This research aims to analyze the characteristics, potential, major projects and policies of Latin America’s plant construction industry and to suggest plans for broadening Korean participation. Especially, specific aspects of investment activities by foreign firms, such as financing methods, are studied in detail to render practical assistance for Korean enterprises.
This report consists of six (6) chapters. Following the introduction, chapter two conducts an in-depth analysis of five (5) sectors: plant construction industry power, petrochemical, refinery, water supply and sewage, and offshore structures. In addition, characteristics of plant construction industries in major seven (7) countries - Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela - are included. The final chapter is a forecast of the development of Latin America’s plant construction industry based on data from international organizations and consulting firms. The results there state that the Latin American market will grow by 13.1% annually in the coming 5 years (2010-2014). Particularly, Argentina will be the fastest growing market followed by Colombia, Mexico and Peru. According to the empirical test, the average annual growth rate of major Latin American countries between 2008 and 2020 will be as follows: 7.1% in Peru, 6.3% in Chile, 4.5% in Mexico and Brazil and 3.5% in Argentina.
Chapter three outlines the background for the government’s ambitious agendas for the development of the plant construction industry and the main projects in each Latin American country. The rapid expansion of the Latin American market in this sector is derived from △stable economic growth △improved fiscal soundness and expanded government finance △increased need for infrastructure development △promotion of higher-value-added industrialization with natural resources. The major Latin American countries have planned and implemented government-led infrastructure development such as National Infrastructure Development Plan (PNI) in Mexico, the 1st and the 2nd Growth Acceleration Plan (PAC-1, PAC-2) in Brazil, Territorial Strategic Plan (PET) in Argentina, territorial development plan in Colombia and etc.
Chapter four examines the cases of how corporations from developed countries invested in Latin America’s plant construction market and draws implications for Korean firms, first by describing recent trends and characteristics of investment activity by global companies. The strategies of leading investors; including corporations from Italy, Spain and Japan, are analyzed in detail. Financing methods employed by major global and Korean firms receive special attention and are closely examined, eliciting implications for Korea.
Chapter five concerns the trend in investment activities of Korean firms and challenges in the world plant construction market, including Latin America. The difficulties of investment are presented, based on the survey of Korean firms that already invested or intend to invest in Latin America. They point out that the main obstacle involve language, which hinders the easy access to information and the paperwork, in addition to the demand for the greater use of local contents, and difficulty in financing due to the high country risks in Latin America.
Lastly, chapter six proposes ways to expand Korea’s participation in Latin America’s plant construction market at the firm level and the measures as to how the Korean government can support such activities. Some of the ways that can be employed by firms include △strategic alliance with local or global companies △a ‘Hub & Spoke’ strategy which selects a base country followed by diversification of investment into nearby countries, utilizing the cultural and linguistic proximity of Latin America △expansion of the network in Latin America by establishing the chamber of commerce and cooperation with related institutions △localization △entering the Latin American market by constructing the Korean firm’s local manufacturing plant followed by diversification, such as the acquisition of shares of local firms, M&A and targeting PPP projects and etc. In connection, various financing methods are suggested: utilizing Korean development banks, Economic Development Cooperation Fund (EDCF) of the Korea Export and Import Bank, multilateral development banks such as the Inter American Development Bank (IDB) and a local development bank such as the Brazilian Development Bank (BNDES). At the government level, the following plans are proposed: △support for financing from Inter American Development Bank (IDB) △expand financing by the Economic Development Cooperation Fund (EDCF) and the Global Infrastructure Fund △establishment of labor database which systemically manages the work force for the plant construction industry in Latin America △signing FTAs with giant economies such as Brazil and Mexico which discriminates non-FTA signing country △building institutional infrastructure such as the Investment Protection Agreement and the Double Tax Avoidance Agreement △raising awareness of Korea and improving its image among locals through such activities as spreading of Korean Culture, holding the Korea Digital Festival, etc △linking Corporate Social Responsibility (CSR), Official Development Assistance (ODA) and Knowledge Sharing Program (KSP) together, and △establishment of the Brazil Business Center to find investment opportunity in plant construction market in Brazil and to provide necessary support.

The Korean-Russian economic relations began 20 years ago in 1990, when the diplomatic relations were established between the two countries. The Korea-Russia Far Eastern economic cooperation is one of the most important components of this history. Therefore, it would be meaningful analyze the 20 years of economic relations between Korea and Russian Far East in this context, and seek out mid-/long-term visions and action plans. Therefore, the purpose of this study is to suggest ways to push ahead with new cooperation projects on the basis of 20 years of bilateral cooperation and to greatly expand it.
