1.13873!Procedural Paper Presentation

8/10/2019 1.13873!Procedural Paper Presentation

1/31

The 'Resource Curse' of theScheduled Areas Case of the

Bauxite Industry in Tribal EasternIndia

Procedural Paper PresentationPatrik Oskarsson

1 December, 2006

Supervisors:John Cameron

Oliver Springate-Baginski


2/31

Presentation Outline

Introduction Research Objective & Justification

Conceptual Framework Research Questions Methodology

Research Design Ethics


3/31

Introduction - Nimmalapadu Village, Andhra Pradesh


4/31

Introduction - Iron Ore Mines in Keonjhar District, Orissa


5/31

Introduction - Open Cast Coal Mine
http://localhost/var/www/apps/conversion/tmp/scratch_3/PhD/Temp/Data/Thakurani-Keonjhar%20Mines.kmz


6/31

Introduction - Nimmalapadu Village, Andhra Pradesh


7/31


8/31

Introduction Distribution of Benefits and Costs in Federal India

Sets Policies andRoyalties on MajorMinerals (bauxite, iron,coal etc.)

Major involvement inclearances (mainlyenvironmental)

Owner of biggestaluminium company

Land rights, land records Competes for investment

with other states At the center of demands

for development from voters Responsible for health and

education

Faces main costs ofmining and industry inthe form of landalienation andenvironmentaldegradation

Few incomeopportunities fromindustrialisationbecause of lack ofskills

Union

State

Scheduled Area


9/31

Objective and Justification

ObjectiveHow can the strategy of the state governments of Andhra Pradesh andOrissa in Eastern India to promote and expand the bauxite mineral industrybe understood given the conflict between this industry and not only, a) therights of the local tribal communities but also, b) an apparent imbalance

between the costs and benefits to and distribution within the state itself?

Justification for topic- Tribal People among Indias poorest communities - The main deposits of minerals (metals and coal) are found in tribal areas of

Central-Eastern India- Indias economic growth and integration with the world economy is causingrapidly increased mining- It is not very clear who actually benefits from mining and industry- Local state research is important when the state is becoming moreindependent from the national government


10/31

Resource Curse of the Scheduled Areas:

Continued poverty Increased inequality (to the rest of thestate) Environmental concerns

Land RightsPolitical Economy of

Industrialisation

Legal Verdicts andImplementation

CustomaryRights

Economic Incentives

Political Incentives

Elite

Capture

Social

Mobilisation

National andSociety Rights

Land Use

Conceptual Framework

Power


11/31

Key Concept 1 Land Rights

Individual and Group Rights Government and Society Rights

National

State

Constitution declaresScheduled Tribes and Scheduled

Areas Tribal education and jobReservation Right to life and livelihood

Tribal right to land (and the

non-transferability of this land) Right to have any law adjustedto specific conditions ofScheduled Areas

Right to acquire land for thebenefit of greater society, the

states eminent domain Rights to all major sub-surfaceminerals (bauxite, iron, coal etc.)

Right to all minor sub-surface

minerals (limestone, marble etc)


12/31

Key Concept 2 Political Economy of Industrialisation

Union

The Indian constitution defined India as a socialist republic withpoverty alleviation and social empowerment as its highest goals Industrialisation as one of the main means of reducing poverty (Kohli

2004) Indian state as captured by various interest groups and unable to live upto its ideals (Bardhan 1984; Rudolph & Rudolph 1987) Change with economic reforms from 1991 implied that the structure

was not as rigid as authors had earlier indicated Jenkins (1999)


13/31

State

Union government budget constraints has meant increasingindependence of the states Regional parties dominating/influencing national governments

Rise of competition states but also fiscally pressured states Reform by stealth since it would have gone against the wishes of thegeneral electorate (Jenkins 1999)

Studying the State: The developmental state as it is experienced by the poor (Corbridge et.al. 2005; Rudolph & Jacobsen 2006) Multiple formal and informal interests within the state (differentpolitical parties, departments within the bureaucracy, urban/ rural divide,the legal system as formally independent)

Key Concept 2 Political Economy of Industrialisation


14/31

Key Concept 3 The Resource Curse

1950-1980 Mineral Resources (metals, oil, gas, gemstones) are good! 1990 Mineral Resources are bad! Three types of curses:

1. Poor economic performance2. Political regimes with low levels of democracy

3. Internal conflicts and civil war Ross (2004:28) defines the resource curse as "the distributional conflictsthat commonly arise when resource wealth is unevenly distributedaround the country".

