IDEAS home Printed from https://ideas.repec.org/p/ums/papers/2019-16.html
   My bibliography  Save this paper

Accumulation by Dispossession and Electoral Democracies : An Analysis of Land Acquisition for Special Economic Zones in India

Author

Listed:
  • Kartik Misra

    (Department of Economics, University of Massachusetts Amherst)

Abstract

Forcible acquisition of agricultural land to facilitate accumulation by dispossession attempts like setting up of Special Economic Zones (SEZ) is fiercely resisted by farmers in India. These agitations may determine the political viability of governments. The ability if the state to enact and implement policies favoring accumulation by dispossession is determined by the political conflict between, on the one side, the elite and the state, and, on the other side, dispossessed farmers and landless agricultural workers. The outcome of this conflict is determined by the distribution of power in society and the success of different groups in mobilizing and enforcing their class interests. Using a simple model of the political conflict over land acquisition and new data-set on SEZs that failed to acquire land from farmers, this paper shows that factors like inequality in land ownership (class) and hierarchies of caste and gender hinder the ability of small and marginal farmers from protecting their class interests even though they have de jure political rights and majority in the voting process. Further, excessive political competition along caste and ethnic lines weakens the political power of farmers and reduces the probability of success of farmer movements. Finally, the promise of formal employment and higher wages does not convince marginalized communities or educated farmers to support SEZs.

Suggested Citation

  • Kartik Misra, 2019. "Accumulation by Dispossession and Electoral Democracies : An Analysis of Land Acquisition for Special Economic Zones in India," UMASS Amherst Economics Working Papers 2019-16, University of Massachusetts Amherst, Department of Economics.
  • Handle: RePEc:ums:papers:2019-16
    as

