global value chain

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pages: 606 words: 87,358

The Great Convergence: Information Technology and the New Globalization by Richard Baldwin

"Robert Solow", 3D printing, additive manufacturing, Admiral Zheng, agricultural Revolution, air freight, Amazon Mechanical Turk, Berlin Wall, bilateral investment treaty, Branko Milanovic, buy low sell high, call centre, Columbian Exchange, commoditize, Commodity Super-Cycle, David Ricardo: comparative advantage, deindustrialization, domestication of the camel, Edward Glaeser, endogenous growth, Erik Brynjolfsson, financial intermediation, George Gilder, global supply chain, global value chain, Henri Poincaré, imperial preference, industrial cluster, industrial robot, intangible asset, invention of agriculture, invention of the telegraph, investor state dispute settlement, Isaac Newton, Islamic Golden Age, James Dyson, Kickstarter, knowledge economy, knowledge worker, Lao Tzu, low skilled workers, market fragmentation, mass immigration, Metcalfe’s law, New Economic Geography, out of africa, paper trading, Paul Samuelson, Pax Mongolica, profit motive, rent-seeking, reshoring, Richard Florida, rising living standards, Robert Metcalfe, Second Machine Age, Simon Kuznets, Skype, Snapchat, Stephen Hawking, telepresence, telerobotics, The Wealth of Nations by Adam Smith, trade liberalization, trade route, Washington Consensus

First, since industrialization can happen stage by stage in global value chains (rather than sector by sector as in the Old Globalization world), industrialization policy is easier and less risky. Industry can be established with a series of small nudges rather than a few big pushes. Second, the sequencing question was blurred by the fragmentation implicit in the global value chain revolution. Developing nations may jump straight into exporting what may look like highly advanced sectors such as aerospace or automobiles. Instead, new questions arise: What global value chains should be joined? How can the country keep expanding and strengthening its participation in global value chains? And—most important—how can it turn global value chain participation into sustainable development? The last key point is simply that global value chains are not magical.

Industrialization and broader development only come by densifying participation in these international production networks. This can happen far faster as global value chains remove bottlenecks, but global value chains are not magical. They are only door openers. Most of the hard work in pushing a nation into middle-income ranks and beyond still has to be done at home. Development means getting more value added from a country’s productive factors. This requires improvements in labor skills and technological capabilities as well as fixing domestic market failures and knitting social cohesion to ensure a consensus stays in favor of economic progress. In a 2014 report from the World Bank, Making Global Value Chains Work for Development, Daria Taglioni and Deborah Winkler write that three new policy issues arise when it comes to global value chains.8 How to enter global value chains. How to expand and strengthen participation in global value chains.

How to expand and strengthen participation in global value chains. How to turn global value chain participation into sustainable development. The GVC Entry Question In global value chains, like dancing, it takes two to tango. National governments cannot unilaterally dictate global value chain participation. They have to induce foreign partners to set up new production facilities or invite existing national firms into their network. As discussed in Chapter 8, global value chain production requires two sets of policies. First are policies that convince the foreign firms that they can safely do business in the developing nation. When these firms set up production facilities—or even when they form long-term ties with suppliers—they are exposed to theft of their tangible and intangible property. If a nation hopes to attract global value chain production, it will need to find a way to provide assurances that property rights will be protected.


pages: 339 words: 95,270

Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace by Matthew C. Klein

Albert Einstein, Asian financial crisis, asset allocation, asset-backed security, Berlin Wall, Bernie Sanders, Branko Milanovic, Bretton Woods, British Empire, business climate, business cycle, capital controls, centre right, collective bargaining, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, deglobalization, deindustrialization, Deng Xiaoping, Donald Trump, Double Irish / Dutch Sandwich, Fall of the Berlin Wall, falling living standards, financial innovation, financial repression, fixed income, full employment, George Akerlof, global supply chain, global value chain, illegal immigration, income inequality, intangible asset, invention of the telegraph, joint-stock company, land reform, Long Term Capital Management, Malcom McLean invented shipping containers, manufacturing employment, Martin Wolf, mass immigration, Mikhail Gorbachev, money market fund, mortgage debt, New Urbanism, offshore financial centre, oil shock, open economy, paradox of thrift, passive income, reserve currency, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, Scramble for Africa, sovereign wealth fund, The Nature of the Firm, The Wealth of Nations by Adam Smith, Tim Cook: Apple, trade liberalization, Wolfgang Streeck

Thanks to the low and dependable cost of moving goods, it increasingly made sense to spread complex production processes across the world. Adam Smith’s insight into the power of specialization would be applied at a scale he would never have imagined.19 How Global Value Chains and Ports Distort the Bilateral Trade Data The drive south across the Detroit River from the U.S. city of the same name to the Canadian city of Windsor only takes about twenty minutes. For nearly a century, the big three American automakers have exploited this proximity by operating plants in both Michigan and the southern bit of Ontario. This Great Lakes motor vehicle manufacturing complex might be the first recognizably modern global value chain. Components, material inputs, and finished cars and trucks are constantly moving across the border. Trade between Canada and Michigan is more valuable than trade between Canada and China.

In 2007, China ostensibly exported about $290 billion worth of “computer, electronic, and optical” products, but roughly $120 billion of the value of those exports (around 40 percent) came from elsewhere, particularly Korea, Japan, and Taiwan. Even though Chinese producers have since become far less reliant on imported components, global value chains still have an impact on the bilateral trade data. Even now, about a third of the value of China’s imports from Korea and Taiwan originated elsewhere, reflecting those countries’ positions in the middle of international supply chains. Tai-wanese academics calculate that standard figures overstate the value of their country’s trade relationship with China by a factor of three.24 The increasing importance of these global value chains means that conventional bilateral trade data no longer do a good job of measuring the actual value created by workers and machines in each country. Gadgets assembled in China (or, nowadays, Vietnam) and shipped to North America or Europe are filled with imported components, including components made in the United States, just as German cars are built with Eastern European parts and American trucks are filled with Mexican content.

., 240n14 Belgium, U.S. exports to, 29–30 Belt and Road Initiative (China), 124–25 Bermuda tax haven, 35, 36 bilateral trade imbalances: and corporate tax avoidance, 30–39 and global value chains, 27–30 Navarro on, 96, 97–100 BIS (Bank for International Settlements), 18f, 42f, 63–64, 110, 193 Bismarck, Otto von, 57, 92–93, 143 Bofinger, Peter, 138 Bolívar, Simón, 49 Brady, Jim, 57 Brazil: development model in, 108 and global credit boom (1820s), 49, 51 U.S. corporation income in, 37 Bretton Woods, 21–23, 189–91, 219. See also International Monetary Fund Bretton Woods II, 195–201 Bundesbank (Germany), 137–38, 140, 154, 164, 194 Canada: capital controls in, 223 colonial interests in, 6, 17 and global value chains, 27 savings and investment in, 76 U.S. corporation income in, 37 U.S. exports to, 28 capital controls, 61, 123, 200, 202, 223 capital export neutrality, 31 capital flight, 41, 123, 224 cargo shipping.


pages: 281 words: 69,107

Belt and Road: A Chinese World Order by Bruno Maçães

active measures, Admiral Zheng, autonomous vehicles, Branko Milanovic, BRICs, cloud computing, deindustrialization, demographic dividend, Deng Xiaoping, different worldview, Donald Trump, energy security, European colonialism, eurozone crisis, Francis Fukuyama: the end of history, global supply chain, global value chain, industrial cluster, industrial robot, Internet of things, Kenneth Rogoff, land reform, liberal world order, Malacca Straits, one-China policy, Pearl River Delta, smart cities, South China Sea, sovereign wealth fund, special economic zone, trade liberalization, trade route, zero-sum game

Lead firms derive their power from a combination of factors that can include their dominance in retail markets, their easy access to capital, their ownership of brand names, and their command and control over critical technologies. These firms are thus able to shape global value chains, control the locations of production and the distribution of value throughout the chain and directly affect the position of other actors along the chain. This is not contradicted by the fact that lead firms often delegate part of the organizing function to key suppliers, who take on the role of orchestrating flows of products, capital, managers and supervisors, and in some cases workers, across diverse production locations across the globe and increasingly shape the geography of the global value chain. One of the easiest ways to understand how global value chains denote relations of power that tend to operate outside the sphere of political relations is to note that the opening up of markets and the removal of trade barriers is often immaterial for producers in developing countries, who can export to North America and Western Europe only to the extent that they gain access to the lead firms in global value chains.

Taking advantage of internationally fragmented value chains, China was able to approach the development process in a piecemeal fashion. “By allowing developing nations to focus on one part or one stage at a time, the global value chain revolution made knowledge absorption easier. The requisite technology and skills base for making a product could be digested bit by bit.”1 The offshoring of production stages meant that rich-nation firms sent their marketing, managerial, and technical know-how along with the production stages that had been moved offshore. What Richard Baldwin calls the “second unbundling”—or the “global value chain revolution”—redrew the boundaries of competitiveness. Revolutionary advances in information and communication technology changed the cost-benefit analysis by making it much easier to coordinate different stages of production at great distances.

In such cases, observers should be under no illusions that China, as the promoter of the initiative, is uniquely placed to pursue its interests. Patterns of international specialization and division of labor are particularly relevant in the age of global value chains. Today, very few products are manufactured in a single country. A country’s manufacturing imports are more likely to be intermediate goods—that is, commodities, components, or semi-finished products that a country uses to make its own products. These could be final products or new segments in a global network of producers and suppliers. One third of China’s imports are destined for export processing zones, which account for almost half of the country’s exports. Global value chains can become so complex that imports can also contain returned value added that originated in the importing country. In China, nearly 7 per cent of the total value of imported intermediate goods reflects value added that originated in China.


Capitalism, Alone: The Future of the System That Rules the World by Branko Milanovic

"Robert Solow", affirmative action, Asian financial crisis, assortative mating, barriers to entry, basic income, Berlin Wall, bilateral investment treaty, Black Swan, Branko Milanovic, capital controls, Capital in the Twenty-First Century by Thomas Piketty, carried interest, colonial rule, corporate governance, creative destruction, crony capitalism, deindustrialization, dematerialisation, Deng Xiaoping, discovery of the americas, European colonialism, Fall of the Berlin Wall, financial deregulation, Francis Fukuyama: the end of history, full employment, ghettoisation, gig economy, Gini coefficient, global supply chain, global value chain, high net worth, income inequality, income per capita, invention of the wheel, invisible hand, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, labor-force participation, laissez-faire capitalism, land reform, liberal capitalism, low skilled workers, Lyft, means of production, new economy, offshore financial centre, Paul Samuelson, plutocrats, Plutocrats, post-materialism, purchasing power parity, remote working, rent-seeking, ride hailing / ride sharing, Silicon Valley, single-payer health, special economic zone, The Wealth of Nations by Adam Smith, Thorstein Veblen, uber lyft, universal basic income, Vilfredo Pareto, Washington Consensus, women in the workforce, working-age population, Xiaogang Anhui farmers

But against that one should note that aid so far has borne very little fruit and that even if this were to change, it would take a very long time for this approach to solve the essential problem of vast differences in income levels, and thus an unstoppable incentive to migrate.10 Therefore, the alternative to the flexible menu of citizenship rights would turn out again to be a solution of zero migration, which would mean Fortress Europe and Fortress America and many more deaths along the borders between these two rich areas and their poorer southern neighbors. Not a desirable outcome in any way. We move next to capital mobility under conditions of globalization. 4.2 Capital: Global Value Chains The global value chain, a way of organizing production such that different stages of production are located in different countries, is probably the most important organizational innovation in this era of globalization. Global value chains were made possible both by the technological ability to control production processes effectively from distant locations and by global respect for property rights. In the past, the lack of these two elements limited the expansion of foreign capital. Adam Smith noted almost two hundred and fifty years ago that owners of capital prefer to invest near to where they live so they can keep an eye on production and on the way the company is managed (Wealth of Nations, book 4, chap. 2).

Mobility of labor thus needs to be seen in the same way as mobility of capital—as part and parcel of globalization. I begin this chapter with a discussion of labor under conditions of globalization. I then turn to capital, whose mobility, perhaps best reflected through so-called global value chains, accelerates the growth of poorer countries and, in the medium to long run, erodes the citizenship rents that motivate migration. Thus both cross-border movements, those of labor as well as of capital, are equilibrating movements whose ultimate outcome—probably never to be reached—would be a world of minimal differences in mean per capita income among nations. Why do I single out global value chains as characteristic of globalization? I do so because of their twofold revolutionary impact. First, as I explain below, they make it possible for the first time in history to unbundle production from the management and control of that production.

