The Russian Natural Gas Industry in the Mid-1990s

Russia's natural gas industry has been enormously successful over the past quarter century (gas production increased nearly eightfold between 1970 and 1990 and exports outside the territory of the former USSR increased by 33 times), an outward success that appears to have carried over into the difficult transition period of the last five years; output has remained almost stable despite unprecedented declines elsewhere in the economy. Still, in recent years, with the overall economic and political transformation, the situation has become far more unsettled for the industry. This paper identifies and analyzes emerging new forces associated with the economic transition and assesses their likely impact upon the natural gas sector in terms of production trends and related developments in demand (both in terms of internal consumption and exports). 6 tables, 3 figures, 41 references.     

Resources,regulation and the state: Struggles over gas extraction and passive revolution in Evo Morales's Bolivia

The indigenous-influenced policies of Evo Morales's Bolivia represent arguably the most important attempt to improve the socioenvironmental implications of resource extraction in recent years, reasserting the role of the state and social movements against ‘corporate-led governance’. In this paper, through combining the regulation approach with neo-Gramscian state theory, I carry out a conceptually informed analysis of struggles over hydrocarbon governance in Bolivia, in order to shed light on the reasons why such an ambitious political project has largely failed to realise its transformative potential. I make two interrelated arguments. First, initial, important advances in the governance of resources in Bolivia were later partially reversed, due to shifting power relations between social movements, the hydrocarbon industry, and the state. This points to the need of understanding resource governance and its changes as reflecting or ‘condensing’ shifting power relationships among social forces. Second, the coming to power of Evo Morales resulted in a ‘passive-revolutionary’ process whereby an initial radical break with the neoliberal order was followed by a gradual adaptation to pre-existing political economic relations and arrangements. Most notably, plans to reduce the country's dependency on gas exports as well as to challenge the transnational domination of the hydrocarbon sector were abandoned, generating an increasingly explicit incompatibility with indigenous demands. I conclude that neo-Gramscian theory offers important insights that enable us to advance our conceptualisation of the state in resource governance research and in political ecology more generally.     

Performing Development in Street Markets: Hegemony,Governmentality, and the Qat Industry of Sana’a,Yemen

Abstract: A legal drug commonly consumed in Yemen, qat is often a flashpoint over development and business practice. Qat markets are sites for exploring the interaction between cultural economic practices surrounding qat production, urban politics, and broader questions of development in Yemen. Given the weakness of the Yemeni state relative to other institutions, this context is particularly helpful in theorizing localized forms of governance. Using interviews with various members of the qat industry in Sana’a, Yemen's largest city, this paper discusses the spatial and discursive strategies of qat vendors as they seek to produce and regulate their economic spaces. Central to this discussion is an exploration of Laclau's framework of hegemony and Foucault's ideas of governmentality, in the context of struggles for control over economic space playing out on the streets of Sana’a.     

China's "Dash for Gas": Challenges and Potential Impacts on Global Markets

Two UK-based researchers examine the significant recent growth in China's demand for natural gas, a fuel not long ago considered of marginal importance but now viewed as critical for the country's future economic growth. Based on a range of databases as well as industry and media reports, the authors demonstrate how rapid demand growth since 2005 has transformed China from a minor, self-sufficient gas producer to a major buyer on international gas markets. They also analyze projections for future demand growth (25 years), showing China's demand for gas will grow faster that anywhere else in the world, and explore the potential for development of China's substantial domestic gas reserves to mitigate import demand over the short to medium term. The study concludes with an assessment of China's potential impact on global gas markets over short, intermediate, and long time horizons.     

