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The Enclave Economy : Foreign Investment and Sustainable Development in Mexico's Silicon Valley / K.P. Gallagher, L. Zarsky.
... Estos cambios en la economía política internacional (la creciente concentración e integración de redes globales por parte del capital monopolista, el surgimiento de una nueva geografía de la innovación, así como la creación de maquiladoras científicas) están estrechamente relacionadas con las siguientes trayectorias en el capitalismo contemporáneo (Foster et al., 2011a; Gallagher y Zarsky, 2007 ): * La financiarización, que se refiere al ascenso y predominio del capital financiero sobre otras fracciones del capital (Bello, 2005: 101). El capital financiero empieza dicho ascenso a fines de la década de los sesenta a raíz de una crisis de sobreproducción, cuando los capitales alemanes y japoneses consiguieron recuperarse de la devastación provocada por la Segunda Guerra Mundial y empezaron a competir con el capital estadounidense en los mercados mundiales (Brenner, 2002). ...
... Estos cambios en la economía política internacional (la creciente concentración e integración de redes globales por parte del capital monopolista, el surgimiento de una nueva geografía de la innovación, así como la creación de maquiladoras científicas) están estrechamente relacionadas con las siguientes trayectorias en el capitalismo contemporáneo (Foster et al., 2011a; Gallagher y Zarsky, 2007 ): La financiarización, que se refiere al ascenso y predominio del capital financiero sobre otras fracciones del capital (Bello, 2005: 101). El capital financiero empieza dicho ascenso a fines de la década de los sesenta a raíz de una crisis de sobreproducción, cuando los capitales alemanes y japoneses consiguieron recuperarse de la devastación provocada por la Segunda Guerra Mundial y empezaron a competir con el capital estadounidense en los mercados mundiales (Brenner, 2002). ...
Este artículo analiza el papel fundamental de los diferenciales salariales en la estrategia de reestructuración productiva, comercial, financiera y de servicios impulsada por las grandes corporaciones multinacionales bajo la égida de la globalización neoliberal. Nos interesa ante todo poner de relieve la manera como dichos diferenciales, a través de una relocalización y redistribución geográfica del proceso productivo, se han convertido en una fácil y, aparentemente, fuente inagotable de ganancias extraordinarias. Ello ha dado lugar a la profundización del desarrollo desigual en el horizonte Centro-Periferia y a la configuración de una nueva división internacional del trabajo caracterizada por la exportación directa e indirecta de la mercancía más preciada para el capital: la fuerza de trabajo.
... Because these two partial theories work against each other, the (potentially large) FDI-induced scale/composition effects predicted by either theory are generally smaller in practice (Antweiler et al. 2001;Elliott 2001, 2005). Finally, under the mechanism called pollution halo hypothesis, multinationals engaging in FDIs and applying universal environmental standards tend to transfer environment-friendly technology and management practices to their partners in the host country (Birdsall and Wheeler 1993;Zarsky 1999;Gallagher and Zarsky 2007). This allows and promotes the upgrade of local environmental standards, thus improving environmental quality. ...
... Prakash and Potoski (2006) show that the FDIs in 98 countries between 1996 and 2002 were associated with more ambitious ISO 14001 standards in the host country when the foreign firm originated from a country with more stringent environmental regulations. According to Gallagher and Zarsky (2007), FDIs can potentially contribute to a transfer of (i) "clean" technologies (more efficient processes), (ii) "green" technologies (equipment for environmental damage mitigation) and (iii) best environmental management practices (transferred to subsidiaries and / or disseminated to competitors and suppliers). Johnstone (2007) finds that large firms are more sensitive to environmental standards and that MNCs are generally large firms. ...
This paper seeks to investigate the impact of foreign direct investments (FDIs) on industrial pollution (CO2,SO2,NOx and BOD emissions) on a large sample of highly heterogeneous countries. By using panel data on manufacturing FDIs from France, Germany, Sweden, and the United Kingdom between 1995 and 2008, and by developing an empirical model with “first” and “second order” interaction terms, we investigate the existence and the conditionality of the most controversial FDI-induced effects on industrial emissions, i.e., Pollution Haven, Factor Endowments and Pollution Halo hypotheses. The paper has three main findings: (1) the central hypotheses linking pollution to FDI are found to act simultaneously, with opposing effects; (2) FDIs are associated with pollution reduction, i.e., predominating pollution halo induced effect, in countries with low to average capital-to-labour ratio but not too lax environmental regulation; (3) FDIs are found to increase pollution, i.e., prevailing pollution haven and/or factor endowments induced effects, in countries with average capital endowments and lax environmental regulations, as well as in all the capital abundant countries, though with a smaller magnitude in countries having strict environmental regulations and/or a high-skilled labour force. Some specific and interesting findings are discussed regarding different FDI-origin countries and FDI-host country groups.
... Their case of lower forward participation (the use of domestic intermediates in exports) in GVCs may be among the relevant explanations of the recent deindustrialisation of the LA countries. Consistent with this, Gallagher and Zarsky (2007), for instance, finds that higher manufacturing foreign direct investments (FDI) inflows [and thus higher FVA] failed to increase the domestic production capabilities of Mexico. African countries linked mainly as 'suppliers of raw materials' (UNECA, 2015, p. 173) leading to very limited productivity gains. ...
We examine patterns and globalisation-related causes of premature deindustrialisation (PD) in recent decades, using a large panel of advanced, emerging and developing economies (AE, EME and DE). The results verify the existence of PD in EME and DE, except East Asian countries. African countries have been worst affected by PD. Globalisation-related determinants of PD vary across country groups. While trade openness leads to deindustrialisation in DE; it enhances ‘dependent’ industrialisation in Latin American countries and the ‘factory economies’ of East Asia, which have stronger linkages to global value chains. Financial openness fosters industrialisation in severely finance-constrained economies, whereas it brings about deindustrialisation in financially stronger ones. It is our contention that development possibilities can be expanded by aiming at more intense linkages to global value chains, but proactive industrial policies at the levels of EME and DE are required to achieve such expansion.
... Since the sustainability concept intertwines triple-bottom-line factors, including environment, society, and economy, the main features of SBM are more multifaceted rather than the conventional business models. Gallagher & Zarsky (2007) state that the internationalization process is a bridge in creating a favorable environment that can support environmentally friendly business development in its economic and social dimensions. Internationalization brings modern technology into the production process and best environmental practices to develop innovation-oriented to sustainability and as a source of sustainable development for SMEs. ...