In other words, technologically advanced countries do not have an interest in finding more efficient ways of production at the K / L ratios they do not themselves experience, and poor countries do not possess the know-how to do it. Poor countries are thus caught in a poverty trap: in order to develop they need to upgrade their production, but technologies that exist at their K / L ratios are old-fashioned and inefficient. All of this Global South pessimism was upended by the rise of global value chains. Today, for a country to develop, it must be included in Western supply chains rather than trying to delink from the rich world. A key reason for this is that foreign investors see global value chains as integral parts of their own production processes: they no longer have to be “begged” to bring in the most advanced or the most appropriate technology. They now have the incentive to introduce technological development at the level of the wage rate and the K / L ratio they face in poor countries, thus doing away with the poverty trap that Allen identified.


pages: 504 words: 126,835

The Innovation Illusion: How So Little Is Created by So Many Working So Hard by Fredrik Erixon, Bjorn Weigel

"Robert Solow", Airbnb, Albert Einstein, American ideology, asset allocation, autonomous vehicles, barriers to entry, Basel III, Bernie Madoff, bitcoin, Black Swan, blockchain, BRICs, Burning Man, business cycle, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, Clayton Christensen, Colonization of Mars, commoditize, corporate governance, corporate social responsibility, creative destruction, crony capitalism, dark matter, David Graeber, David Ricardo: comparative advantage, discounted cash flows, distributed ledger, Donald Trump, Elon Musk, Erik Brynjolfsson, fear of failure, first square of the chessboard / second half of the chessboard, Francis Fukuyama: the end of history, George Gilder, global supply chain, global value chain, Google Glasses, Google X / Alphabet X, Gordon Gekko, high net worth, hiring and firing, Hyman Minsky, income inequality, income per capita, index fund, industrial robot, Internet of things, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kevin Kelly, knowledge economy, laissez-faire capitalism, Lyft, manufacturing employment, Mark Zuckerberg, market design, Martin Wolf, mass affluent, means of production, Mont Pelerin Society, Network effects, new economy, offshore financial centre, pensions crisis, Peter Thiel, Potemkin village, price mechanism, principal–agent problem, Productivity paradox, QWERTY keyboard, RAND corporation, Ray Kurzweil, rent-seeking, risk tolerance, risk/return, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, Steve Ballmer, Steve Jobs, Steve Wozniak, technological singularity, telemarketer, The Chicago School, The Future of Employment, The Nature of the Firm, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, transaction costs, transportation-network company, tulip mania, Tyler Cowen: Great Stagnation, uber lyft, University of East Anglia, unpaid internship, Vanguard fund, Yogi Berra

19.Smithers, The Road to Recovery, appendix 2. 20.For a comparison, see Lebrun and Pérez Ruiz, “Demand Patterns in France, Germany, and Belgium,” 5. 21.The Economist, “The Sick Man of the Euro.” 22.Sinn, “The Pathological Export Boom and the Bazaar Effect.” 23.Aichele, Felbermayr, and Heiland, “Neues von der Basarökonomie.” 24.Sally, States and Firms. 25.Servan-Schreiber, The American Challenge. 26.Safarian, Multinational Enterprise and Public Policy. 27.Dunning, The Globalization of Business. 28.IMD, IMD World Competitiveness Yearbook. 29.Hansakul and Levinger, “China–EU Relations,” 2. 30.Galbraith, The New Industrial State, 38. 31.Bernard, Jensen, and Schott, “Importers, Exporters and Multinationals.” 32.UNCTAD, “World Investment Report 2013.” 33.Altomonte et al., “Global Value Chains during the Great Trade Collapse.” 34.Baldwin, “Trade and Industrialisation after Globalisation’s 2nd Unbundling.” 35.Manyika et al., “Digital Globalization.” 36.Baldwin, “Globalisation.” 37.Desai, “The Decentering of the Global Firm.” 38.Baldwin and Robert-Nicoud, “Trade-in-Goods and Trade-in-Tasks.” 39.Krugman, “Growing World Trade.” For documentation of literature and trade patterns, see also WTO, “World Trade Report 2008.” 40.Escaith and Inomata, “Trade Patterns and Global Value Chains in East Asia.” 41.Hummels, Rapoport, and Yi, “Vertical Specialization.” 42.Lanz and Miroudot, “Intra-firm Trade.” 43.Bernard et al., “Intra-firm Trade and Product Contractibility.” 44.Timmer et al., “Slicing up Global Value Chains,” 104. 45.Dedrick, Kraemer, and Linden, “Who Profits from Innovation in Global Value Chains?”

., “Slicing up Global Value Chains,” 104. 45.Dedrick, Kraemer, and Linden, “Who Profits from Innovation in Global Value Chains?” 46.Athukorala, “Production Networks and Trade Patterns in East Asia.” 47.IMF, “German-Central European Supply Chain – Cluster Report.” 48.For data on the foreign value-added content of exports in Europe, see Amador, Cappariello, and Stehrer, “Global Value Chains: A View from the Euro Area.” 49.Stehrer and Stöllinger, “The Central European Manufacturing Core.” 50.Nordås, Pinali, and Grosso, “Logistics and Time as a Trade Barrier.” 51.Boddin and Henze, “International Trade and the Servitization of Manufacturing”; Lodefalk, “The Role of Services for Manufacturing Firm Exports.” 52.National Board of Trade (Sweden), “Everybody Is in Services,” 9. 53.Grossman and Hart, “The Costs and Benefits of Ownership.” 54.This view draws on Baumol, Panzar, and Willig, Contestable Markets and the Theory of Industry Structure. 55.Marx, Capital, ch. 32. 56.Shields, “Consolidation and Concentration in the US Dairy Industry.” 57.Corbae and D’Erasmo, “A Quantitative Model of Banking Industry Dynamics.” 58.FCC, “18th Mobile Wireless Competition Report.” 59.Murray, “5 Things You Didn’t Know about the Fortune 500.” 60.Freund, Rich People Poor Countries, 55. 61.Hillerud, “Ericsson var före Apple med paddan.” 62.OECD, “The Future of Productivity.” 63.Antràs and Yeaple, “Multinational Firms and the Structure of International Trade.” 64.However, a note of caution is warranted.

Time Magazine, “The Committee to Save the World.” Cover story, Feb. 15, 1999. Timmer, Marcel P., Abdul Azeez Erumban, Bart Los, Robert Stehrer, and Gaaitzen J. de Vries, “Slicing up Global Value Chains.” Journal of Economic Perspectives, 28.2 (2014): 99–118. Toynbee, Arnold, A Study of History: Abridgement of Volumes I–VI by D. C. Somervell. Oxford University Press, 1987. Tracy, Abigail, “Why Some of Google’s Coolest Projects Flop Badly.” Vocativ, Mar. 19, 2015. At http://www.scientificamerican.com/article/why-some-of-google-s-coolest-projects-flop-badly/. UNCTAD, “World Investment Report 2013. Global Value Chains: Investment and Trade for Development.” United Nations Conference on Trade and Development, 2013. United Nations, Department of Economic and Social Affairs, Population Division, World Population Prospects: The 2012 Revision – Special Aggregates, DVD-ROM, 2013.


pages: 497 words: 144,283

Connectography: Mapping the Future of Global Civilization by Parag Khanna

"Robert Solow", 1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, commoditize, complexity theory, continuation of politics by other means, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, digital map, disruptive innovation, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, Ethereum, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, fixed income, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial cluster, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, LNG terminal, low cost airline, low cost carrier, low earth orbit, manufacturing employment, mass affluent, mass immigration, megacity, Mercator projection, Metcalfe’s law, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, off grid, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Parag Khanna, Peace of Westphalia, peak oil, Pearl River Delta, Peter Thiel, Philip Mirowski, plutocrats, Plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day

The Rise of Financial Capitalism: International Capital Markets in the Age of Reason. Cambridge University Press, 1990. Nisbett, Richard E. The Geography of Thought: How Asians and Westerners Think Differently…and Why. Free Press, 2004. Nolan, Peter. Is China Buying the World? Polity, 2013. Norbu, Dawa. China’s Tibet Policy. Routledge, 2001. OECD. Interconnected Economies: Benefiting from Global Value Chains. OECD, 2013. OECD, WTO, UNCTAD. Implications of Global Value Chains for Trade, Investment, Development, and Jobs. OECD, 2013. Ogilvy, James. Many Dimensional Man. HarperCollins, 1979. Ohmae, Kenichi. The End of the Nation State: The Rise of Regional Economies. Free Press, 1996. ———. The Next Global Stage: Challenges and Opportunities in Our Borderless World. Wharton School Publishing, 2005. Olsthoorn, Xander, and Anna J.

*6 The geographer Harm de Blij has identified twelve physical realms, each with multiple subregions: Europe, Russia, North America, Central America, South America, Sub-Saharan Africa, North Africa/Southwest Asia, South Asia, East Asia, Southeast Asia, Australasia, and the Pacific Islands. *7 A more formal definition of supply chain is the systems of organizations, people, technology activities, information, and resources involved in moving products and services from producers to customers. “Global supply chain” and “global value chain” are often used interchangeably, with the latter sometimes preferred to emphasize the value-added processes not inherent in simple supply-demand terminology. Others speak of value webs or value networks to capture the wide range of participants involved in supply chains and their interdependent and mutually beneficial nature. *8 I use “supply chain world” or “supply-demand world” or “supply-demand system” or other variations interchangeably

Manufacturing supply chains began to unbundle almost fifty years ago, shifting a massive share of the production of everything from electronics to clothing to the Asian Tigers (Hong Kong, Singapore, South Korea, and Taiwan), China, Thailand, Mexico, and eventually other pockets of low-wage and semiskilled workers in India, Indonesia, and beyond. Components and inputs from screws and bolts to dyes and paints to copper and glass circulate for assembly, finishing, packaging, and more tasks along the supply chain. Like data packets routed through servers around the world before arriving at your neighbor’s computer, there is no avoiding the radically dispersed nature of supply chains. Global value chains are becoming one complex but comprehensive whole. European companies have software development in the United States, manufacturing in Asia, back-office work in the Middle East, and joint ventures with local partners for after-sales services such as repair and insurance in every market they sell in. America’s import content of exports is relatively low at only 15 percent, but it is actually 40 percent if one takes a full-cycle view of downstream distribution and sales.


pages: 193 words: 63,618

The Fair Trade Scandal: Marketing Poverty to Benefit the Rich by Ndongo Sylla

British Empire, carbon footprint, corporate social responsibility, David Ricardo: comparative advantage, deglobalization, Doha Development Round, Food sovereignty, global value chain, illegal immigration, income inequality, income per capita, invisible hand, Joseph Schumpeter, labour mobility, land reform, market fundamentalism, mass immigration, means of production, Mont Pelerin Society, Naomi Klein, non-tariff barriers, offshore financial centre, open economy, Philip Mirowski, plutocrats, Plutocrats, price mechanism, purchasing power parity, Ronald Reagan, Scientific racism, selection bias, structural adjustment programs, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, transatlantic slave trade, trickle-down economics, Washington Consensus, zero-sum game

This is less and less the case, following agricultural liberalisation policies implemented widely following structural adjustment programmes. Since then, developing countries significantly reduced the restrictions they impose on agricultural and manufactured products (World Bank and IMF, 2009). This is one of the merits of the global value chain analysis2 – to highlight recent developments on the commodity markets (agricultural and nonagricultural). The concept of the ‘value chain’ refers to all the steps that 18 Sylla T02779 01 text 18 28/11/2013 13:04 inequalities of the trade system make up the cycle of products, from production to consumption. In fact, the global value chain (GVC) approach is especially opposed to the traditional orthodox vision, whereby product markets are considered a typical example of competitive market, with homogeneous products, a large number of small buyers and sellers, the absence of entry barriers, and relations between sellers and buyers that are supposed to be limited to on-the-spot financial transactions.

Farmers, Workers and Consumers Strive to Change an Industry (Tucson: University of Arizona Press). Georgescu-Roegen, Nicholas (1995 [1979]) La Décroissance: entropie–écologie– économie [Degrowth : Entropy–Ecology–Economy] (Paris: Éditions Sang de la Terre). Gereffi, Gary and Korzeniewicz, Miguel (eds) (1994) Commodity Chains and Global Capitalism (London: Praeger). Gereffi, Gary, Humphrey, John and Sturgeon, Timothy (2005) ‘The Governance of Global Value Chains’, Review of International Political Economy, 12(1): 78–104. Getz, Christy and Shreck, Aimee (2006) ‘What Organic and Fair Trade Labels do Not Tell Us: Towards a Place-based Understanding of Certification’, International Journal of Consumer Studies, 30(5): 490–501. GFN (Global Footprint Network) (2010) The Ecological Wealth of Nations (www. footprintnetwork.org, accessed August 2013). Griffith, Peter (2009) ‘Lack of Rigour in Defending Fairtrade: A Reply to Alastair Smith’, Economic Affairs, 30(2): 45–9.

Howell, George (2007) ‘The North–Southern Environmental Crisis: An Unequal Ecological Exchange Analysis’, New School Economic Review, 2(1): 77–99. Hudson, Ian, Hudson, Mark and Fridell, Mara (2013) Fair Trade, Sustainability and Social Change (Houndmills: Palgrave Macmillan). Hudson, Michael W. (2009) Trade, Development and Foreign Debt, new edition (New York: ISLET). Humphrey, John and Memedovic, Olga (2006) ‘Global Value Chains in the Agrifood Sector’, Working Paper (Vienna: United Nations Industrial Development Organization). ILO (International Labour Organization) (2010) ‘Key Indicators of Labour Market’ (www.ilo.kilm.org, accessed August 2010). Jacquiau, Christian (2006) Les Coulisses du commerce équitable: mensonges et vérités sur un petit business qui monte [Behind the Scenes of Fair Trade: The Truths and the Lies Regarding a Small Business that Rises] (Paris: Mille et une Nuits).


pages: 287 words: 95,152

The Dawn of Eurasia: On the Trail of the New World Order by Bruno Macaes

active measures, Berlin Wall, British Empire, computer vision, Deng Xiaoping, different worldview, digital map, Donald Trump, energy security, European colonialism, eurozone crisis, failed state, Francis Fukuyama: the end of history, global value chain, illegal immigration, intermodal, iterative process, land reform, liberal world order, Malacca Straits, mass immigration, megacity, open borders, Parag Khanna, savings glut, scientific worldview, Silicon Valley, South China Sea, speech recognition, trade liberalization, trade route, Transnistria, young professional, zero-sum game, éminence grise

In such cases, observers should be under no illusions that China, as the promoter of the initiative, is uniquely placed to pursue its interests. Patterns of international specialization and division of labour are particularly relevant in the age of global value chains. Today very few products are manufactured in a single country. A country’s manufacturing imports are actually more likely to be in intermediate goods, that is, commodities, parts and components or semi-finished products that it uses to make its own products. With the emergence of global value chains, the mercantilist approach that views exports as good and imports as bad starts to look counterproductive and even self-contradictory. If a country imposes high tariffs and obstacles on the imports of intermediate goods, its exports will be the first to suffer.

