Are Workers in the Developing World Winners or Losers in the Current Era of Globalization?

This article investigates whether workers in less-developed countries (LDC) are winners or losers in the expanding global economy. This study is distinctive in that it looks beyond the impact of globalization on direct economic benefits to labor (employment and surplus labor) and assesses if workers simultaneously improve their bargaining power in the marketplace. I use a time-series cross sectional panel data set for 59 developing countries from 1972 to 1997 to demonstrate that the overall impact of globalization on labor has been different in countries at various levels of economic development. These results challenge conventional wisdom by revealing that under conditions of globalization, labor in low-income countries is not necessarily in a better bargaining position despite certain economic gains. In contrast, labor in high-income countries enjoys both greater economic benefits and an improved bargaining position. The absolute “winners” in globalization ultimately comprise a small percentage of the larger labor force in the developing world. Nita Rudra is an assistant professor of international affairs at the University of Pittsburgh. Her research interests include the impact of globalization on social welfare expenditures in developing countries, the political foundations of welfare regimes, and the causes and effects of democracy. Her most recent works appear in theAmerican Journal of Political Science, Comparative Political Studies, International Organization, andInternational Studies Quarterly. The author is grateful to Hayward Alker for valuable advice and input on this research project and James McGuire for generously providing access to his data. The SCID editors and anonymous reviewers also provided extremely helpful feedback and comments.     

Networks and Public Policies in the Global South: The Chilean Case and the Future of the Developmental Network State

Recently, there has been considerable excitement about the economic potential of the “developmental network state”—decentralized government policies that successfully accelerated growth in several high- and medium-income countries. The question remains whether such a strategy could be successful in less-developed nations whose scientific and technological resources were relatively limited. This paper analyzes the trajectory of Chile, a Southern country which, despite adverse conditions, managed to produce something akin to an economic miracle during the last few decades. Our argument is that Chile’s success was based on the developmental network state strategy. Moreover, we highlight the centrality to understanding the Chilean experience of the concept of “network failures”—a common phenomenon that occurs when domestic production would be best served by network forms of organization but for a variety of reasons, these networks either fail to materialize or fail to take hold (Schrank and Whitford 2011). Over and over again, we see that the logic behind the actions of the Chilean state was to provide resources that reduced the likelihood of network failures. We examine three case studies of successful export sectors: salmon; wine; and fruit and vegetables. The paper outlines some of the challenges faced by the Chilean model and assesses its long-term viability.     

Japan's post‐war protection policy: Some implications for less developed countries

This article examines some of the implications of Japan's postwar development for contemporary developing countries. Whilst acknowledging the qualitative differences in economic structure between Japan in 1945 and today's developing countries it argues that many of Japan's decisions on economic strategy throw light on current debates regarding the merits of free trade or protectionism as strategies for developing countries. It stresses however the key role played in Japan by the highly competitive nature of the internal market and stresses the need to consider policies to stimulate a more competitive internal structure within developing country markets.     

Uneven development,inequality and concentration of power: a critique of Thailand 4.0

This article provides a critique of the Thailand 4.0 strategy to push the country out of the middle-income trap through innovation-driven, inclusive and sustainable growth. First, it argues that the policies have insufficiently analysed the persistence of structural hierarchy and uneven development in the global political economy, which will constrain Thailand’s catch-up success in the future. Second, based on writings about progressive mission-led industrial strategies, it is argued that Thailand 4.0 ought to embed a progressive social and environmental agenda more clearly in its industrial strategy. Third, it is argued that Thailand 4.0 neglects to address the high concentration of political and economic power in the country, and also continues to allow unequal access to the policymaking process that has led to socio-environmental problems. Overall, this article argues that Thailand 4.0 will increasingly aggravate the two-tier fragmented nature of the political economic system of Thailand, where few can reap the biggest shares of the surplus and participate in more advanced sectors of the economy. It also calls for a more progressive industrial strategy and an alternative developmental path.     

