Are special economic zones a curse on those "chosen" to be evicted? : evidence form West Bengal, India

Using data from a self-administered survey of 1,017 households we assess the long-term impact of establishing a special economic zone, on those who are exogenously selected to be displaced. We find those who are displaced suffer from lower land compensation and lack of adequate property rights. There is also some evidence of lower labour market participation among those who are displaced. However, in the long term, across measurable welfare indicators, we do not find that displaced households are significantly different from other households. One source of this resilience is through employment at the special economic zone – which is higher among displaced households compared to other households. Another factor that contributed to the absence of differences is spill-over effects; which made access to employment, education and other facilities about homogenous across displaced and non-displaced households.

Democratization and Financial Reform in Taiwan: The Political Economy of Bad-Loan Creation

This study shows that many bad loans now burdening Taiwan's financial institutions are interrelated with the society's democratization which started in the late 1980s. Democratization made the local factions and business groups more independent from the Kuomintang government. They acquired more political influence than under the authoritarian regime. These changes induced them to manage their owned financial institutions more arbitrarily and to intervene more frequently in the state-affiliated financial institutions. Moreover they interfered in financial reform and compelled the government to allow many more new banks than it had originally planned. As a result the financial system became more competitive and the qualities of loans deteriorated. Some local factions and business groups exacerbated the situation by establishing banks in order to funnel funds to themselves, sometimes illegally. Thus many bad loans were created as the side effect of democratization.