The decision was made by both the Kremlin and public opinion that Russia does not properly belong to the Western world and will no longer try to become one of its poles. That decision coincided with the decline in Western power, evidenced in the aftermath of the Iraq war, but it was also precipitated by the clash between Western principles and values and an indigenous political and economic culture with which those values were ill at ease. By that time, Russia had already lost the chance to modernize its economy and take advantage of global value chains and transfers of knowledge made possible by the new information and communication technologies. The Russian critique of Western political values was certainly not followed by the embrace of an Asian alternative. It could have been Russia, rather than China, to revolutionize global capitalism. Now it is too late for that, but all these troubles are revealing of a genuine reaction to contemporary challenges.

He has a point, as even the European Union, when it created an ambitious transnational framework of rules and institutions, tended to abandon industrial policy on the grounds that such a policy could not be reproduced at a transnational level. This points to the clash between different integration models. Transport and communication networks are no doubt a precondition for the development of global value chains, but the crucial element is the set of industrial policy decisions by which different countries strive to move into new chains or new segments within an already occupied value chain. In order to avoid getting trapped in a middle-income trap – a situation in which a country becomes stuck with its previous growth model after attaining a certain level of income – and speed up the process of moving into higher-value segments, China wants its industrial policy to be sufficiently articulated with those countries occupying other segments and chains.


pages: 450 words: 113,173

The Age of Entitlement: America Since the Sixties by Christopher Caldwell

1960s counterculture, affirmative action, Affordable Care Act / Obamacare, anti-communist, Bernie Sanders, big data - Walmart - Pop Tarts, blue-collar work, Cass Sunstein, choice architecture, computer age, crack epidemic, crony capitalism, Daniel Kahneman / Amos Tversky, David Attenborough, desegregation, disintermediation, disruptive innovation, Edward Snowden, Erik Brynjolfsson, Ferguson, Missouri, financial deregulation, financial innovation, Firefox, full employment, George Gilder, global value chain, Home mortgage interest deduction, illegal immigration, immigration reform, informal economy, Jeff Bezos, John Markoff, Kevin Kelly, libertarian paternalism, Mark Zuckerberg, Martin Wolf, mass immigration, mass incarceration, mortgage tax deduction, Nate Silver, new economy, Norman Mailer, post-industrial society, pre–internet, profit motive, reserve currency, Richard Thaler, Robert Bork, Robert Gordon, Robert Metcalfe, Ronald Reagan, Rosa Parks, Silicon Valley, Skype, South China Sea, Steve Jobs, Thomas Kuhn: the structure of scientific revolutions, Thomas L Friedman, too big to fail, transatlantic slave trade, transcontinental railway, War on Poverty, Whole Earth Catalog, zero-sum game

Any country that could master a primitive assembly-line task—as Vietnam, to take a real-life example, did with auto-body wire harnesses—could take that task, and all the jobs that went with it, from a high-wage country, without ever industrializing at all. Corporations began to exploit these “global value chains.” In the work of New York Times columnist Thomas Friedman and other global economy boosters of the 1990s, you find value chains described as kaleidoscopic and complex: Nandan Nilekani, the CEO of Infosys, holding “virtual meetings” across eight time zones, at which “American designers could be on the screen speaking with their Indian software writers and their Asian manufacturers all at once.” But really there was less to global value chains than met the eye. They were not symphonies of specialist craftsmanship conducted by some boardroom maestro of industrial organization. The new operation was usually some company’s old operation, spirited somewhere else with a lot of bad faith and hocus-pocus.

As long as Americans were frightened of speaking against civil rights legislation or, later, of being assailed as racists, sexists, homophobes, or xenophobes, their political representatives could resist nothing that presented itself in the name of “civil rights.” This meant that conflict, when it eventually came, would be constitutional conflict, with all the gravity that the adjective “constitutional” implies. 7 Winners Outsourcing and global value chains—Politicized lending and the finance crisis—Civil rights as a ruling-class cause—Google and Amazon as governments in embryo—Eliot Spitzer, Edward Snowden, and surveillance—The culture of internet moguls—The affinity between high tech and civil rights—The rise of philanthropy—Obama: governing without government—Nudge and behavioral economics—From gay rights to gay marriage—Windsor: the convergence of elites—Obergefell: triumph of the de facto constitution It took a long time for Americans to realize that the New Economy was a new economy.

The country would therefore become an economic part rather than an economic whole, rendering nonsensical, at least for a while, all kinds of inherited cultural and political beliefs about sovereignty, national independence, and social cohesion. In this sense the New Economy was like the new constitution. Over the fifty years leading up to the election of 2016, those who found ways to use the newly unleashed powers flourished. Those who continued to believe they could trust in old traditions, or vote their way to the country they wanted, lost ground. Outsourcing and global value chains The high wages of industrial workforces in Western countries had once been invulnerable, because the capital-owning part of an economy was bound by the laws of the land and the laws of economics to the fate of its workforce. The workers who made any given product needed to be near one another and near their bosses. Competition in the market for goods was, as the economist Richard Baldwin explains, “the only way international competition could get into an economy.”


pages: 128 words: 38,187

The New Prophets of Capital by Nicole Aschoff

3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, American Legislative Exchange Council, basic income, Bretton Woods, clean water, collective bargaining, commoditize, crony capitalism, feminist movement, follow your passion, Food sovereignty, glass ceiling, global supply chain, global value chain, helicopter parent, hiring and firing, income inequality, Khan Academy, late capitalism, Lyft, Mark Zuckerberg, mass incarceration, means of production, performance metric, post-work, profit motive, rent-seeking, Ronald Reagan, Rosa Parks, school vouchers, shareholder value, sharing economy, Silicon Valley, Slavoj Žižek, structural adjustment programs, Tim Cook: Apple, urban renewal, women in the workforce, working poor, zero-sum game

In the age of global supply chains, free trade agreements, and capital flight, states have increasingly come to be seen as incapable of protecting their citizens from big global problems like ozone depletion, climate change, and biodiversity loss, and even more tractable problems, like controlling hazardous waste flows or regulating toxic substances in consumer goods.14 But while processes of globalization have delegitimized states and made citizens feel disconnected from the protective embrace of their respective governments, they have also helped to forge new, global identities based on feelings of “world-citizenship.”15 Westerners in particular have become uneasily aware of their power as consumers in shaping and driving global value chains. Whereas in the past consumers were considered “small polluters” relative to the big industrial polluters, in recent years this view has changed. Current global frameworks of environmental power place consumers on an equal plane with states, corporations, and civil-society actors. This newfound perception conflates consumption with politics and citizenship and has led to the widespread adoption of “ecological consumerism” and “lifestyle politics” as expressions of environmental awareness and concern.

As rural sociologist Phil McMichael argues, in the 1980s the “development project”—in which poor countries implemented national development strategies geared toward economic self-sufficiency and political sovereignty—was replaced by the “globalization project”—an ideological turn that encouraged states to lower their trade barriers, privatize resources and services, and embed themselves in global value chains.10 In this climate, national states lost legitimacy and, during the debt crisis, structural adjustment programs forced developing countries to dramatically curtail spending on health, education, and food subsidies. To ameliorate the human crisis that resulted, international governing bodies (UN, IMF, World Bank) encouraged poor states to outsource welfare provision to Western INGOs, which were considered more efficient and knowledgeable than local institutions.


pages: 354 words: 92,470

Grave New World: The End of Globalization, the Return of History by Stephen D. King

9 dash line, Admiral Zheng, air freight, Albert Einstein, Asian financial crisis, bank run, banking crisis, barriers to entry, Berlin Wall, Bernie Sanders, bilateral investment treaty, bitcoin, blockchain, Bonfire of the Vanities, borderless world, Bretton Woods, British Empire, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collateralized debt obligation, colonial rule, corporate governance, credit crunch, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, debt deflation, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, Edward Snowden, eurozone crisis, facts on the ground, failed state, Fall of the Berlin Wall, falling living standards, floating exchange rates, Francis Fukuyama: the end of history, full employment, George Akerlof, global supply chain, global value chain, hydraulic fracturing, Hyman Minsky, imperial preference, income inequality, income per capita, incomplete markets, inflation targeting, information asymmetry, Internet of things, invisible hand, joint-stock company, Kickstarter, Long Term Capital Management, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, moral hazard, Nixon shock, offshore financial centre, oil shock, old age dependency ratio, paradox of thrift, Peace of Westphalia, plutocrats, Plutocrats, price stability, profit maximization, quantitative easing, race to the bottom, rent-seeking, reserve currency, reshoring, rising living standards, Ronald Reagan, Scramble for Africa, Second Machine Age, Skype, South China Sea, special drawing rights, technology bubble, The Great Moderation, The Market for Lemons, the market place, The Rise and Fall of American Growth, trade liberalization, trade route, Washington Consensus, WikiLeaks, Yom Kippur War, zero-sum game

Bullard, ‘Testing long-run monetary neutrality propositions: Lessons from the recent research’, Federal Reserve Bank of St Louis Review, November/December 1999, available at: https://research.stlouisfed.org/publications/review/99/11/9911jb.pdf 5.The Marshall–Lerner condition states that there will be an improvement in the balance of trade following a devaluation so long as the absolute sum of the export and import elasticities is greater than one. 6.For a discussion of the impact of global value chains on the effects of exchange rate declines, see S. Ahmed, M. Appendino and M. Ruta, Depreciations without Exports? Global value chains and the exchange rate elasticity of exports, Policy Research Working Paper No. 7390, World Bank, Washington, DC, August 2015. 7.Robert Triffin described the dilemma in testimony to US Congress in 1960. For a good description of his view, see: https://www.imf.org/external/np/exr/center/mm/eng/mm_sc_03.htm 8.I am indebted to Gideon Bloom for this hybrid term. 9.See, for example, K.S.

Why Nations Fail: The origins of power, prosperity and poverty, Profile Books, New York, 2013 Acemoglu, D. and J. Robinson. ‘The rise and decline of general laws of capitalism’, Journal of Economic Perspectives, 29:1 (2015), pp. 3–28 Admati, A. and M. Hellwig. The Bankers’ New Clothes: What’s wrong with banking and what to do about it, Princeton University Press, Princeton, NJ, 2013 Ahmed, S., M. Appendino and M. Ruta. Depreciations without Exports? Global value chains and the exchange rate elasticity of exports, Policy Research Working Paper No. 7390, World Bank, Washington, DC, August 2015 Akerlof, G. ‘The market for lemons: Quality, uncertainty and the market mechanism’, Quarterly Journal of Economics, 84:3 (1970), pp. 488–500 Alesina, A., A. Devleeschauwer, W. Easterly, S. Kurlat and R. Wacziarg. Fractionalization, Harvard Institute of Economic Research Discussion Paper No. 1959, Cambridge, MA, June 2002, available at: https://dash.harvard.edu/handle/1/4553003 Andrews, D., C.


The New Harvest: Agricultural Innovation in Africa by Calestous Juma

agricultural Revolution, Albert Einstein, barriers to entry, bioinformatics, business climate, carbon footprint, clean water, colonial rule, conceptual framework, creative destruction, double helix, energy security, energy transition, global value chain, income per capita, industrial cluster, informal economy, Intergovernmental Panel on Climate Change (IPCC), Joseph Schumpeter, knowledge economy, land tenure, M-Pesa, microcredit, mobile money, non-tariff barriers, off grid, out of africa, precision agriculture, Second Machine Age, self-driving car, Silicon Valley, sovereign wealth fund, structural adjustment programs, supply-chain management, total factor productivity, undersea cable

The financial crisis exacerbated this underinvestment, as borrowing externally became more expensive, credit was less accessible, and foreign direct investment declined, although these trends are now starting to show signs of reversal. In recent years, multinational companies are starting to invest in agriculture by sourcing local raw materials, for example, but more must be done to spur new industries and services. This increase in investment has resulted in improved productivity, better incomes, new jobs, and it has helped to open up access to global value chains. Only 6% of Africa’s crop area is irrigated (4% in sub-Saharan Africa), compared to 37% in Asia and 14% in Latin America. Furthermore, more than 40% of the rural population lives in arid or semi-arid conditions, which have the least agricultural potential. Similarly, about 50 million people in sub-Saharan Africa and 200 million people in North Africa and the Middle 16 THE NEW HARVEST East live in areas with absolute water scarcity.

The COMESA harmonization agenda—now implemented through its specialized agency, the Alliance for Commodity Trade in Eastern and Central Africa—was initiated to provide mechanisms for wise and responsible use of genetically modified organisms in commercial planting, trade, and emergency food assistance. COMESA, within its mandate of regional economic integration, recognizes the need to support member states in resolving non-tariff barriers that constrain markets and stifle the integration of food products into regional and global value chains, as an innovative strategy to promote market access to regional and international trade. 250 THE NEW HARVEST Such systems are vital to assuring the quality, safety, and efficacy of locally manufactured products and their positive contribution to public health. Moreover, the success of domestic production will partly depend on intra-regional and intra-continental trade to create viable market sizes.