Strong empirical evidence and acceptance in policies that there is a

resource curse. But some countries have managed to overcome the curse(Rosser 2006)!

Resources are not per se cursed. Literature on the resource curse havefocused too much on the inherent qualities of resources and how theseproduce poor political, economic or other outcomes (Ross 2004; Rosser

2006).


15/31

New Opportunities in the Scheduled Areas:

Acquiring land which may or may not be used for industrial purposes

Resources used to attract domestic and international private investment

Extracting rents which require little accountability (compared to for

example direct taxation)

Creation of high value jobs for the educated middle class

Scheduled Area Experiences of Mining:

Few new jobs but those available will mean increased income. The local skill

and educational level is not adapted to industry

Environmental problems/ Water Scarcity

Displacement/Land Alienation



16/31

Objective and Research Questions

ObjectiveHow can the strategy of the state governments of Andhra Pradesh and Orissa in

Eastern India to promote and expand the bauxite mineral industry beunderstood given the conflict between this industry and not only, a) the rightsof the local tribal communities but also, b) an apparent imbalance between thecosts and benefits to and distribution within the state itself?

Research Questions1. What have been the changes to tribal rights to land and livelihood in the

Scheduled Areas of eastern India in relation to economic reforms andindustrialisation since the 1990s?

2. What are the characteristics of the political economy of the mineralindustry in relation to the benefits driving demand for increased mineralindustry expansion and the mitigation and distribution of associated costs?

3. What conclusions can be made about the functioning and importance ofthe local state in relation to the extraction and processing of bauxite andthe existence of endemic poverty in the tribal areas of India?


17/31

Methodology

Comparative State Analysis - India as controlled laboratory whenstudying the local state (Jenkins 2004): Same national regulations (Constitution, legal framework, major

mineral rules, environmental clearances) The states (Andhra Pradesh and Orissa) have similar institutional

setup and similar but still different land rights Same resource (bauxite) with same geology and technical process Different languages, political and economic histories

Components: Policy Analysis (Roe 1994; Hajer & Wagenaar 2003) Key Informant Interviews Legal Judgements and their implementation Cost/Benefit Analysis

Policy Debates


18/31

Methods - Research Design

State Orissa Andhra Pradesh

Deposits Biggest bauxite deposits in India(also iron, coal etc.)

Bauxite as main mineral inscheduled areas (also coal)

Current Industry NALCO is operating but manyupcoming mines and plants insouth Orissa

Attempts to circumvent theSamatha Judgement through ajoint venture

Economy Mineral Industry as only hope foreconomic development (minesand related industry).

Mineral industry relatively marginal(IT, pharmaceuticals, alsoagriculture)

Regimes Elitist and coastal domination Violently trying to push for the

industrial development that isseen as the only hope for the stateto prosper.

Populist and rhetoricallysupporting the struggling rural

population. Desperate to provide any sort ofdevelopment, especially nowthrough irrigation projects.

Tribes 8 million (22% of state total) 4.5 million (7% of state total)


19/31

Methods Data Collection

Union (Delhi)

State(Andhra Pradesh

and Orissa) Scheduled Area (about 5-6 large projects inresearch area)

Key InformantInterviews

Analysis of PublicIndustrial Policiesand BudgetDocuments (nationalscope)

Key InformantInterviews

Analysis of PublicIndustrial Policies andBudget Documents, legaldocuments andjudgements, investmentagreements (MoUs) (localstate scope)

Annual reports of

companies

Field Survey Analysis of mining

leases, land records,satellite imagery


20/31

Ethics in Research

Difficult Situation in Orissa means rural fieldwork will beminimised.

