Distributed agile software development Essay Example | Topics and Well Written Essays - 500 words

Circulated spry programming improvement - Essay Example Spry standards have been proposed as the best answer for the various correspondence provokes identified with Distributed programming improvement. Lithe programming improvement alludes to a gathering of programming advancement strategies that plan to accomplish a progressively deft and lighter advancement prepared which subsequently make them progressively receptive to change. We can on the other hand term lithe programming improvement as a gathering of strategies for programming advancement dependent on both iterative and steady turns of events. Moreover, their goals and prerequisites change through an organization between cross-utilitarian and self-sorting out groups (Torgeir, Sridhar, Venu and Nils 2012, p. 1213-1221). Torgeir, Sridhar, Venu and Nils (2012, p. 1213-1221) states that the coordinated programming strategies are tied down on different standards. The first is to create programming that meet client necessities. Different standards are tolerating any progressions that may emerge in prerequisites at any improvement stage, guaranteeing there is support of the current collaboration between the engineers and the clients every day during the venture advancement cycle and in conclusion being to create on a test-driven premise which suggests composing a test preceding composing a code (Torgeir, Sridhar, Venu and Nils 2012, p. 1213-1221). We can term nimbleness to allude to get rid of a large portion of the greatness in an offer to advancing gathering of snappy reaction towards evolving situations, the adjustments in the necessities of the clients and quickening the undertaking cutoff times. Appropriated deft improvement forms have been applied with progress to numerous undertakings. Deft circulated advancement process has been effectively applied on an undertaking including a developer’s group dispersed in the scholastic workspace. We likewise have the DART venture which was an exploration venture on various web applications with one of the fundamental objectives being to dissect

"Critique on Rupert Murdoch's tweet and being a muslim in Article

Evaluate on Rupert Murdoch's tweet and being a muslim in the european culture - Article Example Dread assaults have generally been connected to Islamic radicalism than some other religion on the planet. Since the dread assault on 9/11 in U.S, a great many people over the world have created islamaphobia with each resulting fear assault, for example, the one coordinated to French Newspaper (Erlanger, and Bennhold, 2015). In any case, Islam has been forced to bear outlandish analysis since dread assaults have consistently been coordinated by a couple of radical gatherings and not the whole Islam people group. As per U.S Congress connecting psychological oppression to Islam just fills scorn and dread, which is an or more for the fear based oppressors (2007). Accordingly, Murdoch’s slants ought to be assessed in this light. For sure, Islamic pioneers over the world have consistently denounced several fear assaults. Furthermore, there are various fear assaults previously sorted out and executed by non-Muslims. It very well may be contended that Murdoch’s tweet speaks to an attitude of numerous individuals across social settings. As per him, Islam needs to convey the cross at whatever point any fear coordinated by Islamic radicalism occurs. While Islamic pioneers, for example, Olivier Roy have censured dread assaults each time assaults occur (Erlanger, and Bennhold, 2015) , the whole Islamic people group has not taken a solid and enduring stand against psychological oppression. For example, Islamic pioneers have not been on the worldwide front line in subsidizing hostile to fear related associations and crusades. A large portion of the help Islam has given to hostile to fear based oppression exercises has for the most part stayed verbal (Frost, 2008). From Murdoch’s point of view, Islam has an increasingly thorough activity to do with regards to battling fear mongering. In any case, Murdoch has been profoundly reprimanded along with others who share his belief system in regards to Islam and psychological oppression. It is seemingly unthinkable for the whole Islam people group to battle

