Entries tagged with “globalization”.
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Wed 27 Mar 2013
While many paint the combined impact of climate change and global markets as something new, unpredictable, and unmanageable, they fail to grasp that most situations we are projected to see in the next few decades* have been experienced before in the form of previous extremes. Take, for example, the figure below:
This is a graph of the annual rainfall at one rain gauge in Ghana, near where I conducted the research that made up a big part of my book Delivering Development. The downward trend in rainfall is clear (and representative of the trend in this part of coastal West Africa that, according to my colleagues at IRI, continues to this day and is confirmed by satellite measurements). There are complex things happening inside these annual figures, including shifting timing of rainfall, but for the purposes of discussion here, it serves to make a point. While there is indeed a downward trend that continues to this day, there have already been several years where the total precipitation was much lower than the current average precipitation, or the likely annual precipitation for the next few decades.
This means is that the farmers in Dominase and Ponkrum, like so many around the world, have already seen the future – that is, they have already lived through at least one, if not several, seasons like those we expect to become the norm some decades in the future. These farmers survived those seasons, and learned from them, adjusting their expectations and strategies to account for the possibility of recurrence. These adjustments are likely over- or under-compensating for the likelihood of recurrence right now, as livelihoods strategies in these villages are largely reactive, reflecting last season’s events more than the average season. Further, the year-to-year hedging of farms against climate variability can be a costly practice – the likely “insurance premium” of lost production in a good year (due to planting in less-than-ideal, but precipitation-hedged situations like the tops and bottoms of hills – see my discussion in Chapter 4 of Delivering Development) probably eats up somewhere between 10% and 20% of total potential production. So these management strategies are not ideal. But they do reflect local capacities to adjust and account for extreme conditions, the extreme rainfall or drought events out along the tails of historical distributions whose unpredictable recurrences characterize a changing climate regime. Many of these farmers have little or no access to inputs, limited to no access to seasonal forecasts, and live in states without safety nets, yet they have repeatedly survived very difficult seasons. Clearly, their capacity for survival in an uncertain environment and economy is worthy of our respect.
This is not a phenomenon specific to Ghana. For example, the farmers in southern Mali with whom I (and many others) have been working to deliver better and more relevant climate services, such as seasonal and short-term forecasts. Most, if not all, of these farmers are using local indicators, such as the flowering of a particular tree or the emergence of a particular insect, as indicators that help them time various activities in their agricultural cycle. Many trust their local indicators more than the forecasts, perhaps with some reason – their indicators actually seem to work and the forecasts are not yet as accurate as anyone would like. But these indicators work under current climate regimes, and these regimes are changing. At some point, the tree will start to flower at a different, perhaps less appropriate time, or simply cease to flower. The insect will emerge at a different time, or perhaps be driven away by the emergence of new predators that can now move into the area. If the climate continues to change, local indicators will eventually fail.
I humbly suggest that instead of reengineering entire agroecological systems and their associated economies in the here and now (a fairly high risk enterprise), we should be building upon the capacities that already exist. For example, we can plan for the eventual failure of local indicators – we can study the indicators to understand under what conditions their behaviors will change, identify likely timeframes in which such changes are likely to occur, and create of new tools and sources of information that will be there for farmers when their current sources of information no longer work. We should be designing these tools and that information with the farmers, answering the questions they have (as opposed to the questions we want to ask). We should be building on local capacity, not succumbing to crisis narratives that suggest that these farmers have little capacity, either to manage their current environment or to change with the environment.
Farmers in the Global South have already fed the future. Perhaps they did not do it all that well, and all they managed was to stave off catastrophe. But given the absence of safety nets in most places in the Global South (see Theme 3, points 2 and 3), and the limited access so many farmers have to inputs and irrigation, avoiding catastrophe is an accomplishment that warrants study and serious consideration. We should build on that capacity, not blow it up.
The key principals and points:
1) A future under climate change is not a great unknown for farmers in the Global South. Most farmers have already managed several seasons as difficult, or more difficult, than what we project to be normal in the next few decades. Presuming these farmers are facing a catastrophe they cannot see coming fails to grasp the ways in which these past seasons inform contemporary planning.
2) Farmers have already developed strategies for addressing extreme seasons (i.e. drought or excessive precipitation). We should start with an understanding of what they already do, and why, before moving in with our interventions, lest we inadvertently undo otherwise functional safety nets.
