DOCSLIB.ORG

Mexicos Transition to a Knowledge Based Economy

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Mexicos Transition to a Knowledge Based Economy Mexico’s Transition to a Knowledge-Based Economy Challenges and Opportunities Yevgeny Kuznetsov and Carl Dahlman WBI DEVELOPMENT STUDIES the world bank WBI DEVELOPMENT STUDIES Mexico’s Transition to a Knowledge-Based Economy Challenges and Opportunities Yevgeny Kuznetsov Carl. J. Dahlman © 2008 The International Bank for Reconstruction and Development / The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone: 202-473-1000 Internet: www.worldbank.org E-mail: [email protected] All rights reserved 1234512111098 This volume is a product of the staff of the International Bank for Reconstruction and Development / The World Bank. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: [email protected]. ISBN-13: 978-0-8213-6921-0 e-ISBN: 978-0-8213-6922-7 DOI: 10.1596/978-0-8213-6921-0 Library of Congress Cataloging-in-Publication Data has been applied for. Contents Foreword vii Acknowledgments ix Abbreviations and Acronyms xi Part I. Need for a Transition to Knowledge-Based Economy 1. New Challenges and Opportunities3 2. Benchmarking Mexico’s Position in the Knowledge Economy 19 Part II. Major Policy Issues 3. Transforming the Innovation and Enterprise Upgrading System 29 4. Enhancing Education and Skills 59 5. Updating the ICT Infrastructure in Mexico 85 Part III. Implementation Options 6. Toward National Vision and Leadership 111 7. Regional Leadership in the Transition to a Knowledge Economy 123 Annexes 1. Theoretical Framework for Growth Projections 137 2. Knowledge Assessment Methodology (KAM) 143 3. Comparator Scorecards for Mexico, United States, the Republic of Korea, China, Ireland, and Spain 145 4. Data for Scorecards for Mexico, United States, Republic of Korea, China, Ireland, and Spain 147 5. Performance, Economic Incentive Regime, Governance, Education, Innovation, and Information Communication Technologies: Scorecards for Mexico, United States, Republic of Korea, China, Ireland, and Spain 149 6. Variables for Regional Knowledge Assessment 161 Bibliography 163 iii iv Contents List of Boxes, Figures, and Tables Boxes 1.1 Health Care Services as a Global Opportunity: Lessons from India7 3.1 Discretionary Differences among Firms: The Automotive Industry 36 3.2 Three Types of Players in Mexico’s Automotive Sector 39 3.3 Innovation through Interorganizational Networks 46 3.4 Improving Decentralized Sectoral and Regional Funds 52 3.5 Ireland’s National Linkage Program (1987–1992) 55 3.6 The Switching Period in Supplier Development in the Mexican Garment Industry 56 4.1 Structure of Mexico’s Education System 63 4.2 Higher Education and Quality Control Mechanisms in Chile and Brazil 73 4.3 Mexico’s Proactive Approach to Supporting Small- and Medium-Size Enterprises 78 4.4 Achieving Change at the Margin: Charging Tuition Fees at Mexican Universities 83 5.1 Telecommunications and the WTO: The Case of Mexico 98 6.1 The Republic of Korea’s Transition to a Knowledge Economy: From Vision to Implementation 112 6.2 The Fundación Chile Model and Its Relevance for Mexico 116 6.3 Monterrey Institute of Technology and TecMilenio: Educational Spin-off as a Model of Lifelong Learning 117 6.4 Quasi-Rents as a Motivation for Concerted Action 119 7.1 Transition to Knowledge Economy: Example of Aguas Calientes 128 7.2 Adoption of Organizational Knowledge: Innovative Supplier Development Program 129 7.3 Culture as a Key Intangible: Potential of High Value-Added Tourism 130 7.4 Scan Globally, Experiment Locally: Developing Managerial Capability 133 Figures 1.1 GDP per Capita Growth in the Republic of Korea and Mexico, 1960–20024 1.2 Four Projections of Mexico’s Real GDP per Capita, 2001–20206 1.3 Manufacturing Productivity in Mexico, 1993–998 1.4 Manufacturing Industries in Mexico: Revealed Comparative Advantage by Technological Intensity9 1.5 Microeconomic Competitiveness 10 1.6 Patents of U.S. and Foreign Origin Granted by the U.S. Patent Office, 1981–2001 11 1.7 Worldwide Payments and Receipts of Royalty and License Fees, 1970–2002 16 2.1 A Global View of the Knowledge Economy