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11. Global Value Chains or Global Poverty Chains? A new research agenda

Author:
Benjamin Selwyn
Publication Date:
06-2016
Content Type:
Working Paper
Institution:
Centre for Global Political Economy, University of Sussex
Abstract:
Global Value Chain (GVC) analysis is part and parcel of mainstream development discourse and policy. Supplier firms are encouraged, with state support, to ‘link-up’ with trans-national lead firms. Such arrangements, it is argued, will reduce poverty and contribute to meaningful socio-economic development. This portrayal of global political economic relations represents a ‘problem-solving’ interpretation of reality. This article proposes an alternative analytical approach rooted in ‘critical theory’ which reformulates the GVC approach to better investigate and explain the reproduction of global poverty, inequality and divergent forms of national development. It suggests re-labelling GVC as Global Poverty Chain (GPC) analysis. GPC’s are examined in the textiles, food, and high-tech sectors. The article details how workers in these chains are systematically paid less than their subsistence costs, how trans-national corporations use their global monopoly power to capture the lion’s share of value created within these chains, and how these relations generate processes of immiserating growth. The article concludes by considering how to extend GPC analysis.
Topic:
Development, Economics, International Political Economy, Labor Issues, Inequality, and Global Political Economy
Political Geography:
United States, Eastern Europe, and Asia

12. The problem with ‘embedded liberalism’: the World Bank and the myth of Bretton Woods

Author:
Samuel Appleton
Publication Date:
10-2016
Content Type:
Working Paper
Institution:
Centre for Global Political Economy, University of Sussex
Abstract:
The Bretton Woods conference is conventionally understood as a radical break between the laissez faire order and its ‘embedded liberal’ successor, in which finance was suppressed in the interest of trade and productive growth. The new institutions, particularly the IBRD are often considered emblematic of this. In response to this, the paper argues that the Bretton Woods order required the enlistment, not repression, of private American finance. Firstly, laissez-faire era proposals for international financial institutions provided important precedents for the Bretton Woods institutions. Second, these were predicated on the uniquely deep liquidity of American financial markets following upon Progressive-era reforms, in the legacy of which the Roosevelt administration sought to locate the New Deal. Thirdly, they found new relevance in the 1940s as the IBRD turned by necessity to American financial markets for operating capital. Negotiating the imperative of commercial creditworthiness had two important consequences. First, it entailed the structural and procedural transformation of the IBRD, and allowed management to carve out a proprietary terrain in which its agency was decisive. Second, this suggests that US agendas were mediated by the Bank’s institutional imperatives – and that finance was no more ‘embedded’ during the Bretton Woods era than its predecessor.
Topic:
Development, Economics, World Bank, Global Markets, International Development, and Global Political Economy
Political Geography:
United States, Europe, and Latin America

13. Coming of Political Age: American Schools and the Civic Development of Immigrant Youth, Rebecca M. Callahan and Chandra Muller

Author:
Sara Z. Poggio
Publication Date:
01-2015
Content Type:
Journal Article
Journal:
Political Science Quarterly
Institution:
Academy of Political Science
Abstract:
In this insightful study, Rebecca M. Callahan and Chandra Muller show the importance of the national educational system of the United States in the social and civic integration of children of immigrants—one of the fastest­ growing segments of the U.S. population. The relevance of education, and public education in particular, has been highlighted, as mentioned by the authors, in the education program “No Child Left Behind,” initiated by President George W. Bush in 2001 and in “Race to the Top.” one of several programs initiated by the administration of Barack Obama. - See more at: http://www.psqonline.org/article.cfm?IDArticle=19338#sthash.ik0TWfYQ.dpuf
Topic:
Development, Education, Politics, and Immigration
Political Geography:
United States and America

