Identifying Spatial Efficiency–Equity Trade-offs in Territorial Development Policies: Evidence from Uganda

Abstract

We contribute to the debate on the spatial allocation of infrastructure investments by examining where these investments generate the highest economic return (‘spatial efficiency’), and identifying trade-offs when infrastructure coverage is made more equitable across regions (‘spatial equity’). We estimate models of firm location choice in Uganda, drawing on insights from the new economic geography literature. The main findings show that manufacturing firms gain from being in areas that offer a diverse mix of economic activities. Public infrastructure investments in other locations are likely to attract fewer private investors, and will pose a spatial efficiency–equity trade-off.     

Democratic ‘freedom’ in Myanmar

In Robert Dahl’s work on ‘polyarchy’, democratic ‘freedom’ is liberty from the abuses of the state and freedom for citizens to formulate and express their preferences. This meaning of freedom is central to contemporary scholarship on democratization. At the same time, freedom has also been a key concept for activists and leaders involved in Myanmar’s long democratic struggles. Yet, when freedom is referred to by Burmese activists and democratic leaders, does this entail support for liberty or freedom of the type outlined by Dahl? This article argues that Berlin’s distinction between ‘negative’ and ‘positive’ freedoms can help to clarify overlaps and divergence in notions of freedom. When exploring ‘negative’ democratic freedoms, such as freedom from government restrictions on speech or association, there is considerable overlap between the visions of Burmese activists and democratic leaders and the key elements of Dahl’s democratic freedom. In considering ‘positive’ freedoms, however, there is more divergence. Amongst activists and democratic leaders in Myanmar, there is a focus not on freedom as the exercising of own entitlements but rather on freedom for moral conduct; freedom to bear to the responsibilities and discipline of democracy.     

Globalizing Corporate Environmentalism? Convergence and Heterogeneity in Indian Industry

What explains the recent emergence of corporate environmentalism in developing countries? Why have certain firms surpassed others in greening their activities? This article situates the uneven dynamics of corporate greening within a theoretical framework of convergence, firm specificity, and heterogeneity. Through a comparative analysis of firms in three sectors—automobiles, steel, and power—of the Indian economy during the past two decades, I show that corporate greening is rooted in processes of growing international political engagement, market integration, and transnational social communication. Together, these processes have unleashed various economic and sociological convergence dynamics, which have led firms in India to adopt more environmentally sound innovations and performances increasingly similar to those found in many developed countries. Yet firms’ connectedness to external pressures fostering “upward” convergence varies, as do their internal capabilities to respond to them. Heterogeneity in these internal and external variables, and the firm-specific strategies linking them, accounts for much of the unevenness in patterns of corporate environmentalism observed in India.     

Kashmir: ripe for resolution?

This paper documents and analyses 46 proposals made between 1947 and 2008 for resolving the India–Pakistan dispute over Jammu and Kashmir. We conduct a content analysis to recognise the patterns that emerge from these formulations and identify the key elements that recur over time. Our analysis suggests that the dispute may be more ‘ripe’ for resolution today than it has ever been in the past. For the first time in the dispute's history, there is growing convergence over a core element of the solution, ie granting autonomy to Kashmiris. This is matched by a virtual consensus on the ‘catalysts’, namely soft borders to allow relatively free human and economic exchange within Jammu and Kashmir, the notion of Kashmiri involvement in any negotiations on the issue and demilitarisation of the state. Ripeness alone, however, does not lead to resolution. Over the years various dynamic proposals have been made, which means that this particular convergence could also dissipate, as some of the prior ones have. There is a potential window of opportunity today, but it will not last indefinitely.     

Exports,Outward FDI and Technology Upgrading: Firm Level Evidence from India

This paper evaluates the individual and combined effects of exporting and outward foreign direct investments (OFDI) on firms’ technology investments at home using firm-level data from the pharmaceutical industry in India. The analysis accounts for unobserved firm heterogeneity and the endogeneity of the choice of foreign market participation, and shows that exporting has been an important channel through which Indian multinational expansion has encouraged greater domestic technological activity. However, all else constant, higher levels of OFDI have rather acted as substitutes for such technological efforts.     

