The Soviet Periphery: Economic Development of Belorussia

This paper analyzes the development of Belorussia, focusing upon its industrialization in the post-war period. Belorussia has changed from a lesserdeveloped part of the Soviet periphery to one of the USSR's more developed regions. This has been the result of a number of locational advantages for certain types of industry, particularly machine-building and chemicals. Its experience is similar to the U.S. periphery, and in conformity with Western regional development models, but apparently a typical of most of the Soviet periphery. Journal of Economic Literature, Classification Numbers: 052, 124, 940.     

Soviet Transport Trends, 1950–1990

This paper examines links between the Soviet transport sector and other sectors of the economy. In the 1970s, the transport sector was perceived as a bottleneck. As growth slowed in the late 70s, howevar, the transport sector was able to meet the economy's demands. At present, the transportation of oil and gas is placing an increasing burden on the transport sector, but pipelines can absorb the demands, freeing up rail transport capacity for other commodities. The willingness of Soviet officials to make the appropriate administrative reforms, apply new technologies and increase investment in this sector will determine transport's ability to meet future demands. Journal of Economic Literature, Classification Numbers: 052, 124, 731.     

Privatization in Transition Countries

Two economists at the International Monetary Fund review a selection of empirical studies on privatization experiences in transition countries. The purpose is to examine the relative performance of privatized and state owned enterprises. In so doing the importance of privatization method is stressed, as is the importance of the background market environment. The role of de novo firms in enlarging the private sector in transition economies is also reviewed, along with the question of whether privatization efforts support or hinder de novo private-sector development.     

‘Going away on foot’ once again: the revival of temporary labour migration from Russia's Dagestan

This article addresses temporary labour migration – known in Russian as otkhodnichestvo (going away on foot) – from the Russian republic of Dagestan. The discussion is situated within reviews of current work on migration in the former Soviet Union, push-pull factors determining migration behaviour in the North Caucasus, and the historical importance of otkhodnichestvo in imperial Russia and the USSR. The paper then turns to the results of a census conducted in summer 2006, which found that most migrants come from Dagestan's mountainous southwest, frequently obtain work at locations characterized by economic growth and high pay, and rely on ethnic or communal networks as a basis for choosing employment sector and destination when searching for work.     

Examining the Shift to Services: Malaysia and China Compared

ABSTRACT

When do countries that pursue industrialisation through the development of their manufacturing sector shift to services? Does the shift take place because manufacturing development has matured with the development of indigenous technology? What is the role of policy in this shift? Understanding this shift is crucial due to the changing nature and role of services in development and its association with deindustrialisation. This article seeks to compare Malaysia and China’s shift from manufacturing to services and the challenges and prospects of such a shift. The main findings indicate that Malaysia’s shift occurred earlier than China’s and was prompted by the failure of its manufacturing sector to deepen as it has not produced any world-class domestic technology firms. China’s more recent shift is associated with on-going upgrading in its manufacturing sector while some global domestic technology firms have also emerged. Both countries used similar policies to drive this shift in response to domestic and external changes. The services sectors of both countries are still dominated by domestic market orientated, labour-intensive services. Developing competitive knowledge-intensive services in both countries will need a reform of their state-owned enterprises and the production of more talents that are needed for these types of services.     

Taming Risks in Asia: The World Bank Group and New Mining Regimes

Abstract

Despite the admonishments of the 2003 Extractive Industry Review, the World Bank Group (WBG) has continued to promote the expansion of mining activities in resource-rich client-countries. While maintaining its mantra on the economic benefits of the sector in cash-strapped countries, in recent years poverty reduction and environmental sustainability have become the new buzzwords to justify the need for the WBG to remain actively involved in the sector. Building on the cases of the Philippines, Papua New Guinea and Lao PDR, this paper analyses this new socio-environmental narrative in conjunction with the highly political nature of the role played by the WBG in the mining sector of its country-clients. The cases demonstrate that the World Bank has played a key role in influencing a wave of new mining regimes in the region. Further, these new regimes, which comprise multilateral social and environmental safeguards, circumscribe the risks faced by industry, rather than by local populations. While successful in stimulating foreign investments in the sector, these regimes might prove ineffective in taming local and national resentment against mining activities. Crucially, the engineering of mining regimes and norm-settings in multilateral arenas raises concerns about the legitimacy of the transformations of roles and responsibilities assigned to local mining stakeholders and the possible subsequent contraction of local political spaces.     