3) Existing indigenous strategies for managing climate variability are not perfect. They tend to overestimate or underestimate actual risks of particular weather and climate states, tend to magnify the importance of the previous season (as opposed to historical averages, or current trends) when planning for the next season, and tend to be very costly in terms of lost potential agricultural productivity.
4) Current indigenous tools for making agricultural decisions, such as local indicators, are likely more robust than any climate product we can deliver right now. Just because this information comes in the form of a plant or animal behavior does not make it any less valid.
5) Current indigenous tools for making agricultural decisions will likely start to fail as climate regimes change. This fact presents an opportunity for development organizations to start working with farmers to identify useful information and ways of providing it such that this information is available when local indicators fail.
*Given the propagation of uncertainty in models of the global climate, global water availability, global land cover, the global economy, and global population (all of which, incidentally, impact one another), I don’t pay much attention to model results beyond about 2040, with 2030 being the really outer threshold of information that might usefully inform planning or our understanding of biophysical process. On the 100-year scale, we may as well be throwing darts at a wall as running models. I have no idea why we bother.
Sun 24 Mar 2013
In the world of food security and agricultural development there is a tendency to see market integration as a panacea for problems of hunger (see Theme 2, point 4). There is ample evidence that market integration creates opportunities for farmers by connecting them to the vast sums of money at play in the global food markets. But there is equally ample evidence pointing to the fact that markets are never just a solution – negotiating global markets from the position of a small producer presents significant challenges such as the management of commodity price instability (without meaningful market leverage). The academic side, and much of the implementation side, of the food security world already recognizes this issue, driven by (repeated) studies/experiences of food insecurity and famine showing that markets are nearly always the most important driver of this stress on the global poor. Planning for the benefits of market integration without serious thought about how to manage the potential downsides of markets is a recipe for disaster.
For example, simplifying one’s farm to focus on only a few key crops for which there is “comparative advantage”, and then using the proceeds to buy food, clothing, shelter and other necessities, works great when the market for those crops is strong. But what happens when the food you need to buy becomes more dear than the crops you are growing, for example through food price spikes or a shift in markets that leave one’s farm worth only a fraction of what is needed to feed and clothe one’s family? In the world’s poorest countries, where most food security and agricultural development work takes place, there is little capacity to provide safety nets to vulnerable citizens that might address such outcomes.
This is not a call for the provision of these safety nets (microinsurance is very interesting, but a long way from implementation). While useful and, in some contexts, critical, they are, in the end, band-aids for a larger conceptual problem – the framing of market engagement as a panacea for the problems of agricultural development and food security. Often, such programs also presume a lack of existing safety nets at the community or household level – a sort of “we can’t make things worse” mentality that marks much development thought. However, farmers in these countries have long operated without a state-level safety net. They hedge against all kinds of uncertainties, from the weather to markets. For example, one form of hedging I have seen in my own work is an emphasis on growing a mix of crops that can be sold or eaten, depending on market and weather conditions. If, in coastal Ghana, you are growing maize and cassava as your principal crops, you can sell both in years where the market is good, and you can eat both in years where the market turns on you. I have referred to opting out of markets as temporary deglobalization, where people opt in and out of markets as they gauge their risks and opportunities.
Forcing farmers away from this model, toward one that focuses on enhancing the economic efficiency of agricultural production by reducing the focus of a country and its farmers to a few crops that are their “comparative advantage”, and which they should sell to purchase the rest of their dietary needs, removes the option of turning away from markets and eating the crops in conditions of years where the markets are not favorable. This is even more true when some of that newly reduced crop mix only takes value from sale on global markets (i.e. cocoa) and/or which cannot be eaten (i.e. cotton). In short, such restructuring in the name of economic efficiency makes people dependent on the political structures of the state that govern the markets in which they participate. Most of our work takes place in the Global South, where the state rarely has the capacity to step in and help in times of crisis. It is pretty easy to do the math here: done wrong, food security programs principally framed around ideas of economic efficiency can enhance state capacity to extract value from farmers without a comparable improvement in the delivery of services or safety nets. This is an acceptable outcome if you are trying to compel people to submit to the state and the markets the state regulates, which is one way to boost measurable GDP and state revenue. However, it is really bad if you are actually trying to improve people’s food security.
