEZs in India.It has been just five years since the creative activity of the SEZ policy in India. Some economists believe that its too early to comm ent upon its potential or chances of its failure. A significant change has been made in the rules and regulations but by and large the objectives of SEZs and EPZs are similar. Taking this into account this section has been devoted to explain the experience India had with EPZ policy in terms of export performance, employment generation, FDI inflow and infrastructure development. SEZs have been viewed as a cats-paw to attract FDI and boost the export sector, which will 8 yet create employment. It might be argued that policies like SEZ which has been introduced very recently can not be categorized as a good or a bad policy by looking at the performance analysis of five years but it definitely gives an insight into its potential success or failure. 2. 1 fate in Total Exports amount Analysis Exports from SEZs grew by 16. 4% from 2000-01 to 2004-05. In the same period, total exports in India grew by 12. 1%. This clearly indicates that disdain getting special interference, performanc e of SEZs in India is not satisfactory.Even, the share of exports from SEZs in the total exports of the country has only increased from 4. 2% in 2000-01 to 5. 1% in 2004-05. Its quite apparent from the diagram that Domestic Tariff Area is also more or less witnessing the same rate of growth. Exports from SEZ touched the figure of 18,309 crore in 2004-2005 which is just a mere 5% of the total exports from India. aim 2. 1. 1 Trend in export performance of SEZs Exports from SEZs (Rs. in Crores) 20000 Rs (in Crores) 15000 10000 (4) 5000 0 2000-01 2001-02 2002-03 2003-04 2004-05 Year 11) (8) (4) (8) Source Export Promotion Council, Ministry of Commerce & Industry, Government of India Note figures in parenthesis shows the No. of functional SEZs 19 Figure 2. 1. 2 Contribution of SEZs in countrys total Export SEZs contribution in countrys total export Contribution in partage 6. 00% 5. 00% 4. 00% 3. 00% 2. 00% 1. 00% 0. 00% 4. 20% 4. 40% 4. 70% 5. 10% 3. 90% 2000-01 2001-02 2002-03 2003 -04 2004-05 Year Source CII report, 2005 Study shows that initially EPZs also witnessed mellowed growth but gradually it started declining.In the early seventies, the growth rate of EPZs touched 77% but gradually it started coming down (Agrawal, 2004) and declined to 7% in 1999-00. Figure 2. 1. 3 indicates that the SEZs are failing to induce heartiness in the overall export performance of the economy. As the figure shows, despite a high growth of overall exports, SEZ contribution has remained constant over the years despite various other benefits. However, this may be restoration argued by saying that apart from exports government has other objectives like employment generation and attracting FDI but our analysis shows that SEZ scheme is also failing like EPZs in attracting FDI.Figure 2. 1. 3 Growth Trend of SEZ and Country Export 20 2000000 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 1990 1992 1994 1996 1998 2000 2002 Rs. in Crores SEZs export Country e xport Source sezindia. nic. in, Ministry of Commerce & Industry. Government of India 2. 2 FDI inflow and business India had a very slow expansion in the initial phases of EPZ policy. elaborateness in the zones started picking up in the 1980s in terms of employment but total investment remained unmeasurablely low work on the late 1980s8.In the 1990s, investment also started increasing. Growth rates in employment slowed down considerably in the late 1990s but in terms of investment EPZs in India occur to be dominate by domestic investment. This was despite its edge in terms of turn over costs, availability of trained manpower and a stable macroeconomic environment. The share of FDI in total investment increased slowly from 12% in 1989 to slightly over 18% in 2000 ( Agrawal, 2004). During 2000-03, however, FDI inflows increased faster. Table 2. 2. 1 below shows the share of FDI in EPZ/SEZ investment.In 2000, all the EPZs were converted into SEZs, and with new rules and incent ives it was expected that FDI will pour in but a more detailed study of Noida SEZ shows a mere 0. 4% growth in FDI investment in six years while in Chennai it just went up by 2. 3%. Despite this, new SEZs are nice the most sought after destinations for foreign investors, however the chances of decline in FDI in SEZs cant be ruled out as once the tax benefit period gets over and there would not be much incentives for investors to invest in SEZs. 21 TABLE 2. 2. Share of FDI in total EPZ/SEZ investment (%) Zone Kandla Santacruz Noida Chennai Cochin Falta Vizag 1997 1. 3 8. 4 12. 3 28. 4 9. 6 3. 1 2003 4. 9 9. 2 12. 7 30. 7 13. 7 4 38. 