Restructuring the Mechanism of Foreign Economic Relations in the USSR

An up-to-date paper by the Deputy Chairman of the State Commission on Foreign Economic Relations, USSR Council of Ministers, details recent economic reforms in the foreign trade sector of the USSR. Particular emphasis is placed on direct business relations between Soviet enterprises and their foreign counterparts, and on joint ventures with CMEA partners as well as firms in Western and developing countries. Anticipated changes in the role exports and imports are to play in the Soviet economy are also discussed. Journal of Economic Literature, Classification Numbers: 052, 124, 420.     

Bennu: Africa innovating itself out of underdevelopment

ABSTRACT

This article is a direct challenge to the established view reflected in the World Bank's Berg report, that structural adjustment programmes and the markets alone will resolve Africa's underdevelopment challenges. This article completely accepts that science and technology lead to products and services that create efficiency, productivity and wealth. It accepts different dynasties of industrialisation from land use (agriculture and mining), labour-intensive activities, heavy machinery, assembly lines, branding, information technology and intellectual property, but shows how – in the current global paradigm – this has led to an anomaly: while development aid flows from more industrialised to less industrialised countries, larger sums of global investment capital leave poorer countries for richer countries in search of higher returns. Having accepted the ‘returns-seeking’ nature of capital, a strategy is proposed for Africa to engage with this reality. In contrast with the Berg view, it is argued that the public sector is a key stakeholder in the developmental process. As has been put forward by Thabo Mbeki, several African countries exhibit ‘two nations’ characteristics. If this is true, all seven dynasties of industrialisation can be simultaneously developed through interventionist government, which could not happen though markets alone. A direct policy and strategy positioning in technology-related sectors that support increasing returns should be developed. Economic development bodies should have scientific and technological people to ensure technological focus in development strategies.The article demonstrates that a different value paradigm is needed. Large numbers of poor people can provide markets for goods that can yield returns for capital that are similar to markets of small numbers of rich people. A shift in the development model from Public Private Partnerships (PPP) to Public Entrepreneur Private Partnerships (PEPP) is suggested to maximise employment through sustainable entrepreneurship. Through spearheaded emerging technologies such as information convergence technologies, cellular technologies such as mobile banking, resource management and alternate energy, Africans can create output that attracts global investment capital – and not only aid. This article explores how, through investment in activities that generate increasing rather than decreasing returns, Africa will innovate its way out of what appears to be a stubborn history of underdevelopment.     

National Competitiveness in Comparative Perspective: Evidence from Latin America

The term competitiveness is widely applied as a catch‐all for investor‐friendly policies and institutions. This article argues that sloppy applications of the term ignore the possibilities of policy tradeoffs and varieties of institutional choices. Popular conceptualizations of the term describe three discernible clusters of economic policies and institutions. One cluster captures openness to international trade; a second gauges regulatory impediments to private sector competition; a third refers to public sector investments in human capital, security, and infrastructure. This essay develops three empirical indexes to operationalize these clusters and shows that these concepts are not only theoretically but also empirically distinct. In particular, the correlation between these measures is not especially high in a sample of Latin American countries. The larger economies in the region tend to be more competitive on the regulatory and public goods dimensions but fall well behind smaller economies in terms of external competitiveness, broadly conceived.     

Appendix

Abstract

An unresolved controversy exists in development literature over the nature and function of the informal sector in urban areas of the Third World. The controversy revolves around the presumed relationship between the modern system of industrial production (often termed the “formal sector”) and that part of the urban economy operating outside it (the “informal sector”). The earlier view that the informal sector is a source of employment which can be realized if the linkages between the two sectors are improved through policies designed to regularize the informal sector, has been shown to be non-generalizable and even inaccurate. Increasingly, researchers have come to the conclusion that the modern industrial sector in the Third World is parasitic and detrimental to the development of the remainder of the urban economy. Their research implicitly or explicitly points out that a net transfer of value from the informal sector to the formal sector is occurring. The transfer is in the form of undervalued labor drawn from the informal sector, undervalued goods and services produced in the informal sector which are directly or indirectly consumed in the formal sector, and a transfer of the welfare burden to the informal sector. In the process, that segment of the population in a Third World city that earns a living primarily in the informal sector is moving toward a situation of increasing immiseration.     

