Rory Horner

A New Economic Geography of Trade and Development? Governing South–South Trade, Value Chains and Production Networks

Abstract While South–South development cooperation has “win–-win” aims, it is unclear the extent to which its horizontal, mutually beneficial objectives translate into “South–South” trade and move beyond the asymmetrical nature of North–South trade. Global value chain and global production network research can make progress into an understanding of the dynamics of these emerging trade patterns. To date, however, such research has largely focused on the development prospects for firms and regions in the global South integrating into the production networks of lead firms from the global North. Evidence presented for the growth of South–South trade, including firms emerging from new home regions and the rise of new end markets in the global South, questions this focus. Emerging research suggests that the growth of South–South trade will be linked to a trade-off involving relatively easier access to Southern markets and potentially greater competition from competitors across the South. Avenues and questions for further research are identified here in terms of the governance, upgrading opportunities and territorial development outcomes associated with South–South chains and networks. Such research can move beyond win–win notions from development cooperation to highlight the commercial realities and very uneven geographies and development outcomes associated with expanding South–South trade.

The Impact of Patents on Innovation, Technology Transfer and Health: A Pre- and Post-TRIPs Analysis of India's Pharmaceutical Industry

The debate surrounding the World Trade Organizations Trade-Related Aspects of Intellectual Property Rights (TRIPs) Agreement indicates that patents matter for development. Yet literature on the geography of knowledge transfer shows that knowledge is spatially sticky, suggesting that the impact of patents can be exaggerated. Using interview evidence, this paper explores how Indian pharmaceutical firms have responded to changes in patent law, including the introduction of more extensive patent protection in 2005 as a condition of TRIPs. A regime of limited patent protection for over three decades prior to TRIPs facilitated informal knowledge transfer and the emergence of a pharmaceutical industry with significant domestic capabilities. Contrary to some expectations, the Indian pharmaceutical industry has continued to grow post-TRIPs, with large domestic firms becoming involved in more formal technology transfer as part of an increasingly collaborative relationship with multinationals. This trend is also driven by a focus on the markets of developed countries, raising questions for the future sustainability of Indias low-priced medicines. While changes in patent law can facilitate or inhibit a variety of aspects of development, the adaptation of the Indian pharmaceutical industry suggests that their impact must be related to the broader institutional setting, particularly the underlying domestic capabilities.

Limits to FDI-driven growth in Ireland: a newspaper content analysis for investment, upgrading and divestment

What are the consequences and the future of foreign direct investment (FDI)-driven growth for Ireland? In this paper, we conduct content analysis of newspaper reports on instances of investment, divestment and relocation before, during and after the Celtic Tiger period. We examine reasons for investment and divestment and associated job creations and losses in three different decades in order to better understand Irelands changing position as an FDI location. We also illustrate the countries and regions that have emerged as competitor locations for Irelands FDI through analysing the instances of relocations. We conclude that Ireland is faced with a challenge quite distinctive from its Asian Tiger counterparts.