Oil,Coalitions, and Regime Durability: the Origins and Persistence of Popular Rentierism in Kuwait

While the canonical literature on oil wealth suggests that hydrocarbon windfalls encourage repressive despotism, Kuwait provides a case of an oil-rich autocracy governing instead through popular rentierism—that is, through a broad coalition of social forces, one that furnishes enduring loyalty from below while constraining abuses of state power from above. This paper provides a theoretically guided explanation for this exceptional outcome. I argue that the Kuwaiti regime’s coalitional bargains originated in the pre-oil era, when domestic opposition and geopolitical constrictions compelled it to forge new social alliances at the dawn of modern statehood. This inclusionary strategy mediated the subsequent effect of oil rents, which the regime used to institutionalize its mass base with costly material and symbolic side payments. Such popular incorporation bound large constituent classes to the regime’s survival, precluding the need for widespread repression. After 50 years, these coalitional bargains have also proven remarkably resilient, as social actors have continued to endorse the autocratic leadership despite economic crisis and wartime defeat.     

Instability and Oil: How Political Time Horizons Affect Oil Revenue Management

While economic explanations for the “resource curse” are well established, the political factors explaining why governments fail to take corrective action remain poorly understood. Research demonstrates that if governments save oil profits abroad and slowly re-introduce the oil-generated revenue into the domestic economy once the rate of return on investment is greater at home than abroad and the quality of project implementation developed, many of the economic problems that plague oil-rich countries can be avoided. Political time horizons shape the incentives of governments to pursue this strategy. Unstable leaders rely on oil revenue to maintain positions of power. They also have less incentive to save oil windfalls abroad as they fear they will not be in office long enough to benefit from such decisions. This paper uses both quantitative data and case study analysis of Azerbaijan and Kazakhstan to demonstrate that leaders with longer time horizons save a greater proportion of oil windfalls abroad than their less stable counterparts, helping avoid the economic pitfalls of oil abundance.     

Modern dependency: A “crucial case” study of Brazilian government policy in the minicomputer industry

Conclusion Brazil’s minicomputer industry has become dependent on government import policy, government financing and domestic private business. The growth in the domestic component of this industry between 1974 and 1981 suggests that incremental government policies (short of a transformation to socialism) can alter Brazil’s level of dependency on MNCs, concerning at least one industry–the minicomputer industry. Therefore, the Brazilian minicomputer model advances the dependency question from “what is dependency and why does it exist?” to “how can one improve its position in a dependency situation?” Relative success in the minicomputer industry cannot be construed as victory over Brazil’s dependency on MNCs, which may alter its economic and political relationship with other countries. Instead, it illustrates a viable model for improving a developing country’s dependency situation. This infant industry strategy is given more credence due to the rekindling of protectionism by all nations. A definitive evaluation of Brazil’s minicomputer policies cannot be rendered until this industry has progressed in its growth cycle. As indicated earlier, signs of both success and failure are evident. In addition, several events may restrict growth in Brazilian minicomputer firms: (1) restriction of funds due to the enormous foreign debt, (2) corrupt or inappropriate management, (3) unsuccessful transfer of technology, or (4) intrusion of smaller and less expensive microcomputers into uses now served by minicomputers. Thus, how effectively Brazil can get out of its overall dependency trap will depend not only on how well it can apply the minicomputer industry model to other industries, of course, given that the model does succeed in the long–run. But it will also depend on how well Brazil can deal with the problems listed above. 0259 0255 V 2     

Energy security and Russia’s gas strategy: The symbiotic relationship between the state and firms

The way how Russia ignores the EU’s quest for liberalization and sustains a control over markets and supplies is directly related to her use of gas as leverage. Russia’s strategy affects many European and non-European countries during all stages: demand, supply and transit. It is not, however, possible to generalize a common statement that the EU’s position is based on a policy of market liberalization while Russia pursues an opposing strategy of increased state control. Russian energy strategy leads markets in Europe; sets tone for energy supplies at homeland and abroad, benefiting from a variety of means. This article shows how a symbiotic relationship between the Russian state and Russian energy companies emerge from a structure in which trade, markets and international politics have been embedded within the state interests and firm behavior. It identifies the economic and geopolitical trends with regard to recent developments of Russia’s strategy.     

