Provision of basic services in slums: A review of the evidence on top‐down and bottom‐up approaches

This article synthesizes the evidence on the effectiveness of top‐down and bottom‐up approaches in providing basic services in slums in developing countries. The findings indicate that: (1) government‐led top‐down approaches focus predominantly on connectivity, but approaches led by community‐based organizations (CBOs) and non‐government organizations (NGOs) improve many additional dimensions of access; (2) legal recognition of slums improves access to services in both approaches; and (3) NGO and CBO involvement results in the right balance between the technical, social and financial resources required for effective service delivery.     

Foreign trade barriers and jobs in global supply chains

This article uses ILO global supply chain job estimates to study the impact on domestic jobs of foreign barriers to trade in goods and services. Empirical analysis largely confirms predictions derived from a theoretical model calibrated to WIOD data for 2000 and 2011. Barriers to trade in manufacturing and services are both found to have a cross‐border impact on jobs in their own sector and spill‐over effects in other sectors, the latter becoming stronger over time. This article shows the labour market consequences of the increased interconnectedness of countries and sectors through global supply chains, which suggests that trade policy can have significant external effects on foreign labour markets.     

Inflation and the misallocation of resources

This paper analyzes the effects of inflation on the resource allocation between the financial sector and the manufacturing sector. We develop a model with heterogeneous workers who can be employed either in the manufacturing sector, which produces a consumption good, or the financial sector, which provides liquidity services. A rise in inflation reduces the demand for labor in the manufacturing sector and increases the demand for financial services. This induces a shift of resources from the manufacturing sector to the financial sector and reduces consumption opportunities. An empirical investigation using 55 countries strongly supports the result that higher inflation increases the relative size of the financial sector.     

Trying to stay ahead of the curve in Chile's economic development: exploring a way out of the middle‐income trap through pragmatic export development

Underneath impressive growth levels, the Chilean economy displays signs of being caught in a middle‐income trap. It has been unable to improve its productivity, increase the added value of its exports or upgrade its value chain. Its economy cannot compete either with low‐wage countries or highly productive, innovative countries. Its export strategy based on export promotion seems to have outlived its usefulness. It achieved remarkable quantitative success, but must now attend qualitative attributes. Instead of regarding market‐driven export promotion and state‐led export development as substitutes, this article proposes to view them as alternatives in different stages of development. To choose the appropriate time, more attention should be given to non‐traditional, structural indicators, like export sophistication and political‐institutional capabilities.     

The Dynamics of Income Growth and Poverty: Evidence from Districts in India

This article examines the dynamics of the income‐distribution pattern in India during the post‐1991 economic reforms. It considers district‐level per‐capita income data across agriculture, manufacturing, services, and various constituent sub‐sectors, and finds evidence in favour of a uniform process of growth across sectors and regions, which has helped to reduce poverty. In particular, the article finds that growth in agricultural income and access to finance are important for this.     

WHAT IS HAPPENING TO THE IMPACT OF FINANCIAL DEEPENING ON ECONOMIC GROWTH?

Although the finance‐growth relationship is now firmly entrenched in the empirical literature, we show that it is not as strong in more recent data as it was in the original studies with data for the period from 1960 to 1989. We consider several explanations. First, we find that the incidence of financial crises is related to the dampening of the effect of financial deepening on growth. Excessive financial deepening or too rapid a growth of credit may have led to both inflation and weakened banking systems which in turn gave rise to growth‐inhibiting financial crises. Excessive financial deepening may also be a result of widespread financial liberalizations in the late 1980s and early 1990s in countries that lacked the legal or regulatory infrastructure to exploit financial development successfully. However, we find little indication that liberalizations played an important direct role in reducing the effect of finance. Similarly, there is little evidence that the growth of equity markets in recent years has substituted for debt financing and led to a reduced role of financial deepening on growth. (JEL E44, G10, O40)     

Demand Constraints on Agricultural Growth in East and Southern Africa: A General Equilibrium Analysis

This article analyses demand constraints on agricultural growth in seven countries of East and Southern Africa using an applied general equilibrium framework. It finds that both traditional and non‐traditional export crops have limited potential to raise incomes because of demand constraints (for traditional exports) or a relatively small base (for non‐traditional exports). The best prospects for agriculture‐led growth remain in the food sector, where domestic demand represents a large and growing market. Improvements in market efficiency and simultaneous growth in the livestock sectors can help spur demand further and avert falls in prices. Achieving rapid gains in farm incomes, however, also requires investment in rural infrastructure to reduce marketing costs, and demand‐ enhancing growth in the non‐agricultural sector to spur demand.     

Room at the top? — the development of South Africa's manufacturing industry 1939–1969

The emergence of a significant manufacturing sector is no index of a social formation's shift to independent economic development. South Africa's path of industrialisation since the Second World War shows precisely the opposite. Industrial growth has been predicated on the reproduction of forms of capitalist production whose shape and rhythm of change are set in the advanced capitalist countries. Thus, South Africa's trajectory of accumulation in the recent phase may be characterised as ‘dependent industrialisation’. This is clearly seen in the domination of manufacturing industry by high‐technology, monopoly interests, closely interlinked with foreign investors and the state.     

