Global Value Chains,Industrial Policy and Economic Upgrading in Ethiopia's Apparel Sector

This article examines whether low-income countries can still benefit from participating in manufacturing global value chains (GVCs) in terms of broader industrial development in a global context of greater competition and higher requirements. It contends that developing internationally competitive local firms and domestic linkages, in addition to upgrading, is crucial for participation in GVCs to drive industrialization. The study focuses on Ethiopia's recent experience with developing an apparel export industry through strategic industrial policy. Based on original empirical data collected through firm-level surveys and interviews with government officials, industry experts and buyers, the article analyses the upgrading and localization trajectories of foreign and local apparel-exporting firms. It argues that value-capture benefits in assembly positions in apparel GVCs have become more difficult. The potential for localization benefits depends on the type of global buyers and foreign producers and their levels of embeddedness, but whether this potential is realized also depends on local firm characteristics and related industrial policy. Ethiopia's industrial policy has been relatively successful regarding national economy linkages, but less successful in developing competitive local export firms due to a weak local manufacturing tradition combined with a global context that has led to a supplier squeeze.     

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.     

Kin state non‐interventionism: Albania and regional stability in the Western Balkans

This article provides a comprehensive analysis of Albanian regional policy from 1992 to 2013. Situated in a conflict‐ridden region and surrounded by co‐ethnics living in Kosovo, Macedonia, Montenegro and Serbia, Albania has successfully resisted pressure to undertake interventionist regional policies. However, there are no structured accounts as to how Albania fashioned its non‐interventionist regional policy. This article fills this gap and retraces the development of Albanian regional policy as a function of its inter‐mingled domestic politics and regional and international dynamics. The article concludes that the Albanian regional approach has been shaped by its legacy of communist isolation, pro‐Western predisposition and recognition that accommodation of Western interests would overcome its constraints and advance the rights of Albanians living in the Western Balkans. The analysis is important not just for understanding Albania's actions but also for disentangling the relationship between regional policy, nationalism and a kin state's domestic and international constraints.     

NATIONAL INDUSTRIAL POLICY AND ECONOMICALLY DISTRESSED COMMUNITIES

Industrial policy refers to deliberate government actions to affect the growth or decline of firms or industries for the sake of aggregate national prosperity and international competitiveness. This paper presents empirical evidence that policies designed to promote these objectives would be targeted differently from those designed to promote development of economically-distressed regions and communities. Facing multiple objectives, it is difficult for the public sector to pursue industrial growth directly as effectively as can private entrepreneurs. However, government aid to economically-distressed locales and dislocated workers and firms may indirectly support national industrial policy goals.     

Neoliberalism and Suburban Employment: Western Sydney in the 1990s

During the past 15 years metropolitan planning strategies of the NSW state government have done little to address the spatial distribution of either employment or labour market equity within the metropolis. In the fast‐growing outer western suburbs, the government has focused on attracting business investment to increase the stock of local jobs and to improve employment ‘self‐sufficiency’— a dominantly neoliberal policy framework. This paper explores a widening gulf between the reality of outer urban change and this policy framework by considering changes in the location of jobs and in the employment experiences of residents in Greater Western Sydney (GWS). Evidence is drawn from census journey‐to‐work data (1991–2001). While holding a majority of manufacturing jobs in Sydney, GWS also experienced continued growth of jobs in service industries during the 1990s. Yet the relative importance of employment in the city's fast‐growth finance and business services sector still lags well behind that of inner and northern parts of the city. The focus on growing the regional stock of jobs has not addressed problems of labour market access faced by residents of particular localities and the goal of employment self‐sufficiency has not delivered greater equity to outer suburban labour markets. A focus on sufficiency of access to employment for residents of GWS draws attention not only to regional stocks of jobs but also to the provision of social infrastructure and state‐provided services to outer suburban populations as they continue to expand.     

Economic development and industrial policy in Baden — Württemberg: Small firms in a benevolent environment

Baden‐Württemberg is one of the strongest regional economies in Germany. Quite commonly, its success is explained by the technological competence of its industry, by the flexibility and ingenuity of its many small and medium‐sized firms, and by the impact of an active industrial policy. Today, however, the region has to cope with severe economic problems, and there is some evidence that these problems — at least partially — are due to its praised specific industry structure. On the other hand, there is reason to believe that the region will manage the required structural adjustment — not at least because of its well developed institutional profile. Thus, although the story of success of Baden‐Württemberg has to be revised somewhat, there are lessons to be learned with regard to industrial policy and the promotion of (regional) economic development.     