8 Source Ministry of Commerce & Industry. Government of India Unlike other countries, in India SEZs are being developed largely by private sectors and to avail the tax and other benefits private makeers are rushing in but it would be interesting to see if Govt doesnt extend the benefits again once the period gets over , will they be smooth intereste d in investing and building infrastructure. usage creation is one of the important goals which Indian government wants to achieve through SEZs but previous experiences with EPZ and other free trade zones doesnt give us any rosy picture. EPZ had a share of near about 1% in organized employment (Agrawal, 2004) and till now all eight functional SEZs has created 1 lac employment and it is being expected that in next five years it will cross the figure of 5 lac. Table 2. 2. 2 shows the employment generated by different zones and the amount of Government and private investment in these zones. Table 2. 2. 2 Zone impudent employment and Investment upto 31. 3. 2005 Private No of Zone units Employment as on 31. 03. 2005 Govt investment upto 31. 03. 2005 investment upto 31. 03. 2005 KSEZ SEEPZ NSEZ MSEZ CSEZ 123 176 151 105 74 9821 42150 19857 16107 4712 26. 93 57. 39 78. 04 74. 83 87. 53 134 279. 49 650 223. 96 92. 79 22 FSEZ VSEZ Surat Manikan chan 83 28 62 5 2 2 2753 2500 2250 300 50 150 8 2. 83 39. 3 32. 46 263. 85 311. 58 5. 07 4 1 3 Jaipur Indore Source Export Promotion Council, Ministry of Commerce & Industry. Government of India SEZ or any other free trade zone should not be viewed as a tool to generate employment.Studies show that even small countries like Philippines has created 1. 1 million jobs through these economic zones (KPMG Report, 2004) but despite being the first country to have EPZ in Asia, India failed to achieve a high employment rate. Dysfunctional policies, regulations, lack of single window clearance facilities, poor carriage of the officials, centralized governance, stringent delve laws, poor physical and financial infrastructure, all accounted for an undesirable investment climate and thus EPZ failed to create employment. SEZ should have witnessed much higher growth in exports and employment but it is not happening either.If SEZ policy is really an pillow slip of decentralized governance, is it capable to strengthen our physical and finan cial infrastructure and if single window clearance facilities are no longer a dream, all these issues and concerns have been emphasized in the last section. Generally, it is argued that the SEZ concept is attractive because it is much easier to resolve the problems of infrastructure and governance on a limited geographical area than it is to resolve them countrywide. On the contrary, the performance over the last five years of these privileged enclaves indicates the failure of this scheme.The zones cannot be insulated from the broader institutional and economic context of the country and be treated as an economy within the economy. Zones are a part of the economy and require overall improvement in the investment climate to ensure success in the long run. They should not, therefore, be viewed as an alternative to the overall development model. This is perhaps the reason why SEZs failed to fulfill the role of engines of economic growth in most countries on a sustainable basis. 23 Sect ion III A relative study of Chinese SEZ policy 24 3. SEZs in China The development of Special Economic Zones is one of the highlights of remarkable Chinese economic achievements. The Development of Chinese Special Economic Zones dates back to 1980s. It is different from Indian give SEZ in China is classified in two levels by their cases. SEZ is the whole city even whole province opened to special financial, investment and trade policy, while Economic and Technological Development Zones (ETDZ) is a comparatively small piece of land earmarked in coastal and other open cities for industry and trade development.As early as 1980, under the opening-up and reform policy, the Chinese Government set up the first group of Special Economic Zones in Shen Zhen, Zhu Hai, Shan Tou and Xia Men, 25 all of which are located in costal areas of Southeast China, followed by other 10 costal cities, Hai naan Province and Pu Dong area in Shanghai as the second group. To further open to the outside wor ld and to spread successful experiences of SEZs, at the beginning of 1984, the government decided to establish ETDZs along coastal line on the basis of successful experiences of and favorable policies granted to the SEZs in the previous period.Consequently, Chinas first group of 14 home(a) Economic and Technological Development Zones (NETDZ) were established from 1984 to 1988 successively. The distinguishing features of Chinese SEZs are their large size, investment friendly customs regime, flexible compass laws, liberal policy for DTA access, attractive package of incentives and delegation of powers in favour of provinces and local authorities for managing the zones. 