The key points and principals here:
1) Are you addressing food insecurity or strengthening the state’s capacity to raise revenue and measure economic activity? These are not the same thing – generally, they are at odds with one another, as making agricultural practice easier to see and measure only serves to improve the capacity to extract revenues from farmers, without any guarantee of improved services proceeding from those revenues.
2) Economic efficiency is a desirable characteristic of agricultural livelihoods, but in the absence of safety nets cannot be the organizing principal of food security interventions. All else being equal, it is better when farmers use their scarce resources as efficiently as possible. However, the measurement of efficiency must take place within an assessment of the various risks currently managed through “inefficiencies” – as many such inefficiencies are in fact parts of robust, community- and household-level safety nets.
3) Food security programming should be able to identify the difference between an inefficiency and a critical part of a community- or household-level safety net. Regardless of the consequences for economic efficiency, programs and projects should not destabilize these until such time as new, reliable safety nets exist to take their place.
4) Opting out is OK. Farmers should be allowed to structure their farms such that they can opt out of markets if things turn bad, even if this limits their total incomes in “good”/optimal years. This should not be assessed in terms of the average outcome, when best and worst cases are averaged. Your best case is some more money. Your worst case is severe deprivation and death. These are not equal. Averting the latter is more important than achieving the former.
Mon 16 Apr 2012
Posted by Ed under Academia, Adaptation, Africa, Climate Change, Delivering Development, development, environment, globalization, Livelihoods, policy, research
Comments Off on Another talk – Gainsville, anyone?
I will be speaking about my book and research at the University of Florida on Friday as part of the Glen R. Anderson Visiting Lectureship. Poster here:
Hope to see folks there!
Wed 9 Nov 2011
Posted by Ed under Adaptation, Africa, Climate Change, Delivering Development, development, environment, globalization, Livelihoods, migration, research, sustainable development
Comments Off on Upcoming Talk
I’ll be running my mouth about the book again at Chatham University on December 2nd. Chatham has some very cool stuff going in sustainability and the environment (a new school!), including a new Eden Hall Campus in Richland Township, PA. My talk will actually be out on that campus, and not in the Shadyside campus . . . directions are here.
The flyer (they’ve done a nice job on it):
Hope to see some of you there . . .
Sun 30 Oct 2011
So, it seems I have been challenged/called out/what-have-you by the folks at Imagine There Is No . . . over what I would do (as opposed to critique) about development. At least I think that is what is going on, given that I received this tweet from them:
@edwardrcarr what would You do with 1 Billion $ for #development? bit.ly/rQrUOd #The.1.Bill.$.Question
In general, I think this is a fair question. Critique is nice, but at the end of the day I strive to build something from my critiques. As I tell my grad students, I can train a monkey to take something apart – there isn’t much talent to that. On the other hand, rebuilding something from whatever you just dismantled actually requires talent. I admit to being a bit concerned about calling what I build “better”, mostly because such judgments gloss over the fact that any development intervention produces winners and losers, and therefore even a “better” intervention will probably not be better for someone. I prefer to think about doing things differently, with an eye toward resolving some of the issues that I critique.
So, I will endeavor to answer – but first I must point out that asking someone what s/he would do for development with $1 billion is a very naive question. I appreciate its spirit, but there isn’t much point to laying down a challenge that has little alignment with how the world works. I think this is worth pointing out in light of the post on Imagine There Is No . . ., as they seem to be tweaking Bill Easterly for not having a good answer to their question. However, for anyone who has ever worked for a development agency, the question “on what would you spend a billion dollars” comes off as a gotcha question because it is sort of nonsensical. While the question might be phrased to make us think about an ideal world, those of us engaged in the doing of development who take its critique and rethinking seriously immediately start thinking about the sorts of things that would have to happen to make spending $1 billion possible and practical. Those problems are legion . . . and pretty much any answer you give to the question is open to a lot of critique, either from a practical standpoint (great idea that is totally impractical) or from the critique side (and idea that is just replicating existing problems). When caught in a no-win situation, the best option is not to answer at all. Sure, we should imagine a perfect world (after all, according to A World Of Difference, I am “something of a radical thinker”), but we do not work in that world – and people live in the Global South right now, so anything we do necessarily must engage with the imperfections of the now even as we try to transcend them.
