Noril'sk Nickel: A Global Company?

Two specialists on Russia's minerals industries examine the evidence supporting the argument that the Russian mining conglomerate Noril'sk Nickel can be viewed as a global company. Included among the criteria they assess are the geographic dispersion of the company's markets and operations, the diversified and multinational character of its ownership, whether it has matched the performance standards set by its major international competitors, and the effect of the company's ownership presence on the management style of its foreign operations. A particular focus is on how an ongoing conflict between two major Russian oligarch shareholders (Vladimir Potanin and Oleg Deripaska) has shaped Noril'sk Nickel's ownership and management structure, which is characterized by the continued (background) presence of the state, the lack of any organized policy for training a multinational management cohort, and the absence of a major block of foreign shareholders. In the end, they conclude that Noril'sk Nickel is not a genuinely global but rather a Tier-1 Russian company, albeit one with a global scale of operations.     

Peculiarities of Economic Regionalization in the Ethnic Areas of the Soviet North

A historical account of the formation of national okrugs in the indigenous tribal areas of the Soviet North stresses the need the combining of the undeveloped northern portions of Siberia with the developed southern areas in complementary economic regions in which the economic potential of the south may be used to develop the north. After a certain level of development has been reached, the northern areas may be set up as separate economic regions. This happened in the case of Magadan Oblast (formerly part of Khabarovsk Kray), and it is suggested that the creation of a Noril'sk Oblast in the northern portion of Krasnoyarsk Kray be considered. The new northern industrial centers of Noril'sk and Magadan developed initially in isolation from the traditional reindeer, hunting and fishing economy of the surrounding region; but the traditional and new economic activities have gradually become integrated into a single whole.     

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.     

PROSPECTS OF THE DEVELOPMENT OF PRODUCTION AND SE'ITLEMENT IN THE NORTHERN YENISEY REGION

A long-range regional planning forecast of economic development and settlement in the North Yenisey region of Siberia, up to the year 2000, envisages the formation of several territorial production complexes based on the development of mineral resources (the nickelcopper-platinum reserves of the Noril'sk district, aluminum raw materials, iron ore, oil and gas and graphite) and hydroelectric development (hydro stations at Osinovo, Stony Tunguska, Maygunna, Kureyka and Khantayka, and ultimately Igarka and Lower Tunguska). The basic urban centers, in addition to Noril'sk, would be Osinovo, Novoturukhansk and Igarka. Urban population is expected to increase from 220,000 in 1970 to 480,000, and rural population from 40,000 in 1970 to 300,000.     

China's Dynamic Industrial Sector: The Automobile Industry

Two leading Beijing- and Singapore-based economic geographers examine the recent developments and spatial change in China's automobile industry (currently the world's third largest). The paper covers changes in market share among major automobile transnational corporations as well as domestic assemblers; industrial restructuring in the form of product diversification (SUVs to hybrid cars) and production concentration; the massive increase in exports of motor vehicles; and the rise of new automobile production centers. Also included in the paper is a case study of the firm Chery to illustrate the development path of Chinese domestic car assemblers. The embeddedness of transnational corporations and deregulation by the Chinese government are advanced as the two major factors that shape the car industry's geographic distribution in China. Journal of Economic Literature, Classification Numbers: D20, F21, L62. 15 figures, 2 tables, 46 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.     

The Regional Dimension of Russian Oil Production: Is a Sustained Recovery in Prospect?

An American geographer and prominent authority on oil and natural gas industries and resources of Russia and other former republics of the Soviet Union presents a region-byregion account of Russia's oil production, tracing in considerable detail developments up to September 2006. The account, based on systematic and frequent field investigations since the early 1990s as well as interviews with key industry executives, covers reserves, output trends, ownership, investments, pipelines, and a variety of economic factors including exports to China. Addressing the question of whether sustained production recovery is possible, the author presents American and Russian scenarios projecting oil output through the year 2020. Journal of Economic Literature, Classification Numbers: L71, O13, Q40, Q48. 8 figures, 7 tables, 64 references.     

MODERNIZATION OF SOVIET AGRICULTURAL MACHINE BUILDING: THE EXAMPLE OF TRACTOR PRODUCTION

The Soviet agricultural equipment industry produces over 40 percent of the world's tractors. It also is a major world producer of combines and other agricultural equipment. Nevertheless, almost three-fourths of the 33 million Soviet agricultural workers are classified as manual laborers. This paper focuses on how the industry is being modernized to address this problem, and how this effort fits into the overall program of economic restructuring. It also briefly examines some of the spatial dimensions of agricultural machinery production, including the distribution of tractor assembly plants within the country and some of their locational factors.     