Stabilizing neoliberalism in Bolivia: popular participation and privatization

Neoliberal theorists and development practitioners contend that economic liberalization and privatization lead to increased private sector productivity and decentralization accompanied by administrative reforms lead to greater democracy, more efficient public sector investment, and faster local development. Examination of the Bolivian case, which has been promoted as a global model for neoliberal restructuring, presents a different picture. There, economic restructuring and privatization have led to a decline in government revenues and a continuing economic crisis. Privatization of public services has led to rate hikes, which, in turn, have generated massive social protests. Political restructuring through decentralization has as often resulted in the entrenchment of local elites as in increases in truly democratic control of resources and social investments. This economic and political restructuring has also served to territorialize opposition to privatization and neoliberal economic policies and, in some areas, reinforce regional social movements. When examined together, it becomes clear how economic and administrative restructuring has sought to provide transnational firms both access to Bolivian natural resources as well as the social stability necessary in which to operate. As privatization through the Law of Capitalization further opened the country’s borders to global capital, the decentralization program through the Law of Popular Participation served to focus the attention of popular movements from national to local arenas. While foreign investment has increased, the lack of benefits for the majority of the country has led to mounting regional social protests in the face of reduced government spending on social programs and increased prices for basic services.     

China's Energy Future: A Framing Comment

A noted Hong Kong-based specialist on China's energy industries presents a comment on three papers comprising a symposium on that country's rapidly expanding oil, natural gas, and nuclear power sectors. He frames his observations around five overarching themes that have shaped China's energy sector development over recent decades and will continue to do so in the future. These include observations to the effect that: (a) China's energy policy seeks broadly similar objectives to those of other countries; (b) the country's energy resource endowment is not particularly rich when viewed in relation to the size of its population; (c) its energy mix continues to be dominated by coal, with important implications for the environment and domestic freight transportation; (d) the country's economy is confronting a pronounced spatial mismatch between the location of energy resources and the markets where they are consumed; and (e) strategies for energy developments in China are closely tied to overriding political and economic concerns at any given point in time.     

The Clean Energy Dilemma in Asia: Is There a Way Out?

A prominent American geographer and specialist on energy and environmental policies in developing countries assesses the challenge to sustainable development posed by Asia's rapid economic growth and the concurrent need to reduce the environmental impacts of energy production and use. A particular focus is on China and India, as rapidly growing energy consumers and greenhouse gas emitters, and on Russia as a potentially important supplier of natural gas and liquid alternatives to coal use. The author suggests some elements of a strategy to resolve the dilemma of reducing global environmental impacts without penalizing Asia's economic development, although a significant energy transition over the next several decades appears quite difficult.     

How China Navigated the Dilemma of Trade Liberalization and Government Revenues

Many economists believe that in the long run, the aggregate performance of open economies is better than that of closed ones, and that open policies contribute significantly to economic development. At the same time, many political scientists and policy makers fear that, in the short run, one of the steps towards openness — trade liberalization — may harm government revenues. However, in the 1990s, China successfully navigated the dilemma of trade liberalization and government revenues. In this period, China decreased tariff and non‐tariff barriers for WTO accession, but has achieved dramatically increased tariff revenues since 1999. This study explores how China implemented trade liberalization and simultaneously increased tariff revenues in the 1990s. It demonstrates that a series of institutional arrangements, including a reform of Criminal Law, rigorous anti‐smuggling activities and a de facto tax imposed on the export sector, successfully curbed smuggling activities through the processing trade, and made foreign‐invested manufacturing enterprises the major contributors to the stability of customs revenue. China's case shows that a prosperous, export‐oriented and foreign‐invested manufacturing sector could potentially provide a developing country with a source of customs revenue.     

The Great Russian Depression of the 1990s: Observations on Causes and Implications

A senior Japanese economist briefly examines the causes of Russia's great economic depression of the 1990s, highlighting the important role of the ruble exchange rate. The author argues that “liberalization” of exchange markets contributed substantially to the depression, because of the “dual” nature of the Russian economy (strong energy sector and weak manufacturing sector). Journal of Economic Literature, Classification Numbers: E50, E58, F31. 7 tables, 22 references.     

