Fulvia Farinelli

NATURAL RESOURCES, INNOVATION AND EXPORT GROWTH THE WINE INDUSTRY IN CHILE AND ARGENTINA Fulvia Farinelli ISBN 978 94 6159 189 0 © copyright Fulvia Farinelli, Maastricht 2012 Cover design and wine map: Ernst van Loon (www.ernstvanloon.com) Cover picture: The Peoples Atlas 1920, London Geographical Institute Layout and printing: Datawyse / Universitaire Pers Maastricht NATURAL RESOURCES, INNOVATION AND EXPORT GROWTH THE WINE INDUSTRY IN CHILE AND ARGENTINA DISSERTATION to obtain the degree of Doctor at Maastricht University, on the authority of the Rector Magnificus Prof. Dr. L.L.G. Soete, in accordance with the decision of the Board of Deans, to be defended in public on Tuesday 18 December 2012, at 10:15 hours by Fulvia Farinelli UMP UNIVERSITAIRE PERS MAASTRICHT Promotor Prof. Dr. Adam Szirmai Co-promotor Prof. Dr. Lynn K. Mytelka Assessment Committee Prof. Dr. Robin Cowan (Chairman) Prof. Dr. Wim Naudé Prof. Dr. Carlo Pietrobelli (University Roma Tre) Dr. Mulu Gebreeyesus (UNU-MERIT) To my family and friends, who felt that this thesis’ project was also theirs Be patient toward all that is unsolved in your heart and try to love the questions themselves. Do not now seek the answers, which cannot be given to you because you would not be able to live them. And the point is to live everything. Live the questions. Rainer Maria Rilke, Letters to a Young Poet, 1908 Acknowledgments This thesis has been a life-changing experience. Some of the questions that have “lived” with me for a long time have found good answers. Others will continue to live with me in the future. The whole issue of development is a complex, intricate web of contradictory evidence and unanswered questions. This caught my attention since I was very young, and I was travelling extensively to the developing world thanks to my father’s work. It seemed to me inexplicable that there were so many inequalities among countries and people, and that such obscure mechanisms were not allowing the world to become more just and equitable. When I joined the UN, almost fifteen years ago, I started to work entirely on development issues. I found it paradoxical that developing countries could finally be in the position to use their rich natural resources endowments to their own advantage, rather than to the advantage of their colonizers, but this was only rarely happening. Hence, the present thesis addresses the relationship between natural resources and development ― an issue that has been debated at length during the past decades and has been propelled back onto the front stage by the recent boom in global commodity demand. In my work I was largely inspired by my supervisor, Prof. Lynn Mytelka, without whom this thesis would have never been started, and, for sure, would have never been completed. It was Lynn who encouraged me to apply to the UNU-MERIT PhD programme when we met at UNCTAD. I will always be grateful to her for her friendship, constant support and patience, as well as for the innumerable amount of times she had to remind me that a thesis was neither an annual report nor a position paper. She never allowed me to take easy shortcuts and always brought me back on the right track when I was lost. She also made me feel she would always be there for me, every time I could make whatever progress in my thesis’ work. It was also Lynn’s suggestion to select wine among all natural resources. Wine has become a great passion and has changed my way of living. It has brought me closer to nature, to seasons, to climate, to sustainable production and to animal life-cycles. Moreover, vineyards are like a common denominator across the entire world: vineyards are always vineyards, it is the landscape around them that changes so much. So, whenever they are around, I am in a familiar setting. More importantly, wine has made vii me even more proud of my Italian identity, and even more curious and enthusiastic about tastes and habits of other cultures. So, hopefully, it has made me a better person! Several people have fundamentally contributed to this thesis. At the beginning of my career, Alberto Castagnola taught me about some of the hidden truths of development economics, and about the increasing importance of technology and innovation for development. Stefano Kluzer familiarized me with the fascinating world of SMEs, industrial districts and clusters, and stimulated my professional interest in the Latin American continent. Later on, at UNCTAD, Lorraine Ruffing first, and Fiorina Mugione later, have been the most supportive and encouraging supervisors I could have ever wished for. It is also thanks to them, to the precious time they allowed me to take off from work, and to the understanding of my colleagues, that this thesis could be completed. While working on it, I have also benefitted from the invaluable support