Transport Development of the Middle Ob'oil District

Two basic alternative transport systems are analyzed for the new oil-producing district along the Middle Ob'valley in West Siberia. One is the construction of a railroad parallel to the Ob' River; the other is the use of the waterway itself. Comparative cost analysis suggests that the railroad would be economical only for very large traffic volumes, not expectable in the foreseeable future. By 1980–1985, expected freight flows may justify construction of the western section of the proposed railroad in the oil district itself. Instead of an eastward extension, the author advocates a continuation toward the rich gas and possibly oil prospects in the northern part of the West Siberian plain, and ultimately to Noril'sk. The paper was published before the Soviet Union announced, in early 1970, that the accelerated development of the oil district required construction of the western section of the Ob'valley railroad in the 1970s.     

China's Dynamic Industrial Sector: The Internet Industry

A Singapore-based economic geographer explores and analyzes the spatially uneven evolution of the Internet industry in China, arguing that the country's immense regional disparity in the provision of Internet services is best explained by the interplay of place- and path-dependence. The author demonstrates how the highly uneven regional endowments in relevant industrial and entrepreneurial resources have led to the substantial and persistent regional imbalance within China's emerging "new economy." His initial survey of the country's 100 leading Internet content providers (firms), identified from a listing of ca. 11,700 commercial websites, is selectively augmented to reflect an increase of over 70 million Internet users in 2007, reaching a total of 253 million in June 2008, and thus overtaking the United States as the world's largest Internet market. Journal of Economic Literature, Classification Numbers: L10, L86, O30. 6 figures, 1 table, 53 references.     

On the Abandonment of Coffee Plantations in Jamaica after Emancipation

Historians who have studied Jamaican coffee plantations have concluded that plantation production was insignificant after about 1850. I argue that this conclusion is based on an uncritical acceptance of the information contained in one source, a report of the House of Assembly. A critical reading of this document, in its historical context, casts doubt on the conclusion. I further show that many more plantations survived into the 1880s than has been previously recognised. These plantations, although producing a relatively small proportion of Jamaica's coffee, were central to building Jamaica's reputation as a producer of some of the world's best coffee.     

Business and Decolonisation in Central Africa Reconsidered

This article re-examines the role of the copper mining industry during the decolonisation of central Africa. By focusing on the actions of the Anglo American Corporation, and the Rhodesian Selection Trust's (RST) American parent company, American Metal Climax (AMAX), it expands on Larry Butler's recent article and argues that Anglo American continued to support the federal prime minister, Sir Roy Welensky, following their public withdrawal of funding from his governing United Federal Party in May 1959. This marked divergence with RST's policy of engagement with aspirant African leaders was driven by the company's close personal links with Welensky as well as geopolitical factors. Furthermore, the influence of RST's American connections on directing the company's policy should not be understated. Harold Hochschild, AMAX's chairman, played a pivotal role in directing RST's strategy.     

Observations on the Problematic Potential of Russian Oil and the Complexities of Siberia

An economic geographer and noted American observer of the Russian oil industry since the early 1970s examines the mid-term (15 to 20 years) sustainability of the current surge in oil production, particularly in light of the many complexities affecting the existing and potential petroleum resources of Siberia. Analysis and discussion cover the role of vertically integrated companies, the impact of geological and geographical constraints, the reserve pyramid, and significant aspects of the institutional and political environment, such as ownership, taxation, access to pipelines, export routes, and the role of foreign capital. Distinguishing West Siberia from the oil frontier of East Siberia and the Far East, the author argues that the present boom is not sustainable. Journal of Economic Literature, Classification Numbers: L71, O13, O18. 1 figure, 2 tables, 83 references.     

Russia's Energy Policy, 1992-2005

A team comprising a former Russian policymaker and American analysts of the current Russian energy policy examines the course of that policy and its limitations during the post-Soviet period. In the process, they critically analyze key problems in Russia's oil, gas, coal, and electricity sectors that represent a potential drag on growth of the entire Russian economy and at the very least call into question the sustainability of further increases in exports to the West. The authors explore in considerable depth and detail both the factors underlying the recent increase in government intervention in the energy sector and the likely consequences for domestic production, consumption, resource security, and critical exports. Journal of Economic Literature, Classification Numbers: L71, O13, Q40, Q48. 11 figures, 3 tables, 29 references.     