Chemical Engineer Resume Examples, Template, and Resume Tips

Chemical Engineer Resume Examples, Template, and Resume Tips Whether we like chemistry or not, it is all around us. It is an inevitable part of our lives and incorporates every aspect of what we consume and do.Sometimes we are aware, and at other times we are not, but we use our knowledge of chemistry, be it vast or not, to make daily decisions.Here are some examples of how this scientific field influences our lives, that we are often not conscious of.When we are thirsty or crave a certain type of food, our bodies actually need a specific chemical element to improve their current state.When we feel an emotion, any emotion, that is the body producing certain hormones, which are actually chemical structures.When we wash our hands or have a shower, the chemicals used for making soaps and shower gels get rid of the dirt.We choose cosmetic products because of their influence on our skin, which is also achieved by mixing specific chemical substances in a particular ratio.These are just some examples of how chemistry is an important part of everyoneâ €™s day-to-day life. It can improve our health or be detrimental to it.Hence, it is very important for every person on our planet that the people who make decisions related to chemistry, in any industry from food and pharmacy to cosmetics and agriculture.You can see that any line of work that involves the knowledge and use of chemistry is very important, let us even say vital for the wellbeing of the people who use the products.Every employer who needs a chemical engineer for their company will choose the one who seems the most professional and knowledgeable.Chemical engineers can work in a vast number of industries, the most common being energy, water, food, and pharmaceutical sectors.Most of these jobs belong to one of the following two groups:the design, manufacture, and operation of machinery and plants, orthe development of substances and materials.If you have a degree and want to land a job as a chemical engineer, the first step is to write a good resume. It should stand out a mong a multitude of other applicants.It should catch the hiring manager’s eye. It should be clear and concise to the end. It should be relevant to the position you are applying for.We will walk you through the steps to achieving a perfect chemical engineer resume that will impress your desired employer.For a great resume template, you can use our resume builder and take your mind off the tedious job of organizing the margins, sections, and other technical aspects of writing it.You will be able to focus your attention on the important part â€" making your professional self attractive for employment.In the continuation, we will present two exemplary resumes â€" you will be able to see what yours should look like and get the basic idea about it.Afterward, we will guide you through each section, giving you useful and practical advice on how to make each section the best.Chemical Process Engineer Resume Example Right Chemical Engineer Resume Example Right Create your own resumeHERE IS WHAT YOU SHOULD INCLUDE IN THE PERSONAL INFO SECTION OF YOUR RESUMEAt first sight, this section seems quite simple to write.However, if you take a deeper look, you may catch yourself analyzing a bunch of information, not being able to make out whether you should include them in your resume or not.So, how should you decide what is suitable to be included in a chemical engineer resume, and what should be excluded from it?The answer is quite simple actually. Put yourself in the hiring manager’s shoes and think about which pieces of information would be really useful for them.Remember that they probably have many resumes to look at and that they do not have time to waste on going through the useless details about any candidate.Thus, exclude everything that is of no meaning for your potential employer.Let us take a look at which personal information is significant for a person who is looking to employ a new chemical engineer:Full nameOf course, the employe r wants to know your first and last name. However, in order for you to present yourself in the best light, you should bear in mind that no nicknames are acceptable.You should use your full name both in your resume and when you introduce yourself at an interview.Douglas Lahr RightDouglas ‘TripleDunk’ Lahr or Dougie Lahr WrongProfessionIt is good to enter your current title, or the last position you worked at.This will give the hiring manager an idea about what you may be able to do in the company.You should definitely choose the title that suits your desired job best.PhotoSome jobs (a model, for example) require the candidates to include a photo in their resume. But for you as a chemical engineer, it is an optional item.In some countries, it is not a usual practice to include a photo, in other it is.Similarly, some people have the habit of adding it to their resume, others do not.If you decide to include it, you should remember that it needs to be a serious business photo. You should avoid informal photos. Here are some tips to follow when you choose it:Photo instructionsSingle-color backgroundBusiness attire, serious or slightly smiling faceWell-groomed beard and/or mustache (for men)Enough make-up to look elegant (for women)Tidy hairStraight pose RightPhoto instructionsColorful backgroundInformal clothes, wigs, masks, grimaceMessy beard and/or mustacheToo much make-up (or no make-up if you look tired or sleepy)Messy hairBent or twisted pose WrongAddressThough you may think that this is not a really important item for you as a chemical engineer, we want to assure you that it is quite significant.For example, if you are applying to work in a factory that is far from the residential area where you live, the employer may pay for your commute or have organized transport.Also, if they have a branch that is closer to your residence, you may have the chance to get a job closer to your home. So, do not omit this information from your resume.Phone numberTelepho ne calls are a usual way of communication in any industry and level of the business hierarchy.So logically, you should not only include your phone number but check it thoroughly to be sure that you have written it correctly.You do not want to lose a good opportunity because of a small mistake such as a wrongly written phone number!Email addressIn the same way as phone numbers, emails are a common manner of business communication. So, write your email address carefully and double-check it, especially if you have dots, underlines, or hyphens.One more thing to have in mind in relation to this item is the address itself.In the same way as your name, your email address should present you as a serious job-seeking engineer.You should not use the funny address you use for contacting your friends. It should include your first and last name ideally.douglas.lahr@yahoo.com Rightdougie.3pledunk@yahoo.com WrongSocial media profile(s)Social media has become very popular nowadays.However, a hirin g manager seeking a good chemical engineer does not want to look at your Facebook or Instagram profiles where they can see funny posts or your pictures from the previous vacation or your cousin’s wedding.For some professions, these are important to be included.For a chemical engineer, though, they are not. Still, if you choose to include them, make sure that only the appropriate content is displayed.Let us repeat once again, your private life should not be a part of your resume.One social media profile that is acceptable and appropriate for you to include is LinkedIn.This is a social media website aimed at professional people seeking or offering jobs.This can also be scanned as a part of your resume, so make sure that the same pieces of information are found on your LinkedIn profile and your resume.HOW TO WRITE A PERFECT RESUME SUMMARY THAT WILL IMPRESS THE HIRING MANAGERSA summary is the part of a resume that the hiring manager is most likely to read first.This is why you should perfect it before submitting your resume.Here are some of the most important features of a good summary:It is not long, but not too short either. It should have four to five sentences.It highlights the strongest skills and achievements of the candidate. The information is aimed at showing the experience and skills that match the job requirements.It is simple to read and does not have many repeated words.SummaryChemical engineer with 6 years of experience in the field. Has proficient knowledge of the chemical aspect of constructing printed circuit boards and a strong working knowledge of maintaining the health of rivers in relation to waste and toxic waste often poured in. Capable of safety and efficiently organizing industrial processes and retaining compliance with the national environmental standards. Excellent communication skills, calm and perceptive in stressful situations. RightSummaryAn experienced chemical engineer who worked for more than 6 years. WrongIt is an excellent practice to include the achievements and skills that are closely related to your professional field, i.e. chemical engineering. Phrases like ‘chemical aspect’, ‘toxic waste’, ‘industrial processes’ are a great way for you to show your expertise in the field.The information that you put into the summary can (and should) be repeated in the rest of the resume.We advise you to write the rest of the resume first, then to take a good look at it comparing it with the description of the job you are applying for.Then write a summary that connects the two and emphasizes how your skills from the resume connect with what is required of the candidate for the position.WHAT IS THE BEST WAY TO SHOWCASE YOUR PREVIOUS WORK EXPERIENCE? Previous work experience is very important for employers.The essential reason behind this is the presentation of skills and achievements that you have gained in your previous post.If you have worked somewhere unrelated to chemical engineering, you may mentio n this job, but try to connect your responsibilities or knowledge with your desired job.Now, the way you present your past jobs is vital for your future employer. Writing just the basic information â€" time, company, your position, is not enough.The hiring manager cannot make out anything about you besides the sole fact that you worked somewhere.What you actually want to do is add the most important responsibilities, achievements, and skills obtained at that position.It goes without saying that these should be connected with your desired job and show that your previous experience has prepared you for your next job post. The most convenient and visible way is to use bullets for this.The first job on this list should be the last job you had. Following is the one before the last job, and so on. This is called the reverse-chronological order.Take a look at a good and bad way of writing the Work Experience section of your resume. Right WrongA COMPLETE GUIDE ON WRITING THE EDUCATION SECTION OF YOUR RESUME As a chemical engineer, you must have a college degree. Certainly, it is very important to include this degree in your resume. And any other school or certificate that you have, and that relates to the job you are applying for.The tips on writing the education section of your chemical engineer resume are quite similar, if not completely the same as those for writing the experience section.You should use the reverse-chronological order and omit the items that are not very important or connected with the job in question.For example, if you went to the musical school, there is no need to include this as it is totally irrelevant for your desired position as a chemical engineer in a company.Also, if you have many items to list here and you also have had many jobs in the field, feel free to write just the college degree and showcase your skills through the practical work experience.Write the highest education first, as it is the most important.Just as for any previous job experience, it is not enough to just list the schools and times â€" for each of them, you should make a short list of rewards, accomplishments, or even an excellent GPA score.You want to show how active you were in the field of chemistry even when you were studying it.Take a look at the examples of a good and bad Education Section in the following table: Right WrongWHAT SKILLS DO EMPLOYERS SEEK IN A PERFECT CHEMICAL ENGINEER?The purpose of a resume is for you to showcase your experience and skills that make you a good candidate for the position of a chemical engineer in a company of your choice.The part of the resume where you write your skills is, therefore, a very important one.We will present here some of the skills that the hiring managers expect to see in a good resume.However, remember that you should not incorporate all these skills or all the ones you find online, but those that you really have and that you can exemplify if you are called for an interview and show if you get the job.In the continuation, you will see an extensive list of skills and knowledge that are related to the job of a chemical engineer and that you can add to your resume.Do not forget to choose the ones that present you in the best way and do not write the things you cannot justify.SkillsHere you will see a list of skills that are applicable to the role of a chemical engineer.Skills related to science:ScienceMathematicsActive LearningTechnology Design RightSkills related to evaluation and making decisions:Critical ThinkingComplex Problem SolvingJudgment and Decision MakingSystems AnalysisOperations AnalysisSystems EvaluationTroubleshootingOperation MonitoringQuality Control Analysis RightSkills related to communication:SpeakingWritingActive ListeningTime ManagementCoordinationPersuasionSocial PerceptivenessInstructingManagement of Personnel ResourcesNegotiationService OrientationManagement of Financial ResourcesManagement of Material Resources RightKnowledgeLook at the list of things you as a chemical engineer should know in order to be a good candidate for the job of your dreams. Note that you do not need to know all of the below.Some types of knowledge are specific for certain positions, others, such as chemistry, mathematics, or engineering, are general and a candidate is expected to have them.Knowledge in Skill SectionEngineerin g and TechnologyChemistryMathematicsPhysicsProduction and ProcessingDesignComputers and ElectronicsAdministration and ManagementMechanical KnowledgePublic Safety and SecurityEducation and TrainingBiologyCustomer and Personal ServiceLaw and GovernmentEconomics and AccountingSales and Marketing RightStyles of WorkAs various positions that a chemical engineer may occupy, you should be aware of different work-related characteristics you may need in order to be a good employee.Based on the job description and your own preferences, you may choose some of the following for your Skills Section:Styles of Work in Skills SectionAnalytical ThinkingDependabilityAttention to DetailIntegrityPersistenceInitiativeAdaptability/FlexibilityCooperationInnovationLeadershipStress ToleranceSelf ControlIndependenceConcern for OthersSocial Orientation RightCONCLUSIONAfter reading our guide, you can see that it is not so hard to write a good chemical engineer resume.You should just follow the guidelines and you will write a resume that will impress the hiring manager of the company where you want to work.Just have in mind what your greatest achievements and strengths are and make them stand out.To let you focus on that aspect (the most important one) of writing a resume, we have created a resume builder.Use it and you will not have to worry about the form of your resume â€" your task will be to just fill in the blanks.After a good preparation like this, we are sure that you will land the job of your dreams and have a great career!So dive in and chase your dreams! We wish you a wonderful journey! Create your own resume