This report consists of 6 chapters, opening with the introduction (chapter 1), followed by an overview and evaluation of the Federal Target Program “Economic and Social Development of the Far East and Transbaikalia until 2013” (2013 Program) and “Strategy for Socio-Economic Development of the Far East and the Baikal Region until 2025” (2025 Strategy) in Chapter 2. Also, the report outlines their accomplishments and limits, and shows policy implications of long-term development strategies for the Russian Far East. As the 2013 Program and the 2025 Strategy have secured much budget funding, and given the government's higher will to implement the strategy compared to past regional development programs, most of the projects specified and targeted in the two plans will likely be realized. Thus, the Republic of Korea should create a strategy to enter the Russian Far East, based on the “2025 Strategy”, which will be implemented in three stages.
Chapter 3 analyzes trade and investment relations of the Russian Far East with China, Japan, US, and EU; an issue just as meaningful and important for the Korean government in establishing its visions for entry into the Russian Far East and for its mid-/long-term cooperation strategy. This analysis shows that Northeast Asian countries are major trade partners and EU is an important investor for the Russian Far East. Also, we can elicit important implications for the Korean government, that is, for institutionalization of regular intergovernmental channels as well as establishing close private exchange. For instance, China is pushing for deeper cooperation with the Russian Far East in government, while the US and EU have drawn up the framework of cooperation in government while promoting practical cooperation in the private sector.
In Chapter 4, this study makes a comprehensive analysis of the business climate in the Russian Far East through surveys and interviews with local companies including Korean, Russian, and other countries. In particular, we examine the business performance of companies that entered the Russian Far East and their future business management strategies, and then suggest various and effective countermeasures to cope with the rapidly changing situation. According to the results of the analysis of the business climate of the Russian Far East, high production cost is the most serious problem for companies. Second most serious involves infrastructure–problems with electricity, water supply, transportation, and collection of payments have been pointed out. In addition, companies are being made to suffer administrative barriers such as bureaucratic red-tape. Yet many companies that have made inroads into the Russian Far East have taken various measures in response.
Chapter 5 assesses the accomplishments as a result of economic cooperation between Korea and the Russian Far East for the past 20 years in trade, investment, energy resources, and other sectors. Based on the results, we show the mid-/long-term vision for bilateral economic cooperation. Moreover, we evaluate the climate for economic cooperation between the two for the medium and long term, taking into consideration development strategies of the Russian government (Chapter 2), assessment of accomplishments from economic cooperation between the Russian Far East and major partner countries (Chapter 3), analysis of the business climate in the Russian Far East (Chapter 4), and evaluation of economic cooperation between Korea and the Russian Far east (Chapter 5. 1). This study reveals that there are several policy areas in cooperation; for instance, development of resources and energy, inter-industry cooperation to provide support for industry diversification, infrastructure development, and export market expansion; in the mid-/long-term vision of economic cooperation with the Russian Far East. Moreover, the study shows additional strategies for executing it successfully, such as a ‘package deal’ including high-tech cooperation(IT), the cross investment in both the upstream and downstream sectors, provision of advice based on Korea’s past industrialization experience and utilization of manufacturing competitiveness, etc. Also, these policies should be established and implemented in accordance with long-term regional development strategies being carried out by the Russian government, such as the “2025 strategy”.
As such, Korea should expand participation in the regional development of the Russian Far East and promote investment in the region. The factors that should be considered for that purpose are as follows: (ⅰ) active participation in transportation infrastructure projects; (ⅱ) to seek actively various ways to participate in the telecommunication infrastructure development and industrial modernization of the Russian Far East and East Siberia, along with regional telecommunication service projects; (ⅲ) promote energy resources cooperation; (ⅳ) to be involved in the construction of a petrochemical complex and port terminals in the region; (ⅴ) to push ahead with multilateral cooperation projects in the Far East; (ⅵ) take into consideration the high possibility of Korea-Russia FTA conclusions, which will be pivotal in Russia’s entry into the Northeast Asian economic block; (ⅶ) to utilize the “Korea Investment Fund” to support active investment and entry of Korean firm into the Russian Far East; (ⅷ) to maintain close relationships with local governments for a practical cooperation results. In addition, it is desirable that Korea and Russia prioritize existing and potential cooperation projects through maintenance of productive relationships in the “Far Eastern Siberian Subcommittee between Korea and Russia” and “Korea-Russia Dialogue: KRD” and establish the “Korea-Russia Far East Cooperation Program”, with a specific project schedule and implementation plans.

 
 
Before the Eurozone debt crisis in 2010, the 10 years’ operation of the Eurozone has been evaluated to be a success. Since the launching of the single currency, euro in 1999, the economic stability of the Eurozone has been enhanced. During the economic recession around 2001, the financial sector of the Eurozone was relatively less problematic than the other countries. In addition, the current value of euro has risen within a decade. However, as the global financial crisis began in autumn 2008 and the global economy was in severe recession from the following winter, the Eurozone had to face the difficulty. During the first half of 2009, the Irish financial and fiscal status was at a dangerous stage and in early 2010 the Greek fiscal crisis even aroused doubt in the sustainability of the Eurozone. Consequently, Greece became the first Eurozone member to request for bailout funds, followed by Ireland, who once had been praised as the ‘Celtic tiger.’ These incidents gave rise to such scepticisms that it is difficult to sustain monetary integration amongst countries with distinct economic status.
