Published online by Cambridge University Press: 18 October 2017
During the period of decolonization and the Cold War, the United Nations Industrial Development Organization (UNIDO) and US development agencies promoted free trade zones to developing countries. However, other zones emerged prior to and apart from these policy models, some of which, including India’s early zones, took on features of this model only by the 1980s. To make sense of zones within and beyond a UNIDO model, this article understands them through their connection to the rise of nation-state territoriality around the world. The zone is thereby a spatial strategy used in processes of state (re)territorialization to rearticulate state spatiality under the global condition. This article explores such a perspective by situating the history of India’s early free trade zones comparatively.
The research for this article was generously supported by the DFG Research Training Group (GK) 1261 ‘Critical junctures of globalization’, the DAAD ‘A new passage to India’ scholarship, and the DFG Collaborative Research Centre (SFB) 1199 ‘Processes of spatialization under the global condition’. My sincere thanks to Matthias Middell, Patrick Neveling, Dara Orenstein, and the editors of the Journal of Global History for their helpful comments, suggestions, and criticisms.
1 ‘Special economic zones: political priority, economic gamble’, The Economist, 4 April 2015, http://www.economist.com/news/finance-and-economics/21647630-free-trade-zones-are-more-popular-everwith-politicians-if-not (consulted 27 June 2016); ‘Special economic zones: not so special’, The Economist, 4 April 2015, http://www.economist.com/news/leaders/21647615-world-awash-free-trade-zones-and-their-offshoots-many-are-not-worth-effort-not (consulted 27 June 2016).
2 Easterling, Keller, Extrastatecraft, London: Verso, 2014, pp. 59–60 Google Scholar; Palan, Roland, The offshore world: sovereign markets, virtual places, and nomad millionaires, Ithaca, NY: Cornell University Press, 2003 Google Scholar.
3 Kleibert, Jana Maria, ‘Islands of globalisation: offshore services and the changing spatial divisions of labour’, Environment and Planning A, 47, 4, 2015 Google Scholar, pp. 884–902.
4 Fröbel, Folker, Heinrichs, Jürgen, and Kreye, Otto, The new international division of labour: structural unemployment in industrialised countries and industrialisation in developing countries, Cambridge: Cambridge University Press, 1981 Google Scholar.
5 Boyenge, Jean-Pierre Singa, ‘ILO database on export processing zones (revised)’, International Labour Office working paper, Geneva, 2007, p. 1 Google Scholar.
6 ‘Special economic zones: political priority, economic gamble’; ‘Special economic zones: not so special’.
7 Cowie, Jefferson, Capital moves: RCA’s seventy-year quest for cheap labor, Ithaca, NY: Cornell University Press, 1999 CrossRefGoogle Scholar; Rosen, Ellen Israel, Making sweatshops: the globalization of the U.S. apparel industry, Berkeley, CA: University of California Press, 2002 Google Scholar.
8 Orenstein, Dara, ‘Foreign-trade zones and the cultural logic of frictionless production’, Radical History Review, 109, 2011, pp. 36–61 Google Scholar; Neveling, Patrick, ‘Free trade zones, export processing zones, special economic zones and global imperial formations 200 BCE to 2015 CE’, in Immanuel Ness and Zak Cope, eds., The Palgrave encyclopedia of imperialism and anti-imperialism, Basingstoke: Palgrave Macmillan, 2015, pp. 1007–1016 Google Scholar; Neveling, Patrick, ‘Export processing zones, special economic zones and the long march of capitalist development policies during the Cold War’, in Leslie James and Elisabeth Leake, eds., Decolonization and the Cold War: negotiating independence, London: Bloomsbury, 2015, pp. 63–84 Google Scholar.
9 See especially Neveling, ‘Export processing zones’.
10 Ibid., p. 75.
11 Levien, Michael, ‘Regimes of dispossession: from steel towns to special economic zones’, Development and Change, 44, 2, 2013 Google Scholar, pp. 381–407; Cross, Jamie, Dream zones: anticipating capitalism and development in India, London: Pluto, 2014 Google Scholar, especially chs. 1–2. Kennedy, Loraine, The politics of economic restructuring in India: economic governance and state spatial rescaling, Abingdon: Routledge, 2013 Google Scholar.
