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21. Constrained Potential: A Characterisation of Mexican Microenterprises

Author:
Ana Karen Negrete-García
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This paper investigates the existence and nature of constraints prevailing among Mexican microenterprises. It provides inter‐temporal insights by relying on firm‐level data span‐ning from 1994 to 2012. A performance index is defined based on firm levels of capital stock and monthly profits, and is used to estimate the empirical probability of a business’s success. The predicted values are used to classify every microenterprise into one of three categories: upper, middle, or lower segment. Overall, the study provides evidence of con‐ strained productivity and capital misallocation. Specifically, middle‐segment firms exhibit entrepreneurial features and their average marginal returns are 15 percent. Because this segment faces mainly external constraints, cost‐effective interventions are plausible. Re‐garding the lower‐segment firms, it is estimated that their average monthly marginal re‐ turns are 30 per cent, compared to 1 per cent for the upper segment. It is also shown that, over time, the share that middle‐segment firms represent relative to all microenterprises increased from 16 to 22 percent. Lastly, the sources of variation in monthly profits among segments are explored using the Oaxaca‐Blinder decomposition method.
Topic:
International Political Economy
Political Geography:
Mexico

22. At Africa’s Expense? Disaggregating the Social Impact of Chinese Mining Operations

Author:
Tim Wegenast, Georg Strüver, and Juliane Giesen
Publication Date:
10-2017
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Qualitative studies and media reports suggest that the presence of Chinese oil or mining companies generates resentments among local extractive communities due to low wages, poor working conditions, environmental degradation, the employment of foreign labour, and perceived racial discrimination. At the same time, Chinese investment in the extractive sector appears to enhance local infrastructure. So far, these claims have not been empirical‐ly tested in a systematic way. Relying on novel data on the control‐rights regimes of dia‐mond, gold, and copper mines and geo‐referenced information from Afrobarometer sur‐veys, this paper examines whether Chinese‐controlled mining promotes anti‐Chinese sen‐timents among the local populations of sub‐Saharan African countries. In addition, we test the effect of mining contractors’ nationality on socio‐economic indicators such as local employment rates and infrastructure levels. Our logistic regression analysis for the period 1997–2014 reveals that the effect of Chinese mining companies on African local develop‐ ment is ambiguous: while proximity to Chinese‐operated mines is associated with anti‐ Chinese sentiments and unemployment, populations living close to Chinese mining areas enjoy better infrastructure, such as paved roads or piped water. Multilevel mixed‐effects estimations using district‐level data from the Demographic Health Survey for 20 sub‐ Saharan countries corroborate these findings.
Topic:
International Affairs
Political Geography:
Africa

23. Federalism and Foreign Direct Investment: How Political Affiliation Determines the Spatial Distribution of FDI – Evidence from India

Author:
Chanchal Kumar Sharma
Publication Date:
10-2017
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This paper links the foreign economic engagement of India’s states with the literature on federalism, thereby contributing to an understanding of the political economy of FDI in‐flows in a parliamentary federal system. More specifically, it studies subnational governments’ international engagements to attract foreign direct investment (FDI) and investigates whether the political affiliations of states’ chief ministers and parliamentarians determine the spatial distribution of FDI across the Indian states, correcting for the influence of per capita income, population density, urbanisation, infrastructure, policy regime, and human development. Although the central government plays no direct role in determining the state to which FDI goes, the centre–state relations in a federal structure play a role in creating perceptions about the relative political risk involved in different investment destinations. Employing multiple linear regressions to analyse time‐series (2000–2013) cross‐sectional (12 states) data using the panel procedure, the study finds that affiliated states attract relatively more FDI per capita in comparison to states ruled by opposition parties or coalition partners. However, some exceptions do result, primarily due to two phenomena: first, the presence of a strong state leadership and, second, the presence of a significant share of members of parliament belonging to the prime minister’s party in the non‐affiliated states. Further, states ruled by outside supporters have been most successful in attracting FDI inflows during the coalition period.  
Topic:
International Political Economy and International Affairs
Political Geography:
Global Focus

24. Secondary Powers vis-à-vis South Africa: Hard Balancing, Soft Balancing, Rejection of Followership, and Disregard of Leadership

