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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. A Different Route: Reimagining the idea of prosperity in Asia

Author:
Maria Dolores Bernabe and Erinch Sahan
Publication Date:
11-2015
Content Type:
Policy Brief
Abstract:
Asia is home to some of the world’s fastest growing economies. Yet millions of people remain poor, while a handful gets richer and richer. Asia needs a development model that leaves no one behind: not the workers and farmers, who act as the driving force behind Asia’s growth – and certainly not the women, who take on the lowest paying jobs in the region. This model must also consider constraints, particularly the earth’s finite natural resources which future generations need to survive. It must move away from carbon dependence and must anticipate and plan for the impacts of climate change. These principles together inform inclusive and sustainable development, which Asian governments can use as a roadmap to transform their societies in an era of vanishing resources and staggering inequalities.
Topic:
Development, Energy Policy, Poverty, Natural Resources, and Inequality
Political Geography:
Asia

13. Exclusion, Informality, and Predation in the Cities of Delhi

Author:
Cities of Delhi Team
Publication Date:
08-2015
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
Delhi is India’s richest city and as the capital of the nation has long enjoyed favourable treatment from the Centre. As the home to the country’s national bureaucracies, it also benefits from a large base of secure, well-paid, government jobs. Over the last decade the city has grown at an average real rate of 10 percent, and has benefitted from a dramatic increase in large-scale infrastructure development. Yet, despite these advantages, Delhi is a deeply divided city marked by layers of social exclusion. In the modern imaginary, the city represents the promise of freedom and opportunity. It marks a social space that is less constrained by traditional identities and one in which greater social interaction and density support economic dynamism. If development must, as Amartya Sen has so influentially argued, be based on strengthening basic capabilities, then the city can surely be a privileged site of capability-enhancement. Indeed, the migrants who flood the city often come in search of better livelihoods, education, health, and basic services. But as any resident of Delhi knows, the quality of such services varies dramatically across neighbourhoods, and the part of the city one lives in significantly impacts one’s ability to take full advantage of what the city has to offer. The Cities of Delhi (CoD) project starts with the simple recognition that India’s capital is marked by different settlement types, defined by diverse degrees of formality, legality, and tenure, which taken together produce a highly differentiated pattern of access to basic services. This report provides an overview of the findings from CoD. It builds directly on the place, process, and institution reports available at citiesofdelhi.cprindia.org, but in no way substitutes for these reports, all of which stand on their own as original empirical contributions. This overview is instead a synthesis, an effort to tie together the findings from the reports, to paint a broad picture of patterns of unequal access to basic services in the city and to provide an analysis of how these patterns of inequality are linked to structures and practices of governance.
Topic:
Development, Urbanization, Inequality, Economy, and Capital Flows
Political Geography:
South Asia, India, and Asia

14. Welfare Analysis of Changing Food Prices: A Nonparametric Examination of Export Ban on Rice in India (pdf)

Author:
Ben Groom and Mehroosh Tak
Publication Date:
01-2013
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
During the world food crisis of 2007-08, the price of staples soared rapidly. Higher food price impacts poor households more as they spend approximately three quarters of their income on food. Together rice and wheat provide more than 50% of the calorific intake in India. Apart from providing food security, millions of poor and small farmers depend on rice for their livelihoods. Using Indian Consumer Household Expenditure surveys for the years 2007-08 and 2009-10 the paper analyses the welfare generated by a ban on export of rice by the Indian government. The paper finds that the net impact of the ban on export of rice was positive, as it was able to cushion the Indian population (87% of whom are net consumers) from the adverse effects of the crisis. It also found that the poor in India aren’t homogeneous in nature. The majority of the rice-producing households that stand to gain from increased prices are relatively poor farmers. At the same time, the poor households that do not cultivate rice are most affected by price increase, as their budget share of rice is higher than richer households, who are more resilient to price rise. In particular, the wage labourers are affected significantly.
Topic:
Agriculture, Poverty, Food Security, Inequality, Exports, and Welfare
Political Geography:
India and Asia

15. China and World Development beyond the Crisis

Author:
Dic Lo
Publication Date:
10-2010
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
Recent international opinions on China and world development have focused on the Sino-US economic nexus. The neo-liberal theory of “China causing global imbalances” claims that the particular way through which China has integrated itself into the world market is to the detriment of the economies of the advanced countries. The critical theory of “China facing internal and external dependence”, in contrast, claims that the real victim has been the economic development of China itself and the majority of developing economies. The objective of this paper is to clarify the analytical efficacy of these two theories, and, on that basis, to assess the validity of their implied policies. The paper also seeks to explore into the construction of an alternative policy line that suits better the needs of the social and economic development of China and the developing world.
Topic:
Development, Inequality, Social Policy, and Economic Development
Political Geography:
China and Asia