This study reviewed the progress and the structural problems of the Eurozone. Chapter 2 looked through the historical process on the establishment of the Eurozone. The Eurozone should be estimated as a part of the 30 year’s long European integration, which is represented by the policy coordination for a single market and a single currency. Monetary integration is a natural outcome in order to secure the stability of exchange rate after the establishment of a single internal market. European monetary integration was possible only after intense negotiations between the member countries including the adoption of the Werner report in 1970 and the Snake system in 1972. Therefore, Chapter 2 discussed the roadmap to the adoption of euro and then reviewed the political stance of the countries which has not yet joined the Eurozone.
Chapter 3 focused on the optimum currency area (OCA) theory to determine the adequacy of forming an economic and monetary union (EMU). It cannot be denied that early OCA theory, of which concentrated more in its characteristics, had not been reflected in the actual European monetary integration. However, after 1990s, the OCA theory had its focus more on the advantages and costs that enabled providing further policy implications. Vigorous discussions on endogenous OCA allowed legitimacy in establishing an EMU. Despite the dominant opinions that the Eurozone did not fulfil the OCA criteria upon its establishment, the policy objectives of the member countries have developed to converge into the OCA criteria.
Chapter 4 analyzed the performance of euro in various areas, such as macroeconomic policy, trade and investment, labour and financial market and euro’s status as key currency. Euro has shown remarkable performances, though it has had some limits as a single currency. Euro has contributed considerably to convergence of inflation which had differed from country to country and to reducing interest rate. This has exerted positive influence on new investment and creating job, which had led to overall positive effect on European economies. After adopting euro, Eurozone members have had more trade and investment not only between them but also with non Eurozone countries. As national financial markets have become more integrated into the single European financial market, financial activities have become more efficient and protected from market fluctuation. Against this background, euro’s status has been enhanced in international economies as a key currency competing with US dollar.
Chapter 5 examined sovereign debt crisis in Southern European countries in 2010 and structural weakness of Eurozone as EMU. The debt crisis attributes to excessive budget deficit and government debt and chronic deficit in current account, but it is undoubtedly related to structural problems of Eurozone. By joining Eurozone, ‘peripheral’ countries in Eurozone have benefited from low cost of borrowing in international financial market. However, this benefit turned into bubble economies and excessive debt, because they could attract more capital than their economic fundamentals can support. The budgetary discipline based on Stability and Growth Pact (SGP) has been often neglected, not only by peripheral countries, but also by major economies such as Germany and France. This made European economies more vulnerable to external asymmetric shock and in consequence, they began to lose market confidence during the global economic recession. As a response to this rising problem, Eurozone members agreed to create the European Financial Stability Facility (EFCF) which can be used to support debt rescheduling of debt-ridden members.
Chapter 6 discussed EU’s policy response to Eurozone crisis and tried to withdraw policy implication for monetary cooperation in East Asia. Since the debt crisis in 2010, the EU has been reforming its economic governance system in the direction of reinforcing budgetary discipline rather than fiscal integration. This overhaul is hardly landmark decision but it represents a range of reforms that the EU has pushed for since early 2000. However, it is noteworthy that the EU begins to focus on external imbalance among its members and seek the method to correct it. The debt crisis has made more difficult the joining of the Central and Eastern European countries (CEEC) into the Eurozone. In East Asia, there have been a lot of researches on how East Asian countries can benchmark the European monetary integration for their own monetary integration and cooperation. The debt crisis of the Eurozone revealed that it is very difficult to form and maintain the monetary union between countries with disparate economic structure and policy preference.
It is expected that the economic governance of the Eurozone will develop into two complementary directions. First, there will be efforts to reduce the disparity in budgetary and external balances between member countries. The ongoing reforms, such as ‘European Semester’ and tightened budgetary control based on SGP are the examples. Secondly, it is expected that the EU will introduce more ‘institutionalized’ risk management system in its economic governance. In historical perspective, when the European integration process encounter economic and political crisis, efforts have been made in the direction of increasing degree of its integration in most of cases. If Eurozone members agree to overcome the pessimistic perspective for the future of euro, it is expected that the next steps will be in expanding the EFSF and increasing effectiveness of the SGP.

 Regional trade among Korea, China and Japan has been increasing and their economic relationship has become more intimate as a result, which implies a deepening economic integration in progress among the three countries. However, the weight of their mutual intra-regional investment is very low as a proportion of their total foreign investment, meaning a strengthening of mutual, intra-regional investment among the three countries is indispensable, as it will help them to overcome differences in their political systems and integrate from the base production level up. In this study, FDI policies and current FDI status of Korea, China and Japan; especially mutual intra-regional investment among the three countries; are examined and obstacles to such investment are identified. Then, various policy suggestions for promoting mutual intra-regional investment are proposed.