3. Comparing Chinese SEZ policy with India In spite of the fact that India was a pioneer in creating one of the worldss first export processing zones at Kandla in 1965, EPZs have never had much impact on Indias export performance. Tariff exemption schemes have tended to be excessively complex and encourage a licence raj mentality at the operational level. Both economies are large emerging markets that had rather similar profiles in 1978. Today, China ranks number one as the worlds best-loved foreign investment destination. Closer examination of the FDI statistics suggests that Indias performance has been abysmal in similarity to China.India lags behind for a number of reasons. These include a high tariff regime, poor infrastructure (power, ports, roads and railways), and a regulative system that is too often not business-friendly and inflexible labour laws. In this section a comparison has been done between Chinese and Indian SEZ policy on different parameters like tax incentives, labor laws, FDI inflow, employment and export performance. First, consider the size of the proposed SEZs. Chinese SEZs are like townships. India has not gone that far, but according to the SEZ guidelines, the area of an SEZ should be 1000 hectares.It is being argued that large sized SEZs can perform better as they w ill have a larger scale of economy but on contrary to that the best performing SEZ in Mumbai has an 26 area of 93 acres only. It is being considered that one of the chinas success factors was large size of SEZs. For instance, entire Hai Nan Island has been accommodated as SEZ with an area of 34,000 Sq. km. Table 3. 2. 1 below shows the size of all five existing SEZs in china. Table 3. 2. 1 Size of Chinese SEZs SEZ 1) Shenzhen 2) Zhuhai 3) Xiamen 4) Hainan 5) Shantou Area (Sq. KM) 327 121 131 34000 234Source Kumar, 2003 thither is no doubt that SEZs have an edge over rest of the economy in terms of investment friendly environment and its quite obvious that if we have an investment friendly environment in a larger area, economy would do well. Rather than applying the theory of having larger scale of economy we should direction on an overall hassle free environment for export and this can be done only by extending the SEZ policy to whole country where every small and big export orient ed manufacturers will have the access to business friendly environment.One sideboard argument to this proposal might be that SEZ policy in India is being implemented on a pilot basis, and government can extend this policy to whole country if SEZ works as a tool to bring economic reform. But unfortunately SEZ policy nowhere dialog about extending the same hassle free system to rest of the country. It agent that carrying out businesses in hassle free environment would still be a dream for rest of the country, so infrastructure else where in the country would not improve.The performance of SEZ also depends on the inner infrastructure and how can we think of a great performance from SEZs when rest of the economy still suffers from the same unfriendly environment. 27 SEZs were established by the China to encourage foreign investment, bringing jobs, technical knowledge, and future tax revenues in return for significant tax concessions at start-up of the operations and over a number of years. The biggest benefit to the investor is significant tax concessions early in the project. Tax concessions offered to a manufacturing startup in Chinese SEZ are No tax during start-up years before making a profit The first year that any company makes a profit starts the Tax Clock and is year one The first and second year after the tax quantify starts, there is no tax. For years three and four, there is 1/2 of the expression tax rate. In the fifth year, the company pays the full normal tax rate In terms of tax benefits we are in the lead of china. In SEZ policy tax benefits has been increased in comparison to EPZ but the failure of EPZs indicates that tax benefits cant alone boost the FDI and export performance. Table 3. . 2 below compares the performance of these two countries. Table 3. 2. 2 Comparison of SEZ performance China Share of SEZs in total export Employmnet(Direct) generated through SEZs FDI inflow through SEZs India 5% 0. 1 million US $ 2 billion 23% 2 millio n US $ 60 billion Source KPMG report, ministry of commerce and industry (GoI) The contribution of Chinese SEZs to the country exports is in the range of 15-23%. According to available statistics, the share of SEZ exports to country exports in 1997 was 23% (i. e. approximately US $ 42 billion).Overall, all the zones put together have played an important role in the overall growth of the Chinese economy. These zones taken together employ more than two million people directly and approximately 16 million overall (both direct and indirect). Cumulatively, 20% of the total foreign direct investments 28 into China have made its way into SEZs (i. e. approximately US $ 60 billion till date). Performance of SEZs in these two countries should not be compared just on the basis of export and other figures because size wise Chinese SEZs are much larger than Indian SEZs.But even in performance (export, employment) per Sq. KM China witnessed higher rate of growth and it was possible because of thei r liberal framework of SEZ policy. As regards labour laws, it is difficult to imagine that a communist