The Rise of the Hybrid Domain: Collaborative Governance for Social Innovation

It is imperative for policymakers to strike a judicious balance between economic growth and social wellbeing. Simple as it may sound, it is a difficult goal to achieve. Contemporary market mechanisms have recently developed anomalies, evident at times of financial and economic crises. At the same time, social policies have not been able to ameliorate economic inequality, poverty and inadequate availability of basic services. In such circumstances, market driven solutions or social policies alone may have limited impact. But what could happen if these two approaches form linkages and collaborate? In this context, the authors of this book have proposed a novel concept of “hybrid domain”. Going beyond the distinct categorization between the state and markets, the concept of hybrid domain refers to a middle area between the two, “a newly emerging domain that overlaps public and private interests” (p. 2). The authors refer to the agents in this model as “stakeholders” rather than “shareholders” — a swelling “middle” between the public and the private domains. In doing so, they challenge the dual understanding of economic governance in terms of the state versus the market. It is argued that a unified conceptual framework rather than singular state, market or grassroots-approach will help to understand the complex interactions between the hybrid entities and generate social innovations. These social innovations often fill a certain delivery gap and may have far-reaching impact on the lives of the poor (this model is nicely captured in a figure provided on p. 5). Since India is a hotbed for such social innovations, the authors turn their gaze towards the country to test this model. The concept of hybrid domain is corroborated through a number of case studies related to: health; agriculture; rural development; livelihoods in the informal sector; and renewable energy. One such innovation can be seen in the case of a social experiment that provides health services to remote areas through effective use of Information and Communication Technology (ICT) and entrenched medical networks in India. Known as the “Telemedicine Programme”, it provides for local franchisees who act as intermediaries between patients (usually in remote areas) and centrally located doctors based in urban centres. With the help of Internet-based tools, a doctor located in the central facility can carry out remote diagnosis elsewhere. Furthermore, the local franchise buys remote diagnostics kits from a nongovernment organizaiton (NGO). The programme is subsidized by the state or by international donors such as the Gates Foundation. Started as a pilot in the Indian state of Uttar Pradesh, the programme has now expanded to other poor states, too. By 2011, it had reached 2 million patients. Another example of the hybrid domain is an enterprise that works in close collaboration with silk weavers from Kanchipuram city, which has developed a silk-based “smart” chip diagnostic tool. The enterprise is supported by the Grand Challenges Canada and several national and international firms, and has established scientific linkages with a number of universities. Similar innovations can be seen in other sectors as well. Farmers in the states of Karnataka and Andhra Pradesh, for example, have benefited from mobile-based solutions to the information gap problem, particularly regarding prices of their inputs. Innovations have also been introduced in providing skill-based training and livelihood opportunities for the youth. These case studies demonstrate the involvement and collaboration of multiple stakeholders ranging from NGOs to multinational enterprises (MNEs), together creating an active hybrid domain. In all these cases, collaboration between the various stakeholders played an instrumental role in driving social innovations. This blending and blurring of boundaries between the state, markets and nonprofit organizations has given these hybrid domains flexibility. Authors argue that this “domain flexibility” is a long-drawn process of “merging economic and social missions” with shared values and learning from

The Future of South-South Economic Relations. Edited by Adil Najam and Rachel Thrasher

The term South-South is rapidly becoming a buzzword in globalization and international development studies, referring to the growing trade, investment, and financial relationships, as well as labor movements and economic cooperation, between countries in the Global South (i.e., “developing regions”). Comprising writings by international relations and public policy scholars based in the United States, Canada, India, Nigeria, Brazil, and Mexico, this edited volume seeks to outline the contours of an emerging, more multipolar world economy, thereby providing a fledgling academic appraisal of a topic of growing interest to a wider world of policymakers and businesspeople. While Rachel Thrasher and Adil Najam in the introduction briefly recall an earlier era of South-South cooperation, notably in the 1970s, the main attention is given to assessing the deepening and changing nature of economic interactions between countries within the Global South during the first decade of the twenty-first century. Exploring also how such interactions may develop in the future, this contemporary interest is motivated by a line of thought that sees potential in “South-South economic relations as more development friendly than their North-South counterparts” (p. 2). The early chapters focus on state-level initiatives to promote regional integration in Latin America, Africa, and the Asia-Pacific region. Laura Gómez-Mera (Chapter 1) suggests that interest in regional trade and economic cooperation in Latin America is a reaction against asymmetric North-South agreements. She identifies a “complex web of overlapping trade and economic arrangements” (p. 11), which is a feature of the volume. The poor implementation and compliance record with these regional agreements is another factor that emerges, including in Africa (Chapter 2) and the Asia-Pacific region (Chapters 3 and 4). The authors also consider how, from a public policy point of view, greater regional trade and economic integration could be accelerated. In Chapter 3, for the Asia-Pacific region, Nagesh Kumar suggests the potential of a balanced regional trading agreement, stronger physical connectivity, monetary and financial coordination, and cooperation for narrowing development gaps. In addition to these political arrangements, which seek to promote South-South engagement, such relations are also significant in global governance. In Chapter 5, Haroldo Ramanzini Jr. and Manuela Trindade Viana cite Brazil and India as examples of “political entrepreneurs,” being among a small group of countries who have been able to use the World Trade Organization forum to obtain greater leverage for the Global South. The following chapters empirically chart trade and investment, with a focus on the major economies of the Global South. Mariana Rangel finds that although in both Brazil and India, “the government is aiming at South-South cooperation, business is more oriented towards North-South projects” (chap. 6, p. 128). Focusing on Brazil, Alcides CostaVaz (in Chapter 7) points to a tension between the pragmatic trade and foreign policy orientation directed toward the Global North and political promotion of South-South relations. In Chapter 9, Kevin Gallagher argues China-LatinAmerican economic relations are “all business,” with China’s engagement “pragmatic” rather than part of a “grand geopolitical rationale” (p. 181), while Nader Habibi (Chapter 10) also suggests that growing trade and investment between “Chindia” and the Gulf Cooperation Council (GCC) countries “is not driven by ideological or political motives such as a deliberate 241 BO O K R EV EW