Studies on the internationalization process of SMEs have fascinated the attention of researchers around the world. The dynamics in the internationalization process of SMEs have attracted researchers' interest in analyzing the behavior and the factors that influence it with various theoretical approaches to contribute to the development of international business studies. This paper intended to provide an overview of the various theories applied in investigating SMEs' internationalization process. The review was conducted on 100 journal articles between 2013 and 2020. The investigation results show that 17 different theories have been identified in the internationalization process of SMEs and we classified them into five streams. Based on our findings, from those 17 theories, the five primary published theories in order are (1) Uppsala theory, (2) Network theory, (3) Resource-based theory, (4) international entrepreneurship theory, and (5) institutional theory. This study also provides suggestions and implications for future research. Keywords— Internationalization process; Internationalization SME theory; Small and Medium Enterprises (SMEs)
... For the moment, however, this project is still under study, and is a matter of some political debate (Murillo Zamora 2017). Although Costa Rican authorities recognize China's financial capacity and its contribution to economic development of the country 46 , Chinese conditions requiring to adapt the national legal framework and the risks associated with the creation of Chinese "enclave economies"(Gallagher et Zarsky 2007) meet with resistance. 3.2.2. ...
The increase in economic and trade exchanges with Central American countries goes along with the imposition of China’s economic and political standards of international trade policy. This observation raises questions about the strategic challenge posed by China’s normative influence into regional level and its different effects on national arenas. Impacts derived from China’s relevance as trading partner, provider of foreign direct investment, and international lender for infrastructure projects are visible not only throughout the increasing of strategic issues in Central America, but are also increasingly making room for specific domestic divisions. This paper tries to identify national impacts and responses to the growing Chinese presence in two Central American countries: Costa Rica and Nicaragua. In analysing the diverse circumstances generated by Chinese economic presence in these two different cases, I hope to contribute to studies on the normative power of China’s trade policy to Central America.
... The issues raised by the experts regarding the legal, institutional, cultural, and political factors constituting opportunities or obstacles to successful environmental policy in Mexico, are well documented (Eakin and Lemos 2006, Mumme 2007, Challenger and Dirzo 2009, Cotler and Caire 2009, Monsiváis Carrillo 2009, Williams 2009, Castañeda 2011, Hurtado 2011, OECD 2013. So too are the national and international contexts (Costanza et al. 1998, Keck and Sikkink 1998, Gallagher and Zarsky 2007, Laurila-Pant et al. 2015. Similar factors and contexts affect most nations, differing more by degree than by type (Liverman and Vilas 2006, Brondizio et al. 2009, Edmonds 2011. Figure 5 schematically synthesizes the policy process for Mexico's environment sector, based on the inductive qualitative analysis. ...
The urgent need to revert the ecological and social equity crises of the current development model and realize the potential of sustainable development has led several disciplines to converge on the socioecosystem concept as the most appropriate theoretical framework for research and public policy. The socioecosystem approach recognizes that social systems are integrated with natural systems and seeks to adaptively comanage socioecosystem coevolution for the sustainable development of both systems. We hypothesize that incorporation of this approach into environmental policy in Mexico could help resolve many of the problems that currently undermine policy effectiveness. To find out to what extent policy professionals might concur with this hypothesis, and what the opportunities and obstacles to implementing socioecosystem-based policy might be, research was conducted to elicit the expert opinion of officials responsible for formulating and implementing environmental policy in Mexico. The principle opportunities consist in the fact that experts intuitively understand the socioecosystem approach, and that most perceive advantages in adopting it because its policy attributes can potentially help to resolve many of the factors they identify as limiting the success of current environmental policies. Obstacles to its adoption include institutional barriers and the vested interests that benefit from the status quo.
... Although the prospect of negotiating an FTA with the USA had once been anathema to the country, by 1994 Mexico had negotiated its way into NAFTA. Under NAFTA, the government set its sights on the manufacturing sector-now exposed to much higher levels of import competition and streamlined state supportas the anchor for growth and the overall modernization of the economy ( Gallagher & Zarsky, 2007, p. 48). Mexico's expectation was that it could count on FDI and the heightened competition from US imports to force a restructuring of the domestic industrial sector ( Wise, 2007). ...
Despite the emergence of a rich literature on the rise of China in Latin America (LAC) since 2000, we are still grappling with this phenomenon. In this article we seek to theorize this expanding South–South relationship from two vantage points. First, from the perspective of China, we argue that, by necessity, the PRC has had to internationalize its development strategy in order to compensate for its serious natural resource deficit, feed the world's largest domestic population, and fuel the soon-to-be largest economy in the world. LAC has been just one slice of China's ‘go out’ strategy. Our second perspective probes the effect of China's entry into the region. Through the lens of development economics, we identify three separate political economy scenarios that have been accentuated within those countries that have the strongest economic ties with China. We rely on measures of institutional performance and macro-economic trends to illustrate the variable effects of China on LAC.
... In fact, this trend can also be considered as an advanced stage of development of the global networks of monopolistic capital, insofar as the New International Division of Labor rises in the added-value chain and incorporates R+D, and monopolistic capital appropriates the productivity and knowledge of the highly-qualified workforce of peripheral and emerging countries. These changes in the international political economy (the growing concentration and integration of global networks through monopolistic capital, the rise of a new geography of innovation, as well as the creation of a so-called scientific maquiladora) are closely tied to the following trajectories of contemporary capitalism (Foster et al., 2011a; Gallagher and Zarsky, 2007): States capital in global markets (Brenner, 2002). In response to the dearth of profitable investment in production, capital began to move towards financial speculation. ...
This paper analyzes the fundamental role of wage differences in the efforts undertaken by major multinational corporations to restructure their productive, trade, financial, and service strategies under the aegis of neoliberal globalization. We are especially interested in underscoring the way in which these disparities, by means of geographic relocation and the redistribution of productive processes, have become an easily accessible and apparently inexhaustible source of extraordinary earnings. This situation has given rise to the entrenchment of unequal development between central and peripheral countries and a new international division of labor characterized by the direct and indirect exportation of the most valuable commodity for capital: the labor force.
... Large production units and mass employment are substituted by highly specialised networks that operate and source production and knowledge, often supra-regionally or even globally—creating a vicious cycle of increasing competition, increasing pressure to cut costs and lower wages, and, with extensive concessions (in taxes, etc.), luring foreign investors who often bring few fruits to the specific location. As a result, enclave economies and de-linkaging effects emerge (Gallagher and Zarsky 2007). At the same time, the ICT-led paradigm also enables the creation of niche production with the potential to become supra-regional or even global (for instance, hospitals specialising in a specific type of heart surgery) (Prahalad 2006). ...
