Ilo Decent Work Agenda And Informal Economy Benefits Economics Essay

Ilo Decent Work Agenda And Informal Economy Benefits Economics Essay The informal economy defined to include all economic units that are not regulated by the state and all economically active persons who do not receive social protection through their work (ILO 2002), is as perennial and ubiquitous as human society. Discourse on it however, came to light in the early seventies with various studies in third world countries. Notwithstanding its inescapable nature, conceptualization and definition has been a problem for policy makers as well as those within academia. Myriad debates have come up on the issue with diverse views and remedies: some view informal workers as a nuisance to be eliminated or regulated; others see them as a vulnerable group to be assisted through social policies; still others view them as entrepreneurs to be freed from government regulations (Chen 2006:26). But neither the theoretic thoughts nor tangible ideas have provided a comprehensive framework on how to approach global informality and the new challenges it pose to policy makers. This essay critically examines the position of ILO influenced by the legalist perspective on formalizing the informal economy. Are there vested interests in promoting the decent work agenda? Is the decent work agenda merely a guise behind which informality continues to operate? Does the decent work approach take into account structures and institutions? The essay will delve into the argument of who benefits in formalizing the informal economy recognizing the fact that the informal head porter pay daily levies to the local government systems in Ghana but do not receive any benefit. A synopsis on informal economy and decent work agenda will first be outlined and how this applies to the head porter in Ghana. Finally, a conclusion will be drawn with some policy recommendations. Perspectives on Informality The informal economy was first discovered in Africa in the early 1970s due to the dominance of large scale self employed who do not fall within the formal economy. Economic anthropologist Keith Hart coined the term in his series of studies in Africa on the urban labour markets where he distinguished between wage earning and self employment. He emphasized on entrepreneurial dynamism and diversity of people in the informal sector (Hart 1990). This led to the development of three schools of thought dualist, legalist and structuralist perspectives which all try to conceptualize, explain and address the challenges of this complex phenomenon. The dualist posit the view that informal economy is peripheral or marginal and result out of the inadequate jobs in the formal economy and will recede with the development of the modern sector (Hart 1973; ILO 1972; Sethuraman 1976; Tokman 1978). The perspective therefore call for policy focus on support for the informal economy enterprises and workers in the form of credits and business development services with the assumption that the informal economy will fade away with more formal jobs. The structuralists, however, abruptly refute the dualist approach and contend that formal and informal economies are inextricably connected and interdependent the informal economy continues to exist because it is subordinated to the formal economy and enables the formal economy to reduce costs and increase profits (Moser 1978; Castells and Portes 1989, Bromley 1994). Hence policy focus should be on altering the unequal relationship that exists. The legalist approach spearheaded by De Soto (1989) subscribes to the notion that informality is as a result of the excessive over regulation by the state (rigid mercantilist) and hence the solution to the problem of informality is a liberalizing framework deregulate, de-bureaucratize and privatize. The approach therefore advocates for formalizing and the decent work agenda follows directly from this perspective despite influence from other frameworks. Notwithstanding the diversity of these concepts, informality continues to grow in new guises and different forms even in the industrialized nations. It is worth mentioning that none of the perspectives adequately explains or prescribes solutions to the problems of informality given its heterogeneous and multi segmented nature. Consequently, policy makers are faced with the dilemmas of whether to eradicate or formalize the informal economy. This has led to the suggestion of different ways of providing support for those in the informal economy which include licensing, provision of micro credit, training as well as enabling environment for collective action (Chen 2006) with more emphasis on formalizing. In spite of these suggestions, understanding of the formalization process varies and different actors tend to define formalization to suit them. Intrinsically, policy makers view formalizing as a way of licensing informal work and putting in place taxation structures. Conversely, the different informal workers and enterprises see formalizing as a means to attain support and receive the incentives and benefits of formality. Hence in formalizing, there are striking differences in terms of interests and needs which should reflect in the policies of countries. The institutional capacities, mechanisms and resources especially in developing countries are however, inadequate to cater for the wide variations. The above problems question the feasibility of formalizing the informal economy and De Sotos legalist approach to informal economy. Are the states in many countries well equipped to enable workers and enterprises in the informal economy move upward into formality? Formalization may not be that simple as envisaged it can be problematic and a nightmare to policy makers. Despite the complication, the informal economy can be reframed to fruitfully interact with the context and actors as well as reduce the associated vulnerability and risks. Consequently, new frameworks have emerged to take care of the policy challenge of decreasing the cost of working informally (Chen 2006:90-1) or reducing the decent work deficits of working informally (ILO 2002). The ILO decent work agenda champions the emerging consensus concerning the