Global Production Networks, Chronic Poverty and ‘Slave Labour’ in Brazil

For large parts of the world's poor labour force, participation in global production networks (GPNs) is associated not with poverty reduction and ??social upgrading??, but with highly precarious, unprotected and exploitative forms of work and employment, resulting in a perpetuation, rather than alleviation, of chronic poverty. In this article, we seek to understand these dynamics of ??adverse incorporation?? in the context of Brazilian agriculture, focusing on the extreme ends of the spectrum of exploitation associated with what, in Brazil, is usually termed ??slave labour??. We explore two questions which reveal the circular character of adverse incorporation. First, to what extent, in what ways and under what circumstances does chronic poverty foster patterns of precarious and exploitative employment within GPNs for poor workers? Second, to what extent, in what ways and under what circumstances can the workings of GPNs, and the terms on which poorer workers are incorporated into them, be said to produce and reproduce chronic poverty?     

Entitlement failure and deprivation: a critique of Sen's famine philosophy 1

This paper insinuates the conceptual foundation of Sen's entitlement approach by pinpointing its major weaknesses. First, Sen's critique of FAD is inadequate because speculative, not actual, supply and demand forces determine short-run commodity prices. Second, Sen's idea of ‘exchange entitlement’ is inconsistent with the principles of capitalism, since this economic system operates on the conceptual and legal framework of voluntary exchange. Third, if food is considered as an entitled commodity, other basic necessities of life, such as healthcare, education etc. could claim the same status. Finally, the approach is founded on a hidden hypothesis that income distributions in non-communist states are economically and politically optimal.     

Core Poverty,Vagueness and Adaptation: A New Methodology and Some Results for South Africa

Amartya Sen has argued that poverty is a vague concept. This paper develops a methodology for applying a framework which uses a ‘supervaluationist’ account of vagueness in the context of poverty. Within this framework people or households are termed ‘core poor’ if there is no ambiguity about whether or not they are poor. The framework is applied using data from a survey on the ‘Essentials of Life’ conducted in three locations in South Africa in 2001. The methodology relates the data to the framework using an insight of Max Black's. While the application of the methodology is, in its very nature, somewhat arbitrary, we illustrate how it can lead to an estimate of core poverty which differs from standard measures of the ‘ultra-poor’ and ‘most deprived’. Finally, the possibility that respondents may have adapted to their living conditions is investigated. A first look at the data does not provide conclusive evidence of such adaptation.     

The Rise of India: Overcoming Caste Society and Permit-License-Quota Raj,Implementing Some Economic Freedom

Two or three centuries ago most of mankind was still very poor. When the West outgrew mass poverty, India was a British colony and suffered from stagnation. When East Asian economies exploited the advantages of backwardness and benefited from export-led growth, India remained inward-looking and poor. The ‘Hindu rate of growth’ preserved mass poverty. Since the reforms of the early 1990s India has exploited the advantages of backwardness and some global markets. In this article, the roots of India's failure to grow rapidly before the end of the twentieth century are analyzed. Stagnation is blamed on restrictions of economic freedom, whereas growth is explained by the expansion of economic freedom. Before the mid-twentieth century, the caste system and the legacy of sultanism curtailed economic freedom and contributed to economic stagnation. Thereafter, democratic socialism distorted incentives and generated ‘permit-license-quota raj’ or a rent-seeking society. When some obstacles to growth were dismantled, vigorous growth followed. Although expanding economic freedom remains limited. India's growth potential is not yet fully exploited. Indian infrastructure and human capital formation remain inadequate, regulations intrusive, and the budget in deficit. The rule of law looks better on paper than from the ground. Compared to China Indian public policy still has a lot of room for improvements. ‘Maoists’ or Naxalites threaten political stability and economic freedom. Geopolitics may explain India's late, slow and incomplete reforms. The rise of Asia, in particular of China and India, generates geopolitical challenges of its own. Conceivably, the global expansion of economic freedom permits not only the rise of Asia, but the peaceful management of the coming power transition between Asia and the West.     