The following are the summary of the FDI status of the three countries. First, China has been more actively engaged in FDI than Korea and Japan. Second, while China and Japan are actively utilizing an M&A type of FDI, Korea still focuses on the greenfield type. Third, North America is the main FDI target area for all three countries. While a relatively higher proportion of Korea FDI is geared toward China, China and Japan's FDI weight is tilted heavily toward Western Europe. Fourth, being the latecomer, China has the fastest FDI growth rate among the three countries. Furthermore, most of the mutual intra-regional investment among three countries is targeted for China while FDI to the other two has stayed at a very low level.

In today's international relations, there seem to be less wars and conflicts caused by ideological differences and confrontations in the past cold war system. Another new form of conflicts and confrontations mostly deriving from ethnic, tribal, and religious diversities within a boundary of each individual nation-state. There seems to be no exception with most of the Southeast Asian countries - except for Thailand - which shared a bitter experience of cruel colonial rule by Western powers. They also have serious internal problems such as intra-national conflicts based upon their own ethnic, religious, historical and economic peculiarities and diversities and increasing demands from separatist movement groups. In particular, the international community suspects that some of specific regional conflicts and separatist movements recently escalating in part of the Southeast Asian countries have kept a close connection with trans-national terrorist activities since the 9․11 terrorist attack occurred at the heart of the U.S. territory. Thus, members of the international community have tried to search various solutions to solve conflictual problems of these nations in the intra-national level as well as in the international and inter-regional level.
If so, what basically caused such separatist movement and regional conflicts occurring within these Southeast Asian countries? How have they developed historically? How have the ASEAN as a body for regional cooperation treated those impending problems and what is wrong with its treatment? What sort of role have the ASEAN been playing for controling and managing those problems? What are relevant alternatives that ASEAN finally chose to overcome such problems? Dealing with those questions, this study in a comprehensive scale analyzes separatist movement and regional conflicts occurring in the Aceh region of Indonesia, southern border of Thailand, southern area of the Philippines. By doing so, it will try to explore the historical background and evolving process and to find a way of managing and solving problems in a regional dimension. It will also make an effort to propose political and diplomatic implications that separatist movement and regional conflicts in the Southeast Asian region provides for Korea.
In reality, conflict is a phenomena in which a certain group consciously or unconsciously confronts with at least one or more groups by pursuing some goals incompatible with one another and thus both groups' interest and ideological identity collide. In particular it seems to be very important the way of solving and managing conflicts and confrontations between minority and majority in a nation-building process in which the import of nation building and state integration are often considered primary that means the integration of intra-national heterogeneity and the establishment of national identity as a nation state. Southeast Asian separatist movement and regional conflicts have considerably long historical backgrounds, seems to be never ended and very escalating, and repetition of dramatic violence and potential conflicts. As a result, not only domestic actors or contracting parties in conflict but also ASEAN who can play an important role as a regional cooperative body need to make more aggressive effort for intervention and mediation.
In Indonesia, one of the largest multi-ethnic nations among Southeast Asian countries, separatist movement began to take off since people Aceh, Papua, Maluku protested in opposition to Indonesia's declaration of independence in 1945. In particular, Aceh area had long been ruled by small-scale kingdoms and incessantly campaigned the resistance movement against Dutch colonialism. It had announced the independence of Negara Bagian Aceh(NBA) under the Islamic law, 'Sharia,' and launched its resistance movement against Indonesian government when Indonesian government declared Indonesia's subjugation of Aceh after its independence from Netherlands. Acehnese people led by Gerakan Aceh Merdeka (GAM) began to start armed protest against central government when central government began to discriminate Aceh in economic distribution by buckling to natural gas exploitation business since 1974. However, Indonesian government brutally repressed Aceh separatist movement by taking a massive military operation in opposition to Aceh separatist movement. Especially the bloody suppression of Indonesian military against Aceh separatist movement in the 1998 democratization process was heavily criticized by international society since it costed numerous toll of dead and injured.
Though Kingdom of Thailand had never been colonized by Western powers until the end of the World War II, it does not necessarily mean that Thailand could easily and peacefully establish its modern form of nation-state. There existed numerous problems including the problem of ethnic minority and communist anti-government guerilla movement in its Northern mountain area, problems with ethnic discrimination and identity of Isanese people in its Northeast area, Islamic separatist movement in its Southern border area. In particular, Islamic separatist movement in its Southern border area started with the domination of contemporary Chakri dynasty since this area was by force amalgamated since the period of Kingdom of Sukhothai. From the 1930's, Pan-Thai nationalism began to be reinforced and thus Islamic identity in Southern border area was in peril. People in those areas launched their own resistance campaign against compulsory and violent integration policy undertaken by central government. They claimed Islamic law, Sharia-based separatism since the 1960's and organized Barisan Nasional Pembebasan Patani (BNPP) and Pattani United Liberation Organization (PULO) in order to commit armed protest. Central government responded to their armed protests with powerful and brutal military repression. Separatist movements in these areas began to be toned down when Thai government adopted flexible engagement policy with the advent of the semi-democracy period in the 1980's. However, Thai nationalism once again reinforced when Thai Rak Thai Party and prime minister Thaksin seized power in 2001. Especially international community began to criticize again the Thai government immediately after Thai government brutally crashed a series of violent uprisings in southern border areas and caused large-scale or small-scale casualties.