‘What distinguishes the small nations from the large’, writes Milan Kundera (2007, p. 28), ‘is not the quantitative criterion of the number of their inhabitants; it is something deeper. For small nations, existence is not self-evident certainty but always a question, a wager, a risk; they are on the defensive against History, that force which is bigger than they, which does not take them into account, which does not even notice them.’ Kundera expresses the rational and reasonable fear felt by small nations and states of ‘going under’ and succumbing to history; that fear also explains why there is a specific research interest in small states and their unique challenges.
... The capital, managerial, technological and know-how advantages of FDI firms enable them to take over the market of domestic firms, forcing domestic firms into less efficient scales and less productivity activities. Without appropriate policies, FDI could result in the so-called 'enclave economy' the benefits of which were confined to an international sector not connected to the wider economy (Warr 1989;Gallagher and Zarsky 2007). ...
Using technological capabilities as embodied in machinery, organization, processes and products, this study examines the links with host-site institutions and regional production linkages. The statistical results show no relationship between these variables. In-depth interviews complement the quantitative findings. Overall, the result shows that the government’s localization efforts failed because too many joint-venture assemblers were approved in the 1990s when the domestic market was small. The lack of economies of scale also affected the growth of national suppliers. Hence, national producers are confined to low value added segments and lack the quality to compete in export markets.
... Se trata, en el fondo, como lo destaca Anna Lee Saxenian (1996 y 2002), de un nuevo paradigma , que se aparta de los viejos modelos «cerrados» de investigación y desarrollo incrustados en las grandes corporaciones y que abre el camino a una nueva cultura de la innovación basada en la flexibilidad, descentralización e incorporación, bajo diferentes modalidades, de nuevos y cada vez más numerosos jugadores que interactúan en espacios locales y transnacionales. En este último ámbito, las plataformas de innovación que se establecen en los países periféricos tienden a operar como extensiones de las plataformas instauradas en los países centrales, aprovechando ventajas salariales, tributarias y de otro tipo, lo que les confiere el carácter de maquiladoras científicas (Gallengher y Zarsky, 2007). El desarrollo de nuevas formas de control de las agendas de investigación (mediante capital de riesgo, asociaciones y subcontrataciones, entre otros) y de apropiación de los productos del trabajo científico (vía adquisición de patentes) por las grandes corporaciones multinacionales, a través del llamado strategic investment (Burgesmani, Christensen y Wheelwright, 2009). ...
RESUMEN: Bajo la égida neoliberal se genera una profunda reestructuración de los sistemas de innovación, con epicentro en Estados Unidos, que agudiza y acentúa las relaciones de intercambio desigual en el horizonte Norte-Sur. La exportación de fuerza de trabajo y, en particular, la exportación de fuerza de trabajo altamente calificada proveniente de los países periféricos, configura un nuevo peldaño en la división internacional del trabajo. El propósito de este trabajo es contribuir al análi-sis de esta problemática, develando los mecanismos a través de los cuales las grandes corporaciones multinacionales han logrado incrementar ostensiblemente sus ganancias, mediante la incorporación —directa o indirecta— de una masa creciente de cien tíficos y tecnólogos de la periferia. Esta trama, que se ilustra a partir del caso mexicano, revela no sólo la emergencia de nuevos mecanismos para abaratar costos y transferir riesgos y responsabilidades, sino la apertura de canales para avanzar hacia una cre-ciente mercantilización y apropiación privada de bienes comunes intangibles.
... Se trata, en el fondo, como lo destaca Anna Lee Saxenian (1996 y 2002), de un nuevo paradigma , que se aparta de los viejos modelos «cerrados» de investigación y desarrollo incrustados en las grandes corporaciones y que abre el camino a una nueva cultura de la innovación basada en la flexibilidad, descentralización e incorporación, bajo diferentes modalidades, de nuevos y cada vez más numerosos jugadores que interactúan en espacios locales y transnacionales. En este último ámbito, las plataformas de innovación que se establecen en los países periféricos tienden a operar como extensiones de las plataformas instauradas en los países centrales, aprovechando ventajas salariales, tributarias y de otro tipo, lo que les confiere el carácter de maquiladoras científicas (Gallengher y Zarsky, 2007). El desarrollo de nuevas formas de control de las agendas de investigación (mediante capital de riesgo, asociaciones y subcontrataciones, entre otros) y de apropiación de los productos del trabajo científico (vía adquisición de patentes) por las grandes corporaciones multinacionales, a través del llamado strategic investment (Burgesmani, Christensen y Wheelwright, 2009). ...
RESUMEN: Bajo la égida neoliberal se genera una profunda reestructuración de los sistemas de innovación, con epicentro en Estados Unidos, que agudiza y acentúa las relaciones de intercambio desigual en el horizonte Norte-Sur. La exportación de fuerza de trabajo y, en particular, la exportación de fuerza de trabajo altamente calificada proveniente de los países periféricos, configura un nuevo peldaño en la división internacional del trabajo. El propósito de este trabajo es contribuir al análi-sis de esta problemática, develando los mecanismos a través de los cuales las grandes corporaciones multinacionales han logrado incrementar ostensiblemente sus ganancias, mediante la incorporación —directa o indirecta— de una masa creciente de cien tíficos y tecnólogos de la periferia. Esta trama, que se ilustra a partir del caso mexicano, revela no sólo la emergencia de nuevos mecanismos para abaratar costos y transferir riesgos y responsabilidades, sino la apertura de canales para avanzar hacia una cre-ciente mercantilización y apropiación privada de bienes comunes intangibles.
... Estos cambios en la economía política internacional (la creciente concentración e integración de redes globales por parte del capital monopolista, el surgimiento de una nueva geografía de la innovación, así como la creación de maquiladoras científicas) están estrechamente relacionadas con las siguientes trayectorias en el capitalismo contemporáneo (Foster et al., 2011a; Gallagher y Zarsky, 2007 ): * La financiarización, que se refiere al ascenso y predominio del capital financiero sobre otras fracciones del capital (Bello, 2005: 101). El capital financiero empieza dicho ascenso a fines de la década de los sesenta a raíz de una crisis de sobreproducción, cuando los capitales alemanes y japoneses consiguieron recuperarse de la devastación provocada por la Segunda Guerra Mundial y empezaron a competir con el capital estadounidense en los mercados mundiales (Brenner, 2002). ...