Trade and development policies in Colombia: Export promotion and outward orientation, 1967–1992

As developing democracies implement programs of economic adjustment and trade liberalization, we need to examine the relationship between the state and society in the making of foreign economic policies. This article examines trade and development policies in Colombia, one of Latin America's more institutionalized democracies. Colombia was one of the first countries in Latin America to begin a major reorientation away from full dependence on ISI as a strategy of development. The research shows that domestic political institutions and actors have had a decisive impact on the character and direction of foreign economic policies. The study also illustrates how state capacity for economic management is enhanced by bureaucratic insulation and institutional reform. Carlos E. Juárez is a Ph.D. candidate in the Department of Political Science at the University of California, Los Angeles. His research focuses on the politics of trade liberalization in Latin America, government-business relations in developing democracies, and comparative political economy. He was a visiting researcher and lecturer at theUniversidad de los Andes in Bogotá, Colombia from 1991–1992. For 1993–1994 he will be a visiting research fellow with the Center for U.S.-Mexican Studies at the University of California, San Diego.     

Where does your coffee dollar go?: The division of income and surplus along the coffee commodity chain

This article analyzes the division of the total income and surplus generated along the coffee commodity chain during the period 1971–1995. Until the late 1980s, coffee growers and producing states retained over a third of the total income and about half of the total surplus that was available. This was due in part to the collective actions of coffee-producing states, which led to the imposition of a regulatory regime involving export quotas, creating rents for the producing countries. By the late 1980s, coffee TNCs had consolidated their control over core markets, and began to use their market power to increase their shares of both income and surplus. This shift was greatly accelerated by the breakdown of the export quota regime in 1989. The article concludes that these results necessitate a reformulation of commodity chain analysis. John M. Talbot received his doctorate in sociology from UC, Berkeley, this year. His dissertation is titled “Grounds for Agreement: The Political Economy of the Coffee Commodity Chain.” This is a revised version of a paper presented at the annual meeting of the American Sociological Association, Washington, D.C., August 19–23, 1995. Portions of this analysis were also presented at the annual meeting of the Pacific Sociological Association, San Francisco, April 6–8, 1995.     

Growth with pollution: unsustainable development in Taiwan and its consequences

During the 1980s, economic development in Taiwan received much attention in development studies. The “Taiwan miracle” has made Taiwan rich and famous. This article examines an often ignored aspect of development—environmental quality—and argues that Taiwan has achieved “growth with pollution” that will not increase but decrease the welfare of the people in the long run. The root cause of Taiwan's environmental degradation rests on the obsession with fast economic growth at any cost by the powerful coalition between the ruling Kuomington and the capitalists. The article argues that the case of Taiwan is far from being a “model” for developing countries. Taiwan's experience of “growth with pollution,” on the contrary, should stand as a warning to other developing countries pursuing similar development paths. Chun-Chieh Chi received his B.A. in sociology from Tunghai University in Taiwan, and his M.A. and Ph.D. in sociology from State University of New York at Buffalo. He is assistant professor of sociology at the University of Tulsa, Tulsa, OK 74104. His research interests include sustainable development in Taiwan and Kenya, indigenous people and the environment, and women and the environment in developing countries.     

