Monday, May 17, 2010

Zone based growth

My current research is on zone based growth in developing countries. This policy is extremely popular among politicians and bureaucrats, especially in India. The rhetoric uses examples from China to Taiwan to South Korea to show successful these policies can be. I am not so sure it can be as huge a success in India as the government departments want us to believe. Just as an extension, I looked at some studies on enterprise zone policies in the US. The results are mixed at best. I think, the enterprise zone policy can be compared to earlier zones in India. Both policies were meant to improve the conditions of regions with low growth and high unemployment. Some official reports on enterprise zones also state that their employment creation potential has been low. It just leads me to believe that it is not an easy task to firstly identify which regions have the potential to succeed and which do not, and secondly what kinds of businesses will flourish in these areas. More importantly, these policies cannot simply be transferred from one region to another. It would be good for the Central and State level politicians and bureaucrats in India to realise this quickly and just let growth happen zone or otherwise. 

1 comment:

Juris Naturalist said...

Will you try to join Romer and work on charter cities?