The Service Sector in the Chinese Economy: A Geographic Appraisal

A U.S.-based economic geographer and observer of China's economy examines the rapid expansion of the country's largely overlooked service sector, at both the national and regional levels. A particular focus of the author's research is on identifying regional variations in the development of services within the country and exploring some of the more important contributing factors. Based on the findings, the paper also discusses structural shifts that occurred in China's regional economies, disclosing inter alia that inequality in the contribution of services to GDP did not follow the same trajectory as that of employment in services. Journal of Economic Literature, Classification Numbers: L800, O180, P230. 6 figures, 4 tables, 82 references.     

China's Exports and Imports of Agricultural Products under the WTO

An American economic geographer specializing in the agricultural sector of China's economy presents a study of that country's trade in agricultural products. The paper is focused on patterns of change in the regional distribution of agricultural and aquacultural exports and imports before and after China's accession to the World Trade Organization in 2001. Drawing on research during the course of a field trip in July 2008 and utilizing data compiled by China's Customs Bureau, the author provides a comprehensive assessment of the country's trade with 10 major world regions through the year 2007. Journal of Economic Literature, Classification Numbers: F14, F40, O13, Q17. 1 figure, 4 tables, 32 references.     

Development of Local Financial Systems in Mainland China

Two Beijing-based economic geographers present a comprehensive study of local financial systems in China. The paper analyzes the most recently available (2006) regional data on exogenous (state-owned, foreign-owned, and joint shareholder-owned) and endogenous (city commercial banks and rural credit cooperatives) banks, highlighting the differences between the country's coastal and the lagging rural provinces located in China's central and western macroregions. A key component of the analysis is the geographic distribution of bank branches and assets. Special attention is devoted to Shanghai, the country's traditional financial center, which has attracted the bulk of foreign-owned banks and financial service providers seeking entry into the vast Chinese market. Journal of Economic Literature, Classification Numbers: G21, G28, O18, P34. 9 figures, 3 tables, 54 references.     

Vietnam: Two Decades of Urban Development

Doi moi, adopted as a policy of economic reform in Vietnam in 1986, has ushered in fundamental and sweeping economic and social changes spearheaded by its cities. The paper, by a senior Hong Kong-based geographer, reviews the country's progress over a twodecade period ending in 2006. Discussion of the first decade focuses on deterioration of urban infrastructure and its causes (as well as the onset of reconstruction) based largely on field interviews, reconnaissance, and review of official documents and reports. Coverage of the second decade's more rapid change highlights legal reforms, privatization, foreign direct investment, as well as regional development. The favorable prognosis for urban Vietnam is examined in the context of the country's accession to the WTO and its hosting of the APEC Summit in late 2006. Journal of Economic Literature, Classification Numbers: O10, O18, O30, P20. 4 figures, 1 table, 26 references.     

Developments in Russian Gas Production Since 1998: Russia's Evolving Gas Supply Strategy

An American geographer and prominent authority on the oil and natural gas industries and resources of Russia and other former republics of the Soviet Union reports on overall trends in Russia's natural gas production in the years following the country's ruble devaluation and financial crisis. The account—based on systematic in-country observations, discussions/interviews with industry executives, and a review of industry sources—focuses on factors affecting domestic supply and demand as well as export capacity (will Russia have enough gas to meet rising domestic demand while fulfilling its export obligations?), regional patterns of production (and performance of Gazprom regional production enterprises), obstacles to the use of associated gas derived from crude oil extraction, and major pipeline construction projects in West Siberia and the Russian Far East. The paper concludes by outlining CERA's forecast for Russian gas production to 2020, also disaggregated by region. Journal of Economic Literature, Classification Numbers: L71, O13, Q40, Q48. 7 figures, 8 tables, 51 references.     

Internet Domains and the Innovativeness of Cities/Regions--Evidence from Germany and Munich