The Philippines has also experienced some separatist movements such as communist guerilla activities in northern mountain area and separatist movement in southern Islamic area since its establishment of independent nation state in 1946. In particular, Islamic separatist movement in southern area was closely related to various resistance activities for the protection of Islamic identity based upon Sharia, which is Islamic law, since the past Spanish and American colonial rule. Such separatist movement began to spread out when central government decided to reinforce immigration policy for outsiders in pursuit of national integration. Muslim Independence Movement that began to be wider spreaded with the event of ‘Jabidah’ stared its armed protest by organizing Moro National Liberation Front (MNLF) when F. E. Marcos tightened his authoritarian rule. It was once momentarily stopped when the peace agreement that allowed Autonomous Region of Muslim Mindanao (ARMM) was signed. However, Moro Islam Liberation Front (MILF) and Abu Sayyaf continued fighting against central government and thus separatist conflicts has lasted so far. In particular, the Philippine government stipulated their movements as terrorist activities and has been proceeding coalitional operations with the U.S. miliary since the 9.11 terrorist attack against the U.S. in 2001 and thus such a hard-line policy caused innocent casualties and serious violations of human rights in those areas.
Though large- and small-scale separatist movements and regional conflicts had been proliferated in the Southeast Asian region, ASEAN has yet taken a substantive humanitarian intervention policy or mediatory effort in order to manage human rights problems and conflict resolution. it results not only from a unique ‘ASEAN’ way of decision-making and non-intervention principle over domestic issues among member states, but also from the peculiarity of Southeast Asian countries that each country sensitively react with sovereignty-related matters. The weakness of the degree of institutionalization and the absence of compelling force not only cause intra-regional separatist movements and regional conflicts but also regional cooperation and integration among and between ASEAN member states in various issue domains. However, ASEAN recently began to change its policy from non-intervention principle to 'constructive intervention' or 'flexible engagement' over domestic issues. In particular, various types of intra-regional civic organizations started to reinforce the so-called 'engagement as the second track' in conjunction with human rights issue, human security, or regional development issue after intra-regional economic cooperations precipitously increased by ASEAN Free Trade Agreement.
As a consequence, a mission for the resolution of all the problems caused by separatist movements and regional conflicts in Southeast Asian countries and the establishment of intra-regional peace and stability in the dimension of conflict management become a preliminary mission for new regional cooperation between ASEAN and East Asian countries. In particular, since Southeast Asian countries tend to avoid intervention and coordination committed by superpower or external power because most of separatist movements and regional conflicts in Southeast Asian region was derived from their historical peculiarities inherited from their bitter experience of colonial rule in the past, mediation and coordination by the third-party country like Korea that shared same historical experience could be more effective. Korea has reinforced economic exchange and cooperation with Southeast Asian countries since the approval of 'Korea-ASEAN Free Trade Agreement' in 2007. Considering the 'New Asia Plan' announced by Korean government in 2009, Southeast Asian region was regarded as top-priority region in its policy-making. Therefore, based upon Korean experiences of economic development and conflict management as a divided nation, and the recent expansion of ODA (Official Development Asistace), Korea must actively participate in all the activities for relieving regional conflicts and reinforcing regional cooperations in Southeast Asian region.

This study aims to identify problems in special economy zones (hereafter SEZs) in India based on the concept of sustainable development and provide suggestions to decision makers in business organizations and public administrators. More specifically, unlike prior studies that approach the SEZs on the basis of economic and statistic indices, this study investigates various situations occurring in the SEZs based on the reactions of residents in the areas.
India started inviting foreign investment via trade liberalization. Particularly, India was the first country that recognized the necessity of free trade zones and implemented them. After the implementation of the zones, India tried to further strengthen their competencies by transforming free trade zones to SEZs. However, as India found such various problems in the SEZs as land deprivation and unequal wealth distribution, it has revised the ordinances related to SEZs several times. These problems are derived from companies committed to the SEZs and over-reliance on private investments. Furthermore, Indian policy makers have become questionable to the efficacy of SEZs since tax reductions and exemptions have found to reduce tax revenue of local governments.
Other than the issues pertaining to economics, the problems in SEZs are also related to political realities and conflicts among Indian political parties. For instance, India government based on INC (India National Congress) and BJP (Bharatiya Janata Party) have buttressed the SEZs in India while CPI (Communist Party of India), RSP (Revolutionary Socialist Party), and FB (Forward Block) criticized the SEZs for protection of laborers and farmers’ authorities. More recently, however, due to the aforementioned problems, many politicians in different parties have commonly raised the questions regarding the effectiveness of SEZs.
