Research for agriculture in developing countries: The US role

The author argues that the USA can make a great contribution to research on food and agriculture in developing countries. He outlines the organizational and attitudinal constraints to this contribution, reviews previous studies that have recommended a redistribution of research resources, and analyses the reasons why resources should be redirected to increase the US contribution to the solution of world hunger problems.     

Korean telecom policy in global competition: implications for developing countries

United States efforts to open the Korean telecommunications market have been incessant and tenacious, to the extent that Korea is the only country to be twice designated by the US as a priority foreign country (PFC). Through major restructuring driven by the Korean government, the telecommunications infrastructure of Korea has been strengthened and expanded, and in the process has posed a threat to the US telecommunications industry. Thus, since the late 1980s, the Korean telecommunications industry has been monitored and threatened with trade sanctions by the United States Trade Representative, and all internal restructuring has been closely related to bilateral negotiations with the US, and multilateral negotiations in the Uruguay Round. Based on interviews with key Korean telecommunications personnel and analyses of public documents, this research examines the Korean telecommunications market, telecommunications policies relative to the US and WTO, and the recent economic crisis that has affected the stability of the industry. The paper also offers five major recommendations to government and industry policymakers, including a more active and positive stance toward liberalisation, the relinquishing by bureaucrats of their monopolistic power over policymaking, the securing of an open and transparent policymaking process, and, in relations with the US, and the mobilisation of regional and multilateral organisations to ensure fair competition in telecommunications.     

Traditional food traders in developing countries and competition from supermarkets: Evidence from Indonesia

Indonesia’s urban centers recently underwent an explosion of supermarkets. With cheaper, higher quality commodities and better services, supermarkets have the potential to drive traders in traditional markets out of business. In this paper, we evaluate whether this is indeed the case. We find that traditional traders experienced declines in their business. However, both qualitative and quantitative findings indicate that the main cause of decline is not supermarkets. Instead, traditional markets are plagued with internal problems and face increasingly bitter competition from street vendors. Therefore, the policy recommendations include strengthening traditional traders and seriously tackling the problem of street vendors.     

Interconnection regulation in India: Lessons for developing countries

Interconnection is not only a major competition issue per se, it is also a critical element of the basic telecommunications agreement of the WTO. An important issue in interconnection regulation is interconnection charging especially in the context of a dominant incumbent. Most regulators in developing countries face challenges in setting interconnection prices in the absence of market information on the incumbent's or entrant's costs, competition or demand and models suited for developing countries that also adhere to the WTO guidelines. There are few papers that illustrate the challenges faced by regulators in such a context. This paper attempts to bridge the gap by highlighting the nature of interaction between the regulator, incumbent, judiciary and the political environment, the role of formal models in setting interconnection charges and the implications of rapid technological changes in a developing country context through a case study of India.The case study highlights the point that besides independence, it is important to vest enforcement powers in the regulatory agency for it to be credible. Incorporating the WTO interconnection guidelines within a developing country context has implications for network growth and poses challenges to the regulatory processes.Although Telecommunications Regulatory Authority of India (TRAI) started with a distortionary, inefficiently priced network providing low coverage and quality, it has meandered its way to a more reasonable network access pricing regime. The decreasing cost of technology and increasing incomes in India and political interventions in regulation have put pressure on TRAI to provide lower interconnection charges and faster telecom growth. Thus, it is pragmatic for regulators to start with a “quick and dirty” estimate, provided that they can signal the downward trend in interconnection pricing, rather than wait for the “correct” estimates.Adoption of future looking strategies (interconnection exchanges), use of a variety of formal models, and strengthening of regulatory capacity are all necessary steps in fostering a competitive environment. Interconnection regimes set up early in the reform process require a review. For successful competition, effective dispute resolution mechanisms and institutions are also important.     

The development of private fresh produce safety standards: implications for developing Mediterranean exporting countries

Integration into global markets offers the potential for more rapid growth and poverty reduction for poorer countries. However, market barriers within advanced economies to agricultural imports have made it harder for developing countries to take full advantage of this opportunity. This article examines the impact of increasing demands for food safety and quality by European food retailers, and how the fundamental structure and culture of supplier organisations required by European retail chains are a major entry barrier for developing Mediterranean fresh produce exporting countries, and for developing countries in general. The long-term solution for such countries to sustain an international demand for their products lies in structural, strategic and procedural initiatives that build up the trust and confidence of importers/retailers in the quality and safety assurance mechanisms for their produce.     