The Future of South-South Economic Relations Edited by Adil Najam and Rachel Thrasher New York: Zed Books, 2012

The term South-South is rapidly becoming a buzzword in globalization and international development studies, referring to the growing trade, investment, and financial relationships, as well as labor movements and economic cooperation, between countries in the Global South (i.e., “developing regions”). Comprising writings by international relations and public policy scholars based in the United States, Canada, India, Nigeria, Brazil, and Mexico, this edited volume seeks to outline the contours of an emerging, more multipolar world economy, thereby providing a fledgling academic appraisal of a topic of growing interest to a wider world of policymakers and businesspeople. While Rachel Thrasher and Adil Najam in the introduction briefly recall an earlier era of South-South cooperation, notably in the 1970s, the main attention is given to assessing the deepening and changing nature of economic interactions between countries within the Global South during the first decade of the twenty-first century. Exploring also how such interactions may develop in the future, this contemporary interest is motivated by a line of thought that sees potential in “South-South economic relations as more development friendly than their North-South counterparts” (p. 2). The early chapters focus on state-level initiatives to promote regional integration in Latin America, Africa, and the Asia-Pacific region. Laura Gómez-Mera (Chapter 1) suggests that interest in regional trade and economic cooperation in Latin America is a reaction against asymmetric North-South agreements. She identifies a “complex web of overlapping trade and economic arrangements” (p. 11), which is a feature of the volume. The poor implementation and compliance record with these regional agreements is another factor that emerges, including in Africa (Chapter 2) and the Asia-Pacific region (Chapters 3 and 4). The authors also consider how, from a public policy point of view, greater regional trade and economic integration could be accelerated. In Chapter 3, for the Asia-Pacific region, Nagesh Kumar suggests the potential of a balanced regional trading agreement, stronger physical connectivity, monetary and financial coordination, and cooperation for narrowing development gaps. In addition to these political arrangements, which seek to promote South-South engagement, such relations are also significant in global governance. In Chapter 5, Haroldo Ramanzini Jr. and Manuela Trindade Viana cite Brazil and India as examples of “political entrepreneurs,” being among a small group of countries who have been able to use the World Trade Organization forum to obtain greater leverage for the Global South. The following chapters empirically chart trade and investment, with a focus on the major economies of the Global South. Mariana Rangel finds that although in both Brazil and India, “the government is aiming at South-South cooperation, business is more oriented towards North-South projects” (chap. 6, p. 128). Focusing on Brazil, Alcides CostaVaz (in Chapter 7) points to a tension between the pragmatic trade and foreign policy orientation directed toward the Global North and political promotion of South-South relations. In Chapter 9, Kevin Gallagher argues China-LatinAmerican economic relations are “all business,” with China’s engagement “pragmatic” rather than part of a “grand geopolitical rationale” (p. 181), while Nader Habibi (Chapter 10) also suggests that growing trade and investment between “Chindia” and the Gulf Cooperation Council (GCC) countries “is not driven by ideological or political motives such as a deliberate 241 BO O K R EV EW

Review of A. Najam and R. Thrasher's The future of South-South economic relations""