Structural constraints and excess capacity: an international comparison of manufacturing firms

Excess capacity results in real and opportunity costs as well as lower factor productivity. Conventionally, variation in capacity utilisation rates has been explained with reference to the business cycles and market imperfections. In this article, we show that these two factors do not always fully explain the causes of idle capacity. Our findings suggest that manufacturing firms in low‐income countries tend to have lower capacity utilisation (CU) rates than those in middle‐ and upper‐middle‐income groups. To explain this peculiarity, it is proposed in this article that the level of excess capacity partly depends on supply‐side conditions and institutional variables. The findings provide strong support for this view and suggest that there are gains to be made in the manufacturing industries of the lower‐income countries through improvements in the structural conditions.     

The restructuring of the U.K. financial services industry in the 1990s: a reversal of fortune?

Whereas for much of the 1980s the financial services industry was characterised by growth and expansion, the late 1980s and early 1990s was a period of redundancies and financial losses. This paper seeks to explain this reversal of fortune and the responses of the financial services industry. The restructuring of the financial System at a global level, through a process of disintermediation, and at a national level, in response to financial re-regulation, led to an intensification of competition between financial institutions and helped produce a developed countries debt crisis, founded in personal and corporate indebtedness. In the wake of this crisis, the financial services industry has been in transition. Bureaucratic labour market models have been overturned in favour of more flexible variants, while at the same time many financial services firms have engaged in the wholesale spatial reorganisation of their activities. One important consequence has been a process of ‘financial infrastructure withdrawal’, by which services and operations are withdrawn from certain social groups and certain localities. This process, which revolves around a rubric of risk reduction and a ‘flight to quality’, has introduced an element of exclusion and closure to the operation of financial Systems within developed countries. In this sense, the reaction of the financial services industry to the developed countries debt crisis mirrors that which followed the less developed countries debt crisis of the early 1980s; that is, abandonment and retreat to a more affluent client base. As was the case during the less developed countries debt crisis, the current process of financial infrastructure withdrawal has serious social and economic implications for those social groups and localities abandoned by the financial community.     

Recession and Migration: A New Era for Labor Migration?

The current recession, the worst in a half century, is likely to affect international migration differently than past recessions. In 1973–1974 and 1981–1982, rising oil prices led to recessions in oil‐importing countries and economic booms in oil‐exporting countries, enabling some migrants to shift from bust to boom areas, as from Europe to the Middle East. The 1997–1998 Asian financial crisis did not spread globally, and was followed by a relatively quick resumption of economic and job growth that attracted migrant workers. The 2008–2009 recession is most severe in countries that had the most severe debt excesses, including the U.S., Spain, and Eastern Europe, and in countries most dependent on trade, including many Asian countries. New deployments of migrants are likely to slow, but what is not yet clear is how many migrants who lose jobs will remain abroad.     

Economic Dependence,Overurbanization, and Economic Growth: A Study of Less Developed Countries*

Excessively large and rapidly growing urban populations characterize social structural change in less-developed countries. This is in contrast to the developmental patterns which accompanied structural transformation in the presently rich, industrialized countries of the world. Many less-developed countries are thus said to be “overurbanized.” In this paper, quantitative cross-national data are brought to bear on the hypothesis that overurbanization has been fue1ed by the economic dependence to which these countries are, to varying degrees, subject. The hypothesis that the degree of overurbanization and changes therein inhibit economic growth is also examined. But the overurbanization question is often framed as a matter of the relative distribution of the labor force into service and manufacturing occupations. We herefore examine parallel hypotheses which define overurbanization in terms of the urban labor distribution. Constraints on the availability of labor force data, however, relegate these findings to a subordinate role. Panel regression analysis provides support for the proposition that dependence upon foreign capital leads to overurbanization (defined as either the urban/development relationship or in terms of labor structure imbalance). Furthermore, relative increases in overnrbanization are consistently accompanied by relative declines in per capita economic growth, though the effects of higher levels of overurbanization do not appear to impede economic growth.     

Migration and Development: Mexico and Turkey

Mexico and Turkey are among the world's leading labor‐sending nations, with about 11 million Mexican‐born and 3.5 million Turkish‐born persons abroad in 2006. After two decades of uneven growth and job creation as well as persisting poverty and inequality, there are debates within both countries asking whether economic reforms have gone far enough to put the economy on a stable footing for sustained and equitable growth, or whether emigration (pressure) will continue. Some Mexicans are seeking to deepen North American Free Trade Agreement, while most Turks support entry into the European Union as a way of speeding economic growth.     