China's Shoe Manufacturing and the Wenzhou Model: Perspectives on the World's Leading Producer and Exporter of Footwear

A U.S.-based geographer and specialist on China advances his research on industrial districts and regional development by presenting a 2008 study of shoe manufacturing in Wenzhou (a major center in the world's largest footwear producing and exporting country). More specifically, the author examines how the model of economic development pioneered in Wenzhou (the Wenzhou model) has been transformed in an effort to meet the challenges posed by the global economy. He argues that the scaling up of Wenzhou's footwear industry, through the expansion of sales networks and factories across China and abroad, indicates that other adaptable city regions can overcome similar obstacles. The author challenges both the New Regionalism literature focused on local institutions and assets, as well as perspectives that overemphasize the benefits of globalization and global production networks. Journal of Economic Literature, Classification Numbers: O100, O140, O180. 2 figures, 3 tables, 60 references.     

A New Energy Age in Pacific Russia: Lessons from the Sakhalin Oil and Gas Projects

A noted British specialist in Russia's economic geography and the Far East region presents a comprehensive account of the development of the onshore and offshore oil and gas deposits of Sakhalin. Following a review of early multinational activity in geological surveying and exploration during the 1970s, he charts subsequent changes in the entities formed to develop and exploit the deposits (Sakhalin-I and -II) later in the Soviet period and during the first two decades of Russian independence. These changes have responded to improved knowledge of the geology of the deposits and changing relations between the Russian central government and Sakhalin regional authorities. Also analyzed are efforts by the Russian side to overturn or otherwise modify terms of previous agreements deemed unfavorable, and maneuvering by China and Japan to secure increasing sources of supply for their markets. With Sakhalin's two core projects now entering the active production phase, the author distills a number of key issues that have shaped the development of the island's offshore hydrocarbon resources and will have a bearing on prospects for a future generation of less spectacular new projects (incremental development); he also outlines wider lessons that have been learned over the life of Sakhalin's projects. Journal of Economic Literature, Classification Numbers: F210, L710, L950, P330, Q400. 4 figures, 2 tables, 45 references.     

Russia's Managers in Transition: Pilferers or Paladins?

Two American economists use their recent (1994 through 1996) survey data to evaluate Russian managers as winners or losers in the country's economic reform. The survey covered 123 enterprises located in Moscow, Tver', Nizhniy Novgorod, Rostov, Taganrog, Volgograd, Volzhskiy, and Novosibirsk. A total of 159 interviews, involving top-level managers, were conducted to elicit information on compensation, decision making, workforce size, structure of overhead costs, asset stripping, and survival strategies. The interviews, most in privatized (N= 107) and private (N= 31) firms, embraced 64 in heavy industry, 35 in light industry, 29 in food processing, 25 in service, and 4 in other industries. The study reports empirical results of the testing of five hypotheses, as well as concluding observations. Journal of Economic Literature, Classification Numbers: D21, D63, Ml 3. 6 tables, 90 references.     

Perspectives on the Caspian Sea Dilemma: Russian Policies Since the Soviet Demise

An American political scientist specializing in Soviet and post-Soviet foreign affairs outlines the highlights of Russian policy in the Caspian region from 1991 to late 2003. The paper discusses and analyzes the interaction among the five littoral states (Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan) in light of contentious disputes over the sea's demarcation, the routing of pipelines, and efforts to maximize oil and gas exports to the West. Noting instances of "gunboat diplomacy" used by Russia and Iran, as well as the American presence in the region after 9/11 and during the current war in Iraq, the author reflects on the Russian role as a stabilizing force in the region. Journal of Economic Literature, Classification Numbers: O18, Q30, Q40. 1 figure, 74 references.     

Geographical Problems in the Development of Machine-Building in the Ob'-Irtysh Complex

The machinery manufacturing industry in the Ob'-Irtysh complex, as in other economic regions of the USSR, works mainly for the national market. Only a fraction of most machinery needs of the Ob'-Irtysh are being met by local production, concentrated at Tomsk, Omsk, and Tyumen'. In view of the current oil and gas development program in the region, it is suggested that plants for the manufacturing and, especially, the overhauling of oil and gas equipment and drilling rigs be constructed at Tyumen' as well as at Tobol'sk, which is closer to the oil and gas fields. At the present time more than 90 percent of the oil equipment and drilling rigs are supplied from outside the region. A number of regional centers are found suitable for expansion of machinery manufacturing. In the future the region's machine-building industry is expected to perform the dual function of supplying the eastern zone of the Soviet Union and of satisfying local machinery requirements to a greater extent, particularly the needs of the oil and gas industries.