Author:
Sören Scholvin
Publication Date:
12-2017
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
The second‐most powerful states in regional hierarchies – or “secondary powers” – can be expected to contest against hegemons. In this paper, I assess the power that secondary powers in sub‐Saharan Africa wield vis‐à‐vis South Africa and suggest that their intended and unintended contestation can be captured as hard balancing, soft balancing, rejection of followership, and disregard of leadership. Angola’s foreign policy is marked by a mix of these types of contestation and a recent shift towards soft balancing, which results from Angola’s increasing economic influence in some regional countries. Kenya might reject followership or even hard‐balance in economic affairs but has not done so yet. Nigerian– South African relations are characterised by a disregard of South African leadership, especially in security policy, and unintended economic soft balancing
Topic:
International Affairs
Political Geography:
South Africa

25. Transitional Justice, Recognition, and Authoritative Power

Author:
Anika Oettler
Publication Date:
08-2017
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
The legitimacy of transitional justice currently derives from the contribution it makes to the recognition of victims. Adding the aspect of authoritative power to ongoing debates on transitional justice, however, could significantly alter our views on recognition. Recognition is widely believed to be key to overcoming traumatic experiences. At the same time, however, it strengthens authoritative power. Seeking a more nuanced understanding of the recognition–power nexus, the paper provides a rough and critical account of various understandings of recognition and power on the part of authors such as Honneth, Fraser, Bertram and Celikates, Ikäheimo, Arendt, Foucault, Popitz, and Bourdieu. It then examines how these theoretical approaches intersect and speak to each other. To see recognition as a reciprocal interaction sensitive to power relations is to pave the way for a power‐sensitive turn in current debates on victim‐centred transitional justice. Multidirectional relationships of power exist, with varying forms of coercion, resistance, and struggle. This insight corresponds with the observation, seen from the other perspective, that truth and recognition are inside power. Placing theoretical approaches to power and recognition side by side has strong implications for politics. The paper therefore applies these theoretical insights to the Colombian peace process, showing the potential and pitfalls of putting recognition into practice.
Topic:
International Affairs and Political Power Sharing
Political Geography:
Global Focus

26. The Anxious and the Climbers: Ambivalent Attitudes towards Democracy among South Africa’s Middle Class

Author:
Simone Schotte
Publication Date:
06-2017
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Beyond the hopes placed in Africa’s emergent middle class as an engine of economic growth, some analysts see this group as a bastion of political stability and enduring democratisation across the continent. This paper’s approach differs from that of most studies, which treat the middle class as a homogeneous group, through two key contributions. First, using cluster analysis, I propose a novel way of conceptualising social class that broadly draws on the Weberian idea of shared life chances. I apply this method to South Africa and identify five social classes characterised by their members’ living standards, overall life satisfaction, and self‐perceived upward mobility. Second, the empirical analysis reveals significant discrepancies in attitudes towards democracy between the downwardly and upwardly mobile strata of the middle class, which I term the “anxious” and the “climbers,” respectively. On the one hand, the “climbers” show the highest generic support for democracy as a form of government, whereas the “anxious” middle class displays feelings of resignation. On the other hand, I find indicative evidence of a status‐quo bias among the “climbers.” Rather than assuming a more demanding or critical stance in politics, they allow their political priorities to be at least partly shaped by an interest in securing and expanding attained living standards; being upwardly mobile is even associated with a higher tolerance for government attempts to constrain freedom of information, opinion, or expression.
Topic:
International Affairs and Democracy
Political Geography:
Global Focus

27. New Horizons for Germany's Africa Policy

Author:
Robert Kappel
Publication Date:
05-2017
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
This paper deals with Germany’s new Africa policy. The Federal Ministry for Economic Cooperation and Development (BMZ) presented a new Africa concept in January 2017. The BMZ wants to counter the further marginalisation of Africa with inclusive and sustainable growth. Chancellor Angela Merkel will explain her new policy for Africa at the G20 summit in Hamburg in July 2017, in an attempt to gain the approval of the other G20 members for focused cooperation with Africa. The paper argues that it remains solely the duty of African states to take their development into their own hands. Cooperation can support this process, but it cannot assume what is each state’s individual responsibility.
Topic:
International Affairs
Political Geography:
Africa and Germany