This paper focuses on the factors determining a region's ability to produce Internet content and tries to identify relationships with the role of the same region in the national and global economy. The number of .de-domains is used to measure Internet content production, which serves as an indicator for the innovativeness of the regions in an emerging part of the service economy. Data used for the spatial distribution of .de-domains (1.2 million names at the end of 1999) is original and has not been published before. In the first part of the paper the development of the number of Internet domain names in German regions is described and independent variables to explain the spatial structure are analysed. Results show that those variables that are associated with potentials to create and commercialize new knowledge are especially suited to explain the regions' relative frequencies in domain name counts. However, no single hypothesis alone is able to explain the spatial structure of .de-domains, rather a mixture of factors indicating external economies, creation of knowledge and highly qualified labour is best. The knowledge and attitude of these individuals is crucial for the adaptation and diffusion of an innovation like the Internet. Thus, the Internet does not create new regions but it replicates, at least in Germany, the well-known ranking of regions in terms of high-tech. Concerning high-tech industries and knowledge-intensive services, Munich has stood at the top of German regions for about 15 years; this region will be analysed in the second part of the paper. Munich's national and global competitiveness depends mainly, as for other regions, on the innovativeness of its firms, research institutions, and people. The capability of Internet domain names as an indicator for regional innovativeness is the better the younger this innovation is. Despite the rather decentralized spatial structure of Germany (see the very low primacy index), compared, e.g. with the UK and France, Munich stands out in terms of the number of domain names. Munich's role in the national and global economy is supported by the early adoption of the Internet by the local firms and private users - and vice versa! If one considers the Internet as a basic innovation in the sense of Schumpeter's long wave approach then new combinations of resources in new or old regions can lead to strong national growth, but attended by increasing disparities between regions within the respective nation. We may distinguish two driving forces: the Internet as the basic innovation and the export of the respective content production to other parts of the global economy. Munich serves as a proof for the hypothesis that regions with a large potential of Internet production are also able to export these contents into other parts of the world. Zook's work on regional economic impacts of the Internet on US regions shows that regions with above-average Internet content production and marketing activities do profit significantly from the multiplicator and spin-off-effects of the related exports. Thus, although information can be distributed by the Internet in very short time to all places in the world, it nevertheless produces uneven economic landscapes (and in part manifest the old landscape) that sees the regions with strong Internet content production in a much better position than regions where the Internet consumption prevails, although this still has to be analysed for German regions.     

Disastrous hydropower,uneven regional development,and decolonization in India's Eastern Himalayan borderlands

Sikkim, a small Eastern Himalayan state in India has twenty-seven hydropower projects proposed under the Indian Power Ministry's hydropower initiative that envisions the Himalayan region as the country's "future powerhouse" (Dharamadhikary 2008; Kohli, 2011). In 2011, a 6.9 magnitude earthquake rocked Sikkim, the epicenter of which was located eerily close to two under construction dams and the Dzongu reserve, revered as sacred by Sikkim's Indigenous minority Lepchas. Drawing on interviews with Lepcha residents of Dzongu, and state geologists and disaster management officials, I center my analysis on their encounters with disasters and hydropower infrastructure. Building on decolonial theorizations and scholarship on Himalayan borderlands, I argue that disastrous hydropower forms on historical terrains shaped not only by geophysical conditions but also generations of uneven regional development, and the racialized colonial and postcolonial governance of the Eastern Himalayan frontier. In placing ‘disastrous’ as a prefix to hydropower, I follow my interlocutors who implicate state and private developers in producing disaster conditions in Sikkim even as they evade culpability by discursively shifting blame onto the region's “inhospitable terrain” (GoI 2008: 27). I demonstrate that despite key differences in their relation to state power both Dzongu Lepchas and Sikkimese technocrats, forward a materialist, place-based understanding of precarity, differential vulnerability, and uneven regional development. Centering Indigenous and regionalist critiques, I argue that the recent entry of hydropower development in the Eastern Himalayas, conceptualized by colonial authorities as India's “Mongolian Fringe” (Baruah, 2013), requires a closer attention to the entanglements of frontier-making and racialization in India. More broadly, I demonstrate how disastrous hydropower development in a racialized frontier region offers a productive entry into decolonial theorizing in the Indian context.     

Household Incomes in Central Asia: The Case of Post-Soviet Kazakhstan

Two European geographers present the findings of a sizeable survey (n = 7,515) providing a detailed geographical analysis of household incomes and reliance on personal subsidiary garden plots across Kazakhstan. The authors focus on assessing the extent to which Kazakhstan's rising GDP during the post-Soviet period has coincided with an increase in the general population's personal income and ability to secure adequate food supplies for personal consumption. The fine geographical scale of analysis of the survey data (significantly less coarse than oblast-level data) enabled them to identify regions characterized by "trickle-down" income, largely centered on the country's two main urban centers and areas of resource exploitation. The patterns revealed in the paper have relevance to the debate concerning the uneven distribution of benefits from resource exploitation (notably oil and gas) to Kazakhstan's population. Journal of Economic Literature, Classification Numbers: D100, D310, I300, Q120, R290. 2 figures, 6 tables, 51 references.     