This will help address challenges such as sanitary and phytosanitary measures that affect the quality and marketability of agricultural products; management of trans-boundary resources such as water bodies and forests; building of regional infrastructure; promotion of 252 THE NEW HARVEST collaborative research; monitoring of key commitments of member states, particularly the one on earmarking 10% of the national budget for the agriculture sector. For Africa to effectively integrate into the global value chain, it needs to embrace global quality standards starting inside the farm gate. One organization is leading the way, not just in defining these standards, but in offering training and certification in the fields of Africa. GlobalG.A.P. is an independent certification system for Good Agricultural Practice (GAP), founded by members of the Euro-Retailer Produce Working Group in 1997. The standards cover sustainable production methods, food safety, animal and worker welfare, plant propagation materials, and compound feed.


pages: 554 words: 158,687

Profiting Without Producing: How Finance Exploits Us All by Costas Lapavitsas

"Robert Solow", Andrei Shleifer, asset-backed security, bank run, banking crisis, Basel III, borderless world, Branko Milanovic, Bretton Woods, business cycle, capital controls, Carmen Reinhart, central bank independence, collapse of Lehman Brothers, computer age, conceptual framework, corporate governance, credit crunch, Credit Default Swap, David Graeber, David Ricardo: comparative advantage, disintermediation, diversified portfolio, Erik Brynjolfsson, eurozone crisis, everywhere but in the productivity statistics, financial deregulation, financial independence, financial innovation, financial intermediation, financial repression, Flash crash, full employment, global value chain, global village, High speed trading, Hyman Minsky, income inequality, inflation targeting, informal economy, information asymmetry, intangible asset, job satisfaction, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, liberal capitalism, London Interbank Offered Rate, low skilled workers, M-Pesa, market bubble, means of production, money market fund, moral hazard, mortgage debt, Network effects, new economy, oil shock, open economy, pensions crisis, price stability, Productivity paradox, profit maximization, purchasing power parity, quantitative easing, quantitative trading / quantitative finance, race to the bottom, regulatory arbitrage, reserve currency, Robert Shiller, Robert Shiller, savings glut, Scramble for Africa, secular stagnation, shareholder value, Simon Kuznets, special drawing rights, Thales of Miletus, The Chicago School, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, Tobin tax, too big to fail, total factor productivity, trade liberalization, transaction costs, union organizing, value at risk, Washington Consensus, zero-sum game

Paris: Syros, 1996. 31 Chesnais, ‘Mondialisation du capital et régime d’accumulation à dominante financiére’. 32 See, for instance, Gérard Duménil and Dominique Lévy, Capital Resurgent, Cambridge, MA: Harvard University Press, 2004; Gérard Duménil and Dominique Lévy, ‘The Real and Financial Components of Profitability (United States, 1952–2000)’, Review of Radical Political Economics 36:1, 2004, pp. 82–110; Gérard Duménil and Dominique Lévy, The Crisis of Neoliberalism, Cambridge, MA: Harvard University Press, 2011. 33 Gérard Duménil and Dominique Lévy, ‘Finance and Management in the Dynamics of Social Change (Contrasting Two Trajectories: United States and France)’, 26 June 2006. 34 Claude Serfati, ‘Le role actif de groupes à dominante industrielle dans la financiarisation de l’économie’, in La mondialisation financière : genèse, coût et enjeux, ed. François Chesnais, Paris: Syros, 1996. Claude Serfati, ‘Financial Dimensions of Transnational Corporations, Global Value Chains and Technological Innovations’, Journal of Innovation Economics 2:2, 2008. Claude Serfati, ‘Transnational Corporations as Financial Groups’, Work Organisation, Labour and Globalisation 5:1, 2011, pp. 10–38. 35 François Morin, ‘A Transformation in the French model of Shareholding and Management’, Economy and Society 29, 2000. François Morin, ‘Le capitalisme de marché financier et l’asservissement du cognitif’, Cahiers du GRES, May 2006. 36 Dominique Plihon, Le nouveau capitalisme, 3rd edition, Paris: Éditions La Découverte, 2009. 37 Prominent among them are Prabhat Patnaik, C.P.

(eds), Financialization at Work, London: Routledge, 2008; Mike Savage and Karel Williams (eds), Remembering Elites, London: John Wiley and Sons, 2008. 67 Paul Thompson, ‘Disconnected Capitalism’, Work, Employment and Society 17, 2003, pp. 359–78; and Ian Clark, ‘Owners and Managers: Disconnecting Managerial Capitalism?’, Work, Employment and Society 23: 2009, pp. 775–86. 68 William Lazonick and Mary O’Sullivan, ‘Maximizing Shareholder Value: A New Ideology for Corporate Governance’, Economy and Society 29:1, 2000. See also William Milberg, ‘Shifting Sources and Uses of Profits: Sustaining US Financialization with Global Value Chains’, Economy and Society 37:3, 2008; and William Milberg and Deborah Winkler, ‘Financialisation and the Dynamics of Offshoring in the USA’, Cambridge Journal of Economics 34, 2010. 69 Masahiko Aoki, Information, Incentives and Bargaining in the Japanese Economy, Cambridge: Cambridge University Press, 1988; Masahiko Aoki, ‘Toward and Economic Model of the Japanese Firm’, Journal of Economic Literature 28, 1990; Masahiko Aoki, ‘The Japanese Firm as a System of Attributes: A Survey and Research Agenda’, in The Japanese Firm: Sources of Competitive Strength, ed.

Milanovic, Branko, ‘Global Income Inequality: What Is It and Why It Matters?’, DESA Working Paper No. 26, ST/ESA/2006/DWP/26, United Nations Department of Economic and Social Affairs, 2006. Milanovic, Branko, Worlds Apart: Measuring International and Global Inequality, Princeton, NJ: Princeton University Press, 2005. Milberg, William, ‘Shifting Sources and Uses of Profits: Sustaining US Financialization with Global Value Chains’, Economy and Society 37:3, 2008, pp. 420–51. Milberg, William, and Deborah Winkler, ‘Financialisation and the Dynamics of Offshoring in the USA’, Cambridge Journal of Economics 34, 2010, pp. 275–93. Milgrom, Paul, and John Roberts, ‘The Economics of Modern Manufacturing: Technology, Strategy and Organization’, American Economic Review 80, 1990, pp. 511–28. Milgrom, Paul, and John Roberts, Economics, Organization and Management, Englewood Cliffs, NJ: Prentice Hall, 1992.


pages: 236 words: 62,158

Marx at the Arcade: Consoles, Controllers, and Class Struggle by Jamie Woodcock

4chan, Alexey Pajitnov wrote Tetris, anti-work, augmented reality, barriers to entry, battle of ideas, Boris Johnson, Build a better mousetrap, butterfly effect, call centre, collective bargaining, Columbine, conceptual framework, cuban missile crisis, David Graeber, deindustrialization, deskilling, Donald Trump, game design, gig economy, glass ceiling, global supply chain, global value chain, Hacker Ethic, Howard Zinn, John Conway, Kickstarter, Landlord’s Game, late capitalism, Marshall McLuhan, means of production, Minecraft, mutually assured destruction, Naomi Klein, Oculus Rift, pink-collar, sexual politics, Silicon Valley, union organizing, unpaid internship, V2 rocket

See “Video Games Tax Relief,” Ukie, https://ukie.org.uk/a2f/VGTR. 17Ukie, “The Games Industry in Numbers.” 18Olsberg-SPI and Nordicity, “Economic Contribution of the UK’s Film,” 52. 19Juan Mateos-Garcia, Hasan Bakhshi, and Mark Lenel, A Map of the UK Games Industry (London: Nesta, 2014), 6. 20Brendan Sinclair, “GTA V Dev Costs over $137 Million, Says Analyst,” GamesIndustry.biz, February 1, 2013, www.gamesindustry.biz/articles/2013-02-01-gta-v-dev-costs-over-USD137-million-says-analyst. 21Aphra Kerr, The Business and Culture of Digital Games: Gamework/Gameplay (London: Sage, 2006), 4. 22Graham Kirkpatrick, Computer Games and the Social Imaginary (Cambridge: Polity, 2013), 109. 23Paul Thompson, Rachel Parker, and Stephen Cox, “Labour and Asymmetric Power Relations in Global Value Chains: The Digital Entertainment Industries and Beyond,” in Putting Labour in its Place: Labour Process Analysis and Global Value Chains, eds. Kirsty Newsome et al. (London: Palgrave, 2015), 57. 24Kirkpatrick, Computer Games and the Social Imaginary, 117. 25Mateos-Garcia, Bakhshi, and Lenel, A Map of the UK Games Industry, 4. 26Olsberg-SPI and Nordicity, Economic Contribution of the UK’s Film, 52. 27Mateos-Garcia, Bakhshi, and Lenel, A Map of the UK Games Industry, 16. 28Olsberg-SPI and Nordicity, “Economic Contribution of the UK’s Film,” 52. 29Stephen E.


India's Long Road by Vijay Joshi

Affordable Care Act / Obamacare, barriers to entry, Basel III, basic income, blue-collar work, Bretton Woods, business climate, capital controls, central bank independence, clean water, collapse of Lehman Brothers, collective bargaining, colonial rule, congestion charging, corporate governance, creative destruction, crony capitalism, decarbonisation, deindustrialization, demographic dividend, demographic transition, Doha Development Round, eurozone crisis, facts on the ground, failed state, financial intermediation, financial repression, first-past-the-post, floating exchange rates, full employment, germ theory of disease, Gini coefficient, global supply chain, global value chain, hiring and firing, income inequality, Indoor air pollution, Induced demand, inflation targeting, invisible hand, land reform, Mahatma Gandhi, manufacturing employment, Martin Wolf, means of production, microcredit, moral hazard, obamacare, Pareto efficiency, price mechanism, price stability, principal–agent problem, profit maximization, profit motive, purchasing power parity, quantitative easing, race to the bottom, randomized controlled trial, rent-seeking, reserve currency, rising living standards, school choice, school vouchers, secular stagnation, Silicon Valley, smart cities, South China Sea, special drawing rights, The Future of Employment, The Market for Lemons, too big to fail, total factor productivity, trade liberalization, transaction costs, universal basic income, urban sprawl, working-age population

If India missed the bus, it could suffer trade diversion, especially in services trade, as well as having to put up with trade disciplines in whose shape and content it had played no part. (The losses would be greater if China joined the US-​led mega-​regionals.) Correspondingly, India could gain substantially if it engaged fully with the new entities.36 It could acquire markets for exports of services and manufactured goods (including, crucially, labour-​intensive manufactures such as textiles) and a much-​needed entry into global value chains. Exposure to cheaper imports and higher standards could well spur productivity growth, directly, as well as indirectly by catalysing domestic reform efforts. Thus, India urgently needs to devise a strategy to deal with the PTA jig-​saw. In my judgement, the safest course, because it would hedge all bets, would be try and energize the slow-​moving RCEP talks but simultaneously open negotiations to join APEC, with a view to a possible entry into the TPP, and eventually into the FTAAP, if the latter became a reality.37 At the same time, India should shift away from negotiating shallow bilateral agreements with all and sundry.

There seems to be little realization that trade expansion and exposure to global competition are essential components of a strategy to sustain rapid growth and to address India’s employment problem. (It is noteworthy that no country has achieved durable super-​fast growth, especially of its manufacturing sector, that has not had super-​fast growth in its exports.) Indian policymakers have also failed to recognize the changing character of international trade, especially the importance of global value chains and the associated movements in the direction of tighter ‘behind the border’ disciplines. All of India’s major trading partners are now contemplating, negotiating, or concluding mega-​ regional agreements that take these new developments on board. When completed, these agreements are potentially likely to cover more than two-​ thirds of world trade and to set its rules and framework for years to come.

If India makes an entry into these mega-​regionals without compromising on its main demands, large advantages are likely to accrue. India would gain easier access to foreign markets for exports of services and manufactures (including, crucially, labour-​intensive manufactures such as apparel and clothing). Exposure to lower-​cost imports and higher foreign standards could raise productivity in Indian manufacturing and services, and prepare these sectors to participate in global value chains. At the same time, as in many countries (e.g. in China, after it joined the WTO), trade policy commitments may serve to catalyse domestic reform efforts. Fourthly, India should also fight to keep the WTO process going because multilateralism continues to have some solid advantages (see Chapter 12). It will not be easy to strike the right balance between these four different tracks. It will need clear thinking and competent execution.


pages: 382 words: 107,150

We Are All Fast-Food Workers Now: The Global Uprising Against Poverty Wages by Annelise Orleck

airport security, American Legislative Exchange Council, anti-communist, Bernie Sanders, big-box store, British Empire, call centre, Capital in the Twenty-First Century by Thomas Piketty, card file, clean water, collective bargaining, corporate social responsibility, deindustrialization, Deng Xiaoping, Donald Trump, Ferguson, Missouri, financial deregulation, Food sovereignty, gig economy, global supply chain, global value chain, immigration reform, indoor plumbing, Kickstarter, land reform, land tenure, Mahatma Gandhi, mass immigration, McJob, means of production, new economy, payday loans, precariat, race to the bottom, Rana Plaza, rent-seeking, ride hailing / ride sharing, road to serfdom, Ronald Reagan, Rosa Parks, shareholder value, Skype, special economic zone, Triangle Shirtwaist Factory, union organizing, War on Poverty, women in the workforce, working poor

She has felt the flames, smelled wet smoke, and breathed in the scent of fire and death. She has held sobbing mothers in her arms and tracked down damning evidence. She knows who is responsible for the regularly occurring factory disasters that have taken the lives of thousands of young Bangladeshi workers, and she is no longer willing to let them hide behind their complex and fragmented global value chains. “We don’t want to know how complicated your supply chain is,” she says. “There’s a worker and a clothing company. I don’t want to know who is in between.” Multinational clothing corporations must be held accountable, Akter believes. There’s a moral bottom line—life and death, burned and crushed limbs. She intends to draw that moral red line on our clothes by traveling the world, speaking out, fighting for safer workplace conditions, and sparking pangs of consumer conscience until everybody understands.