country like China has relaxed these laws by allowing a hire and disregard policy for the SEZs. This single measure went a long way in attracting foreign investment to these zones. After investors gained confidence in the productivity of Chinese work tear, the hire and fire policy was substituted by the contract system.There is grand justification for adopting in India a flexible labour policy in India, not just for these exporting enclaves but also for rest of the country. smashed and outdated labour laws hinder the economic development and it sets the rationale for having a labour reform. According to section 5B of the labour code any registered firm, that is employing more than 100 people, is required to seek authorization from the state government to conserve its manpower. The country budget of March 2002 promised a change in the legislation to raise the level to 300 bu t due to coalition government it never happened.The result is that formal-sector firms (those that are registered and that pay their taxes) loath to take on new employment, and the vast majority of Indias employment is informal, in small, tax-evading, unable enterprises. The policy in India on these critical issues is lukewarm. It just mentions that the laws of the land will apply and that the zones can be declared as public utilities under the industrial Disputes Act. Merely declaring SEZs as public utilities will, however, not serve much purpose as seen in the EPZ experience. The radical difference in the attitude of the Indian and Chinese governments on this matter is reflected n the recently produce investors guide for Special Economic Zones in India. It states the labour laws of the land will apply to all units inside the Zone. However, the respective State Governments may declare units within the SEZ as public utilities and may delegate powers of the Labour Commissioner to t he Development Commissioner of 29 the SEZ (Ministry of Commerce and Industry, 2002, p. 15). In China, the right to hire and fire has been enshrined in SEZ regulations since 1982. Moreover, in India there are strict regulations stipulating that contract labour is only allowed work of a temporary record.By contrast, the World Bank espouse (2002b), estimates that in Guangzhou firms employ more than 20 per cent of the labour force as non-permanent workers. Of course many Indian employers find ways round the regulations through outsourcing and less formal means but the current system undoubtedly reduces flexibility. China made the provincial and local authorities act as partners and stakeholders by delegating them powers for approving foreign investment. The SEZ authorities in China can approve investment proposals up to $30 million. This has been a significant feature of the Chinese policy and a key reader to the success of SEZs.The Indian policy only enables the State governments to set up SEZs, but does not empower them to approve investment proposals. These powers have been vested with the development commissioners concerned who represent the Central Government. This will result in centralization of work in their offices. Government boasts of decentralizing the whole process and dialog about single window clearance but anybody who goes through the SEZ act can figure out how complex and centralized this policy is. shoemakers last section of this research paper critically analyzes the so -called decentralized nature of the SEZ policy.Another ticklish issue is involvement of local government. Unless the State and local governments are directly made responsible for the management of SEZs and approving investment proposals, their political leadership and bureaucratic set up may not have any incentive to push the initiative forward. But in India all the important decisions are being taken by central government China has gone a step further by delegating powers to the local authorities. The local authority manages Shenzhen SEZ, which has the highest export turnover. 3. 3 received scenario in China 30Over the last five years the GDP growth of china has been near about 10% and SEZs is being viewed as an engine for this rapid growth. Higher GDP rate can be considered as one of the major success of SEZ policy but regional disparities as an outcome of this policy has forced China to rethink and restructure this policy. Per capita income in the richest city is over 50 times per capita income in poorest city. Awarding a privileged status to some zones at the cost of others is responsible for this higher variety. For instance, china had received the cumulative amount of US $ 128. billion of FDI between the year 1979 to 1995 and the coastal areas accounted for over 90% of all the FDI received in this period. It might be argued that there is no harm in developing country in pockets but how we can parry that these areas were developed by tax mone y paid by everyone. Government had to forego tax revenues as tax concessions were the main attracting features. All the tax revenue lost due to SEZ was/is being recovered through taxes