View Full Version : Special Economic Zones
¿Que?
24th January 2011, 00:58
Yeah, so I spilled my mouth about SEZs on facebook, and realize I have not elaborated any cogent critique of them, besides the fact that they're generally ultra-capitalist regions in otherwise regulated or state managed economies. My question:
Can you offer a brief critique or links that critique them?
What is life like in an SEZ. I was under the impression that it was miserable, but I read something in wikipedia that gave me another impression.
Thanks
The Idler
24th January 2011, 20:07
Naomi Klein covered them extensively in No Logo and Fences and Windows.
Widerstand
24th January 2011, 20:21
SEZs have special "incentives" in place to attract foreign companies. A countries labor laws often do not apply within SEZs - minimum wage, maximum work time, right to strike, minimum safety requirements (fire exits etc.), right to take breaks, etc. usually don't exist, or only in very limited forms. Often a military or paramilitary group seals them off from the outside (press is often not allowed to enter) and serves to put down strikes and such. As another incentive, they usually operate with minimal or no taxation. Despite contrary claims, they are not beneficial or stimulative to the local economy, in fact they are the opposite. In No Logo, Naomi Klein describes a few cases in which SEZs destroyed domestic business, which in turn drove even more people into them.
Aside Naomi Klein's work mentioned above (which is excellent by the way), I reckon there are also some ILO (International Labor Organization; UN organ) reports which describe how they failed to meet their promises. You'll probably find information from NGOs like Attac, Amnesty International or Human Rights Watch, too.
Kotze
24th January 2011, 21:56
Despite contrary claims, they are not beneficial or stimulative to the local economy, in fact they are the opposite.Careful, the moment you say something broad like that your stance is open to being countered by an anecdote and if you don't know the specifics about exactly that counterexample, you are screwed. If you want to be perceived as the debate winner, it's better to bring up a specific example yourself, where you are sure about the details. Hovewer, whether you "win" or not, duelling anecdotes don't really proof whether SEZs are more bad than good or vice versa.
It should be easy to make a general point that quickly putting a hi-tech factory somewhere where it fits like a crashed UFO and giving it subsidies and tax breaks won't bring lasting benefits to the general population. Jane Jacobs wrote about building industry as a gradual process of import substitution and here (http://www.zompist.com/jacobs.html) is an article about her view.
Factories (or any transplantable work operation) are not the cause of development; they're a late effect.
Jacobs offers an edifying parable. In 1975, the Shah of Iran signed a contract to build an immense helicopter factory in Isfahan. The chief contractor was Textron, which set up a subsidiary in Euless, Texas, to handle development of the helicopter itself. The factory construction was subcontracted to Jones Construction Co. of Charlotte, North Carolina.
Jones delegated the electrical portion of the factory to Howard P. Foley Co. of Washington DC; Foley in turn employed six electrical wholesalers-- e.g. S-Tran Products of Alexandria, Louisiana, which in turn subcontracted the switching gear to General Electric, involving plants in Texas, North Carolina, Illinois, and Iowa. Jones subcontracted the air conditioning and plumbing to Sam P. Wallace Co. of Dallas, Texas, whose net of sub-subcontractors embraced 150 companies.
The Shah thought he was buying development, making Iran into an advanced nation. But all he was buying was a factory, though an immense one. What he needed in order to actually be developed was what he couldn't buy: the web of thousands of companies that together enabled to US to build that factory.Successful import substitution requires a transfer of expertise which can be helped by a state that is willing to break with "free trade" ideology.
S.Artesian
24th January 2011, 22:07
Yeah, so I spilled my mouth about SEZs on facebook, and realize I have not elaborated any cogent critique of them, besides the fact that they're generally ultra-capitalist regions in otherwise regulated or state managed economies. My question:
Can you offer a brief critique or links that critique them?
What is life like in an SEZ. I was under the impression that it was miserable, but I read something in wikipedia that gave me another impression.
Thanks
Check out working, and living conditions in Juarez, Mexico.
S.Artesian
25th January 2011, 04:29
This site: http://en.maquilasolidarity.org/ should have some helpful information.
¿Que?
25th January 2011, 04:36
This site: http://en.maquilasolidarity.org/ should have some helpful information.
Thanks. I will look into it. I'm going to see if any orgs in my area plan on doing anything associated with the February action.
S.Artesian
25th January 2011, 05:20
Keep in mind the gender facet in the SEZs. In China, in the Guangdong, legions of young women "come out" of their villages after high school to work in the SEZ in around Shenzen, etc. Since migrant laborers technically lose their "legal" status-- their entitlement to certain benefits and protections, these women can be easily abused. Interesting book on the subject is Factory Girls by Leslie T. Chang.
In the maquiladoras of the Dominican Republic, Honduras etc. young women are essential to production; and I think if we look we'll also see that where certain countries have lost "competitive advantage" in their SEZs [like in textiles and clothing after the expiration of the MFA pact ] the toll taken on these young women, as far as unemployment, wage loss, being driven into the sex trade has been quite serious.
S.Artesian
25th January 2011, 18:41
Here's another site with lots of info:
http://coalitionforjustice.info/CJM_Website/New_Sites/Home/Home.html
¿Que?
25th January 2011, 22:07
Here's another site with lots of info:
http://coalitionforjustice.info/CJM_Website/New_Sites/Home/Home.html
That is very inspiring, but I'm wondering how much it actually accomplished...
S.Artesian
26th January 2011, 04:53
That is very inspiring, but I'm wondering how much it actually accomplished...
I don't know. It appears the website has been kind of abandoned.
medison
26th January 2011, 05:12
This site: en.maquilasolidarity.org should have some helpful information.
Thank so much
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