May 28 2009

CONFIDENTIAL: Live and Let Eat

by at 2:06 pm under Uncategorized

Your mission (should you choose to accept): Engage food markets of underdeveloped countries enmeshed in global food crisis into regional market economies at nationally (or perhaps globally-sponsored) subsidized rates, potentially outsourcing goods to international firms at higher transactional costs.

James Bond Lego by Dunechaser

James Bond Lego by Dunechaser

Key agents: Regional farm/plantation/vineyard owners and firms, local governments, local workers, multinational food corporations

            Be warned: Structure of these relationships is fragile in many circumstances. Tread lightly; global value chain can both positively affect (increased income, working conditions, and poverty) and negatively affect (trade liberalization without regulation causes loss of local jobs) on the outcomes of the production network organization (Henderson, 5).

Villian Blofeld From "You Only Live Twice" - courtesy Wikipedia

Villian Blofeld From "You Only Live Twice" - courtesy Wikipedia




Major opportunities: Counter world hunger and promote increased job opportunities, increased nutrition awareness, and local communication networks for underdeveloped countries. Bolster “arms-length market” (Gereffi et all, 80) to capitalize on trust, reputation, and mutual dependence between regional markets and coordinate the flow of inputs (and outputs) through the global value chain network (81).

Actions: Base your decision on how to “persuade” the subject on the basis of their individual network and allies. Utilize global production networks (a la Henderson) to “upgrade local firms” and provide international competition for products and quality, thereby increasing the value of the goods and limiting oversaturation of the market.  Network flexibility is especially to provide support for links that may show weakness during one growing season or another. By changing the relationship of social networks of communication between regions (including higher density, accessibility and reach to avoid bottleneck), the market can increase “social and economic opportunities and impacts.” (Garcia, 41).

Recommended actions could be:

  • Identify key players with large network of links – support regional trade markets for fresh produce at low transactional costs (Garcia)
  • Support trade unions that monitor labor market abuses (Henderson, 15)
  • Encourage Fair Trade certification with multinational companies and communicate the message of Fair Trade to international consumers (14)
  • Apply protectionism to local workers to limit low-wage competition
  • Contact international food suppliers that link to local markets and create incentives for regulation of international
  • Establish property rights with concern to the effect on power relationships (Garcia, 67)

End Transmission

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