Index 20 2.2 GDP per Capita and Knowledge Economy Index, 2002 21 Contents v 2.3 Knowledge Scorecards for Mexico and the United States 22 2.4 Mexico’s Performance on the Four Pillars of the Knowledge Economy 23 3.1 Innovation Variables: A Comparison of Mexico and China 30 3.2 Global View of Innovation Performance 31 3.3 Learning Capabilities by Type of Firm 34 3.4 Value Added per Firm in Mexico’s Motor Vehicles and Equipment Sector 36 3.5 Finance and Execution of R&D in Mexico by Sector, 2000 37 3.6 Efficiency of Spending on R&D, Selected OECD Firms, 1985–2000 37 3.7 Organizations Involved in Innovation 47 3.8 Convergence of Enterprise Support and Innovation Programs 49 3.9 Proyecto Innovar as a Possible Hub of U.S.–Mexico Innovation Networks 54 4.1 Mexico’s Education Performance 61 4.2 Mexico and the World: Education 62 4.3 Ratio of Yearly Remuneration, White-Collar to Blue-Collar Workers in Mexico’s Maquiladora Manufacturing Industry, 1988–2000 63 4.4 University Graduates in Engineering and Basic Sciences, 2000 69 4.5 School Enrollment, by Age and Income Group 71 4.6 Forces for Change in Reforming Education 84 5.1 Network Readiness Index, 2003–2004 86 5.2 Benchmarking Mexico’s ICT Performance 87 5.3 ICT Investments as a Share of GDP 2003 88 5.4 Internet Users per 100 Inhabitants, Mexico, Chile, and the Republic of Korea, 1998–2003 89 5.5 Regional Distribution of Main Lines per 100 Inhabitants and GDP per Capita, 2004 90 5.6 Paid TV Subscribers per 1,000 Inhabitants in Mexico, 2004 91 5.7 Incumbent Market Share after Five Years of Competition 93 5.8 International Long-Distance Traffic, 1998–2004 97 6.1 Virtuous Circle of Growth and Reforms 114 6.2 National Supplier Development Program 120 7.1 Mexico: Regional Knowledge Index and GDP per Capita 124 7.2 Knowledge Index by Mexican States 125 7.3 Timeline of Transition to Knowledge-Based Economy in Aguas Calientes 128 Tables 1.1 World Trade as a Percentage of Global GDP, by Income Level of Country, 1970 and 2001 13 1.2 Value Added of Knowledge-Based Industries, OECD Countries 13 1.3 Gross Domestic Expenditures on R&D as Percentage of GDP, 1981–2000 14 1.4 R&D Spending in Selected Countries, by Income Level 14 vi Contents 1.5 Investment in Tangibles and Intangibles, Selected OECD Countries, 1998 15 1.6 Payments and Receipts of Royalties and License Fees, Selected Regions and Countries, 2001 16 1.7 From First-Generation NAFTA to a Knowledge-Driven, Second-Generation NAFTA 18 3.1 Instruments to Support Innovation by Type of Firm 35 3.2 The Share in Total Exports of Commodity Groups in Which Mexican Strength Is Concentrated, 1993, 2000 40 3.3 Exceptions and Promising Cases of Innovation at Different Levels 41 3.4 Federal R&D Expenditures in Mexico by Sector and Subsector, 2001 44 3.5 Number of Federal Enterprise Support Programs, by Type and Organization, 2001 48 3.6 Program Evaluations 50 3.7 Venture Capital in Mexico: Supply and Demand 53 4.1 Average Years of Schooling of Adults in OECD Countries, 1980–2000 60 4.2 Schooling Completion Rates in Mexico and Dropouts per Year, by Age Group 64 4.3 Programme for International Student Assessment, 2000 Results for Selected OECD Countries 67 4.4 Higher Education in Mexico: Institutions, Students, and Teachers, 2000–2001 68 5.1 ICT Indicators, 2003 89 5.2 Technology and Growth for Broadband Internet Access Services (Consumers), 2001–2006 92 5.3 Telmex Market Shares 92 5.4 Financial Performance of Telecommunications Companies, December 2004 93 5.5 Telephone Tariffs in Mexico, 1995–2003 94 5.6 Local Prices for Telephone Services in Mexico and Other OECD Countries, 2003 95 5.7 Local Loop Prices for Carriers, 2002: E-1 CAPACITY 96 5.8 Telephone Prices for Rural Telephony 96 6.1 Implementing the Transition: Sequencing Policy Agenda in Innovation, Education, and ICT 113 6.2 Fundación Chile as a Model for Fundación Mexico 116 7.1 Four Types of States in Mexico and Four Policy Agendas 126 Foreword Knowledge and talent are prerequisites for success in today’s global knowledge economy. For developing countries, this increasing importance of knowledge and its productive application has created new challenges as well as new windows of opportunity.