need to develop a framework that is appropriate and able to respond effectively to the problems faced by those in the informal economy. However is this agenda feasible in the mist of all these dilemmas? What can the ILO Decent Work do for Informality? The ILO (2002) defines decent work as productive work which generates an adequate income, in which workers rights are protected and where there is adequate social protection providing opportunities for men and women to obtain productive work in conditions of freedom, equality, security and human dignity. Decent work has been categorized into two different approaches. Some analysts have classified it into eleven measurement categories based on employment opportunities, acceptable work, adequate earnings and productive work, decent hours, stability and security of work, balancing work and family life, fair treatment in employment, safe work environment, social protection, social dialogue and workplace relations, and the economic and social context of decent work (Ghai 2006:27). The other approach views decent work from the perspective of security in which there are seven security indicators labour security, employment security, job security, work security, skill reproduction security , income security and representation security (ILO 2002). Therefore lack of access to these indicators at the macro (national), meso (enterprise) and micro (Individual) (Ghai 2006:27) levels leads to decent work deficits. These securities and indicators are inaccessible to workers in the informal economy albeit pockets of workers in the formal economy also have deficits for example the working poor. Hence in looking at the situation of those in the informal economy, decent work deficits are the main characteristics and apparent are poor quality unprotected and remunerated jobs, the absence of rights to work, inadequate social protection and lack of representation especially among women and young workers (ILO 2002:8). The decent work approach therefore recognizes that all those who work have rights at work, irrespective of where they work (ILO 2002: 8) and should have decent work. Notwithstanding this, a one-size-fit all policy cannot be developed for all segments. Decent work programmes need to take into consideration the diversity in labour markets, multi-segmented nature of informality, the role of government, institutions as well as cultural and historical backgrounds of nations. Decent work should therefore be seen as a goal to be achieved progressively from immediate to long term (ILO 2002). The immediate term focus is to recognize and give protection to those working in the informal economy, the short/medium and long term strategies are to enhance upward movement into formal decent jobs and the creation of formal decent employment opportunities for all respectively. Work should therefore meet decent work conditions which are seen as a source of dignity, satisfaction and fulfillment to workers (Ghai 2006:11). Limitations of Decent Work Paradigm The decent work agenda is a benign attempt to informality but ILO unlike the World Bank and IMF do not have the capacity to enforce and ensure that governments adhere to the decent work programme. Also, while the ILO outlined the securities that will make informal work decent, it does not provide insights into how these securities can be met and whose responsibility (individual, state, market, and other actors) it is to address and find solutions to the deficits. Moreover, ILO does not point out how to prioritize the securities in situations where it is impossible to have all seven fulfilled. The question is shall we prioritize or shall we try to achieve at the same time all the seven securities? Furthermore, whiles Chen (2006:27) assert that capacity of institutions, funding for incentives and social protection, inadequate formal jobs and employers not willing to convert as the problems that impede formalizing, she seems to forget about the vested interest and structural determinants that could hinder decent work. For example institutional obstacles such as the local government units in Ghana may stifle the decent work agenda as incorporating decent work framework will hinder the benefits they enjoy from the informality. Who benefits from formalizing: local government or head porter (Kayayei)? Before looking at the head porter and the local government systems in Ghana, it is important to have background information on the head porter business. The head porters popularly referred to as kayayei in Ghana are female young girls who migrate from northern parts of Ghana to the south predominantly Accra and Kumasi. Like other informal businesses, the kayayei are self employed and engage in carrying goods on their head from one place to the other, unpacking stores especially in market places as well as assist buyers in carrying purchased goods to various locations for a negotiated fee (Argawal et al 1997, Opare 2003, Awumbila 2007). Agarwal et al (1997) further indicates that these girls are part of the informal transport structure of Ghana that transport load from one place to the other and this commercial head load carrying is to be understood within the structure of economic activities of women in the informal economy, and the importance of petty trading as the predominant occu pation of women. Similarly, ILO (2004) and Awumbila (2007) notes that jobs engaged by these Kayayei pay low wages, have low productivity which leads to unstable incomes. The purpose of their involvement however, is to attain sufficient savings to convert to a more lucrative and less arduous occupation (Awumbila 2007:3). These head porters lack official registration, work in highly competitive market places, have deficits in all seven securities, and are exposed to diverse risks and shocks. Their daily vulnerability goes from running after busses for business to harassment from metropolitan agents for payment of daily levies. These head porters however, have various survival strategies which include collective credit and insurance (susu and adashi) schemes and organization of semi-permanent conjugal unions to reduce their vulnerability within the labour market (Awumbila Ardayfio-Schandorf 2008, Argawal