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Industrialisation-led displacement and long-term welfare: evidence from West Bengal

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  • Saumik Paul
  • Vengadeshvaran Sarma

Abstract

This study identifies whether people evicted for industrialisation purposes are worse-off in the long-run. The study focuses on the establishment of the Falta special economic zone in 1984 in West Bengal, India. Using household survey data, the results indicate that the displaced are not worse-off three decades after their displacement and resettlement. There is, however, some evidence that the displaced did not receive adequate land compensation or property rights on their new land and dwellings. There is also evidence that cash compensation policies were skewed, to the disadvantage of large landowners. We also identify three factors which possibly led to resilience among the displaced households: the creation of employment opportunities at the industrial park, gradual erosion of the gender gap in education and labour market participation, and large(r) household size. Overall, we do not find that the adverse effects of displacement and inadequate compensation persist in the long run.

Suggested Citation

  • Saumik Paul & Vengadeshvaran Sarma, 2017. "Industrialisation-led displacement and long-term welfare: evidence from West Bengal," Oxford Development Studies, Taylor & Francis Journals, vol. 45(3), pages 240-259, July.
    • Handle: RePEc:taf:oxdevs:v:45:y:2017:i:3:p:240-259
    DOI: 10.1080/13600818.2016.1159670
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    1. Bardhan, Pranab, 2006. "Globalization and rural poverty," World Development, Elsevier, vol. 34(8), pages 1393-1404, August.
    2. Ghatak, Maitreesh & Mookherjee, Dilip, 2014. "Land acquisition for industrialization and compensation of displaced farmers," Journal of Development Economics, Elsevier, vol. 110(C), pages 303-312.
    3. Saumik Paul & Vengadeshvaran Sarma, 2013. "The Livelihood Effects of Industrialization on Displaced Households: Evidence from Falta Special Economic Zone," Discussion Papers 13/09, University of Nottingham, CREDIT.
    4. Chigurupati Ramachandraiah & Ramasamy Srinivasan, 2011. "Special Economic Zones as New Forms of Corporate Land Grab: Experiences from India," Development, Palgrave Macmillan;Society for International Deveopment, vol. 54(1), pages 59-63, March.
    5. Paul, Saumik & Sarma, Vengadeshvaran, 2013. "The livelihood effects of industrialization on displaced households: Evidence from falta special economic zone, West Bengal," ZEW Discussion Papers 13-083, ZEW - Leibniz Centre for European Economic Research.
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