CPI(ML), India documents and discussion

What is meant by the term “industrialisation”? We would define the concept in the very broadest sense so that it includes not only the idea of technological change (e.g. the introduction of machine technology into agriculture, mining, manufacturing, construction and the like) but also a radical social, economic and political transformation of the societies in which it is occurring. For instance it can, but need not necessarily entail massive urbanisation. It can, but need not necessarily encompass the development of industrial capitalism and the growth of the proletariat. The specifics of each historical instance needs therefore to be treated as problematic, not taken-for-granted. Our aim in this paper is not to examine the broad sweep of social change. The notion of industrialisation as a very diverse process, however, informs our thinking, even though we focus more narrowly on change in just one sector of one society, viz manufacturing in Malaysia. In particular, we will try to establish the extent to which a capital goods sector has developed there, the form it has taken and the degree to which linkages have been formed between capital goods producing companies and the local economy.     

Japan’s Quest for “Soft Power”: Attraction and Limitation

Japan is seeking to project its “soft power” through the allure of manga and anime in its public diplomacy. The production, diffusion and global consumption of manga and anime are driven by market forces and consumer tastes and not by the Japanese state. However, the latter is seeking to harness this popular culture to burnish Tokyo’s international image. Despite the attractiveness of Japanese pop culture and other more traditional forms of public diplomacy, Tokyo’s pursuit of “soft power” and a good international image is undermined by its failure to overcome its burden of history.

Chaebol and the Turn to Services: The Rise of a Korean Service Economy and the Dynamics of Self-Employment and Wage Work

ABSTRACT

This article examines the growing insecurity for the Korean self-employed who were once responsible for a large proportion of domestic service operations. Since the 1980s, changing regional and domestic economic circumstances, the restructuring of regional and chaebol manufacturing operations and liberalisation of the domestic service economy had led to enterprise diversification into the distributive sectors and the systematisation of the domestic service economy. Conducting a historical analysis of service sector development and decomposing the Korean Economically Active Population survey (1989–2011), this article charts the process of Korea’s distributive sector development and its effect on the self-employed. It argues that chaebol systematisation of Korea’s service sector consolidated the domestic economy after 1997 and exerted pressure on the country’s self-employed. Large businesses formalised the service sector, displaced the self-employed, and instead generated mostly non-regular wage work, proletarianising a significant segment of the service workforce.     

Rival Transnational Networks,Domestic Politics and Indonesian Timber

Scholars interested in the promotion of “good governance” and those interested in transnational advocacy networks both are concerned with the potential power of external actors to alter domestic political structures. This article analyses the networks promoting neo-liberalisation and democratic practices in Indonesia's forestry sector as rival transnational networks. The analysis finds that the Asian economic crisis and collapse of the Suharto regime provided a political opening for alliances between the two rival networks that helped to bring down the ruling oligarchy in timber, but the power of domestic oligarchs controlling the sector remains strong. In brief, there are limits to the power of both external networks vis-à-vis domestic power relations. Given the financial resources and constraints on non-governmental organisations, they may be unable to alter the deep structures of capitalist accumulation and distribution based in Indonesia's forest resources.     

From Renascer to Velho Chico: negotiations between cordiality and modernity in the Brazilian telenovela

ABSTRACT

This article takes as its focus the main Brazilian cultural and media product, the telenovela or soap opera, to discuss the characteristic of the Brazilian personality referred to as the homem cordial (“cordial man”). The article analyses two telenovelas: Renascer (1993) and Velho Chico (2016), which, written by the same author, but in very different historical contexts, sought to recover the trait of cordiality in its essence. In its comparison of the two telenovelas, this study presents and discusses the changes, permanencies and negotiations of a cordial tradition in the face of a particular aspect of modernity represented by both the process of urbanisation and by television itself.     

The EU‐SA free trade arrangements

The rehabilitation of the DRC's economy in general, and logging in particular, will require the full collaboration of the state, the private sector and the people. But is this possible, given the significant challenges that pose a threat to such collaboration? The article looks at the issues with regard to the forestry sector.     

