Introduction to a Symposium on Global Finance and the Agri‐food Sector: Risk and Regulation

This symposium introduction brings together two debates; the debate on global food prices and speculation, and the debate on so‐called global ‘land investment’ or ‘land grabbing’. Both debates are examining two sides of the same phenomenon – the growing role of private financial investors in the global agri‐food value chains and the myriad consequences of it. The symposium moves beyond the identification of finance as an exogenous factor to the trends in the sector. It examines real‐life incarnations of finance in the sector by looking at investment arrangements, including connections with the state, and its (regional) variations. The symposium addresses three main themes. First, it explores the interplay of the state and private finance. It shows that the effect of regulation is limited in the face of increasingly mobile and complex investment flows. Second, it addresses the shifts and transfigurations of risk in the agri‐food sector due to financialization. Third, the symposium discusses to what extent, and how, the origins and identity of farmland investors still matters within an increasingly globalized financial sector. The paper concludes by identifying some related areas for further research.     

‘Amsterdam is Standing on Norway’Part I: The Alchemy of Capital,Empire and Nature in the Diaspora of Silver, 1545–1648

In the first of two essays in this Journal, I seek to unify the historical geography of early modern ‘European expansion’ (Iberia and Latin America) with the environmental history of the ‘transition to capitalism’ (northwestern Europe). The expansion of Europe's overseas empires and the transitions to capitalism within Europe were differentiated moments within the geographical expansion of commodity production and exchange – what I call the commodity frontier. This essay is developed in two movements. Beginning with a conceptual and methodological recasting of the historical geography of the rise of capitalism, I offer an analytical narrative that follows the early modern diaspora of silver. This account follows the political ecology of silver production and trade from the Andes to Spain in Braudel's ‘second’ sixteenth century (c. 1545–1648). In highlighting the Ibero‐American moment of this process in the present essay, I contend that the spectacular reorganization of Andean space and the progressive dilapidation of Spain's real economy not only signified the rise and demise of a trans‐Atlantic, Iberian ecological regime, but also generated the historically necessary conditions for the unprecedented concentration of accumulation and commodity production in the capitalist North Atlantic in the centuries that followed.     

Do the BRICs and Emerging Markets Differ in their Agrifood Imports?

This study develops an import demand model to explore the role of income in explaining the trade performance of low‐, middle‐ and high‐income countries with a special emphasis on Brazil, Russia, India and China – the BRIC economies. The study estimates the impact of the growth in per capita income on the trade of agrifood products using data from 52 countries and 20 agrifood products for the years 1990–2006. The results suggest that China, Russia and Brazil now have more income elastic import demands than other middle‐income countries. Conversely, the income elasticities of import demand in India are similar to other low‐income countries and for the most part statistically equal to zero.     

Global and local food value chains in Africa: A review

The rapid expansion of agrifood exports from low- and middle-income countries and the contribution of global value chains to rural development are well-documented in the literature. Also, studies on modernization of domestic food value chains in these countries are emerging. Yet, the linkages between global and local value chains are rarely studied. On the one hand, the development and expansion of global value chains may create competition with local value chains for land, labor, water, soil nutrients, and other resources. On the other hand, positive spillover effects, such as investment, technical or institutional spillovers, may occur and spur the development of local value chains. In this article, we put forward a conceptual discussion on the type of linkages between global and local value chains, and how these depend on crop and value chain characteristics. We review the empirical evidence on these linkages. Our focus is on Africa, where agrifood exports and global value chains evolved rapidly and where challenges remain to upgrade and increase efficiency in local food value chains.     

Structural transformation in emerging economies: leading sectors and the balanced growth hypothesis

The paper uses the World Input-Output Database to address patterns of structural transformation in BRIC countries, Indonesia, South Korea, Mexico and Turkey. Sectoral drivers of aggregate labour productivity growth, and the relative importance of within-sector versus employment reallocation effects on aggregate labour productivity growth, are evaluated using growth accounting decomposition methods. Decomposition results are used to assess how patterns of structural transformation relate to macroeconomic performance in terms of aggregate labour productivity, output and employment growth. Together with the construction of ‘Hirschman compliance indices’, decomposition results are also used to shed light on the balanced versus unbalanced growth debates. The paper goes on to assess the extent of complementarities between manufacturing and information and communications technology-intensive advanced services through intermediate inputs, comparing the eight emerging countries with G7 countries over time.     

