Communities under stress: Trade liberalization and development of shrimp aquaculture in Orissa Coast, India

The past two decades have witnessed a growing number of developing countries adopting trade liberalization initiatives to integrate more fully with the global economy. One of the main outcomes of this development was the promotion of high value food products. Growth of brackish water shrimp farms in the coastal areas is one of the prime examples of this export-driven production system. Although the development has resulted many positive impacts including generating income and employment opportunities for the rural poor, it has raised serious concerns over the accompanying social, economic and environmental impacts occurred upon the coastal communities.; India liberalized its economy in the early nineties with an objective to achieve higher economic growth so as to combat poverty. Emphasis was given on the production of export oriented high value commodities that have demand in the international market. The underlying conditions of poverty, rapid population growth and aspirations of the young people towards non-agricultural pursuits, however, intensified the pressure to choose short-term economic gains over long-term resource management strategies. Development of shrimp aquaculture along the coasts received high priority in the national agenda as a drive to increase the country's foreign currency reserve. Although the development has brought significant amount of foreign currency to the national economy, at the local level it has disrupted the livelihoods of the rural communities and altered the coastal environment.; This study addresses the consequences of the transformation of the rural economy as a result of trade liberalization in India. It examines the social, economic and environmental impacts that have been generated upon the rural communities in Chandabali block after the introduction of industrial shrimp farming. To achieve the research objectives, a 'multiple methods approach' comprising document review, key informant interviews, household surveys and group discussions has been adopted. After discussing the main findings of this study, several recommendations were offered at the end to help improve the role of shrimp farming in rural development.; The findings of this study suggest that macro level policies such as trade liberalization initiatives may be useful in some respect at the national level, but at the local level it can generate imbalance growth. There is a need to formulate appropriate policy guidelines at the national level and establish sufficient institutions at the local level to monitor the development activities. (Abstract shortened by UMI.)...