Thursday, February 7, 2013

MINING VS. CHINA[ING] IN ECONOMIC GLOBALISATION


Mining in Karnataka near [bellary ],in Andhra Pradesh [obulapuram] ,Goa are recently banned by supreme court [S.C]of India citing reasons ranging from environmental degradation to illegal exploitation. However it has had severely impacted the economy of states like Goa which is seeking to revoke the ban on its iron ore deposits. This might give us the impression that the Supreme Court has foresightedly recognised the ill effects of economic globalisation. Yes, economic globalisation is the strong reason behind the unscientific exploitation of precious mineral resources that can be lasted for longer period. Is it justifiable to blame economic globalisation [E.G] as a sole factor behind the scenes of human greed?
                            pic: this is not mars,our mother earth  near obulapuram mines
Resource mobility is a must for any nation in order to grow and sustain itself in the highly globalised world. This became more intense in the last two decades of the 2oth century and the past decade of new mellinium.as no nation is self-sufficient in the current complex world where needs are more than the means .so, dependency in the name of globalisation lead to movement of economic resources creating economic globalisation. Ultimate aim of E.G is balance in global trade and commerce. But this balance is being upsetting in countries like nations of ASEAN, nations of S.E ASIA, and the African continent. But the ill effects often override the benefits of E.G leading to chaos and crisis creating resource nationalism with a wide gulf between haves and have not’s.
The S.C of India constituted Justice M.B. Shah Committee to look in to the illegal mining of Indian iron ore mines .this come up with a surprising report saying that China gobbled up Indian ore, while “strategically stopped short of tapping its deposits of 200 billion tonnes”. The Committee, which went into the issues relating to illegal mining in India, recommended banning of export of Indian ore. Which can be the reason behind recent S.C’s verdict?
 

                           pics: mininig and exporting indian iron ore to china
Natural resources are very limited in their extent, squandering of resources makes us only victims of E.G, these resources are life blood of any nation’s economy. Estimated reserves of India are around 9 billion tonnes compared to china’s 200.so, what is the rationale behind china importing ore from relatively resource scarce india.is it a future geo-economic strategy of china? Is there a threat from china in terms of resource monopoly making us to pay heed to it in near future? Is the India calculating the loss in terms of ecology and indignity of its diversity in continuing mining activities for the sake of a relatively mineral rich neighbour? How far it’s advisable to burn your house to light up the neighbours? Is India safe?
                                                     pic: here china is represented as the tiger
Recently also china threated the world’s major economies like United States and Japan including India with the banning of rare earths export .Today literally  all electronic industries needed rare earths but only ironically china is the only potent supplier. This not because of  that rare earths are available in china only, it’s because no other nation tried to develop rare earths processing in the hope that china will continue supply forever. At least by this experience India should be aware of what it is doing.
India can’t recognise its “AVATAR” people found in India. The Indian government is blind to the aspirations and interests of indigenous people of DONGRIA KHONDS who are against the upcoming 50,000 crore   rupees South Korea’s POSCO steel plant. From where does the raw ore come? To where the finished product goes? Who reaps profits? Who bear the brunt of social and ecological rehabilitation? Who breaths the poisonous gases from the plant? Who…..? The list will be infinite if we go on questioning. Then what’s the need of hour should India stop all mining exports, lag behind the race in the highly competitive growth oriented global world.
The solution lies in SUSTAINABLE DEVELOPMENT. If the means is sustainable the end is also sustainable. India at the same time can also learn from china it self.
The Chinese case
Against this backdrop, China has demonstrated some original ideas on using its sovereign power to prevent large-scale squandering of vital raw materials such as bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, yellow phosphorous and zinc and rare earth (materials), where it is a monopoly supplier, by subjecting them to export restraints in 2009.
 
Chinese Golden Dragon And China Map Royalty Free Stock Photos - Image: 26095838
The export restrictions mainly consist of quotas, export duties, a minimum export price as well as additional requirements and procedures for exporters. Though United States and European Union approached W.T.O for unfair trade by china. The W.T.O gave verdict in favour of china saying that in the absence of effective domestic measures to manage the supply of the natural resources in a sustainable and environmentally-friendly way, a country cannot rely on the exceptions allowed under the WTO law.
 
The clear implication of this ruling, according to trade experts, is that there are much more efficacious environmental protection measures that do not discriminate against foreign industry. These include investment in more eco-friendly technologies, raising environmental standards, pollution control and effective production and consumption restrictions, as well as promoting recycling.
The obverse side of the dispute is that India can either process the ores to add value thereby ramping up its domestic manufacturing capacity of its much-needed steel industry or indiscriminately squander its extant mineral resources for pittance either by its state-owned trading companies which are in the iron ore export business or let private miners scratch the reserves to the bottom to batten themselves on for super profit both to themselves or to their political patrons as has been the case in Karnataka.
But it would be a pity if Indian authorities do not see the underlying implications of the Chinese export restraints on raw materials in the right spirit. Experts caution that what is at stake is not only the loss of precious mineral wealth of the country but also the grim possibility that when India really needs these minerals for its own development, they would either be prohibitively costly or simply be not there in the years ahead.
Hence it’s time for Indian government to open eyes see what’s lying ahead. It’s now India’s turn whether to fly with Economic globalisation  or to  perish with economic globalisation.

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