12 Miller, Christopher, ‘From foreign concessions to special economic zones: decolonization and foreign investment in twentieth-century Asia’, in James and Leake, Decolonization and the Cold War, pp. 239–253 Google Scholar.
13 Spatial orders (Raumordnungen) and spatial formats (Raumformate) are terms being developed by the Collaborative Research Centre 1199 ‘Processes of spatialization under the global condition’ at the University of Leipzig, led by Matthias Middell and funded by the German Research Foundation (DFG). Simply put, the terms describe the idea that types of spaces exist/emerge in combination with one another, forming orders.
14 Agnew, John, ‘The territorial trap: the geographical assumptions of international relations theory’, Review of International Political Economy, 1, 1, 1994, pp. 53–80 Google Scholar; Agnew, John, Globalization and sovereignty, Lanham, MD: Rowman & Littlefield, 2009 Google Scholar; Brenner, Neil, ‘Between fixity and motion: accumulation, territorial organization and the historical geography of spatial scales’, Environment and Planning D. Society and Space, 16, 4, 1998 Google Scholar, pp. 459–81; Brenner, Neil, ‘Beyond state-centrism? Space, territoriality, and geographical scale in globalization studies’, Theory and Society, 28, 1, 1999, pp. 39–78 Google Scholar; Brenner, Neil, New state spaces: urban governance and the rescaling of statehood, New York: Oxford University Press, 2004 CrossRefGoogle Scholar; Maier, Charles, ‘Consigning the 20th century to history: alternative narratives for the modern era’, American Historical Review, 105, 3, 2000 CrossRefGoogle Scholar, pp. 807–31; Maier, Charles, Once within borders: territories of power, wealth, and belonging since 1500, Cambridge, MA: Harvard University Press, 2016 Google Scholar; Middell, Matthias and Naumann, Katja, ‘Global history and the spatial turn: from the impact of area studies to the study of critical junctures of globalization’, Journal of Global History, 5, 1, 2010 Google Scholar, pp. 149–70.
15 Brenner, New state spaces; Middell and Naumann, ‘Global history’.
16 See the discussion on ‘global territory’ in Opitz, Sven and Tellmann, Ute, ‘Global territories: zones of economic and legal dis/connectivity’, Distinktion: Scandinavian Journal of Social Theory, 13, 3, 2012, pp. 261–282 Google Scholar. Opitz and Tellmann offer an important analysis of ‘the global’ not as scale but as certain types of relations and their recombinations. See also ‘extrastatecraft’, as discussed in Easterling, Extrastatecraft, ch. 1.
17 Orenstein, ‘Foreign-trade zones’.
18 Ibid., p. 39.
19 Delius, Wolfram, Die Rechtsentwicklung zum heutigen Freihafen Hamburg, Hamburg: Hans Christians Druckerei und Verlag, 1933, p. 43 Google Scholar.
20 Board of Engineers for Rivers and Harbors, War Department and the Bureau of Operations, United States Shipping Board, Foreign trade zones (or free ports), analyzed with special reference to the advisability of their establishment in the United States, Washington, DC, 1929.
21 Miller, ‘Foreign concessions’.
22 Agnew, Globalization and sovereignty, p. 6.
23 Elden, Stuart, The birth of territory, Chicago, IL: University of Chicago Press, 2013 Google Scholar.
24 Maier, Once within borders, p. 42. See also Burbank, Jane and Cooper, Frederick, Empires in world history: power and the politics of difference, Princeton, NJ: Princeton University Press, 2011 Google Scholar.
25 Middell and Naumann, ‘Global history’, pp. 163–6; Geyer, Michael and Bright, Charles, ‘World history in a global age’, American Historical Review, 100, 4, 1995 CrossRefGoogle Scholar, pp. 1034–60; Geyer, Michael and Bright, Charles, ‘Regimes of world order: global integration and the production of difference in twentieth-century world history’, in Jerry H. Bently, Renate Bridenthal, and Anand A. Yang, eds., Interactions: transregional perspectives on world history, Honolulu, HI: University of Hawai‘i Press, 2005, pp. 202–238 Google Scholar.