from rest part of the country and resultantly all tax payers end up paying higher tax but the benefits are available for very some of them.I see this as the one of the main causes for high income disparity in China. To combat this problem even China has given accent mark on balanced development and tax benefits accorded to foreign investments in the SEZs has been partially lifted. Indias tax and tariff structures are still anti export. Indias high overall tariff rates, especially tariffs on intermediate products that are used by exporters, impose a heavy indirect tax on export competitiveness. Deregulation of the private sector is perhaps one of the most critical areas in the context of Indias reforms.Since almost 90-plus percent of the workforce is in the informal sector, it is of utmost importance to deregulate the private sector so as to get the unorganized sector workforce in the mainstream. Workers in large firms in the formal sector have a virtual guarantee of continued employment according to the Industrial Disputes Act. For firms of 100 employees or more, reductions in the workforce must be upon the permission of state government, which is almost never granted. Remarkably, loss-making firms are also not allowed to close their operations without government consent. The results of Indias ighly regulated labor markets have been devastating. Formal-sector employment in India is shockingly low, in large part 31 because so much urban employment is carried on outside of formal registration. start of a total labor force of around 406 million, formal sector employment accounts for only 28. 1 million. Of this, 19. 4 million works in the state sector (state enterprises and public administration), and just 8. 7 million works in private firms with formal employment. Indeed with a more open and deregulated economy (economy is not just SEZs), India may well be in a position to perform as China has done over the last two decades. 32SECTION- IV CASE STUDY NOIDA picky ECONOMIC ZONE 33 4. 1 Introduction Noida EPZ was established in 1984 and attained the status of SEZ in the year 2000. Based on their share in exports, past performance and potential for growth, software and gem & jewellery have been identified as the thrust areas. Spread in 310 acre, NSEZ is just after SEEPZ in terms of export performance. NSEZs law of propinquity to Delhi sets it apart from other SEZs. Being close to national capital it has an wakeful access to skilled manpower, abundant managerial and technical expertise. With 151 units in operation, NSEZ contributed 30% of total exports from SEZ in the year 2004.It employs 19,857 people and per unit employment is 131. In terms of per unit employment SEEPZ and MSEZ are ahead of NSEZ with 239 and 150 employee per unit respectively. Units in N SEZ get the tax benefits according to SEZ act but at the same time they have been exempted from the payment of stamp duty, trade tax and entry tax. Noida has witnessed higher growth in export in comparison to other SEZs. The figure 4. 1. 1 shows the export growth of NSEZ Figure 4. 1. 1 Export growth trend of NSEZ Export Growth of NSEZ 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04Exprort (in million) 15341 10143 10342 7483 8456 9924 Source NSEZ Authority The total government investment in NSEZ is Rs 78 crore while the private investment is of 650 crores. NSEZ has the highest private investments and the reason for this is better business opportunities due to its proximity to Delhi. Another important factor is incentives given by the state government. Over the years exports in textile and hardware has been 34 declining but gems & jewellery has witnessed a very high growth and in the year 2003-04 the total contribution was 49. 87% in total exports from NSEZ.The table below summarizes the contribution of different sectors in total exports. Table 4. 1. 1 Contribution of different sectors in exports from NSEZ Sector 19992000 1341 1660 1393 1201 1295 462 127 295 682 8456 Exports (Rs. Million) 2000-01 1388 2697 1786 1014 1928 329 88 269 843 10342 2001-02 1199 885 1906 1184 3015 207 100 287 1141 9924 2002-03 990 739 1787 1374 3437 238 53 229 1296 10143 2003-04 990 930 1980 1640 7650 310 50 230 1560 15341 Textile/Garments Hardware Software ENGG. Goods GEM & Jewellery Chemical & Pharma Leather Products Plastic/ pencil eraser/Synthetic Miscellaneous TotalSource NSEZ Authority 4. 2 The reasons for NSEZs success A) Proximity to Delhi One of the prime reasons of NSEZs success is its proximity to Delhi. Noida has better transport and other infrastructural facilities in comparison to others SEZ. Noida was developed as an industrial area and therefore, the whole environment is business friendly. Noida is just 24 KM aside from Delhi and it comes under national capital territory (NCT), so in terms of administration, infrastructure and business opportunities NSEZ has an edge over other SEZs. B) Special benefits given by the U. P. overnment It has been discussed in previous sections that the tax benefits are the key determinants in attracting investments. To woo the investors U. P. government has exempted SEZ developers and units from some state taxes as well and it has resulted in higher private investments in NSEZ Exemptions from the payment of entry tax, trade tax and stamp duty makes NSEZ the 35 most sought after destination for setting up the units. Due to these exemption units in NSEZ export more to reap the benefits given by the state government at the fullest. 