et al 1997, Opare 2003). Much of the literature on the kayayei phenomenon talks about migration and livelihoods but hardly talked about is the levy they pay to the local government systems in Ghana but do not gain any form of social protection. Their activities like other informal businesses are not recognized but they are regulated by the metropolitan assemblies in the forms of daily levies. They pay fifty Ghana pesewas daily levy to agents of the assemblies and are hijacked in the course of their operations to pay before they can continue with their activities. It is however, unclear what the taxes collected from these girls are used for. They do not get any form of benefits, incentives or social protection from the local government. Evans (1989:582) describes the case of Zaire predatory state in which state officials squeeze resources from civil society without any more regard for the welfare of the citizenry than a predator has for the welfare of its prey. This predatory state scenario best describes the relationship between the local government and the head porter in Ghana. The metropolitan authorities benefits from the informality of the head porters and do not have any regard for their welfare. In such a case, implementing the decent work approach will serve as a dis-benefit to the government who only plays an opportunistic appropriation role. Hence, such structures may serve as obstacles to the decent work programme. Chen ( 2006:15) indicates that many activities in the informal economy do not generate enough output, employment or income to fall into existing tax brackets but these girls though do not generate enough income are still taxed and this further exacerbate their situation. Conclusion and policy recommendations Once the local government recognize the legality of the head porters through taxation, they are obliged to provide them with protection. For example their activities could be regulated by putting in fixed prices for carrying goods to certain distances to reduce their vulnerability in terms of negotiation. State should provide kayayei with vocational and negotiation skills training, recognize them in the labour laws and give basic security like health care, shelter, protection from eviction and harassment can cushion them against risks and shocks in their daily activities. For instance paying the premium for these head porters in the Ghana national health insurance scheme will take care of their health needs and further enhance their work. Similar welfare funds like the Bidi Workers Welfare and Head Loaders Funds in India could be established to provide social security benefits for these head porters. In addition, their micro insurance schemes and strategies could be enhanced especially the susu and adashi systems. These forms of collective contributions could be transformed into mutual systems of social security. The role of the state is vital in promoting such systems by providing an enabling environment and suitable policy framework to include these schemes. Moreover, the local government systems should recognize and protect the rights of the head porters since they play a facilitative role being part of the transport sector in Ghana. As Opare (2003) noted the kayeyei make useful contribution to the Ghanaian economy and should be recognized as such and provided with the necessary protection to enable reduce decent work deficits. Should these be considered for the social protection policies, it will help reduce the insecurity, vulnerability and material deprivation faced by these head porters.

British Girls and Women of the 90s †the Spice Girls, Girl Bands and Their Influence on British Culture

British Girls and Women of the 90s – The Spice Girls, Girl Bands and their Influence on British Culture The twentieth century will, without doubt, be viewed by historians as the Woman’s Hour. The status of women in Britain changed. More and more women started to leave their homes and join the labour market. They started to fight for their independence and political, economic and social rights. Women got more recognition from the society and they started to pursue equality with men.They progressed from being (almost) possessions of men, with no legal status of their own, to being considered legal citizens in their own right. As far as the political background is concerned, it is worth saying a few words about Margaret Thatcher. Following the defeat of the Conservatives in 1974 election, Margaret Hilda Thatcher was elected as the new leader. She wentaon to lead the Conservatives toathe victory in the election of 1979 andathe party remained in power until 1997. Christopher states that, â€Å"She was developing economicaideas which were guided by the fashionable theories of monetarism†(Christopher, 12).These involved reducing inflation with high interest rates and submitting all aspects of the economy to free-market theories and the laws of supply and demand. Her economic and political ideas, which came to be known as ‘Thatcherism’ began to be fully expressed and implemented. But in Britain, there were high rates of unemployment during the periods of the 1980s and early 90s. The jobs people lost were mostly skilled jobs in manufacturing industry, which were regarded as ‘men's jobs'. Massive cuts in state spending led to job losses in the public sector, which affected women equally.According to Christopher’s study: Because these jobs were usually semi-skilled or unskilled and low paid, the women were more interchangeable as employees and could find part-time office work or cleaning work, similarly low paid, elsewhere. ( Christopher, 13) Women wereabeginning to occupy postsain traditional male-dominatedaareas such as business,alaw and banks. aMany of them couldaenjoy the benefitsaof increasing financialaand sexual freedom,aand were postponing marriageaand children. By 1986 the economy wasastrong. There was an airaof enterprise and optimism asaa new society emerged. aBritain became oreaaffluent, competitive andamore interested inacash. There was a newageneration of stylishaand image-conscious consumers,aand spending on restaurants,aclothes, cars, homes and holidays reached recordalevels. Many various feminist groups