26 Neveling, ‘Export processing zones’, p. 76.
27 Brookfield, H. C., ‘Ireland and the Atlantic ferry: a study in changing geographical values’, Irish Geography, 3, 2, 1955 Google Scholar, p. 75.
28 Soulsby, J. A., ‘Shannon free airport scheme: a new approach to industrial development’, Scottish Geographical Magazine, 81, 2, 1965 Google Scholar, p. 104.
29 Ibid., p. 108.
30 Bredo, William, Industrial estates: tools for industrialization, International Industrial Development Center, Stanford Research Institute, Glencoe, IL: The Free Press, 1960 Google Scholar.
31 Soulsby, ‘Shannon free airport scheme’, p. 106.
32 Neveling, ‘Export processing zones’.
33 Ibid., p. 76.
34 Soulsby, ‘Shannon free airport scheme’, p. 113.
35 European Commission, Taxation and Customs Union, ‘Free zones in existence and in operation in the Community as notified by the member states to the Commission’, 30 July 2015, http://ec.europa.eu/taxation_customs/sites/taxation/files/resources/documents/customs/procedural_aspects/imports/free_zones/list_freezones.pdf (consulted 24 February 2017).
36 Palan, Offshore world, p. 121.
37 Takeo, Tsuchiya, ‘Free trade zones in Southeast Asia’, Monthly Review, 29, 9, 1978 Google Scholar, pp. 29–41; AMPO: Japan–Asia Quarterly Review, special issue, ed. Tsuchiya Takeo, 8, 4 and 9, 1–2, 1977.
38 Rosen, Making sweatshops, p. 37.
39 Ibid., pp. 35–7.
40 Kenji, Nakano, ‘Japan’s overseas investment patterns and FTZs’, AMPO: Japan–Asia Quarterly Review, 8, 4 and 9, 1–2, 1977 Google Scholar, p. 36.
41 Miyoshi, Masao and Harootunian, H. D., ‘Japan in the world’, in Masao Miyoshi and H. D. Harootunian, eds., Japan in the world, Durham, NC: Duke University Press, 1993, p. 6 Google Scholar.
42 Okita, Saburo, Japan in the world economy, Tokyo: The Japan Foundation, 1975, p. 122 Google Scholar; Kenji, ‘Japan’s overseas investment’, p. 37.
43 Okita, Japan in the world economy, p. 144.
44 Takeo, Tsuchiya, ‘South Korea: Masan – an epitome of the Japan ROK relationship’, AMPO: Japan–Asia Quarterly Review, 8 Google Scholar, 4 and 9, 1–2, 1977, p. 56.
45 Gerlach, Michael L., Alliance capitalism: the social organization of Japanese business, Berkeley, CA: University of California Press, 1992 Google Scholar; Delios, Andrew and Beamish, Paul W., ‘Regional and global strategies of Japanese firms’, Management International Review, 45, 1, 2005 Google Scholar, p. 34.
46 Söderbaum, Fredrik, ‘Formal and informal regionalism’, in Timothy M. Shaw, J. Andrew Grant, and Scarlett Cornelissen, eds., The Ashgate research companion to regionalisms, Farnham: Ashgate, 2011, pp. 51–68 Google Scholar.
47 Kumar, Rajiv, India’s export processing zones, New Delhi: Oxford University Press, 1989, p. 128 Google Scholar.
48 JETRO, ‘“Look West” with the strategic partnership between India and Japan’, September 2013, p. 15, https://www.jetro.go.jp/ext_images/jetro/topics/pdf/1309_topics1_annexion3.pdf (consulted 24 February 2017); ‘Rajasthan to have second Japanese industrial zone’, Business Standard, 8 April 2015, http://www.business-standard.com/article/news-ians/rajasthan-to-have-second-japanese-industrial-zone-115040800931_1.html (consulted 24 February 2017).