The Lived Experience of Food Sovereignty: Gender,Indigenous Crops and Small‐Scale Farming in Mtubatuba,South Africa

Food sovereignty has become a powerful concept to critique the dominant global food regime. Although it has not taken root in South Africa as fiercely as elsewhere, we use this concept to explore how one small‐scale farmer seeks to wean herself from the dominant food system in the small town of Mtubatuba, KwaZulu‐Natal. Using ethnographic methods and in‐depth interviews about this single intense and extreme case, we explore this farmer's commitment and argue that it constitutes what we call the ‘lived experience of food sovereignty’. If food sovereignty is concerned with small‐farmer control over decisions about food cultivation, distribution and consumption, we examine this farmer's praxis and explore the obstacles she faces. These include gendered and racialized agrarian questions, land struggles, social reproduction and perceptions of her indigenous crops. We also examine the networks, knowledge, systems and methods that have allowed her to cultivate her self‐reliance.     

The Class Dynamics of Food Sovereignty in Mexico and Ecuador

This paper examines the class dynamics of food sovereignty in Mexico and Ecuador. It argues that the nature of contemporary demands for food sovereignty is heavily influenced by the outcomes of peasant movements’ historical and ongoing internal class dynamics. Processes of class differentiation within peasant organizations in both countries have led to the interests of certain classes predominating over or at the expense of others. Despite La Vía Campesina's projection of ‘unity in diversity’, incorporating sometimes conflicting class interests into the movement is particularly challenging. As such, class analysis must be brought back into debates around food sovereignty in order to gauge (and potentially further) the movement's transformative potential.     

Governing Suburbia through regionalized land-use planning? Experiences from the Greater Frankfurt region

This paper explores the case of peripheral settlement growth in the Greater Frankfurt (Main) region within current debates on global suburbanization. Within Germany’s sophisticated spatial planning regime, Greater Frankfurt’s system of regionalized land-use planning marks an ambitious initiative to contain urban sprawl. Nonetheless, expansive peripheral settlement growth, and socio-spatial polarization remain distinct characteristics of the booming region. Analyzing state regulation vis-à-vis dynamics of capitalist urbanization and private authoritarianism, we decipher the complex governance arrangements producing this, at first sight, contradictory simultaneity. We uncover the rationales of local growth politics of autonomous municipalities and the region’s multiplied institutional fragmentation that undermine planning ambitions to contain suburban growth. We conclude by critically assessing the political economies of suburbanization in Greater Frankfurt and point to prospects for regional reform.     

Dragon Head Enterprises and the State of Agribusiness in China

This paper examines the political trajectory of agribusiness firms called ‘dragon head enterprises’ in China's ongoing agri‐food transformations. It starts from the premise that state and private elites in China are working together to consolidate a robust domestic agribusiness sector, as both an arena for national‐level rural and economic development, and a new frontier for access to resources and markets abroad. Through analyses of policy documents, market share data and ethnographic materials, I explore the organization and operation of dragon heads in the pork sector. My findings reveal that agribusiness development in China's pork sector is largely domestic, has a mixed state–private form and tends to marginalize the foreign‐based TNCs that have been the most powerful actors in the global agri‐food system to date. I argue that China is not only a destination for ‘external’ transnational capital, but also a site of agribusiness development in its own right. This has important implications for analysing capitalist transformations and for engaging global agri‐food politics.     

When food regimes become hegemonic: Agrarian India through a Gramscian lens

The concept of food regimes, as developed by Friedmann and McMichael, has proven useful in analysing how systems of food production, distribution, and consumption are linked to cycles of global capital accumulation and identifying the contradictions and conflicts that underlie them. A question that food regime analysis is relatively less able to address, however, is how food regimes become established and endure with the apparent acquiescence of those who are the victims of their contradictions and inequities. In this paper, I argue that a deeper engagement with Gramsci's theory of hegemony may help to address this lacuna in food regime analysis. To illustrate my case, I draw on studies of rural India from the colonial period to the present day, highlighting the ways in which the hegemonic mechanisms of consent and coercion have been crucial to the consolidation of each of the three food regimes identified by Friedmann and McMichael.     

Breeding for Africa's new smallholder maize paradigm

This paper describes the evolution of a newly emerging smallholder maize paradigm in southern Africa beginning in 1996. This new paradigm involves the breeding, extension, and adoption of a new generation of open-pollinated ‘flinty’ maize varieties that specifically address the needs of southern African smallholder farmers for seed varieties that can be replanted (recycled) and that resist drought and low fertility problems increasingly common in southern Africa. The described mechanism is the extension and breeding work of the Southern Africa Drought and Low Fertility programme (SADLF) of the Centro Internationale por la Mejoridad de Maize y Trigo (CIMMYT). This paper explains the devolution of southern African maize production in the past two decades from centralized large-scale producers to smallholder farms, signalling a shift in research and plant breeding needs. The research/extension approach described here had profound consequences beyond the technical benefits of screening maize varieties for tolerance to stress; it empowered small-scale farmers to become informed consumers of agricultural technology. The transformation of the smallholder from a passive consumer to one actively seeking the best opportunity and seed to produce food, create economic opportunities and address local social conditions is an important development in the history and sustainability of maize production in southern Africa, and one consistent with modern African history of economic liberalization in the global food economy.     