28. The Impacts of Changing Ruling Parties in the Twenty-First Century

Author:
Ming-Yeh T. Rawnsley
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
Changes of ruling parties are widely viewed as a critical marker of a country's level of democratisation. Huntington (1991: 266–267) even suggested a democracy can only be considered consolidated after passing a “two-turnover test”: two changes of ruling parties through elections. Since the lifting of martial law in 1987, Taiwan has continu- ed to experience comprehensive social transformation and political reforms, including the first direct presidential election in 1996; the defeat of the Chinese Nationalist Party , Zhongguo Guomindang, Kuomintang, KMT) in the 2000 presidential election by the Democratic Progressive Party, Minzhu Jinbudang, DPP) after five decades of one-party rule; and the subsequent setback for the DPP in 2008 when the electorate voted the KMT back into power. This indicates that Taiwan should now be considered a con- solidated democracy even though, comparatively speaking, it may still be young and evolving (Rawnsley and Gong 2011).

29. Lessons of Defeat and Success: Taiwan's 2012 Elections in Comparative Perspective

Author:
Dafydd Fell and Charles Chen
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
In early 2011, the Kuomintang (KMT, Guomindang) government appeared to be in danger of losing power in the upcoming presidential elections. The DPP had recovered sufficiently from its disastrous electoral performance in 2008 to pose a real challenge to Ma Ying-jeou (Ma Yingjiu) and had matched the KMT's vote share in mid-term local elections. Ma also faced the challenge of an independent presidential candidate, James Soong (Song Chuyu), who had come a close second in 2000 and now threatened to divide the pro KMT vote. Nevertheless, the KMT was able to win reduced majorities in both the presidential and legislative elections in January 2012. This article seeks to explain how the KMT was able to hold on to power by comparing the campaign with earlier national-level elections. We are interested in identifying the degree to which the Democratic Progressive Party (DPP, Minjindang) learnt from its electoral setbacks in 2008 and whether the KMT employed a similar campaign strategy to the one that had been so effective in returning it to power in 2008. Our analysis relies of an examination of campaign propaganda and campaign strategies as well as participant observation and survey data from 2012 and earlier contests.
Topic:
Political Violence

30. Learning a Lesson from Taiwan? A Comparison of Changes and Continuity of Labour Policies in Taiwan and China

Author:
Lee Chun-yi
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This paper argues that the comparison of labour policies in Taiwan and China has an important bearing on the interaction between state and society. The fact that labour policies have changed over time illustrates a process of bargaining between the state and society. The core question of this paper is whether the development of labour policies in Taiwan can provide China a good example to learn from. In order to answer this question more systematically, the first part of this paper provides theoretical reviews of the state–society relationship, while the second part aims to verify whether those labour-favouring policies in Taiwan have changed under a different party's governance. The third part of the paper further investigates labour policy in China; this section mainly focuses on the historical background to the new labour contract law. Based on the preceding two sections' literature review of the changing path of labour policies, the fourth section scrutinises fundamental issues reflected in the development of Taiwan's labour policies, then compares how those issues are reflected in the case of China. The conclusion of this paper is that although Taiwan, like China, formerly had a one-party system, the changes in Taiwan's labour policies are not completely comparable to China, though both societies had some similarities.
Political Geography:
China

31. The Change of Ruling Parties and Taiwan\'s Claim to Multiculturalism before and after 2008

Author:
Dafydd Fell and Isabelle Cheng
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
In recent years, female marriage migration from China and Southeast Asia has significantly increased the number of foreign-born citizens in Taiwan. This article is a preliminary investigation into how political parties responded to the growing multicultural makeup of the national community between 2000 and 2012. We examine the content of the Understanding Taiwan textbook, the election publicity of the two major political parties, citizenship legislation, and the results of interviewing immigrant women. The findings show that the change in the ruling party did make differences in terms of both parties\' projection of immigrant women in election propaganda and citizenship legislation. However, inward-looking multiculturalism is practised by the two main political parties in Taiwan to forge national identity and enhance national cohesion rather than to promote the recognition of immigrants\' different cultural heritage.
Topic:
Political Violence
Political Geography:
Asia

