The Economic Logic of Persistent Informality: Artisanal and Small‐Scale Mining in the Southern Philippines

This article critically evaluates existing causal explanations for the persistence of informality in artisanal and small‐scale mining (ASM). These explanations share a legalistic focus on entry barriers and political impediments that prevent or discourage the formalization of poverty‐driven ASM operators: however, they fail to fully explain cases such as that of the Philippines, where ASM is characterized by differentiation between a poverty‐driven workforce and a dominant stratum of ASM entrepreneurs. Even where limited formalization frameworks provide ASM with a degree of legal recognition, this recognition is usually restricted to these more powerful ASM interests, while excluding the workforce at large. This article therefore proposes an integrative approach to analysing informality in ASM, which complements the existing legalistic focus on entry barriers with a structuralist concern over the exploitation of informal labour. Seen from this perspective, the massive expansion of ASM in the Philippines can be seen as the product of a transition away from capital‐intensive large‐scale mining to a flexible regime of accumulation built around the exploitation of informal ASM labour. This observation highlights the need to pay more critical attention to the economic logic and the vested interests underlying the (selective) persistence of informality in the workforce.     

PRODUCTIVITY GROWTH IN THE OLD AND NEW EUROPE: THE ROLE OF AGGLOMERATION EXTERNALITIES

As Europe is currently characterized by huge disparities in the economic performance of “old” and “new” states, we investigate whether this is the result of local agglomeration—specialization and diversity—externalities. Our spatial econometric analysis focuses on total factor productivity dynamics over the period 1996–2007 for 13 industries located in 276 European regions. Consistently with the “nursery cities” theory, we find that diversity exerts a positive effect in the knowledge‐intensive services of the “old” Europe urban areas, while specialization is still effective in the “new” Europe low‐tech manufacturing. Human and technological capital has also a positive impact.     

Labour Productivity and Energy Use in a Three‐Sector Model: An Application to Egypt

This article presents a model of a developing economy with three sectors — industry, agriculture and energy. Industry and energy are assumed to be demand‐constrained, but agriculture supply‐constrained. The model highlights: (a) structural transformation, through labour transfer from agriculture to industry; (b) inflation, driven by the interaction of demand and the supply constraint in agriculture; and (c) the link between energy use and labour productivity. Employing a Kaldor‐Verdoorn productivity rule in industry augmented with energy intensity — energy per unit of labour — as an argument, we emphasize that labour productivity growth is driven by energy intensity rather than energy productivity growth. As a consequence, emissions reduction without North–South technology transfer and financial assistance costs growth.     

Labour Control in the Tobacco Agro‐spaces: Migrant Agricultural Workers in South‐Western Ontario

International labour migration programs provide a vulnerable workforce that services various sectors in developed economies. The agriculture sector is one arena in which the employment of migrant workers has become more pervasive. Annually, approximately 30,000 workers are employed in the Canadian agriculture sector through the Seasonal Agricultural Workers Program (SAWP). In this paper, I focus on the SAWP workers in tobacco farming, and investigate the ways that labour control is achieved on two small‐scale farms. I draw upon original empirical evidence from interviews with three Mexican and nine Jamaican workers, two union representatives, and two farm owners in South‐Western Ontario, Canada. My findings show that various factors at multiple scales shape the labour control regime and significantly advantage farm owners over workers. Based on my findings, I argue that the labour control regime is conditioned exogenously by multi‐scalar factors and generated endogenously at the point of production.     

THE RELEVANCE OF THE WORLD‐SYSTEM APPROACH IN THE ERA OF GLOBALIZATION OF ECONOMIC FLOWS AND NETWORKS

Is world‐systems analysis of any relevance to present‐day economic flows? By using methods in line with the world‐system and dependence theories, we show that economic flows – trade and foreign direct investment – still deeply separate core and peripheries. On the one hand, through the analysis of the trade by products, we show that core countries hold on to a higher position in the international division of labour. On the other hand, by using network method, we highlight that core countries are still characterized by the intensity of their reciprocal relations while peripheral countries have few economic relations with a limited number of core countries. Moreover, the article demonstrates that this core–periphery division of the world has not lost its pertinence; it is as relevant as at the end of the sixties. In the current era of globalization, economic flows are still deeply structured by basic power relations between core and peripheries. However, the article also develops a theoretical framework to understand dynamics of the world‐system and insists on the emergence of Eastern Asia as a new core area, notably by showing the rising position of some East Asian countries in the international division of labour. We conclude by underlying the necessity to integrate world‐system and global network theoretical frameworks.     