    Download full text from publisher

    File URL: https://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1276&context=econ_workingpaper
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. A. Aggarwal, 2002. "Liberalisation, Multinational Enterprises and Export Performance: Evidence from Indian Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 119-137.
    2. Bowles, Samuel & Gintis, Herbert, 1988. "Contested Exchange: Political Economy and Modern Economic Theory," American Economic Review, American Economic Association, vol. 78(2), pages 145-150, May.
    3. Acharya, Avidit & Roemer, John E. & Somanathan, Rohini, 2015. "Caste, corruption and political competition in India," Research in Economics, Elsevier, vol. 69(3), pages 336-352.
    4. Deepak Nayyar, 2010. "China, India, Brazil and South Africa in the World Economy: Engines of Growth?," Working Papers id:3039, eSocialSciences.
    5. Simon Alder & Lin Shao & Fabrizio Zilibotti, 2016. "Economic reforms and industrial policy in a panel of Chinese cities," Journal of Economic Growth, Springer, vol. 21(4), pages 305-349, December.
    6. Wendy Wolford & Saturnino M. Borras Jr. & Ruth Hall & Ian Scoones & Ben White & Michael Levien, 2013. "Regimes of Dispossession: From Steel Towns to Special Economic Zones," Development and Change, International Institute of Social Studies, vol. 44(2), pages 381-407, March.
    7. Michels, Robert, 1915. "Political Parties: A Sociological Study of the Oligarchical Tendencies of Modern Democracy," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number michels1915.
    8. Banerjee, Abhijit V. & Pande, Rohini, 2007. "Parochial Politics: Ethnic Preferences and Politician Corruption," Working Paper Series rwp07-031, Harvard University, John F. Kennedy School of Government.
    9. Aradhna Aggarwal, 2007. "Impact of Special Economic Zones on Employment, Poverty and Human Development," Working Papers id:1111, eSocialSciences.
    10. Daron Acemoglu & James A. Robinson, 2008. "Persistence of Power, Elites, and Institutions," American Economic Review, American Economic Association, vol. 98(1), pages 267-293, March.
    11. Banerjee, Abhijit & Iyer, Lakshmi & Somanathan, Rohini, 2008. "Public Action for Public Goods," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 49, pages 3117-3154, Elsevier.
    12. Banerjee, Abhijit & Somanathan, Rohini, 2007. "The political economy of public goods: Some evidence from India," Journal of Development Economics, Elsevier, vol. 82(2), pages 287-314, March.
    13. Elinor Ostrom, 2000. "Collective Action and the Evolution of Social Norms," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 137-158, Summer.
    14. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(4), pages 1243-1284.
    15. Heather Plumridge Bedi & Louise Tillin, 2015. "Inter-state Competition, Land Conflicts and Resistance in India," Oxford Development Studies, Taylor & Francis Journals, vol. 43(2), pages 194-211, June.
    16. Amit Basole & Deepankar Basu, 2010. "Relations of Production and Modes of Surplus Extraction in India," UMASS Amherst Economics Working Papers 2011-01, University of Massachusetts Amherst, Department of Economics.
    17. Ira N. Gang & Kunal Sen & Myeong‐Su Yun, 2008. "Poverty In Rural India: Caste And Tribe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(1), pages 50-70, March.
    18. Aradhna Aggarwal, 2007. "Impact of Special Economic Zones on Employment, Poverty and Human Development," Indian Council for Research on International Economic Relations, New Delhi Working Papers 194, Indian Council for Research on International Economic Relations, New Delhi, India.
    19. George J. Stigler, 1974. "The Optimum Enforcement of Laws," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 55-67, National Bureau of Economic Research, Inc.
    20. Abhijit V. Banerjee & Esther Duflo, 2014. "Under the Thumb of History? Political Institutions and the Scope for Action," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 951-971, August.
    21. Levien, Michael, 2015. "Social Capital as Obstacle to Development: Brokering Land, Norms, and Trust in Rural India," World Development, Elsevier, vol. 74(C), pages 77-92.
    22. Yeseul Hyun & Shree Ravi, 2018. "Place-based Development: Evidence from Special Economic Zones in India," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-306, Boston University - Department of Economics.
    23. Acemoglu, Daron, 2003. "Why not a political Coase theorem? Social conflict, commitment, and politics," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 620-652, December.
    24. Urvashi Dhawan & Bagala Biswal, 1999. "Re-examining export-led growth hypothesis: a multivariate cointegration analysis for India," Applied Economics, Taylor & Francis Journals, vol. 31(4), pages 525-530.
    25. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    26. Aggarwal, Aradhna, 2012. "Social and Economic Impact of SEZs in India," OUP Catalogue, Oxford University Press, number 9780198077275, Decembrie.
    27. Misra, Kartik, 2019. "Does historical land inequality attenuate the positive impact of India’s employment guarantee program?," World Development, Elsevier, vol. 124(C), pages 1-1.
    28. Dayton-Johnson, Jeff, 2000. "Determinants of collective action on the local commons: a model with evidence from Mexico," Journal of Development Economics, Elsevier, vol. 62(1), pages 181-208, June.
    29. Harvey, David, 2005. "The New Imperialism," OUP Catalogue, Oxford University Press, number 9780199278084, Decembrie.
    30. Li, Yanan, 2017. "Land Inequality and the Provision of Public Works - Evidence from National Rural Employment Guarantee Scheme," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258534, Agricultural and Applied Economics Association.
    31. Siwan Anderson, 2011. "Caste as an Impediment to Trade," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 239-263, January.
    32. Bisung, Elijah & Elliott, Susan J. & Schuster-Wallace, Corinne J. & Karanja, Diana M. & Bernard, Abudho, 2014. "Social capital, collective action and access to water in rural Kenya," Social Science & Medicine, Elsevier, vol. 119(C), pages 147-154.