How manufacturing industries connect cities across the world: extending research on ‘multiple globalizations’

In this article, I concentrate on a macro‐level analysis of inter‐urban linkages in a ‘world city network’. Empirical research on the formation of a world city network has mostly concentrated on global service providers. Yet, globally operating manufacturing firms also choose distinct urban regions throughout the world as locational anchoring points. In this article, using social network analysis, I present the first global‐scale analysis of how manufacturing firms connected cities across the world (in 2010). To detect the differing ‘sectoral profiles’ and nodal centralities of cities functioning as geographical hubs of transnational production networks, it is necessary to analyse the network structure of distinct industrial subsectors within the global urban system. The data collected for analysis cover 120 top global firms from three manufacturing subsectors, of which two are analysed in more detail than the third. I then compare the nodal centralities of cities included in these subsectors' global networks with the GaWC research on the producer services sector that has been at the centre of previous analyses of the world city network. The comparison reveals the cities' differing positioning within ‘multiple globalizations’. The aim of the article is to extend research on world city networks.     

Scotland's children and the new parliament

The establishment of the Scottish Parliament in 1999 has raised the profile of children's issues and allowed more time for debate and legislation. This has led to some key developments, including a decision to establish a Children's Commissioner, more legislative provisions enabling children's views to be taken into account, and a more explicit commitment to ‘child and family centred’ working. A Ministerial Task Force has been established to ‘drive forward progress on integrated children's services’. Some pre‐school and school age child care services have seen significant growth but the structure of services remains fragmented. A National Education Debate has strengthened the Scottish Executive's resolve to maintain its distinctive education policies and reaffirm its commitment to comprehensive schooling and an ‘equality of outcomes’ approach. New Community Schools put education in the driving seat of change, offering a vehicle for establishing new kinds of services and relationships between services, sectors and age groups. Copyright © 2003 John Wiley & Sons, Ltd.     

Trade and jobs in Europe: The role of mode 5 service exports

Over the past two decades, EU employment supported by extra‐EU exports of goods and services has increased markedly, with a shift towards jobs supported by services exported as part of manufactured goods. The authors seek further insight into this trend through the full decomposition of trade flows using a multi‐regional input–output model and the World Input–Output Database for 40 countries and 35 industries over the period 1995–2011. Their findings call for reflection by policy‐makers regarding the four traditional modes of service supply under the General Agreement on Trade in Services with a view to adequately capturing this new reality in global trade.     

World Income Distribution and Tax Reform: What Tax Systems Do Low‐Income Countries Need?

This article develops a new method for assessing relative direct tax burdens across all countries, treating the world as a single economic entity and assuming identical preferences across countries. Empirical results show that the new direct tax burden indices are significantly high in low‐income countries in comparison with middle‐ and high‐income countries. This article argues in favour of narrowing the base of income and capital gains tax in low‐income countries and a long‐term convergence of the tax burden levels across countries. Future research into tax reforms in low‐income countries should focus simultaneously on economic growth, quality of life and the natural environment.     

Family Focused Care for Refugees and Displaced Populations: Global Opportunities for Family Therapists

Recent global crises have created a significant increase in the number of people leaving their countries. Distress experienced by these refugees often leads to posttraumatic stress disorder and depression and can also result in psychotic disorders, substance abuse, and interpersonal violence. The World Health Organization leads the organizing of refugee services as part of a larger initiative to provide mental health services to citizens in low‐ and middle‐income countries. The World Health Organization has identified challenges in providing care, including a provider shortage, issues with how refugees access and receive care and a lack of uniformity in mental health services. By applying the values and systemic orientation of the profession, family therapists can address some of the challenges in treating mental health concerns of these at‐risk populations.     

The Scalability of the Shack/Slum Dwellers International Methodology: Context and Constraint in Cape Town

Shack/Slum Dwellers International (SDI) was created by the Indian Alliance and South African partners. SDI has affiliates in 33 countries and is probably the world's largest network of community peer‐to‐peer knowledge exchange in the area of slum/informal settlement upgrading. Common to the Indian Alliance's ‘Federation Model’ and the SDI methodology are a commitment to community organization and community‐led upgrading that is undertaken in partnership with local government. In a context where it is projected that there will be two billion slum dwellers by 2030, the ambition is to enable tens of millions of households to obtain upgraded housing and services. This article questions the scalability and universality of the SDI methodology in Cape Town, where the SDI Secretariat is located.     

The 3×1 Programme and criminal violence in Mexico

Are levels of criminal violence lower where emigrants collaborate with the state authorities in the funding and provision of public goods and services? In this article, I examine the causal effect on violence levels in the municipalities participating in Mexico's Three‐for‐One (3×1) Programme for Migrants. Using municipal‐level data for the period between 2001 and 2010, the analysis shows that the implementation of this programme led to an increase in violence in the municipalities in question, and that this effect is driven by the ‘war on drugs’ initiated by the Mexican government in 2006. Because cartels splinter when kingpins are captured, they look for sources of revenue other than drug smuggling. The budgetary gains obtained via the 3×1 Programme inadvertently increased the returns of extortion and directed the attention of organized criminals to the participant municipalities. The evidence highlights some of the unintended effects that the leveraging of emigrants' money may have in home countries where governments make the so‐called ‘kingpin strategy’ a centrepiece of their security strategy.