36 Section V Policy Analysis A Critical Approach 37Without doing the cost benefit analysis when a government establishes any economic policy which affects all the people in a direct or indirect way, it becomes important to raise som e basic questions like whether the benefits of that policy would outweigh their costs, is it good for the country in the long run? SEZ policy has been enacted by parliament but ironically no cost benefit analysis was done before announcing it. As discussed earlier the prime objective of this scheme is to boost the export sector and a package of fiscal and non fiscal incentives are being offered to developers and units to achieve the objectives.One way to assess the rationale for having SEZ policy is to investigate what would have been the performance of the economy in the absence of this policy. Anticipating this would not be an tripping task. Export performance of our country has been abysmal and there was a need to take some measures but according to me, preferential treatment should be the last measure and firstly any government should root out all those evils which are hindering the growth of export or for that matter whole economy.Rigid tariff regime highly regulated labour ma rket, centralized governance are some major problems which obstruct the growth of the export sector and this also makes the investment climate unfriendly. Deregulating the labour market and decentralizing the whole process should have been the first anteriority of the government and making the whole country hassle free for investments and business opportunities would automatically boost the export sector. Establishing SEZs is a very complex task encompassing a wide range of policy, legal and regulatory issues.SEZ policy was praised initially as a well drafted policy but inter ministerial conflicts, heavy economic costs and recent cases of migration from DTA to SEZs actually highlights the finesse spots of its designers. 5. 1 Heavy Economic Costs According to SEZ Act 2005, the firms are eligible for getting an extended Income Tax holiday for 15 years. Firms and developers have also been exempted from excise duty and custom duty. A loss of Rs. 39,704 crore of duty under export promo tion schemes during 2003-04 (CAG Report, 2004) which accounts for 82% of customs duty collected that year gives an idea of how costly this whole affair is.According to an internal assessment by the 38 Finance Ministry, the Government may have to forego about Rs 90,000 crore in direct and indirect taxes over the next four years on account of SEZs. 5. 2 embodied Welfare Very recently an article written by M. Bhardwaj appeared in Business Standard which alleges that Haryana government acquired over 1700 acres of land from farmers at Rs. 300 crore and offered this land to Reliance for 360 crore in the take a leak of SEZ while it was estimated that land was worth 5,000 crore. This is a perfect example of corporate welfare.Its unbowed that the value of land goes up drastically when market anticipates the introduction of any such scheme into that particular area but taking away the land from farmers at a much lower rate cant be justified. According to the SEZ Act any state government can set up SEZ jointly with private sector. This can be called public private participation. Theoretically everything sounds good, so where is the problem. Now if any company has link with top politicians of a state, the possibility of favoured treatment cant be ruled out. Even in terms of incentives state can also offer a package of tax benefits.Imagine a situation where two firms which produces the same good, are operating from two different states and one of them gets an edge over another just because of preferential treatment by the state. Would you call it a fair competition? SEZ act enables the state government to offer land at a much lower rate and to provide extra incentives and what do we expect that the state governments would not misuse these powers? 5. 3 Migration from DTA to SEZ To avail all the facilities and incentives offered by SEZs, small firms and even big companies are shifting to these privileged enclaves.SEZs have encouraged internal migration. One of the prime o bjectives of this policy was to attract FDI but the share of FDI in investments in SEZs is very low and due to inward migration very fewer new manufacturing units have been set up in the SEZs. 5. 