Es imposible desvincular la cuestión de la migración y el trabajo en la actualidad de una correcta comprensión de la naturaleza del capitalismo contemporáneo, es decir, de la globalización neoliberal. Una de las principales características de la nueva arquitectura global, poten-ciada aún más por el desencadenamiento de una de las crisis globales más abrumadoras desde la Gran Depresión, es el ataque contra el trabajo y contra las condiciones de vida de la mayoría de la clase trabajadora global y, en particular, de la fuerza laboral migrante, que es uno de los segmentos más vulnerables de dicha clase. En este artículo se analizarán algunos de los aspectos clave del sistema en el que se halla incrustada la migración contemporánea, con especial énfasis en el proceso de segmentación y la creciente precariedad (precarización) de los mercados labora-les en todo el mundo.
... Multinational companies (MNCs) have long contributed to both the growth and alleviation of poverty in less developed countries (Lodge and Wilson, 2006). By doing so, they objectively increase both revenues and wealth and better the situation of the poor, but also inequalities in less developed countries (see the work on enclave economy by Gallagher and Zarsky, 2007). At the same time, MNCs put routine producers of all countries in competition, thereby decreasing revenues and increasing inequalities (wealth distribution) in developed countries (Reich, 1991). ...
Organization scholars interested in cultural processes, such as identification and categorization, have been deeply influenced by Michèle Lamont's work. Lamont, Beljean and Clair's new essay (LBC) on 'cultural processes and causal pathways to inequality' provides yet another important contribution to this body of work, with a strong statement that we all share: cultural processes can contribute to the production and reproduction of inequality and are eminently performative. In this comment, we elaborate on how organizations may moderate cultural processes surrounding equality and examine a set of boundary conditions to the relation between cultural processes and inequality.
... Bajo el esquema que se ha construido el modelo, sin embargo, dicho cambio por inversiones en K se internaliza: la fuerza laboral ya tiene una escolaridad y especialización dadas. En una nación imitadora, los flujos de capital son internos y externos, y divisibles, puesto que existen registros de los flujos de inversión extranjera directa (IED), cuyo impacto es considerable, especialmente en las zonas del norte de México (Gallagher y Zarsky, 2007;Feenstra y Hanson, 1995). , como se les ha nombrado antes también) se tome como un flujo fijo. ...
El artículo evalúa el impacto del trabajo calificado en la productividad y retornos del trabajo a nivel de subsectores industriales de las zonas urbanas más pobladas del norte para el periodo 2001-2009. Se observó que el porcentaje de trabajadores con escolaridad alta, que labora en los 53 subsectores considerados en el estudio, creció de 9.69 a 14.34 por ciento. Las estima- ciones de los modelos de panel fijos, aleatorios y mixtos sugieren que los retornos a escala son crecientes siempre y cuando se tenga la presencia de flujos de capital positivos e inversión extranjera directa. También se destaca que existe una importante variabilidad en los resultados, a nivel de ciudad, aunque ésta deriva más de las características de la actividad económica que de la localización de las ciudades.
... Altenburg y Meyer-Stamer (1999; pp. 1703-1704) describen el fenómeno del cluster automotriz de la región Sureste de Coahuila como un ejemplo típico de agrupación de empresas transnacionales, que también califica como " economía de enclave " (véase Gallagher & Zarsky, 2007). Para muchas empresas locales las mejores oportunidades para entrar en cadena de producción de automóviles se limita a la búsqueda de nichos de aquellos productos con menor valor agregado, como por ejemplo la producción de materiales de embalaje, moldes manuales u otras clases de trabajo artesanal, intensivo en mano de obra. ...
La buena actuación económica de México en los primeros años después de la firma del tratado de Libre Comercio de América del Norte (TLCAN) con los Estados Unidos y Canadá ha generado mucho interés como ejemplo para los demás países de América Latina en su transición a una economía dirigida por las fuerzas del libre mercado. Sin embargo, también hay evidencia de una desigualdad creciente entre distintas regiones, sectores económicos y grupos sociales, dependiendo de condiciones específicas y costumbres locales. Son necesarios estudios detallados para entender por qué en algunos contextos los resultados son exitosos y en otros no. El objeto de estudio es la dinámica de desarrollo del estado de Coahuila, situado en el noreste de México. En particular en los primeros años del TLCAN, Coahuila se convirtió en una de las entidades más exitosas de México en cuanto a la actividad exportadora, principalmente a consecuencia de inversiones sustanciales en la industria automotriz y la industria del vestido. Aunque estas nuevas inversiones contribuyeron fuertemente al crecimiento del Producto Interno Bruto (PIB), se propone una evaluación más crítica y profunda en cuanto a los repartos regionales y sociales del crecimiento económico, así como a la sustentabilidad del modelo dominante de desarrollo.
... if the third-party audit is poorly performed, weak, or fraudulent, then an aura of illegitimacy may be present. Mexican environmental enforcement in general is weak, but may be effective in periods of exceptional government emphasis such as the early NaFta period (Gallagher and Zarsky 2007;husted 2005). Nevertheless, inspection is a possibility for those plants that do not participate in the clean industry Program. ...
To evaluate global and domestic corporations on their sustainability engagement, numerous metrics have been developed at the national and international levels.
In this paper, we assess whether the largest 448 foreign and local firms operating in a particular country engage in local sustainability initiatives (i.e., Mexico’s Clean Industry Program). The paper also assesses the degree of sustainability reporting (transparency towards sustainability) by the 267 local firms.
Using an Institutional Theory rationale, we find that type of industry (dirty vs. clean), regional home, and engagement in global sustainability initiatives—i.e., The UNGC—best explain the firm’s decision to follow local sustainability initiatives.
We find that the type of industry and affiliation to a national sustainability program are highly related to transparent sustainability reporting for large Mexican firms.
... Most important, local procurement builds linkages to and strengthens local economic sectors, promoting sustainable development. Without local supply linkages, foreign direct investment, including in extractive industries, creates enclave economies (Gallagher & Zarsky, 2007). According to the AMRs, Goldcorp purchases about 70% of its requisite materials, equipment and supplies for the Marlin mine within Guatemala. ...