Women's Empowerment Through Home–based Work: Evidence from India

This article examines the extent to which home–based production in the garment sector of Ahmedabad, India, serves to empower its female participants, defining empowerment in terms of control over enterprise income and decision–making within the household. It places this question within the literatures on resource theory and bargaining models of the household, both of which posit that improved access to resources increases women's power in the household. This study highlights why access to resources may not lead so directly to improvements in women's position in the household in the Indian context. It then discusses why home–based work may be less empowering than sources of work outside of the home. The arguments about the empowerment potential of women's access to resources through home–based work are tested by examining, first, the determinants of control over the income generated by women in home–based garment production and, second, to what extent access to and control over income from this source translates into involvement in decisions which are atypically women's and yet important to their lives. The results provide a better understanding of the potential of home–based work to offer women in urban India a source of economic activity that also can translate into increased intra–household power.     

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.     

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.     

Rural drinking water governance politics in China: Governmentality schemes and negotiations from below

This paper examines the politics of rural water governance in China through a governmentality lens and village water intervention case. The China Rural Drinking Water Safety Project (RDWSP) was an attempt to control water, while also serving as a tool of power to impel the rural population towards national development goals. The authors analyzed official documents and conducted interviews in a village in Shandong Province to investigate the RDWSP's rationale and practices, as well as how water access and management were negotiated by rural water users. The paper argues that (1) confronted with a decline in local governance capacity and in an effort to rectify the mistakes of the supply-driven, technocratic paradigm, the RDWSP attempted to integrate social, environmental and economic concerns but did not achieve that goal; (2) the decline in local governance capacity and people's pragmatic everyday strategies contributed to an individualized approach to solving water problems, reflected in people's disengagement from the government project and local participation, an effect that may sustain people's marginalization and exclusion from good-quality water access and management. Using the Chinese water project as an example, the paper contributes to the debate on state-induced water control versus civil society “counter-conduct” formed by daily interactions. Furthermore, it enriches the study of politics in general by presenting the state as a site of contested institutionalization and ongoing negotiations, confronted by everyday narratives and encounters with marginalized citizens that go far beyond and are far more complex than overt resistance or covert weapons of the weak.     

SOVIET ASIAN-PACIFIC TRADE AND THE REGIONAL DEVELOPMENT OF THE SOVIET FAR EAST

During the 1970s and early 1980s it was generally accepted, by both Soviet and Western specialists, that in the Soviet Far East the expansion of exports to the nations of the Pacific Basin offered a solution to the region's economic problems. However, recent policy statements suggest the rejection of this export-led development strategy. This study examines the changing structure and dynamics of Soviet trade with the Asian-Pacific region. At present, for a combination of economic and political reasons, Soviet trade with the Asian-Pacific region is dominated by exports of machinery and equipment and petroleum to the socialist nations of the region, inasmuch as Japanese demand for Soviet natural resources is stagnant. Therefore, because of the resource orientation of the Far Eastern economy, contemporary trade relations do not favor the expansion of the Soviet Far Eastern export base. Consequently, the future role of the region in the national economic system will be determined largely by the availability of domestic capital investment funds.     

Offshore Mineral Development in the Russian Barents Sea

Two Norwegian researchers examine the forces alternatively driving and hindering offshore hydrocarbon development in the Russian sector of the Barents Sea. The paper describes exploration activities beginning during the Soviet period and extending to the present, the status of the major development projects financed in part with foreign capital, and conflicting regional and central government interests involved in such development. Coverage includes the emergence of Rosshelf, an oil/gas conglomerate formed to facilitate defense conversion activities of major naval shipyards. Critical to analysis of the projects' potential is assessment of alternative gas supplies and energy development strategies. Journal of Economic Literature, Classification Numbers: O13, Q40, R10. 3 figures, 1 table, 63 references.     

Shale gas and the revival of American power: debunking decline?