Trends of Marxian Ratios in South Korea, 1980–2014

ABSTRACT

This article explores the dynamics and contradictions of capital accumulation in South Korea from 1980 to 2014 by analysing the rates of surplus value and profit and criticises two theses of financialisation and income-led growth. The rate of surplus value soared after 2000 because the real wage growth was contained by the neo-liberal onslaught against workers. The profit rate consistently declined after 1987, paving the way for the 1997 crisis and its main driver was the rising organic composition of capital. After the 1997 crisis, the profit rate rebounded for six years thanks to the intensified exploitation of workers. From 2002 until the 2008 global financial crisis, the rate of profit dropped again. However, contrary to the financialisation thesis, there has been no substantial transfer of surplus value from the real sector to the financial sector. Our results also show that the accumulation rate determined income distribution, not vice versa, contradicting the income-led growth strategy, now popular among the Korean progressives. Marxian macro-dynamics is operating as usual in Korea.     

The outsider in the novels of Naguib Mahfouz

The novels of Najib Mahfūz, or — to use the more familiar Western spelling of his name, Naguib Mahfouz — offer a progressive study of the outsider in relation to Egyptian middle‐class society. In the early novels it was poverty which set the character outside the gale of a normally functioning community. The poverty of Mahjub in Modern Cairo (al‐Qahira al‐jadida) (1945) and of Hasanayn in A Beginning and an End (Bidaya wa‐nihaya) (1949) is the cause of their isolation in those novels.

The Trilogy (i: Bayn al‐Qasrayn; ii: Qasr al‐shawq: iii: al‐Sukkariyya) (1956–7) offers a large‐scale study of an alienated personality. It is Kamal, who, with the house in Bayn al‐Qasrayn, provides the link between the three generations depicted in the Trilogy. Alienation here is rooted in disappointment and frustration brought about by the mere process of growing up and disillusionment, religious, social and emotional.

The post‐realistic novels after the Trilogy offer bold sketches of a series of outsiders and exiles: the outlaw in The Thief and the Dogs (al‐Liss wa‐1‐kilab) (1961), the disgraced politician in Autumn Quail (al‐Summan wa‐1‐kharif) (1962) , and a group of social and political exiles in a small pension called ‘Miramar’ in Miramar (1967).

In the late seventies Mahfouz was still writing short novels on outsiders, but the wheel has come full circle. They are the young men who have obtained their degree, got the standard government or public sector jobs, been accepted by the sweetheart and her family and are formally engaged, but still cannot find themselves a place in a society highly inflated with petrol dollars and mushrooming wealth, where it is near impossible for a young couple to afford the huge sums necessary for any new accommodation.     

“Neo-Sultanistic Tendencies:” The Trajectory of Civil-Military Relations in Cambodia

Abstract

This study examines the evolution of civilian control in Cambodia and its impact upon that country’s security sector reform efforts. It argues that Cambodia has witnessed a historically entrenched path dependence of civil-military relations, whereby ruling personalities and parties have consecutively dominated subservient, authoritarian militaries. Today security forces appear as a partisan, corporate arm of the Cambodian People’s Party (CPP). While this has ensured civilian control, it is not an institutionalized form of control. Instead Prime Minister Hun Sen has personalized supremacy over security forces through what might be termed “neo-sultanistic tendencies.” Yet how have Cambodia’s civil-military relations evolved? What is the current state of civilian control and security sector reform efforts? What is the future of civil-military relations? This analysis addresses these questions.     

The Regulatory State in Developing Countries: Can It Exist and Do We Want It? The Case of the Indonesian Power Sector

Abstract

In the rush for development, the regulatory state has assumed the mantle of a new panacea: the instruments and mechanisms necessary for better government, better governance, and better lives. This paper poses two basic questions in response to the rise of the regulatory state and its increasing diffusion into developing countries. First, can regulatory states exist in developing societies or, more accurately, can effective regulatory states emerge and hope to function in a manner similar to their counterparts in developed countries and deliver the types of benefits and outcomes they promise? And second, do regulatory states offer the most effective modalities for delivering enhanced social well-being? By unpacking the concept of the regulatory state and addressing its underlying assumptions and implicit normative values, it is suggested that the modalities of governance entailed in the regulatory state model may not be well suited to developing countries, hurting rather than enhancing governance outcomes. These issues are explored in relation to the Indonesian energy sector, specifically the upstream electricity generation, transmission and distribution sectors, and the machinations involved in governing the sector.