Load more

Recommended publications
  • Trends in Southeast Asia
    ISSN 0219-3213 2017 no. 16 Trends in Southeast Asia THE POLITICAL ECONOMY OF CHINESE INVESTMENT IN CAMBODIA VANNARITH CHHEANG TRS16/17s ISBN 978-981-4786-79-9 30 Heng Mui Keng Terrace Singapore 119614 http://bookshop.iseas.edu.sg 9 7 8 9 8 1 4 7 8 6 7 9 9 Trends in Southeast Asia 17-J02872 01 Trends_2017-16.indd 1 24/10/17 11:54 AM The ISEAS – Yusof Ishak Institute (formerly Institute of Southeast Asian Studies) is an autonomous organization established in 1968. It is a regional centre dedicated to the study of socio-political, security, and economic trends and developments in Southeast Asia and its wider geostrategic and economic environment. The Institute’s research programmes are grouped under Regional Economic Studies (RES), Regional Strategic and Political Studies (RSPS), and Regional Social and Cultural Studies (RSCS). The Institute is also home to the ASEAN Studies Centre (ASC), the Nalanda-Sriwijaya Centre (NSC) and the Singapore APEC Study Centre. ISEAS Publishing, an established academic press, has issued more than 2,000 books and journals. It is the largest scholarly publisher of research about Southeast Asia from within the region. ISEAS Publishing works with many other academic and trade publishers and distributors to disseminate important research and analyses from and about Southeast Asia to the rest of the world. 17-J02872 01 Trends_2017-16.indd 2 24/10/17 11:54 AM 2017 no. 16 Trends in Southeast Asia THE POLITICAL ECONOMY OF CHINESE INVESTMENT IN CAMBODIA VANNARITH CHHEANG 17-J02872 01 Trends_2017-16.indd 3 24/10/17 11:54 AM Published by: ISEAS Publishing 30 Heng Mui Keng Terrace Singapore 119614 [email protected] http://bookshop.iseas.edu.sg © 2017 ISEAS – Yusof Ishak Institute, Singapore All rights reserved.
    [Show full text]
  • Globalising Chinese Business Firms: Where Are They Coming From, Where Are They Headed?
    Globalising Chinese Business Firms: Where are They Coming from, Where are They Headed? Yeung, Henry Wai-chung and Olds, Kris National University of Singapore Full reference below Yeung, Henry Wai-chung and Olds, Kris (2000), 'Globalizing Chinese business firms: where are they coming from, where are they heading?', in Henry Wai-chung Yeung and Kris Olds (eds.), The Globalisation of Chinese Business Firms, London: Macmillan, pp.1-28. Chinese-owned businesses in East Asia, the United States, Canada, and even farther afield are increasingly becoming part of what I call the Chinese commonwealth (Kao, 1993: 24; original italics). In his widely-read Harvard Business Review article, Professor John Kao (1993) concluded that Chinese business and its "worldwide web" will become a major force in the global economy in the next millennium. Similarly, Joel Kotkin argued in Tribes: How Race, Religion and Identity Determine Success in the New Global Economy that by the early twenty-first century, "the Chinese global tribe likely will rank with the British-Americans and the Japanese as a driving force in transnational commerce" (Kotkin, 1992: 9). Despite the 1997/1998 Asian economic crisis, it appears that current thinking in global business reveals a serious reappraisal of the economic potential of Chinese business and its associated organisations and institutions. The Weberian thesis on the inherent limits to the growth of Chinese business and societies has been subject to fundamental challenges by recent studies (e.g. Hamilton, 1996a; Whyte, 1996; Olds and Yeung, 1999). Scholars of Chinese business begin to recognise the economic success of the "overseas Chinese"1 and their business firms in 1 The term "overseas Chinese" may be contentious to some scholars of ethnic Chinese who are living outside mainland China.