Teaching Teenagers about Sex in Schools Essay - 1805 Words

Introduction As millions of teens are heading back to school, they are going to be learning the same old stuff, the usual studies include-history, math, science. But many students and parent’s surprise, there will be an extra class included in the curricula: Sex Education. In most public schools, there is some form of teaching of sex education. However, there is an even bigger question that is arising. â€Å"What kind of sex education are our children getting and is it enough to help?† There is a huge national debate going on over whether the whole ordeal over if kids should or should not be taught in school about sex. It shouldn’t matter what side of the fence you are on or your school, what is important is to know how to†¦show more content†¦By the prohibition of the discussion of the certain topic, there have been less students learning about the topics such as pregnancy prevention and STD prevention than students have in the 1990s. At this time, there was around 750,000 adolescents were experiencing an unintended pregnancy, along with every one in four sexually active teens contracted a sexually transmitted disease annually. It goes far as some states trying and having succeeding in censorship or distort information for political purposes, â€Å"people become the instruments or tools of the state policies that deprive them of the knowledge and info necessary to make and implement decisions about the reproductive and to express the sexuality safely. It thus involves the state control over some of the most basic elements of what it means to be human.† (L.R Freeman, Censorship and Manipulation of Reproductive Health Information) Abstinence-only programs’ funding was greatly expanded when a welfare reform was passed in 1996. The Community-based Abstinence Education programs have provided grants directly from the U.S. Department of Health and Human Services to communities and many faith-based programs to help and even a third of f ederal programs was created for the use of abstinence only education in 2000. In many people’s beliefs, these abstinence-only programs are doing much more harm than good. Such programs are violating numerous human rights and ethical principles as these areShow MoreRelatedSex Education And Sexual Education1253 Words   |  6 Pageshave public schools teach sexual education classes, or teach abstinence education classes? Pregnancy rates in America are slowly decreasing, but are still extremely high. According to K. F. Stanger-Hall (2011), Pregnancy rates in America are more than double the rates of other countries with 72.2% per 1000 girls between the ages of 15-19 becoming pregnant. The best way to lower teen pregnancy is to teach about prevention in schools with sex education or abstinence classes. Teenagers need to learnRead MoreSex Education : A Part Of American Culture1566 Words   |  7 PagesFor decades, sex education in US public schools has been a debatable issue for a minority of people (Shindel Parish, 2013). Healthcare workers insist that with a rise in sexually transmitted infections and unwanted pregnancies among teenagers, sex education is desperately needed in school. On the other hand, there are some parents and other citizens who strongly believe that sex education is something that parents should be teaching to their children. These individuals feel that sex education coursesRead MoreSex Education Are Essential For Teens1479 Words   |  6 PagesSex Education is a controversial but extremely important topic. Yet, we are doing very little to address it. Teaching sex education in schools are essential for teens to help build a strong foundation of sexual health. Although sex education must begin at home, some parents feel uncomfortable talking about the topic with their children and they believe teaching their children about sex can end up encouraging them to engage in sexual intercourse. Due to that, parents and schools try to em phasize theRead MoreSex Ed By Anna Quindlen963 Words   |  4 Pagescollege before returning to the Times in 1977. â€Å"Sex Ed† by Anna Quindlen in the Wake Tech Reader is an article that distinguished her as being a feminist. Even though â€Å"Sex Ed† was written long ago, it is as relevant today as then because teens today are not much different from then. In Anna Quindlen’s essay, ‘Sex Ed,† she expresses that parents and teachers need to come together and talk to teenagers about sex. In Quindlen’s essay she talks about when she was sitting in a clinic in the poorest neighborhoodRead MoreShould Sex Education Be Taught? High School?997 Words   |  4 PagesTeenagers and sex are two words that are often heard together, whether we like it or not, teenagers are having sex. Some schools don’t teach sexual education and because of that students are suffering. There’s no way to make teenagers not have sex but there is away to teach them about having safe sex, that is why I believe that we need to require sexual education be taught in high school. According to the National Conference of State Legislatures, â€Å"Only 22 states require public schools to teachRead More Education Is Key: A Comprehensive Approach to Sex Education Essay1579 Words   |  7 PagesSex education is about informing students about sex so that they can make educated decisions when the time comes to have sex. Sex education helps students protect themselves from unintended pregnancies, STDs, and HIV/AIDS. Students should leave a sex education course with the right tools so they make informed decisions about their sexual health and well-being. The goal of sex education is to provide a student with as much information as possible so that they can use the skills they learned inRead MoreThe Adolescent Family Life Program Teaches Teenagers About Abstinence1365 Words   |  6 Pagesprogram teaches teenagers about abstinence. The AFL differs from other primary prevention programs, but also has complications to its solution for teaching teenagers about its a bstinence-only program. This paper is to display the effective approach of the AFL in how it contrasts from other programs, but also, how it can be revised. In the end, the program needs adjustment, from its abstinence-only education, in order for it to effectively teach adolescences the consequences of sex. Primary PreventionRead MoreThe Issue Of Sex Education1429 Words   |  6 Pagesteens are very common. Teenagers in schools across the US are at risk of getting pregnant. They may even have a sexually transmitted disease and not know it. Many teenagers and even some adults do not know a lot about sexual health. That is because schools are not giving out some of the most important information to their students in sex education classes. All public schools should require that sex education teaches more than only about abstinence and STI’s. First, schools need to make sure thatRead MoreUnited States has the Highest Rate of Teenage Pregnancies Essay1687 Words   |  7 Pagespregnancy, about 500,000 births per year from girls under twenty. Second in the statistic is Poland, who only has about 30,000 teenage births in a year. When the topic of sex arises, people become uncomfortable because it is a subject that is thought of as personal and secretive. However, people aren’t only uncomfortable with the subject because of it being taboo, people try to avoid the subject because they aren’t always informed correctly about it and don’t have a way to learn about it, excludingRead MoreThe Rate Of Unwanted Teenage Pregnancies And Sexually Transmitted Diseases1502 Words   |  7 Pagessafety precautions and informing teens about healthy sexual activity. Sexual Education is the act of educating others about intercourse, the anatomy of the human body, sexual reproduction, abstinence, and contraceptives. Elizab eth Boskey, a STD expert, believes that schools should teach sex education because of the positive effects it has on the students. However, Sol Gordon believes that the parents should be responsible for teaching their children about sex. Even though Elizabeth Boskey and Sol

The Effects Of Maternal Postpartum Depression On The...