Local competition for telephone services

A policy discussion and overview of the development and scope of local exchange competition in U.S. Telecommunications markets is presented. The primary focus is on access and cable competition. In the future, we will see policies which encourage cable to enter telephone services, telephone companies to develop a video dialtone, and transportation networks which allow interexchange carriers to bypass the access charges of the local network. Regulatory policy needs to manage these competitive changes so that there is parity between the various service providers.     

Satellite communications : US policy considerations

Regulatory decisions have controlled the possible technical alternatives in the use of artificial satellites, for both domestic and international telecommunications, since the enactment by the US Congress of the Communications Satellite Act of 1962. At the same time, advancements in technology have caused satellite systems to play a larger role in telecommunications. An updating of the 1934 Communications Act would allow for a more definitive statement of national satellite policy and for a revised regulatory standard. This article reviews some of the principle factors which have influenced communications satellite policy, and offers additional issues for consideration that can affect the development of communications satellite markets, systems and services.     

Telecommunications in developing countries

The conditions in which telecommunication services are established and expanded in the developing countries are very different from those experienced in the industrial nations. The author provides insight into the peculiarities of the telecommunication sector in developing countries, discussing characteristics related to the structure of the sector, system size and quality, telecommunications as a business, limitations to faster growth, and some particular problem areas, including the impact on economic development, especially in rural areas, training and education directed towards high technical and managerial positions, and the manufacture of equipment.     

Demand for telecommunication services in developing countries

Living standards and economic growth in developing countries are invariably linked to the availability and use of telecom services. Effective policy decisions require the best estimates of the drivers of these services. In this paper, telecommunications demand is estimated in models for residential mainline and mobile telephone service for developing countries for the period 1996–2003. The paper tests for cross-price effects between mainline and mobile service and its findings have important policy implications. It finds residential monthly price elasticity to be insignificant for developing countries, but the connection elasticity is larger than generally found in the literature. Mobile monthly price elasticities are very large. A new and important empirical finding is that although wireline phones are substitutes in the mobile market, the contrary is not true—mobile phones are not substitutes in the wireline market, and in fact may be considered complements. This lack of symmetry has important implications for properly defining telecom markets. Universal service subsidies and competitive market initiatives should be reevaluated in light of the paper's elasticity estimates. Increased competition, income growth and enhanced education may be the ultimate universal service promoters.     

Telecommunications development in Israel: The growth of public services and lessons from developing countries

The article begins with a discussion of the importance of the public services sector in the development of a modern economy, with specific reference to the organization and growth of public services in Israel. While the telecommunications sector is becoming increasingly important in national economies, it is often mismanaged in developing countries and its profits are used to subsidize other areas of the economy, particularly the postal services, which are run at a loss. The author analyses the various reasons for the lack of effective telecommunications policies in developing countries, and concludes with a series of recommendations for Israel which arise from that analysis.     

Strategies for high-technology equipment manufacturing in developing countries

The authors present a methodology to establish local manufacturing in a developing country with a modest telecommunications industry. The main focus of the article is on the analysis of high-technology equipment that can be applied to a large variety of computing, communications, and control systems. They conclude that with strategic planning the import content of electronic equipment can be reduced if the country in question shows potential for local manufacturing. This strategic planning requires commitments with local industry for technical assistance and three to five year purchasing programmes. For countries with a limited industrial background a manufacturing effort could be initiated through the establishment of assembly factories which in general make use of low local labour cost. A requirement for the transfer of technology to local industry must be established with these factories.     

Privatizing agriculture : Policy options in developing countries

This paper examines the background to, and options for, privatization of state-owned enterprises in the agricultural sector in developing countries. It identifies areas of the sector where privatization is feasible and those likely to remain under government control. It is concluded that, while there is some scope for privatization, it is unlikely to be as extensive as in other sectors since much of the production is already in private hands, there is limited capacity to pay for services and the capability of the private sector is currently low.     

