Geoffrey Schneider

Globalization and the Poorest of the Poor: Global Integration and the Development Process in Sub-Saharan Africa

Most recent studies of globalization describe the experiences of developed countries, and studies focusing on developing countries usually ignore sub-Saharan Africa. Yet Africas experiences with globalization are unique. While the World Bank and the International Monetary Fund (IMF) encourage African countries to open their markets, Africa is in some ways excessively open. The ratio of extra-regional trade to GDP in Africa is twice that of Latin America and nearly four times that of Europe. Furthermore, globalization is not a new phenomenon in Africa-Africa began to be integrated into the global economic system in the sixteenth century, and this integration has proceeded, albeit unevenly, since that time. Nevertheless, Africa is also a marginal player in global trade in that it is responsible for less than 2 percent of world exports and imports and attracts a declining share of global foreign direct investment (FDI). This paper describes the historical evolution of the globalization process in sub-Saharan Africa and the institutional manifestations of the globalization process. In contrast with the more auto-centered, aggressively expansionist structures of developed and newly industrialized economies, African economies have been and still are predominantly externally centered and passive in the international sphere.1 Understanding these issues is crucial if Africa is to design development policies to break the cycle of poverty and underdevelopment. The term globalization is usually used to refer to the contemporary processes-especially flows of capital, commodities, and information-that are operating to form a unified global economy. Globalization is presumed to be accompanied by the decline of the nation-state and market homogenization as we proceed inexorably toward a vast, unreg-

NGOs, the State, and Development in Africa

This paper discusses the impact of the rise of non-governmental organizations (NGOs) and social entrepreneurs on economic development, with a special focus on how they have been used in Africa. The paper describes the decline of the state and the rise of NGOs as a force in economic development under neoliberalism. We then turn to two of the major problems with the roll-back of the state in Africa: the inherent weaknesses of nonstate actors in the development process, and the significant cost that is incurred by undermining the role of state. The paper concludes by suggesting the necessity of reinserting the state as the major vehicle for economic development, albeit in productive partnership with NGOs and social entrepreneurs.

Social Entrepreneurship, Microfinance, and Economic Development in Africa

This paper analyzes the potential impact of social entrepreneurship, and especially microfinance, on development in Africa. Social entrepreneurship could play an important role in development. However, social entrepreneurship has limited potential for structural transformation and poverty alleviation, which calls into question the recent prioritization of social entrepreneurship. Furthermore, social entrepreneurship can undermine support for state-led development and democratic reforms that are the preconditions necessary for structural transformation and long-term, large-scale development. Thus, social entrepreneurship is best seen as a useful microeconomic strategy that can contribute to development in small ways, but that cannot possibly replace a democratic developmental state.

The Development of the Manufacturing Sector in South Africa

(2000). The Development of the Manufacturing Sector in South Africa. Journal of Economic Issues: Vol. 34, Papers From The 2000 Afee Meeting, pp. 413-424.

Neoliberalism and economic justice in South Africa: revisiting the debate on economic apartheid

Although the political environment in South Africa is vastly improved, economic apartheid still exists: the economic divisions along racial lines created by apartheid are still in place today. Despite these divisions, neoliberal economists continue to press for a largely unregulated market system, which is unlikely to improve the lives of most black South Africans. This paper documents the role neoliberal economic theory has played and is continuing to play in frustrating and opposing fundamental change in the distribution of land, income and assets in South Africa. Neoliberal policies stem from an ideological attachment to free markets, rather than a substantive analysis of how market forces play out in an unequal society like that in South Africa. By choosing to focus on narrowly defined economic criteria such as GDP growth and allocative efficiency, neoliberal economists marginalize the vast problems created by inequality and poverty and thus overlook the potential benefits of a redistributive strategy. Neoliberal economic policies have been installed in South Africa by the ANC via GEAR and other policy initiatives, but these policies have made little progress in solving South Africas economic problems.

Institutional Challenges in the Development of the World’s First Worker-Owned Free Trade Zone

Abstract The theory of grounded comparative institutional advantage offers a framework for examining institutions that advantage and disadvantage specific types of economic activity in particular places. A case study of a Nicaraguan women’s sewing cooperative, the world’s first worker-owned free trade zone, reveals contradictory institutional biases both promoting and inhibiting exports. Formal institutions, e.g. regulations forcing the coop to form a noncooperative business to benefit from CAFTA, and informal institutions, such as an NGO assisting the women cope with CAFTA Tariff Preference Levels, gain credit, and control inventory, form the complex web that small actors must navigate to export their goods.

Comparative Institutional Advantage and the Appropriate Development Model for Sub-Saharan Africa

The theory of comparative institutional advantage posits that certain types of firms locate production facilities in a particular location and avoid other locations due to unique institutional advantages and disadvantages. In sub-Saharan Africa, neoliberal policies, weak and corrupt states, and Transnational Corporations have created a particularly destructive variant of capitalism. African capitalism generates little in the way of economic growth, rewards mainly the TNC and the African elites, and undermines Africa’s economic future via activities that are utterly extractive in nature. African capitalism is facilitated directly by the WTO, the structural adjustment policies of the IMF and the World Bank, and the institutional structures of African economies. After outlining the problems with African capitalism as currently structured, the paper goes on to suggest an alternative to this model involving experimental, embedded, grass roots development efforts that build on domestic cultural institutions that would generate significantly more positive outcomes for the people of sub-Saharan Africa. By abandoning neoliberal policies, it might be possible to create a better economic model that would build on community-centered institutional strengths to benefit a greater proportion of the population.

Democratizing the Classroom: Sequencing Discussions and Assignments to Promote Student Ownership of the Course

This article explores a radical pedagogical method for democratizing the classroom that generates rich, engaged, student-led discussions. The approach is grounded in the notion that democratic participation in the classroom is a worthy goal of radical pedagogy, that students must be adequately prepared in order to take on greater responsibility in the classroom, and that greater learning occurs when students take a more active role in the learning process. Careful sequencing of discussions and assignments is used to turn over responsibility for the course to students gradually, without sacrificing the depth and sophistication that instructors want to achieve in the classroom. The result is a classroom in which all students participate and in which thoughtful, informed discussion and debate is the primary mode of engagement. JEL classification: A22, B5

Paying the Bills Is Not Just Theory: Service Learning about a Living Wage

This article discusses how to combine service learning, and specifically a living wage research project, with radical political economy-based undergraduate economics courses to promote critical thinking, civic engagement, and active learning in students. The authors explore how instructors can integrate service learning into the teaching of political economy. In addition, the article describes the authors’ experiences with living wage projects that they have implemented. The article makes the argument that the combination of experiential learning and political economics enriches the course experience for students significantly, leaving a much more lasting impression on students than a standard economics class.

Trade, People and Places: A Social Economic-Geographic Approach to Comparative Institutional Advantage

Abstract This paper examines the theoretical underpinning of contemporary trade policies through a social economics lens. The paper offers a social economic critique of the theory of comparative advantage and the recently developed theory of comparative institutional advantage. Subsequently, the paper develops a more comprehensive and general theory of comparative institutional advantage consistent with the principles and methodology of social economics. Furthermore, it suggests ways in which this social economic–geographic version of the theory of comparative institutional advantage can be used in the construction of trade policies which are more likely to have a beneficial impact on the welfare of communities and to foster the fulfilling of human needs and potential. This version of the theory serves to reorient the focus of economic policy to the welfare of the community and the income-generating possibilities of trade. And it serves as a superior guide to policymaking because it is better able to define the root causes of regional success than standard trade theories.