The “new economy” movement is working to create more humane local, national, and global economies driven by renewable energy. Roots of Change, Food Policy Councils, Via Campesina, Food First, and others are laying the groundwork for healthier, more inclusive farm, food, and water systems. The Worker Rights Consortium, International Labor Rights Forum, and global unions including the ITUC, IUF, UNI Global Union, and IndustriALL are constructing new global values chains—built on fair trade and worker justice. To build these ambitious new systems, activists are organizing broad coalitions, rejecting internecine battles and tests of ideological purity. Workers, labor and community organizers, consumers, faith, civil rights, and youth groups, politicians, government officials, environmental and philanthropic networks are entering alliances built on flexibility, mutual respect, creativity, and courage.


pages: 179 words: 43,441

The Fourth Industrial Revolution by Klaus Schwab

3D printing, additive manufacturing, Airbnb, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, barriers to entry, Baxter: Rethink Robotics, bitcoin, blockchain, Buckminster Fuller, call centre, clean water, collaborative consumption, commoditize, conceptual framework, continuous integration, crowdsourcing, digital twin, disintermediation, disruptive innovation, distributed ledger, Edward Snowden, Elon Musk, epigenetics, Erik Brynjolfsson, future of work, global value chain, Google Glasses, income inequality, Internet Archive, Internet of things, invention of the steam engine, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, life extension, Lyft, mass immigration, megacity, meta analysis, meta-analysis, more computing power than Apollo, mutually assured destruction, Narrative Science, Network effects, Nicholas Carr, personalized medicine, precariat, precision agriculture, Productivity paradox, race to the bottom, randomized controlled trial, reshoring, RFID, rising living standards, Sam Altman, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, smart cities, smart contracts, software as a service, Stephen Hawking, Steve Jobs, Steven Levy, Stuxnet, supercomputer in your pocket, TaskRabbit, The Future of Employment, The Spirit Level, total factor productivity, transaction costs, Uber and Lyft, uber lyft, Watson beat the top human players on Jeopardy!, WikiLeaks, winner-take-all economy, women in the workforce, working-age population, Y Combinator, Zipcar

This is the reason why Massachusetts Institute of Technology (MIT) Professors Erik Brynjolfsson and Andrew McAfee have famously referred to this period as “the second machine age”2, the title of their 2014 book, stating that the world is at an inflection point where the effect of these digital technologies will manifest with “full force” through automation and and the making of “unprecedented things”. In Germany, there are discussions about “Industry 4.0”, a term coined at the Hannover Fair in 2011 to describe how this will revolutionize the organization of global value chains. By enabling “smart factories”, the fourth industrial revolution creates a world in which virtual and physical systems of manufacturing globally cooperate with each other in a flexible way. This enables the absolute customization of products and the creation of new operating models. The fourth industrial revolution, however, is not only about smart and connected machines and systems. Its scope is much wider.


pages: 161 words: 44,488

The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology by William Mougayar

Airbnb, airport security, Albert Einstein, altcoin, Amazon Web Services, bitcoin, Black Swan, blockchain, business process, centralized clearinghouse, Clayton Christensen, cloud computing, cryptocurrency, disintermediation, distributed ledger, Edward Snowden, en.wikipedia.org, Ethereum, ethereum blockchain, fault tolerance, fiat currency, fixed income, global value chain, Innovator's Dilemma, Internet of things, Kevin Kelly, Kickstarter, market clearing, Network effects, new economy, peer-to-peer, peer-to-peer lending, prediction markets, pull request, QR code, ride hailing / ride sharing, Satoshi Nakamoto, sharing economy, smart contracts, social web, software as a service, too big to fail, Turing complete, web application

Over time, there will be a critical mass of users with significant cryptocurrency balances in their accounts, and further network effects benefits will ensue. Only then can the crypto economy claim to have made potential dents in the current financial system in contrast to the “one nation-one sovereign currency” paradigm. A NEW FLOW OF VALUE The blockchain enables a new “flow of value,” a concept related to 2001 Nobel laureate in economics Michael Spence’s5 work on how digital technologies transform global value chains through the dynamics of information flows. Michael Spence observed that emerging economies were growing at rates not seen before, primarily due to the enabling effect of the larger global economy. He attributed the acceleration in the flow of knowledge, technology and learning, as the main linkage to the acceleration in their growth. We have a similar situation relating to what the blockchain is enabling.


Apocalypse Never: Why Environmental Alarmism Hurts Us All by Michael Shellenberger

Albert Einstein, Asperger Syndrome, Bernie Sanders, Bob Geldof, carbon footprint, Cesare Marchetti: Marchetti’s constant, clean water, Corn Laws, coronavirus, corporate social responsibility, correlation does not imply causation, cuban missile crisis, decarbonisation, deindustrialization, Dissolution of the Soviet Union, Donald Trump, Elon Musk, energy transition, failed state, Gary Taubes, global value chain, Google Earth, hydraulic fracturing, index fund, Indoor air pollution, indoor plumbing, Intergovernmental Panel on Climate Change (IPCC), Internet Archive, land tenure, Live Aid, LNG terminal, long peace, manufacturing employment, mass immigration, meta analysis, meta-analysis, off grid, oil shale / tar sands, Potemkin village, purchasing power parity, Ralph Nader, renewable energy transition, Steven Pinker, supervolcano, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, trade route, union organizing, WikiLeaks, Y2K

Ibid. 47. Margaret McMillan, Dani Rodrik, and Claudia Sepulveda, “Structural Change, Fundamentals, and Growth: A Framework and Case Studies,” NBER Working Paper 23378, National Bureau of Economic Research, May 2017, https://www.nber.org/papers/w23378.pdf, 10. 48. Dani Rodrik, “New Technologies, Global Value Chains, and the Developing Economies,” Pathways for Prosperity Commission Background Paper 1, September 2018, https://drodrik.scholar.harvard.edu/files/dani-rodrik/files/new_technologies_global_value_chains_developing_economies.pdf, 7. 49. Robert Gellatelly and Ben Kiernan, The Specter of Genocide: Mass Murder in Historical Perspective (Cambridge, UK: Cambridge University Press, 2003), 290–91. 50. “Corruption Perceptions Index 2019,” Transparency International, https://www.transparency.org/cpi2019. 51.


pages: 207 words: 59,298

The Gig Economy: A Critical Introduction by Jamie Woodcock, Mark Graham

Airbnb, Amazon Mechanical Turk, autonomous vehicles, barriers to entry, British Empire, business process, business process outsourcing, call centre, collective bargaining, commoditize, corporate social responsibility, crowdsourcing, David Graeber, deindustrialization, disintermediation, en.wikipedia.org, full employment, future of work, gender pay gap, gig economy, global value chain, informal economy, information asymmetry, inventory management, Jaron Lanier, Jeff Bezos, job automation, knowledge economy, Lyft, mass immigration, means of production, Network effects, new economy, Panopticon Jeremy Bentham, planetary scale, precariat, rent-seeking, RFID, ride hailing / ride sharing, Ronald Reagan, self-driving car, sentiment analysis, sharing economy, Silicon Valley, Silicon Valley ideology, TaskRabbit, The Future of Employment, transaction costs, Travis Kalanick, two-sided market, Uber and Lyft, Uber for X, uber lyft, union organizing, women in the workforce, working poor, young professional

Technological Forecasting and Social Change, 114: 254–80. Fudge, J. (2017) The future of the standard employment relationship: Labour law, new institutional economics and old power resource theory. Journal of Industrial Relations, 59(3): 374–92. Gandini, A. (2016) The Reputation Economy: Understanding Knowledge Work in Digital Society. London: Palgrave Macmillan. Gereffi, G., Humphrey, J. and Sturgeon, T. (2005) The governance of global value chains. Review of International Political Economy, 12(1): 78–104. Goodwin, T. (2015) The Battle Is for the Customer Interface. TechCrunch, 3 March. Available at: https://techcrunch.com/2015/03/03/in-the-age-of-disintermediation-the-battle-is-all-for-the-customer-interface/ Goos, M. and Manning, A. (2007) Lousy and lovely jobs: The rising polarization of work in Britain. Review of Economics and Statistics, 89(1): 118–33.


pages: 233 words: 64,702

China's Disruptors: How Alibaba, Xiaomi, Tencent, and Other Companies Are Changing the Rules of Business by Edward Tse

3D printing, Airbnb, Airbus A320, Asian financial crisis, barriers to entry, bilateral investment treaty, business process, capital controls, commoditize, conceptual framework, corporate governance, creative destruction, crowdsourcing, currency manipulation / currency intervention, David Graeber, Deng Xiaoping, disruptive innovation, experimental economics, global supply chain, global value chain, high net worth, industrial robot, Joseph Schumpeter, Lyft, money market fund, offshore financial centre, Pearl River Delta, reshoring, rising living standards, risk tolerance, Silicon Valley, Skype, Snapchat, sovereign wealth fund, special economic zone, speech recognition, Steve Jobs, thinkpad, trade route, wealth creators, working-age population

The combination of a complicated and quickly changing demand pattern, hypercompetition, reworked industry boundaries, and discontinuities in the regulatory context requires companies, both foreign and Chinese, to develop new sources of competitive advantage in order to secure a better market position. These new sources of competitive advantage can manifest in various ways—new products, technologies, brands, ways to go to market, service models, and even entire business models. Foreign companies will find themselves compelled to integrate the advantages that China-based operations have into their global value chains—developing products there, selling into its markets, and then using the economies of scale China allows to take those goods to the rest of the world. Chinese companies are already doing this: driven by the hunger and ambition of their owners, many want to take their products everywhere, especially to the world’s developed markets. Multinational companies should not view China as “another” market.


pages: 268 words: 75,490

The Knowledge Economy by Roberto Mangabeira Unger

additive manufacturing, balance sheet recession, business cycle, collective bargaining, commoditize, deindustrialization, disruptive innovation, first-past-the-post, full employment, global value chain, information asymmetry, knowledge economy, market fundamentalism, means of production, Paul Samuelson, savings glut, secular stagnation, side project, total factor productivity, transaction costs, union organizing, wealth creators

Developing countries can no longer rely on this prescription to sustain economic growth and begin to close the gap separating them from the richest economies. Some have long suffered from what has been described as premature deindustrialization. Others have tried to prolong the life of mass production by combining low wages (by international standards) with a specialized and subordinate niche in global value chains, useful to the megafirms of knowledge-intensive production. They have embraced the commoditized side of a business that in its upper reaches, typically in a faraway rich country, exemplifies the familiar insular form of experimentalist, knowledge-intensive production. Only a few (especially China and India and to a lesser degree Russia and Brazil) have established, always in the insular mode, an outpost of the cosmopolitan knowledge economy.


pages: 555 words: 80,635

Open: The Progressive Case for Free Trade, Immigration, and Global Capital by Kimberly Clausing

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, active measures, Affordable Care Act / Obamacare, agricultural Revolution, battle of ideas, Bernie Sanders, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, corporate social responsibility, creative destruction, currency manipulation / currency intervention, David Ricardo: comparative advantage, Donald Trump, floating exchange rates, full employment, gig economy, global supply chain, global value chain, guest worker program, illegal immigration, immigration reform, income inequality, index fund, investor state dispute settlement, knowledge worker, labor-force participation, low skilled workers, Lyft, manufacturing employment, Mark Zuckerberg, meta analysis, meta-analysis, offshore financial centre, open economy, Paul Samuelson, profit motive, purchasing power parity, race to the bottom, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transfer pricing, uber lyft, winner-take-all economy, working-age population, zero-sum game

For more background, see Council of Economic Advisers, The Economic Benefits of US Trade, Report, May 2015. 6. This share could be as large as 40 percent. See Robert Koopman, William Powers, Zhi Wang, and Shang-Jin Wei, “Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains,” Working Paper 16426, NBER Working Papers, National Bureau of Economic Research, 2010, Table A3. A more recent analysis suggests a share of 27 percent. See Alonso de Gortari, “Disentangling Global Value Chains,” Harvard University Working Paper, November 26, 2017. 7. Andrew B. Bernard, J. Bradford Jensen, Stephen J. Redding, and Peter K. Schott, “Global Firms,” Working Paper 22727, NBER Working Papers, National Bureau of Economic Research, 2016. 8. See Kenneth L. Kraemer, Greg Linden, and Jason Dedrick, “Capturing Value in Global Networks: Apple’s iPad and iPhone,” University of California, Irvine, University of California, Berkeley, and Syracuse University Working Paper, 2011. 9.