Potential foreign competition in US manufacturing

Trade barriers are falling and firms are competing in increasingly open international markets. The data reveal considerable heterogeneity across industries in the intertemporal path of import-shares. Against this backdrop, we focus on an issue that is increasingly important for competition policy analysis: ‘potential’ foreign competition. Inadequate attention to this aspect could result in a biased picture of total competition, leading to misguided antitrust decisions. Drawing on the conceptual framework outlined by Landes and Posner [Harvard Law Review, 94 (1981) 937], we measure potential foreign competition by the intertemporal response of industry import-share to industry-specific and aggregate economic factors, and our estimates indicate wide variation across industries in this dimension. A particularly striking finding is that highly concentrated industries, which are more likely to be subject to antitrust scrutiny, have a greater degree of potential foreign competition than industries with low concentration, even though the extent of actual foreign competition is similar across these groups of industries.     

Food insecurity in developing countries

Despite improvements in the world food predicament, the underlying causes of food crises have not disappeared. The aim of this article is to improve understanding of food security problems in Asia, Africa and Latin America, and to assess the relative merits of alternative national and international intervention schemes. The article includes discussion of the concept of ‘food security’, policies that can be undertaken at the national level, a quantitative assessment of national food insecurity for a sample of LDCs, and an examination of the proposed international policies to enhance food security in food-deficit countries.     

Small-scale food industries : Improving performance in developing countries

This article reviews the role of small-scale food processing industries in the socioeconomic growth of developing countries, with particular reference to sub-Saharan Africa. It examines the productivity of a model enterprise and identifies inadequate planning and availability of raw materials as major causes of low levels of performance. The contributions which university-related small-scale industrial facilities such as the model could make towards improving operations of the sector are discussed.     

Technology development in developing countries: The case of a private R & D institution in Brazil

Research Development (RD) is concerned with the conversion of inventions (i.e. new ideas) into innovations (i.e. new products, processes and services in the market-place). Empirical evidence indicates that the rate of success of RD is small. In the innovation chain of events the scientific or technical accomplishment is but one link, a necessary but not sufficient condition of success. Often the market is the decisive factor.
Many research and development organizations (R & DOs), especially those funded privately, allocate their resources with a strong orientation towards satisfying perceived market needs. If this incentive persists during the R & D work the RD effort will probably be much facilitated.
In the light of the above concepts, the Brazilian R & D and RD experiences are reviewed with practical examples and emphasis on the efforts of Centro de Tecnologia Promon—CTP (Promon Technology Center). CTP works on non-conventional energy, industrial process development and telecommunication product development.
The experience reported is not intended to serve as a general solution to R & D or RD problems in the developing world. The purpose is rather to suggest alternative pathways and to point out the importance of a diversified approach to the tough task of closing the innovation loop.     

Concentration in ownership of plant variety rights: some implications for developing countries

This paper explores concentration levels in the ownership of intellectual property rights over plant varieties worldwide. An analysis of data for 30 UPOV member-countries shows a high degree of concentration in the ownership of plant variety rights for six major crops at the national level in the developed world. Much of this concentration has arisen owing to the rapid consolidation of the seed industry through mergers and acquisitions, especially in the 1990s. A high degree of concentration in the ownership of plant variety rights, in combination with recent efforts to strengthen plant variety protection regimes, is likely to have significant effects on the prospects for future innovation in plant breeding and the distribution of market power between companies. For developing countries, concentration in intellectual property right ownership may have important implications for the structure of domestic seed industries and access to protected varieties and associated plant breeding technologies. These implications for developing countries are likely to become apparent in the context of the rapid spread of plant variety protection and access legislation, emerging changes in the international exchange regime for plant material and liberalised investment policies permitting foreign investment in the seeds sector.     

Value conflicts in computing developments: Developed and developing countries

The author examines the value conflicts engendered by computing developments in two different institutional settings: electronic funds transfer systems and instructional computing in primary and secondary schools. While specific values depend upon culture and upon the character of the particular institutional setting studied, these two cases can serve as instructive points of departure for examining the value conflicts which generally accompany different modes of computerization in other developed and developing countries. In particular, computing developments in Brazil illustrate some of the parallels and contrasts between developed and developing countries.