Abstract
This article develops a framework to evaluate net benefits from mining and utilizes it to assess the Marlin mine in Guatemala. The framework integrates “weak” and “strong” sustainability principles. Under weak sustainability, a net gain in human welfare can substitute for the loss of nonrenewable resources. Under strong sustainability, nature’s life-support systems are not substitutable. We define “net benefits” as the joint generation of net gains to human welfare, defined as local acceptance and high economic benefits, and low risks to the resilience of environmental life-support systems, especially water, evidenced by best practice management standards. We find little evidence that the Marlin mine meets either weak or strong sustainability criteria: there is strong local resistance to the mine and economic benefits are low, while environmental risk is high, especially in terms of potential long-term contamination of life-supporting ground and surface water.
... if the third-party audit is poorly performed, weak, or fraudulent, then an aura of illegitimacy may be present. Mexican environmental enforcement in general is weak, but may be effective in periods of exceptional government emphasis such as the early NaFta period (Gallagher and Zarsky 2007; husted 2005 ). Nevertheless, inspection is a possibility for those plants that do not participate in the clean industry Program. ...
To evaluate global and domestic corporations on their sustainability engagement, numerous metrics have been developed at the national and international levels. In this paper, we assess whether the largest 448 foreign and local firms operating in a particular country engage in local sustainability initiatives (i.e., Mexico's Clean Industry Program).The paper also assesses the degree of sustainability reporting (transparency towards sustainability) by the 267 local firms. Using an Institutional Theory rationale, we find that type of industry (dirty vs. clean), regional home, and engagement in global sustainability initiatives—i.e., The UNGC— best explain the firm's decision to follow local sustainability initiatives. We find that the type of industry and affiliation to a national sustainability program are highly related to transparent sustainability reporting for large Mexican firms.
This article delves into the emergence of the online gambling industry in the Philippines, particularly in Metro Manila. Following the legalization of this industry by former president Rodrigo Duterte in 2016, it has become a popular destination for Chinese migrants seeking work opportunities in the country. The article analyzes the various factors that have contributed to the growth of the online gambling industry, particularly in urban spaces such as Metro Manila. Through the use of migration infrastructure, the article examines how the industry has shaped the city’s industrial enclave. The research includes secondary data from China, the Philippines, and Taiwan, and fieldwork conducted between 2018 and 2020 in the Philippines to gain a better understanding of the changing landscape. The study concludes that the online gambling industry is interconnected with technology, institutions, and actors, which have created an industrial enclave in Metro Manila. Therefore, the legalization of the online gambling industry in 2016 was not the sole factor that contributed to the industry's development; the infrastructure and migration infrastructure in Metro Manila also played a crucial role in its growth.
This chapter summarizes the evolution of Latin America’s integration into the world economy since the 1980s from a structuralist perspective. It describes the different moments of the region’s insertion: the lost decade and the implementation of the liberalization agenda during the eighties, the nineties and the export turn of the region together with the wave of trade agreements with core countries and the impact of the commodity boom on the region’s productive structure. It concludes that the region is facing a growth regime that is based on an extractive and a low-value added export basket, a deep deindustrialization and restricted policy space for the states to implement pro-developmental policies.
As John R. Commons understood, the role of the firm in providing employment and income distribution is a form of public power (Munkirs and Knoedler 1987). This public power of firms is supported by the laws of the state, which protect private property and enforce market transactions. The Global Production Network (GPN) is a new form of the firm, influenced by information technology to lower “transaction costs” (Coase 1937), as well as international trade regimes, such as the Washington Consensus to improve the ease of world trade and investment. The GPN is globe-scanning, yet private and able to shape the economies and policies of countries. Under the banner of branded products, the lead firm in a supply chain exercises considerable power over subsidiaries, contractors, workers, communities, and countries. By influencing trade relations, GPNs also influence international finance, foreign currency reserves and exchange rates, as well as trade deficits and “race to the bottom” of taxes and environmental protection. Drawing on interdisciplinary research, this topic benefits from an alliance of sociology, business, history, law, and international as well as institutional economics in the AFEE tradition. I draw on the work of leading scholars in the field (Antras 2016; Baldwin 2016; Gereffi 2013; Milberg and Winkler 2013) and analyze the implications for the world trade system, as well as the ongoing political resistance to globalization. These GPNs are no longer “of” their country of origin (Tyson vs. Reich).
Based on a discussion of the structural transformation of the Mexican economy, this
paper investigates the impact of financialization on agriculture’s role in capitalist
development. It argues that the peripheral financialized economy is a rural–urban
economy. On the one hand, agriculture and industry are bifurcated into a growing
export sector and a stagnating local economy, and there are no functional
‘developmental’ links between capitalist agriculture and industry. On the other hand,
the economic structures have resulted in the consolidation of a huge mass of rural–
urban ‘classes of labour’. Capitalist agriculture and industry are linked through and
dependent on cheap labour sustaining the export economy. I argue that the current
economic formation is not due to ‘urban bias’, ‘rural bias’ or any misallocation of
resources among economic sectors. Rather, it can be explained in relation to ‘finance
bias’: the taking over of debt relations as the key driving force of economic activities.
A major contradiction in peripheral finance capitalism arises from the financing of
cheap labour through debt. This is likely to result in new financial crisis, when the
contradictions between increasing levels of (private and public) debt, a stagnating
domestic economy, and below-subsistence level wages become too large.
This article examines the recent trajectory of subcontracting processes and how they are accompanied by the geographical dislocation of production and services, as well as the consolidation production and value chains. It will be shown that these processes follow the intrinsic capitalist logic of achieving greater profitability - which includes lower direct and indirect costs, which from the firḿs perspective include unions and taxes. Therefore, a necessary condition for the expansion of outsourcing processes is institutional change and public policy. In addition, recent productive and organizational changes are accentuated by several important changes and advances in technology, especially in transportation, information and communications technology. Thus, it is possible to show changes and continuities on the specific forms in which outsourcing exists alongside capitalism and we are able to identify the manifold ways by which capitalist firms avoid the direct contract of workers, in the context of a new international division of labor.
We review the literature that investigates the relationship between foreign direct investment (FDI) and the environment. After reviewing the theoretical literature, we discuss two broad strands of research. First, the impact of environmental regulations on the choice of plant location and second, the impact of FDI on the emissions of various pollutants and the related question of whether we can observe environmental spillovers from foreign to domestic firms. Finally, we review the more recent literature on environmental outsourcing as an alternative to FDI and conclude with suggestions for future research.