Attitudes toward immigrants and immigration policy in Asia and the Pacific: a quantitative assessment of current theoretical models beyond western countries

This article empirically assesses the validity of current theoretical models of attitudes toward immigrants and immigration policy in the Asia-Pacific region. This paper takes representative data from the World Values Survey and implements a multilevel model to test five of the main theories in the literature: the human capital theory, the social capital theory, the political orientation theory, the contact/group threat theory and the economic competition theory. The results from the analysis lend credence to the important effects of human capital, social capital and political-ideological variables on respondents’ attitudes toward immigrants and immigration policy. However, the results provide mixed and weak evidence for the contact/group threat theory and the role of economic determinants. Importantly, economic determinants tend to be more powerful in shaping people's attitudes toward immigration policy than shaping attitudes toward immigrants as people. Altogether, this article sheds new light on the validity of current theoretical models based on western countries for other areas of the world. Finally, the results from the paper also support the usefulness of non-economic, as opposed to purely economic, models in the understanding of individuals’ attitudes toward immigrants and immigration policy in the Asia-Pacific region.     

Rethinking economic security in a globalized world

Economic security is one of the primary dimensions of human security and is closely associated with poverty and related issues. This article takes a non-economic view of economic security and argues that the concept may lose its policy traction and relevance if it continues to be narrowly defined as and associated with poverty per se. If the concept is to continue to be useful to policy-makers and analysts, it needs to champion and embrace issues and concerns beyond poverty and consider the emergent threats affecting the non-poor. It argues, by way of several highlighted examples, that the concept is sufficiently dynamic to capture and incorporate other pervasive threats to the well-being of the people. It also points out that understanding the political impact and influence of economic security is just as important as studying the economic dynamics.     

An Exploratory Analysis of Fertility Differentials in India

The association between improving economic conditions and declining growth of population has led economists and demographers to hypothesise a direct relationship between indicators of economic development and fertility rates. Using recent National Family Health Survey data and the 1991 Census to explore factors contributing to fertility rates in India, we found that economic variables explain 70 per cent of the interstate variations in India's fertility rates. However, several non-economic variables explain an even greater proportion, for example, indicators of female autonomy explain 84 per cent of the variations. Our analysis demonstrates that to successfully explain Indian fertility rates, models must rely heavily on non-economic variables.     

Re-scaling the debate on Russian economic growth: Regional restructuring and development asynchronies

This article provides a critique of the literature on Russian economic growth and argues that broadening the growth debate to include regional perspectives may cast new light on economic processes at work in the varied geographical context of Russia. The article shows that growth in Russia's regions is much more comprehensive than often realised in the West and is closely associated with rising levels of industrial production in the overwhelming majority of regions. This contradicts the perception that resource dependency is the only formula of success within Russia. The author also provides a close examination of Leningrad oblast', once declining but recently one of the fastest growing regions in the Russian Federation. However, although the general vector of development has changed radically, the case of Leningrad oblast' demonstrates that the growing economy perpetuates the landscape of unevenness. New technologically intensive loci of development have paralleled ‘underinvested’ areas—despite being situated within the same administrative and political context. Nevertheless, growth continues to trickle down to less advantageous areas, both buttressing and spurring national growth as a whole.     

Why China Won't Follow Arab Revolt

Do China's mandarins have anything to fear from the winds of freedom that have blown away Arab autocrats? The short answer is no—for now. The Chinese government has performed for its people, lifting hundreds of millions out of poverty during the same length of time Hosni Mubarak reigned in Egypt. Though many in the West would like to think so, it is not likely that the rising middle class in China will one day also fill Tiananmen Square in protest. In the immediate future, the chaos and economic drift that will now engulf the liberated Middle East will remind them again that China was right not to go down the path of Gorbachev's glasnost and perestroika in Russia. And it is not as if they will have a chance. The authorities are determined never to allow any two people who vent virtually on the Net to meet in the street. In this section, we discuss the impact of the Arab revolt—and lack of it—on China's system of governance.     

