Friday, January 24, 2020
Program Music: Richard Strausss Don Quixote Essay -- essays research
Before the Romantic musical age, composers wrote music for the purpose of arranging sounds into the most beautiful way possible. Because of these goals, they followed some very specific ideas and wouldnââ¬â¢t stray from them. Once the Romantic era hit, composers wanted to express a variety of things in their music. This is when the idea of program music appeared. Program music is usually instrumental music without spoken or sung words to explain the story or event that the composer has chosen to describe with his or her music. However, program music relies on a few non-musical things to make sure that the listener is interpreting the correct story. These things are often the title of the piece, a written forward and many times notes written to the performer/director directly in the score. After all, it is easy for a composer to say ââ¬Å"I am sadâ⬠in his or her music by just using minor sonorities and dissonances, but it isnââ¬â¢t possible for the composer to say ââ¬Å "I am sad because my mother is about to die of prostate cancerâ⬠without the aid of explanatory notes. Program music has become a staple of our modern musical listening diet in almost every genre from full orchestra to wind band to small jazz combo. One of the most prominent examples of program music is Richard Straussââ¬â¢s tone poem Don Quixote. This tone poem tells the story of Miguel de Cevantes Saavedraââ¬â¢s novel The Adventures of Don Quixote. The story of the hero Don Quixote is one of insanity and delusion that Strauss was able to depict very well. Don Quixote was a middle aged man that read too many books about knights and their heroic deeds. This is shown by three different themes given to show Donââ¬â¢s dreams of being a knight. Over time, he read so many books and dreamt of rescuing his ideal woman named Dulcinea from a dragon so many times that his mind was unable to separate his real life from his fantasy world. Strauss chose to depict Dulcinea with a beautiful lyrical melody while the dragon is represented by a loud, low, sustained melody in the tenor and bass tubas. Donââ¬â¢s victory over the dragon is shown by a victory flourish in the flute and oboe. After this melding of his mind occurs, he believ es that he is really the knight Don Quixote de la Mancea. From here, he and his side kick Sancho Panza set out into the world to do chivalrous deeds. From here on out, Don is represented by a solo cello voice. When ... ...with the Knight of the Silver Moon. The knight is really one of Don Quixoteââ¬â¢s townspeople that is concerned for Donââ¬â¢s well fare. To save Don, this man plays along with Don and defeats him in a joust. This battle is shown by the solo cello playing Donââ¬â¢s themes playing against all the wind instruments playing the Knightââ¬â¢s themes. This is followed by a dirge-like section which includes the shepherds them. This shows that Don is forced to return home and he thinks about being a shepherd. With all of Donââ¬â¢s dreams of being a knight shattered, he returns home and lives the rest of his life. The final scene is of Don lying in his bed dying. Strauss shows Don Quixoteââ¬â¢s final peace in death by using the same two chords that showed his initial desire to be a knight, but this time they are sustained at a pianissimo level. Richard Strauss was known for being able to portray incredible stories with his music incredibly well. Every part of his writing is so descriptive that even Strauss said that he could ââ¬Å"describe a soup spoonâ⬠in his music. Program music became so popular and still is for just that reason; a master composer like Strauss can tell any story in a musical format that people enjoy.
Thursday, January 16, 2020
India vs China Essay
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. It has been five years now since all then existing EPZs have been converted into SEZs. Section ââ¬âII 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 canââ¬â¢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 â⬠¢ 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. â⬠¢ 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 Indiaââ¬â¢s exports during the fiscal year 2004-05. â⬠¢ 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%. â⬠¢ 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%. â⬠¢ 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. â⬠¢ 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 ââ¬â 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 countryââ¬â¢s 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 Peopleââ¬â¢s 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 1960ââ¬â¢s which were geared towards selective import liberalization and export promotion, marked the development of EPZââ¬â¢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 Indiaââ¬â¢s SEZ Restriction sectors on Open manufacturing, services trading activities Indiaââ¬â¢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 is 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 ââ¬âfree 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 good s 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 ââ¬Ëpilot areasââ¬â¢ 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 Appro val 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 donââ¬â¢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 ââ¬ËSpecial Economic Zone Re-investment Reserve Accountââ¬â¢ 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: â⬠¢ 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. â⬠¢ â⬠¢ â⬠¢ â⬠¢ â⬠¢ â⬠¢ 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 Earnersââ¬â¢ 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 ââ¬â 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 prof it 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 itââ¬â¢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. Itââ¬â¢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 countryââ¬â¢s total Export SEZââ¬â¢s contribution in countryââ¬â¢s 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 Source: 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 canââ¬â¢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 doesnà ¢â¬â¢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 doesnââ¬â¢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 ââ¬â 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 