    [Show full text]
  • A New Force in the Global Marketplace
    Washington University in St. Louis Washington University Open Scholarship Weidenbaum Center on the Economy, Murray Weidenbaum Publications Government, and Public Policy Policy Brief 185 9-1-1997 China: A New Force in the Global Marketplace Murray L. Weidenbaum Washington University in St Louis Follow this and additional works at: https://openscholarship.wustl.edu/mlw_papers Part of the Economics Commons, and the Public Policy Commons Recommended Citation Weidenbaum, Murray L., "China: A New Force in the Global Marketplace", Policy Brief 185, 1997, doi:10.7936/K7HH6H7P. Murray Weidenbaum Publications, https://openscholarship.wustl.edu/mlw_papers/148. Weidenbaum Center on the Economy, Government, and Public Policy — Washington University in St. Louis Campus Box 1027, St. Louis, MO 63130. China: A New Force in the Global Marketplace Murray Weidenbaum Policy Brief 185 September 1997 Contact: Robert Batterson Communications Director (314) 935-5676 Washington Universi1y Campus Box 1208 One Brookings Drive St. Louis, Missouri 63130-4899 China: A New Force in the Global Marketplace by Murray Weidenbaum This is a time of fundamental change in the global marketplace. It's like the middle of the 19th century when European nations dominated the world economy - and then the United States elbowed its way into the club of industrialized nations. Again, in the middle of the 20th century, when Western nations dominated the world economy, Japan elbowed its way into the club. In both cases, the world economy continued to grow, if not to accelerate, although the monopoly of the "club" was broken. In absolute terms, each nation experienced growth in its production and exports, although their relative shares of the world market declined.
    [Show full text]
  • Beyond the Bamboo Network
    Beyond the Bamboo Network Beyond the Bamboo Network The Internationalization Process of Thai Family Business Groups Maetinee Hemrit Dissertation for the Degree of Doctor of Philosophy, Ph.D. Stockholm School of Economics 2011 Keywords: Internationalization, Emerging Multinationals Business Groups, Family Business Groups, Weak Institutions, Developing Countries, Emerging Economies Thailand, Ethnic Chinese, Overseas Chinese, East Asian Capitalism Beyond the Bamboo Network: The Internationalization Process of Thai Family Business Groups © SSE and the author, 2010 ISBN 978-91-7258-843-1 Cover by: © Suchart Wongthong, 2010 Printed in Sweden by: Intellecta Infolog, Göteborg 2010 Distributed by: The Research Secretariat Stockholm School of Economics Box 6501, SE-113 83 Stockholm, Sweden www.hhs.se iv To my parents Preface This volume is submitted as a doctor’s thesis at the Stockholm School of Economics. The author has been entirely free to conduct and present her research in her own ways as an expression of her own ideas. The research presented in the thesis was initiated at the late Institute of International Business (IIB) and concluded within the Department of Marketing and Strategy at the Stockholm School of Economics. The research has been generously funded by IIB and the European Institute of Japanese Studies. Several firms cooperated through their managers in the preparation of the thesis as detailed in the same. All this generous support and assistance is gratefully acknowledged by the Stockholm School of Economics. Stockholm, March 6, 2011 Richard Wahlund Professor Head of the Department of Marketing and Strategy Stockholm School of Economics Acknowledgements Life is a journey. Sometimes you can plan; often, you can’t – it is a matter of destiny.
