↳ Supply+chains

April 17th, 2020

↳ Supply+chains

Inside Out

Shaping the base of a renewable economy

The transition to a post-carbon energy economy will require extraction. As the sun set on the Bernie Sanders campaign, and with it the prominence of the Green New Deal in the contest for the presidency, the Trump administration issued an executive order encouraging private US exploitation of mineral resources in space. Whatever the shape of the coming transition away from fossil fuels, the need to understand the social and distributional costs of a changing energy infrastructure has never been greater. In a new report, I survey the state of mining, near-future ploys for extra-terrestrial extraction, and the persistent externalities of extraction.

Recent years have seen growing attention to the material requirements of information technologies, and especially to the social and environmental harms of sourcing rare earths and cobalt. Researchers highlight, for example, the dependence of electric vehicles and wind power infrastructure on rare earths, or batteries on lithium. But these discussions have tended to omit emphasis on necessity of extraction, relying instead on a more familiar idiom of consumer and corporate responsibility. Both the Trump administration's vision of celestial expansion and some visions of a post-carbon future depend, stated or not, upon a continuing regime of mineral extraction and outsourced harm.

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March 16th, 2020

Study for a Club Scene

BUNDLED SPREAD

Supply chains and geographical dispersion

At present it's difficult to think of much else beyond the fragility of our global economic infrastructure. A 2012 discussion paper by RICHARD BALDWIN looks at global supply chains: their history, future, and policy implications.

From the paper:

"Globalization’s second unbundling and the global supply chains it spawned have produced and continue to produce changes that alter all aspects of international relations: economic, political and even military. Supply chain fractionalization—the functional unbundling of production processes—is governed by a fundamental trade-off between specialization and coordination costs. Supply chain dispersion—the geographical unbundling of stages of production—is governed by a balance between dispersion forces and agglomeration forces.

The future of global supply chains will be influenced by four key determinants: 1) improvements in coordination technology that lowers the cost of functional and geographical unbundling, 2) improvements in computer integrated manufacturing that lowers the benefits of specialization and shifts stages toward greater skill-, capital, and technology-intensity, 3) narrowing of wage gaps that reduces the benefit of North-South offshoring to nations like China, and 4) the price of oil that raises the cost of unbundling."

Link to the paper.

  • "If the virus continues to spread at the same rate, supply chains will inevitably break apart and factories will start to close." From February, the FT editorial board on the "decoupling of global trade." Link.
  • A paper from the Institute for Global Law and Policy "asserts the centrality of legal regimes and private ordering mechanisms to the creation, structure, geography, distributive effects and governance of global value chains." Link. See also: a LPE Blog symposium based on the paper. Link.
  • "Capital is thoroughly globalized. Could it now be labor’s turn?" Peter Evans on a global strategy for organized labor. Link. And a new paper by Adrien Thomas "looks at strategies adopted by trade unions to unionize migrant workers, and discusses tensions related to the diversification of trade union policies and organizational structures in response to labor migration." Link.

h/t the one and only Francis Tseng for many of these links.

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January 9th, 2020

Phenomenal Works: Alice Evans

Four books and papers on the 'despondency trap'

Alice Evans is a Lecturer in the Social Science of International Development at King's College London, and a Faculty Associate at Harvard's Kennedy School. She is writing a book on “The Great Gender Divergence”, which explores why European countries rapidly drew closer to gender parity over the twentieth century. This builds on a decade’s research on how societies come to support gender equality, and why rates of progress vary across the world. Evans has also studied how to improve workers’ rights in global supply chains: demonstrating synergies between export incentives and domestic labor movements; as well as corporate accountability. She runs a podcast, Rocking Our Priors, which is an excellent source of engaging and rigorous interviews with social scientists, and she tweets here. Below, her selections for Phenomenal Works.

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