Guus van Westen, Utrecht University, The NetherlandsBram van Helvoirt, Centre for Promotion of Imports from Developing Countries, The NetherlandsEdo Andriesse, Khon Kaen University, Thailand

Outcomes of two Ph.D theses: Van Helvoirt (2009) on regional development

in the Philippines Andriesse (2008) on regional development

on the Thailand-Malaysia border See also: chapter 8 in Helmsing, B and

Vellema, S. (2011), Value chains, social inclusion and economic development: contrasting theories and realities. Abingdon: Routledge (Routledge Studies in Development Economics).

What opportunities and constraints do regions (sub-national areas) have to benefit from globalisation?

Who are the main actors: firms/entrepreneurs, local governments or central governments?

To what extent are regional industries inserted in global value chains?

How do regional elites promote/obstruct insertion in global value chains?

Regional business systems Institutional embedding of firms Ethnic entrepreneurship/Guanxi Institutional lock-in Global value chains Central-local ties

194 firm questionnaires Semi-structured interviews with

regional and national governmental agencies and business associations, regional politicians and other key informants.

Satun and Perlis

Bohol, Cebu and Negros Oriental

Satun (Thailand): a market-driven agro-industrial economy

Perlis (Malaysia): a state driven-service economy

Philippines: Cebu: a market-driven export manufacturing

and service economy Negros Oriental: a post-colonial plantation

economy Bohol: a small scale farming economy

Functional (chain) networking Territorial networking Societal networking

Cebu Negros Oriental

Bohol Satun Perlis

Vertical inter-firm coordination

Strong insertion in GVCs

Regulated hierarchical trade, fixed arrange-ments

Top-down directed chains, external links controlled by duopsony

Strong insertion in GVCs, informal trust-based coordination in fisheries

Limited, within state-driven economy, both direct and indirect

Value chain governance

Global buyer driven chain, captive local subcontrac-tors

National captive agro-chains

Local captive agro-chains

Global buyer-driven agro-chains with role for Thai firms

State intervention disrupts global value chain formation

Cebu Negros Oriental

Bohol Satun Perlis

Horizontal inter-firm coordination

Weak informal coordination, alleviated by strong formal organisation

Strong social ties, but limited scope for upgrading

Strong informal coordination, but limited scope for upgrading

Strong informal coordination with substantial business impact (guanxi)

Weak informal coordination alleviated by strategic role of state-owned firms

Cebu Negros Oriental

Bohol Satun Perlis

Public-private coordination

Strong: public-private boosterist alliance

Exclusive: political and business elite is same

Limited: restricted to personal elite alliances

Limited: separate political and business elites

Inclusions through affirmative policies

Central-local ties

Local elite well represented at national level

Planters well represented at national level

Top-down: dole outs and weak representation

Top down: no support and weak representation

Hierarchical and strong: federal government dominates

The role of ethnicity

Moderate: Filipino-Chinese entrepre-neurs

Strong:Dominance by mestizo elites

Strong: local Filipino-Chinese duopsony

Strong: dominance by Sino-Thai families (guanxi)

Strong: ethnic divide within business community

Cebu: Globalisation and “Ceboom” Negros Oriental: De-globalising the

sugar chain and institutional lock-in Bohol: “Shared poverty” and no

insertion in GVCs Satun: Globalisation + exclusion of

Islamic majority Perlis: Federal government obstructs

insertion in GVCs

Regions can insert themselves in GVCs and benefit from globalisation through formal or informal arrangements and through three avenues:

1. Direct by national policy 2. Indirect by regional elites,

although sometimes they do not wish to change, progress and adopt more inclusive approaches towards regional development

3. Indirect by social economic policies such as education and infrastructure

Regional disparities within countries could very well widen because some regions globalise, whereas others are subject to relative de-globalisation (Perlis as a result of federal strategy; Negros Oriental of vested interests of regional elite).

So, the spatial effects of globalisation are more complex than we thought.