The Political Economy of Global Manufacturing, Business and Finance

This book is written as a tribute to Frederick Nixson’s extensive work on industrial development in the Global South, while seeking to actively engage with the latest arguments concerning development economics, together with changes in manufacturing and industrial policy that continue to shape the role of the Global South in the international economy, the impact of the increased concentration of global multinational corporations in that space, along with the rise of new financing tools and debt traps. The chapters pay homage to Fred’s broad view of the international development process and reflect his breadth of perception both theoretically and geographically. The book targets both the scholarly and policymaking audience. Foreword Preface Praise for The Political Economy of Global Manufacturing, Business and Finance Contents Notes on Contributors Acronyms List of Figures List of Tables Part I The Political Economy of Global Manufacturing, Business and Finance 1 Development Economics and the Political Economy of International Development 1.1 Introduction 1.2 The Underlying Intellectual Framework 1.3 Growth and Development 1.4 Industry, Trade and Development Economics 1.5 Statistics 1.6 Concluding Remarks References 2 The Future, Development Economics and Global Policy Actions 2.1 Introduction 2.2 Conceptualising Development: Economic Structures, Analytical Methods, and Policy Prescriptions 2.2.1 Concepts of Global Versus International Development 2.2.2 Analytical Praxis and the Framing of Development 2.2.3 Globalisation, Emerging Realities, and Policy Dilemmas of the Social Divide 2.3 Neoliberalism and the Circumstances of Developing Countries 2.3.1 Poverty, Inequalities, and the Human Condition 2.3.2 The Role of the State and Growth Constraints 2.3.3 The Market, ‘Free Trade’, and the Mercantile Society 2.3.4 Washington Consensus 2.4 Rethinking the Development Agenda: Political Economy and Structural Transformation 2.4.1 Theoretical Consensus and Development Challenges 2.4.2 Policy Responses and Development Strategies 2.5 Developing Countries in the Upcoming Decades—Issues for Consideration 2.5.1 Climate Change and Social Sustainability 2.5.2 Issues of Development Financing and Triangular Cooperation 2.5.3 Artificial Intelligence, Innovations, and the World of Work 2.5.4 Pandemics and Public Health 2.5.5 Population, Migration, and Demographic Dividends 2.5.6 Poverty, Human Rights, Social Inclusion, and Renewal of the Social Contract 2.5.7 Regional Integration, Trade, and Globalisation 2.6 Conclusion Notes References 3 Gender Equality and Inclusive Growth 3.1 Introduction 3.2 Growth as a Gendered Process 3.3 Harmful Forms of Inclusion 3.4 What Would Gender-Equitable Inclusive Growth Look Like? 3.5 Strategies for Gender-Equitable Recovery from the Covid-19 Pandemic 3.6 Conclusion References Part II Manufacturing Industry and International Development 4 The Future of Manufacturing Industry and Its Implications for Developing Countries 4.1 Introduction 4.2 Spread of Global Value Chains (GVCs) or Global Production Networks (GPNs) 4.3 New Technologies 4.4 Green Development 4.5 Conclusions Notes References 5 Lights-Out Manufacturing and Foreign Direct Investment Decline: Human Resource-Based Avenues for Technological Diffusion in Developing Countries 5.1 Introduction 5.2 Internationalisation of Production and TNCs 5.3 Rising Automation and Lights-Out Manufacturing 5.4 FDI and Economic Development 5.5 Human Resource-Based Avenues for Technological Diffusion and Catch-Up in Developing Countries 5.5.1 Establishing Public Institutions that Create Positive Externalities 5.5.2 Providing Incentives to the Private Sector to Benefit from Technology Spillovers and Create Positive Externalities 5.6 Concluding Remarks Notes References 6 National Cars and Product Champions: Ways Forward for Vietnam’s Automotive Industry? 