    [Show full text]
  • Corporate Governance of Family Businesses in Asia I
    Corporate Governance of Family Businesses in Asia What’s Right and What’s Wrong? Haider A. Khan* I. Introduction The Asian financial crisis, which can be characterized as a capital account crisis with the twin features of a financial crisis, i.e., currency crisis (international) and banking crisis (domestic) (see Yoshitomi and Ohno, 1999), has highlighted the weaknesses of the domestic banking system and hence underlying corporate governance. In Asia, banks are the dominant source of external finance so that they are naturally expected to have effectively monitored firms as borrowers during the “Asian Miracle” period. However, in retrospect, banks appear to have failed to do so. There are several reasons for the weakness of the banking system in Asia. As a recent World Bank (1998) document puts it: The East Asian crisis has underlined the importance of the rules, norms, and organizations that govern corporate behavior and define accountability to investors. East Asian corporate finance markets typically are dominated by banks. Because securities markets require a more sophisticated institutional and regulatory framework, bank dominance of corporate finance is probably the best way for developing countries to grow, provided they are not subject to undue state influence, are exposed to competition, and are prudently regulated. [italics added] (World Bank, 1998, p. 56) However, a more crucial question is what exactly determines whether banks are in a position to monitor borrowers in Asia. In the first place, this depends very much on the “location” of banks in the overall industrial and financial organizational structure in an economy. If banks are under the strong influence of large family businesses, they may not be in a good position to monitor such influential large family business conglomerates.
    [Show full text]
  • Here 183 4 - Iron to Rust 219
    Contents Editorial 5 At the Edge of the Empire Red Dust 21 The Capitalist Transition in China Introduction - Hermitage 22 1 - Pacific Rim 41 2 - Borders 89 3 - Sinosphere 183 4 - Iron to Rust 219 A State Adequate to the Task 283 Conversations with Lao Xie Picking Quarrels 361 Lu Yuyu, Li Tingyu and the Changing Cadence of Class Conflict in China The Awakening of Lin Xiaocao 425 A Personal Account of the 2010 Strike at Nanhai Honda Spirit Breaking 485 Capitalism and Terror in Northwest China by Adam Hunerven Eternal Enemies 525 The 20th Century Origins of Vietnamese Sinophobia by J. Frank Parnell At the Edge of the Empire Editorial At the Edge of the Empire The Palace that Splits the Sky Thick, slate-colored smog presses through a towering maze of identical apartment blocks, a half-living ocean ebbing below: people hunched over carts and scooters, faces covered by dingy surgical masks, often little more than silhouettes backlit by the haze-dulled throb of glowing ads broadcast on wall-size screens. The smog is like a skin of concrete melded through the image, broken here and there by masked faces or the fleeting 5 Frontiers blue glitter of cellphones held aloft like fragile torches. This picture—or something equally gargantuan and brutal—is the spectral shape that China today takes in the public imagination. It’s familiar because it emerges almost automatically upon mention, in the same way that the mist-wrapped karstic cliffs and tranquil waterways of shanshui painting might have arisen in the minds of previous generations.
    [Show full text]
  • The Prevalence of Networking Or Guanxi in Asian [Family] Business1
    The prevalence of networking or guanxi in Asian [family] business1 Peter Verhezen2 Vlerick Leuven Gent Management School, Leuven & Gent Campus, Belgium Harvard Kennedy School, Ash Institute for Governance & Innovation, Cambridge MA, USA Department of Management & Marketing, University of Melbourne Parkville Campus, Victoria, Australia Verhezen & Associates Ltd Sampoerna Square, Jakarta, Indonesia/Singapore Abstract This conceptual paper examines the ethical dimension of using gifts to establish social networks, applying the concept of ‘guanxi’ or social capital in Indonesia - a practice which may lead to personal and/or corporate gain. Guanxi refers to a network of personal and social relations. Guanxi is characterized by specific ethical and instrumental dimensions that embedded in social and moral norms and originally founded on a traditional Confucian philosophy. Social contextuality seems to be more relevant for its ethical acceptability than a precise moral individual threshold. To what extent can possible gain or profit from guanxi be considered as 'ethical'? The answer lies in understanding the fine line between socially appropriate and a-social networks. Social networks such as guanxi could transgress as they take the form of nepotism wherein emotional and moral obligations in interpersonal relations are ignored in favor of pure instrumental [calculating] exploitation of networks for personal gain. When the cultural ritual of guanxi degenerates into a rent-seeking guanxi, an appropriate network loses its ethical edge as it turns
    [Show full text]
  • Business Group Affiliation, Performance, Context, and Strategy: a Meta-Analysis