In the article â€Å"The impact of maternal postpartum depression on the language development of children at 12 months†, the authors, Quevedo, Silva, Godoy, Jansen, Matos, Tavares Pinheiro and Pinheiro, studied the relationship between some factors related to maternal depression during the first year of a child’s life and the child’s language development process (Quevedo et al.,2011). They hypothesized that a child whose mother presented maternal depression would have a lower performance than a child whose mother presented only a brief depression or no maternal depression (Quevedo et al.,2011). The researchers conducted the research on 296 mother-child dyads (Quevedo et al.,2011). This was a longitudinal study where different methods were used to perform this research (Quevedo et al.,2011). First, they used a diagnostic interview postpartum and 12 months after giving birth to evaluate if mothers were depressed. Then, they assessed the children using a language scale of the Bayley Scales of Infant Development III (Bayley 2006; Quevedo et al.,2011). Finally, mothers filled out a questionnaire about their socio-economic status, delivery and the health of the baby (Quevedo et al.,2011). The questionnaire evaluated whether the baby was premature or not and the baby’s caretaker (Quevedo et al.,2011). The results indicate that the duration of postpartum depression affected negatively the language development of the child (Quevedo et al.,2011). Also, it was found that maternal age,Show MoreRelatedMaternal Depression Case Study1431 Words   |  6 PagesWojcicki et al. (2015) also focuses on a sample of low-income Latino mothers and children by examining the genetic impacts on Latino preschool children, who have been exposed to maternal depression. Utilizing genomic DNA samples from 108 four-year-old children and 92 five-year-old children and their mothers, Wojcicki et al. (2015) examines the telomere length within these children. Shorter t elomere length has been linked to health conditions, such as cancer, diabetes, and obesity in adults, so determiningRead MoreEffects of Postpartum Depression on Child Bearing and Rearing Family1357 Words   |  6 PagesEffects of Postpartum Depression on Child Bearing and Rearing Family Postpartum depression (PPD) is a major event occurring in eight to fifteen percent of the woman population after delivering their child (Glavin, Smith, Sà ¸rum Ellefsen, 2010). The symptoms and causes of PPD are similar to depression symptoms in other periods of life (Glavin et al., 2010). These symptoms may include feelings of helplessness and hopelessness, loss of interest in daily activities, sleep changes, anger or irritabilityRead MoreDepression And Anxiety786 Words   |  4 PagesSymptoms of depression and anxiety are common during pregnancy and greatly effect a women’s health behaviors. The impact of women’s mental health on alcohol use is very significant to examine as prenatal alcohol use, which is common and can have serious negative consequences for the evolving fetus. Elevated symptoms of depression and anxiety can increase risk for binge drinking during pregnancy. Alcohol use during pregnancy may be associated with extremely detrimental effects for the d eveloping fetusRead MoreChildhood Illness : A Look At Postpartum Depression1538 Words   |  7 PagesMaternal Mental illness: A look at Postpartum Depression, its new inclusion into DSM-5, and treatment issues Antonella Uribe John Jay College of Criminal Justice INTRODUCTION Sandra was a 26 year old mother of four children who had been married for eight years. She had given birth to her fourth child two months ago, with the help of a midwife. Due to her husband’s recent pay cut, and already difficult financial situation, Sandra did not receive any antenatal or postnatalRead MorePostpartum Depression : A Type Of Depression2258 Words   |  10 PagesAbstract Postpartum depression is a type of depression that women can experience after giving birth. It is similar to depression, but women also experience thoughts of harming the baby, feeling disconnected, or in general worry that they are not being a good mother (Centers for Disease and Control Prevention, 2013). When it comes to seeking help for this, most women can feel ashamed of what they are experiencing and may not seek the proper help they need. The purpose of this paper is to review theRead MoreThe Effects Of Parental Depression On Children1901 Words   |  8 PagesIntroduction According to the National Academy of Sciences, about 15 million children (one in five) in the United States live in households with parents who have major and/or severe forms of depression. Parental depression negatively affects a fathers’ and mothers’ caregiving, ability to physically support and nurture a child, and is associated with poor health and developmental outcomes for children of all ages, including prenatally. Depressed mothers are more likely than non-depressed mothers toRead MorePostnatal Depression Is A Clinical Depression That Lasts1329 Words   |  6 PagesPostnatal depression is a clinical depression that lasts for about a month (Sigelman Rider, 2015) and symptoms of postnatal depression include parents being irritable, lethargic, tired, insensitive and generally distant towards their children (Field, 2010; Liu et al., 2016; Ramchandani, Stein, Evans, O’Connor ALSPAC study team, 2005; Wachs, Black Engle, 2009). Prenatal depression can also b e a sign that the mother will experience postnatal depression (Parsons, Young, Rochat, Kringelbacht Read MorePostpartum Depression : Symptoms And Treatment Essay2158 Words   |  9 PagesPostpartum Depression is depression that occurs after performing childbirth. This condition is often mistaken for the â€Å"baby blues† which has similar symptoms such as tearfulness, extreme sadness, anxiety, self-doubt, and fatigue. However, the â€Å"baby blues† goes away within a few weeks after and unlike the â€Å"baby blues†, postpartum depression can cause suicidal thoughts, difficulty making decisions, and feeling too exhausted to get out of bed for hours. If postpartum depression is not treated properlyRead MoreThe Epidemiology Of Male Postpartum Depression2186 Words   |  9 PagesThe Epidemiology of Male Postpartum Depression Only in recent history have significant strides been made to understand and treat postpartum depression. While the psychiatric disorder was written as long ago as 700 BC, by Hippocrates, it was not officially recognized as a medical diagnosis until the nineteenth century. Even in today’s society, individuals tend to harbor ill feelings toward postpartum depression, likely due to cultural beliefs and miseducation. According to the U.S National libraryRead MoreMaternal Stress And Depression And Stress2020 Words   |  9 Pagessignificances for the fetus. Maternal stress occurs when the mother is exposed to psychosocial stressors during pregnancy (Kramer et al, 2009). The mother could also develop depression during or after her pregnancy. This mental illness affects the mother’s ability to function and cope with everyday life (NIHCM, 2010), thus affecting her relationship with her baby. Recent research evidence has highlighted that there is some overlap between the sympto ms of maternal depression and stress (Cheng Pickler