How can emerging powers speak? On theorists,native informants and quasi-officials in International Relations discourse

Emerging powers like China, India and Brazil are receiving growing attention as objects in International Relations (IR) discourse. Scholars from these emerging powers are rarely present as subjects in mainstream IR discourse, however. This paper interrogates the conditions for scholars in emerging powers to speak back to the mainstream discipline. It argues, first, that ‘theory speak’ is rare from scholars based in periphery countries perceived to be ‘emerging powers’. Despite increasing efforts to create a ‘home-grown’ theoretical discourse in China, India and Brazil, few articles in mainstream journals present novel theoretical frameworks or arguments framed as non-Western/Southern theory or even as a ‘Chinese school’ or ‘Brazilian concepts’. Second, scholars from emerging powers tend to speak as ‘native informants’ about their own country, not about general aspects of ‘the international’. Third, some scholars even speak as ‘quasi-officials’, that is, they speak for their country.     

Global South rhetoric in India’s policy projection

While an on-going statist project tries to portray India as a ‘rising power’ in world politics, the fact remains that India’s global projection continues to be heavily fashioned by the Global South rhetoric. Such rhetoric is inclusive of irredentism and contestation with western norms and ideals along with cooperation leading to a complex process of interactions shaping up the global order. For countries like India being claimant to the status of ‘civilisational state’, the strong urge for autonomy along with the self-perception of national and cultural greatness is shared by the elite along with a sense of strategic importance. Such identity formation, however, reduces and sometimes obliterates the gaps between ‘internal’ and ‘external’, bringing into academic scrutiny the whole range of policymaking and to what extent it matches the state rhetoric.     

Legal Environment,Finance Channels and Investment: The East African Example

How do legal environments and finance affect investments by firms in the East African community? Property rights, external and internal finance channels – key conduits of the transmission mechanism from ‘legal environment’ to ‘investment’– individually and interactively affect firms' decision to invest. Firms that perceive secure property rights are more likely to invest in fixed capital. The interactions suggest governments in this community would do well to pursue investment/growth policies that slant heavily towards financial markets deepening while not ignoring enhancement of legal infrastructures. Overall, property rights, external finance, internal finance, firm size, and an export-orientation, are important determinants of the investment decision.     

A method of estimating the distribution of farm incomes in Turkey∗

The ‘naive’ idea current among many of the older nationalists of the Third World regarding the de‐industrializing effect of western capitalism on their countries is confirmed by the analysis of occupational data relating to the State of Bihar in India. Similar evidence is also available for Egypt and China. If we shift from models of what can ideally happen under capitalism in its international aspects and look at what actually happened until, say, 1914, we find that it often had opposite effects on the advanced capitalist countries and their overseas offshoots, and on the colonial or semi‐colonial economies of the Third World in respect of industrial employment, investment in productive assets and distribution of income. Technological change even today often carries highly disruptive and inegalitarian consequences for Third World countries. In the light of such experience with market‐orientated growth, an alternative model is suggested in which development proceeds by localized economic activities, distributing incomes and opportunities equally and keeping out ‘backwash’ effects on other regions. One major task of the economist in the future will be to explore the inner logic of such a ‘paradigm’, suggest the means of implementing the model, and ferret out possible contradictions. The Chinese (and perhaps Vietnamese) experience may serve as an example or laboratory for such explorations.     

Technical change and dualism within agriculture in India

The dichotomy between subsistence and market‐oriented farmers in many developing countries is a well‐recognized fact. There have been empirical studies in India of the differences between subsistence and market‐oriented or ‘commercial’ farmers; and interest is now developing in the impact of the new agricultural policy on dualism within agriculture. While the theoretical literature deals extensively with dualism between a traditional agricultural sector and an advanced industrial sector, dualism within the agricultural sector itself is less discussed.¹

However, this dualism has become of increasing practical importance in India with the introduction of the ‘New Strategy for Agricultural Development’ in 1966–67.² This policy concentrates on raising output per acre very sharply, especially for the food crops, by the use of new high‐yielding varieties of seeds and complementary inputs. In the beginning, at least, these measures are to be confined to a small part of the total acreage under food grains. Critics have also alleged that they have been confined to the larger farmers, thus accentuating the existing inequality of agricultural incomes, and that this inequality must have several undesirable social, economic and political consequences. But these consequences have not been elaborated, partly for lack of data, but partly also because the theoretical implications of technical change for a dualist development of agriculture have not been adequately discussed. The first object of this paper is to examine the changes in income distribution within agriculture when technical progress is confined to the commercial sector. Thereafter we show that if dualism cannot be directly attacked by such measures as land reform, the second‐best policy from the point of view of maximizing output may in fact be to encourage the use of ‘new’ inputs, such as fertilizers, in the commercial sector.     