appeared and the third-wave of feminism in the USA began. In the early 1990s, an underground feminist movement called Riot Grrrl jumpstarted the idea of female empowerment. Riot Grrrl was anaunderground feminist punk rock movementathat originally started inaWashington, in the early to mid-1990s – it wasaoften associated with third-waveafeminism. According to some, â€Å"Riot Grrrl . ands often addressed issues, such. as: domestic abuse, rape, sexuality, patriarchy, racism and female empowerment. Riot Grrrls were knownato start chapters, hold meetings,aand suport andaorganize womenain music. †(Schilt, 6). Theamovement allowedawomen their own spaceato create music andamake political statementsaabout the issuesathey were facing inathe punk rock community asawell as inasociety. Those ideas soon entered Great Britain. Shortly after that, British marketers began latching onto the catchphrase ‘girl power’ – which expressed aacultural phenomenon of the 1990saand earlya2000s. It is also linkedato third-waveafeminism.The most memorable example of ‘girl power’ is the Spice Girls. The Spice Girls wereaa Britishapop girlagroup formedain 1994 and the biggest popular cultural icons of the 1990s. As McGibbon mentions, â€Å"performing pop music, Spice Girls achieved a worldwide success, selling over 55 million albums all over the world , the most from among all female singing groups in the twentieth century. †(McGibbon, 23). Wherever they appeared, they could count on the support of the army of fans from all over the world, as well as the hysterical reaction of the media. The pop phenomenon – the Spice Girlsachanged the courseaof popularamusic andapopular culture.Both albums and eight of their singles releases achieved number one chart position in the UK. No pop group since the Beatles attracted as much media attention as the Spice Girls. Ginger,aBaby, Posh,aSporty andaScary were international stars, adored and ridiculed in equal measures which was the ultimate expression of media fame in the Nineties. The girls have made many achievements such as Wannabe – the Spice Girls’ first single – and the most successful song in their career. It plays a crucial role in their fame. The single Wannabe toppedathe UK Singles Chartafor sevenaweeks and acquired a latinumacertification byathe Bri tish Phonographic Industry. Sinclair concludes, â€Å"Itabecame theabest-sellingasingle by aafemale group, sellingaover six millionacopies worldwide. † (Sinclair, 78). In June 1997 the Girls undertook to make a feature-length film called Spiceworld – The Movie. The film was directed by Bob Spiers (director of Absolutely Fabulous, Fawlty Towers, and Are You Being Served? ) and was a comical narrative from the Spice Girls’ real life adventures. According to some, †the film was a runway success, becoming the second highest-grossing British film of 1997 (after Bean). (McGibbon, 45). Theayear 1997 sawathe Spice Girls capitalisingaon their fame throughaa multimillion dollaraphenomenon ofamerchandise, with hundredsaof official products. They may have made a great pop music, but if ever a group regarded their creative endeavours as a means to achieving a commercial end it was the Spice Girls. While pop stars through the decades have generally tried to a greater or lesser extent to protect their artistic integrity by not appearing to endorse unrelated or unsuitable products, the Spice Girls did the exact opposite.They were up for anything. According to Sinclair, „When it came to endorsements, it seemed that Spice Girls didn’t know the meaning of the word ‘No’. †(Sinclair, 50) There was apparently no product of consumer interest, however mundane or embarrassing, that it was beyond their ingenuity to adapt to the girl power credo. By the middleaof 1997, theaSpice Girlsahad signed up for product tie-in deals with Pepsi, Benetton, Feberge, Sony PlayStations, Polaroid cameras and Walker’s crisps. By the September 1997, the group were estimated to have earned $47 million by Forbes magazine, which ranked them at number 32 in their list of highest paid entertainers†. (http://www. sociology. org. uk/fchan1. pdf). This was a staggering achievement considering how little time they had been operating in the ma rketplace. All these achievements of the Spice Girls corroborate a huge potential of the band. Theaarrival of the Spice Girlsaadded to the new imageaand re-branding of Britain,aand underlined the growing worldapopularity of British, ratherathan U.S. , pop music. aThis fact was visible at the BRIT Awards ceremony in 1997. aThe group won twoaawards but itawas Halliwell's Union Jack mini-dress which she designed herself thataappeared in media coverageaall over the worldaand eventually became a symbol of ‘Cool Britannia’. They were the first pop phenomenon truly to understand the demands of the modern multi-media age, and to tailor their efforts accordingly. To their credit, the Spice Girls had an immensely powerful influence on children and teenagers. The girls were crazy about them.The kids of a generation whose musical horizons had previously been restricted to Mr Blobby, a character from a television show Noel's House Party, and Sesame Street singalongs, became sensitis ed to pop music thanks to the Spice Girls. Teenagers modelled on the girls dyeing hair red, performing dances and dressing up as their favourite Spice Girls. There were many all-girl bands which appeared during the existence of the Spice Girls such as: Attomic Kitten, Sugababes or Girls Aloud and many of which were created after the collapse of the group. All or most of them modelled themselves on those five wonderful girls.Despite the fact that there were, and still there are, many girl bands, none of them – also the aforementioned ones – has left such a big impression on pop music as the Spice Girls. As Sinclair states, ‘They became, almost overnight, a fondly regard and instantly recognisable part of British pop's royal family. † (Sinclair, 89). In summaries of their achievements ranging from the most informed biographies to the most aimless of pub conversations it was a generally held and often stated belief that, „the group put British music back on the world stage and ushered in a global renaissance in pop. † (Sinclair, 90).