Legal Aspects of Professional Psychology Free Essays

Professional psychology has many complexities that set it apart from other recognized branches of psychology. The intricacies of professional psychology make it fodder for legal consideration. The patients and clinicians have an obligation to one another to adhere to the guidelines set forth according to the American Psychological Association (heretofore known as APA) that protects both parties’ rights. We will write a custom essay sample on Legal Aspects of Professional Psychology or any similar topic only for you Order Now In this paper, the legal aspects of professional psychology will be discussed in detail. The concepts of informed consent and psychological assessment/testing/diagnostics will be examined. The effects of legislation and competency will also be discussed as it pertains to professional psychology. The principle of informed consent is an integral component of the foundation of legal and ethical practice in professional psychology. According to the Encyclopedia of Human Genome: â€Å" Historically informed consent has its origins in two parallel strands of thought within moral philosophy and within law. Within moral philosophy, the concept of individual autonomy has become increasingly important during the last 250 years. It has been realized that there is normally not sufficient justification to override the considered decisions of competent persons† (2003). Across the world, legal systems have traditional beliefs regarding the prohibition of the manipulation of an individual’s body without their consent. However, in recent years these prohibitions have been expanded to include intangible components of a person such as their personal information. This concept is bolstered by the focus on basic human rights that is founded in legal theory. In an ideal situation people consenting to treatment or research as part of a psychological experience would be capable of making their own logical decisions about participation through the application of informed consent. If someone is found to be taking advantage of a person or group of people without the use of informed consent they may face stiff penalties in accordance with the governing laws of their jurisdiction which may result in the revocation of their professional license and/or imprisonment. For most people, the words informed consent brings to mind a piece of paper that one must sign in order to receive treatment or participate in some sort of study, but in actuality it is much more complicated. Informed consent involves supplying the participant or patient with all relevant information as it pertains to the study being conducted or treatment given. Secondly, the person delivering the information must ensure that the person receiving the information has a full and thorough understanding of what is being explained. This would mean that the person making the decision to participate in research or receive treatment is capable of making such autonomous decisions of consent. It is essential to ensure that the person receiving the information is not being coerced in any fashion to protect their human and legal rights, whether it is the decision to accept treatment or to refuse. It is also important to note that once given, consent may be withdrawn at any time at the request of the participant or patient. When obtaining informed consent it may be necessary to have the interested participant(s) undergo psychological assessment, testing and diagnosis to ascertain their suitability to receive treatment or participate in a study. However, one must be sure to conduct all of these practices fairly and indiscriminately so as not to produce biased or tainted results that violate and/or exploit the interested person(s) basic human rights. Clinicians should be impartial in their approach and avoid hasty generalizations when doing psychological assessments and testing, and especially when diagnosing patients. For example, while it is important to consider one’s demographics and upbringing in the assessment, testing and diagnostic process, a clinician should not let this be the sole basis for drawing conclusions, especially if their personal views and perspectives are at odds with the information presented. If a practitioner is found to be unethical in his or her application of testing/assessment and diagnostic practice they run the risk of facing legal action. Perhaps the most important aspect of professional psychology is that of confidentiality in the therapeutic relationship. Confidentiality means that a clinician may not reveal any nformation given by a patient or discovered by a fellow clinician during the treatment of a patient. Most Ethics Codes state that the information divulged to a clinician during the course of the patient-clinician working relationship is confidential to the highest degree and should not be taken lightly. The purpose of a clinician’s ethical duty to maintain patient confidentiality is to provide the patient with the means to feel free to produce candid disclosures of information to the practitioner with the knowledge that the he or she will uphold the confidential aspect of the information disclosed. Full disclosure enables the practitioner to diagnose conditions and illnesses properly and to treat the patient(s) accordingly. In return for the patient’s honesty and trust, the physician is expected to not reveal confidential communications or information without the patient’s express consent unless required to reveal the information by law. Confidentiality is paramount in the therapeutic relationship because it builds trust between the clinician and the patient, thus providing the client with safe place to explore their issues with discretion. The idea of confidentiality in professional psychology sets the tone for treatment. In the initial stages of treatment the clinician will establish this expectation with the patient so that all others aspects of the therapeutic relationship may evolve more smoothly. It is probable that the patient would not want to proceed with therapy without the promise of confidentiality. Legislative efforts of the federal government to ensure equality on laws mandating parity of mental health with physical health in terms of insurance coverage have been passed in 34 states and have been tremendously successful. However, the outcomes are disparaging due to the fact that our nation has and continues to spend less on mental health and substance abuse after parity than it did before, with the estimated costs plummeting at least $10 billion in recent years. Additional studies have shown that parity legislation has done nothing to reverse the steady decrease in the incomes of practitioners in the mental health field. â€Å"The managed behavioral care companies, fearing the return of runaway costs, put in place more draconian hurdles to accessing behavioral health than exist for physical health. Just as rent control results in housing shortages because landlords abandon their properties and new building is discouraged, parity is an excellent example of how economic â€Å"laws† can defy and circumvent legislation† (Cummings, 2006). Given the dismal state of the mental industry in terms of accessibility to resources and funding it is essential that practitioners exercise competency that may be proven to healthcare providers. In recent years, there has been an increasing focus on competency-based education, training, and credentialing in professional psychology. Competency-based training models are being utilized across the world to ensure that psychology professionals are able to apply the knowledge that they receive through instruction to their everyday practice. Accreditation committees in the United States and Canada shifted towards competency-based approaches towards the end of the 20th century. As a result, the accreditation of professional psychology training and academic curriculums is centered mainly on the program’s capacity to illustrate the method and to what extent foundational competencies are created and nurtured within those seeking to enter the field. Many organizations have acknowledged core, specialized, and foundational competencies as it pertains to professional psychology. Competence is recognized within a separate section in the 2002 modification to the APA â€Å"Ethical Principles of Psychologists and Code of Conduct†. This focus on competency makes professional psychology pliable and those within it capable of efficiency even in the face of changing standards. Professional psychology is a discipline that must remain flexible and able to adapt to the inevitable shifts in society. However, those practicing within its guidelines and doctrines must ensure that they fulfill not only their professional obligation to their clients but also meet the requirements of the laws that govern society. Practitioners must be highly competent and able to meet the criteria of APA standards as it pertains to professional psychology. Staying abreast of the legal rights of patients and practitioners is the responsibility of the professionals in this field to remain relevant and ethical. How to cite Legal Aspects of Professional Psychology, Essay examples