14. Internationalization of the Renminbi: Developments, Problems and Influences

Author:
Ming Zhang
Publication Date:
03-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Due to the 2008-2009 global financial crisis, the Chinese government began to promote renminbi (RMB) internationalization in order to raise its international status, decrease reliance on the US dollar (USD) and advance domestic structural reform. RMB internationalization has achieved progress not only in cross-border trade settlement, but also in the offshore RMB markets. However, the rampant cross-border arbitrage and the relatively slow development of RMB invoicing compared to RMB settlement are becoming increasingly problematic. RMB internationalization has exerted significant influence on not only the Chinese economy but also other emerging market economies. RMB internationalization complicates domestic monetary policy, exacerbates the currency mismatch on China's international balance sheet and increases both the scale and volatility of short-term capital flows. It offers emerging economies another alternative for pricing domestic currency and investing foreign exchange reserves. Its overall impact on the international monetary system's stability will depend on how the capital account is liberalized and the consistency and transparency of Chinese monetary policy. This paper concludes with five recommendations for Chinese policy makers to promote RMB internationalization in a sustainable way that is conducive to international stability.
Topic:
Development, Economics, and Government
Political Geography:
United States and China

15. Govern LIke Us: U.S. Expectations of Poor Countries

Author:
M. A. Thomas
Publication Date:
05-2015
Content Type:
Book
Institution:
Columbia University Press
Abstract:
In the poorest countries, such as Afghanistan, Haiti, and Mali, the United States has struggled to work with governments whose corruption and lack of capacity are increasingly seen to be the cause of instability and poverty. The development and security communities call for "good governance" to improve the rule of law, democratic accountability, and the delivery of public goods and services. The United States and other rich liberal democracies insist that this is the only legitimate model of governance. Yet poor governments cannot afford to govern according to these ideals and instead are compelled to rely more heavily on older, cheaper strategies of holding power, such as patronage and repression. The unwillingness to admit that poor governments do and must govern differently has cost the United States and others inestimable blood and coin. Informed by years of fieldwork and drawing on practitioner work and academic scholarship in politics, economics, law, and history, this book explains the origins of poor governments in the formation of the modern state system and describes the way they govern. It argues that, surprisingly, the effort to stigmatize and criminalize the governance of the poor is both fruitless and destabilizing. The United States must pursue a more effective foreign policy to engage poor governments and acknowledge how they govern.
Topic:
Foreign Policy, Corruption, Development, Poverty, Fragile/Failed State, and Governance
Political Geography:
Afghanistan, United States, Haiti, and Mali
Publication Identifier:
9780231171205
Publication Identifier Type:
ISBN

16. Equatorial Guinea Plays a Leading Role in Combating Malaria

Author:
Mark L. Asquino
Publication Date:
09-2015
Content Type:
Journal Article
Journal:
The Ambassadors Review
Abstract:
In August 2014, I attended a ceremony at the Willard Hotel in Washington, DC that celebrated the tenth anniversary of the Bioko Island Malaria Control Project. Those speaking at the event included senior executives from Marathon Oil Corporation, Noble Energy Inc., and Atlantic Methanol Production Company, which are all US petroleum companies that operate in Equatorial Guinea. Teodoro Obiang Nguema Mbasogo, President of Equatorial Guinea, also delivered remarks. All of the speakers were enthusiastic about a dynamic project that has had a trans­formative effect on the health of generations of Equatoguineans by reducing the morbidity and mortality of malaria infection. What follows is an overview of the project’s history as well as the commitment to US innovation and a shared audacity to tackle one of human­kind’s most endemic and fatal diseases.
Topic:
Development, Health, Human Welfare, Infectious Diseases, and Health Care Policy
Political Geography:
United States and Equatorial Guinea