The Development of Agrarian Capitalism in Post‐Soviet Russia

A core set of criteria have been met, so that it is accurate to speak of an agrarian capitalist system in Russia. The development of agrarian capitalism carries with it increased stratification, which is analysed along five dimensions: earned income, land expansion, use of credit, income from food sales and income from household enterprise. The paper demonstrates increasing differentiation between households, between professional cohorts and within professional cohorts. The data showing stratification within professions suggest that intra‐cohort stratification is driving most of the inter‐cohort stratification. The Russian model of agrarian capitalism and its processes of stratification have yielded a bifurcated countryside in which a thin stratum of ‘super winners’ has emerged. Economic processes have developed beyond simple stratification and have created the basis from which a rudimentary class structure appears to be forming.     

Values and Markets: an Analysis of Organic Farming Initiatives in Andalusia

This article sets out the overlapping political and cultural roots of an innovative farming co‐operative in Andalusia, one composed of both ex‐labourers and small farmers. One strand of values involves the realization of a food chain in which no capitalist enterprise can extract profit from their labours: this, together with various conceptions of personal and local autonomy, shapes much of their practice of organic farming. Nevertheless, their labour has to generate an acceptable livelihood through selling food in an environment dominated by large‐scale commercial agriculture in both the ‘conventional’ and ‘organic’ sectors. The article explains how they achieve this by building ties with consumers around a variety of shared values. This focus on the particularities of a radical food movement sheds light on many larger issues, both the nature of markets and competition in the dominant economy, and the debates about organic certification and ‘conventionalization’.     

The Effects of Non‐tariff Measures on Agri‐food Trade: A Review and Meta‐analysis of Empirical Evidence

The increasing policy interest and academic debates on non‐tariff measures (NTMs) has stimulated a growing literature on how NTMs affect agri‐food trade. The empirical literature provides contrasting and heterogeneous evidence, with some studies supporting the ‘standards as catalysts’ view, and others favouring the ‘standards as barriers’ explanation. To the extent that NTMs can influence trade, understanding the prevailing effect, and the motivations behind one effect or the other, is a pressing issue. We review a large body of empirical evidence on the effect of NTMs on agri‐food trade and conduct a meta‐analysis to disentangle potential determinants of heterogeneity in estimates. Our findings show the role played by the publication process and by study‐specific assumptions. Some characteristics of the studies are correlated with positive significant estimates, others covary with negative significant estimates. Overall, we found that the effects of NTMs vary across types of NTM, proxies used for NTMs, and levels of detail of studies. The estimated effects are also influenced by methodological issues and publication processes.     

A Retrospective View on Designation of Origin Labeled Foods in Europe

In the emergence of ethically conscious consumer segments across Europe, the expectation was that foods with a designation of origin–label (DOL) would make a production system of similar logic. Past analysis of the registration history of DOLs showed that the take-up of this European Union (EU) food quality scheme was concentrated in the south, which was attributed to specific food supply-and-demand conditions prevalent in that part of Europe. The authors shed light on DOL product distribution and examine its evolution during a 14-year period (2001–2014). DOLs remain a quality differentiation scheme predominantly for the southern EU agrifood industry. However, the less restrictive requirements for protected geographical indication certification make it a much more popular DOL in northern EU. To promote its food quality policy, the EU must approach the two DOL types differently, as they have a different growth potential among EU countries. DOLs’ specialization in categories with expertise accumulated in specific EU areas can become a DOL promoter across all of Europe.     

The microeconomics of the developmental paradox: on the political economy of food price policy

A longstanding puzzle in comparative economics is the ‘developmental paradox’, the tendency for government support for agriculture to increase with national income and to decrease with the proportion of economic activity and of the population in agriculture. This paper offers a microeconomic explanation for that puzzle. It establishes analytically the microeconomic basis for coalition alignments with respect to food price policy, then numerically simulates the comparative static effects of alternative food policies on coalition structure. A parsimonious household model applied to a heterogeneously endowed society demonstrates how variation in individual welfare effects might beget distinct coalitions in the debate over food price policy and how those policies are inextricably linked to land, population, and technology policies in food agriculture. Moreover, coalition alignments on particular policy debates are path-dependent. In particular, food price policy creates its own political support.     