Loan Request Evaluation Essay Example For Students

Loan Request Evaluation Essay This report introduces a procedure that can be used to analyze the quantifiableaspects of commercial credit requests. The procedure incorporates a systematicinterpretation of basic financial data and focuses on issues that typicallyarise when determining creditworthiness. Cash flow information is equallyimportant when evaluating a firms prospects. Reported earnings and EPS can bemanipulated by management debts, are repaid out of cash flow not earnings. Thebasic objective of credit analysis is to assess the risk involved in creditextension to banks customers. Risk refers to the volatility in earnings. Lenders are concerned with net income or the cash flow that hinders a borrowerability to service a loan. Credit analysis assigns some probability to default. Some risks can be measured with historical and projected financial data. The keyissues include the following: 1. For what are the loan proceeds going to beused? 2. How much does the customer need to borrow? 3. What is the primarysource of repayment, and when will the loan be repaid? 4. What collateral isavailable? Fundamental credit issues: Virtually every business has a creditrelationship with a financial institution. But regardless of the type of loan,all credit request mandate a systematic analysis of the borrowers ability torepay. When evaluating a loan a bank can make two types of errors: 1. Extendingcredit to a consumer who ultimately would repay the debt. 2. Denying a loanrequest to a customer who ultimately would repay the debt. In both cases thebank loses a customer and its profit decreases. For this reason, the purpose ofcredit analysis is to identify the meaningful and probable circumstances underwhich the bank might lose. So a credit analyst should analyze the followingit ems: *Character: The foremost issue in assessing credit risk is determining aborrowers commitment and ability to repay debts in accordance with the termsof a loan agreement. An individuals honesty, integrity, and work ethictypically evidence commitment. Whenever there is deception or a lack ofcredibility, a bank should not do business with the borrower. It is oftendifficult to identify dishonest borrowers. The best indicators are theborrowers financial history and personal references. When a borrower hasmissed past debt service payments or has been involved in default or bankruptcya lender should carefully document why to see if the causes were reasonable. Similarly, borrowers with good credit history will have established personaland banking relationship that indicate whether they fully disclose meaningfulinformation and deal with subordinates and suppliers honestly. Lenders look atnegative signals of a borrower condition beyond balance sheet and incomestatement. For example: ? A borrowers name consistently appears on thelist of bank customers who have overdrawn their account. ? A borrowermakes a significant change in the structure of business. ? A borrowerappears to be consistently short of cash. ? A borrowers personalhabits have changed for the worse. A firms goals are incompatible with thoseof stockholders, employees, and customers. *Use of loan proceeds: The range ofbusiness loan needs is unlimited. The first issue facing the credit analyst iswhat the loan proceeds are going to be used for. Loan proceeds should be usedfor legitimate business operations purposes, including seasonal and permanentworking capital needs, the purchase o f depreciable asset, physical plantexpansion, acquisition of other firms. Speculative asset purchases and debtsubstitutions should be avoided. The true need and use determines the loanmaturity, the anticipated source and timing of repayment and the appropriatecollateral. A careful review of a firm financial data typically reveals why acompany deeds financing. *Loan amount: Borrowers request a loan before theyclearly understand how much external financing is actually needed and how muchis available internally. The amount of credit required depends on the use ofproceeds and the availability of internal sources of funds. The lender job is todetermine the correct amount such that a borrower has enough cash to operateeffectively but not too much to spend wastefully. Once a loan is approved theamount of credit actually extended depends on the borrower future performance. If the borrower cash flow is insufficient to meet operating expenses and thedebt service on the loan it will be called upon to lend more and possibly tolengthen the loan maturity. If cash flows are substantial, the initial loanoutstanding might decline rapidly and even be repaid early. The required loanamount is thus a function of the initial cash deficiency and the pattern offuture cash flows. *The primary source and timing of repayment: The primarysource of repayment of loans is the cash flows. The four basic sources of cashflow are the liquidation of assets, cash flow from normal operations, new debtissues, and new equity issues. Credit analysis evaluates the risk that aborrower future cash flow will not be sufficient to meet expenditures foroperations and interest and principal payments on the loan. Specific sources ofcash are typically associated with certain types of loans. Short-term, seasonalworking capital loans are normally repaid from the liquidation of receivables orreduc tion in inventory. Term loans are normally repaid out of cash flows fromoperations. A comparison of projected cash flows with interest and principalpayments on prospective loans indicates how much debt can be serviced and theappropriate maturity. *Collateral: Banks can lower the risk of loss on a loan byrequiring back up support beyond normal cash flow. Collateral is the security abank has in assets owned and pledged by the borrower against a debt in the eventof default. Banks look to collateral as a secondary source of repayment whenprimary cash flows are insufficient to meet debt service requirements. Having anasset that the bank seize and liquidate when a borrower defaults reduce loss,but it does not justify lending proceeds when the credit decision is originallymade. From a lender perspective, collateral must exhibit three features: -First,its value should always exceed the outstanding principle on a loan. -Second, alender should be able to easily take possession of collateral a nd have a readymarket for sale. Highly illiquid assets are worth far less because they are notportable and often are of real value only to the original borrower. -Third, alender must be able to clearly mark collateral as its own. When physicalcollateral is not readily available, banks often ask for personal guarantees. Onthe other hand, liquidating collateral is a second-best source of repayment forthree reasons: 1- there are significant transaction costs associated withforeclosure. 2- bankruptcy laws allow borrowers to retain possession of thecollateral long after they have defaulted. 3- when the bank takes possession ofthe collateral, it deprives the borrower of the opportunity to salvage thecompany. At last, a loan should not be approved on the basis of collateralalone. Unless the loan is secured by collateral held by the bank, such as bankCDs, there is risk involved in collection. A PROCEDURE FOR FINANCIAL ANALYSISThe purpose of credit analysis is to identify and define the lend ers risk inmaking a loan. There is four stages process for evaluating the financial aspectsof commercial loans: 1. Overview of management and operations. 2. Financialratio analysis. 3. Cash flow analysis. 4. Financial projections. During allphases the analysts should examine facts that are relevant to the creditdecision and recognize information that is important but unavailable. 1. Euclid Essay? Credit cards and other revolving credit: Credit cards are utilized topurchase goods and services on credit in contrast to debit cards, which are usedto withdraw cash from ATM (Automated Teller Machine). Revolving credit: anarrangement by which the borrower and repay as needed during a specific timeperiod, subject to maximum borrowing level. Credit cards and overlines tied tochecking accounts are the two most popular forms of revolving creditarrangements. Banks offer a variety of credit cards. While some banks issuecards with there own logo and supported by their own marketing effort, mostoperate as franchises of Master Card or Visa. All cards display the Master Cardand Visa logos along with the issuing bank name. The primary advantage ofmembership is that an individual bank card is accepted nationally andinternationally at most retail stores without the bank negotiating a separateagreement with every retailer. Some alternatives to the credit cards exist:-Debit cards: they are widely available but not attractive to customers. As thename suggests when an individual uses this card his or her balance at a bank isimmediately debited funds are transferred from the card user account to theaccount of the retailer. But there is a disadvantage in using it, the loss offloat, which explains why debit cards are not popular. -Smart cards: is anextension of the debit card and contains a computer memory chip that stores andmanipulates information. These cards can handle all purchasing that consumerprefers. -Prepaid cards: are a hybrid debit card in which consumers repay forservices to be rendered and receive a card again which purchases are charged. The advantage of this card is that the processing costs are low and there islittle risk. Credit cards are attractive because they provide higherrisk-adjusted returns than do other types of loans. Card issuers earn incomefrom three sources: -charging card holders annual fees, charging interest onoutstanding loan balances, and discounting the charges that merchants accept onpurchases. Consequently as banks have increased their competitive focus theyhave begun to lower loan rates and annual fees such that many customers canavoid fees entirely and pay interest at rates slightly above NY quoted prime. Credit card lending involves issuing plastic cards to qualifying customers. Thecards have pre-authorized credit limits that restrict the maximum of debtoutstanding at any time. Many cards can be used in electronic banking devices,such as automatic teller machines, to make deposits or withdrawals from existingtransaction accounts at a bank. Credit cards are becoming extremely attractive. Many banks view credit cards as a vehicle to generate a nationwide customerbase. They offer extraordinary incentives to induce consumers to accept cards inthe hope that they can cross-sell mortgages, insurance products, and eventuallysecurities. Credit cards are profitable because many customers are priceinsensitive. However, credit card losses are among the highest of all loantypes. The returns to credit card lending depend on the specific roles that abank plays. A bank is called a card bank if it administers its own credit cardplan or serves as the primary regional agent of major credit card operations. Anon-card bank operates under the auspices of a regional card bank and does notissue its own card. Non-card banks do not generate significant revenues fromcredit cards. The credit card transaction process: Once a customer uses a card,the retail outlet submits the sales receipt to its local merchant bank forcredit. A retailer may physically deposit the slip electronically transfer th einformation via a card-reading terminal at the time of sale. The merchant bankdiscounts the sales receipt by 2 to 5 percent as its fee. Thus a retailer willreceive only 97$ credit for each 100$ sales receipt if the discount is 3percent. If the merchant bank did not issue the card, it sends the receipt tothe card-issuing bank then bills the customer for the purchase. Most cardrevenues come from issuing the card that a customer uses. The bank earnsinterest at rates ranging from 6 to 22 percent and normally charges eachindividual an annual fee for use of the card. Interest rates are sticky. Thus,when money market rates decline and lower a banks cost of funds, the netreturn on credit card revenues. The remaining 20 percent is merchant discount. ? Overdraft protection and open credit lines: Revolving credit also takesthe form of overdraft protection against checking accounts. The customer mustpay interest on the loan from the date of the drafts receipt and can repaythe loan either by making direct deposits or by periodic payments. These loansare functional equivalent of loan commitments to commercial customers. Themaximum credit available typically exceeds that for overdraft lines, and theinterest rate floats with the banks base rate. ? Home equity loans andcredit cards: Home equity loans meet the tax deductibility requirements becausethey are secured by equity in an individuals home. Many of these loans arestructured as open credit lines where a consumer can borrow up to 75 percent ofthe market value of the property less the principle outstanding on the firstmortgage. Individuals borrow simply by writing checks, pay interest only on theamount borrowed and can repay the principal at a rate of the outstandingbalance. In most cases, the loans carry adjustable rates tied to the banks baserate. These credit arrangements combine the risk of a second mortgage with thetemptation of credit card, a dangerous combination. Home equity loans place asecond lien on a borrowers home. If the individual defaults, the creditor canforeclose so that the borrower loses his or her home. ? Non-installmentloans: A limited number of consumer loans require a single principal andinterest payment. The individual borrowing needs are temporary. Credit isextended in anticipation of repayment from a well-defined future cash inflow. The quality of the loan depends on the certainty of the timing and the amountanticipated net cash inflow from the sale. Consumer loans: Consumer loans areextended for a variety of reasons for example, the purchase of an automobile,mobile homes, home improvements, furniture and appliances, and home equityloans. Before approving any loan, a lending officer request informationregarding the borrowers employment status, periodic income, the value ofassets owned, outstanding debt, personal references and specific terms thatgenerates the loan request. The lending officer collects information regardingthe borrowers five Cs then he interprets the information in light of thebank lending guidelines and accepts or rejects the loan. In addition, banksemploy judgmental procedures and quantitative credit scoring procedures whenevaluating consumers loans. Recent risk and return characteristics ofconsumer loans: Historically, banks viewed themselves as being either wholesaleor retail institutions, fo cusing on commercial and individual customersrespectively. Recent developments, however, have blurred the distinction, astraditional wholesale banks have aggressively entered the consumer market. Theattraction is twofold. First, competition for commercial customers narrowedcommercial loan yields so that return fell relative to potential risks. Soconsumer loans provide some of the highest met yields for banks. Second,developing loan and deposit relationships with individuals presumably representsa strategic response to deregulation.