17. Investor-State Arbitration Between Developed Democratic Countries

Author:
Armand de Mestral
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Investor-state arbitration (ISA), also known as Investor-State Dispute Settlement (ISDS), by which a foreign investor is entitled to sue a state for damages resulting from the alleged violation of an applicable bilateral investment treaty or an investment chapter in a regional trade agreement, has come under scrutiny in many parts of the world. But in no countries has it been subject to greater scrutiny and challenge than in developed democracies. First in Canada and the United States as a result of the adoption of NAFTA Chapter 11, subsequently in the European Union as a result of the adoption of the International Energy Charter, and latterly in other countries such as Australia, critics have alleged that ISA grants an undue privilege to foreign investors whose complaints should be heard by domestic courts instead of panels of international arbitrators. Availability of ISA is in fact worldwide, due to a network of more than 3,200 investment treaties; criticisms have been voiced in different parts of the world and various proposals for change have been made. The criticisms in developed democracies have become sufficiently strong for it to be necessary to raise the question of whether recourse to ISA is appropriate in any form in developed democracies. Armand de Mestral’s paper is the first in the Investor-State Arbitration project. The series of papers will be prepared by leading experts from a number of developed democracies. Each will review the experience of ISA within specific jurisdictions, with a view to understanding the debates that have occurred in each one. The focus of the debate is on developed democracies, but the implications for the whole international community are very much in mind.
Topic:
Development, Energy Policy, Treaties and Agreements, Bilateral Relations, Foreign Direct Investment, and Democracy
Political Geography:
United States and Canada

18. Cybersecurity and Stability in the Gulf

Author:
James Andrew Lewis
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
The Gulf has become a flashpoint for cyber conflict. Cyberspace has become an arena for covert struggle, with the United States, Israel and other nations on one side, and Iran and Russia on the other. Iran has far outpaced the GCC states in developing its cyber capabilities, both for monitoring internal dissent and deploying hackers to disrupt or attack foreign targets. Several such attacks over the past two years were likely either directed or permitted by Iranian state authorities. Even if Iran holds back from offensive actions as nuclear talks progress, the growth in Iranian capabilities remains a potential security threat for other Gulf states. The GCC countries have begun to develop their defensive capabilities, but they will need to expand their defenses and collaborate more effectively to deter future threats.
Topic:
Conflict Resolution, Security, Defense Policy, Development, and Science and Technology
Political Geography:
Russia, United States, Iran, Middle East, Israel, and Arabia

19. Compounding Uncertainty in Afghanistan: Economic Consequences of Delay in Signing the Bilateral Security Agreement

Author:
Casey Garret Johnson, William A. Byrd, and Sanaullah Tasal
Publication Date:
02-2014
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
The still unsigned Bilateral Security Agreement (BSA) between Afghanistan and the United States provides the legal basis for continuing U.S. military presence in Afghanistan. In addition to its substantive importance, the BSA is also a confidence-building mechanism. The delay in putting it in place is compounding uncertainty and further diminishing economic confidence during Afghanistan's already challenging and uncertain transition. Afghans' responses include, among others, hedging behavior (legal and illegal), personal decisions on whether to come back to or stay in Afghanistan, delays in investments, incipient job losses, declining demand for goods and services and real estate prices, and farmers planting more opium poppy.
Topic:
Defense Policy, Democratization, Development, Treaties and Agreements, Insurgency, and Bilateral Relations
Political Geography:
Afghanistan, United States, and Asia

20. Cholera and the Road to Modernity: Lessons from One Latin American Epidemic for Another

Author:
Jonathan Weigel and Paul Farmer
Publication Date:
03-2014
Content Type:
Journal Article
Journal:
Americas Quarterly
Institution:
Council of the Americas
Abstract:
Haiti is currently battling the world's largest cholera epidemic in half a century. An integrated, comprehensive response—including case-finding and rapid treatment, water and sanitation efforts, and vaccination—could bring cholera to heel on Hispaniola and help prevent its spread elsewhere in the region.1 But the local and international response has, to date, fallen short. Tens of thousands of cases and hundreds of deaths were reported in May and June of this year.2 If the disease had appeared in the United States or elsewhere in the developed world, all available control tools would have been deployed. But the safe, effective and inexpensive cholera vaccine has only recently become available in Haiti. In April, the Haitian Ministry of Health and two healthcare nonprofits began delivering vaccines to about 91,000 people in rural and urban Haiti.
Topic:
Development and Health
Political Geography:
United States and Latin America