The term South-South is rapidly becoming a buzzword in globalization and international development studies, referring to the growing trade, investment, and financial relationships, as well as labor movements and economic cooperation, between countries in the Global South (i.e., “developing regions”). Comprising writings by international relations and public policy scholars based in the United States, Canada, India, Nigeria, Brazil, and Mexico, this edited volume seeks to outline the contours of an emerging, more multipolar world economy, thereby providing a fledgling academic appraisal of a topic of growing interest to a wider world of policymakers and businesspeople. While Rachel Thrasher and Adil Najam in the introduction briefly recall an earlier era of South-South cooperation, notably in the 1970s, the main attention is given to assessing the deepening and changing nature of economic interactions between countries within the Global South during the first decade of the twenty-first century. Exploring also how such interactions may develop in the future, this contemporary interest is motivated by a line of thought that sees potential in “South-South economic relations as more development friendly than their North-South counterparts” (p. 2). The early chapters focus on state-level initiatives to promote regional integration in Latin America, Africa, and the Asia-Pacific region. Laura Gómez-Mera (Chapter 1) suggests that interest in regional trade and economic cooperation in Latin America is a reaction against asymmetric North-South agreements. She identifies a “complex web of overlapping trade and economic arrangements” (p. 11), which is a feature of the volume. The poor implementation and compliance record with these regional agreements is another factor that emerges, including in Africa (Chapter 2) and the Asia-Pacific region (Chapters 3 and 4). The authors also consider how, from a public policy point of view, greater regional trade and economic integration could be accelerated. In Chapter 3, for the Asia-Pacific region, Nagesh Kumar suggests the potential of a balanced regional trading agreement, stronger physical connectivity, monetary and financial coordination, and cooperation for narrowing development gaps. In addition to these political arrangements, which seek to promote South-South engagement, such relations are also significant in global governance. In Chapter 5, Haroldo Ramanzini Jr. and Manuela Trindade Viana cite Brazil and India as examples of “political entrepreneurs,” being among a small group of countries who have been able to use the World Trade Organization forum to obtain greater leverage for the Global South. The following chapters empirically chart trade and investment, with a focus on the major economies of the Global South. Mariana Rangel finds that although in both Brazil and India, “the government is aiming at South-South cooperation, business is more oriented towards North-South projects” (chap. 6, p. 128). Focusing on Brazil, Alcides CostaVaz (in Chapter 7) points to a tension between the pragmatic trade and foreign policy orientation directed toward the Global North and political promotion of South-South relations. In Chapter 9, Kevin Gallagher argues China-LatinAmerican economic relations are “all business,” with China’s engagement “pragmatic” rather than part of a “grand geopolitical rationale” (p. 181), while Nader Habibi (Chapter 10) also suggests that growing trade and investment between “Chindia” and the Gulf Cooperation Council (GCC) countries “is not driven by ideological or political motives such as a deliberate 241 BO O K R EV EW

The Future of South-South Economic RelationsEdited by AdilNajam and RachelThrasher New York: Zed Books, 2012.: Book Review

The term South-South is rapidly becoming a buzzword in globalization and international development studies, referring to the growing trade, investment, and financial relationships, as well as labor movements and economic cooperation, between countries in the Global South (i.e., “developing regions”). Comprising writings by international relations and public policy scholars based in the United States, Canada, India, Nigeria, Brazil, and Mexico, this edited volume seeks to outline the contours of an emerging, more multipolar world economy, thereby providing a fledgling academic appraisal of a topic of growing interest to a wider world of policymakers and businesspeople. While Rachel Thrasher and Adil Najam in the introduction briefly recall an earlier era of South-South cooperation, notably in the 1970s, the main attention is given to assessing the deepening and changing nature of economic interactions between countries within the Global South during the first decade of the twenty-first century. Exploring also how such interactions may develop in the future, this contemporary interest is motivated by a line of thought that sees potential in “South-South economic relations as more development friendly than their North-South counterparts” (p. 2). The early chapters focus on state-level initiatives to promote regional integration in Latin America, Africa, and the Asia-Pacific region. Laura Gómez-Mera (Chapter 1) suggests that interest in regional trade and economic cooperation in Latin America is a reaction against asymmetric North-South agreements. She identifies a “complex web of overlapping trade and economic arrangements” (p. 11), which is a feature of the volume. The poor implementation and compliance record with these regional agreements is another factor that emerges, including in Africa (Chapter 2) and the Asia-Pacific region (Chapters 3 and 4). The authors also consider how, from a public policy point of view, greater regional trade and economic integration could be accelerated. In Chapter 3, for the Asia-Pacific region, Nagesh Kumar suggests the potential of a balanced regional trading agreement, stronger physical connectivity, monetary and financial coordination, and cooperation for narrowing development gaps. In addition to these political arrangements, which seek to promote South-South engagement, such relations are also significant in global governance. In Chapter 5, Haroldo Ramanzini Jr. and Manuela Trindade Viana cite Brazil and India as examples of “political entrepreneurs,” being among a small group of countries who have been able to use the World Trade Organization forum to obtain greater leverage for the Global South. The following chapters empirically chart trade and investment, with a focus on the major economies of the Global South. Mariana Rangel finds that although in both Brazil and India, “the government is aiming at South-South cooperation, business is more oriented towards North-South projects” (chap. 6, p. 128). Focusing on Brazil, Alcides CostaVaz (in Chapter 7) points to a tension between the pragmatic trade and foreign policy orientation directed toward the Global North and political promotion of South-South relations. In Chapter 9, Kevin Gallagher argues China-LatinAmerican economic relations are “all business,” with China’s engagement “pragmatic” rather than part of a “grand geopolitical rationale” (p. 181), while Nader Habibi (Chapter 10) also suggests that growing trade and investment between “Chindia” and the Gulf Cooperation Council (GCC) countries “is not driven by ideological or political motives such as a deliberate 241 BO O K R EV EW