India vs China free essay sample

To compete in the global market, the Government of India (GoI) has liberalized export policies licensing of technology and implemented tax reforms providing various incentives. Special Economic Zone (SEZ) policy is also one of the steps India has taken to boost economic growth through outward looking approach. 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. When SEZ policy was introduced in the country, it made headlines and people started considering it as a policy to create a hassle free and investment friendly environment. The main objective of this research paper is to analyze SEZ policy in terms of export performance, FDI inflow, employment generation and overall physical and financial infrastructure building. This research paper tries to investigate whether having these policies are good for the country or not. SEZs are a larger variant of Export Processing Zone (EPZ), thus performance of EPZ has also been discussed briefly. We will write a custom essay sample on India vs China or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page It has been five years now since all then existing EPZs have been converted into SEZs. Section –II has been devoted to performance analysis of these zones. After the failure of EPZs, a significant change has been made in the rules/regulations and a new package of fiscal and non- fiscal incentives is also being offered to developers and units. According to Finance Msinistry, the government has to forego about Rs. 90,000 crore in direct and indirect taxes over the next four years on account of SEZs. Despite so many incentives, performance of these privileged enclaves over the last five years indicates the failure of this scheme. For instance, 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. Some economic experts are also seeing it as a corporate welfare scheme and the possibility of a sharp decline in investments in SEZs can’t be ruled out as tax benefits are only for 10 years. Other issues of concern like the heavy economic cost, real estate scam and labour policies are also discussed in the last section of the paper. Data are mostly secondary but the opinion of different economists and the Development Commissioners (SEZ) has also been taken into account. 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. 3 Major Findings †¢ The union Govt has foregone a whopping Rs 39,704 crore of duty under export promotion schemes during 2003-2004 accounting for 82% of customs duty collected in that year. †¢ The foreign exchange earned by all the 811 units in the 8 zones put together came to only Rs. 8,309 crores, a mere 5% of India’s exports during the fiscal year 2004-05. †¢ During 1966-1980 average annual export growth rates of EPZs was over 77%, whereas during the post 2000 period (2001-03) it came down to 7%. †¢ Total share of FDI investment in Noida SEZ in 1997 was 12. 3% and it went up by a mere 0. 4% in the six years. To tal FDI share in 2003 was 12. 7%. †¢ A slew of tax exemption planned for SEZ to boost exports will erode Rs. 93,900 ($ 20. 62 billion) in government revenue over the next four years. †¢ Haryana Govt has offered over 1700 acres of land near Gurgaon to RIL (Reliance) for about Rs. 60 crore while it is estimated that the land was worth 5000 crore and HSIDC had acquired this land by paying 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 foreign territory within a country with special rules for facilitating FDI for export-oriented production, and for purposes of trade and customs duties. These Zones (SEZs) are geographical region that have economic laws different from a countrys typical economic laws. Different economic institution and government departments have defined it in different ways. As per Ministry of Commerce and Industry 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 have been established in several countries, including the Peoples Republic of China, India, Jordan, Poland, 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 opened up its economy to foreign investment with the establishment of Shenzhen SEZ. Situated close to the Hong Kong port, this small fishing hamlet has today acquired the distinction of being the manufacturing hub of the world with a GDP of $20 billion and an annual foreign trade of nearly $50 billion. Inspired by the success of Chinese SEZs our policy makers also tried to experiment with SEZs in India. Despite the failure of Export Processing Zones (EPZs) Murasoli Maran after visiting China in the year 2000 introduced the SEZ policy very same year considering the need 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 but the rush of proposals for setting up SEZs had begun much earlier and by November 2005 some 61 SEZs were already approved. According to reports, so far, the Government has cleared around 150 SEZ proposals out of around 200 received. The policy provides for setting up of SEZs in the public, private, joint sector or by State Governments. It was also envisaged that some of the existing EPZs would be converted 6 into SEZ. Accordingly, the Government has converted all eight EPZs into SEZs. Table 1. 1. 1 below shows all the EPZs which has been coveted to SEZs with their size Table 1. 1. 1 List of all the EPZs converted into SEZs with their size Location Kandla (Gujarat) SEEPZ (Mumbai) Cochin (Kerala) Surat (Gujarat) NOIDA (UP) Chennai (TN) Vizag (AP) Falta (WB) Size (Sq. KM) 2. 99 0. 38 0. 40 NA 1. 22 1. 04 1. 43 1. 12 Source: Export Promotion Council. Ministry of Commerce, Government of India 1. Evolution of EPZs/SEZs in India The economic policy of 1960’s which were geared towards selective import liberalization and export promotion, marked the development of EPZ’s 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 development of the Kutch reg ion, to ensure greater utilization of Kandla port and to create employment opportunities in the Kandla. The second EPZ in the country, the Santa Cruz Electronics Export Processing Zone (SEEPZ), was set up at Mumbai in 1974. This EPZ was developed specifically for processing electronics goods and was expected to generate employment opportunities and facilitate the technology transfer. SEEPZ was initially planed as single product zone for processing electronics goods but by 1986 it was made a two product zone providing for gems and jewellery complex as well. 7 Four more zones were set up in the mid-eighties at Noida (NEPZ), Chennai (MEPZ), Cochin (CEPZ, Kerala), and Falta (FEPZ, West Bengal) and the seventh EPZ in the country was commissioned at Vishakhapatnam (VEPZ, Andhra Pradesh) in 1994. Initially the Central Government was solely responsible for establishing EPZ, but this policy was amended in 1994 to enable state governments, autonomous agencies and the private sectors to participate in the development agencies and operation of EPZs. Following the implementation of this policy, one EPZ was developed by private sector in Surat. A joint sector EPZ (now SEZ) has been approved for Greater Noida (UP). In terms of export performance, employment generation and FDI inflow EPZs failed in India but considering the need of better export performance and infrastructure building, central government came up with SEZ policy in 2000. Section II of this research paper has been devoted to analysis of the failure of EPZs in India. Without understanding the key difference between these two 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. Both have a delineated area and permit duty free import of capital goods and raw materials; both aim to attract foreign investment for setting up export-oriented units by providing developed infrastructure, conducive operating environment and a package of fiscal incentives. However, the objective of SEZs is much 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 telecommunications hospitals, hotels, educational institutions, leisure and entertainment units, residential/industrial/commercial complexes, water supply sanitation and sewerage system and any other facility required for development of the zone. The scope of activities that can be undertaken in the SEZs is much wider and their linkages with the domestic economy are stronger. Resultantly they have a diversified 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 quite similar to the objectives envisaged by central government through EPZ policy in early eighties but there is significant difference between these two policies in terms of tax benefits and rules and regulations. The table 1. 3. 1 below summarizes the difference between these two: Table 1. 3. 1 Comparison between SEZ and EPZ India’s SEZ Restriction sectors on Open manufacturing, services trading activities India’s EPZ to Open manufacturing and trading considered SEZ vs. EPZ to While SEZs are and generally open to activities. all activities, EPZs more manufacturing and trading on Services may also be appear to focus Tax exemption Companies in Companies in EPZs SEZs offer more tax than SEZs enjoy a 5 were exempted from attractive year corporate tax corporate tax for a benefits holiday, by more years followed block 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 earnings of Retain earnings Exchange phased out by in control foreign 2009 100% Retain 70% foreign Companies in Exchange Earner Foreign Earner better Currency 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) No minimum EP Minimum required. Positive NFEP Net NFEP (varies industries required (varies and EP and Companies in SEZ more across leeway in meeting export performance requirements. required. enjoy across industries and states) Earning as % of states) requirements Duty recovery in Duty recovery is Full duty recovery i s Lesser penalty for case of failure to in proportion to imposed achieve positive shortfall NFEP DTA* sales Unlimited sales on full duty Duty imported material free Allowed. raw duty qualify for DTA sales but SEZs achieve NFEP DTA Only 50% of exports SEZs enjoy greater access to domestic market These Allowed, duty More flexibility in and for in 1 inventory planning companies SEZs. Certifications of Imports on self- Imports imports certification basis attestation Development Commissioner require Simplified of customs procedures facilitate movement of 10 free free materials are to production utilized over failing to positive materials are to be years be utilized over 5 year. mports into SEZs Customs inspection No routine 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 examination import/export cargo by Cusoms FDI process approval 100% investment through automatic approval is required into route available 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 objective of the SEZ scheme according to the finance and commerce ministries is to create delineated, duty –free zones with world class infrastructure, internationally competitive production environment and fast track clearance system for attracting private investments, especially foreign direct investment (FDI) for setting up export oriented unit. The broad objectives of the SEZ policy are: Attract Foreign Direct Investment (FDI) Earn foreign exchange and contribute to exchange rate stability Boost the export sector, particularly on traditional exports Create jobs and raise standard of living Transfer new skills and expertise to local human resources Create backward forward linkages to increase the output 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 areas and attracting industries Provide a stimulus to the economy Test key policy reforms in these ‘pilot areas’ According to the Commerce Ministry, investment of the order of Rs. 00,000 crore over the next 3 years with an employment potential of over 5 lakh is expected from the new SEZs apart from indirect employment during the construction period of the SEZs. Heavy investments are expected in sectors like IT, pharma, bio-technology, textiles, petrochemicals, auto-components etc. With the Act and Rules in place, it is expected that many large format, multi-product SEZs that have so far been unable to achieve financial closure will now quickly move towards such closure. It is anticipated that this will 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 other incentives are being offered to woo investors and SEZ developers. Incentives like tax benefits, single window clearance, flexibility in export and import rules and regulations has made SEZs an important and most sought after destination for setting up the business empire. Unlike 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 works 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 Approval (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 identifyi ng the area can make a proposal directly to the board. The central government has prescribed the minimum area requirement for setting up SEZs. Table 1. 