The Making of a World City: London 1991 to 2021 by Greg Clark

Basel III, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, British Empire, business climate, business cycle, capital controls, carbon footprint, congestion charging, corporate governance, cross-subsidies, deindustrialization, Dissolution of the Soviet Union, East Village, Fall of the Berlin Wall, financial innovation, financial intermediation, global value chain, haute cuisine, housing crisis, industrial cluster, intangible asset, Kickstarter, knowledge economy, knowledge worker, labour market flexibility, low skilled workers, manufacturing employment, Masdar, mass immigration, megacity, New Urbanism, offshore financial centre, Pearl River Delta, place-making, rent control, Robert Gordon, Silicon Valley, smart cities, sovereign wealth fund, trickle-down economics, urban planning, urban renewal, working poor

City leadership in a complex world will be critical. New studies acknowledge that urban success and failure is to at least some extent shaped by leadership, management and planning guidance (AT Kearney, 2014). Benchmarks identify significant challenges for urban policy leaders to attract and retain educated people, generate economic opportunity, market effectively, and position their city and its firms within global value chains. Effective governance regimes, proficient and transparent public service delivery, and focused public sector support for entrepreneurial innovation and smartness, are all determinants of urban competitiveness and functionality (Economist Intelligence Unit and Siemens, 2009; McKinsey Global Institute, 2011). 11 London in the next decade: Implications of the rise of other world cities The system of world cities has changed considerably even since 2008, let alone since 1991.


Industry 4.0: The Industrial Internet of Things by Alasdair Gilchrist

3D printing, additive manufacturing, Amazon Web Services, augmented reality, autonomous vehicles, barriers to entry, business intelligence, business process, chief data officer, cloud computing, connected car, cyber-physical system, deindustrialization, DevOps, digital twin, fault tolerance, global value chain, Google Glasses, hiring and firing, industrial robot, inflight wifi, Infrastructure as a Service, Internet of things, inventory management, job automation, low cost airline, low skilled workers, microservices, millennium bug, pattern recognition, peer-to-peer, platform as a service, pre–internet, race to the bottom, RFID, Skype, smart cities, smart grid, smart meter, smart transportation, software as a service, stealth mode startup, supply-chain management, trade route, undersea cable, web application, WebRTC, Y2K

The essence of vertical networking stems from the use of cyber-physical production systems (CPPSs), which lets factories and manufacturing plants react quickly and appropriately to variables, such as demand levels, stock levels, machine defects, and unforeseen delays. 199 200 Chapter 13 | Introducing Industry 4.0 Similarly, networking and integration also involve the smart logistics and marketing services of an organization, as well as its smart services, since production is customized in such a way that it is individualized and targeted specifically to customers. 2. Horizontal integration through global value chain networks Integration will facilitate the establishment and maintenance of networks that create and add value. The first relationship that comes to mind when we talk of horizontal integration is the one between the business partners and the customers. However, it could also mean the integration of new business models across countries and even across continents, making for a global network. 3.


pages: 323 words: 90,868

The Wealth of Humans: Work, Power, and Status in the Twenty-First Century by Ryan Avent

"Robert Solow", 3D printing, Airbnb, American energy revolution, assortative mating, autonomous vehicles, Bakken shale, barriers to entry, basic income, Bernie Sanders, BRICs, business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer age, creative destruction, dark matter, David Ricardo: comparative advantage, deindustrialization, dematerialisation, Deng Xiaoping, deskilling, disruptive innovation, Dissolution of the Soviet Union, Donald Trump, Downton Abbey, Edward Glaeser, Erik Brynjolfsson, eurozone crisis, everywhere but in the productivity statistics, falling living standards, first square of the chessboard, first square of the chessboard / second half of the chessboard, Ford paid five dollars a day, Francis Fukuyama: the end of history, future of work, gig economy, global supply chain, global value chain, hydraulic fracturing, income inequality, indoor plumbing, industrial robot, intangible asset, interchangeable parts, Internet of things, inventory management, invisible hand, James Watt: steam engine, Jeff Bezos, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph-Marie Jacquard, knowledge economy, low skilled workers, lump of labour, Lyft, manufacturing employment, Marc Andreessen, mass immigration, means of production, new economy, performance metric, pets.com, post-work, price mechanism, quantitative easing, Ray Kurzweil, rent-seeking, reshoring, rising living standards, Robert Gordon, Ronald Coase, savings glut, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, single-payer health, software is eating the world, supply-chain management, supply-chain management software, TaskRabbit, The Future of Employment, The Nature of the Firm, The Rise and Fall of American Growth, The Spirit Level, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, Tyler Cowen: Great Stagnation, Uber and Lyft, Uber for X, uber lyft, very high income, working-age population

Ibid; the internal quote is from Mitch, David, ‘The Role of Education and Skill in the British Industrial Revolution’, Mokyr, Joel, ed. The British Industrial Revolution: An Economic Perspective, 1993. 11. Subramanian, Arvind, and Kessler, Martin, ‘The Hyperglobalization of Trade and its Future’, Word Trade Organization, 2013. 12. Dedrick, Jason, Kraemer, Kenneth, and Linden, Greg, ‘Who Profits from Innovation in Global Value Chains? A Study of the iPod and Notebook PCs’, Industrial and Corporate Change, February 2010. 13. Marshall, Alfred, Principles of Economics (1890). 14. Copeland, Rob, and Hope, Bradley, ‘Schism atop Bridgewater, the World’s Largest Hedge Fund’, Wall Street Journal, 5 February 2016. 15. Robischon, Noah, ‘How BuzzFeed’s Jonah Peretti is Building a 100-year Media Company’, Fast Company, 16 February 2016. 16. 


pages: 322 words: 87,181

Straight Talk on Trade: Ideas for a Sane World Economy by Dani Rodrik

3D printing, airline deregulation, Asian financial crisis, bank run, barriers to entry, Berlin Wall, Bernie Sanders, blue-collar work, Bretton Woods, BRICs, business cycle, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, central bank independence, centre right, collective bargaining, conceptual framework, continuous integration, corporate governance, corporate social responsibility, currency manipulation / currency intervention, David Ricardo: comparative advantage, deindustrialization, Donald Trump, endogenous growth, Eugene Fama: efficient market hypothesis, eurozone crisis, failed state, financial deregulation, financial innovation, financial intermediation, financial repression, floating exchange rates, full employment, future of work, George Akerlof, global value chain, income inequality, inflation targeting, information asymmetry, investor state dispute settlement, invisible hand, Jean Tirole, Kenneth Rogoff, low skilled workers, manufacturing employment, market clearing, market fundamentalism, meta analysis, meta-analysis, moral hazard, Nelson Mandela, new economy, offshore financial centre, open borders, open economy, Pareto efficiency, postindustrial economy, price stability, pushing on a string, race to the bottom, randomized controlled trial, regulatory arbitrage, rent control, rent-seeking, Richard Thaler, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, Sam Peltzman, Silicon Valley, special economic zone, spectrum auction, Steven Pinker, The Rise and Fall of American Growth, the scientific method, The Wealth of Nations by Adam Smith, Thomas L Friedman, too big to fail, total factor productivity, trade liberalization, transaction costs, unorthodox policies, Washington Consensus, World Values Survey, zero-sum game, éminence grise

As costly as they have been, the dislocations of the great recession and the euro crisis pale in significance compared to those of the Great Depression. Advanced democracies have built—and retain (despite recent setbacks)—extensive social safety nets in the form of unemployment insurance, retirement pensions, and family benefits. The world economy now has functional international institutions—such as the International Monetary Fund and the World Trade Organization—that it lacked prior to the Second World War. Global value chains have entrenched strong business lobbies for continued integration that even an instinctive protectionist like Donald Trump will find hard to overcome. Last but not least, truly extremist political movements such as fascism and communism have been largely discredited. Still, the conflicts between a hyperglobalized economy and social cohesion are real, and mainstream political elites ignore them at their peril.


pages: 414 words: 101,285

The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do About It by Ian Goldin, Mike Mariathasan

"Robert Solow", air freight, Andrei Shleifer, Asian financial crisis, asset-backed security, bank run, barriers to entry, Basel III, Berlin Wall, Bretton Woods, BRICs, business cycle, butterfly effect, clean water, collapse of Lehman Brothers, collateralized debt obligation, complexity theory, connected car, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deglobalization, Deng Xiaoping, discovery of penicillin, diversification, diversified portfolio, Douglas Engelbart, Douglas Engelbart, Edward Lorenz: Chaos theory, energy security, eurozone crisis, failed state, Fellow of the Royal Society, financial deregulation, financial innovation, financial intermediation, fixed income, Gini coefficient, global pandemic, global supply chain, global value chain, global village, income inequality, information asymmetry, Jean Tirole, John Snow's cholera map, Kenneth Rogoff, light touch regulation, Long Term Capital Management, market bubble, mass immigration, megacity, moral hazard, Occupy movement, offshore financial centre, open economy, profit maximization, purchasing power parity, race to the bottom, RAND corporation, regulatory arbitrage, reshoring, Silicon Valley, six sigma, Stuxnet, supply-chain management, The Great Moderation, too big to fail, Toyota Production System, trade liberalization, transaction costs, uranium enrichment

The period 1840–1914 was mainly one of trans-Atlantic migration, whereas the movements that followed the aftermath of the Second World War and accelerated during the 1980s have spanned the entire globe.13 The global movement of goods and people has been facilitated by the expansion and development of an increasingly complex system of roads, railways, shipping routes, and air traffic.14 In 2008 world container port traffic surpassed the threshold of 500 million TEUs (twenty-foot equivalent units) for the first time and was seven times greater than in 1988.15 World air travel has more than doubled since the mid-1990s (see figure 1.1). Over the same period, the real value of world trade has more than quadrupled as the demand for high-value traded goods has risen more rapidly than incomes, and production processes have fragmented geographically with the rise in global value chains, facilitated by more efficient logistics.16 What most distinctively separated recent decades from previous ones was the coincidence of dramatic political, economic, and technological change.17 The end of the Soviet Union and the integration of China and many former autarkic regimes into the world community coincided with the technological revolution that brought us Amazon (in 1994), eBay (in 1995), Google (in 1998), and Facebook (in 2004).


Data and the City by Rob Kitchin,Tracey P. Lauriault,Gavin McArdle

A Declaration of the Independence of Cyberspace, bike sharing scheme, bitcoin, blockchain, Bretton Woods, Chelsea Manning, citizen journalism, Claude Shannon: information theory, clean water, cloud computing, complexity theory, conceptual framework, corporate governance, correlation does not imply causation, create, read, update, delete, crowdsourcing, cryptocurrency, dematerialisation, digital map, distributed ledger, fault tolerance, fiat currency, Filter Bubble, floating exchange rates, global value chain, Google Earth, hive mind, Internet of things, Kickstarter, knowledge economy, lifelogging, linked data, loose coupling, new economy, New Urbanism, Nicholas Carr, open economy, openstreetmap, packet switching, pattern recognition, performance metric, place-making, RAND corporation, RFID, Richard Florida, ride hailing / ride sharing, semantic web, sentiment analysis, sharing economy, Silicon Valley, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart contracts, smart grid, smart meter, social graph, software studies, statistical model, TaskRabbit, text mining, The Chicago School, The Death and Life of Great American Cities, the market place, the medium is the message, the scientific method, Toyota Production System, urban planning, urban sprawl, web application

Kogler 46 Leadership and Place Edited by Chris Collinge, John Gibney and Chris Mabey 45 Migration in the 21st Century Rights, outcomes, and policy Kim Korinek and Thomas Maloney 44 The Futures of the City Region Edited by Michael Neuman and Angela Hull 43 The Impacts of Automotive Plant Closures A tale of two cities Edited by Andrew Beer and Holli Evans 42 Manufacturing in the New Urban Economy Willem van Winden, Leo van den Berg, Luis de Carvalho and Erwin van Tuijl 41 Globalizing Regional Development in East Asia Production networks, clusters, and entrepreneurship Edited by Henry Wai-chung Yeung 40 China and Europe The implications of the rise of China as a global economic power for Europe Edited by Klaus Kunzmann, Willy A Schmid and Martina Koll-Schretzenmayr 39 Business Networks in Clusters and Industrial Districts The governance of the global value chain Edited by Fiorenza Belussi and Alessia Sammarra 38 Whither Regional Studies? Edited by Andy Pike 33 Geographies of the New Economy Critical reflections Edited by Peter W. Daniels, Andrew Leyshon, Michael J. Bradshaw and Jonathan Beaverstock 32 The Rise of the English Regions? Edited by Irene Hardill, Paul Benneworth, Mark Baker and Leslie Budd 31 Regional Development in the Knowledge Economy Edited by Philip Cooke and Andrea Piccaluga 30 Regional Competitiveness Edited by Ron Martin, Michael Kitson and Peter Tyler 37 Intelligent Cities and Globalisation of Innovation Networks Nicos Komninos 29 Clusters and Regional Development Critical reflections and explorations Edited by Bjørn Asheim, Philip Cooke and Ron Martin 36 Devolution, Regionalism and Regional Development The UK experience Edited by Jonathan Bradbury 28 Regions, Spatial Strategies and Sustainable Development David Counsell and Graham Haughton 35 Creative Regions Technology, culture and knowledge entrepreneurship Edited by Philip Cooke and Dafna Schwartz 27 Sustainable Cities Graham Haughton and Colin Hunter 34 European Cohesion Policy Willem Molle 26 Geographies of Labour Market Inequality Edited by Ron Martin and Philip S.


pages: 431 words: 107,868

The Great Race: The Global Quest for the Car of the Future by Levi Tillemann

Affordable Care Act / Obamacare, Any sufficiently advanced technology is indistinguishable from magic, autonomous vehicles, banking crisis, car-free, carbon footprint, cleantech, creative destruction, decarbonisation, deindustrialization, demand response, Deng Xiaoping, Donald Trump, Elon Musk, en.wikipedia.org, energy security, factory automation, global value chain, hydrogen economy, index card, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, Joseph Schumpeter, Kickstarter, manufacturing employment, market design, megacity, Nixon shock, obamacare, oil shock, Ralph Nader, RFID, rolodex, Ronald Reagan, Rubik’s Cube, self-driving car, shareholder value, Silicon Valley, Silicon Valley startup, skunkworks, smart cities, sovereign wealth fund, special economic zone, Steve Jobs, Tesla Model S, too big to fail, Unsafe at Any Speed, zero-sum game, Zipcar