of many friends. Carla helped me to overcome my worst moments, put at my disposal her contacts in Latin America to help update missing data, and transported tons of Chilean and Argentine wine magazines across the Atlantic ocean; Martina became a perfect personal shopper during a series of girly week-ends in Rome, to keep me smiling in the middle of the drafting; Blanca cooked delicious food to cheer up the innumerable times I had to rewrite entire chapters; Anna shared with me her immense wisdom, some incredibly hilarious moments, and her constant presence; Patrizia listened to all my fears and doubts until the very end, without ever getting tired of it; Justyna helped me to see how far I had gotten, when I thought that the end was still very far away; Iris taught me the importance and beauty of soul mates, and, together with her daughter Zippora, transformed Maastricht into my own refuge; Muriel took care of my plants and animals (Pinot, Merlot and Malbec!) with love and thoughtfulness, when I did not have enough time to do so; Olga called me “hija” and became my Chilean second mother; Ngoc and Quyen are the pillar of my belief in women solidarity across cultures and generations. My male friends were certainly not less important. Ezio followed my ups and downs with the empathy that only those who have gone through the same experience can have; Abraham helped me with his talent and scientific skills, and became a friend for life since the time we spent together in Maastricht, like a real family; Paco and Saurabh contributed to transform my time in Maastricht as one of the most entertaining, stimulating, exciting year I have ever spent abroad; Ernst, beyond being a superb tango partner, helped me with his unique artistic talent and IT skills; Gary scrupulously edited an innumerable amount of wrongly placed commas, unclear sentences and imprecise verb tenses; Till contributed to improve my writing style with his intelligent feedback and smart suggestions; Andrès shared his friendship, contacts and passion for Chilean wines; on the other side of the Andes, Guillermo shared his friendship, contacts and passion for Argentine wines; José Luis was key in facilitating my field interviews in Argentina; Rodolfo made me feel that I will always have a home in Chile; Nicolas Bonnet was key in clarifying some technical aspects of complex winemaking procedures; Laurent and Markus introduced me to the hidden pleasures of Swiss wines. viii I am also particularly grateful for the continued support I received from UNU-MERIT. In particular, I would like to thank Luc, for his periodic encouragement; Robin for his tangible help, whenever I needed it; Eveline, for her assistance and support; Wilma and Marc, for making me feel welcome every time I visited the Institute. Last, but certainly not least, I’d like to thank Eddy, a Professor who makes his students feel a valuable priority of his teaching and supervisory work. I am so grateful for your precise, quick and illuminating feedback, Eddy! And thanks also for having devoted your time, together with Eveline, Iris and my colleague Thomas Van Giffen, to the finalization of the thesis’ summary in Dutch. My gratitude goes also to CEPAL, and in particular to Jorge Katz, Mario Cimoli, Wilson Perez and Giovanni Stumpo at the Division on Production, Productivity and Management, for the hospitality, intellectual feedback and support provided during the field work in Latin America. Needless to say, this thesis could have not been carried out without the time and attention generously devoted by a number of Chilean and Argentine oenologists, agronomists, university professors and wine experts, who patiently answered to all my questions. While I was travelling across the world, from Maastricht to Santiago and Buenos Aires, my aunt Elena and my uncle Lucio, as well as my cousins Luca, Fabio, Stefania and Daniele, together with their respective spouses (Viviana, Enzo, Sandra, Cristina and Gianmarco) and descendants (Michela, Davide, Chiara, Flavio and little Matteo), made me feel that Rome is where my sense of belonging will always be the strongest. I would also like to thank my parents, Enza and Pino, for having provided me with constant encouragement and unconditional support. Before choosing my university career, they allowed me to “test” my interests, from ancient painting and art restoration at the Academy of Arts in Florence, to international law and human rights at the International Court of Human Rights in Strasbourg, without ever questioning the sense or the logic of my choices. At the beginning of my career work, they also allowed me to accept unpaid or sporadically paid research assignments, until I could make my own living. Thanks to them, I could find what I really wanted to do in life.

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