Technology underpins human development. We need access to it to provide the very basics of a minimum standard of life – food, water, shelter, health and education. But a significant proportion of the world’s population do not have that access today. Over 150 years after Edison patented the light-bulb, more than 1 billion people are still living in the dark without electricity. Likewise over 700 million are still without safe water and 2 billion without safe sanitation, despite the Romans having access to those technologies 2,000 years ago. Meanwhile the WHO estimates 30% of the world’s population lacks access to its list of essential medicines for a basic health care system, while despite the increasing importance of digital identity and the need to open up new ways to access information and knowledge, 60% of the population of Asia and 70% of Africa still cannot access the internet.
But technology is a double edged sword. Whilst at least a fifth of the world’s population lacks access to technologies fundamental to a basic standard of living, unfettered use of technology by those who have it brings its own problems. Our addiction to fossil fuel technologies has kick-started global warming. The adoption of green revolution technologies and the industrialisation of agriculture has resulted in an era of cheap food (at least in the developed world), but at a cost of heavy damage to the ecosystems we and other species rely on, and a massive decline in biodiversity amongst our food crops and livestock, leaving the global food system vulnerable to future shocks from environmental change or exposure to new pests and diseases. And in the health sector we see a collapse in the effectiveness of antibiotics as a consequence not only of their over-prescription amongst the human population, but also their wildly irresponsible use in agriculture both as a prophylactic and a growth promoter in livestock.
Electricity only became widely available in domestic households in the developed world after the 1930’s. Antibiotics were first used in the 1940’s. The green revolution in agriculture only started in the 1960s. Yet today there is a very real danger that some of the key technological advances that have enabled rapid improvements in the standard of living for billions of people on this planet – the technologies behind our freedom from infectious disease and our access to cheap food and abundant energy, could be rendered unusable just 50 to 80 years after their first introduction, and long before they have been made universally available.
Meanwhile our collective technological innovative efforts often face in the wrong direction. Despite a clear need to rapidly develop clean renewable energy technology, the global public subsidy supporting fossil fuel technology remains stubbornly at four times the level of that for renewables. Meanwhile the economics of drug production mean that research into the next generation of antimicrobial drugs is hindered by the fact that it can be as much as twenty times more profitable for a pharmaceutical company to develop a new drug for a chronic condition such as a neuromuscular complaint (which likely requires a life-time prescription) than a treatment for an infectious disease (used in one off courses of treatment).
This presentation argues that we need to understand why the drivers of innovation today mean we are more likely to see research into a cure for male baldness than a malaria vaccine or into methods for extracting shale gas as opposed to solutions for storing renewable energy. It looks at how we might better provide access to and govern the use technology, and how we could change the alignment of our innovation systems to deliver technology that is socially useful and addresses the key challenges of poverty and environmental sustainability. Finally it considers how we might use a different frame of reference – Technology Justice – to provide a radically different approach to our oversight and governance of the development and use of technology, to provide an innovative and new approach to development.
Three core topics in Alice Amsden’s work have special relevance for the analysis of development in Latin America. First, relationships of reciprocity were prominent in developmental states of East Asia where governments provided firms with large subsidies in return for exacting performance standards. Reciprocity was weak or absent in many industrial policies in Latin America. Second, Amsden emphasised the central role of diversified, family-owned business groups in the industrialisation of East Asia. Business groups also predominate in Latin America though they tend to be risk-averse portfolio groups. Third, while East Asian countries limited entry by multinational corporations, they dominate many manufacturing sectors in Latin America.
Mexican migration to the USA has experienced unprecedented growth since the implementation of neoliberal reforms in Mexico in the 1980s and 1990s. The signing of the North American Free Trade Agreement (NAFTA) further accentuated the phenomenon to the degree that it turned Mexico into the number one country of emigrants in the world. This seemingly inexhaustible expulsive force brought with it profound qualitative transformations in the migratory phenomena associated with processes of deep social transformation. One of these, which has received relatively little attention in the literature, has to do with highly skilled labour migration which, in the last two decades, has shown a pace of growth greater than that of Mexican migration in general (see Figure 13.1). This makes Mexico the second-ranked country in the world in terms of sending highly skilled migrants to the USA, the first-ranked to the rest of Latin America and the sixth-ranked to the rest of the world.
Time series analysis of co-integration and error correction model are applied to explore the nexus between FDI and domestic investment in India and Pakistan. The results assert that FDI has complementary effect on domestic investment in India whereas it has the substituted effect on domestic investment in Pakistan in the long run. The complementary effect in India is elastic as compared to substitution effect of FDI in Pakistan, which is inelastic.
Under the headline “The Last Company Town,” Newsweek reported in 2011 the fate of Scotia, California, a town founded in the nineteenth century by the Pacific Lumber Company in the redwood forests of northern California.1 In the hands of a Wall Street hedge fund, the town was slated to be sold and with it a distinctive way of life—characterized by the report as “a time when employers provided everything”—destined to end. Yet the same article noted the revival of the company town model in other industries in the United States and around the world, and it cited the transformation of the corporate campuses of Google and Facebook, in California, and the recent establishment of new factory towns in China. A creation of industrialization and capitalist expansion, company towns have proven resilient organizations. Company towns first appeared in Europe and North America with the industrial revolution, as a way to make manufacturing or mineral extraction possible in isolated areas and in places without easy access to established urban centers, and as devices to gain access to a stable labor force. As industrialization and capital investment expanded, company towns also emerged in Latin America, Africa, the Middle East, Oceania, and colonial territories throughout Asia—where they often acted as pioneering devices in broader Europeanizing efforts—as well as in China and Japan.2 These settlements received many names: single enterprise communities, mill towns, factory villages, and enclaves; they have been called colonias industrialles in Spain, cités ouvrières in France, Arbeitersiedlungen in Germany, bruk communities in Sweden, and villas obreras and cidades-empresa in South America.3
The 1990s and the early years of the twenty-first century witnessed important changes in patterns of regional integration, namely the emergence of formal “trade” agreements between developed and developing countries. These agreements typically liberalize trade in most goods and services, and they also coordinate measures on a broad range of economic policy areas that go beyond “trade” per se. The first and most prominent of these agreements, of course, is the North American Free Trade Agreement (NAFTA), which the United States, Canada, and Mexico signed in the early 1990s. In subsequent years, the United States has concluded agreements (or, at least, has either begun negotiations or undertaken preliminary discussions on such agreements) with more than half the countries of Latin America and the Caribbean.1 And, of course, since 1994 discussions have continued for the Free Trade Area of the Americas (FTAA), a hemispheric that would include all thirty-four countries in the region (except Cuba).