49 Most recently, O’Donnell, Mary Ann, Wong, Winnie, and Bach, Jonathan, Learning from Shenzhen: China’s post-Mao experiment from special zone to model city, Chicago, IL: University of Chicago Press, 2017 CrossRefGoogle Scholar.
50 Bach, Jonathan, ‘Modernity and the urban imagination in economic zones’, Theory, Culture & Society, 28, 5, 2011 Google Scholar, pp. 98–122.
51 Orenstein, ‘Foreign-trade zones’, p. 54.
52 Reardon, Lawrence C., ‘The rise and decline of China’s export processing zones’, Journal of Contemporary China, 5, 3, 1996 Google Scholar, pp. 285–90.
53 Crane, George T., The political economy of China’s special economic zones, Armonk, NY: M. E. Sharpe, 1990, p. 27 Google Scholar; Neveling, ‘Free trade zones’, p. 1013.
54 Crane, Political economy, p. 26.
55 Vogel, Ezra F., One step ahead in China: Guangdong under reform, Cambridge, MA: Harvard University Press, 1989, pp. 125–160 Google Scholar.
56 Miller, ‘Foreign concessions’, p. 244.
57 Ong, Aihwa, Neoliberalism as exception, Durham, NC: Duke University Press, 2006, pp. 97–118 Google Scholar.
58 Chen, Xiangming, As borders bend: transnational spaces on the Pacific Rim, Lanham, MD: Lowman & Littlefield Publishers, 2005, pp. 61–106 Google Scholar.
59 Bach, Jonathan, ‘“They come in peasants and leave citizens”: urban villages and the making of Shenzhen, China’, Cultural Anthropology, 25, 3 pp. 421–458 Google Scholar.
60 O’Donnell, Mary Ann, ‘Becoming Hong Kong, razing Baoan, preserving Xin’an: an ethnographic account of urbanization in the Shenzhen Special Economic Zone’, Cultural Studies, 15, 3/4, 2001 Google Scholar, pp. 419–43.
61 Bach, ‘“They come in peasants”’, p. 433.
62 For contingency in planning, see Scott, James C., Seeing like a state: how certain schemes to improve the human condition have failed, New Haven, CT: Yale University Press, 1998 Google Scholar.
63 Lefebvre, Henri, The production of space, Chicago, IL: Blackwell Publishing Limited, 1991 Google Scholar.
64 Dennis, Arnold, ‘Spatial practices and border SEZs in Mekong Southeast Asia’, Geography Compass, 6, 12, 2012 Google Scholar, pp. 740–51.
65 Wang, Jin, ‘The economic impact of special economic zones: evidence from Chinese municipalities’, Journal of Development Economics, 101, C, 2013, p. 136 Google Scholar.
66 For an overview, see Milbert, Isabelle, ‘Building the economy: 1947–1980’, in Christophe Jaffrelot, ed., India since 1950: society, politics, economy and culture, New Delhi: Yatra Books, 2012, pp. 84–104 Google Scholar.
67 Indian Merchants’ Chamber commercial and reference library, Mumbai (henceforth IMC), Resolution no. 64-LW (34)/49, ‘Report of the Export Promotion Committee’, Ministry of Commerce, Government of India, 1949, pp. 126–7.
68 IMC, Letter no. 9-FTA(4)/48, 29 June 1949, from the Ministry of Commerce, Government of India to the Indian Merchants’ Chamber, in Indian Merchants’ Chamber, 1949, Annual Report, p. 414.
69 Central Secretariat Library, New Delhi, India Official Reports, Annual Reports (henceforth CSL, IOR, AR) ‘Report of the Customs Reorganisation Committee 1957–58’, Ministry of Finance, Department of Revenue, Government of India, 1958, p. 69.
70 Orenstein, ‘Foreign-trade zones’, pp. 40–1.
71 CSL, IOR, AR, ‘India ports and shipping statistics 1970’, Ministry of Shipping and Transport, Transport Research Division, Government of India, 1970, p. 50.
