The meaning of war: A heterodox perspective

This article raises serious methodological, conceptual, historical and empirical questions concerning the notion of China as the next world superpower. The most dynamic sector of growth is the private sector, but within that sector foreign capital is growing the fastest, especially in strategic export sectors and increasingly in finance and the domestic market. Historically China has passed from a semi-colony to a collectivist state to a state capitalist economy toward a neo-liberal economy which contains the seeds for the re-emergence of a foreign capitalist-dominated economy. Contradictions in the current neo-liberal economy are leading to increased class struggle especially in the countryside and increasing tension between the super-rich Chinese bourgeois allied to foreign capital and ‘national statist’ sectors of the governing class. The efforts by the new leadership to ameliorate the contradiction through increased social spending are too little and too late.     

Regulation of Liberalised Network Industries: Infostructure as a Missing Link

The aim of this paper is to evaluate how infostructure has been reformed in the liberalisation process of network industries, which has involved third party access to the network through a comparison of the electricity, railway, and civil aviation sectors in Switzerland. Our theoretical argument posits that infostructure is a missing link in the study of the regulation of liberalised network industries. Infostructure is defined as the control and command services that are necessary for monitoring the access to and optimising the uses of infrastructure. Our empirical comparison of the sectors aims at answering the principle question: What is the impact of the management of infostructure on the liberalisation process and the structure of liberalising markets? This study of the liberalisation of network industries in Switzerland highlights the potential strategic function of infostructure in the context of opening to competition and internationalising markets. Infostructure management can impact infrastructure ownership and service operation in terms of market structure and constrain access to the infrastructure and the market. Infostructure could also weaken the capacity to regulate the entire sector from regulatory agencies, particularly when self‐regulatory arrangements control third party access to the network.     

Building infrastructure in southern Africa: Introductory remarks'

A key finding of a study for the African Development Bank which the author directed was that co‐operation in building infrastructure should be the cornerstone of immediate integration efforts in Southern Africa. A priority is to restore, repair and to enhance the region's infrastructure on a basis that can be sustained and financed.

What a regional approach can make possible is illustrated through an examination of the electricity power, transport and communications, and water supply sectors. Recommendations include the progressive withdrawal of the state from dominating the provision of infrastructure and utility services, while strengthening its role in the regulation of private sector activity, the creation as far as possible of a single regional market for major services and outputs, harmonisation of tariff and taxation policies, creating incentives for investment and involving popular participation in infrastructural projects.     

Traditional Excluding Forces: A Review of the Quantitative Literature on the Economic Situation of Indigenous Peoples,Afro‐descendants,and People Living with Disability

Unequal income distribution in Latin America and the Caribbean is linked to unequal distributions of human and physical assets and differential access to markets and services. These circumstances, and the accompanying social tensions, need to be understood in terms of traditional fragmenting forces; the sectors of the population that experience unfavorable outcomes are also recognized by characteristics such as ethnicity, race, gender, and physical disability. In addition to reviewing the general literature on social exclusion, this article surveys several more specific topics: relative deprivation (in land and housing, physical infrastructure, health and income); labor market issues, including access to labor markets in general, as well as informality, segregation, and discrimination; the transaction points of political representation, social protection, and violence; and areas in which analysis remains weak and avenues for further research in the region.     

South Korea-China economic relations: Trends and prospects

Since the establishment of official diplomatic ties in 1992, bilateral economic relations between Korea and China have rapidly improved. The economic dynamism in China is expected to continue in the future. As continued economic development of China gains momentum, the economic relationship between the two countries will further be strengthened. However, future bilateral economic cooperation will take a path that differs significantly from the past. Both the quantity and quality of economic relations will increase and improve. In particular, Korea’s investment in China, which tends to be concentrated in the manufacturing sector, will broaden out to nonmanufacturing sectors, with the strategic motive of gaining access to China’s huge domestic market. His publications includeNortheast Asian Economic Cooperation: Perspectives and Challenges (KIEP, 1991).     

Working On,Through and Around the State: The Deep Marketisation of Development in the Asia-Pacific

Abstract

This article describes an important new push by international financial institutions towards broadening and deepening capitalist social relations in the underdeveloped world in ways well beyond Washington Consensus structural adjustment or even post-Washington Consensus forms of institutionally-oriented “participatory neo-liberalism.” Described here as the “deep marketisation of development” (or simply “deep marketisation”), this process is attracting increasing resources that are formally allocated directly to private actors around states, while also demanding and promoting shifts in state form and function that relate to cultivating “enabling environments” for capital and facilitating “access to finance.” The article begins by conceptualising deep marketisation and placing it in historical and political context. The second section presents examples of deep marketisation in action in the work of the World Bank's private sector arm, the International Finance Corporation, in the Asia-Pacific. The article concludes by highlighting some serious concerns with the deep marketisation agenda.     