The spectre of American decline is once again animating both observers and practitioners of US foreign policy. The global financial crisis, a faltering American economy and continued costly and controversial military engagements overseas have been presented as conclusive proof that American foreign policy will soon lack the resources needed to sustain its previous international hegemony. Arguments of domestic weakness have been linked to analyses of the economic vitality of America's competitors to demonstrate a seemingly watertight case for relative decline. The inexorable rise of China has been presented from various quarters as evidence that the American era will soon be drawing to a close. Yet, such declinist arguments continue to suffer from fundamental weaknesses, overestimating the likely future strength of America's rivals while concurrently downplaying the capacity of the US to rejuvenate its economy and thus revivify its liberal universalist creed. The most interesting development in this regard has been the sudden resurgence of the US energy sector. Written off less than a decade ago as being in terminal decline, the American oil and gas industry has staged a remarkable recovery. Vast reserves of shale gas and accompanying tight oil offer the potential to aid the revival of the American economy, with some forecasts pointing to US energy self‐sufficiency within two decades. Notions of US relative decline may yet prove premature. The geopolitical impact of American energy self‐sufficiency is likely to be very significant, making an important contribution to a reversal of the US trade deficit, a revival of America's industrial base, and the possibility of a corresponding relative decline in power for conventional fossil fuel exporters.     

Governance and cooperation in Euroregions: border tourism between Spain and Portugal

There are several obstacles to establish tourism governance policies in a border area and to improve the conceptualization of tourism in border territories transcending the transnational level, using territorial delimitation at Euroregional level. At borders, tourism usually works as a strategic policy tool to strengthen the regional image, shape common identity narratives and facilitate interactions, becoming these regions, nowadays, challenges for the actors of the territory, representing a priority area for the application of territorial development strategies at local level and at the level of the European Union itself. A qualitative analysis was based on performed semistructured interviews with key tourism stakeholders. From the interviewee? perspective, cooperation should be achieved through cooperation agreements between the business sector and economic agents to develop natural, cultural and heritage resources.     

Russia’s gas “Triopoly”: implications of a changing gas sector structure

The growth strategies of the two largest so-called independent Russian gas producers – Novatek and Rosneft – as well as developments in international markets and changing domestic energy needs have put pressure on the present Russian gas sector model dominated by Gazprom. The three companies are involved in a struggle over export liberalization as well as the conditions in the domestic market. Liquefied natural gas is top priority for Novatek and Rosneft’s main gas focus is on eastern Russia and Asia, but there is still room for considerable tension with Gazprom. The government wants to both improve Russia’s position in export markets and maintain stable domestic supplies, including to socially disadvantaged regions and institutions. Gazprom is insisting that if further access to export markets is granted to the Independents, then they must take greater responsibility for domestic market obligations. On the other hand, the key Independents seem intent on stopping or slowing down their expansion in the domestic market in order to prioritize export sales, and will certainly not take broader domestic supply responsibilities without better access to export markets. The balancing of policies involves strong players on the Russian economic and political scene, all with ties to the Kremlin.     

Micro-level assessment of regional and local disaster impacts in tourist destinations

ABSTRACT

The tourism sector faces severe challenges due to the economic impacts from changing natural environments as seen with the increased frequency of natural disasters. Therefore, analyses of disaster impacts models are necessary for managing successful tourism recovery. Typically, disaster assessments are conducted on a countrywide level, which can lead to imbalanced recovery processes, and a distorted distribution of recovery financing or subsidies. We address the challenges of recovery using the tourism disaster management framework by Faulkner. To calculate precise damage assessments, we develop a micro-level assessment model to analyze and understand disaster impacts at the micro-level supporting tourism recovery in an affected destination. We examine economic consequences of a disaster at a small regional scale arguing recovery from a natural disaster is more difficult in individual areas because of differences in geographic location or infrastructure development. The island of Dominica is chosen as an example for the model using statistical data from the tourism sector to outline and detail the consequences of a disaster specifically for communities. The results highlight the importance of damage assessments on a small-scale level, such as communities in order to distinguish between individual regions facing severe changes for resident livelihoods and the local tourism sector. We argue that only after identifying regional impacts it is possible to apply adequate governmental subsidies and development strategies for a country's tourism sector and residents in a continuously changing environment in the hopes of mitigating future financial losses and future climate change impacts.     

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.