Contestability ‘theory’, its links with Australia’s competition policy,and recent international trade and investment agreements

This article examines how contestable market theory (contestability) has come to reconfigure the economic and regulatory concept of competition in order to enhance the compatibility of Australia’s economy with international trade and investment agreements. Australia has recently negotiated and signed a raft of bilateral, plurilateral and regional agreements, including the Trans-Pacific Partnership Agreement and the Australia–China Free Trade Agreement. In order to ensure that Australia meets its obligations and commitments to these agreements, two key advisory bodies—the Harper Panel on Competition Policy Review and the Financial System Inquiry—made recommendations, the majority of which were accepted by the government, to ready Australia’s competition governance and economic policy for greater global integration. Such impact is dependent on, among other things, how domestic competition policy meshes with the free market ideology underpinning such international agreements, which favours the breakdown of barriers to markets. Less well known is the role of contestability in radicalising ideology as it countenances monopolisation and privatisation in the guise of market access by justifying the substitution of actual competition with the mere threat of competition. The article concludes that the monopoly power of transnational corporations will be enhanced through the acquiescence of governments to the new governance regime of the Trans-Pacific Partnership Agreement, which, supported by domestic policy, is set to redraw competition policy in the light of contestability theory.     

Decentralized Industrial Policy in Germany. Case Study: Bavaria

Bavaria has achieved a dynamic change in its economic structure since the end of World War II, having evolved in the last four decades from an agricultural to a well-performing modern and service state. A wide variety of R&D-, SME- and infrastructure-oriented industrial policy measures have significantly contributed to the establishment of new small firms and job creation, the modernization of industrial structure as well as the economic and technology development in this German state. Bavarian industrial policy also stresses the subsidiarity principle and the working-together-through-dialogue principle of various groups including government, firms, trade unions, interest groups, etc. This type of loosely defined industrial policy has functioned remarkably well in the Bavarian-specific framework, in which a few large leading firms of international renown, in combination with the strong SME-basis, have played a key role for the rapid development. This study examines some major characteristics of regional industrial policy measures in Germany, taking Bavaria as a successful case.     

Going Global: Assessing Presidential Foreign Travel

Abstract

Since President Franklin Delano Roosevelt broke the “Ironclad Custom”—and especially following World War II—presidents have routinely traveled outside of the United States to visit other countries and meet foreign leaders and publics. Presidents are expected to engage in face-to-face diplomacy, but they must also be present and active in domestic politics. To balance these pressures, presidents need to be strategic and mindful of their limited political resources and the opportunities the political environment creates. How, then, do international and domestic political resources and opportunities affect the extent and frequency of foreign travel? To examine this question, we collected and analyzed a dataset of presidential foreign travel—number of trips, countries visited and days spent abroad—during the post-World War II period (1953–2016) and estimated the frequency of travel with a set of explanatory variables that capture U.S. foreign involvement as well as the domestic policy agenda and political incentives that affected presidents from Eisenhower to Obama. Our findings demonstrate that domestic policy and political incentives are strong determinants of presidential foreign travel.     

India's ‘non‐alignment’ conundrum: a twentieth‐century policy in a changing world

The idea of non‐alignment has remained a central component of Indian identity in global politics that is manifest in continuities: since independence in 1947 India has been in pursuit of strategic autonomy, a quest that in practice has led to semi‐alliances fashioned under the cover of non‐alignment and shaped by regional dynamics. In this setting, the rise of China now raises an interesting conundrum for Indian policy‐makers as New Delhi seeks to balance the benefits and risks of an increasingly assertive neighbour and a network of alliances with like‐minded countries. This article approaches this enigma by delineating continuities of non‐alignment from the early roots of the policy, through the Cold War‐era and into the modern‐day international system. Though domestic factors have had a significant influence on the trajectory of Indian foreign policy, the continuities of non‐alignment have prevailed through changes in leadership and domestic vicissitudes. By exploring the foundation of non‐alignment and how India has operationalized the policy, this article maintains that to some extent continuity will persist: India will likely continue its rhetoric in favour of strategic autonomy while moving closer to the West and its allies in practice. Yet in order to effectively balance China's growing influence, India will need to be more assertive in building these alliances, as the success of its modern‐day pursuit of strategic autonomy may well rest on a strong foundation of strategic partnerships. The coming to office in May 2014 of the National Democratic Alliance government led by Narendra Modi has signalled a move away from even the rhetoric of non‐alignment, with significant implications for the future of Indian foreign policy.     

Labour Regime Transformation in Myanmar: Constitutive Processes of Contestation

This article studies the case of a workers’ strike in Myanmar's ready‐made garment sector to illustrate how differently‐situated actors have engaged at multiple scales to influence emerging forms of labour regulation in the country. The analysis is drawn out through the historicization of domestic regulatory transformation. As a hegemonic project targeting industrial peace for purposes of capital accumulation, Myanmar's labour regime has been shaped by various actors outside of government circles, including International Labour Organization (ILO) personnel, Myanmar trade unionists, foreign governments, transnational corporations, domestic capitalists and Myanmar workers. Proposing a multi‐scalar reading of labour regime transformation attentive to constitutive processes of contestation, the study analyses ways in which varied, and at times unofficial, relations coalesce to shape labour regulation.     