Turkey's Emergence as a Geopolitical Power Broker

In a framing essay commenting on a symposium devoted to Turkey's role in a dynamic geopolitical world system, a prominent American political geographer presents the case for Turkey's evolution from regional power within that system to a key geopolitical balancing agent, reflecting its pivotal location within Eurasia. After first exploring the implications of the collapse of the USSR for U.S.-Turkey relations, he critically assesses the ruling Turkish political party's (AKP) recent foreign policy formulation of Turkey as a leader/role model of its own "civilizational basin" (Middle Eastern and Central Eurasian countries). Citing a range of linguistic, cultural, ethnic, and religious differences between Turkey and the Arab lands, he argues that Turkey's true civilizational basin is limited to Central Asia, where Russia holds geopolitical primacy, and advocates a broader framing of Turkey's geopolitical orientation as reflecting location, economics, oil, water, and natural interests. Such a conceptualization suggests that Turkey's pivotal role as balancing power may not be broadly defined as a bridge between Europe and Eurasia, but rather as a bridge between the EU and Russia. Also, the country's status as a role model may be more applicable for regional powers sandwiched between great powers than for emerging Islamic democracies per se.     

China's New Leaders: Perspectives on Geographic Trends and Realities

A senior American specialist on the geography of China examines several aspects of China's society, economy, regional organization, and geopolitical position in light of the change in the country's leadership at the 18th National Congress of the Chinese Communist Party in November 2012. After a brief comparison of the incoming and retiring leadership groups in terms of backgrounds and past policy pronouncements (as well as discussing the challenge posed by corruption), the author proceeds to discuss a series of key social and regional development policies that may be subject to some degree of change under the new leadership, including hukou and the one-child policy. He then focuses on the 12th Five-Year Plan, which provides a broad outline of the new leadership's goals, and particularly its emphasis on balanced regional development (a commitment to further develop the interior of the country as well as to revitalize the old heavy industrial region, the Northeast). The author then turns to China's growing military (and particularly naval) power in connection with its increasing assertion of territorial claims in the South and East China Seas as well as ability to project naval power across the Taiwan Strait and beyond into the Pacific and Indian Ocean theaters.     

A Preliminary Scheme for the Economic Regionalization of Cuba

The authors propose a scheme of economic regionalization for Cuba, based on Soviet Marxist principles. These include the idea of objective existence of a region, independently of man's will; the need for considering future developmental prospects; energy supply; the prerequisites for integrated development of the regional economy; the presence of a regional specialization; maximum promotion of a geographical division of labor, and the factor of the country's defense capability. The resulting system of six regions in described.     

Iran's “Twenty-Year Vision Document”: An Outlook on Science and Technology

In 2005, Iran outlined its goals in economic, science and technology for the next twenty years, Sanad-e- Cheshm Andaz-e Bist Saleh (The Twenty-Year Vision Document), a working plan to raise the country's ranking to that of the first in the region. This article aims to map Iran's scientific and technological performance over five years since the ratification of the plan. Three main areas of science and technology—the percentage of GDP invested in knowledge, scientific performance and technological performance—were used to compare Iran's scientific output with a set of regional countries. The study revealed that Iran's investment in science to inspire technology (the linear model) has been able to nourish scientific performance in the form of rising publication, whereas the neighboring countries followed a more diversified pathway and inspired science from technological advances. Thus, the number of countries in the region capable of competing with and even outstripping Iran in terms of technological and hence scientific performance has increased.     

Observations on the Influence of High Oil Prices on Russia's GDP Growth

A noted economist and observer of post-Soviet affairs presents a study probing the influence of high oil prices on Russia's GDP growth. The paper analyzes the contributions to the country's GDP by sectors of origin and final use, and pays special attention to the influence of trade margins produced by oil and gas but recorded and placed by Goskomstat Rossii in Russia's trade sector. The author's interpretation of statistical data released by Goskomstat Rossii as well as by Russian customs authorities enables him to conclude that the present-day economic boom in Russia can be characterized as consumption-led growth fueled by oil and gas export revenues. Journal of Economic Literature, Classification Numbers: C67, C82, E23, L71, Q43. 2 figures, 10 tables, 20 references.     