1980ââ¬â¢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, Chinaââ¬â¢s 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 worldsââ¬â¢s first export processing zones at Kandla in 1965, EPZs have never had much impact on Indiaââ¬â¢s export performance. Tariff exemption schemes have tended to be excessively complex and encourage a ââ¬Ëlicence rajââ¬â¢ 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 worldââ¬â¢s preferred foreign investment dest ination. Closer examination of the FDI statistics suggests that Indiaââ¬â¢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 chinaââ¬â¢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 itââ¬â¢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 SEZââ¬â¢s 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: â⬠¢ â⬠¢ â⬠¢ â⬠¢ â⬠¢ No tax during start-up years before making a profit The first year that any company makes a profit starts the ââ¬Å"Tax Clockâ⬠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 canââ¬â¢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%. Acc ording to available 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 Indiaââ¬â¢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 ââ¬Ëthe 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 SEZââ¬â¢ (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 ââ¬Ëso -calledââ¬â¢ 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. Indiaââ¬â¢s tax and tariff structures are still anti export. Indiaââ¬â¢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 Indiaââ¬â¢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 Indiaââ¬â¢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. NSEZââ¬â¢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 NSEZââ¬â¢s success: A) Proximity to Delhi: One of the prime reasons of NSEZââ¬â¢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 ââ¬â 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 ââ¬ËBusiness Standardââ¬â¢ 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. Itââ¬â¢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 canââ¬â¢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 canââ¬â¢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 chinaââ¬â¢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 canââ¬â¢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) ââ¬ËThe 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 Earnersââ¬â¢ 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. â⬠¢ Exemption from Central Sales Tax and Service Tax â⬠¢ Facilities to set up off-shore banking units in SEZs. â⬠¢ Exemption from duties on import /procurement of goods for the development, operation and maintenance of SEZ. â⬠¢ Income tax exemption for a block of 10 years in 15 years. â⬠¢ Exemption from Service Tax 43 â⬠¢ FDI to develop townships within SEZs with residential, educational, health care and recreational facilities permitted on a case-to-case basis.
Wednesday, January 8, 2020
Political Parties of Texas Essay - 3050 Words
As individuals, we turn towards political parties to identify with a group that has the most in common with our own values and principals. Each political partyââ¬â¢s agenda focuses on the primary interests affiliated with that party and is motivated to enact its beliefs and interests through legislation by electing officials into government. Texas is a large state with four political parties: Republican, Democratic, Green Party, and Libertarian. Each political party has a basic fundamental ideology and platform on current issues. The two major political parties in Texas and in the nation are the Republican and Democratic parties.Texas is a conservative state where the Republican Party has known success as the leading political party inâ⬠¦show more contentâ⬠¦I personally feel that this proposed legislation is unconstitutional and infringes on personal rights. I also feel that this proposal conflicts with Republican ideology for less government interference in the daily lives of citizens. For a political party that is so focused on defending privacy and limited government involvement, this proposed legislative directive is very contradictory and hypocritical for what the Republican Partyââ¬â¢s ideals stand for. They are in favor of review and revision of the Patriot Act, as well as ââ¬Å"related executive and military orders and directives that erode constitutional rights and essential liberties of citizens.â⬠(Republican Party of Texas) The Republicans are choosey as to which constitutional rights and liberties they recognize and protect. The remaining legislative priorities target education, immigration, and tax reform. One item addressed concerning taxes is a request to ââ¬Å"reject raising or indexing the gas tax.â⬠(Republican Party of Texas) I agree with this proposition. 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Tuesday, December 31, 2019
Policy Memo For White Collar Crimes - 1573 Words
Kristofer Llauger CJBS 101 Assignment 1 Policy Memo Part I I. PROBLEM Write one (1) sentence that clearly states the problem. Big financial institutions are difficult to prosecute in white-collar crimes because of their influence. Write two (2) sentences that describe the problem in greater detail (what are the effects of the problem?) The Holder Doctrine, which comes from a memo created in 1999, has been the reason behind a lack of criminal prosecution against big companies that were part of the reason of the United States financial setback in 2008. Because of this much of the fraud that led to the financial crisis has gone unpunished. II.PROPOSED EXPLANATION OF THE PROBLEM Write one (1) sentence that explains a possible cause of the problem. Since 2007, researchers have found that a large percentage of cases regarding issue of white-collar crimes- especially those involving big financial institutions- have been resolved by the justice department making deals with these corporations and their executives. Write two (2) or three (3) sentences that provides justification for your explanation. Before 2003, the justice department did not offer these types of deals. Not prosecuting these companies and the individuals in charge leads to a lack of accountability among executives. Instead Eric Holder, who wrote the ââ¬Å"Holder Doctrineâ⬠and was former United States attorney general, chose to find these institutions. III. PROPOSED SOLUTION: Write one (1) sentence thatShow MoreRelatedHow Yates Has Impacted Corporate Responses1021 Words à |à 5 PagesHow Yates has Impacted Corporate Responses to Government Investigations. 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Monday, December 23, 2019