California Air Resources Board, accessed February 9, 2012, http://www.arb.ca.gov/html/brochure/history.htm. CarStations.com. “Electric Car Stations,” accessed February 8, 2012, http://carstations.com/. Carter, Jimmy. 1982. Keeping Faith: Memoirs of a President. New York: Bantam Books. Carter, Kelley. 2003. “ ‘Hybrid’ Cars Were the Oscars’ Politically Correct Ride.” USA Today, March 30, http://usatoday30.usatoday.com/life/2003-03-30-hybrids_x.htm. Cattaneo, Oliver et al. eds. 2010. Global Value Chains in a Postcrisis World: A Developmental Perspective. The World Bank. CBS Detroit. 2012. “A123 Recalling $55M in EV Batteries Made in Livonia.” March 26, 2012. Center for Biological Diversity v. NHTSA, 1, 14831 (United States Court of Appeals for the Ninth Circuit 2007). Center for Internet and Society, Stanford Law School. 2014, “Automated Driving: Legislative and Regulatory Action.” Accessed January 13, 2014, http://cyberlaw.stanford.edu/wiki/index.php/Automated_Driving:_Legislative_and_Regulatory_Action.


pages: 385 words: 111,807

A Pelican Introduction Economics: A User's Guide by Ha-Joon Chang

Affordable Care Act / Obamacare, Albert Einstein, Asian financial crisis, asset-backed security, bank run, banking crisis, banks create money, Berlin Wall, bilateral investment treaty, borderless world, Bretton Woods, British Empire, call centre, capital controls, central bank independence, collateralized debt obligation, colonial rule, Corn Laws, corporate governance, corporate raider, creative destruction, Credit Default Swap, credit default swaps / collateralized debt obligations, David Ricardo: comparative advantage, deindustrialization, discovery of the americas, Eugene Fama: efficient market hypothesis, eurozone crisis, experimental economics, Fall of the Berlin Wall, falling living standards, financial deregulation, financial innovation, Francis Fukuyama: the end of history, Frederick Winslow Taylor, full employment, George Akerlof, Gini coefficient, global value chain, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, Gunnar Myrdal, Haber-Bosch Process, happiness index / gross national happiness, high net worth, income inequality, income per capita, information asymmetry, intangible asset, interchangeable parts, interest rate swap, inventory management, invisible hand, Isaac Newton, James Watt: steam engine, Johann Wolfgang von Goethe, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, joint-stock limited liability company, Joseph Schumpeter, knowledge economy, laissez-faire capitalism, land reform, liberation theology, manufacturing employment, Mark Zuckerberg, market clearing, market fundamentalism, Martin Wolf, means of production, Mexican peso crisis / tequila crisis, Nelson Mandela, Northern Rock, obamacare, offshore financial centre, oil shock, open borders, Pareto efficiency, Paul Samuelson, post-industrial society, precariat, principal–agent problem, profit maximization, profit motive, purchasing power parity, quantitative easing, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, Scramble for Africa, shareholder value, Silicon Valley, Simon Kuznets, sovereign wealth fund, spinning jenny, structural adjustment programs, The Great Moderation, The Market for Lemons, The Spirit Level, The Wealth of Nations by Adam Smith, Thorstein Veblen, trade liberalization, transaction costs, transfer pricing, trickle-down economics, Vilfredo Pareto, Washington Consensus, working-age population, World Values Survey

CHANG Bad Samaritans: Rich Nations, Poor Policies and the Threat to the Developing World (London: Random House, 2007). P. HIRST, G. THOMPSON AND S. BROMLEY Globalization in Question, 3rd edition (Cambridge: Polity, 2009). R. KOZUL-WRIGHT AND P. RAYMENT The Resistible Rise of Market Fundamentalism: Rethinking Development Policy in an Unbalanced World (London: Zed Books and Third World Network, 2007). W. MILBERG AND D. WINKLER Outsourcing Economics: Global Value Chains in Capitalist Development (Cambridge and New York: Cambridge University Press, 2013). D. RODRIK The Globalization Paradox (Oxford: Oxford University Press, 2011). J. STIGLITZ Making Globalization Work (London and New York: W. W. Norton and Co., 2006). M. WOLF Why Globalization Works (New Haven and London: Yale University Press, 2004). The first part of this book has been about ‘getting used to’ economics.


Innovation and Its Enemies by Calestous Juma

3D printing, additive manufacturing, agricultural Revolution, Asilomar, Asilomar Conference on Recombinant DNA, autonomous vehicles, big-box store, business cycle, Cass Sunstein, clean water, collective bargaining, colonial rule, computer age, creative destruction, Daniel Kahneman / Amos Tversky, deskilling, disruptive innovation, energy transition, Erik Brynjolfsson, financial innovation, global value chain, Honoré de Balzac, illegal immigration, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invention of movable type, invention of the printing press, Joseph Schumpeter, knowledge economy, loss aversion, Marc Andreessen, means of production, Menlo Park, mobile money, New Urbanism, Nicholas Carr, pensions crisis, phenotype, Ray Kurzweil, refrigerator car, Second Machine Age, self-driving car, smart grid, smart meter, stem cell, Steve Jobs, technological singularity, The Future of Employment, Thomas Kuhn: the structure of scientific revolutions, Travis Kalanick

Not only did the adoption of coffee create new values and social norms, but its impact influenced lasting structural changes such as the design of urban and rural areas and the associated pattern of social interaction.34 Coffeehouses created novel institutions that played new roles in society and wielded their own political power.35 Coffee adoption helped create new industries and stimulated the expansion of trade in complementary sectors such as aluminum.36 These changes extend to the wider global value chains created through the cultivation, production, process, distribution, and marketing of coffee and coffee products. The need for inclusive approaches is also reflected in strategies that are aimed at slowing down the adoption of a technology rather than seeking to extinguish it. Several examples come to mind. Edison’s initial efforts to stall the adoption of alternating current aimed to give him time to relocate his investments to other activities.


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The Levelling: What’s Next After Globalization by Michael O’sullivan

"Robert Solow", 3D printing, Airbnb, algorithmic trading, bank run, banking crisis, barriers to entry, Bernie Sanders, bitcoin, Black Swan, blockchain, Boris Johnson, Branko Milanovic, Bretton Woods, British Empire, business cycle, business process, capital controls, Celtic Tiger, central bank independence, cloud computing, continuation of politics by other means, corporate governance, credit crunch, cryptocurrency, deglobalization, deindustrialization, disruptive innovation, distributed ledger, Donald Trump, eurozone crisis, financial innovation, first-past-the-post, fixed income, Geoffrey West, Santa Fe Institute, Gini coefficient, global value chain, housing crisis, income inequality, Intergovernmental Panel on Climate Change (IPCC), knowledge economy, liberal world order, Long Term Capital Management, longitudinal study, market bubble, minimum wage unemployment, new economy, Northern Rock, offshore financial centre, open economy, pattern recognition, Peace of Westphalia, performance metric, private military company, quantitative easing, race to the bottom, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, Scramble for Africa, secular stagnation, Silicon Valley, Sinatra Doctrine, South China Sea, South Sea Bubble, special drawing rights, supply-chain management, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, total factor productivity, trade liberalization, tulip mania, Valery Gerasimov, Washington Consensus

“Inequality and Recessions.” Chicago Fed Letter 392, 2018. Angell, N. The Great Illusion. Cosimo Classics, 2007. Ansar, A., B. Flyvbjerg, A. Budzier, and D. Lunn. “Does Infrastructure Lead to Economic Growth or Economic Fragility? Evidence from China.” Oxford Review of Economic Policy 32, no. 3 (2016): 360–390. Auer, R., C. Borio, and A. Filardo. “The Globalisation of Inflation: The Growing Importance of Global Value Chains.” Bank for International Settlements (BIS) Working Papers, Monetary and Economic Department, Working Paper 602, 2017. Autor, D., D. Dorn, and G. Hanson. “The China Syndrome: Local Labor Market Effects of Import Competition in the United States.” American Economic Review 103, no. 6 (2012): 2121–2168. Autor, D., D. Dorn, G. Hanson, and K. Majlesi. “Importing Political Polarization? The Electoral Consequences of Rising Trade Exposure.”


World Cities and Nation States by Greg Clark, Tim Moonen

active transport: walking or cycling, Asian financial crisis, Berlin Wall, Big bang: deregulation of the City of London, Boris Johnson, business climate, cleantech, congestion charging, corporate governance, deindustrialization, Deng Xiaoping, financial independence, financial intermediation, Francis Fukuyama: the end of history, full employment, global supply chain, global value chain, high net worth, housing crisis, immigration reform, income inequality, informal economy, Kickstarter, knowledge economy, low skilled workers, megacity, new economy, New Urbanism, Norman Mailer, open economy, Pearl River Delta, rent control, Richard Florida, Silicon Valley, smart cities, sovereign wealth fund, special economic zone, stem cell, supply-chain management, The Wealth of Nations by Adam Smith, trade route, transaction costs, transit-oriented development, upwardly mobile, urban planning, urban renewal, urban sprawl, War on Poverty, zero-sum game

As the capital of a developmental state, it has achieved an extremely rapid rate of technological innovation and ­production, combined with very large infrastructure investment and subsequent regeneration. It is also the junction box for an economy which has become one of the world’s largest shipbuilders, steel producers and construction contractors. Seoul’s distinctive government and business model has become an inspiration to other Asian cities, and to others elsewhere, showing how to climb global value chains while continually managing the adverse consequences of rapid growth and preparing the city and its citizens for new cycles of development. Korea has a long history of centralised rule and until recently the central government was the decisive actor in Seoul’s development. This chapter highlights how, in a small and densely populated unitary country, the national urban development and public investment strategy was phenomenally successful in the first phases of industrial growth.


pages: 651 words: 135,818

China into Africa: trade, aid, and influence by Robert I. Rotberg

barriers to entry, BRICs, colonial rule, corporate governance, Deng Xiaoping, energy security, European colonialism, failed state, global supply chain, global value chain, income inequality, Khartoum Gordon, land reform, megacity, microcredit, offshore financial centre, one-China policy, out of africa, Pearl River Delta, profit maximization, purchasing power parity, RAND corporation, Scramble for Africa, South China Sea, special economic zone, structural adjustment programs, trade route, Washington Consensus, zero-sum game

African countries will want to avoid being trapped as a “resource basket” for a rapidly modernizing economy, such as China, and to realize their own dynamic efficiency gains by extracting value from their own endowed resources. Natural resources provide a quick launching base for African countries to generate value-added activities. Although still limited to a few countries, such as South Africa and Nigeria, resource-based, manufactured products, such as aluminum, could become a viable export to China. The second aspect relates to the prospects for broader participation in global value chains. There are growing vertical complementarities along value chains between Africa and China. Among the top African exports to and imports from China, there are clear complementarities in the cotton-textile-garment value chain. Raw material (cotton) is supplied by West African countries to 05-7561-4 ch5.qxd 9/16/08 4:13 PM Page 107 Vanguard of South-South Commerce 107 China, and intermediate materials (fabrics) are supplied by China to apparel producers in South Africa, Mauritius, Nigeria, and other countries in sub-Saharan Africa.


pages: 518 words: 147,036

The Fissured Workplace by David Weil

accounting loophole / creative accounting, affirmative action, Affordable Care Act / Obamacare, banking crisis, barriers to entry, business cycle, business process, buy and hold, call centre, Carmen Reinhart, Cass Sunstein, Clayton Christensen, clean water, collective bargaining, commoditize, corporate governance, corporate raider, Corrections Corporation of America, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, declining real wages, employer provided health coverage, Frank Levy and Richard Murnane: The New Division of Labor, George Akerlof, global supply chain, global value chain, hiring and firing, income inequality, information asymmetry, intermodal, inventory management, Jane Jacobs, Kenneth Rogoff, law of one price, loss aversion, low skilled workers, minimum wage unemployment, moral hazard, Network effects, new economy, occupational segregation, Paul Samuelson, performance metric, pre–internet, price discrimination, principal–agent problem, Rana Plaza, Richard Florida, Richard Thaler, Ronald Coase, shareholder value, Silicon Valley, statistical model, Steve Jobs, supply-chain management, The Death and Life of Great American Cities, The Nature of the Firm, transaction costs, ultimatum game, union organizing, women in the workforce, yield management

“Realizing Labor Standards: How Transparency, Competition, and Sanctions Could Improve Working Conditions Worldwide.” Boston Review 26, no. 1: 1–20. Galbraith, John Kenneth. 1971. The New Industrial State. 2nd ed. Boston: Houghton Mifflin. Gazel, Neil. 1990. Beatrice: From Buildup through Breakup. Urbana: University of Illinois Press. Gereffi, Gary, John Humphrey, and Timothy Sturgeon. 2005. “The Governance of Global Value Chains.” Review of International Political Economy 12, no. 1: 78–104. Ghilarducci, Teresa. 2008. When I’m Sixty-Four: The Plot against Pensions and the Plan to Save Them. Princeton, NJ: Princeton University Press. Gibson, John, and Steven Stillman. 2009. “Why Do Big Firms Pay Higher Wages? Evidence from an International Database.” Review of Economics and Statistics 91, no. 1: 213–218. Gilley, K.