KNOWLEDGE SPILLOVERS,ABSORPTIVE CAPACITY,AND SKILL INTENSITY OF CHILEAN MANUFACTURING PLANTS*

ABSTRACT Knowledge spillovers are an important source of economic growth. In this study, we identify a mechanism through which knowledge spillovers occur among plants in the Chilean manufacturing industry. A plant‐level production function is estimated with the absorptive‐capacity hypothesis, that is, employment of skilled workers is a key channel through which knowledge is transmitted across plants. Results show that a plant's productivity from spillovers increases with its skill intensity, which is measured by the share of skilled workers in total employment. We also find that plants in a region with a large knowledge stock increase their skill intensity to benefit more from spillovers. Our results suggest that an increase in regional knowledge stock is the most effective policy to improve a plant's productivity. However, policies that encourage a plant to employ high skill‐intensive production also enhance its productivity.     

LOCAL INPUT AND PRODUCTIVITY GROWTH IN U.S. MANUFACTURING: 1972–2002*

ABSTRACT This research analyzes manufacturing growth and decline across metropolitan and nonmetropolitan regions during the 1972–2002 period. We decompose real value added growth across local labor market areas in the lower 48 U.S. states into contributions from labor, capital, and total factor productivity. We then estimate a model describing the long‐run growth of labor, capital, and productivity and find that increased productivity increases the growth of labor and capital, as well as a positive correlation between labor and capital stock growth. We also find evidence that human capital investment and agglomeration economies encourage productivity growth, while unionization discourages it.     

Equality‐led Development and the Demand‐ and Supply‐side Effects

This contribution to the Forum Debate on global development focuses on the dimension of functional income distribution between labour and capital and its demand‐side and supply‐side effects. The article summarizes recent literature that has sought to explain the reasons behind the global fall in the labour share. It then discusses the demand‐side effects of the declining wage share on growth, based on the post‐Keynesian/post‐Kaleckian literature. The author presents an alternative policy scenario for the G20 based on a mix of increasing wage share and public investment, before discussing the supply‐side effects of rising inequality. The article concludes with some policy implications for equality‐led development.     

Globalisation Lived Locally: A Labour Geography Perspective on Control,Conflict and Response among Workers in Kerala

Abstract: Supported by the labour geography framework, I analyse how spatial practices of labour shape the economic geography of capitalism, by looking into a model not at a global but at a very local scale of organisation and showing its effectiveness while confronting social actors organised at global or extra‐local scales. Questioning global stereotypes on economic responses to globalisation, I argue that labour becomes actively involved in the very process of globalisation and the expansion of capital, empirically demonstrating the relevance of this in the globalisation literature. I deal with one region—Kerala—and processes in its labour markets, taking the case of apparel workers in an export‐promoting industrial park.     

The development of geographical differences in education levels within the Swedish tourism industry

ABSTRACT

The nexus of workforce and destination development is a largely uncharted area within tourism research. The local human capital has above all been in focus when underlining tourism's potential to create employment even for the inexperienced and less educated. However, a discordant strand of theory holds the low levels of qualified knowledge within the industry responsible for absent destination development in areas struggling to develop competitive advantages. Additionally, the in-migration of a skilled workforce may be hampered by a lack of amenities attracting permanent residents. In order to explore whether the tourism sector is characterized by a less educated share of the workforce, a study was performed using micro-level data on the full working population of Sweden during the years 2000–2010. The workforce in tourism was compared to the total and two other low-skill sectors, and the results show that the educational aspects within tourism are more related to geography than economic sectors. Contrary to general presumptions, the workforce within the tourism sector has a higher level of formal education than the other selected sectors in regions with generally low educational levels. The implication is thus that strategies aimed at creating employment for the least educated in rural areas need to be reconsidered, and not unconditionally target the tourism sector. Above all, tourism development needs to be based on assessments of local preconditions rather than a generalized image.     