Complexities Of Community College Culture Essay - 2234 Words
Complexities of Community College Culture Brooke Adkison Head University of Alabama Abstract Community colleges do not have a single culture, but rather a myriad of cultures. The culture of an institution in higher education may not fit into a traditional model due to the complexity of academic culture. Within an institution, there is a dominate culture, as well as subcultures that exist. In addition, there are administrative cultures that may interact with the academic culture. The administration, faculty, staff, and students of an institution influence the culture, institutional goals, as well as individual success. Due to increasing demands and greater accountability in higher education, administrators are faced with greater challenges. At the community college level, there is an expectation for timely responsiveness to meet the needs of the community and workforce. Educational institutions must demonstrate sensitivity to the existing culture when addressing challenges in order to make progress. Complexities of Community College Culture Community colleges do not have a single culture, but rather a myriad of cultures. The culture of an institution in higher education may not fit into a traditional model due to the complexity of academic culture. Within an institution, there is a dominate culture, as well as subcultures that exist. In addition, there are administrative cultures that may interact with the academic culture. The administration, faculty,Show MoreRelatedCreating A Culture Of Change Is Challenging For Any Leader1125 Words à |à 5 PagesConstructing a culture of change is challenging to any leader. As a new Dean of a community college division, the vice-president has asked for a three-month action plan on the approaches that will be taken to promote a positive and productive environment for the faculty. 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Sunday, December 15, 2019
Project Report on Coffee Behaviour Free Essays
Westminster International University in Tashkent BSc in Economics with Finance 2012 ââ¬â 2013 CW 1 (Element 2): Group Final Report CW 1 (Element 2): Group Final Report To be completed by the student Studentââ¬â¢s ID number | 00001477, 00001568, 00002099, 00001506| Module name| Research Methods| Module code| 2UZB503| Tutor| Lobar Mukhamedova| Individual assignment| | Group assignment| | Submission deadline| 04. 04. 2013| For Academic Registrar use only| Contents Abstract3 Introduction3 Literature Review3 Coffee and Smoking4 Coffee and Smoking cessation5 Coffee and alcohol5 Coffee and physical activity6 Coffee and Income6 Conclusion6 Research question7 Research objectives7 Methodology7 Research approach and design7 Research setting8 Study population and sample8 Data Collection9 Data collection instrument9 Data collection procedure9 Reliability and validity10 Reliability10 Validity10 Ethical considerations10 Conclusion10 Data11 Estimation and Results14 Conclusion and Recommendations16 Bibliography17 Appendix 119 Questionnaire instructions. We will write a custom essay sample on Project Report on Coffee Behaviour or any similar topic only for you Order Now 19 Instructions on how to complete the questionnaire19 Coffee questionnaire20 Personal information:20 Abstract The following paper discusses the main determinants of coffee consumption at Westminster International University in Tashkent. Determinants such as income of respondent, ethnicity, religion, smoking habits and other factors are investigated. Data was collected using online methods of surveying and self-administrated questionnaires. Results proved to be significant and revealed a negative correlation between coffee consumption, active lifestyle and marital status. In contrast, positive correlation between coffee consumption income and age was found. Other factors as smoking, religion, education years proved to be insignificant. Introduction Being the third most consumed beverage in the world after water and tea, coffee is valued for its distinct aroma, flavor and energizing effect. Found in Ethiopia in the 9th century, coffee first became popular in the Arab world, was then promoted in Europe and consequently developed into one of the most traded commodities in the world(John K. Francis, 2007). World annual per capita consumption was equal to 1. 3 kg/person in 2011. America and Europe are the largest coffee consumers on per capita basis, accounting for 3. 9 and 3. 7 kg/person respectively, in comparison to Asian countries where the average constituted 0. kg/person (World Resources Institute, 2011). Nevertheless, the western coffee consumption habits are slowly starting to spread in Asia, especially in Uzbekistan, where coffee is considered as a fashionable hot drink rather than an everyday necessity. The consumption of both instant and insoluble coffeein Uzbekistan is limited to urban areas and is generally increasing alongside with the rising living standards (Euromonitor, 2011). Furthermore, the rising number of coffee shops and the popularity of coffee houses such as Cafe Jum, Julius Meinl, Book Cafe, KafeKafe and Coffee Clubare good indicators of the growing popularity of coffee. Literature Review Evidence from various studies identify that living standards are not the only determinant of coffee consumption behavior. Smoking, smoking cessation, alcohol, age, gender, level of physical activity and income also play a sufficient role in oneââ¬â¢s consumption patterns. In their comprehensive research on coffee and associated lifestyle factors published in 2010 Hewlett and Wadsworth discovered a link between caffeinated drink consumption, smoking and alcohol. The findings revealed that those drinking coffee were more likely to be smokers aged between 30 and 70. Another review on coffee consumption behavior in Karnataka, India published in 2008 by Varun indicated a positive correlation between education, family size and income on coffee demand in urban areas, whereas in the rural areas, the price was the main determinant influencing consumption. The rationale for the linkage of the determinants and coffee consumption is reviewedand discussed belowbased on a wide range of researches and surveys. The