Comparative Economics Studies of China and India Essay

In 1950, China and India was the two developing countries with largest resources in term of land and labor. At that time, they both had the comparable economic structures and degree of development. However, with the difference mainly in political systems, in which China is Socialist Communist government, while India adopt parliamentary democracy, and specific countries’ development policy, it leads to the difference in the rate of growth in industrialization in particular countries. The dissimilarities in political system account for the rate of decision making process. It is the particular reason China had its development policy change in 1978, which undertake export-oriented policy creating special economic zones (SEZs), result in being one of the fastest growing countries in the past 30 years, while In the case of India, before 1991, the economic growth is considerably low, referring as â€Å"Hindu rate of growth†, reflects slow growth in industrialization. After 1991, India had its economic reform policies, Industrialization begin to grow once more, especially with the support of SEZ Act in 2005. It is still questioned whether India could follow China in growth of industrialization due to poor quality of infrastructure and protesting in land acquisition. Introduction The development policy of China and India had it starting point since India’s independency in 1947 and China’s liberation in 1950. These two countries had merely identical initial position in term of economic structures. GDP per capita of China and India, using prices at 1960, were estimated to be 65 US dollar and 62 US dollar respectively. Also, total labor working in industry was 11 percent in India, while it was only 7 percent in China. Moreover, 9 percent of total output was generated in Large-scale manufacturing and utilities, similar to 6% in India. Likewise, Both China and India economies characterized by mass rural poverty under feudal mode of protection in the country side. However, the gap of industrialization between two countries began to widen during 1970s. As in 1980, there was a substantial disparity in percentage share of GDP, only 21. 9 percent in India, compare to 48. 5% in China (Saith, 2008. ) Why was the gap broadened due to similar economic structures? This paper focuses on the reason behind the different rate of industrialization that leads to discrepancy in economic growth. The first section analyzes about the distinction of Chinese and India’s political system, autocratic socialist versus parliamentary democracy, and how it affect the decision making process of two countries. Next section examines various policies of each country, including Import substitution policy of India during 1950-1990, China reform in 1979 with special economic zones (SEZs) and SEZ Act of India in 2005 and the success or failure of those policies. The third Section discusses the policy of land acquisition of China and India that contribute to industrial district. Section four reviews quality of infrastructure of two countries that affect the industrialization accordingly. The Final section concludes the paper. Political Systems There is a distinct political system between China and India. China or PRC is considered as a single-socialist party, in which general secretary of communist party is the president of PRC. This gives total power to communist party to rule over country, although there are minorities of eight other political parties. Furthermore, having economic reform in1978, it gave provincial leader powers to allocate resources in their province. Local economic performances among states evolved into the essential criterion to evaluate lower-level officials. These economic performances included GDP growth, to steel produced, the miles of road constructed (Li & Zhou, 2004. ) It created competition among state official to compete for promotion in to higher level, which increase efficiency in each states. Li and Zhou (2004) used data from 28 provincial units from 1979-1995, estimated with regressions, showing that annual growth rate of GDP has positive relationship with promotion (15 %. ) Moreover, with average growth rate over 5 years, result in positive relationship more than double of the result of annual growth rate (33%. In contrast, India constitutes a parliamentary multi-party democracy which more than 40 political parties. It can be said that Indian politics is dominated by duopoly of National Congress party and BJP party. However, those small regional parties still possess some political power as no parties have votes enough for being one-party government. After 1992, Indian politics have become politics of caste factions. Cand idates for legislative assembly seats have been selected from local faction leaders who have local ote banks in specific caste and community. There is no party which can be one-party dominance except being head of multi-party coalition (Stern, 2000. ) Also, with numerous political parties, those parties choose to play vote bank politics. Sometimes they prefer not to afflict with their vote banks, although it is better in terms of society (Inhovi, 2009. ) Moreover, the composition of state power of China and India which it was created during achieving independence or liberation is what make it difference between two political system. In India, the independence movement was supervised mainly by the people in the middle and upper castes. By this I mean, in the post-independence period, people in middle and upper castes can retain their power, while protecting their benefits. As a result, the Indian institutional framework is taking as a constraint toward industrialization and economic growth (Saith, 2008) On the other hand; revolutionary communist party led by Mao Zedong has taken control over china in 1950. Those powers were in the hand of the poor peasant and workers. Prior Status-quo and political structures were overthrown during the revolutionary under socialism. Therefore, the Chinese