Fertility and the household's economic status: A natural experiment using Indian micro data

We model fertility as endogenous to the family's economic status because poor households choose to have large families in the absence of adequate social insurance. Because of a strong son preference in India, having two girls first can proxy an exogenous increase in fertility, and is therefore a good instrument for fertility in determining poverty of rural households. The 1993–1994 Indian Quinquennial Survey data shows that even though poverty rates are comparable, 74 per cent of two-girl families have a third child compared to 63 per cent of other families. Fertility significantly positively affects poverty when treated as exogenous, but vanishes once endogenised. These results are robust to omitting states with skewed sex ratios and to proxying economic status by expenditures.     

China's “Color Revolution” Is Red

Do China's mandarins have anything to fear from the winds of freedom that have blown away Arab autocrats? The short answer is no—for now. The Chinese government has performed for its people, lifting hundreds of millions out of poverty during the same length of time Hosni Mubarak reigned in Egypt. Though many in the West would like to think so, it is not likely that the rising middle class in China will one day also fill Tiananmen Square in protest. In the immediate future, the chaos and economic drift that will now engulf the liberated Middle East will remind them again that China was right not to go down the path of Gorbachev's glasnost and perestroika in Russia. And it is not as if they will have a chance. The authorities are determined never to allow any two people who vent virtually on the Net to meet in the street. In this section, we discuss the impact of the Arab revolt—and lack of it—on China's system of governance.     

The Determinants of Economic System Legitimacy in Kazakhstan

Despite robust, and much touted, growth, Kazakhstan's economic system enjoys only tepid support among large swathes of the population and is viewed by many as neither fair nor legitimate. Extreme juxtapositions of new wealth and new poverty against a historic background of economic and social egalitarianism combine to make this a potent and combustible issue. Women, ethnic Slavs, the poor, people in urban areas most afflicted by post-Soviet de-industrialisation, those who feel they have lost out in the transition to a market economy, and those who are pessimistic about their financial prospects are more likely to question the legitimacy of the current economic system. Because scepticism about the distributive system contributes to political and social strife, these findings provide grounds for concern about Kazakhstan's long-term stability.     

The boundaries of generosity: Can administrators in charity hospitals provide “free care?”

The medical marketplace changes of the 1980's and 1990's have helped to redefine the charity care role which charity hospitals have played. How might charity hospital administrators succeed in fulfilling this responsibility, while simultaneously protecting the financial well-being of their institutions? This paper discusses how increases in charity care volume may relate to declining opportunities for cost-shifting, increased pressures for revenue-raising utilization policies, and limited support from government to subsidize uncompensated care. “Charity” and “free care” concepts are discussed, and economic and historical perspectives are introduced to provide the context for studying this issue.

The 1980's experience of charity hospitals in Massachusetts provides examples of specific policies within a state in which uncompensated care played a pivotal role in the debate over universal coverage. But there has been a quite recent refocussing upon the nonprofit hospitals' tax exemption. If such political pressures in the 1990's require a review of community benefits standards at charity hospitals, then perhaps the resolution of access questions for the poor and uninsured within forthcoming national health care reforms properly will take into account considerations of quality of care.     

Waste pickers and collectors in Delhi: Poverty and environment in an urban informal sector

Waste pickers and collectors constitute the bottom layer of waste recycling in the metropolis of Delhi. Pickers collect waste just by picking them up from public places such as garbage dumps and streets, whereas collectors purchase waste from waste producers such as households and shops for sale to higher-level waste traders. Most pickers have incomes below the poverty line set by the Planning Commission of India, whereas the majority of collectors earn marginally higher than the poverty-line income. The poverty of pickers is not transitory, but chronic as they have no connection to enter the community of collectors and higher-level waste traders within which the community mechanism works effectively to reduce risk and transaction costs. Despite their low economic and social status, pickers and collectors are making important contributions to society. It is found that pickers and collectors are adding more value than their own income to waste producers' income and to the saving of the city government's expenditure for disposing waste. Increased public support not only for social services, but also production services and infrastructure can be justified not only for the purposes of reducing poverty but also for furthering their positive contribution to society.     