Blocking,attracting, imposing,and aligning: The utility of ASEAN forest and environmental regime policies for strong member states

International institutions, including ‘global regimes’ and ‘regional regimes’, address an increasing number of environmental issues. While in the past much attention was given to global regimes, a plethora of regional institutions and organizations (regional regimes) and their environmental policies have recently gained more momentum in political practice and attention in scholarship. The Association of Southeast Asian Nations (ASEAN) is one such regime, and is actively developing its own policies relating to (e.g.) forests and the environment. These policies necessarily have to be useful for the regime’s member states; however, we further argue, that within the member states the regime’s policies especially have to be useful for specific member states’ bureaucracies, because it is they who actually develop the policies on behalf of the member states. Further, this paper aims to analyse the utility of ASEAN’s forest and environmental policy for specific member states and their responsible bureaucracies. Our analytical framework builds on regional regime theory, bureaucratic politics, and concepts of actor’s utility and interests. It differentiates the utility of the regional regime policies into several functions: (i) blocking unpleasant international initiatives, (ii) attracting international political or financial support, (iii) imposing rules on other member states, and (iv) aligning the interests of member states against external political opponents. Our results indicate that ASEAN’s environmental and forest policies serve all four functions. For instance, through ASEAN structures, Indonesia is blocking strict CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) regulation of ramin wood to maintain existing ramin protections and business, and the ASEAN Biodiversity Centre is found to be instrumental in blocking ambitious claims towards biodiversity from international actors. In addition, Malaysia and Singapore have imposed an ASEAN wildfire haze pollution agreement onto other member states in order to protect their directly affected interests in air quality and air traffic. ASEAN is also attracting to its members various international environmental funds in areas including climate change, community-based forestry, and sustainable peatland management. Last, member states under ASEAN actively align their positions in international climate negotiations as well as global forest deliberations to enhance their influence. We conclude that policies developed within regional regimes such as ASEAN are aligned with the interests of stronger member states, and their bureaucracies in particular. It remains unclear, however, how powerful these actors need to be in order to make this customization of regime policies valid for them. The results suggest that not only a potential hegemon, but also second or third powers may have this option. At the same time, member states’ activities do not seem to be conducted by states as unitary actors; instead, issue-specific actions are based on the interests of issue-relevant bureaucracies, which are in charge of representing a given member state in a given field of a regime’s policy.     

‘Maize is Life,but Rice is Money!’ A Village Case Study of the2001/02 Famine in Malawi

This paper provides a case study of the 2001/02 famine in Malawi from a village in the Southern Region of the country. Based on in‐depth micro‐level field research, it challenges some commonly accepted views about this crisis. The paper provides evidence that: (1) there was a serious ‘famine’ in the community; (2) the decline in food availability was not the major causal factor of the famine; (3) the early warning system in the rural areas was functioning appropriately and the famine did not happen in ‘silence’, unnoticed; (4) the food preferences of Malawians are not ‘inflexible’; and (5) the famine, contrary to the claims of some of the ‘new famine hypotheses’, was less the consequence of underlying vulnerability and long‐term social or economic trends but, rather, the result of an unexpected and sudden shock, which was generated by the exponential increase in the price of all food crops.     

Avian influenza,non‐tariff measures and the poultry exports of China

This paper focuses on the direct impact of avian influenza outbreaks and the impact of the consequent non‐tariff measures (NTMs) on the international poultry trade. Using monthly export data from China and its 122 poultry importing countries, a random‐effect gravity model has been adopted. Emphasising the agri‐food trade in a global value chain context, the research analysis distinguishes between ‘agri‐food goods’ (mostly uncooked poultry products) and ‘processed goods’ (mostly cooked poultry products). The results show that domestic avian influenza outbreaks have a significant negative impact on a country's poultry imports compared with such outbreaks in exporting countries. Moreover, NTMs induced by avian influenza reduce the uncooked poultry trade but temporarily increase the cooked poultry trade. However, with a time‐lag, the cooked poultry trade may soon face increasing NTMs. The results also imply that developing countries that attempt to export agri‐food products to developed countries should increase and enhance processed food production.     

Rural Economies and Transitions to Capitalism: Germany and England Compared (c.1200–c.1800)

Based on a synthesis of the empirical scholarship on England and Germany, this paper demonstrates that in both regions, rural socio‐economic developments from c.1200 to c.1800 are similar: this period witnesses the rise to numerical predominance and growing economic significance of the ‘sub‐peasant classes’, which had a growing impact on the market as a result of their increasing market dependence, and from which – towards the end of the period – a rural proletariat emerged. Against the influential theory of Robert Brenner, it is argued that the period c.1200–c.1400 cannot really be categorized as ‘feudal’ according to Brenner's definition; and ‘agrarian capitalism’ does not adequately describe the socio‐economic system that obtained by the end of the sixteenth century. A genuine transition to capitalism is only evident from after c.1750, and can be found in Germany as well as in England; it is predicated both on ideological shifts and on the evolution of the rural proletariat, which is only found in large numbers by or after c.1800.