could adjust their institutional framework so that it is suitable for development of the countries. With the dissimilarity in political system, it leads to the differentiation in the decision making process. For China, which political system is one-party domination, the decision for policies can be made in the communist party as less transaction cost of negotiation among political parties and no obstacle from institutional framework and status-quo. But for India, having duopoly in politics with coalition of multi-party government, culture of patron-client relationship and vote banks system, such decision on policies takes longer time as high negotiation cost between political parties, and it might has conflict with their vote banks (Inhovi, 2009 . ) In addition, China had dual-track implementing system in decision making process, in which State Planning Committee (SPC) make important decision on policies. It also monitors and implements the policy, supporting by powerful party structure, result in successful solutions in terms of growth and infrastructure development. While, India had separated institutions of decision making process and implementation on policies. Strategic Plans were constructed by working groups, including representative of line ministries, technical experts and others. However, in reality, the implementation was deviated from the plan. In addition, past Indian development plans only pointed out directions but not specific goals, making implementation process harder. The distinct model of decision making process would affect both developments policies and infrastructure of both countries that lead to difference growth of industrialization and economic performance (Kim& Nangia, 2008. Development Policies In 1950s, India led by Nehru Gandhi launch first development plan, in which its objective was to promote industrialization which large investment were made basic industries. It was known as Import Substitution Policy (ISI). Self-reliance on industrial goods was their prime target. As a consequence, government placed heavy pr otection against domestic industries with licenses, permits and quotas. Only manufactured goods that improve productivity of industrial goods were allowed to import. The development of industrial sector was portrayed by central planning which controlled private sector through license and permits and massive investment in public sector, including specific industries exclusively reserved (McMillan& Naughton, 1992. ) Consequently, India industrialized that its industries mostly produce everything from tinned fruit to nuclear energy (Stern, 2000). However, the rate of industrialization is slow as in behalf of non-comparative advantage and high costs of producing goods. Still, average annual GDP growth in industrial sector in real term from 1951-1960 was 5. 7% (Reserved bank of India, 2011. ) At the same time, China had its development policy slightly differentiate from India. China also had development policy centrally planned. However, it relied on the collectivization of agricultural sector, using surplus on development of producing raw materials, investment goods industries and larger-scale, capital intensive industry. All trade of China was c ontrolled by foreign trade corporations, which indeed owned by ministry of Foreign trade. It regulated all imports and exports to specific quantitative guidelines. Similar to India, China’s export and import is irrelevant to country’s comparative advantage (Branstetter& Lardy, 2006. ) Then, in 1970s, there’s a turning point in Chinese economy. China, led by Deng Xiaoping, had a several economic reforms especially creating â€Å"special economic zones. † These zones were enacted for which foreign firms receive preferential tax and administrative treatment and given an unusually free hand in their operations (Branstetter& Lardy, 2006. ) By that time, there were 4 zones: Shenzen, Zhuhai, Xiamen and Shantou. The prime objective of SEZs was to serve as a bridge to introducing foreign capital, technology and knowledge and management know-how (Roychoudhury, 2010. ) These special economic zones had several advantages. First, each of the zones is extremely large in terms of geographical area; for instance, 2000 square kilometers in Shenzen. It creates cost advantage of economies of scale for industrial sector both internal and external, and low transportation cost among suppliers. Second, they locate in the coastal area, having ports and transport networks. Also, these zones were established near major cities or countries; for example, Shenzen neighbor Hongkong, and Xiamen borders Taiwan. It could attract foreign investment from nearby cities, boast industrialization in SEZs. Moreover, foreign industries received preferential tax in corporate tax rate; the actual tax burden is 11%, while domestic industry paid 23% in actual tax burden, although nowadays, the preferential tax had been lifted except few high-technology sector and small enterprises (Guo& Feng, 2007. SEZs helped foster rapid industrialization in China within its area; incentivize foreign investors using comparative advantage of cheap labor costs. Along with the assistance of import policy in 1987, which granted imports of raw materials, parts and components for exporting production purpose tax-free, China industrial sector emerged as low-wage assembly services (Branstetter& Lardy, 2006. ) As a result, SEZs growth has been enormous, as an example of Shenzen, which av erage annual GDP growth rate from 1980-2005 was 27%, later referred as â€Å"Shenzen Speed† (Guo& Feng, 2007. Later on, China has gained benefit from importing technical knowledge contained in capital goods, parts and components; as a result, some of the industry has shifted from assembling and processing services to self-manufacturing (Branstetter& Lardy, 2006. ) By the end of 2005, there are five Shenzen brands with sale more than 10 billion Yuan. The actual use of foreign capital inShenzen has increased to $3. 3 billion in 2006, compare to $153. 