Given all of this, I offer the following important caveats to my answer:
1) I am presuming that I will receive this money as individual and not as part of any existing organization, as organizations have structures, mandates and histories that greatly shape what they can do.
2) I am presuming that I have my own organization, and that it already has sufficient staff to program $1 billion dollars – so a lot of contracting officers and lawyers are in place. Spending money is a lot harder than you’d think.
3) I am presuming that I answer only to myself and the folks in the Global South. Monitoring and evaluation are some of the biggest constraints on how we do development today. As I said in my talk at SAIS a little while ago, it is all well and good to argue that development merely catalyzes change in complex systems, which makes its outcomes inherently unpredictable. It is entirely another to program against that understanding – if the possible outcomes of a given intervention are hard to predict, how do you know which indicators to choose? How can you build an evaluation system that allows you to capture unintended positive and negative outcomes as the project matures without looking like you are fudging the numbers? This sounds like constrained thinking, but it is reality for anyone working in a big donor agency, and for all of the folks who implement the work of those agencies.
4) I am presuming there are enough qualified staff out there willing to quit what they are doing and come work for this project . . . and I am going to need a hell of a lot of staff.
5) I am presuming that I am expected to accomplish something in the relatively short term – i.e. 3-5 years, as well as trigger transformative changes in the Global South over the long haul. If you don’t produce some results relatively soon, people will bail out on you.
All of these, except for 5), are giant caveats that basically divorce the question and its answer from reality. I just need to point that out. Because of these caveats, my answer here cannot be interpreted as a critique of my current employer, or indeed any other development organization – an answer that would also serve as a critique of those institutions would have to engage with their realities, blowing out a lot of my caveats above . . . sorry, but that’s reality, and it is really important to acknowledge the limits of any answer to such a loaded question.
So, here goes. If I had $1 billion, I would spend it 1) figuring out what people really do to manage the challenges they face day-to-day, 2) identifying which of these activities are most effective at addressing those challenges and why, 3) evaluating whether any of these activities can be brought to scale or introduced to new places, and 4) bringing these ideas to scale.
Basically, I would spend $1 billion dollars on the argument “the new big idea is no more big ideas.”
Why would I do this, and do it this way? Well, I believe that in a general way those of us working in development have very poor information about what is actually happening in the Global South, in the places where the challenges to human well-being are most acute. We have a lot of assumptions about what is happening and why, but these are very often wrong. I wrote a whole book making this point – rather convincingly, if some of the reviews are to be believed. Because we don’t know what is happening, and our assumptions are wide of the mark, a lot of the interventions we design and implement are irrelevant (at best) or inappropriate (at worst) to the intended beneficiaries. Basically, the claim (a la Sachs and the Millennium Villages Project) that there are proven development interventions is crap. If we had known, proven interventions WE WOULD BE USING THEM. To assume otherwise is to basically slander the bulk of people working on development as either insufficiently motivated (if we weren’t so damn lazy, and we really cared about poor people, we could fix all of the problems in the world with these proven interventions) or to argue that there simply needs to be more money spent on these interventions to fix everything (except in many cases there is little evidence that funding is the principal cause of project failure). Of course, this is exactly what Sachs argues when asking for more support for the MVP, or when he is attacking anyone who dares critique the project.
The only way to really know what is happening is to get out there and talk to people. When you do, what you find is that the folks we classify as the “global poor” are hardly helpless. They are remarkably capable people who make livings under very difficult circumstances with very little resource and limited fallback options. They know their environments, their economy, and their society far better than anyone from the outside ever will. They are, in short, remarkable resources that should be treated as treasured repositories of human knowledge, not as a bunch of children who can’t work things out for themselves. $1 billion would get us a lot of people in a lot of places doing a lot of learning . . . and this sort of thing can be programmed to run over 6 months to a year to run fieldwork, do some data analysis, and start producing tailored understandings of what works and why in different places . . . which then makes it relatively easy to start identifying opportunities for scale-up. Actually, the scale-up could be done really easily, and could be very responsive to local needs, if we would just set up a means of letting communities speak to one another in a free and open manner – a network that let people in the Global South ask each other questions, and offer their answers and solutions, to one another. Members of this project from the Global North, from the Universities and from development organizations, could work with communities to convey the lessons the project has gleaned from various activities in various places to help transfer ideas and technology in a manner that facilitates their productive introduction in new contexts. So I suppose I would have to carve part of the $1 billion off for that network, but it would come in under the scale-up component of my project. Eventually, I suspect this sort of network would also become a means of learning about what is happening in the Global South as well . . .