State power, state embeddedness, and national development in less developed countries: A cross-national analysis

In this article, we test the prevailing statist argument about the state’s contribution to economic development in less developed countries (LDCs). State power in terms of centralized control of societal resources has been long considered a primary factor for economic growth. From the embeddedness perspective, the state’s effective embedding in the economy advances productive growth, while state power actually operates as a structural precondition of such policy action. Featured in our measurement are representative and financial embeddedness (operationalized as the central government’s tax income and its lending to the private sector and local states, respectively). The empirical testing is based on a pooled cross-national data of sixty-one underdeveloped countries. As indicated from modeling both manufacturing growth and increase in GNP per capita as dependent variables (during the period 1975–1990), the state power variable does not produce expected growth outcomes. However, two embedded state measures display significant but sectorbiased growth effects only for manufacturing production. Herein we further compare strong state power countries with weak ones, concluding that state power serves as a structural prerequisite so that late industrialization for LDCs can benefit from the growth coalitions in which the central state collaborates with (rather than dominates) actors at the subnational level of society and authorities. Ming-Chang Tsai teaches sociology in Taiwan. He was Fulbright Visiting Scholar in the Institute for Social, behavioral, and Economic Research, University of California at Santa Barbara (1998–99). He wishes to thank professors Diane Davis and Ian Roxborough for invaluable comments. An earlier version of this article was presented in the American Sociological Association Annual Meeting, August 1997, Toronto.     

Foreign aid and the economic growth of developing countries (LDCs): Further evidence

The objectives of this article are to revisit the critical role that foreign aid presently plays in the economic growth of the LDCs and to examine the nature of its utilization in those countries which heavily rely on foreign aid. Other sources of economic growth such as capital (physical and human capital), raw labor, technological changes, and the degree of political and civil liberties will also be considered. Using average cross-sectional data for eighty countries over the 1971–1990 period, the study shows that foreign aid has a statistically positive effect on economic growth in developing countries. Lack of political and civil liberties is found to have a negative, but statistically marginal impact on economic growth. A policy implication which may be drawn from the study is that foreign capital inflow can have a beneficial effect by supplementing domestic savings rather than replacing them. Bichaka Fayissa, Ph.D., is Professor of Economics at Middle Tennessee State University, Murfreesboro, TN. He has published in theInternational Journal of Social Economics, World Development, Keil World Economics, Quarterly Review of Economics and Finance, Applied Economics, Economia Internazionale, Journal of Economics and Finance, Journal of Legal Economics, and several other journals.     

The state of politics in Africa: The corporatist factor

In the past decade, studies of thestate in Africa have either suggested its pervasiveness in both political and economic life or have concentrated on its nonrepresentative (i.e., undemocratic) nature and its dependence on foreign capital for its survival. This study adopts a different reasoning. It suggests that thestate in African countries should be viewed as grappling with problems of managing society within the context of underdevelopment, a task that is increasingly becoming more difficult given the recurring economic crises on the continent. Politics ofcorporatist organization thus become an attractive option for the state to express its authority and attempt to legitimize its existence.     

The European community's system of generalized tariff preferences: A critique

In mid‐1971 the European Community introduced a system of generalized tariff preferences for less developed countries, hailing its scheme as a ‘generous response’ to the needs of those countries. This paper explores tentatively how generous the European tariff preference scheme is, in terms of its likely stimulus to exports from and investment in the less developed countries. It also assesses the impact of the scheme on the assumption of United Kingdom membership in the Community. It concludes that whether Britain is in or out, the European scheme, based as it is on rather restrictive tariff quotas keyed to past trade data, will offer little help in furthering the economic objectives of developing countries.     

Enhancing food access in Africa: The Botswana experience

A combination of drought and misguided economic policies have resulted in decreased food security and frequent famines in many African countries in recent years. Botswana is a rare exception that has survived its worst drought without a single death from hunger. It has adopted a National Food Strategy that has both long term and short term policy dimensions. The long term goal is to increase food security through improved agricultural production and diversified rural economy. In the short term, the goal is to provide food security to the most vulnerable segment of its population. The two components of the food access program are human supplementary feeding and cash for work. The article examines Botswana’s experience in enhancing food security, based on an exploratory case study of the public employment program (cash for work) in the South East District of the Republic of Botswana. Sisay Asefa is associate professor of economics at Western Michigan State University. His current research is in country development studies, African (economic) studies, and rural/agricultural development studies. He is the author of “The Role of the Government of Botswana in Increasing Rural and Urban Access to Food” inSouthern Africa: Food Security Policy Options, edited by M. Rukuni and R. H. Bernesten, 1989 and editor ofWorld Food and Agriculture: Economic Issues and Problems (W. E. Upjohn Institute, 1988).     