Investment is a crucial intermediate variable for economic growth; therefore, the relationship between FDI and domestic investment is widely debated in economic literature. Chapter 8 therefore analyses the dynamic relationship between FDI and DI empirically for five South Asian countries by using both time series and panel data analysis and for China for comparative purpose. The empirical test shows that all the explanatory variables except RER have expected signs for India. The variable of interest is FDI as a share of GDP; it shows that FDI crowds in DI in both the short and long run. This suggests complementarities between FDI and DI. China is a special case, where FDI crowds out DI in the short run and stimulates it in the long run. From the panel estimation, it is observed that for South Asian countries, one unit increase in FDI results in more than one unit increase in DI in the long run. The causality test indicates one-way causality from FDI to DI in all South Asian nations except Pakistan, where there is a two-way mutual feedback between FDI and DI. Based on the current study, the policy to enhance FDI should be implemented to stimulate DI. More FDI should be encouraged in less-developed regions, as the positive impact of FDI on DI is more pronounced there. But sectors should be selected so that backward and forward linkages through spillovers increase rather than displacing domestic firms. Overall, FDI has played a significant complementary role to DI in developing South Asian countries. Therefore, these countries must make every effort to get FDI and, thereby, improve DI—which is crucial for sustaining high economic growth.
Since the 1992 Earth Summit, sustainable development has emerged as
the guiding vision – at least rhetorically – for global economic governance.
Stated as a central objective in the founding document of the World Trade
Organization, sustainable development implies a trajectory that integrates
improvements in human well- being and social equity with reductions in
environmental risks and scarcities. In simple terms, it points toward a
“green economy” that is “low carbon, resource efficient and socially inclusive”
(UNEP 2011: 1).
Investment, both domestic and foreign, is crucial in moving from envisioning
to implementing pathways to sustainable development. In the
energy sector alone, the International Energy Agency estimates that an
additional $750 billion to $1.6 trillion per year to 2030 and $1.6 trillion
per year between 2030 and 2050 will be needed to halve global carbon
emissions by 2050 (IEA 2010). UNEP estimates that $1.3 trillion per year
is needed to halve carbon emissions as well as to achieve the Millennium
Development Goals by 2050 (UNEP 2011).
Mobilizing private capital towards climate mitigation and, more generally,
sustainable development requires domestic and international policies
that enable investors to embed public purpose in the search for private
return – that is, to “embed sustainability” in business strategy and management
(Laszlo and Zhexambayeva 2011). Originating in the 1960s, current
international investment rules have a much narrower aim, namely to
protect the property rights of foreign investors in host countries. Missing
in investment agreements are specified investor obligations to promote
sustainable development through good environmental and social performance,
as well as rights for host countries to regulate towards sustainable
development.
In recent years, growing host country dissatisfaction with the current
investment regime, as well as NGO activism in changing global business
norms, has prompted innovation in investment agreements and calls for anew, more balanced international investment paradigm based on sustainable
development.
This chapter analyzes the obstacles to sustainable development posed by
current international investment rules. It first considers the potential role
of foreign investment in promoting sustainable development, especially in
developing countries, and describes the current international investment
regime. It then analyzes three obstacles posed by investment rules to sustainable
development: 1) lack of national policy space for development;
2) lack of specified investor environmental and social obligations; and 3)
“regulatory chill” stemming from investor–state dispute resolution mechanisms.
Next, the chapter examines innovations in global sustainability
business norms that could go some way to overcoming these obstacles. The
chapter concludes with models for “next- generation” investment governance
based on the principle of sustainable development.
As the role of Foreign Direct Investment (FDI) in development becomes increasingly significant, the concern of many policy makers is not only to attract FDI but also to ensure that the society and future generations gain broad benefits from the FDI. Hence, the United Nations Conference for Trade and Development (UNCTAD) developed the Investment Policy Framework for Sustainable Development (IPFSD) as guidance for countries to achieve sustainable development from FDI. Using the IPFSD, this paper examines the investment policies of Indonesia under centralized and various decentralization periods and describes the relationships among government levels in implementing the policies which guide FDI. From the examination, we found that the investment policies in Indonesia have been directed to achieve sustainable development gradually. Furthermore, the intergovernmental relationships that have changed due to the decentralization process have become crucial to the effectiveness of investment policies for the society. During the centralized period, the performance of inward FDI was good, but citizen input and participation in the policy process was weak. In the first wave of decentralization, local governments gained significant powers from the central government to guide FDI. However, the great devolution of power to local governments without clear mechanisms of intergovernmental relations and accountability led to a deterioration of the investment climate and made the policies less effective. Finally, during the second wave of decentralization, the central government has taken responsibility in the FDI management process but still provides more room for local governments to participate in the development process. Hence, cooperation between national and local government is more enhanced during this period to guide FDI.
This chapter tracks the expansion of modern grocery retail into emerging and developing countries, and explores the links between retail and poverty reduction. It then describes some policy options available to governments and IPAs in attracting retail FDI for broad-based rather then exclusive development. The focus is on grocery retail, which dominates global retail sales, though much available data and analysis on
retail investment applies to the sector as a whole, including non-food: home products, apparel and department stores.
By drawing on the tradition of institutionalism and the Minsky–Kregel framework on sovereign financial systems, the paper discusses the nature of and the institutional factors behind financial fragility in Estonia within a wider financialization phenomenon. The study reveals the emergence of two interrelated manifestations of the financialization process in Estonia in the form of increased international inequality in favor of foreign actors, accruing from cross-border investment activity, and higher debt burden of the household sector against the accumulation of savings in the economy as a whole. Institutionally, these developments have been supported by the embeddedness of the Washington Consensus policies. Given the lack of intervention in the economy by means of either prudential capital account controls or specific foreign direct investment policies, the result has been a heavy reliance on foreign capital in both the financial and nonfinancial sectors. Furthermore, the privatization process and recurring banking failures associated with the transition process have created a particular historical context in terms of institutional arrangements and idiosyncratic elements that laid the groundwork for deteriorating internal and external imbalances in the economy.