The Return to Foreign Aid

Abstract

We estimate the average rate of return on investments financed by aid and by domestic resource mobilisation, using aggregate data. Both returns are expected to vary across countries and time. Consequently we develop a correlated random coefficients model to estimate the average returns. Across different estimators and two different data sources for GDP and investment our findings are remarkably robust; the average gross return on ‘aid investments’ is about 20 per cent. This is in accord with micro estimates of the economic rate of return on aid projects and with aggregate estimates of the rate of return on public capital.     

Public perceptions of India’s role as an international development cooperation partner: domestic responses to rising ‘donor’ visibility

The literature on South–South Development Cooperation (ssdc) has grown exponentially in the past few years. One focus of analysis has been how domestic institutions and agendas shape the approaches to development cooperation of different Southern partners. However, few analysts to date have commented on how the ‘ordinary’ general public of these countries might perceive or assess their country’s role in international development. Through a study based on interviews and media analysis, this paper attempts to tease out the slim evidence currently available on ‘public’ attitudes in India, concentrating, for reasons explained, exclusively on elites and ‘middle classes’. It argues that, while some domestic criticism will certainly accompany the growing visibility of Indian development cooperation, the attractive blend of discursive positioning and material benefits may provide the Indian government with broad support for its growing investment and profile in international development, or at least offset a degree of criticism. At present there appears to be little public discussion about whether and how India’s external role relates to domestic poverty, or the nature of growth and ‘development’ that India is helping to stimulate in partner countries. The paper also discusses ‘boundary making’ with China through the public construction of Indian development cooperation.     

Grading greatness: evaluating the status performance of the BRICS

An impressive portfolio of case-study research has now demonstrated how and through what means the BRICS (Brazil, Russia, India, China, South Africa) countries have sought higher social status. However, this field of research lacks systematic means of evaluating this status-seeking. This article fills this lacuna by developing a mixed-methods framework enabling scholars to zoom in and compare individual states’ relative status performance. Using diplomatic representation as a proxy for status recognition and comparing it to a country’s status resources (wealth), the framework indicates how successfully countries have generated recognition from the international society. The findings show that China’s economic ascent has been matched by increased recognition, and that South Africa enjoyed an almost immediate ‘status bounce’ following apartheid, turning it from a pariah to a significant overperformer. Russia should be understood as an ‘overperforming status-dissatisfied power’ while India’s status performance has been around ‘par’ for a country of its economic resources. Lastly, Brazil underperforms more than any of the other BRICS, especially since its democratic transition. The findings highlight considerable variance in the type and duration of gaps between status resource and recognition and suggests that rather than treating these as ‘inconsistencies’ awaiting correction, they can and should be accounted for by case study analyses.     

Foreign ownership and export performance in the large corporate sector of India

This paper examines the impact of foreign ownership on export performance by the largest corporate firms in India, to analyse whether the ‘monopolistic advantages’ of multinationals survive in its highly restrictive and regulated environment. After controlling for industrial characteristics and export incentives, foreign ownership has a positive impact on export performance. The statistical significance of the result is not very strong, but the finding counters earlier works based on simple comparisons of exports at the firm level. The analysis also sheds light on other influences of policy significance on export performance.     

Identity and world order in India’s post-Cold War foreign policy discourse

This article examines the dominant conception of world order in India’s post-Cold War foreign policy discourse. Drawing on a poststructuralist, discourse-theoretical framework, I argue that the discourse uses foreign policy and world order as sites for the (re-)production of India’s identity by placing India into a system of differences that constitutes ‘what India is’. The article shows that India’s foreign policy discourse frames world order in accordance with India’s own national experiences and thus seeks to upheave India’s identity to a position from where it can represent the universal: a global political community. This notion of Indian Exceptionalism constitutes the affective dimension of the discourse that obscures the absence of an extra-discursive foundation on which national identities could be grounded by endowing the Self with an imaginary essence and seemingly unique qualities.     