72 Engerman, David C., ‘The political power of economic ideas? Foreign economic advisors and Indian planning in the 1950s and 1960s’, in Andreas Hilger and Corinna R. Unger, eds., India in the world since 1947: national and transnational perspectives, Frankfurt am Main: Peter Lang, 2012, pp. 120–135 Google Scholar.
73 IMC, Letter no. 9-FTA(4)/48, 29 June 1949, from the Ministry of Commerce, Government of India to Chamber, in Indian Merchants’ Chamber, 1949, Annual Report.
74 IMC, ‘Report of the Export Promotion Committee’, Ministry of Commerce and Industry, Government of India, 31 August 1957, pp. 47–9.
75 IMC, Resolution no. 64-LW (34)/49, ‘Report of the Export Promotion Committee’, Ministry of Commerce, Government of India, 1949, p. 22.
76 Ibid., pp. 26–7.
77 Abraham, Itty, How India became territorial: foreign policy, diaspora, geopolitics, Stanford, CA: Stanford University Press, 2014 Google Scholar.
78 Framke, Maria, ‘Shopping ideologies for independent India? Taraknath Das’s engagement with Italian fascism and German national socialism’, Itinerario, 40, 1, 2016 Google Scholar, pp. 55–81; Rhett, Maryanne A., ‘Race and imperial ambition: the case of Japan and India after World War I’, in Andrew Tait Jarboe and Richard S. Fogarty, eds., Empires in World War I: shifting frontiers and imperial dynamics in a global conflict, London: I.B. Tauris, 2014, pp. 49–73 Google Scholar.
79 Kennedy, Loraine, ‘Indian federalism: moving towards a more balanced system’, in Jaffrelot, India since 1950, p. 251 Google Scholar.
80 Ibid., p. 258.
81 ‘Blacked out: where The Economist is censored’, The Economist, 21 September 2010, http://www.economist.com/node/17082677 (consulted 17 September 2015).
82 Kennedy, Politics of economic restructuring, p. 18.
83 Goswami, Manu, Producing India: from colonial economy to national space, Chicago, IL: Chicago University Press, 2010 Google Scholar.
84 Abraham, How India became territorial, pp. 31–3.
85 CSL, IOD, AR, ‘Report of the West Coast Major Port Development Committee regarding the possibility of siting a major port on the coast covered by Kathiawar and Cutch’, Ministry of Transport, Government of India, 1949, p. 11.
86 Middell and Naumann, ‘Global history’, p. 162.
87 CSL, IOD, AR, Ministry of Transport, Government of India, 1955–56, Annual Report, p. 10.
88 CSL, IOD, AR, Ministry of Transport and Communications, Government of India, Kandla Port Trust, 1958–59, Administration Report, annexure II; Batra, Satkartar, Port of Kandla: the gateway of northwest India, Adipur, Kutch: Kandla Commercial (Weekly), 1964, p. 48 Google Scholar.
89 IMC, Letter no. 1257, 2 April 1952, from the Indian Merchants’ Chamber to the Government of India, and Letter no. 6-TP(P)(2)/50, 9 May 1951, from the Ministry of Commerce and Industry to the Chamber, in Indian Merchants’ Chamber, Annual Report, 1952, pp. 469–71.
90 Geyer, Michael, ‘Portals of globalization’, in Winfried Eberhard and Christian Lübke, eds., The plurality of Europe: identities and spaces, Leipzig: Leipziger Universitätsverlag, 2010, pp. 509–520 Google Scholar.
91 Cross, Dream zones, pp. 30–5.
92 Nagaiya, D., Industrial estates programme: the Indian experience, Yousufguda, Hyderabad: Small Industry Extension Training Institute, 1971 Google Scholar.
93 Guidelines for the establishment of industrial estates in developing countries, Vienna: UNIDO, 1978, pp. 73–4.
94 Thomas Kelleher, ‘Handbook on export free zones’, UNIDO, 1976. See analysis in Neveling, ‘Export processing zones’.
95 CSL, IOD, AR, Ministry of International Trade, Government of India, 1963–64, Annual Report, p. 9.
96 Kennedy, Politics of economic restructuring, ch. 5.
97 CSL, IOD, AR, Ministry of Transport and Communications, Government of India, Kandla Port Trust, 1964–65, Administration Report, p. 13.