32. Anti–Media-Monopoly Policies and Further Democratisation in Taiwan

Author:
Ming-Yeh T. Rawnsley and Chien-san Feng
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
The student-led anti–media-monopoly movement in Taiwan has generated strong momentum since mid-2012. In early 2013, the National Communications Commission responded by drafting the “Prevention of Broadcasting and Television Monopoly and the Maintenance of Diversity Act”, which was approved by the Executive Yuan in April 2013 and is now waiting to be debated in the Legislative Yuan. In contemporary Taiwan, the social is often connected with the political. The existing democratic system, which is a legacy of the democratisation process in the twentieth century, no longer seems adequate to serve the citizens of the twenty-first century. This paper considers the anti-media-monopoly movement and the burgeoning civic movements in recent years as part of a “second wave” of democratisation for further political reform and democratic consolidation. When martial law was lifted in Taiwan in 1987, the “first wave” of media liberalisation ended with the commercialisation of industry. The “second wave” of media democratisation has picked up where the first wave left off and may finally establish, through increasingly more thoughtful media policies, a better and fairer media environment that is more suitable for democratic Taiwan.

33. Taiwan's Soft Power and Public Diplomacy

Author:
Gary D. Rawnsley
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This paper analyses how Taiwan exercises “soft power” and uses public diplomacy to engage with the international community, and to compensate for the absence of formal diplomatic relations with major powers. The research suggests that Taiwan's strategies of international engagement are constrained by its external and internal political environments. The international system (structure) has locked Taiwan into a set of challenging arrangements over which it has little control or influence, while Taiwan's public diplomacy architecture and the activities organised and undertaken by its government agencies in Taibei and its representatives abroad (agency) reveal, at best, a misunderstanding of how Taiwan's soft power might be exercised more effectively. The strategic thematic choices of legitimacy (invoking Taiwan's international status) versus credibility (which in soft power terms offers the most benefit), and the decision to privilege cultural over political themes in international communications, all have profound effects on the success of Taiwan's soft power.
Political Geography:
Taiwan

34. Fragmentation, Centralisation and Policy Learning: An Example from China's Wind Industry

Author:
Marius Korsnes
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This paper seeks to understand what government mechanisms have allowed China's wind industry to grow as fast as it has over the past ten years. Instead of formal rules and regulations, this paper focuses on specific sets of institutional conditions that have been crucial in the process of high-speed implementation of wind energy in China. Specifically, fragmentation and centralisation, together with policy experimentation and policy learning, have been fundamental for policy flexibility and institutional adaptability. The paper illustrates that there are benefits and disadvantages to these characteristics, and that inherent qualities of China's governing system that lead to rapid growth overlap with those that lead to challenges in terms of quality and long-term performance.
Political Geography:
China

35. The Shaping of Chinese Corporate Social Responsibility

Author:
May Tan-Mullins and Peter S. Hofman
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
There is increasing evidence that corporate social responsibility (CSR) is emerging as a management issue within Chinese business (Moon and Shen 2010; Yin and Zhang 2012). The main drivers of this movement, which are commonly discussed, include domestic political will and international pressure. However, what is less understood is the nature of the shaping of CSR. As a concept, CSR has been widely interpreted as the way companies take into account interests of a broader range of stakeholders beyond owners and shareholders of the firm. Hence, it is about the way firms develop policies and practices to minimize the negative impacts and even increase the positive impacts of their business practices on various stakeholder groups. In a Western context, the rationale for CSR has been explained as a result of interaction between business, government and society where institutional pressures that develop from these interactions lead to certain expectations regarding the nature of business practices. This is where firms increasingly see CSR as a strategic approach to maintaining and enhancing legitimacy and reputation so as to ensure the buy-in and loyalty of key stakeholder groups such as employees and customer
Topic:
Government
Political Geography:
China

36. Successes and Failures of Corporate Social Responsibility Mechanisms in Chinese Extractive Industries

Author:
May Tan-Mullins
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
China's insatiable appetite for natural resources and energy to fuel its national growth is having an increasing impact on the domestic and global environment. Globally, China has turned to resource-rich regions in Africa and South America, at times engaging so-called “rogue states” to secure the resources it requires. Now is a critical juncture at which to encourage socially responsible behaviours in the Chinese extractive sectors, such as adopting the Extractive Industries Transparency Initiative (EITI). This analysis discusses the current corporate social responsibility (CSR) mechanisms in extractive industries and assesses the feasibility of socialising China towards adopting CSR global norms in the extractive industries. This article has three sections. The first discusses China's environmental governance trajectory and ecological footprint in the domestic and global extractive industry. The second section discusses the factors contributing to the success and failure of various CSR mechanisms, with a specific focus on the EITI, and the final section expounds on the emerging challenges and issues and concludes with policy recommendations.
Topic:
Government
Political Geography:
China