Social contracts and authoritarian projects in post-Soviet space: The use of administrative resource

Drawing on evidence from Ukraine and other post-Soviet states, this article analyses the use of a tool of political coercion known in the post-communist world as adminresurs, or administrative resource. Administrative resource is characterized by the pre-election capture of bureaucratic hierarchies by an incumbent regime in order to secure electoral success at the margins. In contrast to other forms of political corruption, administrative resource fundamentally rewrites existing social contracts. It redefines access to settled entitlements—public infrastructure, social services, and labor compensation—as rewards for political support. It is thus explicitly negative for publics, who stand to lose access to existing entitlements if they do not support incumbents. The geography of its success in post-communist states suggests that this tool of authoritarian capacity building could be deployed anywhere two conditions are present: where there are economically vulnerable populations, and where economic and political spheres of life overlap.     

Is Economic Growth Increasing Disparities? A Multidimensional Analysis of Poverty in the Lao PDR between 2003 and 2013

The Asian story of miraculous growth and poverty reduction has reinforced mainstream views of development that equate high and sustained economic growth with progress in human wellbeing. But understanding development only in terms of economic growth is not sufficient. This paper offers a different perspective on possible effects of Laos’s transition from a subsistence-oriented economy to a market-oriented economy. We used a multidimensional poverty approach with panel data for the years between 2003 and 2013. Findings suggest that benefits were not equally distributed: 50 per cent of people moved in and out of poverty, and the other half was either non-poor (37%) or always poor (13%).     

Refugees,idps and Citizenship Rights: the perils of humanitarianism in the African Great Lakes region

Persistent civil warfare has created a crisis of protection for vulnerable refugees/returnees and internally displaced people ( idps ) in the African Great Lakes region. This is in the context of increasing state hostility towards refugees, intensified inter-group competition among citizens, and rising xenophobia towards African ‘foreigners’. Humanitarian solutions are often de-contextualised from struggles over entitlements, citizenship and exclusionary practices based on social hierarchies, ethnicity and indigeneity. Hence, they tend to contribute to rather than alleviate the marginality experienced by the displaced. This article argues for further exploration of the processes of identity construction that accompany displacement and humanitarianism and their problematic relationship with sovereignty and citizenship. It suggests that transcending marginality requires greater emphasis on political agency within refugee and idp communities—for their voices to be part of negotiations and conversations on repatriation and integration—in order for them to rejoin the political community.     

Beyond budgetary support: pro‐poor development agendas for Africa

The latest fashion in a sequence of global interventions by donors, designed to make a difference to the lives of poor people, is the use of budgetary support mechanisms. These have emerged afresh at the start of the twenty‐first century as the increasingly dominant mode of desired aid delivery for many donors in the African context. However, this paper argues that such an approach to ‘development’, particularly when combined with an understanding of poverty largely as an absolute concept that can be eliminated through economic growth, will have damaging effects on the lives of the poor and marginalised across the continent. The time is ripe for a new global agenda that seeks to place as much emphasis on equity as it does on economic growth.     

Disinvesting in America? the legacy of consumption policy in the 1980s

This article traces patterns of consumption, low productivity, debt accumulation and slow economic growth. Rather than calling for an increased emphasis on market and corporate incentives, the author calls for increased public investment. He favors particularly increases in scientific research and development and technology, in public works to rebuild the infrastructure, and calls for a public administration associated with increased investment in government.

The New Deal and the Great Society established the foundations of the public policy and administration of consumption—income transfer, entitlement, loan, loan guarantee, credit, subsidy, tax expenditure, and related programs designed to maintain or improve the income levels and social and economic well being of many elements of the United States population. Such programs now constitute approximately 50 percent of the federal budget. In the late 1980s, the United States entered into a new international economic, technological, and demographic order in which the public administration of investment will be increasingly important. The “public administration of investment” is defined as the administration of policies designed to produce future benefits for the nation through investment in people, knowledge and technology, the environment and public infrastructure, and public systems and public service.

Several trends in the 1980s contributed to the increasing importance of the public administration of investment. The first trend was the continuation of the low rate of productivity growth in the United States, a condition that has persisted since the early 1970s. ⁽¹⁾

Despite low productivity growth, the United States as a nation continues to spend as if productivity were increasing at pre-1973 rates and to borrow from other nations to make up the difference. The result has been large public and private debt. Increased productivity growth will require additional public as well as private investment if the United States is to maintain its standard of living and capacity to pursue social justice and other values into the next century.