    33. Roemer, John E., 1998. "Why the poor do not expropriate the rich: an old argument in new garb," Journal of Public Economics, Elsevier, vol. 70(3), pages 399-424, December.
    34. Ramesh Chandra, 2003. "Reinvestigating export-led growth in India using a multivariate cointegration framework," Journal of Developing Areas, Tennessee State University, College of Business, vol. 37(1), pages 73-86, September.
    35. Dreze, Jean & Sen, Amartya, 1999. "India: Economic Development and Social Opportunity," OUP Catalogue, Oxford University Press, number 9780198295280, Decembrie.
    36. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-927, October.
    37. Ashwini Deshpande, 2001. "Caste at Birth? Redefining Disparity in India," Review of Development Economics, Wiley Blackwell, vol. 5(1), pages 130-144, February.
    38. Shah, Deepak K., 2009. "Special Economic Zones in India: A Review of Investment, Trade, Employment Generation and Impact Assessment," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(3), pages 1-11.
    39. Khwaja, Asim Ijaz, 2009. "Can good projects succeed in bad communities?," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 899-916, August.
    40. Alkon, Meir, 2018. "Do special economic zones induce developmental spillovers? Evidence from India’s states," World Development, Elsevier, vol. 107(C), pages 396-409.
    41. Daron Acemoglu & James A. Robinson, 2006. "De Facto Political Power and Institutional Persistence," American Economic Review, American Economic Association, vol. 96(2), pages 325-330, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alkon, Meir, 2018. "Do special economic zones induce developmental spillovers? Evidence from India’s states," World Development, Elsevier, vol. 107(C), pages 396-409.
    2. Divya Balasubramaniam & Santanu Chatterjee & David B. Mustard, 2014. "Got Water? Social Divisions and Access to Public Goods in Rural India," Economica, London School of Economics and Political Science, vol. 81(321), pages 140-160, January.
    3. Catherine Bros, 2009. "Social Fragmentation and Public Goods Revisiting the Olson's Effect in Uttar Pradesh and Bihar," Documents de travail du Centre d'Economie de la Sorbonne 09058, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    4. Catherine Bros, 2010. "Social fragmentation and public goods : polarization, inequality and patronage in Uttar Pradesh and Bihar," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00476016, HAL.
    5. Bros, Catherine & Couttenier, Mathieu, 2015. "Untouchability, homicides and water access," Journal of Comparative Economics, Elsevier, vol. 43(3), pages 549-558.
    6. Aradhna Aggarwal & Ari Kokko, 2021. "SEZs and poverty reduction: evidence from Andhra Pradesh, India," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 17(8), pages 1793-1814, January.
    7. Ira N. Gang & Kunal Sen & Myeong-Su Yun, 2017. "Is Caste Destiny? Occupational Diversification among Dalits in Rural India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(2), pages 476-492, April.
    8. Görg, Holger & Mulyukova, Alina, 2022. "Place-Based Policies and Agglomeration Economies: Firm-Level Evidence from Special Economic Zones in India," IZA Discussion Papers 15123, Institute of Labor Economics (IZA).
    9. Gerard Padro i Miquel & Nancy Qian & Yang Yao, 2012. "Social Fragmentation, Public Goods and Elections: Evidence from China," NBER Working Papers 18633, National Bureau of Economic Research, Inc.
    10. Díaz-Cayeros, Alberto & Magaloni, Beatriz & Ruiz-Euler, Alexander, 2014. "Traditional Governance, Citizen Engagement, and Local Public Goods: Evidence from Mexico," World Development, Elsevier, vol. 53(C), pages 80-93.
    11. Catalina Tejada & Eliana Ferrara & Henrik Kleven & Florian Blum & Oriana Bandiera & Michel Azulai, 2015. "State Effectiveness, Growth, and Development," Working Papers id:6668, eSocialSciences.
    12. Zheng, Guo & Barbieri, Elisa & Di Tommaso, Marco R. & Zhang, Lei, 2016. "Development zones and local economic growth: zooming in on the Chinese case," China Economic Review, Elsevier, vol. 38(C), pages 238-249.
    13. Erik Lindqvist & Robert Östling, 2013. "Identity and redistribution," Public Choice, Springer, vol. 155(3), pages 469-491, June.
    14. Timothy Besley & Torsten Persson, 2011. "Pillars of Prosperity: The Political Economics of Development Clusters," Economics Books, Princeton University Press, edition 1, number 9624.
    15. Rodney Ramcharan, 2010. "Inequality and Redistribution: Evidence from U.S. Counties and States, 1890-1930," The Review of Economics and Statistics, MIT Press, vol. 92(4), pages 729-744, November.
    16. Catherine Bros & Mathieu Couttenier, 2010. "Untouchability and Public Infrastructure," Documents de travail du Centre d'Economie de la Sorbonne 10074, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    17. Yasuyuki Sawada & Ryuji Kasahara & Keitaro Aoyagi & Masahiro Shoji & Mika Ueyama, 2013. "Modes of Collective Action in Village Economies: Evidence from Natural and Artefactual Field Experiments in a Developing Country," Asian Development Review, MIT Press, vol. 30(1), pages 31-51, March.
    18. Bharathi, Naveen & Malghan, Deepak & Mishra, Sumit & Rahman, Andaleeb, 2022. "Public Goods and Nested Subnational Units: Diversity, Segregation, and Hierarchy," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322471, Agricultural and Applied Economics Association.
    19. Kartik Misra, 2019. "No Employment without Participation : An Evaluation of India's Employment Program in Eastern Uttar Pradesh," UMASS Amherst Economics Working Papers 2019-13, University of Massachusetts Amherst, Department of Economics.
    20. Konstantinos Matakos & Dimitrios Xefteris, 2017. "Divide and rule: redistribution in a model with differentiated candidates," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(4), pages 867-902, April.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ums:papers:2019-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniele Girardi (email available below). General contact details of provider: https://edirc.repec.org/data/deumaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.