Local protest movements against industrialisation oftenfacing state violence

Low-level Maoist insurgency

Other means will be sought to estimate social impact andfocus on state-level mechanisms (land records, mining leases,satellite imagery)


21/31

Timeline

Preliminary Fieldwork Carried out in October 2006 Second Phase of Fieldwork Planned for January May 2007

PhD Plan

Feasibility Trip to IndiaWork on ProceduralPP PresentationFieldwork In Delhi In Andhra Pradesh In OrissaData AnalysisWriting Up

2005

Dec JanDec Jan

2006

JanOct Sep Apr May

2007 2008

SepFeb Mar Oct Nov Mar

2009

Oct Nov Feb


22/31

The End

Thank You!

Comments appreciated [email protected]


23/31

Extra Slides

Extra Slides


24/31

Bauxite Alumina Aluminium

Year Value (millionUSD)

Quantity(thousands kg)

Value (millionUSD)

Quantity(thousands kg)

Value (millionUSD)

1997 -1998 0.84 86,876.07 87.32 427,182.89 259.59

1998 -1999 5.74 98,942.25 38.78 216,878.74 142.53

1999 -2000 6.99 596,800.99 21.07 86,062.45 247.16

2000 -2001 27.38 1,248,175.41 43.26 189,309.53 337.22

2001 -2002 14.10 979,570.45 45.32 263,103.58 340.17

2002 -2003 32.14 1,785,350.22 191.29 1,101,614.37 375.48 2003 -2004 37.20 896,137.07 173.09 808,178.53 404.91

2004 -2005 29.86 1,016,141.85 294.06 957,703.69 541.27

2005 -2006 68.80 2,355,277.13 400.53 1,025,022.97 606.16

Source: Export-Import Data Bank, Department of Commerce, Governmentof India, http://dgft.delhi.nic.in/

Indian Bauxite Export Statistics

Bauxite is aluminium ore of different chemical compositions Alumina, aluminium oxide (Al2O3 ) 95% of all bauxite is turned into aluminium
http://dgft.delhi.nic.in/http://dgft.delhi.nic.in/


25/31

Methods - Data Collection

Type ofInformation

Sources Method

Economics ofmineral industry

Costs Cost of excavation and transport, Forestclearance, Water usage, Carbon dioxide usage,input materials

Benefits (state and national benefits should beseparated) Royalty (64 rupees per ton of bauxite), CESSIncome taxes and Excise, Employment, Customs Based on annual reports and other official data

where possible. International cases to be used where possible

Cost/Benefit Analysis

Politics ofdistribution

Legal documents, policy statements

Key informants: Politicians, Bureaucrats, Activists,Industrialists and Academics

Document Analysis

Semi-StructuredInterviews


26/31

Type ofInformation

Sources Method

Land use Land Records and Mining Leases

Satellite Imagery and GIS

Field Survey

Document Analysis

Policy Narratives Key informants: Politicians, Bureaucrats, Activists,Industrialists and Academics

Semi-StructuredInterviews

Methods - Data Collection


27/31


Indigenous Peoples and the Resource Curse: Local states can get caught up in resource struggles (Scholtz 2006) Linguistic and cultural differences, remoteness of location oftenmakes the curse more likely to happen Extra contributions to the local area might not even be enough to

avoid a resource curse (Ross 2004)


28/31

Key Concept 3 The Politics of Industrialisation in India

Pressures on the Local State:

State Government

Jobs for the UrbanMiddle Class

(powerful group with

money)

AgriculturalSupport to farmers

(vote bank)

Welfare Measures forLandless and other

rural poor (vote

bank)

National Government(fiscal discipline)

International Agencies(fiscal discipline,

transparency)

Pressure from above

Pressure from below

Political Party and itssupporters, industrialists

and other important

groups


29/31

Data Analysis

Policy Analysis

Cost/Benefit

Analysis

Land Use,Land Records,

MiningRecords

National and StateDistribution of

Royalties/ Welfare andLocal Support Systems

Conclusions

Discourse Analysis

KeyInformant

Interviews

Court Judgements


30/31

Mines

Industry

Agricultural land limit

10% slope mark

Valley View of Land Usage in Tribal Areas of Orissa

Source: Interview Researcher,Orissa, 2006-10-26


31/31

Layer of Bauxite on top of themountain (thickness 15-20metres)

= Village located along the mountainside

= Land claimed by tribal people astraditionally used

So rce: Inter ie Researcher Orissa 2006 10 26

Bauxite Mining in Kashipur on Bapthimala Mountain