4 substantial Estate Play 39 State governments are offering land to SEZ developers at concessional rates. For real estate developers SEZ policy has come as an opportunity to grab the scarce land near cities. Ideally SEZs should be established in remote areas but due to lack of infrastructure the submerging of SEZs are near by cities.According to SEZ Act at to the lowest degree 25% of the total acquired area would be processing area and in the remaining area developers can build commercial complexes, malls, hospitals, hotels, educational institutions etcetera Minimum area requirement for setting up SEZ is 1000 hectares and according to SEZ guidelines developers get a tax break even on all the buildings on the 750 hectares. On going real estate boom has shifted the think from export to building residential complexes and commercial malls. Developers can always make huge profit from selling or leasing the buildings and this is where real estate play comes in.Land deals and compensation payments are known to be hot-beds of corruption so no wonder if farmers are being displaced from their place in the name of SEZ without giving adequate compensation. Conclusion Considering the need to boost export sector and attract FDI, government announced this policy but ironically the performance of SEZs in exports highlights the failure. When government should liberalize overall policy, government has decided to focus on one or two areas. The real attraction of SEZs is the tax holiday promised and to grow the business in hassle free environment firms are just shifting to these privileged enclaves.To compete with China a package of fiscal and non fiscal incentives are being given but this has been overlooked that tax benefits in chinas SEZ were available only to foreign investmen ts, not exports. All exemptions and fiscal incentives should go in the process of overall tax and labour reform. Giving preferential treatment to any particular area in the name of exports cant be justified in the democratic set up. Even if government wants to continue with this policy, only developers should be given the tax benefits if they are developing any SEZ in the remote area.The whole process is still centralized and government should minimize their role. 40 References 1. Official Website of SEZ. http// sezindia. nic. in. 2006, accessed on 23 whitethorn 2006 2. Ministry of Commerce. 2005. yearbook Report2004-05. 3. CII report. 2005. Special Economic Zone Engines for Growth. Available at http//www. ciionline. org/Northern/regionalfocus/836/images/sez. pdf. Accessed on 23 June 2006. 4. Bhardwaj, M. 2006. No review, RIL mega SEZ signing next week, says Haryana CM. June 13. Business Standard 5. Aggarwal, A. 2004. Export Processing Zones in india Analysis of the ExportPerforma nce. ICRIER Working paper No. 148. 6. Jain, S. 2006. Killing SEZs, making a killing. 22 May. Business Standard 7. Tondon Committee (1982) The Committee on Free trade Zones and 100% Export oriented Units, Apponited by the Ministry of Commerce, Government of India, September 1981. 8. IIPM Editorial. 2006. The Great Indian obsession. 9. The Hindu. 2005. Lok Sabha passes SEZ Bill. 11 May 10. Suchitra, M. 2006. The high cost of easy foreign exchange. 9 March. India Together 41 Annexure-1 (List of all the fiscal and non-fiscal benefits given to SEZ developers and units) i. 00% income tax exemption for a auction head off of five years and an additional 50% tax exemption for two years thereafter ii. 100% FDI in the manufacturing sector permitted through automatic route, barring a few sectors. iii. External commercial borrowings by SEZ units upto US$500 million in a year without any maturity restrictions through recognized banking channels. iv. Facility to retain 100% foreign exchange rece ipts in Exchange Earners Foreign Currency Account. v. 100% FDI permitted to SEZ franchisee in providing basic telephone services in SEZs. vi. vii. No cap on foreign investment for small scale sector reserved items.Exemption from industrial licensing requirements for items reserved for the SSI sector. viii. No import licence requirements 42 ix. Exemption from customs duties on import of capital goods, raw materials, consumables, spares etc x. Exemption from Central Excise duties on procurement of capital goods, raw materials, consumable spares etc. , from the domestic market. xi. xii. xiii. No routine examinations by Customs for export and import cargo. Facility to realize and repatriate export proceeds within 12 months. Profits allowed to be repatriated without any dividend-balancing requirement. xiv. xv.Job work on behalf of domestic exporters for direct export allowed. Subcontracting both domestic and international is permitted this facility is available to jewellery units as well . xvi. Exemption from Central Sales Tax and Service Tax Facilities to set up off-shore banking units in SEZs. Exemption from duties on import /procurement of goods for the development, operation and maintenance of SEZ. Income tax exemption for a block of 10 years in 15 years. Exemption from Service Tax 43 FDI to develop townships within SEZs with residential, educational, health care and recreational facilities permitted on a case-to-case basis.