studies concerning coffee consumption behaviorwere obtained from EBSCO, JStor, Emerald and Google Scholar databases. Those researches included in the literature review are published in English, report coffee consumption behavior; show correlation with at least some of the lifestyle factors and provide a detailed review of the applied methodology and statistical analysis. Coffee and Smoking Seven studies concluded that higher cigarette consumption among persistent smokers is linked to highercoffee consumption. The investigation on coffee consumption patterns among army personnel byZavela et al. (1990) revealed a positive correlation between female cigarette and alcohol consumption and male cigarette and coffee consumption. Furthermore, the researchers identified that non-smokers tend to be abstemious to coffee and alcohol consumption. In contrast, Koksal et al. (2011) in their pseudo-panel analysis of US household data came to the conclusion that that coffee consumption and consumption of cigarettes and alcohol are not correlated due to the statistical insignificance of the cross price elasticities of coffee. However,even though there is no serial complementary relation in the observed population, the authors do not exclude the possibility that coffee and cigarettes are complements for some individuals. Studies by Salazar et al. and Garcia et al. hat analyzed the responses from about 120ââ¬â¢000 participants both, stated that more than 50% of female smokers drank at least 6 cups of coffeeper day, whereas only 30% of smoking men consumed at least 6 cups of coffee on a daily basis. Digging even further into the research of the relation of smoking and coffee, Klesges et al. conducted a large epidemiolo gic study with more than 7500 respondents. The researchers labeled those consuming from one to four cigarettes per day as light smokers, those smoking from five to twenty cigarettes as moderate smokers and those smoking at least twenty one cigarettes per day as heavy smokers. Further analysis revealed that light and moderate smokers where 2. 34 and 2. 84 times more likely to drink coffee than non-smokers, whereas heavy smokers where 4. 23 times more likely to be coffee consumers. The comparison of the student sample with the general public sample by Brice et al. illustrated that smokers in both samples were likely to drink more coffee in comparison to non-smokers. In the student sample (121 respondent) smokers on average consumed 76 mg more caffeine than their fellow non-smokers. In the general public sample (122 respondent) smokers consumed 92 mg more than non-smokers. The majority of the academic papers revealed a positive correlation between smoking and coffee consumption (except the Koksal et al. study). However, some of the mentioned above studies might be a subject to bias as most of the respondents were asked to self-report coffee consumption and smoking habits. Furthermore, studies by Zavela et al. and Brice et al. had small samples that did not completely represent the whole population and may therefore also be addressed as biased at some point. Nevertheless, despite the presented results, none of the researches, except for Benowitz et al. 2003) addressed the actual reason for the coffee/smoking relation. According to the researchers smokers prefer coffee due to the fact that smoking increases caffeine metabolism and coffee contains the highest its highest dose among all other beverages. In order to confirm the positive correlation between the amount of cigarettes smoked and coffee consumed it is important to research the reverse side of th e relation. Do those people that quit smoking consume less coffee? Coffee and Smoking cessation Several studies review the relation between smoking cessation and coffee consumption andall of them reveal a positive correlation. A cross-sectional study by Fernandez et al. described a total sample of 2621 respondents and found that lower coffee consumption was associated with quitting smoking. However, the results might be effect-modified as the health reasons for quitting where not taken into consideration during data collection. The research on smoking relapse conducted by Krall et al. revealed that people who quit smoking but where drinking at least 6 cups of coffee daily where 2. 33 times more likely to start smoking again. A similar study of 116 men by Kauffman et al. eviewed that those who donââ¬â¢t drink a lot of coffee where 12 times more likely to quit smoking successfully. Furthermore, education and age where identified as the factors positively affecting smoking cessation and where adjusted in order to make the effect of coffee consumption clearer. Coffee and alcohol Correlations between coffee consumption and alcohol consumption are mostly explained by ones attitude towards health. Therefore, u sually alcohol drinkers are less concerned by their health and on average consume more coffee than non-drinkers. Researches by Talcott et al. and Stevenson et al. prove this statement as according to their findings, alcohol drinkers were 1. 52 times more likely to drink coffee. Schwarz et al. investigated even further and researched the relation between different alcohol drinks with coffee and tea consumption in a sample of 2400 respondents aged from twenty five to sixty four. The findings of the authors revealed that among beer, wine and other beverages only wine had a positive correlation with coffee consumption. Again the above studies have some limitations as some of them o not reveal the health conditions of the respondents. As mentioned above health is a serious determinant that can affect both alcohol intake and coffee consumption. Furthermore, self-administered means of collecting information were used. Therefore, the collected data might be prone to bias. Coffee and physical activity The majority of the reviewed surveys associated high coffee consumption with low physical activity. Acc ording to the research by Hewlett et al. less coffee consumption was associated with being younger and a less than healthy lifestyle. Thune et al. onducted a survey with more than 10000 respondents that indicated that both males and females with sedentary jobs consumed more coffee than those that were physically more active. Therefore, coffee consumption may be associated with less leisure time activities and a sedentary job. It is important to mention the work of