n Latin American Report - Industrialization in global commodity chains emanating from Latin America : research article
|Article Title||Industrialization in global commodity chains emanating from Latin America : research article|
|© Publisher:||UNISA Press|
|Journal||Latin American Report|
|Publication Date||Jan 2001|
|Pages||4 - 14|
Structural adjustment and New Economic Model (NEM) strategies were unsuccessful to recover long-run growth paths or to develop sustainable industrialization processes in the Latin American economies. A main problem is that they were almost exclusively supply oriented and did not consider the consequences of participation of productive enterprises in global commodity chains. This article shows that to identify case specific conditions to improve the position of Latin American firms, it will be necessary to assess their performance within the structure and dynamics of these international productive networks. This means that one should consider the complete international process of value generation and distribution from raw material exploitation through intermediate manufacturing and trading stages to final consumption. Key dimensions of the chain to be assessed are its governance and input-output structures, the location of activities and the institutional framework. A number of recent applications in Latin America of the approach is examined in this article. The presence of asymmetry in (market) power has led to highly unequal distributions of income to the disadvantage of the Latin American economies. The strong emergence of demand or buyer-driven chains has created new challenges and opportunities for local firms. However, in order to improve their position in a sustainable way, demand oriented measures seem to be indispensable complements to the supply oriented ones.
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