With any luck at all, by year 3 we would see the cross-fertilization of all kinds of locally-appropriate ideas and technology happening around the world and the establishment of a nascent network that could build on this momentum to yield even more information about what people are already doing, and what challenges they really face. We would have started a process that has immediate impacts, but can work in tandem with the generational timescales of social change that are necessary to bring about major changes in any place. We would have started a process that likely could not be stopped. How it would play out is anyone’s guess . . . but it would sure look different than whatever we are doing now.
Tue 6 Sep 2011
Posted by Ed under development, environment, policy, research
Comments Off on Quick thought: forget predictive markets . . . I’m talking commodities markets
OK, a last thought on the development initiatives and markets thread: let’s leave the predictive markets thing aside for the moment, and get to what I think is a more serious question for development initiatives – do we use all the information we might to evaluate the likely impact of our programs? I think a lot of folks misread the intent of my initial post – I was NOT suggesting we bet on mortality rates and other direct measures of project effectiveness. That is something I could see as an academic exercise, but is way too morbid for my tastes, even in that setting.
But everyone who lunged in that direction seemed to miss the point that any major development initiative will, if it succeeds, have radiating impacts through different markets. That is, a successful food security initiative will change harvest sizes of different crops, thereby influencing commodities markets. A successful public health intervention might increase the size of the workforce, or its efficiency. And so on. My simple thought was that any fund investor worth his/her salt should be examining these initiatives and their expected outcomes to decide 1) if the initiative worked, what markets might be affected, how and when and 2) do they think the initiative will actually work.
If there is no movement around these initiatives, it seems to me that these two factors might be important – at the first step in this decision-making, investors might decide that in the event of a successful intervention, the markets affected might not be accessible or profitable, or the timeframe of any movement in the market might be so long as to make immediate response unnecessary. Thus, we would see no market response to the announcement of an intervention. At that point, it doesn’t matter if the intervention will work or not – that assessment never comes into the picture.
However, in at least some cases, I have to think that there are initiatives out there (in a world of rising food prices, I am a bit fixated on food security at the moment) that would affect significant markets, and not only at a national scale (where markets might be illiquid or otherwise inaccessible). Take the case of cocoa and Cote d’Ivoire this past winter: the civil conflict in CIV cut off a significant amount of global supply, and futures markets got skittish over the further constriction of trade, driving cocoa prices upward. This is a niche crop, heavily produced by only a few countries, but the price movement could have meant big dollars for a fund that correctly anticipated this trend. Surely there are (or will be) food security initiatives that could similarly affect the overall supplies of and access to particular (perhaps niche) crops for entire regions, or even shift global availability/perception enough to shift commodities prices in much larger, more transparent markets in the short term. Don’t fixate on national markets for these initiatives – what about really big development movers that could affect global supplies of grain in an era where all the slack has been taken out of various global grain markets? You can’t tell me that everyone at these trading desks is simply ignoring the food security world . . . surely they are at least assessing through step 1) above. So if there is no market response to these initiatives, either the timeframe of movement is too distant to warrant interest, or the traders simply don’t think these initiatives will succeed enough to significantly influence the markets in which they trade. Perhaps the price of oil and its impact on transport is much, much more important than increasing harvest size when it comes to shaping food commodities prices . . . in which case, it would probably be good for those designing food security initiatives to know this at the outset and address it in project design (for example by thinking about transportation issues as integral to the initiative).
Of course, there is option 3): traders have no idea what sorts of initiatives are out there, and are operating in ignorance of these potential large drivers. This is entirely possible, but a bit hard to believe . . .
Tue 6 Sep 2011
Lots of comments pouring in via twitter regarding my earlier post on development initiatives and markets. First, I found it interesting that readers went in two directions – they either took the post to be about prediction markets alone, or they caught the reference to hedge funds and realized that I was talking about “betting” in a much more general sense: that is, in the sense of hedge fund investment, which is really a set of (ideally) well-researched, carefully-hedged bets on the direction of particular stocks, commodities and sometimes whole segments of the market.