Mosdol et al. that researched how the changes in coffee consumption affected ones physical activity. The respondents were placed in three groups by coffee consumption. The first group didnââ¬â¢t drink coffee at all, the second consumed 1 to 3 cups per day and the third group drank at least 4 cups. Furthermore, 3 physical activity level groups were established. The results revealed that those participants that increased the amount of cups consumed per day were less likely to do physical exercise. Therefore, the higher is the coffee intake, the less physically active an individual is. From the methodological point of view, the limitations of the mentioned above surveys where again connected to the fact that mostly the participants were asked to self-report their levels of physical activity and coffee consumption. Furthermore, the studies researched the relation between the two variables at a single point of time. All of the limitations combined make it hard to identify the real connection between coffee consumption and physical activity. Coffee and Income It is evident that the relation between coffee consumption and income varies from region to region. Therefore, coffee consumption in some states comprises a significantly lower proportion of total consumption in comparison with other countries. Hewlett et al. (1990) identified that the income elasticity is positive and less than one for all of the goods investigated (coffee, tea, alcohol). Interestingly, the study by Varun et al. evealed that urban households purchase a larger amount of coffee and tea in contrast to rural households. Furthermore, total family income plays a more significant role in consumer decisions in urban areas, whereas family size was the major factor in rural areas. Conclusion Based on the reviewed literature most important coffee consumption determinants were identified. Therefore, a significant correlation between sm oking and coffee consumption was found. Additional research revealed that smokers on average consume more than non-smokers and those who quit smoking. Furthermore, the probability of smoking relapse was higher for those ex-smokers that consumed a higher amount of caffeine. The biological relation between coffee metabolism and smoking was recognized as one of the factors to explain the correlation. Coffee consumption and alcohol intake were linked to an individualââ¬â¢s personal healthcare choices. Therefore, high consumption of alcohol was correlated with an unhealthy lifestyle and consequently, with a higher consumption of coffee. Unhealthy lifestyle was also proved to be the factor relating coffee intake with lower physical activity. Income and coffee consumption were proven to change from region to region, with people in urban areas with higher incomes drinking more coffee in comparison with the people in rural areas. Most importantly, a research gap was found. As can be seen from the above review, none of the researchers investigated coffee consumption patterns in Uzbekistan and almost none of them investigated university studentââ¬â¢s coffee consumption behavior. Therefore, it is important to fulfill this gap and conduct a survey of coffee consumption patterns among students in Uzbekistan. However, due to the scarcity of resources this research will focus on the coffee consumption determinants in Westminster International University in Tashkent (WIUT). Research question What are the main coffee consumption determinants for the students of the Westminster International University in Tashkent? Research objectives * To identify the main factors affecting coffee consumption behavior of WIUT students * To discover whether the findings about the positive relation between smoking and coffee consumption are applicable to WIUT tudents * To interpret the discovered relations between key determinants and coffee consumption Methodology Research approach and design During the research a quantitative approach was implemented. Given (2008) describes a quantitative research as an empirical investigation of a social phenomenon by the use of statistical, mathematical or computational techniques. Usually a quantitative approach is applied when it is necessary to statistically describe an d test relations between certain variables and examine cause effect relations. A descriptive (correlational) survey was used to collect primary data to describe the population. The descriptive survey interprets the relationships among a set of variables to develop trends and patterns in the data. Variables in this kind of a survey are not manipulated and are studied as they occur. The survey obtains data from a population sample by means of self-report, when participants respond to a number of questions identified by the researcher. In the current research, information was gathered by the use of self-administered questionnaires distributed online and individually for each participant. A descriptive quantitative approach was applied because it helps to identify the causes of the interrelations in the variables. The main advantage of the employed approach is precision that is achieved through reliable quantitative measurement, when the collected data is not manipulated. However, there are some limitations due to the objectivity of self-reports, as respondents may provide the researcher with unauthentic information that is not accurate. Research setting The study was conducted at the Westminster International University in Tashkent that is located in the highly dense urban area in the center of the capital of Uzbekistan. Approximately 1700 students and 90 teachers attend the university. The majority of the students are locals aged from 17 to 25, most of which are a registered in the Facebook social network. Study population and sample A population is a set of all the elements that come within the study sample criteria. The sampling frame consisted of young adults aged 17 to 23 that are full-time bachelorââ¬â¢s degree students who study on levels 3, 4, 5 or 6 of the university. Masterââ¬â¢s degree students and teachers were not included in the frame as they represent an older age group that does not fit into the aim of the research to study consumption patterns among students. Due to the lack of time, resources and the impossibility of implementation, the census approach, when data is collected from everyone in the population,was excluded from