Immigration to Ghana

Abstract

The globalization of international labor migration is manifest in all countries now engaging in migration systems that are growing in size and complexity and producing an increasing diversity of flows. Furthermore, many of the processes that create and drive these systems operate on a worldwide basis, the consequence of economic globalization, capital mobility and widespread realization by governments that human resources can be traded for profit like any other resource.

This paper looks at Ghana's immigration policy in the light of its economic situation. It characterizes Ghana's immigration policy as geared towards using immigration to attract critical foreign investment, transfer of technology and human resource capital/skills for socio-economic development. Running concurrently is the policy to prevent illegal immigration, transnational crime, economic exploitation, social corruption and human trafficking.

The paper concludes that when the economic situation of Ghana was buoyant in the 1960s it attracted many immigrants especially from neighboring West African countries, however when the country's economy saw a down turn, immigrants were used as a convenient scapegoat and many were expelled. The irony though is that while the current poor economic situation of Ghana has made Ghanaians to immigrate to other countries, the political stability of the country does attract other West Africans and non-Africans and it is affording the country the opportunity to streamline its immigration and citizenship laws.     

Financial mobilization and allocation: The South Korean case

There are two major competing views on how financial resources may best be mobilized and allocated to accelerate economic growth of developing countries. One emphasizes the importance of competitive financial markets; the other stresses the role of the developmental state. This study examines one of the world’s fastest-growing economies during the past few decades, that of South Korea, focusing on its experience with financial resources mobilization and allocation. It finds that a state-centered approach provides a better, albeit imperfect, account of the South Korean postwar experience, in which the state has assiduously influenced the access to, and cost, of, available financial resources, going far beyond merely “getting the prices right.” Lawrence Chang is assistant professor of political science at Kean College of New Jersey. His publications include articles on Chinese politics inChina Spring and the political economy of East Asian development inMid-American Journal of Politics. He is currently completing a study of direct foreign investment in the People’s Republic of China.     

(Neo-)extractivism – a new challenge for development theory from Latin America

This paper addresses new challenges and identifies starting points for development theory following recent debates in Latin America on ‘new or neo-extractivism’. It focuses on the concept of neo-extractivism and the context of its emergence, and on the changing role of the state. Looking at a number of social economic indicators, we find that, even after considering differences between countries, (neo-)extractivism is not merely a temporary economic strategy in the region. Instead, it exhibits features of a consolidated development project. Empirical evidence from the region shows the fundamental implications of resource-based development paths in politics, social relations and territorial orders. To grasp these implications conceptually, we argue for a shift in theoretical perspectives related to the link between development and resource extraction. Key elements for such a shift are to be found in recent studies in rentier theory and politics and new approaches in the field of political ecology.     

阿拉伯海湾国家对外援助的战略、特点与影响

阿拉伯海湾援助国是新兴援助国的重要成员,在国际发展援助中的贡献与日俱增。援助国的实践服务于政治、经济与文化战略需求,与石油红利、君主制政权、历史地缘关系、伊斯兰文化的宗教属性及地区安全环境密切相关。从外交战略看,援助政策被纳入国家总体战略,在保持对战略重点区域持续投入的基础上向全球扩展,主要体现为团结援助和南南合作;从经济战略看,在全球范围内部署和循环利用石油财富,旨在加速推进国家经济多元化政策;从文化战略看,宣扬伊斯兰传统文化中慷慨施舍的精神,达到提升国家地位、塑造地区影响力之目的;从援助特点看,以王室和中央政府主导的援助政策,兼顾双边和多边的援助渠道,援助分配聚焦受援国经济与社会发展领域、积极对接国际发展合作新机制。援助不仅通过人道主义援助缓解了贫困国家的发展难题,而且彰显了其在国际发展合作中的多重作用,与中国深入践行合作共享的发展理念息息相通。