Perspectives on the Potential of Russian Oil

A prominent American specialist on the economy of the former USSR comments on Russian oil in light of a preceding paper on the subject. Noting the congruence of Russia's economic growth with world oil prices, the author points out that the country's growth is endangered by sharp declines in those prices. He also recalls how an oil windfall shaped Russian thinking in the 1970s, questions how long Russia can pump oil at its maximum level by invoking the American experience from 1859 through the peak in 1970 until the present, analyzes the two corporate models in the Russian oil sector, and briefly outlines Putin's new approach to foreign investment in the sector. Journal of Economic Literature, Classification Numbers: L71, O13, O18. 3 figures, 8 references.     

Development of the Internet in Russia: Preliminary Observations on Its Spatial and Institutional Characteristics

A geographer specializing in the emerging information-technology sector of the Russian economy presents an exploratory overview of the "widening" and "deepening" of Internet use in Russia during the 1990s and early years of the 21st century. Separate sections of the paper examine the main stages of Internet development in the country to date, explore regional differences in Internet access and use, and outline progress in the installation of surface telecommunications (including fiber optic) trunklines and intra-city networks. Journal of Economic Literature, Classification Numbers: L86, L96, O32. 3 tables, 17 references.     

Immigration to Russia: Inevitability and Prospective Inflows

A U.S.-based geographer joins a senior Russian demographer in an effort to explore the potential flows of immigrants to Russia (principally from the Commonwealth of Independent States and to a lesser extent from China) to stem the country's recent population decline and compensate for looming decreases in the country's working-age inhabitants. More specifically, they examine the demand for immigration to Russia and assess the likelihood of three possible scenarios (high, medium, and low) to meet that demand by 2026. Particular attention is paid to the likely interplay of immigration and domestic migration in terms of its effects on the future distribution of migrants among Russia's federal districts. Journal of Economic Literature, Classification Numbers: F220, J110, J210, J610. 6 figures, 4 tables, 33 references.     

The Potential of Energy as a Geopolitical Binding Factor in Asia

An American specialist on urbanization and population dynamics in the countries of the former Soviet Union examines changes in Ukraine's population revealed by analysis of that country's first post-Soviet census (2001). Among the more salient developments examined in this second-largest post-Soviet republic are extremely high rates of natural population decrease among Ukrainians and Russians alike, a substantial exodus of ethnic Russians from Ukraine (and in some cases their ethnic re-identification as Ukrainians) with major implications for nationality distribution both at the national and regional levels, and interesting trends involving other minority nationalities such as (Crimean) Tatars, Armenians, and Jews. Journal of Economic Literature, Classification Numbers: J11, O18, R23. 3 figures, 7 tables, 25 references.     

Redistribution of Land in Post-Communist Romania

A geographer discusses changes in the ownership of state and collectivized rural land in post-communist Romania. In an analysis based on historical and recent ownership data as well as on the author's interviews with 205 landholders from East and West Romania, local officials, as well as politicians, the study examines how the country's rural land has been redistributed after 1989. The combination of restitution and distribution is singled out as the unique feature of the Romanian land reform that sets it apart from the less equitable procedures adopted by other post-communist countries. Similarly different, as noted in the paper, is the high share of Romania's agricultural sector in the country's labor force. Journal of Economic Literature, Classification Numbers: P32, Q15, Q24. 4 figures, 4 tables, 38 references.     

The Cost of Illness,Disability, and Premature Mortality to Russia's Economy

An American specialist on Russia's health and demographic situation calculates the economic burden of morbidity, disability, and premature death on the country's economy in 2003, applying a cost-of-illness model commonly used in Western settings. The paper disaggregates direct costs (spending specifically on health care) and indirect costs (productivity lost due to illness and death, measured in terms of lost wages), and distinguishes between current-year versus out-year losses and the costs incurred due to different categories of illness. The paper first analyzes the situation for Russia as a whole before briefly exploring regional variations in elements of cost of illness. Journal of Economic Literature, Classification Numbers: I12, I18, J28, O15. 10 figures, 6 tables, 46 references.     

Russia's Energy Policy: A Framing Comment

A prominent specialist on the Russian economy provides a framing comment on two preceding papers entitled "Russia's Energy Policy" (by Vladimir Milov, Leonard Coburn, and Igor Danchenko) and "Russia's Energy Policy: A Divergent View" (by Matthew J. Sagers). The author argues that Russia's current energy policy should be viewed as an outcome of competition between three overlapping programs. In this context, he identifies three policy models—the old Soviet, the liberal or oligarchic, and the most recent state capitalist. The latter is currently supported by President Putin, who prioritizes diversification of the country's economy at the expense of diminished investments in the oil and gas sector. Journal of Economic Literature, Classification Numbers: L71, O13, Q40, Q48. 2 tables, 2 figures, 22 references.