For now, let’s take up the issue of predictive markets. I love Bill Easterly’s response tweet, asking what development initiative I (or anyone else) would bet my own money on. I think prediction markets are interesting tools. They are hardly perfect, as like other markets they are subject to bubbles and manipulation, but there is some evidence to suggest that they do yield interesting information under the right conditions. It would be interesting to set up parallel prediction markets, and populate one with development professionals at agencies and NGOs, one with development academics, and one that blends the two, and then have them start to buy and sell the likelihood of success (as defined by the initiative, both in terms of outcomes and timeframe) for any number of development initiatives. While I doubt these parallel markets would move in lockstep, I wonder if they would come to radically different assessments of these initiatives. And we could examine how well they worked as predictive devices. I’m pretty sure most academics would have started shorting the Millennium Village Project at its inception (academic paper here) . . . so what things would the development blogosphere/twittersphere short today? What would you go long on (that is, what would you hold in the expectation it would meet expectations and rise in value)? Have at it in the comments . . .
I’ll address the wider meaning of “betting” that I was also aiming at later . . .
Mon 5 Sep 2011
Welcome to a new feature of Open the Echo Chamber, a quick post on something that interests me. Yes, I am capable of writing less than 1000 words in a post, but most of the time I take on subjects that need a lot of attention. Going forward, I am going to try to intersperse some “quick thoughts” on the blog for those who lack the 15 minutes and headspace to deal with my longer fare . . .
I’ve been doing a lot of reading about hedge funds lately, and it recently hit me: does anyone in the markets bet for or against development initiatives? It seems to me that you could – after all, a big initiative from either a multilateral or large bilateral donor will often come with quite a bit of money attached (at least initially), a lot of publicity, and some clearly stated goals that are almost always tied to economic growth or diversification. So, do investors look at these initiatives and bet for or against them? I’m not saying they bet directly on an initiative, but on its outcome: for example, do funds look at large food security initiatives in a particular country and bet on the prices of the crops involved in that initiative?
Here is why I care: if nobody is betting on them, it pretty much signals that these initiatives are largely irrelevant. Either they are not large enough to move any market in the short or long term, or they are not aimed at anything likely to induce a transformation of economy and society through some set of cascading impacts in the long term. If this is the case, it seems to me we ought to back out of those initiatives right away. This is not to say that we should not be addressing the needs of the most vulnerable people in the world, but to suggest that an absence of interest in these initiatives might mean that our efforts to address these needs are not likely to come to much.
On the other hand, if we see significant betting on the outcomes of initiatives, it seems to me we might start to look at the direction of this betting (short or long) to get a sense of how things are likely to play out, and start looking for problems/leveraging opportunities as soon as possible.
Just a quick thought . . .
Tue 29 Mar 2011
Posted by Ed under Adaptation, Africa, Climate Change, Delivering Development, development, Development Institutions, environment, Food Security, globalization, Livelihoods, policy, research
On Global Dashboard Alex Evans discusses a report he wrote for ActionAid on critical uncertainties for development between the present and 2020. Given Alex got to distill a bunch of futures studies, scenarios and outlooks into this report, I have to say this: I want his job.
The list he produces is quite interesting. In distilled form, they are:
1. What is the global balance of power in 2020?
2. Will job creation keep pace with demographic change to 2020?
3. Is there serious global monetary reform by 2020?
4. Who will benefit from the projected ‘avalanche of technology’ by 2020?
5. Will the world face up to the equity questions that come with a world of limits by 2020?
6. Is global trade in decline by 2020?
7. How has the nature of political influence changed by 2020?
8. What will the major global shocks be between now and 2020?
All are fair questions. And, in general, I like his 10 recommendations for addressing these challenges:
1. Be ready (because shocks will be the key drivers of change)
2. Talk about resilience (because the poor are in the firing line)
3. Put your members in charge (because they can bypass you)
4. Talk about fair shares (because limits change everything)
5. Specialise in coalitions (and not just of civil society organisations)
6. Take on the emerging economies (including from within)
7. Brings news from elsewhere (because innovation will come from the edges)
8. Expect failure (and look for the silver lining)
9. Work for poor people, not poor countries (as most of the former are outside the latter)
10. Be a storyteller (because stories create worldviews)
I particularly like #10 here, as it was exactly this idea that motivated me to write Delivering Development. And #7 is more or less the political challenge I lay out in the last 1/4 of the book. #9 is a clear reference to Andy Sumner’s work on the New Bottom Billion, which everyone should be looking at right now. In short, Alex and I are on the same page here.