5. 1 shows the minimum requirement of area for various sectors. Table 1. 5. 1 Minimum area requirement for various sectors Sector Multi Product Green field Service sector Bio-Technology InformationTechnology Gems Jewellery All other sectors 10 100 Minimum area required (in hectare) 1000 1000 100 10 10 Source: SEZ authority, Ministry of Commerce 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, Nagaland, Arunachal Pradesh, Mizoram, Manipur, Tripura Himachal Pradesh, Uttaranchal, Sikkim, Jammu Kashmir, Goa) and Union Territories, keeping in view the difficulty in finding large tracts of contiguous land 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 75% can be used for building infrastructures like roads, hotels, power generation station, educational institution and other facilities. 1. 6 Setting 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 Committee and the Approv al 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 given 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 being a deemed foreign territory is that individual units within the SEZ are allowed operational freedom in routine activities 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 Central 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 don’t require license for importing capital goods and raw material. According to SEZ Act 2005, the firms are eligible for getting an extended Income Tax holiday for 15 years. Income tax exemption for 15 years is available 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 years c) Amount not exceeding 50% which is credited to a reserve account Special Economic Zone Re-investment Reserve Account and utilized for business for the next 5 years. The only condition imposed on the firms is that they must have positive net foreign earning (NFE). The important fiscal and non-fiscal incentives given 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 hazardous chemicals, distillation and brewing of alcoholic drinks and cigarettes, cigars and manufactured tobacco substitutes. †¢ †¢ †¢ †¢ †¢ †¢ External commercial borrowings by SEZ units upto US$500 million in a year without any maturity restrictions 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-shore banking units in SEZs. Exemption 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 list of all the fiscal and non-fiscal incentives being offered to SEZ developers and units has been given 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 given 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 entry tax Octroi tax CESS Luxury tax Entertainment tax Stamp duty and registration chages on land transfers Stamp duty and registration charges on loan agreements/credit deeds 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 rental 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 Falta On 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 ahead 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 successful SEZ? Is it the one that contributes to the host economy, one that generates profi t 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 introduction of the SEZ policy in India. Some economists believe that it’s too early to comment 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 tool to attract FDI and boost the export sector, which will 8 further 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 Share in Total Exports: Aggregate 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 despite getting special treatment, performance 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. It’s 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. Figure: 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 country’s total Export SEZs contribution in countrys total export Contribution in percentage 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 Sou rce: CII report, 2005 Study shows that initially EPZs also witnessed high 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 dynamism 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 counter 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 export Source: sezindia. nic. in, Ministry of Commerce Industry. Government of India 2. 2 FDI inflow and Employment India had a very slow expansion in the initial phases of EPZ policy. Expansion in the zones started picking up in the 1980s in terms of employment but total investment remained abysmally low till 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 continue to be dominated by domestic investment. This was despite its edge in terms of labour 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 incentives 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 becoming the most sought after destinations for foreign investors, however the chances of decline in FDI in SEZs can’t 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 players are rushing in but it would be interesting to see if Govt doesnâ €™t extend the benefits again once the period gets over , will they be still interested in investing and building infrastructure. Employment 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 doesn’t 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 wise 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 82. 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 attitude of the officials, centralized governance, stringent labour 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 example of decentralized governance, is it capable to strengthen our physical and financial 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 Section – III A comparative 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 1980’s. It is different from Indian practice: SEZ in China is classified in two levels by their scales. SEZ is the whole city even whole province opened to special financial, investment and trade policy, while Economic and Technologi cal Development Zones (ETDZ) is a relatively 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 Nan Province and Pu Dong area in Shanghai as the second group. To further open to the outside world 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 National 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 labour 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 worlds’s first export processing zones at Kandla in 1965, EPZs have never had much impact on India’s 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 world’s preferred foreign investment destination. Closer examination of the FDI statistics suggests that India’s performance has been abysmal in comparison 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 regulatory 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 will 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 china’s success factors was large size of SEZs. For instance, entire Hai Nan Island has been declared 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 234 Source: Kumar, 2003 There is no doubt that SEZs have an edge over rest of the economy in terms of investment friendly environment and it’s 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 focus 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 oriented manufacturers will have the access to business friendly environment. One counter 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 talks about extending the same hassle free system to rest of the country. It means 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 clock starts, there is no tax. For years three and four, there is 1/2 of the normal tax rate. In the fifth year, the company pays the full normal tax rate In terms of tax benefits we are ahead of china. In SEZ policy tax benefits has been increased in comparison to EPZ but the failure of EPZs indicates that tax benefits can’t 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 million 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 avai lable 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 their 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 fire 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 workforce, the hire and fire policy was substituted by the contract system. There is ample justification for adopting in India a flexible labour policy in India, not just for these exporting enclaves but also for rest of the country. Rigid 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 permission from the state government to retrench its workforce. The country budget of March 2002 promised a change in the legislation to raise the level to 300 but 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 India’s employment is informal, in small, tax-evading, inefficient 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 published 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 the Development Commissioner o f 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 nature. By contrast, the World Bank survey (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 contributor 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 talks about single window clearance but anybody who goes through the SEZ act can figure out how complex and centralized this policy is. 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 Current scenario in China 30 Over 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 disparity. 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 forget that these areas were developed by tax money 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 few 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 emphasis on balanced development and tax benefits accorded to foreign investments in the SEZs has been partially lifted. India’s tax and tariff structures are still anti export. India’s 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 India’s 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 India’s 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. Out 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 publ ic 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. 32 SECTION- IV CASE STUDY: NOIDA SPECIAL 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. NSEZ’s proximity to Delhi sets it apart from other SEZs. Being close to national capital it has an easy 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 NSEZ 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 2003-04 Exprort (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/Rubber/Synthetic Miscellaneous Total Source: NSEZ Authority 4. 2 The reasons for NSEZ’s success: A) Proximity to Delhi: One of the prime reasons of NSEZ’s 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 away 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 destina tion 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 37 Without 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 some 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 easy 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 market, 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 priority 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 blind 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 promotion 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 Corporate 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 name of SEZ while it was estimated that land was worth 5,000 crore. This is a perfect example of corporate welfare. It’s true 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 can’t 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 can’t 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 inward migration. One of the prime objectives 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 few new manufacturing units have been set up in the SEZs. 5. 4 Real 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 concentration of SEZs are near by cities. According to SEZ Act at least 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 etc. 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 focus 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 china’s SEZ were available only to foreign investments, 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 can’t 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 May 2006 2. Ministry of Commerce. 2005. Annual 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 Export Performance. 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 block 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 rec eipts 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.