Thursday, August 25, 2011
Crusaders against Corruption??
Sunday, July 10, 2011
Mining in Development
A part of the longstanding debate about the role of business in development focuses on the controversy regarding the efficacy of the mining industry in contributing to economic growth and sustainable development. Based on the success of mineral-rich industrialized countries like Canada, Australia, and the United States, mining development has long been promoted by mainstream economists as a way for developing countries to achieve sustained economic growth. Although mining did play a role in the economic development of Canada, Australia, and the United States, there were a number of other factors or “unique conditions” that favored economic growth in these countries (i.e. high levels of institutional capital, large internal national markets, scarce labour, and protected national markets.). Secondly, Power argues that the dynamics of the world economy are not the same now as they were during these industrialized countries’ development. Decreased transportation costs and the emergence of large mineral companies have resulted in the “disintegration” of the mineral industry and the local manufacturing industry.
Minerals can now be shipped cost-effectively to developed countries for processing and finishing, thereby reducing opportunities for knowledge and technology transfer and investment in host countries’ economies. Moreover, because many of the large mines in developing countries are now owned and operated by foreign multinationals, much of the wealth derived from mineral extraction is often repatriated rather than invested locally. Thus, a number of studies have found that instead of experiencing sustained economic growth, contemporary developing countries those points out, modern mining is a capital and energy intensive industry that uses very little labor. Thus, the industry will have a more significant impact on the creation of income streams in labor scarce countries than in labor abundant countries because it will provide a greater percentage of the population with employment and income. Largely dependent on mining have generally experienced worse economic performance (in terms of economic growth and poverty reduction) than resource-poor countries.
At a more local level, within a state like Odisha, mining within a tribal landscape tend to be worse off than indigenous community that rely on other forms of economic activity for survival. In fact, it is widely acknowledged that local tribal community who are totally dependent on agro forestry and NTFPs, tend to suffer the greatest social, cultural, and environmental costs of mining, while the central government and other parts of the country(urban areas) reap the economic rewards. However, that most contemporary developing countries lack well-developed social, political, and economic institutions, and given that mining has thus failed to contribute to their development at the macro-economic level, one must ask whether it is indeed possible for mining to contribute to sustainable development at a more local level.
Odisha and Mining-2
Odisha and Mining
But now it’s not that the culture, heritage and natural beauty that luring the multinational mining companies but it’s that the high quality of mineral deposits in its warmth womb.
The state regarded as the mineral basket of eastern India and home to several key minerals and ores such as Bauxite, Iron, Coal, Chromite, nickel etc, representing 16.9% of the countries total mineral resource.
Since 2008, Odisha has been the leading state in India terms of FDI in the mining sector of about INR 2.5 trillion.
From last few years a slew of big ticket investment in the mining sector raised to some one billion US dollars in the state,which shows the potential to grow its economy to a higher level but unfortunately all the multinational investors like Vedanta Aluminium Ltd. and POSCO are now struggling with the delay of their projects.
In its attempt to improve the state’s business climate the GoO(Govt. of Odisha) has issued a no. of policies like Industrial policy 2007, FDI policy 2006, Labor policy 2007, R & R policy 2006,ICT plan 2000-2005 and to encourage the private participation it introduced PPP policy 2007.And it has the mining regulatory bodies like OMC and Department of Steel and Mines.
Despite having tremendous growth potential the mining industry in Odisha continuous to face no of challenges due to the lack of poor infrastructure, mining policy and the mining regulatory bodies and some what the wasted interest of the politicians and bureaucrats.
The countries like Australia, South Africa, and Canada prospered through the proper utilization of their mineral resources to build a robust mining industry which propelled their economy to a greater high.
So it is the high time that the GoO must realize to boost its economy by proper utilization of its mineral resources by reviewing its mining policy and faster decision making in order to bring transparency and to build a robust mining industry , by encouraging the highest standards of technical, environmental, safety and social practices for the sustainable development of the society.
chilika should be in the UNESCO's world heritage site
- to contain superlative natural phenomena or areas of exceptional natural beauty and aesthetic importance;
- to be outstanding examples representing major stages of earth's history, including the record of life, significant on-going geological processes in the development of landforms, or significant geomorphic or physio graphic features;
- to be outstanding examples representing significant on-going ecological and biological processes in the evolution and development of terrestrial, fresh water, coastal and marine ecosystems and communities of plants and animals;
- to contain the most important and significant natural habitats for in-situ conservation of biological diversity, including those containing threatened species of outstanding universal value from the point of view of science or conservation.