It has become a commonplace to contrast the Newly Industrializing Countries in Latin America and East Asia as having followed inward-oriented and outward-oriented development strategies, respectively. These are not mutually exclusive alternatives, however. The development of second-stage import-substitution industries has allowed Latin American and East Asian NICs to meet a variety of domestic development objectives and ultimately to enhance the flexibility of their export structures
The relationship between foreign control and national development is a central concern of the Latin American "dependency school" of analysis, which focuses on the impact of investment by multinational corporations (MNCs) in the Third World. In the MNC-dominated steroid hormone industry in Mexico, foreign control has led to two major consequences which characterize it as "dependent": first, there has been an unequal distribution of benefits from its growth, favoring the central capitalist economies and the MNCs more than Mexico; and secondly, at the level of domestic policy formulation, there has been a restriction of choice among local development options, since these conflicted with "global" priorities implied by the dependent situation. As an alternative to MNCs, national firms in Mexico would very likely have performed better in terms of Mexican national welfare (defined as local industry growth) and global consumer welfare (defined as identical products at lower prices). The attempt made by the Mexican State during the last two years of the Echeverria administration (1975–1976) to increase its autonomy vis-à-vis the MNCs by restructuring the industry with a new state-owned firm met with only limited success. Reasons for this include Mexico's declining prominence in the world industry due to the availability of substitutes for its raw material, and the ability of the MNCs to build a strong defense using local political allies. Yet despite the difficulties, Third World countries will need to develop strong states which can deal effectively with multinational corporations if they are to successfully establish their own development priorities.
In the past two decades, industrialization on a world scale has undergone significant shifts. This volume develops a new set of conceptual categories for analyzing new patterns of global economic organization. The contributors to this volume explore and elaborate the global commodity chains (GCCs) approach, which reformulates the basic conceptual categories for analyzing new patterns of global organization and change. The GCC framework allows the authors to pose questions about contemporary development issues that are not easily handled by previous paradigms and to more adequately forge the ma
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Corporate codes of conduct, product certifications, process standards, and other voluntary, non-governmental forms of private governance have proliferated in the last two decades. These innovations are a response to social pressures unleashed by globalization and the inadequacy of governmental institutions for addressing its social and environmental impacts. Private governance has had some notable successes, but there are clear limits to what it alone can be expected to accomplish. We hypothesize that the effectiveness of private governance depends on four main factors: 1) the structure of the particular global value chain in which production takes place; 2) the extent to which demand for a firm's products relies on its brand identity; 3) the possibilities for collective action by consumers, workers, or other activists to exert pressure on producers; and 4) the extent to which commercial interests of lead firms align with social and environmental concerns. Taken together, these hypotheses suggest that private governance will flourish in only a limited set of circumstances. With the trend towards consolidation of production in the largest developing countries, however, we also see a strengthening of some forms of public governance. Private governance will not disappear, but it will be linked to emerging forms of multi-stakeholder institutions.
Wal-Mart has been both praised and pilloried as a template for twenty-first century capitalism. Therein lies the challenge in analyzing the world's largest retailer. We examine the sociological impact of Wal-Mart in terms of four themes: its business model and organizational structure, the dual impact of Wal-Mart's labor relations in terms of its own stores and working conditions in its global supply chain, the genesis and effectiveness of community mobilizations against Wal-Mart, and how Wal-Mart's growth is linked to the emergence of buyer-driven commodity chains in the global economy. Wal-Mart underscores the value of a public sociology agenda that embraces three research criteria: the incorporation of new media and audiences, the need to go global with our research, and the ability to work for change from within.
AbstractIn this article we examine the developmental consequences of globalization at multiple scales, using a commodity chains framework to investigate the case of the North American apparel industry. In the first section we outline the apparel commodity chain and offer a brief typology of its lead firms. In the second section we discuss the concept of industrial upgrading and describe several main export roles in the global apparel industry. In the third section we focus on the regional dynamics resulting from the North American Free Trade Agreement (NAFTA). We contrast the Mexican experience with that of countries in the Caribbean Basin to show the impact of distinct trade policies on export‐oriented development. We argue that NAFTA is creating upgrading opportunities for some Mexican firms to move from the low value‐added export‐oriented assembly (or maquila) model to full‐package production. In the fourth section we explore the unevenness of upgrading dynamics through a comparison of two blue jeans manufacturing clusters in the United States and Mexico: El Paso and Torreon. Our conclusions about upgrading and uneven development in the North American apparel industry emphasize the importance of local, national and regional institutional contexts in shaping inter‐firm networks and their development impact.
In: World development: the multi-disciplinary international journal devoted to the study and promotion of world development, Band 29, Heft 11, S. 1885-1903
In: World development: the multi-disciplinary international journal devoted to the study and promotion of world development, Band 29, Heft 11, S. 1885-1903