Recognizing complex natures associated with problems in SEZs, we investigated SEZs and their problems based on the concepts of sustainable development. Since WCED (World Commission on Environment and Development) initially announced the concept of sustainable development in 1987, researchers and practitioners have expanded the concept mainly into the three areas: economic, societal, and environmental sustainability. In this study, we introduced the three types of sustainability, and employed them as lenses to view the problems of SEZs in India. In addition, we sought to the relationships among the three types of sustainability.
We adopted qualitative research methods. The method focuses on the how people related to research topics perceive, behave, and experience. It can also help researchers in depth understand research topics. In this study, we employed an interpretative research method of qualitative research methods, which can help researchers identify Indians’ reactions to the SEZs based on Indians’ perspectives. Following the qualitative study guidelines, we had a seminar at Tata Institute of Social Science and interviewed several people in India. The results indicate that failures in environmental and economic sustainability are likely to influence social sustainability, which in turn leads Indian to be suspicious of the efficacy of SEZs. In addition, other factors such as a lack of political consensus and a threat to Indian sovereignty can also effect on the efficacy of SEZs. Based on these findings, this study provides several suggestions to Korean business practitioners who plan to start business in SEZs in India and Korean policy administrators who design SEZs in Korea.

Who is Indian? A realm of Indian’s spirit focused on the Yogaśāstra
What makes their identity? Is it a sentiment of religion? Or is it a social stratum which is representative of Caste?
We can hear the India of today through the media that they convey the economic growth by contrast with the poverty, or introduce the religious spiritual by contrast with the affluent material.
Now is the time for us to observe their culture by the balanced sense in their side.
In Indian society they follow the traditional principle on the other hand we can find out their devotion that they fulfil their dharma and rights both family and their community.
It is not possible to understand this point of view without a source of perception of Indian.
This book is for the companies which want to find their way to India and governments which want to cooperate with them. Because it offers a key to them to understand spirit of Indian.

This study analyzes the historical transformation of Indian industrial development strategies in terms of structural characteristics of Indian economic governance. Especially, government-business relations of Indian economic governance are examined in detail based on five standards to determine the relations: conclusiveness, information sharing, trust, transparency, bureaucratic discretion. Further, local governments' authorities, functions, and roles within the Indian economic governance, in addition to those of federal government and businesses, are also researched with regard to their interactions for economic policy-making. Besides, several factors to affect the governance such as industrial types and specific policy areas are considered so as to minimize possible biases. This study shows that Indian economic reform has been significantly affected by government-led economic development plans, though Indian government has accentuated neoliberal economic policies. In other words, two distinctive and conflicting policy ideas have been dominant simultaneously in deciding Indian economic development strategies. The most critical reason for this phenomenon is highly localized and multi-layered political system of India. The complicatedly tangled interest battles of the country over industrial policies have hindered consistent policy implementation as well as have caused serious (re)distributional problems. Moreover, strong socialistic tradition and remarkable political power of lower income groups have exacerbated situations in accelerating neoliberal schemes. As a result, Indian economic reforms have swung between governmental intervention and marketization, rather than have been totally based on neoliberal ideology.

This study examines the self-perceptions of communities in India. Focusing on a number of communities including the familial, village, merchant, religious and cyber communities, we investigate the traditional foundations of each community, and current changes. In "Traditional Perceptions of Community in India," the second chapter, we discuss the key concepts and the rise of communities in India. In the third chapter, we examine representative communities of India. Among the numerous communities, we discuss specific examples of the family, a merchant community, the panchayat and village communities, and religious communities. We focus on the present in the fourth chapter. Among the aforementioned communities, we examine the temple community, a community with which most Indians are associated in one way or another, and how the temple community has been transformed through a period of industrialization and urbanization. We also investigate a newly rising notion of community, i.e. the notion of cyber communities in this chapter. With the advance of information technology (IT), new cyber communities have been rising in India, and we examine the development in chapter 4. In the final chapter we summarize the significant points of our study.
The self-perceptions of Indians’ communities are based on the social concept of dharma, i.e. the varna dharma. Such communities can be found in various sizes, staring from the family, the smallest community, to the village and nation. According to its function, each community may be differentiated as a merchant guild or a religious community. The social position of each individual, represented by their caste, also forms an integral part of a social community when viewed together.
Among the representative communities of India we may count the family, the panchayat and village communities, merchant communities, and religious communities. The traditional Indian family is a joint family, in which several generations of brothers join each other to form a community within the same household. Members of the joint family share the responsibility for their ancestors as well as the familial wealth, which leads to strong ties among the members. The family also provides practical benefits for each individual member.
Among many merchant communities, this study focuses on the Marwaris of Rajasthan. The Marwaris are considered as one of the most successful merchant communities in India, based on strong family ties, assertive and practical marketing, thorough localization, reputation for honesty and industriousness based on family culture, and cooperation among Marwari communities. Marwaris provided a new role model for Indian merchant communities, especially within the modern economical system of India.
