Food aid has been an important feature of international development assistance since the 1950s. Since that time, both the practice and the politics of food aid have seen significant change. This chapter outlines some of the key shifts in food aid policies and politics over this period, with a special focus on those trends that have occurred in the past decade. First, there has been a shift to the provision of untied food aid by some, but not all, donors. Second, the world food crisis of 2007–08 ushered in a new economic context of hunger in which food prices have become higher and more volatile. Third, a new Food Assistance Convention was agreed in 2012 to govern food aid. Each of these trends has introduced new challenges and uncertainties for international food aid policy, which in turn have affected the political dynamics around this type of international assistance.
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Foreign aid effectiveness is an area that is replete with controversy. This to a large extent is due to the mixed findings on the effects of aid that have been documented in the literature. This chapter provides a critical review of the literature on aid effectiveness, highlights the main factors that have been found to influence the impacts of aid, and synthesises the findings from a large number of relevant studies. The chapter reports that many scholars have documented the positive effects of aid but that a large number of other studies have shown that aid can have a negative impact on growth, institutions, democratization and governance. Overall, the existing evidence seems to point to the importance of narrowing the focus when studying the impact of aid by decomposing aid into its various categories while perhaps widening the focus when studying the factors that influence aid effectiveness.
John C. Anyanwu
This chapter focuses on foreign direct investment (FDI) from a global perspective. It reviews the theoretical perspectives and taxonomy of approaches to global FDI flows and presents some stylised facts on global FDI inflows and outflows. The chapter discusses the motives and drivers of global FDI inflows and the related empirical literature. In addition, global FDI incentives and policies are examined while concluding with some policy implications. Indeed, FDI can be a key driver of employment, technological progress, productivity improvements and the acceleration and sustenance of long-term economic growth. However, while FDI flows have been volatile over the past few decades, they have been dominated by the developed world. In spite of significant improvements in recent years, most developing countries are still suffer from persistent political instability and economic uncertainty, weak innovation, lack of technological readiness, poor business environment, poor regulatory framework, poor institutional frameworks, and weak FDI policies and incentives. To attract increased FDI to the developing economies, high priority should be given to improvements in governance systems and human capital development, among others.
Whatever the superficial plausibility of the claim that ‘globalisation is good for your health, mostly’, the evidence demands a more complex and nuanced view. Under neoliberal globalisation, the only variant on offer, future improvements in population health are likely to be more uncertain and more unevenly distributed. The chapter makes this case with specific reference to trade and investment agreements; cross-border ‘emerging markets’ including those in health-care services and agricultural land; and the worldwide reach of the negative externalities of globalised finance and financial crises. It concludes with an examination of the interplay of global influences and domestic politics, stressing the importance of considering individual cases and contexts.
Global organisations impact development processes and development policy formation in many ways. This chapter focuses on three broad types of global organisations: international governmental organisations (IGOs), international non-governmental organisations (INGOs), and multinational enterprises (MNEs). It reviews their basic characteristics and considers their role in development from a historical perspective. The chapter also considers how these three types of organisations have interacted over time within the broad United Nations system.
Global production networks (GPN) has invited significant attention of businesses, economists and policy makers in recent years. Global production networks have led to increased development, income and employment opportunities for skilled as well as unskilled workers in developing countries, and have created new development paths for these countries as they need not build their own value chains from scratch but, rather, can opt for industrialisation by joining the existing GPNs. It must, however, be noted that developed countries are likely to benefit more from GPNs as compared with developing countries as most of the income in a GPN is concentrated in activities that precede and succeed the manufacturing stage, performed mainly in developed countries. Developing countries can also seek higher gains from GPN participation through the appropriate transformation of their economies and by climbing the production network ladder by developing key producer services, such as telecommunication, information technology, logistics and transport, as these are important enablers of GPNs. Policy makers in developing countries should also be persuaded to invest resources in cross-cutting areas, such as infrastructure, transparent administration and technology transfer, in order to enhance gains from GPN participation.
Kenneth A. Reinert
This volume on globalisation and development is part of a larger Elgar Handbook series on globalisation. Its chapters engage two multidimensional concepts: globalisation and development. In doing so, it does not impose a particular conception of either. Rather, authors were given full rein to treat these subjects as they thought best in light of their particular subjects. The volume is structured around seven subjects: international trade, international production, international finance, migration, foreign aid, a broader view and challenges. The volume’s chapters provide important insights into each of these realms of globalisation and development.
Sarianna M. Lundan
This chapter examines the governance of multinational enterprises from two perspectives, namely, from the viewpoint of the owners and managers of the firm, and how the firm governs itself, particularly with respect to the relationship between the headquarters and subsidiaries, as well as between the subsidiaries and local actors in the host countries. The chapter suggests that, as MNEs from developed home countries have become increasingly geographically diverse in their operations, they have also become more diverse in terms of their corporate governance, including firms that are directly or indirectly owned by governments. Multinationals from developed countries have become accustomed to a wider societal role, which makes them visible as social and political actors not only in terms of their corporate social responsibility activities, but also as partners in various multi-stakeholder initiatives and public–private partnerships.
Edited by Kenneth A. Reinert
Amanda Klekowski von Koppenfels
Human trafficking, defined as the recruitment, transport or receipt of individuals for the purpose of exploitation, is perhaps the most negative phenomenon linked to globalisation. The link between migration and human trafficking is close, although domestic trafficking can and does occur. This chapter looks at human trafficking taking globalisation into account. It examines the questions of the definition and understanding of trafficking, as well as exploring the difficulties of establishing good quantitative measures of the extent of trafficking, and concludes with a look at the interactions between counter-trafficking efforts and border control.