A Comparative Assessment of the Information Technology Services Sector in India and China

The purpose of this paper is to assess the nature of competition in the information technology (IT) services sector between India and China. Using primary and secondary data sources, we compare and contrast the strengths and weaknesses of the IT services sector in the two countries along the main dimensions of Porter's competitive advantage model. The principal findings indicate that the IT services sectors in the two countries are distinctively different, have developed along different paths and are highly complementary to each other. China has a well-established hardware sector and its IT services sector focuses mostly on servicing its domestic market. India's IT services sector is predominantly export orientated with focus on the US and Western European markets. Contrary to popular beliefs, given the complementary characteristics of the IT services sectors in India and China, it is unlikely for the two countries to compete against each other in the near future and greater strategic co-operation between IT service providers in the two countries is a more likely outcome.     

More with Less? Fiscal Decentralisation,Public Health Spending and Health Sector Performance

Decentralisation is considered a panacea for deficient public sector performance by many. However, recent trends of health sector recentralisation in several OECD countries suggest the opposite. Taking on a cross‐country perspective, I examine two hypotheses, namely that decentralisation leads to an increase in public health spending (H1) and to poor health sector outcomes (H2). The evidence I present suggests that decentralising spending tends to lead to larger public health sectors and to poorer health sector outcomes. However, decentralising tax authority has no effect on the size of the health sector and may actually have a positive effect on health sector performance. The broader lesson is that while general fiscal decentralisation research tends to imply that its conclusions are valid for all policy areas in a similar way, sector‐specific insights can reveal a more nuanced view on the consequences of fiscal decentralisation.     

End of an Era? The Landtagswahl in Bavaria,September 2008

The biotechnology and venture capital sectors have flourished in Germany during the 1990s, a surprising development that finds its roots in the policies of the federal government. Years before the private sector became engaged, the federal government had identified biotechnology and venture capital as important for job creation and Germany's world‐wide status as a technological leader. Its success in leading a renaissance in these sectors sits uneasily with dominant understandings of the German state as ‘semi‐sovereign’ (Katzenstein) or ‘enabling’ (Streeck) ‐ as institutionally incapable of defining policy against or without the active participation of societal actors. This article uses a history of the biotechnology and venture capital sectors since the 1970s to re‐examine the relationship between the central state and lower governments as well as organised interests in Germany. The evidence demonstrates the federal government's autonomy in formulating policy priorities as well as its ability to enhance the capabilities of lower level governments and private sector actors to achieve the objectives it defined.     

Dangerous Liaisons? State-Chaebol Co-operation and the Global Privatisation of Development

This article analyses the relationships between private and public sectors in shaping the South Korean development assistance agenda. Since 2008, subsequent Korean administrations have made development assistance a keystone of their foreign policy. Fast growing middle-income countries seem to be favourite development partners for these administrations and the parallel increase in the overseas expansion of Korean chaebol in these developing partner markets suggests that interactions between private economic interests and development assistance exigencies have been numerous. Based upon fieldwork on Korean development assistance, this article shows that Korean conglomerates are both informally and structurally included in decision-making processes as a result of the specific governance architecture inherited from the developmental state era. But recently, since its accession to the Development Assistance Committee in 2010, Korea has also been institutionalising private actors’ inclusion in official development assistance delivery mechanisms. This should be understood as part of a global agenda that has increasingly privatised development formulation and delivery. The inclusion of chaebol in official development assistance through institutional mechanisms might actually be more aligned with Organisation for Economic Co-operation and Development norms than the existing literature suggests.     

China and Vietnam on the road to the market

Adopting an analytical approach grounded in the literature on the impact of industrial relations (IR) systems on foreign direct investment (FDI) decisions, this article assesses the workplace practices in Hong Kong-invested garment factories in the regulated IR system in Cambodia. Cambodia opened up FDI in 1993. The country has attracted FDI in light manufacturing, mainly in the export-orientated garment and footwear sectors. The USA is the largest trade partner of Cambodia in garment exports because of a unique agreement, US-Cambodia Trade Agreement on Textile and Apparel. The Agreement granted a quota for Cambodian garment export in return for better compliance with international labour standards. The trade agreement and private sector initiatives have combined to bring about a “labour advantage” in Cambodia. This labour advantage will continue to be its competitive edge in a post-Multifibre Agreement world, and other developing countries may well follow Cambodia's model.     

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.     

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.     