    BUSINESS GROUP AFFILIATION, PERFORMANCE, CONTEXT, AND STRATEGY: A META-ANALYSIS* Final version: http://amj.aom.org/content/54/3/437.short Michael Carney John Molson School of Business Concordia University [email protected] Eric R. Gedajlovic Faculty of Business Administration Simon Fraser University [email protected] Pursey P. M. A. R. Heugens Rotterdam School of Management Erasmus University [email protected] Marc van Essen Utrecht School of Economics Utrecht University [email protected] J. (Hans) van Oosterhout Rotterdam School of Management Erasmus University [email protected] * We thank AMJ Associate Editor Gerry Sanders and three anonymous reviewers for their guidance and support. Tammo Bijmolt, Chris Doucouliagos, and Inge Geyskens provided useful suggestions for dealing with publication outlet quality variability and sample overlap issues. Nico Dewaelheyns, Sandra Dow, Niels Hermes, Woochan Kim, Robert Lensink, Ronny Manos, Claudio Piga, and Michael Sullivan sent us additional primary studies. Any remaining mistakes are our own. BUSINESS GROUP AFFILIATION, PERFORMANCE, CONTEXT, AND STRATEGY: A META-ANALYSIS Abstract Research on business groups – legally independent firms tied together in a variety of formal and informal ways – is accelerating. Through meta-analytical techniques employed on a database of 141 studies covering 28 different countries, we synthesize this research and extend it by testing several new hypotheses. We find that affiliation diminishes firm performance in general, but also that affiliates are comparatively better off in contexts with underdeveloped financial and labor market institutions. We also trace the affiliation discount to specific strategic actions taken at the firm and group levels. Overall, our results indicate that affiliate performance reflects complex processes and motivations.
    [Show full text]
  • Small Firms and Network Economies
    Small Firms and Network Economies Recent development experience points to the way business networks can be the key to a dynamic small-business sector, especially where those links are built on high-trust cooperative relations. This book reviews different types of small-business network, illustrated by an international selection of case studies, including: • Chinese family business networks • ethnic minority business networks • Japanese and South Korean business group networks • European industrial districts. Network promotion initiatives in Singapore, New Zealand, Scandinavia and the UK are each discussed to provide a comprehensive and comparative assessment of small-business networks Martin Perry is a Senior Lecturer in economic geography, urban and regional planning and environmental subjects at the National University of Singapore. His previous publications include Singapore: A Developmental City State with L. Kong and B. Yeoh (John Wiley, 1997), Reform at Work: Workplace Change and the New Industrial Order with C. Davidson and R. Hill (Longman Paul, 1995) and Property and Industrial Development with S. Fothergill and S. Monk (Hutchinson, 1987). Routledge studies in small business Edited by David Storey 1 Small Firm Formation and Regional Economic Development Edited by Michael W. Danson 2 Corporate Venture Capital Bridging the equity gap in the small business sector Kevin McNally 3 The Quality Business Quality issues and smaller firms Julian North, Robert A. Blackburn and James Curran 4 Enterprise and Culture Colin Gray 5 The Financing of Small Business A comparative study of male and female small business owners Lauren Read 6 Small Firms and Network Economies Martin Perry Small Firms and Network Economies Martin Perry London and New York First published 1999 by Routledge 11 New Fetter Lane, London EC4P 4EE This edition published in the Taylor & Francis e-Library, 2002.
    [Show full text]
  • Global Economy and International Economic Relations
    GLOBAL ECONOMY AND INTERNATIONAL ECONOMIC RELATIONS Vlasenko L. V., Candidate of Economic Sciences, Associate Professor Kravets K. O., Student Zaporizhzhya Institute of Economics and Information Technologies Zaporizhzhya, Ukraine EXPANDING THE «BAMBOO NETWORK»: DIASPORA, LANGUAGE, AND CULTURE AS COMPONENTS OF PRC’S EXTERNAL TRADE POLICY For the past decade, the People’s Republic of China (PRC) has established itself as an economic powerhouse and a regional geopolitical power in Asia. In 2018 Chinese manufacturers are dominating the global market with a total exports of 2.5 trillion US$; PRC’s GDP is growing with an average rate of 6.6% and a massive “Belt and Road Initiative” infrastructure and investment project is envisioned and set into motion to create even larger unified market uniting more than 152 countries of Asia, Europe, Oceania, and Americas [1]. China does not lack for ambition planning the BRI on a gargantuan scale, however, while discussing the probability of declared Chinese intentions Western critics often overlook the fact that the backbone and pre-image of this project was already established long before the “The New Silk Road” – the original title of BRI – was set in motion. This already existing part of Asia’s economic reality is often called the “Bamboo Network”. Bamboo Network (BN) – is an economic sphere of influence that links overseas Chinese business communities of Southeast Asia (Myanmar, Malaysia, Indonesia, Thailand, Vietnam, Philippines, Singapore) mostly composed of mid-sized companies owned by expat-Chinese with links to the economy of so-called Greater China (PRC, Taiwan, Hong Kong, Macau). BN is closely tied with the concepts of Sinophone World and Sinosphere (East Asian cultural sphere) [2].
