Global economy, global justice—theoretical objections and policy alternatives to neoliberalism, by George Demartino. (London and New York: Routledge, 2000, pp. xiv+279, £19.99 p/bk)

✍ Scribed by Des Gasper

• Book ID: 102351772
• Publisher: John Wiley and Sons
• Year: 2002
• Tongue: English
• Weight: 37 KB
• Volume: 14
• Category: Article
• ISSN: 0954-1748
• DOI: 10.1002/jid.879

✦ Synopsis

remoteness is important. The editors use this idea in an attempt to link the papers discussed here already to the remaining three contributions, which are based on analysis of the value-chain from domestic producer to final consumer. Raphael Kaplinsky's thoughtful piece on 'Globalisation and unequalisation' goes far beyond the volume's initial interest in how to encourage exports from 'marginalized' economies. He argues that globalization sometimes creates damage not only by excluding countries but also by including them! He notes that export expansions by India and (particularly) China have had the effect of driving down the net barter terms of trade for developing countries' manufactured exports. He raises the possibility of export growth being accompanied by countervailing falls in price or by falls in real wages in the exporting sector. Within exporting countries, the requirements of overseas markets, though beneficial to those domestic producers receiving help from foreign buyers to upgrade, also serve to marginalize those domestic producers who cannot improve performance. Catherine Dolan and John Humphrey's carefully researched chapter documents this process in the African horticulture industry, where British supermarkets have encouraged the development of large, efficient producers, to the detriment of smallholders.

Less satisfactory is the piece by Hubert Schmitz and Peter Knorringa, based on information from the buying firms in international value chains. Their interviews allow them to rank major exporting countries in the world footwear industry by various characteristics such a quality and reliability of supply, presented in standard World Bank-style star diagrams. However, the buyers have less information to contribute about the sources of competitive strength in the exporting countries.

All in all, though, the research reported in this book takes us considerably further in understanding the obstacles firms in low-income countries must overcome if they wish to enter global markets. It also highlights the importance of governments helping them in such areas as infrastructure provision. Less clear is what policies national governments and international organizations should pursue in order to cushion vulnerable individuals and firms in developing countries against globalization's backwash effects, and how such vulnerability is affected by the speed of trade liberalization.