AID'S CRISIS OF LEGITIMACY: CURRENT PROPOSALS AND FUTURE PROSPECTS

Aid to Africa is less threatened by the current foreign policyand fiscal pressures than by a complex crisis of legitimacyregarding the enterprise. Despite official rhetoric to the contrary,most aid insiders are disappointed by the current achievementsof aid. The current malaise has resulted in a considerable fermentof thinking about how to make aid more effective. This articledescribes four sets of proposals that have been advanced. Theseinclude proposals to make aid more selective, as well as toadopt a more need-based approach, which includes proposals topromote government ownership, and to focus aid on non-governmentalactors in the private and voluntary sectors. It is argued thateach of these proposals is desirable, but that together theyare probably incompatible, certainly difficult for the donorsto implement and unlikely to address the real problems thathave plagued aid and African development these last thirty-fiveyears. The real challenge, not addressed by most current reformproposals, is to change how donors and recipients manage aid,so that it contributes to a sound development strategy. Thearticle concludes that the main impulse for reform must comefrom African countries themselves, rather than from the donorcountries.     

The semi‐formal sector and the Turkish political economy

The general dichotomy in developing economies between the ‘formal’ and ‘informal’ economic sectors needs to be refined to account for the ‘semi‐formal’ sector: one whose activities appear to be governed by formal rules and procedures but are, in fact, largely unregulated and unrecorded by the state. Using Turkey as an example of a transitional, developing economy, the paper situates the semi‐formal sector in relation to the other two. Also important to examine is the level of autonomy which the semi‐formal sector enjoys in relation to the state and other economic sectors. Autonomy depends on access to resources, and the use of these resources in pursuit of economic, political, or socio‐cultural agendas. Three comparative lessons can be drawn: 1) despite state endeavours, a sizeable portion of seemingly formal economic activities go unreported and unregulated; 2) the semi‐formal sector helps the perpetuation of a mutually beneficial relationship of mutual neglect between state and society; and, 3) the sector's political agendas may best be characterised as one of ‘oppositional pragmatism’.     

The return of the regulator: Kazakhstan’s cotton sector reforms since independence

What would a ‘good’ industrial policy in the realm of cotton production look like? This article seeks to address this question through a focus on reforms to the cotton sector in Kazakhstan. In contrast with neighbouring Uzbekistan and Turkmenistan, administrators in Kazakhstan had widely freed the cotton sector from government control as early as 1998. Agricultural collectives had been replaced by small private farms, and commercial cotton processors and traders entered the sector. However, in 2007, regulation tightened again and forced ginneries to use a complex warehouse receipt system without making sure that it was accepted by stakeholders and without appropriate institutions for implementing it in place. Moreover, it imposed financing restrictions on ginneries, which were major loan and input providers to farmers. In the following years, private producers and investors turned away from cotton, and cotton area and output fell substantially. We position our analysis in the broader debate about the right approach to industrial policy and argue that the cotton sector performance after 2007 shows how ill-designed regulation and government interference can turn a promising economic sector towards decline.     

Political Economy of Southeast Asian Borderlands: Migration,Environment, and Developing Country Firms

The Chinese way of development shares many characteristics with the East Asian developmental state model. Key elements of this shared development model include state control over finance, direct support for state owned enterprises by the government, import substitution industrialisation in heavy industry, a high dependence on export markets and a high rate of domestic savings. Even the reform of corporate governance is not likely to change the basic features of the East Asian model in China. Among East Asian countries, China shares more similar characteristics with Taiwan rather than with Japan or Korea since China, like Taiwan, also has an economy of dual structure that divides the public and non-public sectors.     

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.     

Production networks,economic integration and the services sector: Implications for regional trade agreements in southern Africa

Debate on an appropriate framework for economic integration in southern Africa has hitherto focused largely on matters relating to trade in final goods, with little analysis of the potential benefits of production sharing and fragmented trade, or of challenges related to the accompanying role of the services sector. The first goal of this article is thus to explore the possible benefits for the development of specialisation and trade expansion related to the international fragmentation of production, and whether such benefits may be better harnessed by southern African countries in a context of regional integration. Secondly, the critical role of the services sector in production-sharing arrangements leads to questions about developing country services sectors and regional versus multilateral services liberalisation. The article therefore considers the importance of the services sector in the fragmentation context, and the growing debates surrounding services aspects of developing country regional trade agreements. It is argued that while there may be a case for the promotion of production-sharing arrangements in regional trade agreements in southern Africa, key constraints that continue to hinder the region's trade and development agenda remain the conflicting rules of origin in economic arrangements with overlapping membership, and non-tariff barriers to trade, particularly intra-regional transport costs.     

Economic partnership agreements: African–EU negotiations continue

When they were first proposed by the European Commission to the African, Caribbean and Pacific countries — all signatories to the Lome and Cotonou agreements which provided them with preferential access to the European market — economic partnership agreements were presented as supporting regional integration and development. However, most African states regarded economic partnership agreements with suspicion, fearing that the agreements would limit their market access and their policy space. Progress on negotiations has been slow, and more than two years after they were supposed to have been concluded there are still a number of outstanding issues that the individual African regions and the European Commission have to resolve. This paper explores some of the difficulties and the progress made thus far, and proposes some measure that would address the concerns around development and regional integration in the context of the challenges posed by the global financial crisis.