Lecture 7 (28 September) - Changing Fortunes of World Regions (Robert Kloosterman)..................2
Lecture 8 (3 October): Global Environmentalism and Governance (Joyeeta Gupta)..........................6
Lecture 9 (5 October)- Internatonal Governmental Organisatons in the 21st Century (Virginie
Mamadouh)......................................................................................................................................11
Lecture 10 (12 October)- Politcal and Cultural Inequality in the EU (Virginie Mamadouh)..............13
Lecture 11 (31 October) -Spaces of Excepton (Wouter van Gent)...................................................16
Lecture 12 (2 November)- Populaton Shrinkage and Regional Polarizaton (Myrte Hoekstra)........17
Seminar 3: The regional scale...........................................................................................................17
Lecture 13 (9 November)- Politcal Responses to Regional Inequalites (Wouter van Gent)............20
Lecture 14 (14 November)- (In)formality, urban planning and Infrastructure ( Hebe Verrest).........22
Lecture 15 (16 November)- Housing and Setlements (Hebe Verrest)..............................................29
Seminar 4 (21 November)- The Local and Individual Scale...............................................................33
Lecture 16 (23 November) -Environmental Injustce (Rivke Jafe)....................................................36
Lecture 17 (28 November)- Time-space Trajectories and Inequality (Willem Boterman).................38
Lecture 18 (30 November)-Intersectonality and Geography (Willem Boterman)............................41
Seminar 5 (5 December)-Complexity of Scale and Scalar Analysis....................................................41
Lecture 19 (7 December)-Citzenship, Precarity and Social Rights (Dennis Arnold)..........................56
,Lecture 7 (28 September) - Changing Fortunes of World Regions
(Robert Kloosterman)
Kloosterman, R.C., N. Beerepoot and B. Lambregts (2015), ‘Service-sector driven economic
development from a historical perspectve’. In: B. Lambregts, N. Beerepoot and Robert C.
Kloosterman (Eds.), The Local Impact of Globalizaton in South and Southeast Asia: Ofshore Business
Processes in Services Industries. Oxford/New York: Routledge: 17-28.
INTRODUCTION
Services have become increasingly digitsed, commodifed, and tradable due to advances in ICT. They
also are increasingly unbundled: carved up into separate operatons, which can, in principle, take
place in diferent locatons.
Are countries in the developing world, able to, more or less, skip the manufacturing phase and move
straight from an economy dominated by agriculture to one by service actvitese
The aim of this chapter is to put the service-led developmental trajectories into a broader historical
perspectve and, subsequently, identfy some of the key issues at stake.
A NEW PHASE IN GLOBAL CAPITALISM
Cognitive-culturall clpitllim : we have entered a new phase of capitalism, which can be
characterized by two key dimensions:
1 First, we can observe a fundamental shif in the producton system of advanced
economies towards cognitve-cultural actvites which depend on the input of highly
skilled labour (e.g. high-tech). Related to this shif is the move away from standardised
mass producton and the emergence of an ever more varied landscape of products
(goods and services) which do not just compete on price but also on features such as
aesthetc qualites and, for instance, (afer-sales) service. These kinds of producton
require more service actvites such as specialised knowledge, a growth of employment.
2 The second change concerns the changes in the global division of labour. The high-end
cognitvecultural actvites are certainly not limited to advanced economies such as in
North-America, – we can nowadays also fnd them in e.g. China and parts of Africa.
These change in capitalism was possible because of:
- The technological change in ICT, because now it is possible to store large amount of
informaton. The shif to cognitve-cultural economy with its emphasis on knowledge-
intensive actvites and dito products and its vertcally disintegrated producton processes
would not have been possible without ICT.
- Neoliberal policy change: a breakdown of all kinds of barriers that hampered internatonal
economic integraton.
THE INDUSTRIAL REVOLUTION
Britain’s Industrial Revoluton: To start with, there was a cluster of interrelated technological changes
with the substtuton of machines for human skill, the substtuton of inanimate for animate sources
of power (i.e. the steam engine), and the use of new, abundant raw materials such as coal.
The breakthrough of economic growth created a type of society with industrial capitalists and
a working class, but also changes the balance of power on a global scale. The global division between
core countries exportng manufacturing products and peripheral countries supplying raw materials,
this was conscious policy on behalf of the core countries (some of them colonial powers).
I porat Submituting Indumtralilimltion (ISI) = was aimed at building comprehensive domestc
supply chains as it was assumed that a broad and deep industrial base was needed to become
globally compettve. ISI consisted of high barriers to trade, subsidies and incentves to the domestc
industry, manipulaton of the exchange rate to provide cheap money to manufacturers, foreign
loans, and natonalisaton of much of the infrastructure. First the results were impressive, but then
countries faced problems in paying the loans to fund contnual capital investment, import and
machinery.
, Exporat Oraiented Indumtraillimltion (EOI) = The basis for this policy was a cheap, adaptable
and docile labour force to be able to compete on world markets (adapted by smaller Asian
countries).
SERVICES AS DISTINCTIVE PATH TO ECONOMIC DEVELOPMENT
The ofshoring of services is, compared to that in manufacturing, a rather recent phenomenon.
Initally, many took the view that services could only expand in so-called mature economies which
means afer manufacturing had fully developed. It seemed as if a positve correlaton existed
between GDP per capita and the relatve size of the service sector. It was also assumed that services
had to be close to the costumer, but because of digitalisaton, relocaton of services is possible.
Digitsaton fundamentally changed the picture by greatly enhancing the scope for
productvity growth in services. This does not hold for traditonal services such as restaurants, but for
the mecond-wlve meravicem such as computer communicaton.
Can service be a growth escalator in low income countriese
1. Services are the fastest growing component of world trade.
2. The average growth of service exports from developing countries has exceeded that of
advanced countries in last two decades.