    [Show full text]
  • Beyond Patriotic Education: Mobilizing Chinese Diaspora in Thailand
    1 | BEYOND PATRIOTIC EDUCATION: MOBILIZING CHINESE DIASPORA IN THAILAND BEYOND PATRIOTIC EDUCATION: MOBILIZING CHINESE DIASPORA IN THAILAND Joanna Nawrotkiewicz March 2021 SUMMARY The paper describes the process and methods of mobilizing Thai Chinese to act as advocates for the sake of the PRC’s interests. Chinese diaspora in Thailand is one of the largest and oldest overseas community in the world. Thai Chinese stand for 11-14% of Thailand’s population, and some even assume 40% of Thais could have a Chinese ancestor. These ties with China represent a potential the CCP wants to exploit, as it would be beneficial for China to have supporters outside the border. This process is being realized by using three methods: engaging young people to seek their Chinese roots, offering opportunities for business owners, and attracting via media – Chinese social platforms or close cooperation with Thai media. INTRODUCTION Chinese diaspora in Thailand is the largest Chinese population outside the PRC, constituting for about 11-14% of Thai society. Considered to be the oldest Chinese overseas community, this closely integrated group in majority derived from the South China regions like Guangdong and Fujian provinces. The members predominantly would be classified as “华人“ (huaren) – foreign nationals of Chinese descent, assimilated fully into the Thai society. The exact number of Thai Chinese is difficult to measure, as it is not clear who could be identified as ethnic Chinese. China does not recognize dual nationality, so all of Thai Chinese are recognized as Thai nationals. Despite the assumption that 40% of the Thai www.osa.uni.lodz.pl [email protected] @CAAUniLodz 2 | BEYOND PATRIOTIC EDUCATION: MOBILIZING CHINESE DIASPORA IN THAILAND society could have a Chinese ancestor, numerous ethnic Chinese does not even identify as one.
    [Show full text]
  • Asia and Africa in the Global Economy
    The United Nations University is an organ of the United Nations estab- lished by the General Assembly in 1972 to be an international community of scholars engaged in research, advancedtraining,andthedissemination of knowledge related to the pressing global problems of human survi- val, development, and welfare. Its activities focus mainly on the areas of peace and governance, environment and sustainable development, and science and technology in relation to human welfare. The University oper- ates through a worldwide network of research and postgraduate training centres, with its planning and coordinating headquarters in Tokyo. The United Nations University Press, the publishing division of the UNU, publishes scholarly and policy-oriented books and periodicals in areas related to the University’s research. Asia and Africa Asia and Africa in the Global Economy Edited by Ernest Aryeetey, Julius Court, Machiko Nissanke, and Beatrice Weder United Nations a University Press TOKYO u NEW YORK u PARIS ( The United Nations University, 2003 The views expressed in this publication are those of the authors and do not necessarily reflect the views of the United Nations University. United Nations University Press The United Nations University, 53-70, Jingumae 5-chome, Shibuya-ku, Tokyo, 150-8925, Japan Tel: þ81-3-3499-2811 Fax: þ81-3-3406-7345 E-mail: [email protected] general enquiries: [email protected] http://www.unu.edu United Nations University Office in North America 2 United Nations Plaza, Room DC2-2062, New York, NY 10017, USA Tel: þ1-212-963-6387 Fax: þ1-212-371-9454 E-mail: [email protected] United Nations University Press is the publishing division of the United Nations University.
    [Show full text]