While the self-perception of village communities has been comparatively weak in India due to the strong self-perception of familial and caste communities, the traditional jajmani system and panchayat have been crucial in preserving village communities. The panchayat system was legalized according to the 73rd constitutional revision (1993), leading to the rise of the ‘Panchayat Raj,’ a symbol of the decentralization and mass participation found in Indian politics. Whether the panchayat raj will mature the Indian village into a democratic community will be a significant issue of contemporary Indian society.
The traditional religious communities of India can be divided into Hindu, Muslim, Sikh, Jain, and other minor religious communities. The self-perception of Hindu communities surfaced during the modern Hindu renaissance, which also lead to the rise of Hindu nationalism. The RSS (Rashtriya Swayamsevak Sangh: National Volunteer Organization) or the VHP (Vishva Hindu Parishad: World Hindu Council) are political groups representative of such Hindu nationalist viewpoints, and have been responsible for many communal upsets and events. With the support of such groups, the BJP (Bharatiya Janata Party), a right-wing Hindu nationalist party, was able to hold power from 1998 to 2004. Hindu nationalism has been charged with the rise of communalism in India, leading dissensions with other religious communities and threatening the secularism propagated in the Indian constitution at the time of Independence.
When India and Pakistan were divided according to religion, many Muslims remained in India and their number is now more than 150 million. However, many experience a loss of religious identity and community, as well as suffering from economic hardships and lack of political influence. With the rise of Hindu right-wing political pressure and unseen threats, both real and imagined, many Muslim communities are anxious to build a self-perception of their own religious community in spite of the lack of physical and material security.
The self-perception of the Sikh community was formed during the religious persecutions of the Mughal Empire. In addition, the controversy between Sikhs and Hindus on the notion of shuddhi (purification) resulted in a rise of the Sikh self-perception. In the 1980s the Sikh community sought an independent state through the Khalistan movement. Nowadays they seem to be more focused on religious movements rather than political positions.
The Jain community has maintained its social status through its economic role in Indian society. Due to their belief in ahiṃsa, Jains have long been involved in commerce and finances, and thus have formed their own self-perceptions of community through the lineages of teachers, one’s hometown or caste, areas or categories of business and the credit relationship formed by such businesses, and pilgrimage. Especially from the 19th century onwards, we can witness the rise of religious identity as a Jain, differentiated from Hindus.
These communities have been undergoing many changes during the modern and contemporary period. Among many communities, we examine the temple communities and cyber communities in this study. For most Indians, the temple community serves as a critical component of their lives, not only in the religious sense but also within the social and political arena. Each temple community possesses different characteristics due to the difference in the role of the constituents and the relationship among the constituents; the most significant constituents are the clergy, the lay believers, and the management committee. The self-perception of a temple community is expressed through participation in religious rites as well as charitable acts, education, social and political activities. In general, the management, which is usually run by a committee, is most active in building the self-perception of a temple community.
Currently, the temple communities of India, especially those of urban areas, display many changes from the traditional temple community in their outward appearances, management, and economic status. One of the most significant changes is found in the role of the clergy, in particular the role of the Hindu priest of the Hindu temple community. While the priest occupied a considerable role in the formation of a religious community as well as the management of a temple, this role has now been usurped by the management committee in the contemporary temple community. As a result, the judiciary role, based on the religious authority of the priest found in traditional and/or rural communities, has now become miniscule. As an employee of the temple, the priest does not play as significant a role as the members of the management committee, who now organize charitable activities, volunteering, cultural and sometimes political events.
With the computerization enabled by the rapid increase of users as well as the spread of various IT-based technologies, numerous Indian communities have been formed in cyberspace. Accordingly, Indians are now shifting to accommodate cyber communities in addition to their traditional offline communities. Currently India is one of the youngest nations in the world, with a large number of young adults and youths leading the cyberspace communities.
Social media in India has been affecting not only the media industry but also many aspects of daily life. The flow from one’s homepage to social media such as personal blogs, Facebook, and Twitter is now commonly found in India, with many people receiving information from the government, the industry, as well as general users.
The core opinion leaders of India are males, mostly in their mid- to late-twenties. Many are college students or workers in the IT or financial industry. The social network services provided by such opinion leaders are found more effective in the work of NGOs(non-governmental organizations), compared to that of the industry. This indicates a trend in the social service network, which favors the pursuit of public benefit rather than business profits. In many cases social network services are provided through mobile phones rather than personal computers.
According to this study, we suggest the following strategies in promoting knowledge and insight of India as well as advancing Korean-Indian relationship.
First, as a study of communities and the self-perception of communities in India, we anticipate this study will provide critical information on Indian societies and their ways of thinking, while aiding government agencies and companies entering and branching out in India.
Second, we propose financial or administrative support for Indians in Korea who are seeking to build a center for the immigrant and migrant worker community. This may include support for building physical temples in Korea, or providing cyberspace in which actual Indian temple communities may be broadcast or cyber worship communities may be operated.
Third, with the upsurge in the use of social network services such as Twitter or Facebook, many Indian businesses have started to use these networks to promote new products or service. Korean businesses aiming to find a market in India should also be aware of this trend, and provide their own channels within the Indian social media as soon as possible. This will be crucial to the younger consumers of India, who will lead the trends in providing information as well as consumption.

