By: Jomo Kwame Sundaram with Oliver Schwank and Rudiger von Arnim
This paper critically reviews the impact of globalization on sub-Saharan Africa (SSA) since the early 1980s. The large gains expected from opening up to international economic forces have, to date, been limited, and there have been significant adverse consequences. Foreign direct investment in SSA has been largely confined to resource—especially mineral—extraction, even as continuing capital flight has reduced financial resources available for productive investments. Premature trade liberalization has further undermined prospects for the economic development of SSA as productive capacities in many sectors are not sufficiently competitive to take advantage of any improvements in market access.
Globalization is one of the greatest strategic challenges for agricultural cooperatives. Globalization has increased significantly over the last decade, and despite financial crises and recession in many parts of the world globalization will likely continue — albeit with less force than before. Cooperatives have specific challenges of globalization. In some areas, cooperative challenges have been solved. Critical issues such as the use of foreign raw materials and production abroad are now a part of business development in several large cooperatives. Foreign members are also increasingly common, still not without challenges. In other areas, however, more structural and fundamental problems persist. Here major changes in the organization of cooperatives are required if all advantages of globalization are to be exploited. Danish agriculture has for decades been characterized by a high market share for cooperatives and a structure which to a high degree has been export and globally oriented, indicating no specific problem concerning globalization of cooperatives.
The EU Common Agricultural Policy (CAP) aims to promote agriculture throughout the EU by increasing farmers’ incomes and supporting the provision of public goods such as the environment. It is funded from the European Commission (EC) budget and accounts for roughly 40% of total EC expenditure. It is divided into two pillars. Pillar 1 includes both direct payments to farmers and market management measures. Pillar 2 focuses on improving the structural and environmental performance of agriculture and on promoting local/rural development. Pillar 2 requires Member State co-financing.
The EU has recognised that making development policy in isolation is not sufficient. Its commitment to Policy Coherence for Development seeks to ensure that all policies, not only development assistance, promote growth in developing countries. Any decision on CAP reform options must, therefore, be analysed against development goals.
Indonesia’s food market has changed in response to a changing and growing economy. The report examines changes in the food consumption pattern and measures the growth of modern food retail chains, packaged food purchases, and food imports in the world’s fourth-most-populous country. The evidence suggests that Indonesians are moving toward modern global purchasing and consumption patterns, but more slowly than in some comparable countries. Barriers to foreign and domestic commerce, affecting the development of modern food retail supply chains, are important constraints on food market change in Indonesia. Further change in Indonesia’s retail food sector will help determine future growth in imports, including from the United States.