Rising powers at the UN: an analysis of the voting behaviour of brics in the General Assembly

This article examines the long-term trends of foreign policy convergence of Brazil, Russia, India, China and South Africa (brics) to determine the similarity of their positions on world issues, as they seek to ‘insert’ themselves more fully into global decision making. The analysis is based upon their votes in the UN General Assembly. The article compiles two indexes of voting for the period 1974–2011. Both demonstrate a high and now growing degree of cohesion among brics. Their voting is broken down by pairs to show common themes and the major issue divergences, and how often individual states voted with others. Nuclear disarmament and human rights are the two areas that reveal persisting divergences between these states.     

NEW PUBLIC MANAGEMENT FOR THE ‘CLASSICAL CONTINENTAL EUROPEAN ADMINISTRATION’: MODERNIZATION AT THE LOCAL LEVEL IN GERMANY,FRANCE AND ITALY

The article is aimed at analysing New Public Management (NPM) reforms at the local level in Germany, France and Italy. The case selection is justified by the fact that these three ‘classical’ Continental European countries have largely been missing from comparative administrative research thus far. The article focuses on local governments, since in all three countries these are considered the NPM forerunners and are acknowledged to be more advanced in reform implementation than are upper levels of government. Against this background, the purpose of this contribution is twofold. On the one hand, we wish to show to what extent and with what effects the NPM agenda has been taken up at the local level in Continental Europe. On the other hand, taking a comparative perspective over time, we wish to ask whether or not there has been increasing convergence or divergence between the three countries as a result of these reforms.     

The code of conduct against harmful tax competition: open method of coordination in disguise?

The European Union is experimenting with new, non‐binding policy instruments in business taxation, namely a voluntary code of conduct among member states against harmful tax competition. This article raises the question to what extent can the code be considered a manifestation of the open method of coordination (OMC)? Is an open method (based on guidelines, peer review, best practice, benchmarking, learning and diffusion of shared beliefs among policy‐makers) emerging as a new governance architecture in tax policy? If so, what can the code achieve in terms of policy learning and convergence? There are similarities between the code and the open method of coordination – especially with reference to guidelines, peer review, timetables and the identification of ‘worst practice’. However, the political logic of the code does not fit in well with the OMC aims of participatory governance and social learning. In terms of achievements, the code has contributed to the creation of a community of discourse and the diffusion of shared beliefs about what constitutes ‘acceptable’ and ‘harmful’ tax competition. Convergence at the level of discourse, however, should not be confused with convergence of actual tax policies in the member states.     

The Role of Access Mechanisms in Effective Rehabilitation of Displaced Farmers Due to Development Projects

This paper provides an access based explanation of why institutional arrangements of compensation provision for land acquisition often fail to effectively rehabilitate displaced farmers in a developing country context like India. Farmers have a right to claim compensation in case of land takings, which specifies two methods of claim: consent method and arbitration method. Literature indicates that farmers’ choice between the two methods has a significant impact on the compensation they receive. Using a binary response model on a primary dataset of 199 displaced farmers from Upper Krishna Irrigation Project, India, we analyse the determinants of this choice. We validate ‘access based’ hypotheses in choice of compensation and test whether in addition to allocated property rights, benefits actually depend on the ‘access mechanisms’ farmers have. Results suggest that the choice is governed by access to social identity and information. Therefore, farmers lacking these fail to get resettled despite the presence of a policy framework aimed at their rehabilitation.     

India and the responsibility to protect

‘Responsibility to protect’ (R2P) is an ‘emerging norm’ of international relations, which has been invoked with the intervention in Libya in 2011. Even though this intervention was demanded by several Third World countries and organisations, these have subsequently had second thoughts about the matter and have come to regard R2P as Western neo-imperialism. This article seeks to explain this apparent paradox, with a special focus on India. It also identifies possible compromises by advocating a broader approach to R2P, stressing the responsibility to prevent and to rebuild. It also draws attention to ‘R2P lite’, including the protection of civilians in armed conflicts.