3. Services contribute more to GDP growth than manufacturing in many developing countries.
4. Labour productvity growth in services in developing countries has not just accelerated but
also outstripped productvity growth in the industrial sector.
We can thus observe the actual expansion of the service sector in countries with not just
relatvely low levels of GDP, but which also have a relatvely small manufacturing sector. It
seems, then, that a partcular segment of the service sector – the second wave actvites – do
indeed ofer a distnct path to sustained economic growth for less-developed countries.
Counterargument is that low income countries lack high-skilled labour. BUT the average level of
educatonal qualifcatons is on the rise in low-income countries.
The so-called second wave services, then, do provide opportunites for less-developed
countries and they even ofer a perspectve of sustained growth of the sector itself. Not all less-
developed countries, however, are able to atract these services as they are dependent on certain
conditons:
- The presence of a labour pool of high-skilled workers who are profcient in a foreign language
(mostly English).
- An efcient and reliable ICT infrastructure to support the export-oriented services.
- An openness towards the world and other cultures and also to trans-natonal corporatons.
- A wider insttutonal context which is seen as fostering and protectng their businesses, which
refrains from excessive taxaton and regulaton, which is also capable of maintaining and
improving the infrastructure, and which can guarantee safe spaces for the workers (many of
them are women).
In countries, in other words, which can provide a skilled workforce, a suitable infrastructure
and which are open, more tolerant, and more acquainted with foreign contacts.
CONCLUSION
From the 1980s onward, these export-oriented strategies became the model for economic
development. The phase of the 2nd unbundling had set in, helped by advances in ICT and successive
rounds of trade liberalisaton, trans-natonal corporatons created complex global producton
networks by seeking the most efcient locatons for the components of their supply chains. Typically,
specifc areas with low levels of regulaton, export processing zones, were designated to
accommodate these actvites.
To tlke ldvlntlge of the graowth potentill of the meravice mectora, lctive mtlte interavention im
needed to i praove the educltionll mymte , the infralmtraucturae, lnd fomtera entraepraeneuramhip. This is
very much in line with a string of successful cases of post-war economic developments – from
Singapore to China. The 2nd unbundling is ofen framed within a neoliberal discourse of
liberalisaton, deregulaton and privatsaton, but this tends to overlook the crucial role of the state.
, Not every developing country has the governance capacity to deal with this issues and the service
sector is evidently no one-size fts all path of economic development. Even countries which are
successful in accommodatng an expanding service sector, it may stll make sense to broaden the
portfolio and look for opportunites to join supply chains in specifc agricultural and manufacturing
actvites. The home-grown business service sector could play a crucial role in that as well.
Werner, M. (2016). Global producton networks and uneven development: Exploring geographies o
devaluaton, disinvestment, and exclusion. Geography Compass, 10(11), 457-469.
ABSTRACT This paper examines global producton networks through the lens of uneven
development. Although originally concerned with asymmetries in the global economy, in the 1990s,
global producton network studies shifed decidedly towards a focus upon realizing the mutual
benefts of engagement between multnatonals, their suppliers, and the regions where the later
were located. Recent trends in supply chain restructuring, thrown into sharp relief by the 2008
fnancial crisis, have spurred more atenton to the downsides of partcipaton in global producton
networks, framed as empirical outcomes. Here, I explore this literature through the lens of three
inter-related processes of uneven development: strategies to defer devaluaton, regional
disinvestment, and consttutve exclusion. Viewed from this perspectve, the global producton
network can serve as a powerful heuristc device to grasp emerging forms of territorial and social
unevenness in the global economy.
INTRODUCTION
Globll praoduction networakm = The arrangements of frms, insttutons, and workers producing goods
and services across multple locatons.
Uneven develop ent = can be understood as the relatonship between forms of inclusion in global
producton networks and long-standing and emerging forms of territorial and social unevenness in
the global economy. In this paper, I examine this relatonship through three inter-related processes
informed by Marxist politcal economy and feminist perspectves:
1. The set of frm-level strategies mobilized by capital and labor to negotate inclusion in a given
producton network, or what is discussed as “upgrading” and “downgrading”.
2. Regional disinvestment at the subnatonal scale.
3. Livelihoods and regional economies that relate to global producton networks primarily
through their consttutve exclusion from them.
FROM UNEVEN DEVELOPMENT TO UPRGRADING AND STRATEGIC COUPLING
Econo ic upgralding= which describes the possibility for suppliers to obtain beter returns by
changing what they do or how they do it. Governance determines whether and how upgrading may
occur. Upgrading, then, describes the process whereby frms can move to economic niches with
higher barriers to entry through organizatonal learning facilitated by networks, thus reaping returns
from scarce assets.
Thus, both the sociology and the geography frameworks tend to reproduce an “inclusionary bias”
through their focus on those frms and regions that leverage their partcipaton in global producton
networks into accessing higher value niches in the producton structure. As a result, we know
comparatvely litle about how strategic coupling and upgrading relate to processes of devaluaton,
disinvestment, and exclusion that are part and parcel of the formaton and restructuring of global
producton and the remaking of uneven development.
POST-CRISIS SUPPLY CHAIN RESTRUCTURING AND “DARK SIDES” OF NETWORK INCLUSION
Understanding the relatonship between processes of uneven development and global producton
network (re)formaton has taken on new urgency. With the implementaton of new global trade
rules, the emergence of China and India as major partcipants in global producton networks, and the
limits to consumer demand in the global North, clearly in evidence following the 2008 fnancial crisis,
scholars have observed a large scale and complex process of restructuring.
Vllue chlin develop ent = This feld ofers a set of tools and concepts to policymakers interested in
atractng and leveraging relatonships with multnatonal corporatons for “market development”.