COMPANY WELFARE PROGRAMMES AND INDUSTRIAL MODERNIZATION IN FINLAND

Prior to the modern welfare state, many large companies provided extensive welfare programmes for their employees. In this article, such welfare programmes – or corporate welfarism – in Finnish manufacturing firms in the early 20th century are the focus of attention. I analyse the content of these programmes and how they changed over time as part of the modernization and professionalization of management and industrial and societal change. I also discuss how company managers perceived the role of welfare provisions in corporate development and what happened with these programmes when the first steps towards the modern welfare state were taken. I show that these programmes started as a necessity and part of industrial paternalism, but gradually became part of labour management, in particular for the creation of a loyal workforce and productivity improvements. These programmes often developed in collaboration with local municipalities, which led to intertwined relationships at the local level, marked by both trust and tension in local communities. Once general welfare reforms emerged, companies often abandoned their voluntary programmes, while some services were taken over by the municipalities. I also ask to what extent these programmes were managerial strategies to counteract growing state involvement in their affairs.     

HISTORICAL TRADITIONS OF CIVICNESS AND LOCAL ECONOMIC DEVELOPMENT*

ABSTRACT The paper investigates the importance of history for local economic performance in Italy by studying the role of social capital, which refers to trust, reciprocity and habits of co‐operation that are shared among members of a local community. The paper presents a test based on worker productivity, entrepreneurship, and female labor market participation. Using as instruments regional differences in civic involvement in the late 19th century and local systems of government in the middle ages, it shows that social capital does have economic effects.     

LABOUR AND LANDSCAPES: THE POLITICAL ECONOMY OF LANDESQUE CAPITAL IN NINETEENTH CENTURY TANGANYIKA

In a long‐term and global perspective irrigated and terraced landscapes, landesque capital, have often been assumed to be closely associated with hierarchical political systems. However, research is accumulating that shows how kinship‐based societies (including small chiefdoms) have also been responsible for constructing landesque capital without population pressure. We examine the political economy of landesque capital through the intersections of decentralized politics and regional economies. A crucial question guiding our research is why some kinship‐based societies chose to invest their labour in landesque capital while others did not. Our analysis is based on a detailed examination of four relatively densely populated communities in late pre‐colonial and early colonial Tanzania. By analysing labour processes as contingent and separate from political types of generalized economic systems over time we can identify the causal factors that direct labour and thus landscape formation as a process. The general conclusion of our investigation is that landesque investments occurred in cases where agriculture was the main source of long‐term wealth flow irrespective of whether or not hierarchical political systems were present. However, while this factor may be a necessary condition it is not a sufficient cause. In the cases we examined, the configurations of world‐systems connections and local social and economic circumstances combined to either produce investments in landesque capital or to pursue short‐term strategies of extraction.     

LABOUR FORCE GROWTH IN SINGAPORE

Singapore's labour force participation rates are at high levels. Age-specific rates, especially of men, have approached those of developed countries. The current very low total fertility rate of 1.25 would have major implications for Singapore's labour supply and economy in a closed population. Multi-pronged approaches such as measures to increase fertility, increase labour force participation, and to augment the local workforce with migrants are discussed. In the context of Singapore's physical land constraint, continued growth in the labour force in the long term would be challenging. Future gross domestic product growth is likely to be more sustainable via labour productivity growth. Identifying new niche areas of growth and having a nimble and quality workforce would become more important than labour force growth.     

ABSORPTIVE CAPACITY,KNOWLEDGE FLOWS,AND INNOVATION IN U.S. METROPOLITAN AREAS

High growth and progressive regions possess a culture that promotes innovation. Innovation depends on a region's ability to use its own existing knowledge and knowledge generated elsewhere. This paper demonstrates the importance of the ability to absorb external knowledge in explaining innovation productivity for 106 U.S. metropolitan areas. Using a spatial interaction model of patent citation flows with origin and destination dependence, the destination fixed‐effects coefficients provides a measure of a region's absorptive capacity. We identify local conditions that shape a region's absorptive capacity and demonstrate it has a positive and significant impact on innovation productivity.     