7 million in 1979 (Guo& Feng, 2007. ) 7% of gross world FDI flows in 2009 went in to China, increase significantly from 1% in 1980. In 2008, China had its share of world GDP in PPP basis of nearly 12% compare to 2% in 1980. China’s real GDP has increased average over 10% annually (Roychoudhury, 2010. ) SEZs policy has proved its own successful, accelerating industrialization and economic growth in China in the past 30 years. In contrast, coping with Hindu rate of growth for over 40 years, 3 percent per annum from 1947 to 1975 and 5 percent per annum from 1976-1991, India had its economic reform later in 1991, starting trade liberalization to oster industrialization and economic growth, including abolishing of industrial licensing, decreasing tariff protection, removing industries reserved for public sector and small-scale sector and liberalizing foreign direct investment. Before trade liberalization, the import substitution policy proved to be inefficiency due to licensing policy, high cost of producing, inflexibility of labor market and non-incentive for efficiency improvement (Ahluwalia, 2002. ) Companie s paid no attention on management training, quality control and advertising because there is only few or no competitor due to licensing policy and tariff protection. As in 1970s, Indian market for industrial goods soon exhausted as domestic market is small and low competitiveness against other companies in the world market. GDP growth in industrial sector of India from 1971-1980 is only 4. 3% especially growth from 1970-1976 is only 3. 4%, compare to 5. 9% and 6. 2% for growth from 1951-1960 and 1961-1970 respectively (reserved Bank of India, 2011. ) As a consequent, industrial licensing has been nullified, replaced by new competition law to increase competitive environment in domestic and international market. Moreover, 15 industries in public sector that was reserved exclusively, such as iron and steel, air transport services, have been opened for private companies to invest. Also, some of productions reserved for small-scale sector have been removed as those productions have export potential. Moreover, import licensing against capital goods and intermediate goods were removed in 1993, and quantitative restrictions on imports of manufactured consumer goods were abolished in 2001. It increased competitiveness for domestic industry, forcing to compete with other companies in global markets. In addition, Average tariff rate has reduced from 72. 5% in 1991-1992 to 15 percent in 2004, which will increase competition in domestic markets. However, the average tariff was considered high, comparing to China (Ahluwalia, 2002. ) The growth in economy and industrialization in India in late 2000s also partly came from â€Å"Special Economic Zones† or SEZ. In 2005, Government of India has passed SEZ A, which it goals was to incentivize local and foreign investors and promote export. There are numerous benefits investing under special economic zones.. Firstly, the government provided duty free import of goods for development, operation and maintenance of SEZ units. Secondly, income tax on export in the first 5 years is exempted, and 50% exempted in year 6TH -10TH and 50% of the export ploughed back export profit for year 11TH-15TH. Third, SEZs units also exempted from central sales tax, service tax and minimum alternate tax. Moreover, SEZs units could borrow from external commercial borrowing up to 500 million dollars in a year without maturity restriction. In addition, SEZs unit gain benefit from single window clearance for central and state approvals, which reduce transaction cost of dealing with governments (SEZ India website, 2011. ) The SEZs policy in India is quite similar to SEZs policy in China; however, there are some distinctions between two countries. First, SEZs units in China mostly produce industrial products or consider in industrial sector, while in India, it can be both industrial sector and service sector. IT/ITES/Electronic hardware Technology parks accounted for 61. 3% of formal approvals of SEZs.

Causes Of The Whiskey Rebellion - 1521 Words

Taxes. No one likes them, but taxes are something that everybody has to pay. This statement was very true for colonial America. One of the biggest factors resulting in America revolting against the British was the various taxes Britain levied on the Americans. After the American Revolution, taxes were not able to be enacted until the Articles of Confederation were eliminated and the US Constitution was established. The Constitution allowed Congress to levy their first tax on domestic goods, which was on distilled beverages. This tax proved to be the ultimate test for the growing America, and would begin the Whiskey Rebellion. In 1791, the United States Congress had just passed a new tax on alcohol, with a vote of 35-21, in hopes of paying†¦show more content†¦These attacks grew more personal when they targeted General John Neville, a federal tax inspector. While at first an opponent of the law, he later grew to accept the law, which made many view General Neville as a traitor. Tom the Tinkers men proceeded to create a straw likeness of Neville and burned it South of Pittsburgh. New of the burning spread across the nation, and as a result the government had to start taking action. The Federal District Attorney, William Rawle, required that all those not paying the tax were to come to Philadelphia at federal court. Later it was changed so those who failed to pay the tax could go to local courts, but by then it was too late. The US marshal David Lenox was already sent to deliver the writs to the offending people. Lenox would later be joined by General Neville, and they would soon be greeted by the g reatest conflict of the Whiskey Rebellion. Lenox and General Neville proceeded to William Miller’s farm to give miller summons to what they thought would be a peaceful process. A problem arose when Miller was told to pay a $250 fine(approximately $5,300 today) and had to use even more resources to travel to