The political economy of sugarcane flexing: initial insights from Brazil,Southern Africa and Cambodia

In the context of rising resource demand, agricultural crops such as sugarcane are being promoted for their multiple uses in different commodity markets and as alternatives to fossil fuel equivalents (i.e. as a source of biofuel, bioelectricity and bioplastic). These commodities are also produced on an increasingly flexible basis, as sugarcane mills respond to price signals and switch between different crop uses. This paper offers a preliminary exploration into the politics of this latest development in the capitalist industrialization of agriculture. It does so by focusing primarily on flexing in Brazil and highlighting the role of the state in both creating markets for non-food products that sugarcane mills can now switch between and managing the tensions that arise from this. These tensions have concerned consumer prices for fuel, control of distribution infrastructure and conditions of land conversion, each prompting political interventions by the state. The paper then suggests how this same process is taking place, albeit shaped by different contexts, in Southern Africa and Cambodia. It concludes with some key questions for further research: is flexing eroding the distinction between crop regimes? How do primary processors decide what their product mix will be? And on what basis do state actors support flexing between agricultural products and investments in so-called bio-refineries?     

Municipal Mergers in New Zealand: An Empirical Analysis of the Proposed Amalgamation of Hawke’s Bay Councils

Local government policymakers across the developed world have frequently employed municipal amalgamation to improve the operation of local councils, and New Zealand is no exception. This paper empirically examines claims made in Potential Costs and Savings of Local Government Reform in Hawke’s Bay that the merger of the five local authorities in the Hawke’s Bay Region of New Zealand would generate significant cost-savings. We empirically test for the existence of scale economies in a single merged Hawke’s Bay council and find that no cost-savings can be expected. This removes a key argument for a forced Hawke’s Bay amalgamation.     

Did the Big Stick Work? An Empirical Assessment of Scale Economies and the Queensland Forced Amalgamation Program

In 2007, the Queensland Government imposed forced amalgamation with the number of local authorities falling from 157 to just 73 councils. Amalgamation was based inter alia on the assumption that increased economies of scale would generate savings. This paper empirically examines pre- and post-amalgamation (2006/07 and 2009/10) for scale economies. For the 2006/07 data, evidence of economies of scale was found for councils with populations up to 98,000, and thereafter diseconomies of scale. Eight percent of councils in 2006/07 (ten councils) – representing 64% of the state’s population – exhibited diseconomies of scale. For the 2009/10 data, the average cost curve remained almost stationary at 99,000 residents per council, but almost 25% of all councils (thirteen councils) were now found to exhibit diseconomies of scale. The compulsory merger program thus increased the proportion of Queensland residents in councils operating with diseconomies of scale to 84%.