98 Dattatreyulu, M., Export processing zones in India: a case study of Kandla Free Trade Zone, New Delhi: Indian Institute of Foreign Trade, 1990, p. 19 Google Scholar.
99 Vittal, N., ‘Free trade zones and export strategy’, Foreign Trade Review, 12, 3, 1977 Google Scholar, pp. 406–10.
100 Agarwal, Suraj Mal, ‘Electronics in India: past strategies and future possibilities’, World Development, 13, 3, 1985 Google Scholar, p. 284.
101 Vittal, ‘Free trade zones’, p. 413.
102 Abraham, How India became territorial, p. 74.
103 Ibid., pp. 74–5.
104 Ibid., p. 98.
105 British Library, General Reference Collection, Maharashtra Economic Development Council, ‘Report on free-trade zone in Maharashtra’, 1964, reprinted 1970, p. 10.
106 Kumar, India’s export processing zones, p. 42.
107 Ibid., p. 125.
108 Ibid.
109 Ibid., p. 129.
110 Ibid., pp. 128–9.
111 Ibid., pp. 125–8.
112 IMC, ‘Memorandum on export strategy during 1980’s: submitted to Tandon Committee’, in Indian Merchants’ Chamber, 1979, Annual Report, appendix 65, p. 311.
113 Neveling, Patrick, ‘Structural contingencies and untimely coincidences in the making of neoliberal India: the Kandla Free Trade Zone, 1965–91’, Contributions to Indian Sociology, 48, 1, 2014 Google Scholar, pp. 17–43.
114 Dattatreyulu, Export processing zones, pp. 20, 29–34.
115 Neveling, ‘Structural contingencies’.
116 Kumar, India’s export processing zones, pp. 99–100.
117 Aggarwal, Aradhna, Social and economic impact of SEZs in India, New Delhi: Oxford University Press, 2012, pp. 64–65 Google Scholar.
118 Kelleher, ‘Handbook on export free zones’, p. 42.
119 Ibid., pp. 16, 18, 70.
120 Dattatreyulu, Export processing zones, pp. 14–17.
121 CSL, IOR, AR, Ministry of Shipping, Government of India, Kandla Port Trust, 1978, Administration Report, p. 22; CSL, IOR, Ministry of Commerce and Industry, Government of India, ‘Problems hindering the growth of KFTZ’, Report of the committee appointed under the chairmanship of Shri P. K. Kaul, 1978.
122 CSL, IOR, Ministry of Steel, Mines & Coal, Government of India, ‘Report of the review committee on electronics’, 30 September 1979.
123 ‘Committee on export strategy 1980s’, New Delhi: Ministry of Commerce, Government of India, 1980, in Committees and Commissions in India 1979, 17, B, compiled by Virendra Kumar, New Delhi: Concept Publishing Company, 1994, pp. 437–73.
124 ‘Report of the review committee on electronics’, 30 September 1979; ‘Committee on export strategy 1980s’, pp. 449–51.
125 IMC, Indian Merchants’ Chamber, 1984, Annual Report, p. 155.
126 Ibid.
127 ‘Report of the review committee on electronics’, pp. 156–9.
128 Kelleher, ‘Handbook on export free zones’, p. 41.
129 Kumar, India’s export processing zones, p. 116.
130 Ghorude, K. N., ‘Labour in export processing zones: the case of SEEPZ, Mumbai’, Indian Journal of Labour Economics, 47, 4, 2004 Google Scholar, p. 1099.
131 Dattatreyulu, Export processing zones, p. 19.
132 United Nations Conference on Trade and Development, Export processing free zones in developing countries: implications for trade and industrialization policies, Geneva: United Nations, 1985Google Scholar.
133 Middell and Naumann, ‘Global history’.
134 Kennedy, Politics of economic restructuring, ch. 5.
135 Maier, Once within borders.