pages: 524 words: 155,947

More: The 10,000-Year Rise of the World Economy by Philip Coggan

"Robert Solow", accounting loophole / creative accounting, Ada Lovelace, agricultural Revolution, Airbnb, airline deregulation, Andrei Shleifer, anti-communist, assortative mating, autonomous vehicles, bank run, banking crisis, banks create money, basic income, Berlin Wall, Bob Noyce, Branko Milanovic, Bretton Woods, British Empire, business cycle, call centre, capital controls, carbon footprint, Carmen Reinhart, Celtic Tiger, central bank independence, Charles Lindbergh, clean water, collective bargaining, Columbian Exchange, Columbine, Corn Laws, credit crunch, Credit Default Swap, crony capitalism, currency peg, debt deflation, Deng Xiaoping, discovery of the americas, Donald Trump, Erik Brynjolfsson, European colonialism, eurozone crisis, falling living standards, financial innovation, financial intermediation, floating exchange rates, Fractional reserve banking, Frederick Winslow Taylor, full employment, germ theory of disease, German hyperinflation, gig economy, Gini coefficient, global supply chain, global value chain, Gordon Gekko, greed is good, Haber-Bosch Process, Hans Rosling, Hernando de Soto, hydraulic fracturing, Ignaz Semmelweis: hand washing, income inequality, income per capita, indoor plumbing, industrial robot, inflation targeting, Isaac Newton, James Watt: steam engine, job automation, John Snow's cholera map, joint-stock company, joint-stock limited liability company, Kenneth Arrow, Kula ring, labour market flexibility, land reform, land tenure, Lao Tzu, large denomination, liquidity trap, Long Term Capital Management, Louis Blériot, low cost airline, low skilled workers, lump of labour, M-Pesa, Malcom McLean invented shipping containers, manufacturing employment, Marc Andreessen, Mark Zuckerberg, Martin Wolf, McJob, means of production, Mikhail Gorbachev, mittelstand, moral hazard, Murano, Venice glass, Myron Scholes, Nelson Mandela, Network effects, Northern Rock, oil shale / tar sands, oil shock, Paul Samuelson, popular capitalism, popular electronics, price stability, principal–agent problem, profit maximization, purchasing power parity, quantitative easing, railway mania, Ralph Nader, regulatory arbitrage, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, savings glut, Scramble for Africa, Second Machine Age, secular stagnation, Silicon Valley, Simon Kuznets, South China Sea, South Sea Bubble, special drawing rights, spice trade, spinning jenny, Steven Pinker, TaskRabbit, Thales and the olive presses, Thales of Miletus, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Malthus, Thorstein Veblen, trade route, transaction costs, transatlantic slave trade, transcontinental railway, Triangle Shirtwaist Factory, universal basic income, Unsafe at Any Speed, Upton Sinclair, V2 rocket, Veblen good, War on Poverty, Washington Consensus, Watson beat the top human players on Jeopardy!, women in the workforce, Yom Kippur War, zero-sum game

While it is common to talk of the US or German car industries, these manufacturers depend on global supply chains. Parts may cross international borders many times before they are assembled into the finished product.48 Perhaps 30–50% of the trade in manufactured goods occurs within individual multinational companies.49 As they became aware of this, many developing countries slashed their tariffs so that they could become part of these global value chains. MEMA estimates that around a third of all the parts that make US cars are imported, while in Germany, the proportion is 45%.50 Why have car manufacturers done this? To cut costs, of course. That is why imposing tariffs on imports will push up the price of domestically produced cars one way or the other – either the manufacturers will pay the tariffs and pass on the cost to customers, or they will disrupt their supply chains and make cars more expensively at home.


pages: 823 words: 206,070

The Making of Global Capitalism by Leo Panitch, Sam Gindin

accounting loophole / creative accounting, active measures, airline deregulation, anti-communist, Asian financial crisis, asset-backed security, bank run, banking crisis, barriers to entry, Basel III, Big bang: deregulation of the City of London, bilateral investment treaty, Branko Milanovic, Bretton Woods, BRICs, British Empire, business cycle, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, collective bargaining, continuous integration, corporate governance, creative destruction, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, currency peg, dark matter, Deng Xiaoping, disintermediation, ending welfare as we know it, eurozone crisis, facts on the ground, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, floating exchange rates, full employment, Gini coefficient, global value chain, guest worker program, Hyman Minsky, imperial preference, income inequality, inflation targeting, interchangeable parts, interest rate swap, Kenneth Rogoff, Kickstarter, land reform, late capitalism, liberal capitalism, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, manufacturing employment, market bubble, market fundamentalism, Martin Wolf, means of production, money market fund, money: store of value / unit of account / medium of exchange, Monroe Doctrine, moral hazard, mortgage debt, mortgage tax deduction, Myron Scholes, new economy, non-tariff barriers, Northern Rock, oil shock, precariat, price stability, quantitative easing, Ralph Nader, RAND corporation, regulatory arbitrage, reserve currency, risk tolerance, Ronald Reagan, seigniorage, shareholder value, short selling, Silicon Valley, sovereign wealth fund, special drawing rights, special economic zone, structural adjustment programs, The Chicago School, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, too big to fail, trade liberalization, transcontinental railway, trickle-down economics, union organizing, very high income, Washington Consensus, Works Progress Administration, zero-coupon bond, zero-sum game

Akyuz, “Capital Flows to Developing Countries,” p. 22. 49 Richard Kozul-Wright and Paul Rayment, “Globalization Reloaded,” UNCTAD Discussion Paper No. 167, January 2004, Table 3, p. 32; US Bureau of Labor Statistics, “International Labor Comparisons,” available at bls.gov; Erin Lett and Judith Bannister, “China’s Manufacturing Employment and Compensation Costs: 2002–2006,” Monthly Labour Review, April, 2009. 50 See Timothy Sturgeon, Johannes Van Biesebroeck, and Gary Gereffi, “Value Chains, Networks and Clusters: Reframing the Global Automotive Industry” Journal of Economic Geography 8: 3 (2008), pp. 297–321. 51 Stephen Hymer, ‘The “Multinational Firm and the Law of Uneven Development’, in J. Bhawgwati, ed., Economic and the World Order from the 1970s to the 1990s, New York: Free Press, 1972. 52 Jason Dedrick, Kenneth L. Kraemer, and Greg Linden, “Who Profits from Innovation in Global Value Chains? A Study of the iPod and Notebook PCs,” Industry Studies, Alfred P. Sloan Foundation, Boston, May 2008. 53 Peter F. Cowhey and Jonathon D. Aronson, Transforming Global Information and Communication Markets: The Political Economy of Innovations, Cambridge, MA: MIT Press, 2009, p.15. Cowhey and Aronson see American high-tech leadership as having been renewed since the early 1980s, thereby consolidating American postwar technological dominance: “Since 1945 the US market has been the most consistent agenda-setter for the global market.


The Outlaw Ocean: Journeys Across the Last Untamed Frontier by Ian Urbina

9 dash line, Airbnb, British Empire, clean water, Costa Concordia, crowdsourcing, Exxon Valdez, failed state, Filipino sailors, forensic accounting, global value chain, illegal immigration, invisible hand, John Markoff, Jones Act, Julian Assange, Malacca Straits, Maui Hawaii, New Journalism, offshore financial centre, pattern recognition, Peter Thiel, Silicon Valley, Skype, South China Sea, standardized shipping container, statistical arbitrage, UNCLOS, UNCLOS, union organizing, Upton Sinclair, WikiLeaks, William Langewiesche

Hugh Whittaker, and Glenn Simmons, “New Zealand’s Turbulent Waters: The Use of Forced Labour in the Fishing Industry” Global Networks: A Journal of Transnational Affairs 16, no. 1 (2016); Barry Torkington, “New Zealand’s Quota Management System—Incoherent and Conflicted,” Marine Policy 63 (Jan. 2016); Margo White, “The Dark Side of Our Fishing Industry,” Ingenio: Magazine of the University of Auckland (Spring 2014); Christina Stringer, “Worker Exploitation in New Zealand: A Troubling Landscape,” Human Trafficking Research Coalition, University of Auckland, Dec. 2016; Christina Stringer et al., “Labour Standards and Regulation in Global Value Chains: The Case of the New Zealand Fishing Industry,” Environment and Planning A: Economy and Space 48, no. 10 (2016). The U.S. State Department released: “Trafficking in Persons Report 2012,” U.S. Department of State, June 2012. Fishing companies had two years: The best way to understand this action is to read New Zealand’s 2011 report for the Ministerial Inquiry into Foreign Charter Vessels (FCV).


pages: 1,066 words: 273,703

Crashed: How a Decade of Financial Crises Changed the World by Adam Tooze

Affordable Care Act / Obamacare, Apple's 1984 Super Bowl advert, Asian financial crisis, asset-backed security, bank run, banking crisis, Basel III, Berlin Wall, Bernie Sanders, Big bang: deregulation of the City of London, Boris Johnson, break the buck, Bretton Woods, BRICs, British Empire, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, collateralized debt obligation, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, currency peg, dark matter, deindustrialization, desegregation, Detroit bankruptcy, Dissolution of the Soviet Union, diversification, Doha Development Round, Donald Trump, Edward Glaeser, Edward Snowden, en.wikipedia.org, energy security, eurozone crisis, Fall of the Berlin Wall, family office, financial intermediation, fixed income, Flash crash, forward guidance, friendly fire, full employment, global reserve currency, global supply chain, global value chain, Goldman Sachs: Vampire Squid, Growth in a Time of Debt, housing crisis, Hyman Minsky, illegal immigration, immigration reform, income inequality, interest rate derivative, interest rate swap, Kenneth Rogoff, large denomination, light touch regulation, Long Term Capital Management, margin call, Martin Wolf, McMansion, Mexican peso crisis / tequila crisis, mittelstand, money market fund, moral hazard, mortgage debt, mutually assured destruction, negative equity, new economy, Northern Rock, obamacare, Occupy movement, offshore financial centre, oil shale / tar sands, old-boy network, open economy, paradox of thrift, Peter Thiel, Ponzi scheme, predatory finance, price stability, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, reserve currency, risk tolerance, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, South China Sea, sovereign wealth fund, special drawing rights, structural adjustment programs, The Great Moderation, Tim Cook: Apple, too big to fail, trade liberalization, upwardly mobile, Washington Consensus, We are the 99%, white flight, WikiLeaks, women in the workforce, Works Progress Administration, yield curve, éminence grise

Paul Krugman has vigorously and convincingly defended the 1930s-era IS-LM as essential to understanding the mechanics of the recession and the sluggish recovery; see P. Krugman, “IS-LMentary” (Conscience of a Liberal Blog), New York Times, October 9, 2011, and “Economics in the Crisis” (Conscience of a Liberal Blog), New York Times, March 5, 2012. 21. R. Baldwin, “Global Supply Chains: Why They Emerged, Why They Matter, and Where They Are Going,” in Global Value Chains in a Changing World, ed. D. K. Elms and P. Low (Geneva: WTO, 2013), 13–60. 22. H. S. Shin, “Globalisation: Real and Financial,” BIS 87th Annual General Meeting, https://www.bis.org/speeches/sp170625b_slides.pdf. 23. M. Obstfeld and A. M. Taylor, “International Monetary Relations: Taking Finance Seriously” (CEPR Discussion Paper No. DP12079, June 2017), https://ssrn.com/abstract=2980858. 24.


EuroTragedy: A Drama in Nine Acts by Ashoka Mody

"Robert Solow", Andrei Shleifer, asset-backed security, availability heuristic, bank run, banking crisis, Basel III, Berlin Wall, book scanning, Bretton Woods, call centre, capital controls, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, credit crunch, Daniel Kahneman / Amos Tversky, debt deflation, Donald Trump, eurozone crisis, Fall of the Berlin Wall, financial intermediation, floating exchange rates, forward guidance, George Akerlof, German hyperinflation, global supply chain, global value chain, hiring and firing, Home mortgage interest deduction, income inequality, inflation targeting, Irish property bubble, Isaac Newton, job automation, Johann Wolfgang von Goethe, Johannes Kepler, Kenneth Rogoff, Kickstarter, liberal capitalism, light touch regulation, liquidity trap, loadsamoney, London Interbank Offered Rate, Long Term Capital Management, low-wage service sector, Mikhail Gorbachev, mittelstand, money market fund, moral hazard, mortgage tax deduction, neoliberal agenda, offshore financial centre, oil shock, open borders, pension reform, premature optimization, price stability, purchasing power parity, quantitative easing, rent-seeking, Republic of Letters, Robert Gordon, Robert Shiller, Robert Shiller, short selling, Silicon Valley, The Great Moderation, The Rise and Fall of American Growth, too big to fail, total factor productivity, trade liberalization, transaction costs, urban renewal, working-age population, Yogi Berra

Financial Times, December 9. Aubuchon, Craig P., and David C. Wheelock. 2010. “The Geographic Distribution and Characteristics of U.S. Bank Failures, 2007–​2010: Do Bank Failures Still Reflect Local Economic Conditions?” Federal Reserve Bank of St. Louis Review 92, no. 5: 395–​415. Auer, Raphael, Claudio Borio, and Andrew Filardo. 2017. “The Globalisation of Inflation: The Growing Importance of Global Value Chains.” BIS Working Papers 602, Basel, January. Auerbach, Alan J., and Yuriy Gorodnichenko. 2012. “Measuring the Output Responses to Fiscal Policy.” American Economic Journal: Economic Policy 4, no. 2: 1–​27. Austin, Tony. 1992. “Danes Voted No from Anxiety over National Identity.” Reuters News, June 3. Autor, David. 2014. “Skills, Education, and the Rise of Earnings Inequality among the ‘Other 99 Percent.’”