the research. Instead, the simple random sampling approach was applied. Under this approach the sample is collected by randomly choosing the respondents from the sampling frame. The simple random sampling approach was used because the research sample size was equal to 300, the sample frame was easily accessible via the computer database, and interactions with the respondents were not an issue. The sample size decisions were based on a 95% confidence level that the data represents the characteristics of the whole population and the 3-5% acceptable margin of error that expresses the amount of random sampling error in the results. According to the optimal sample size calculations and the table adapted from Saunders et al. (2003, p. 56) and assuming a 100% response rate the optimal sample size was identified to be equal to 300. The collected sample was compared with the student statistics from the university and was provento represent the characteristics of the university population. Data Collection Data collection instrument A self-administered questionnaire was chosen as the data collection instrument for the research. A typical questionnaire is usually a mean of collecting primary data and consists of a series of questions that are aimed at gathering information from the respondents. The decision to apply questionnaires as a data gathering tool was made largely due to the following factors: * High response rates as the questionnaires were distributed online via social networks and distributed to the respondents to complete and were consequently collected personally by the researcher * Less time and resources to administer, as all of the online replies where automatically monitored and both online and manual responses wereprocessed by computer software * Anonymity, as the respondents personal identification details (e. g. ame, student ID, etc) were not required * Less prone to bias as they were presented in a consistent manner * Most of the questions were closed, which made further statistical analysis easier However, the main disadvantage from the self-administered questionnaire is that it might not reflect the true state of the respondent and valuable information might be lost as the answers are usually brief. The questionnaire was conducted in English and consi sted of two sections. Section 1 was aimed at getting demographic data such as age, gender, education years, religion, etc. Section 2 mostly consisted of closed questions and was aimed at determining ones coffee consumption habits and related information. The examples of the questionnaire with instructions on how to complete it areprovided in Appendix 1. Data collection procedure The questionnaires were distributed in two ways: * Via social networks such as Facebook and Odnoklassniki * Personally to respondents at the university In order to avoid resemblance in the online and manual responses, the sample was divided into two groups by study level. Therefore, the first group, consisting of level 5 and level 6 students was questioned online, whereas the level 3 and 4 students were asked to fill manual questionnaires. The data was collected in a one month period. Reliability and validity Reliability Reliability is a measure of consistency with which an instrument, in the case of the current research a questionnaire measures the attributes it was designed to measure. Therefore, a questionnaire may be assumed to be reliable if it will give the same results when applied to the same group of people. The questionnaire was firstly pretested on a group of 50 people that answered the questionnaire twice in different environments, the results revealed consistency in responses. The two sets of responses can were compared statistically using weighted Kappaà for categorical data and Spearmanââ¬â¢s Rank Correlation Coefficient for continuous data. However, it is important to minimize measurement errors related to reliability. Hence, data collector bias was reduced by allocating two researchers to be the only ones to manage the questionnaire. The environment where data was gathered was made comfortable by ensuring silence, privacy and confidentiality for the respondents. Validity In contrast to reliability validity is a measure of how a questionnaire is employed and refers the extent to which the questionnaire represents studied variables. In order to ensure validity, the questionnaire was based on the review of literature. In addition, all questionnaires distributed manually were delivered by the appointed administering researchers. Furthermore, the questions were formulated in a simple language to assure clarity, guidelines were provided in order to ensure the ease of understanding the questions. The manual questionnaires were completed in the presence of the researchers to make sure that the questionnaires were not filled by third parties. However, it was hard to administer this aspect of the online questionnaire as the researchers were unable to monitor the process of filling. Ethical considerations In order to protect the human rights of the respondents, ethical aspects of the research were taken into consideration. Therefore, before handling in the questionnaire the researchers informed the participants about the aims of the study. Anonymity and confidentiality were maintained, as the personal information of the respondents was not disclosed, and the collected information was kept confidential. Self-determination was sustained by providing the respondents with a choice on whether to participate in the research or not. Scientific honesty, being an important ethical part of the research was also maintained as the researchers and analysts did not manipulate, change or alter the collected data. Conclusion The research implemented a descriptive, quantitative approach. Self-administered questionnaire was used to collect information from 300 respondents on the territory of the Westminster International University in Tashkent. The sample included young adults aged 17 to 23 studying on the levels 3,4,5 and 6 of the university. Reliability, validity and ethical considerations were taken into account while administering the research. Data Descriptive statistics and results are shown in Figure 1. Variable| Observations| Mean| Std. Dev. | Min| Max| | | | | | | ID| 297| 149| 85. 8073| 1| 297| age| 297| 20. 60269| 3. 388732| 16| 40| gender| 297| . 5454545| . 