This is to explore the cultural and economic implications on the Eastern India composed of two provinces, West Bengal and Orissa. West Bengal and Orissa are geographically in eastern regions of India and are the most densely populated and agriculture-dependent state in India. These states remains one of the poor states in India. However, they are in different stage and process of economic development because of their different cultural and social background. It gives some policy implications for the firms to enter India market.
The basis of the traditional culture of Eastern India may be the Jagannath belief and Durga puja. And modern culture is heavily influenced by the modernism brought by East India Company in the 19th century onward. West Bengal and Orissa marks the lowest on the human development indices such as medical service, health care, education, housing etc. Though the communists has been taking the power in West Bengal government, the government servants show us serious corruption and the violence of the upper classes is very widely prevalent in all over the province. What is to be noted on Orissa is that they have very good number of Scheduled Tribes in its north-western region where deep forest with various natural sources are lying. And the development policy of the government and entrepreneurships lead the serious resistance and struggle of the indigenous people dwelling in the region. The power and influence of Naxalite struggle here in Orissa is most noteworthy in all over India. In addition to this, the refugees from the 1947 Partition and the Bangladesh Liberation War of 1971 have affected the backward economic situation of these two provinces. Though the governments of the provinces have been trying to prompt various investments, the poor condition of infrastructure like road, light, port is blocking the progress.
West Bengal and Orissa are most poor states compared to others. Agriculture is the leading occupation in West Bengal and Orissa. However, industry is the lowest contributor to the gross domestic product of the states. Except the mineral and steel industries, only traditional sectors such as cottons and leathers are playing important economic role in these states. Manufacturing are still backward sectors in these two states. Minerals account for 50% of Orissa's export and the traditional items such as engineering products, leathers, textiles, jeweller are major export products in West Bengal.
Two states are by far the least industrialized and underdeveloped states because of their unique social and cultural backgrounds. It is analyzed that the reasons that West Bengal remains one of the poor states in India are political instability and bad governance, political and high corruption with Bengal the Communist Party of India (Marxist) led Left Front rule for three decades.
Orissa is India's poorest state and highly disparities which have long historical and deep institutional roots. Agriculture-deep dependence and its low productivity, lack of leadership and fails of industrial policies have been unable to break the disparities. Land reform makes another obstacles for the firm that needs vast land to establish the factories. Massive resistance from the people of the state who mainly depend on agriculture for livelihood also is a major factor against attracting investment in Orissa.
There are two case to explore the cultural and economic implication on the eastern India, the Tata Nano and POSCO.
In 2006, Tata Motors started constructing a factory to manufacture their $2,500 car, the Tata Nano at Singur, West Bengal. Tata chose the Singur site because of its proximity to Kolkata and highway connections. The West Bengal government obliged, making use of a colonial land expropriation law and state pepression to force 13,000 Singur peasants out of 1,000 acres of prime agricultural land. The project faced massive opposition from displaced farmers. They were given a political support by West Bengal's opposition leader Mamta Banerjee of Trinamul Congress Party. After repeated violences, Tata finally decided to move out of Singur in 2008. On 7 October 2008, Tata announced that they would be setting up the Tata Nano plant in Sanand, Gujarat.
POSCO signed a Memorandum of Understanding (MOU) with the Government of Orissa in June 2005, to set up a 12 MTPA green field steel plant near Paradip, Jagatsinghpur District, Orissa, with an estimated investment of USD 12 billion. The company will build a 4 million-tons per annum capacity steel plant in Orissa, during the first phase of its project , and expand the final production volume to 12 million tons per annum. Production from the plant was scheduled to begin by the end of 2011. But the plan, one of India's largest foreign investment projects, has already faced more than three years of delays because of controversy over land acquisition and mining rights. POSCO has faced protests from local residents who stand to be affected by the plant as well as the environment ministry probe. In August, 2010, the environment ministry ordered a halt to all work on the project, including land acquisition, while the panel looked at whether the forest rights act, which seeks to protect forest land and settlers, had been violated.
Policy implications for potential investors from inside or outside India are about the process of land acquisitions. Land for investment project is advised not to include the privately owned or to minimize. If it included private land, direct negotiations between the industry and the landowners would be advisable but it needs a strong political will to end all protocol and red tape. Even in the case of projects that are genuinely for public welfare, there is a considerable difference between market value of the property and the value that the land acquisition officer pays to the landowners. The rehabilitation and relocation of the landowners affected by acquisition should be looked into carefully.
The results gives some policy implications that the level and growth of economic development in India would be different in state by state. It also shows that land aquisition is the most difficult factor for the firm to invest in Eastern India and the resistance has a different background. It indicates that the cultural and economic backgrounds have to be investigated before the firm invests in India such as West Bengal and Orissa. Finally, the results show that the two states still have a potential as an emerging market even though there are structural difficulties.