Canada's Ocean Supercluster initiative: A national policy in regional clothing?

Since the late 1980s, there has been no explicit regional policy in Canada. Indirectly, though, equalization payments, industrial policies, as well as regional agencies encouraging the adoption of federal industrial and innovation policies, impact regional economies. In 2017, the federal government appeared to alter its approach: the Supercluster initiative was announced, drawing upon the idea that localized networks of interrelated firms can generate innovation and local development. In this paper, we discuss the mechanisms through which spatially focused industrial innovation policy can lead to regional development. We then focus on Canada's Ocean Supercluster initiative. The question we address is as follows: to what extent can this initiative (and, more widely, Canada's Supercluster policy) be understood as a regional development strategy driven by a coherent rationale for regional intervention? Apart from the fact that each Supercluster focuses on a pre-existing core of firms located within a region, there is little evidence that the Supercluster initiative has regional development objectives or impacts.     

Transnational Corporations,Industrial Policy and the ‘War of Incentives’: The Case of the Argentine Automobile Industry

In the context of intensified internationalization of production, automobile firms in Argentina face a profoundly different structure of incentives to the prior decades of import substitution industrialization. Recent policies in the Argentine auto industry have been aimed at a recovery through a reorientation towards exports. Two initiatives set the context for changes during the 1990s: an industry–government–labour agreement and the implementation of a commercial partnership with Brazil. The dramatic recovery of the sector is an apparent validation of the policies implemented. This article questions this recovery by drawing on case‐study work at a number of auto plants and components suppliers. The effects of these policies on changes in the structure of production and industry and on externalities supporting domestic firms are examined. Lessons are drawn for the role of government policy in supporting the contribution of transnational corporations to domestic technological and organizational development.     

The Politics of Carbon Market Design: Rethinking the Techno‐politics and Post‐politics of Climate Change

Carbon markets have provided fertile ground for research on the changing nature of political contestation. MacKenzie locates a “techno‐politics” of carbon markets that creates new possibilities for a “politics of market design”. In contrast, Swyngedouw argues carbon markets are part of a “post‐political” shift that narrows potential pathways through “depoliticisation”. This article engages with these debates by examining three recent attempts to reform the ailing European Union Emissions Trading System: restricting industrial gas offsets, backloading allowance auctions and the 2030 climate and energy package. It conceptualises the respective episodes as contests over the reach, force and priority of value determinations in climate policy, emphasising the contradictory imperatives facing states on each issue. The outcomes of contestation between industry groups and environmental organisations—real but limited reforms and a consolidation of the carbon market over alternatives—demonstrate the constraints facing technocratic campaigning and the ongoing politicisation of climate change.     

Political Decoupling: Private Implementation of Public Policy

Where policy goals can be achieved through regulation of private firms, private provision of public services allows governments to separate public policies from their political costs by shifting those costs to the private sector. Over the past three decades, financial decoupling has emerged as a regulatory strategy for promoting conservation, especially in the energy sector. Decoupling refers to the separation of a firm’s revenues from the volume of its product consumed, which allows companies to pursue resource efficiency free from financial risk. Similarly, when private firms provide public services, they separate public policies from their political costs. This political decoupling allows governments to pursue controversial policies while avoiding their attendant political risks. Applied to environmental policy, this theory implies that potentially unpopular conservation policies are more likely to be adopted and succeed when implemented through private firms. As an initial test of the theory, we analyze California water utilities and their responses to that state’s drought from 2015–2017. Analysis shows that, compared with those served by local government utilities, private utilities adopted more aggressive conservation measures, were more likely to meet state conservation standards, and conserved more water.     

Go East,Young Cadre: Experiments in Inter‐Provincial Training of Party and State Managers in China

This article situates China's local policy experimentation in the broader context of policy experiments in decentralized political systems, through a case study which represents a local state response to China's transition to a market economy. With growing regional and urban–rural inequalities evident after the initial reform period (1978–1994), local party leaders of inland provinces devised strategies for addressing these inequalities and encouraging public–private sector mobility among party officials. County and township‐level leaders pursued local policy experiments in which they selected and sent officials to find private‐sector work in China's booming coastal cities. Initiated in the 1990s and peaking in the 2000s, these policy experiments and inter‐provincial transfers demonstrate the discretion that local officials possess to conduct programmatic/policy experiments in a unitary political system and show how officials resort to extra‐institutional strategies in order to bridge perceived knowledge gaps. The ultimate demise of these programmes illuminates the challenges to extra‐institutional policy innovations in transitioning states.     