49877| 0| 1| marital| 297| . 0909091| . 287965| 0| 1| ethnicity| 297| . 8855219| . 3189284| 0| 1| | | | | | | religion| 296| . 9054054| . 2931498| 0| 1| city| 296| . 7668919| . 4235265| 0| 1| educyears| 296| 13. 93581| 2. 639838| 4| 45| Montly Income| 195| 575451. 3| 1027561| 0| 1. 00e+07| Work| 294| . 452381| . 4985759| 0| 1| | | | | | | Smoke| 297| . 2255892| . 4186752| 0| 1| Sport| 296| . 7466216| . 4356823| 0| 1| Drinking Coffee| 297| . 8114478| . 3918127| 0| 1| Coffee consumption| 283| 27. 9929| 34. 79035| 0| 225| Price Coffee| 266| 3449. 286| 4854. 957| 0| 18000| | | | | | | Weather| 296| . 5067568| . 500801| 0| 1| Morning| 296| . 5236486| . 5002862| 0| 1| Food| 296| . 5101351| . 5007438| 0| 1| Winter| 294| . 5816327| . 4941322| 0| 1| Company| 296| . 5236486| . 5002862| 0| 1| | | | | | | ln Income| 131| 13. 26666| . 8222373| 11. 51293| 16. 1181| LN Coffee| 259| 2. 844612| 1. 142757| 0| 5. 416101| LN Price| 242| 7. 805468| . 9738078| 2. 302585| 11. 0021| Figure 1 The sample collected was used with the help of the STATA statistical and econometrical tool. Qualitative data representing dummy variables as religion, ethnicity, employment status, smoking habits, sport, marital status and all other vectors of dummy variables were transformed to quantitative data. The list of dummy variables and their quantitative meaning is represented in Figure 2. Variable| Observations| Represented as 1| Represented as 0| à | à | à | à | gender| 297| Male| Female| marital| 297| Married| Single/Widow| ethnicity| 297| Asian| Other| | à | à | à | religion| 296| Muslim| Other| city| 296| Tashkent| Other| Work| 294| Employed| Unemployed| | à | à | à | Smoke| 297| Smoker| Non-smoker| Sport| 296| Sport| Non-sport| Drinking Coffee| 297| Coffee Drinker| Non-coffee drinker| à | à | à | à | Weather| 296| Weather Influence| Weather doesnââ¬â¢t influence| Morning| 296| Morning hours preffered| No preference over time| Food| 296| Coffee consumed with food| No preference regarding food| Winter| 294| Winter time preffered| No preferene over time| à | à | à | à | Figure 2 As descriptive statistics show, the sample number was decreased to 297 due to the exclusion of some answers with irrelevant and unreal results, i. e. , those surveys that were spoiled by giving extraordinary high levels of coffee consumption or income. Mean income of a WIUT students was estimated to be 575ââ¬â¢451 UZS with the standard deviation of 1ââ¬â¢072ââ¬â¢000 UZS to both sides. Again, such a big dispersion indicates low reliability of the data that will be discussed further. The composition of the sample regarding gender, as well as with respect to age grouping and ethnicity is shown in Figures 3 to 8. Figure 4. Employment Status Figure 4. Employment Status Figure 3. Gender Distribution Figure 3. Gender Distribution Figure 6. Religion Figure 6. Religion Figure 5. Smoking habits Figure 5. Smoking habits Figure 8. Age distribution Figure 8. Age distribution Figure 7. Active Lifestyle Figure 7. Active Lifestyle Estimation and Results Estimations were found using the method of weighted least squares and finding corresponding coefficients for respective variables. In order to avoid the problem of heteroscedascity, robust method of weighted least squares instead ordinary least squares method was applied. Nevertheless, in order to show the difference between ordinary least squares and weighted least squares methods both models were used in the results section. In Regression 1 Ordinary Least Squares Method was employed, while Regression 2 used the Weighted Least Squares Robust method to avoid the problem of heteroscedascity. Furthermore, due to the existence of zero-expenditures problem in some cases and not giving accurate information regarding income of students all income information was respectively changed to logarithmic scale. Moreover, since coffee consumption is discrete, it was also changed to logarithmic scale in order to avoid zero expenditure problems during estimation. Therefore, the final model of weighted least squares model can be shown by the following function. lncoffee= ? +? logincome+jik+? where k is the j number of dummy variables such as city, ethnicity, education, gender, employment status, smokers and other variables described before. As it was said usage of the logarithmic scale helps to avoid the issues associated with zero expenditure. Results. The following table shows estimates for both models using Weighted Least Squares and Ordinary Least Squares (Robust) methods. The difference between two model is not cardinal. The most obvious difference is in the estimations of standard error, since usage of the robust method gives smaller standard errors. Results found a vivid relationship between active lifestyle (sport) and drinking coffee. People who do sports tend to consume less coffee than those leading a less active lifestyle. Furthermore, estimations revealed an interesting correlation for those individuals that are single. In this case, as it was said earlier dummy variable 1 represents a married person. Negative coefficient for marital status indicates that on average married people consume less coffee than singles or widows. In this case the reference group was singles and both coefficients were significant at 99% confidence level, rejecting null hypothesis that marital status and sport activities do not relate to coffee consumption among students of WIUT. | Regression 1| Regression 2| | coef| se| coef| se| Age| 0,039| 0,027| 0,039*| 0,022| Gender(1/0)| -0,102| 0,205| -0,102| 0,218| Marital status (1/0)| -0,894***| 0,319| -0,894***| 0,269| Ethnicity| 0,163| 0,294| 0,163| 0,252| Religion| 0,117| 0,336| 0,117| 0,253| City where you were born:| -0,263| 0,219| -0,263| 0,209| Education years (school+ lyceum +university):| -0,007| 0,042| -0,007| 0,047| Do you have a part-time or full-time work? | 0,263| 0,190| 0,263| 0,224| Do you smoke? | 0,158| 0,244| 0,158| 0,238| Do you do sport? | -0,611***| 0,207| -0,611***| 0,198| Does weather influence your decision to drink coffee? 0,170| 0,186| 0,170| 0,203| Do you prefer to drink coffee in morning hours (7:00 to 11:00) or in any other t| 0,159| 0,198| 0,159| 0,234| Do you usually drink coffee with food/snack? | 0,212| 0,175| 0,212| 0,180| Do you drink more coffee during winter or any other period? | -0,239| 0,207| -0,239| 0,234| logincome| 0,230*| 0,121| 0,230*| 0,122| _cons| -0,730| 1,539| -0,730| 1,551| Number of observations| 119| 119| Adjusted R2| 0,136| 0,136| note: *** p;0. 