Pennsylvania, to be seen in court. Outraged, he started a vocal debate with Lenox. General Neville, after noticing two figures following Neville and Lenox, made Lenox leave with him. While heading towards Neville’s home of Bower Hill, Neville and Lenox heardShow MoreRelatedCauses And Reasons Of Shays Rebellion And The Whiskey Rebellion1244 Words   |  5 Pagesmost times resented them. Their resentment in relation to the taxes sparked protests and led to large scale rebellions to express their grievances to the government. Both Shays rebellion and the Whiskey Rebellion were similar in their causes and purpose but they differed in consequences and their significance. Shays Rebellion and The Whiskey Rebellion were both fought for similar causes and purpose. Following the revolution, the United States was faced with economic hardships. Leaders often turnedRead MorePolitical Parties in George Washingtons Cabinet758 Words   |  4 Pagescentral government, while the anti-federalists opposed most their ideas. Over time, the gradual development of political parties resulted in the Democrat and Republican parties we have today. The Whiskey Rebellion and different views between the Federalists and Antifederalists were a couple of the main causes that led to the rise of political parties in the 1790’s. The conflict between the Antifederalists and the Federalists had a tremendous impact on the formation of political parties. Thomas JeffersonRead MoreThe United States And The Revolutionary War952 Words   |  4 PagesImagine one day after a long day off work in the fields, you go to your local pub or watering hole and you ask for your favorite brand of whiskey on the rocks. Then bam, there’s a tax on it. Not much, but not only do you have not just pay the 2 cents for your whiskey but you’re paying an extra penny for your favorite drink to the government. You thought your Government was getting rid of taxes forever but no, you have to pay for the cost of your freedom, because freedom is never free. In 1791, almostRead MoreThe Whiskey Rebellion: Frontier Epilogue to the American Revolution by Thomas P. Slaugther1010 Words   |  5 PagesProfessor Thomas Slaughter has provided a most thorough overview of the Whiskey Rebellion, which he asserts had by the time this book was conceived nearly two centuries after the episode transpired, had become a largely forgotten chapter of our nations history since the time of the Civil War. He cites as direct evidence of this fact the almost complete absence of any mention of the event in many contemporary textbooks of the conservative era of the 1980s, which this reviewer can attest to as wellRead MoreThe Evolution Of Whiskey, Victor Kong1128 Words   |  5 Pages The Evolution of Whiskey Victor Hong San Jose State University Whiskey is the art of distillation and Whiskey was created in Ireland and was called â€Å"Usquebah† and during the 15th century. A document that was written by Morysson, a secretary of a lord during the rebellion in Ireland that dates back to 1599 stating that Dublin and many other cities in Ireland had taverns where alcohol was sold but it also carried a distinctive alcohol called the Usquebah/Usige beath (waterRead MoreGun Control During The Civil War1407 Words   |  6 Pagesauthority which ultimately led to Shay s Rebellion. The war against Great Britain put a financial strain upon America s economy and individual states created different strategies to deal with the war debt. Massachusetts implemented high taxes into their policy which hit the western farmers pretty hard. They retaliated by calling themselves Regulators, taking up arms, and marching to their local courthouses in regiments to suppress their government. The rebellion became an important part of the militiaRead MoreExplain The Strengths And Weaknesses Of The Articles Of Confederation857 Words   |  4 Pagesconstitutional convention. Washington was a great leader. During 1794 the whiskey rebellion began. The whiskey rebellion was carried out by farmers in Pennsylvania who were against Hamiltons excise tax on whiskey. This was a violent rebellion where several federal officers ended up being killed in riots to serve arrest warrants on the offenders. In October 1794, the continental army, led by Washington, put down the rebellion. The incident showed that the new government under the Constitution couldRead MoreThe Early Republic ( 1775 )1052 Words   |  5 Pagesto work on plantations. However, perspectives on slaves and women had a significance difference in a positive manner after the Revolutionary War. The economic effects after the American Revolution were not very dominant. The Shay’s Rebellion and Whiskey Rebellion would be the most significance events regarding America’s economy during this period. Due to the weaknesses of the Articles of Confederation, the flow of goods decreased, causing unemployment in the seaports as well as reduced the pricesRead MoreWhiskey Rebellion Essay2238 Words   |  9 Pagessuch as alcohol or in modern America, gasoline. This unpopular tax would test the Washington administration when a tax protest, which becomes known as the Whiskey Rebellion, occurred in four counties western Pennsylvania. This tax was officially known as the Whiskey Excise Tax, and took effect in March of 1791 (Slaughter, 1986, 100). This Whiskey Tax became the first tax that the federal government levied against a domestic product (Hogeland, 2006, 27). Many people, including Hamilton, thought thisRead MoreThe War Was The American Revolution1441 Words   |  6 Pagessaying no taxation without representation. The taxes continued to grow and so did our anger the final straw was when the British put taxes upon tea . The taxation of tea cause the American to become infuriated and create a group called the sons of liberty which dumped thousands of dollars of tea into the great blue sea the cause of this led to the intolerable acts Massachusetts in 1774. This law enforced by British Parliament consisted of taking away Massachusetts historical rights, self – government