37. Chinese NGO–Firm Partnerships and CSR from an Institutional Perspective

Author:
Douglas Whitehead
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
NGO–firm partnerships have been well studied in the literature on corporate social responsibility (CSR) (Marano and Tashman 2012; Dahan et al. 2010; Oetzel and Doh 2009). However, these studies have generally limited their focus to Western multinationals and Western NGOs and, moreover, not by-and-large examine in depth the institutional settings under which either the firm or the NGO operates Building on recent institutional approaches to CSR (Brammer, Jackson, and Matten 2012; Kang and Moon 2012; Matten and Moon 2008), this paper examines how the institutional dynamics of several partnerships between Chinese firms and NGOs affect the manifestation of CSR (e.g. “implicit” vs. “explicit”). The paper also looks into how CSR and NGO–firm collaboration plays out within a changing state-corporatist framework in Chinese context (Unger and Chan 1995, 2008; Hsu and Hasmath forthcoming). The paper then argues 1) that the involvement of an NGO in the partnership reflects a changing institutional setting in China, and 2) that type and level of involvement of Chinese government institutions affects whether a given firm takes an “implicit” or an “explicit” approach to CSR.
Topic:
Government
Political Geography:
China

38. Greening the Field? How NGOs Are Shaping Corporate Social Responsibility in China

Author:
Susannah M. Davis and Dirk C. Moosmayer
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
China\'s state-led model of corporate social responsibility (CSR) does not seem to present a promising environment for the participation of non-governmental organizations (NGOs). Nevertheless, we observe recent examples of NGO involvement in CSR initiatives. Chinese NGOs are using the CSR platform to challenge the environmental practices of firms operating in China. We take a field-theoretical approach that focuses on the agency of actors. We show how an international NGO proposes a new standard and how Chinese NGOs use local environmental information disclosure laws to engage with firms in the textile supply chain. We find that NGOs leverage the power of brands to influence the practices of Chinese suppliers. However, we find differences in the framing and tactics employed by international NGOs versus their Chinese counterparts. Field analysis helps better understand the actors in the field of CSR, along with their motivations and their resources, and it offers a useful perspective on civil society development in China.
Topic:
Environment and Government
Political Geography:
China

39. Collaborative Socially Responsible Practices for Improving the Position of Chinese Workers in Global Supply Chains

Author:
Peter S. Hofman, Bin Wu, and Kaiming Liu
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
In this paper we evaluate three projects with the participation of 40 supplier firms in several Chinese coastal provinces representing multi-stakeholder efforts to provide alternative channels through which workers can voice their concerns. The supplier firms took on these projects to reduce worker dissatisfaction and employee turnover. The projects fill an institutional void in employer–employee relations within Chinese supplier firms as they provide alternative channels for workers to voice their concerns. The role of civil society organisations focusing on labour interests was a crucial feature of the projects, through capacity-building for workers and by providing independence. The supplier firms and their workers have benefitted as firms take measures to enhance worker satisfaction, while the reduced employee turnover positively impacted firm performance. We propose that these collaborative socially responsible practices are a potential way to strengthen the positions of workers and supplier firms in global supply chains.
Political Geography:
China

40. Bittersweet China: New Discourses of Hardship and Social Organisation

Author:
Michael B. Griffiths and Jesper Zeuthen
Publication Date:
02-2015
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This paper argues that new interpretations of “eating bitterness” (吃苦, chiku) have firmly entered the landscape of China's social organisation. Whereas the bitterness eaten by heroic types in China's revolutionary past was directed towards serving others, now the aim of eating bitterness is self-awareness. Furthermore, bitterness-eating, which once pertained to rural-urban migrant workers as opposed to discourses of urban “quality” (素质, suzhi), has now also been taken up by the urban middle classes. A new cultural distinction, therefore, adds dignity to migrant workers while potentially marginalising a wide range of unproductive people, both urban and rural. This distinction ultimately mitigates risk to the Chinese regime because the regime makes sure to reward those who eat bitterness. This paper is based on ethnographic data gathered in Anshan, from the rural areas surrounding Chengdu, and our analysis of a TV show about a peasant boy who becomes a Special Forces soldier.
Political Geography:
China