Mazamet and the Skin Wool Trade 1850–1913

Abstract

In 1955, northern Nigerian government officials, working together with the British textile firm, David Whitehead &; Sons, successfully began arrangements to build the first large textile manufacturing mill in Nigeria, Kaduna Textiles Ltd (KTL), which began production in 1957. In the following decade, several textile mills opened in Kaduna, northern Nigeria, including Arewa Textiles, United Nigerian Textiles Ltd (UNTL) and Nortex among others. Textile production, spinning and dyeing operations expanded in Kaduna during the oil boom years of the 1970s. Yet by 1997, KTL, Arewa Textiles and UNTL were barely functioning, operating with obsolete equipment, without capital to obtain spare parts and without a regular source of electricity. By 2007, all three mills had closed. In this paper, we examine the growth and the reasons for the subsequent decline of textile manufacturing in Kaduna. We argue that the industry’s decline reflected both internal problems — such as frequent changes in political leadership, which contributed to abrupt shifts in industrial policy and a failure to maintain power infrastructure — and external factors — such as the implementation of a structural adjustment programme in 1986 that deregulated the currency and made imports of spare parts and modern weaving equipment prohibitively expensive. In addition, changes in international textile trade agreements and the liberalisation of Nigerian-Chinese trade after 2010 have undermined present efforts at revitalising local textile manufacturing. The paper concludes with an assessment of efforts in the first decade of the twenty-first century to reopen these Kaduna textile firms.     

Sanctions and tourism: effects,complexities and research

Abstract

Despite the growing use of sanctions as a post-Cold War foreign policy instrument, there is limited research on sanctions in a tourism context despite their substantial impact on destinations and tourist flows. Although there is significant research on sanctions in political science, international relations, economics, and public policy, very few studies explicitly examine the effect of sanctions on tourism. This study therefore examines the intricate geopolitical relationship between sanctions and tourism via a scoping review of relevant literature. Each of the four main types of sanctions that were identified: financial, sectoral, diplomatic and individual, have different implications for tourism at various scales. The findings show that tourism is profoundly affected by sanctions impacting tourism and hospitality businesses and destination image, severely restricting international travel, and disrupting financial investment and supply chains. More comprehensive sanctions may lead to substantial economic and personal hardship in destinations as well as indirect effects including decline in the value of currency and inflationary pressures. Nevertheless, despite the development of smart and targeted sanctions they rarely affect the coercive capacity of the targeted government and induce political behavioural change. Resistive economies can develop in response to sanctions in which domestic tourism assumes greater significance as a result of reductions in international mobility. Some destinations facing sanctions also focus on specific international markets from non-sanctioning countries as well as a country’s diaspora. Overall, the study of sanctions deepens knowledge of the interrelationships between geopolitics, foreign policy and tourism and its ramifications for destinations. Significant gaps in knowledge for future research include the role of domestic politics in influencing sanctions policy, the selection of tourism as a specific target for sanctions, and the development of destination adaptation strategies to sanctions.     

Policy Instrument Choices for Growth Management and Land Use Regulation

What factors account for local government land use practices and their choices among specific growth management policy instruments? We apply the political market framework to examine how land use policy choices in Florida are shaped by institutional features of county governments and the demands of organizations and interests in a community. Local policy decisions reflect a balance of the conflicting interests and responses to economic and political pressures. The results demonstrate that county government structure and election rules play critical roles in the adoption of urban service boundaries, incentive zoning, and transfer of development rights programs. We report evidence consistent with the argument that these “second‐generation” growth management policies are motivated by exclusionary goals.     

Rethinking Development Space in Emerging Countries: Turkey's Conservative Countermovement

Despite an increasingly flexible global policy context, most emerging countries refuse to venture beyond their pre‐existing development strategies. This article contends that in some cases domestic political constraints under liberalized markets might preclude policy dynamism. In particular, it draws attention to the tension between market expansion and social cohesion as a formative influence over policy patterns. This tension is sometimes addressed through a conservative countermovement whereby liberally‐oriented governments entice sections of the poor into broad electoral coalitions by employing palliative interventions alongside market‐expanding policies. Turkey's ruling Justice and Development Party (AKP) is one example. Central to the Turkish case has been the redeployment of the country's historic foreign capital‐dependent pattern of growth in the service of selective redistribution and credit‐fuelled consumerism. The ensuing deficit‐led neoliberal populism assured stable and equitable growth in the extraordinary international and domestic context of the mid‐2000s, but has proven unfeasible since the global crisis. However, this coupling of market and social preferences has become politically so firmly entrenched in time that it now constrains the policy options to address Turkey's developmental impasse.