The second trend has been the globalization of technology and the economy. The United States has been losing the comparative advantage it once enjoyed in many scientific and technological fields, as technological know-how has spread throughout the world. The United States fell further behind in the 1980s in the development of new production processes and in the commercialization of new processes and products in consumer electronics, semiconductors, and other fields.⁽²⁾ There is compelling evidence that both the private and public sectors underinvested in developing the scientific and technical workforce that will be essential in the global technological competition of the future.⁽³⁾ More generally, by many measures the education system of the United States has not been producing a well-educated workforce or well-educated citizens.⁽⁴⁾

The third trend of the ’80s was the maturation of the baby boom generation. This generation is now in the high consumption stage of its life cycle—homes, cars, and other consumer goods. The aging of the baby boom generation in the early decades of the twenty-first century will pose a complex challenge to public policy and administration. Early in the twenty-first century, the baby boomers will enter a stage of life usually marked by reduced consumption and higher saving.⁽⁵⁾ At the same time, increased longevity suggests growing demands on both public and private systems for income maintenance, health care, and social services. New technologies will compound health care costs. Unless saving and investment are increased now to partially support the baby boom generation in retirement, the “baby bust” generation that followed the baby boom will face a heavy burden of support.⁽⁶⁾ Currently, the Social Security Trust Fund does not have a single penny in it because the Treasury is borrowing the funds to reduce the federal deficit. Substantially increased productivity or substantially higher taxes will be necessary to replenish the fund in the early twenty-first century.

To compound the problem, by the year 2050, for the first time in American history (according to the middle series of Census projections), there will be more old than young Americans. The age cohort 60 and older will make up 28 percent of the population, while the age cohort 1-19 years will make up about 23 percent of the population.⁽⁷⁾ This is in stark contrast to the 16 percent of the population 60 and over, and the 32 percent of the population 1-19 years, in 1980. Greatly increased saving, increased productivity, substantially lower standards of living for working people, extended working years, or an influx of immigrant workers will be needed to produce the benefits that are promised in the entitlement programs of the federal government and expected by the American people.

Finally, many observers perceived an increase in private greed during the last decade in the United States and a growing indifference to common concerns—eroding public infrastructure, the highest infant mortality rate among industrialized nations, the highest rate of child poverty, and similar social conditions. They see a preoccupation with current pleasure at the expense of future benefits, and a decline in social discipline and civic virtue. To some observers, the United States has been in a temporary cycle of preoccupation with private needs.⁽⁸⁾ To others, civic virtue in the United States has been in decline.⁽⁹⁾

In any event, diminishing growth may intensify each individual's desire to protect his or her interests. In this context, redistribution in the pursuit of social equity will become increasingly difficult.     

Price policy,poverty, and power within rural West African households

This paper explores the impact of agricultural price policy on poverty in West Africa, a region in which prices are an important tool for raising rural household incomes. A game-theoretic, collective model of household income generation and resource allocation is developed that incorporates three features typical of West African rural households: preference heterogeneity among women and men, individual resource control, and power-mediated bargaining over resource control in the face of changes in households' economic environments. To explore price effects, the model is used to simulate the income impacts of large increases in cotton prices accompanying fast-paced agricultural liberalisation in Burkina Faso in the 1980s. The paper shows that where resources are controlled individually by household members, rather than pooled, Pareto efficiency in income generation does not hold. The impact of agricultural price policy on poverty is mediated by bargaining over resource control within households. Both the relative bargaining power of women and men and the degree of preference heterogeneity between them play fundamental roles in the outcome of such bargaining. The results point to a lower ability of households to take advantage of price incentives and thereby raise their incomes than a unitary household model, in which preferences do not differ and resources are pooled, predicts. They suggest that the effectiveness of price policy in reducing poverty in the region would be enhanced by taking into account the incentive structure within households as well as individual household members' ability to bargain over the benefit and cost streams flowing from price changes.