Mapping Small‐scale Mineral Production Networks: The Case of Alluvial Diamonds in Ghana

In recent years, donors and certain governments have committed to formalizing artisanal and small‐scale mining (ASM) — low‐tech, labour‐intensive mineral extraction and processing. Few, however, are able to do so effectively because of a limited knowledge of how the sector operates, who it employs and where the commodities it mines are being channelled. This article argues that a radical reconceptualization of ASM will be needed if these challenges are to be overcome. As a starting point, it calls on donors and policy makers to adopt the Global Production Network (GPN) as a ‘lens’ for analysing the sector's organizational structures. Popular in geography scholarship, the GPN, though rarely used to study the intricacies of largely informal sectors such as ASM, could prove valuable here, aiding with the mapping of key production processes. In this article, the GPN is applied to Ghana's artisanal diamond mining sector, yielding valuable insights into its organization, the roles played by the different individuals who populate it, and the nature of the relationships between these individuals. Such information is key to designing more robust formalization and support strategies for ASM in Ghana; more generally, the exercise provides important lessons for other governments working to achieve similar goals.     

INTERREGIONAL KNOWLEDGE SPILLOVERS AND OCCUPATIONAL CHOICE IN A MODEL OF FREE TRADE AND ENDOGENOUS GROWTH*

ABSTRACT A two region model of horizontal innovation with free trade and occupational choice is used to examine the spatial patterns of innovation and manufacturing industry in interior and core‐periphery long‐run equilibria. The inclusion of skill heterogeneity among workers creates a tension between stabilizing productivity effects that coincide with reallocations of workers across industries, and destabilizing productivity effects that arise with localized stocks of knowledge capital. We find that while core‐periphery equilibria are always saddlepath stable, interior equilibria are saddlepath stable when knowledge spillovers exceed a threshold level but are unstable otherwise. In addition, incorporating skill heterogeneity into the model allows for interior equilibria with asymmetric shares for innovation and industry.     

Constrained Labour Agency and the Changing Regulatory Regime in China

Using the concept of ‘constrained agency’ introduced by Neil Coe and David Jordhus‐Lier, this article attempts to evaluate the possibilities and constraints facing labour agency in the Pearl River Delta in China. By reviewing the social, economic and political background of the changing labour market and labour regulations in China, and through an intensive case study of a workers’ strike and its consequences, the author argues that Chinese migrant workers have begun to challenge the state's regulatory regime on labour, which is based on individual rights. However, the introduction of a regulatory framework based on collective rights is being impeded by the party‐state's manipulation of trade unions and the strong influence of global capital on local labour policy.     

THE 2013 ANTIPODE RGS‐IBG LECTURE New Materialisms and Neoliberal Natures

The rise of non‐deterministic understandings of nature, with their emphasis on intensive difference and non‐linear processes, has occurred in conjunction with the neoliberalization of environmental governance, which at once emphasizes and financializes the inherent productivity of nature. This paper accepts the position that there is a link between the two, but argues that if we are to maintain a crucial ontological distinction between capital and non‐capital, this link must be understood as contingent rather than necessary. Drawing upon Deleuze and Guattari's concept of “universal history”, I argue that the neoliberalization of nature must be understood, in part, as the strategic containment of the critical energies of new materialist thought, and that the role of critical historiography is to recognize within processes of containment the contents and qualities of more radical possibilities. If such critical efforts are to succeed they must continually distinguish between nature's innovative force and the mechanisms that seek to capture this force in the service of capital and state. In turn, if we are to remember the radical potential of these ideas, the neoliberalization of nature must be understood as a response to these critical energies, and not their origin.     

La dynamique spatiale des marchés locaux de l'emploi au sein du champ métropolitain de Québec, 1981–2001

Spatial Dynamics of Local Labour Markets in the Québec City Metropolitan Field, 1981–2001
This research analyzes the spatial dynamics (from 1981 to 2001) of local labour markets at an infra-regional scale, namely the Québec metropolitan field, with particular emphasis on interactions between the metropolitan region and its hinterland. It seeks to better understand the factors underlying this evolution. Centrographic analyses were performed to characterize the evolution of the spatial configuration of local labour markets (displacement of gravity centre, shape change, evolution of dispersion indices and of workforce preferential distribution axes). Between 1981 and 2001, almost all employment poles experienced an increase in the mean-distance tied to their recruitment area, that being particularly true for peri-metropolitan poles which employ an increasing part of their workforce inside the metropolitan labour basin, where a more qualified and diversified labour force is available; thus, giving rise to significant reverse commuting. In addition to the influence of distance to metropolitan area, a multiple regression model shows that factors such as manufacturing specialization and employment growth within job centres also play a crucial role in the spatial dynamics of local labour markets in the Québec City metropolitan field.