This is a translation of season 5 of the book "Transforming Economies: Making Industrial Policy Work for Growth, Jobs and Development" by Salzar, Nubler and Kozul
The record of successful developmental states in East Asia and the partial successes of developmental states in Latin America suggest several common preconditions for effective state intervention including a Weberian bureaucracy, monitoring of implementation, reciprocity (subsidies in exchange for performance), and collaborative relations between government and business. Although Brazil failed to develop the high technology manufacturing industry and exports that have fueled sustained growth in East Asia, its developmental state had a number of important, and often neglected, successes, especially in steel, automobiles, mining, ethanol, and aircraft manufacturing. Where Brazil's developmental state was less successful was in promoting sectors like information technology and nuclear energy, as well as overall social and regional equality. In addition, some isolated initiatives by state governments were also effective in promoting particular local segments of industry and agriculture. Comparisons with East Asia, highlight the central role of state enterprises in Brazil that in effect internalized monitoring and reciprocity and bypassed collaboration between business and government (that was overall rarer in Brazil).
This study explores the impact of ICT and IT-enabled multinational corporations (MNCs) operating in Costa Rica on the performance of domestic ICT firms. We explore the extent to which interactions between domestic firms and MNCs contribute to the survival and growth of existing domestic ICT firms, as well as the creation of new domestic ICT firms, and the generation of new high-quality employment (higher wages) in those firms. We also analyze the latter topic from a gender perspective.
Conceptual innovation with respect to the enclave concept has been virtually absent compared with industry agglomerations. This is despite the fact that some varieties of agglomeration distinguished in the literature appear to come close to what previously were regarded as industrial enclaves and despite frequent allusions to the enclave nature of economic spaces produced by contemporary processes of globalization. Bringing the literature on agglomeration and enclaves into dialogue, we revisit the concept of the enclave—a concept that has been largely neglected since it enjoyed a popularity in connection with the study of particular (notably extractive) industries and particular (notably dependencia) theories of national economic development during the 1960s and 1970s. Much has changed since this time, which suggests that the concept of the enclave ought to be ripe for reevaluation. In this article we take an initial step in this direction, identifying analytical dimensions to the enclave and illustrating different manifestations of enclaves in the mining industry, drawing on the case of Chile. We conclude by advocating the renewed study of industry enclaves within contemporary economic geographic analysis.
Existing literature provides striking empirical results about the declining manufacturing employment all over the world. This bare finding brought about clear definition of deindustrialization: "systematic disinvestment in a nation's core manufacturing industries". In some studies we observe globalization as a main source of this concern. Only in Japanese economy between 2001 and 2004, 800 thousand jobs were lost in manufacturing SMEs. For the same period, job loss in all US manufacturing industry reached to 2, 1 million. Of the 10 countries tracked by the US Bureau of Labor Statistics, between 1997 and 2009, United States lost highest number of jobs in manufacturing. By mid-2012, Advanced Manufacturing Partnership Steering Committee submitted its report to Mr. Obama with the title of "Capturing Domestic Competitive Advantage in Advanced Manufacturing". This report also includes concerns about declining share of manufacturing in the US Economy. From the social change standpoint, US is much concerned than others, because middle-class of America is built up by manufacturing. Also, US experience shows that, manufacturing jobs are more likely to be full-time and to offer 12 percent higher wages than other jobs. Other study suggests that between 1970s and 2000s external factors caused manufacturing sector employment decline across 18 OECD countries. About the developing countries, a comprehensive study including analysis of 64 countries comes up with interesting result: From 1980 to 2003 manufacturing employment increased in most countries. Declining relative importance of manufacturing in terms of employment and output made some countries to take pre-emptive steps. Developing countries such as Cameroon and Nigeria perceives manufacturing sector development plans as poverty reduction policy for the economy. Fostering non-oil industry, that is manufacturing, holds a national vital priority and provides potential employment opportunities for Azerbaijan economy too. During the rising concerns era of manufacturing employment, numerous policy implications are also supposed to be concluded for the Azerbaijan economy. This study will attempt to come up with some practical and plausible suggestions for the Azerbaijan, regarding manufacturing employment and its social impacts.
Introducción El Tratado de Libre Comercio de América del Norte (TLCAN) entre México, los Estados Unidos y Canadá, que entró en vigor en 1994, representó una nueva etapa en la política comercial mundial por ser el primer tratado entre economías con nive-les de desarrollo sumamente diferentes. Desde la perspectiva del gobierno mexica-no, el TLCAN fue considerado como un poderoso instrumento para el crecimiento económico. Sus principales objetivos incluyeron aumentar la cantidad de la inver-sión extranjera directa, generando empleo, aumentando la productividad y compe-tividad internacional, y garantizar el acceso preferencial para sus exportaciones en el mercado norteamericano. Refleja el nuevo énfasis en las estrategias de desarrollo Leendert de Bell 1 Inversión extranjera directa y desarrollo local. El estado de Coahuila bajo el TLCAN.
The North American Free Trade Agreement (NAFTA) is a good place to begin a comprehensive review of U.S. trade agreements, as called for by President Obama. Any U.S. review of NAFTA should, however, go beyond its impact on the United States to assess its effects on Mexico. • The evidence points overwhelmingly to the conclusion that Mexico's reforms, backed by NAFTA, have largely been a disappointment for the country. Despite dramatic increases in trade and foreign investment, economic growth has been slow and job creation has been weak. Now, with its economy so closely tied to that of its northern neighbor, Mexico is suffering the most severe economic crisis in the region.
Turbulent events in the world’s financial, food and energy markets, global recession, as well as the urgency of climate change, growing inequality and persistent poverty, suggest that various features of globalization and economic liberalization are fundamentally flawed. They also starkly contradict the development scenarios of those who had been touting the virtues of self-regulating markets, minimalist states and the capacity of large firms to recast their role in society through ‘corporate social responsibility’ (CSR). An offshoot of the free market ideology that took hold in the 1980s, CSR matured within the context of the ‘institutional turn’2 of the 1990s, which had both an analytical and a constructivist or normative dimension. The former sought to better understand how institutions affect society and economic performance, as well as how large firms — as organizations — enjoy some autonomy from market forces to pursue their strategic interests. The constructivist dimension was concerned with filling governance gaps and fine-tuning institutions, in particular through so-called voluntary initiatives and ‘private regulation’, in an attempt to minimize certain perverse effects of economic liberalization that affected workers, communities, consumers and the environment. Such effects increasingly threatened the legitimacy of big business as well as the dominant ideology underpinning the rise of corporate power, namely neoliberalism. CSR, then, sought to address new challenges for business associated with risk, uncertainty and complexity. However, it did so in a way that was as much about sustaining core features of contemporary, corporate-led capitalism as improving corporations’ social and environmental performance.
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