01, ** p;0. 05, * p;0. 1| à | à | à | With a smaller confidence level, the importance of income was proved. In this case, positive coefficient of logincome with respect to logcoffee indicates that increase in income tend to result in an increase in coffee consumption. Furthermore, application of logarithmic scale as it was mentioned earlier, helped to avoid zero-expenditure problems, however shrank the available size of the sample down from 297 to 119. This occurred due to the responses of the participants who didnââ¬â¢t give correct responses on the income questions. Interestingly enough, results for age were important at 90% confidence interval while applying the robust method of standard error calculation. All other dummy variables including weather, consumption of coffee with snack, employment status, city, religion are concluded to be insignificant. Conclusion and Recommendations As estimations have indicated some significant results were obtained particularly concerning the research proposal in determination of coffee consumption behavior at WIUT. Mainly, the importance of income and marital status, with sedentary lifestyle proved that WIUT studentââ¬â¢s coffee consumption pattern and addictions were quite similar to those revealed in the study by Zavela. The difference and usefulness of the results nevertheless might not be as good as it might have been in the case of a broader and better collected sample. First of all, collection of data not via survey, but corresponding actual spending on coffee and finding out total monthly expenditure would have been much more appropriate for the analysis. In that case, reliability of the data would be guaranteed and more precise results might be obtained. Also, quite limited and more or less similar population of WIUT population canââ¬â¢t be interpreted as proxy for any Uzbekistan university students, or even for Tashkent city students. In order for the sample to be more representative data from each university should be collected using not a self-administered survey, but more fundamental methods. However, considering high cost and the lack of time, sufficient data collection might be a hard problem. Bibliography ââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬â- Brice C. F. and Smith A. P. (2002). Factors associated with caffeine consumption. International Journal of Food Sciences and Nutrition, 53, 55-64. Current Worldwide Annual Coffee Consumption per capita. (n. d. ). ChartsBin. com ââ¬â Visualize your data. Retrieved March 11, 2013, from http://chartsbin. om/view/581 Fernandez E. , Vecchia C. L. , Avanzo B. D. , Braga C. , Negri E. and Franceschi S. (1997). Quitting smoking in Northern Italy: A cross-sectional analysis of 2621 subjects. European Journal of Epidemiology, 13, 267-273. Given, L. M. (2008). The Sage encyclopedia of q ualitative research methods. 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Physical activity improves the metabolic risk profiles in men and women. Archives of Internal Medicine, 158, 1633-1640. ââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬â- VARUN, T. (2008). CONSUMPTION BEHAVIOUR OF COFFEE AND TEA IN KARNATAKA. Thesis submitted to the University of Agricultural Sciences,à 1, 1-95. Appendix 1 Questionnaire instructions. For the researchers when introducing the survey to the respondents Dear Mr/Ms __________ As a part of our coursework on Research Methods, we were assigned to conduct a research on coffee consumption among students in WIUT. As part of the research we composed a questionnaire in order to identify your coffee consumption patterns. The questionnaire is anonymous and confidential. No personal information is required. Could you please take your time and answer the questions 1 to 16? Instructions on how to complete the questionnaire The questionnaire is confidential. No name or ID is required. Please fill in the personal information box first. Pay attention to the guidelines in the brackets after the questions. In the education years line please fill in the years you spent at school, lyceum or university either combined or separately. Yes/No questions have an additional field for commentaries. Fill in the comments section only if you have any additional information to share. Coffee questionnaire The questionnaire is confidential. No name or ID is required. Please fill in the personal information box first. Pay attention to the guidelines in the brackets after the questions. In the education years line please fill in the years you spent at school, lyceum or university either combined or separately. Yes/No questions have an additional field for commentaries. Fill in the comments section only if you have any additional information to share. | Personal information: Age:| | Gender (Male/Female):| | Marital status (Married/Single):| | Ethnicity: | | Religion:| | City where you were born:| | Education years (school+ lyceum +university):| | Monthly income (in UZS):| | | Criteria| Yes/No| Comments| 1| Do you have a part-time or full-time work? | Yes No| | 2| Do you smoke? | Yes No| | 3| Do you do sport? | Yes No| | 4| Do you drink coffee? YesNo| | 5| How much coffee do you consume per month? (in cups)| | 6| How much do you usually pay for a cup of coffee? (UZS per cup)| | 7| How much are you willing to pay for a cup of coffee? (UZS per cup)| | 8| Does weather influence your decision to drink coffee? | Yes No| | 9| Do you prefer to drink coffee in morning hours (7:00 to 11:00) or in any other time? ( Yes for morning hours, No for any other)| Yes No| | 10| Other than coffee, which hot/cold beverages do you regularly purchase? | | 11| How much do you usually pay for a cup of tea? UZS per cup)| | 12| How much are you willing to pay for a cup of tea? (UZS per cup)| | 13| Do you usually drink coffee with food/snack? (Yes if you do, No if you donââ¬â¢t)| Yes No| | 14| Do you drink coffee during winter or any other period? (Yes for Winter, No for other)| Yes No| | 15| Do you usually drink coffee while you are with friends/company or alone? (Yes with friends/company, No alone)| Yes No| | 16| Do you prefer university coffee or any other coffee outside? ( Yes for university, No for outside)| Yes No| | Any other comments: | | How to cite Project Report on Coffee Behaviour, Papers
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