National Initiatives, Local Effects: Trade Liberalization, Shrimp Aquaculture, and Coastal Communities in Orissa, India

Commercial shrimp farming in India expanded rapidly after trade liberalization initiatives were introduced in the early 1990s. This article examines the social, economic and environmental impacts that have been generated in communities along Orissa's Coast in east India. The results suggest that macro-level policies such as trade liberalization are useful at the national level, but at the local level they can generate imbalanced growth. Although the shrimp farming industry has generated substantial foreign exchange, at the local level it has widened the gap between rich and poor. To protect the livelihoods of the rural communities and the environment, India needs to formulate effective coastal resource management policies and establish adequate institutions at the local level. This will help ensure a stable source of income from shrimp farming for small-scale farmers and minimize adverse impacts on the local environment.