No abstract

Solidarity economy (SE) initiatives constitute a worldwide phenomenon that is today at the heart of numerous economic and social debates. They are active in very diverse economic sectors, aiming for example to create employment for poor and low‐qualified workers. We begin with presenting a Polanyian framework for the analysis of such economic activities, which enables us to develop a plural and integral conception of a productive organisation. We draw on Polanyi's thesis that economy is a political and institutionalised process and present a historic overview of the construction of the SE ‘sector’ in Brazil. We put forward the hypothesis that the SE today in Brazil represents a social movement. Then, we ask ourselves if the SE movement led to a change in grassroots economic initiatives, such as ‘people's cooperatives’. We present the results of exploratory research undertaken on 15 people's cooperatives in the State of Rio de Janeiro and its conclusions. Copyright © 2012 John Wiley & Sons, Ltd.

No abstract

Decentralisation to local governments has acquired new dimensions. These dimensions refer to delivery of basic services as well as to public or collective demands and goals. Enablement is central to new decentralisation in which the role of government is to facilitate and regulate the overall framework within which other actors can make their most effective contribution. After situating decentralisation, I explore the notion of enablement. Subsequently the concept of local-government enablement of communities is operationalised. Criteria are formulated and applied to a (nonrepresentative) sample of local governments in seven countries. It is concluded that introducing enablement in local planning is comparatively easy. However, changing regulatory, administrative and financial public decisionmaking processes is much more difficult. In the final part of the paper I examine a number of issues in the local-governance debate. Decentralisation to local government takes place in the context of decentralisation to market and to communities. Issues are identified on the supply and demand sides of governance, and on the question of embedding of government. New decentralisation raises a new class of problems, for which, as yet, few answers are available.

This article observes that the conceptual bases for regional industrial policies has been undergoing substantial changes. A distinction is made between several generations of policies. The 'first generation' of regional policies was based on the importance of exogenous growth factors. The 'second generation' of policies focussed on local endogenous factors. The theoretical base supporting these policies received strong impulses since the mid-80s from new insights derived from flexible specialization and industrial districts literature. A new and 'third generation' of policies is emerging that goes beyond endogenous growth, and seeks to superceed the division between exogenous and endogenously oriented policies. The analysis of growth and competitiveness has moved from the firm itself, and clusters of firms and to incorporate basic and institutional conditions fostering growth. This article provides an overview of contributions to the theory of regional industrial development underlying second and third generations of regional policies. A distinction is made between macro-regional theories and those that have an industrial organization focus. The review includes a selected number of case studies drawn from Europe and Latin America.

This paper examines the evolution of the Ethiopian cut flower industry, illustrating how rapidly a potential comparative advantage can be realised. But the question is to what extent a country benefits from this in the long run, if foreign direct investment is the principal driving force. Will the new industry become an enclave, or will it be accompanied by a process of building local capabilities, a process which we denominate endogenisation? A value chain framework is used to analyse the industry and to develop a number of indicators on the development direction. The cut flower industry in Ethiopia is characterised by a dominant role of Dutch foreign investors, Dutch trade auctions which dominate the export trade, and the Dutch development cooperation which plays an important role in the development of the sector. This raises the question to what extent this triple role of the Dutch contributes to endogenisation or to enclave formation.We conclude that endogenisation is a two-way process. It depends both on the degree to which FDI has an interest to draw on domestic firms, enter into relationships and share technologies; and on the interest and ability of domestic firms to take up such opportunities, and on the creation of supporting institutions and infrastructures to make this take-up possible. The latter rests largely with government. Endogenisation is taking place to some extent and at a very incipient stage. Dutch FDI has little direct interest to share technologies, but there is joint collective action on non-core activities, notably transport, which constitutes the largest item in the total cost. Dutch cooperative flower auctions are an open and vital trade channel giving Ethiopian flower growers access to international markets. The Ethiopian government has promoted the industry, making available land and low cost finance; and with the assistance of Dutch bilateral cooperation it is creating trade standards and supporting knowledge institutions to train skilled staff. The main challenge is Ethiopian entrepreneurship: many are attracted by the high growth and profitability of the industry and can run a business in Ethiopia, but lack the technical competence to meet growing competition in the industry.

No abstract

As decentralisation advances, the question of local economic development acquires more significance. How can local governments and other local actors such as local producers and their associations, community based organisations, as well as NGOs and donors contribute to local economic development and poverty reduction? This article begins by examining how the context for local economic development has drastically changed. It stresses lack of demand and the absence of meso-level institutions, i.e. institutions at the level of sector and area. Their absence deters investment responses by enterprises and households. In terms of local development initiatives, a distinction is made between community economic development and enterprise or business development. The first seeks to facilitate household economic diversification as an essential strategy of rural and urban livelihood; the second, enterprise development, seeks specialisation of the local economic base. These two lines are complemented by a third category, namely locality development, designed to create local public goods and positive externalities. The final section elaborates on the principal actors and their roles, stressing the importance of joint action and collective learning. Local governments have an important facilitating role, creating a favourable business environment and infrastructure conditions, and to contribute to convergence in decision-making.