I have two bits of constructive criticism to offer that I think would strengthen this report – and would be easy edits. First, I think Alex has made a bit of a mistake in limiting his concern for environmental shocks to climate shocks. These sorts of shocks are, of course, critical (hell, welcome to my current job), but there are other shocks out there that are perhaps not best captured as climate shocks on such a short timescale. For example, ecological collapse from overuse/misuse of ecosystem resources (see the Millennium Ecosystem Assessment) may have nothing at all to do with climate change – overfishing is currently crushing most major global fisheries, and the connection between this behavior and climate change is somewhat distant, at best. We’ve been driving several ecosystems off cliffs for some time now, and one wonders when resilience will fail and a state change will set in. It is near-impossible to know what the new state of a stressed ecosystem will be after a state change, so this is really a radical uncertainty we need to be thinking about.
Second, I am concerned that Stevens’ claim about the collapse of globalization bringing about “savage” negative impacts on the developing world. Such a claim strikes me as overgeneralized and therefore missing the complexity of the challenge such a collapse might bring – and it is a bit ironic, given his admonition to “talk about resilience” above. I think that some people (urban dwellers in particular) would likely be very hard hit – indeed, the term savage might actually apply to those who are heavily integrated into global markets simply by the fact they are living in large cities whose economies are driven by global linkages. And certainly those in marginal rural environments who are already subject to crop failure and other challenges will likely suffer greatly from the loss of market opportunities and perhaps humanitarian assistance (look at contemporary inland Somalia for an illustration of what I am talking about here). However, others (the bulk of rural farmers with significant subsistence components to their agricultural activities, or the option to convert activities to subsistence) have the option to pull back from market engagement and still make a stable living. Opportunity will certainly dry up for these people, at least for a while, as this is usually a strategy for managing temporary economic fluctuations. This is certainly a negative impact, for if development does nothing else, it must provide opportunities for people. However, this sort of negative impact doesn’t rise to “savage” – which to me implies famine, infant mortality, etc. I think we make all-to-easy connections between the failure of globalization/development (I’m not sure they are all that different, really, a point I discuss in Delivering Development). Indeed, a sustained loss of global connection might, in the long run, create a space for local innovations and market development that could lead to a more robust future.
So to “be ready” requires, I think, a bit of a broadening of our environmental concerns, and a major effort to engage the complexity of engagement with the global economy among the rural poor in the world. Both are quite doable – and are really minor edits to a very nice report (which I still wish I wrote).
Mon 21 Mar 2011
Posted by Ed under Delivering Development, development, globalization, policy
Comments Off on Thinking in parallel on unfettered globalization
I’ve not posted a lot on globalization, per se, on this blog of late . . . but I was really taken by Steven Pearlstein’s review of Dani Rodrik’s The Globalization Paradox in last Sunday’s Washington Post. I have not read Rodrik’s book, but if Pearlstein’s review is accurate, I think I find myself in his camp on the subject. There were a few passages in this review that I really liked, if for no other reason than they sound a lot like what I wrote in my book. But I particularly liked this bit of Pearlstein on Rodrik:
Globalization, by its very nature, is disruptive—it rearranges where and how work is done and where and how profits are made. Things that are disruptive, of course, are destabilizing and create large pools of winners and losers.
Now, from chapter 1 of Delivering Development:
The integration of local economies, politics, and society into global networks is not the unmitigated boon to human well- being presented by many authors. Those living along the shores of globalization deal with significant challenges in their lives, such as degrading environments, social inequality that limits opportunity for significant portions of society, and inadequate medical care. The integration of these places into a global economy does not necessarily solve these problems. In the best cases such integration provides new sources of income that might be used to address some of these challenges. In nearly all cases, however, such integration also brings new challenges and uncertainties that come at a cost to people’s incomes and well- being.
This is some interesting thinking in parallel – anyone got Rodrik’s email? I need to get a copy of the book, and the hours needed to read it.