6.1 Introduction 6.2 Early Development of the Vietnamese Automotive Industry6 in Relation to that of the ASEAN-4 6.3 Impacts of Vietnam’s Trade Liberalisation Under the ASEAN Economic Community 6.4 Product Champions 6.5 National Cars 6.6 Conclusions Notes References 7 Manufacturing Development in Bangladesh and Ghana: A Comparative Review of Growth Strategies 7.1 Introduction 7.2 Manufacturing Development in Bangladesh and Ghana: A Brief Survey 7.3 Strategies for Manufacturing Development: Bangladesh and Ghana 7.4 A Brief Analysis 7.5 Concluding Remarks Notes References Part III MNCs and International Development 8 Transnational Corporations and Globalisation: The Development of Development? 8.1 Introduction 8.2 From Transnational to Global Corporations 8.3 TNCs and the Global South 8.4 Global South TNCs: The Development of Development? 8.5 The Unevenness and Inequality of Development 8.6 The State: Developmental, Relatively Autonomous or Executive Committee of the Bourgeoisie 8.7 Industrial Policy: Linkage, Possibilities and a Return to Some Old Thinking 8.8 Conclusions Notes References 9 Knowledge Relevance and Emerging Country Multinational’s Knowledge Transfer Advantage 9.1 Introduction 9.2 DMNEs, EMNEs and the Changing ‘Rules of the Game’ for Global Competitiveness 9.3 The Distinctive Nature of EMNE’s Innovative Capabilities 9.3.1 Conceptual Underpinning of EMNE Capabilities 9.3.2 Cost Innovation: The Emblematic EMNE Innovation6 9.4 Knowledge Relevance and EMNE Knowledge Transfer Advantage 9.4.1 Knowledge Relevance 9.5 EMNE’s Knowledge Transfer Advantage in LDCs 9.6 Concluding Remarks Notes References 10 Supply Chains and Development: Does Vietnam Have to Worry About the ‘Middle-Income Trap’? 10.1 Introduction 10.2 The Classification of Countries’ Level of Development 10.3 What Are the Theoretical Explanations of the Middle-Income Trap? 10.4 Vietnam: A Success Story—So Far 10.5 Does Vietnam Need to Change Its Developmental Strategy? 10.6 Conclusion Notes References Part IV Finance and International Development 11 Financing Development Through PPPs: What Does This Mean for Inequalities 11.1 Introduction 11.2 Defining PPPs 11.3 Neoliberal Health Reforms in Latin America: An Overview 11.4 The Rise of Private Finance and PPPs in the Health Sector 11.5 Reviewing the Evidence of PPPs in Health 11.6 Higher Cost of PPPs 11.7 PPPS and Health Inequalities 11.8 PPP Governance and Accountability to Service Users 11.9 Health PPPs in Latin America: The Case of Peru 11.10 Conclusions Note References 12 Recent Developments with Personal Remittances to Less Developed Countries (LDCs) in the Context of Global Crises 12.1 Introduction 12.2 Stylised Facts About Ghanaian Migrants 12.3 Impact of Remittances on Household and National Development 12.4 Trends in Global Remittances Inflows During the Pandemic 12.5 Sustaining Private Inward Inflows Amid Global Crisis 12.6 Global or Continental Policies on Migration and Remittances 12.7 Conclusion References 13 Shifting Landscapes in Development Finance: The Cautionary Tale of a New Debt Trap 13.1 Introduction 13.2 A Shifting Development Finance Landscape 13.2.1 Accessing International Capital Markets 13.2.2 China’s Role as a New Lender 13.2.3 The Attractions of New Development Finance 13.3 Sri Lanka: A Cautionary Tale of EME Debt Distress 13.4 Tackling Debt in the New Financing Landscape 13.5 Conclusion Notes References 14 Overview and Concluding Remarks 14.1 Introduction 14.2 Manufacturing Development 14.3 Business Development 14.4 Financial Development 14.5 Overall Conclusion References Index