Coffee is a volatile commodity. Many producers have suffered of severe price fluctuations. On the side of consumers the market has seen a rise of ethical consumership over the past few years, where...Show moreCoffee is a volatile commodity. Many producers have suffered of severe price fluctuations. On the side of consumers the market has seen a rise of ethical consumership over the past few years, where there is a wish to consume sustainable and fair products. The Fair Trade certification is one of these certifications and aims to create an equitable market, where producers receive a price that generates a sustainable livelihood. This research looks at the impact the Fair Trade certification has had on rural development in the region of Cusco, Peru, one of Peru's coffee producing areas.Show less
Brazil is a rising power, one of the BRIC countries, recently ranked as the 8th largest economy, thus a country ripe for analysis. Yet, Brazil is highly unequal, classified in the top 10 most...Show moreBrazil is a rising power, one of the BRIC countries, recently ranked as the 8th largest economy, thus a country ripe for analysis. Yet, Brazil is highly unequal, classified in the top 10 most unequal countries in the world, which begs the question of how it could have grown so rich and how such wealth could be used to tackle poverty and inequality. This thesis tries to give an understanding of how microfinance institutions in Brazil can help alleviate inequality in the region. This thesis will argue that microfinance can be part of a solution to solve economic and social inequality as it can increase income, generate employment, offer valuable skills and empower women. Even though issues arise such as dependency and possible debt, institutions can be reformed to make them more effective in achieving their goals. Thus the last part of the thesis will offer solutions and make recommendations.Show less
Coffee is one of the most traded commodities in the World and accounts for around 36.5 Billion US dollars’ worth of trade, according to the UN (2017, 180). It is a widely democratized beverage in...Show moreCoffee is one of the most traded commodities in the World and accounts for around 36.5 Billion US dollars’ worth of trade, according to the UN (2017, 180). It is a widely democratized beverage in western societies nowadays, with the largest importers in the World being the EU and the US. How can coffee trade contribute to both the development of the Latin American countries and the empowerment of its small producers? The aim of this paper is to provide practical solutions that can be implemented to empower the producers, at each of the stages of the coffee supply chain. Within the framework of the New Rural Development paradigm, this paper finds that producing countries should help the individual producers by providing an enabling environment for better producing conditions and should coordinate with other producing countries to, again, strengthen their negotiating power vis-à-vis developed consuming countries. The consuming countries, in turn, should not hinder the development of the producing countries with discriminatory import tariffs and should instead provide the legal and executive framework allowing producing countries to develop themselves. Finally, individual consumers should voice their support for better living conditions for the coffee producers by buying products from sustainable supply chains.Show less
This thesis examines water privatization in Bolivia. It evaluates an episode in which privatized utilities failed to perform as expected by advocates of market reform. Consequently, they were taken...Show moreThis thesis examines water privatization in Bolivia. It evaluates an episode in which privatized utilities failed to perform as expected by advocates of market reform. Consequently, they were taken back into public ownership. Bolivia. What went wrong in Bolivia’s water sector? The private enterprises were not able to meet the mandates of the contract. The concessionaires had not been able to improve efficiency of water services. Subsequently, they imposed an extreme tariffs hike to cover the costs of investments. The promises of privatisation failed to materialize, and regretfully, the consumers of water services were the one’s suffering the most from it.Show less
This work aims to analyze the effects of the Bolsa Família Programme in the reduction of poverty in Brazil, with a particular focus on the poorest Brazilian region: the Northeast. The selected...Show moreThis work aims to analyze the effects of the Bolsa Família Programme in the reduction of poverty in Brazil, with a particular focus on the poorest Brazilian region: the Northeast. The selected theme has been chosen after having observed a noticeable reduction in poverty and extreme poverty rates since the beginning of the Programme in 2003. This reduction has been even more remarkable in the Northeast where most of Bolsa Família beneficiaries are concentrated. Besides, the importance of the Programme is underlined as an instrument of social inclusion and its contribution to human development, given its particular focus on children and teenagers. Finally, attention has been given to the implementation of the Programme at a local level, emphasizing the challenges it faces through a case study analysis of two different realities in the State of Pernambuco, the rural one represented by Caetés Municipality (Agreste, Interior of Pernambuco), and the urban one represented by the Recife Municipality. The methodology, as well as a review of the economic and social literature related to the topic, includes quantitative research supported by a qualitative approach. Thanks to the information collected during fieldwork in Brazil, it has been possible to discuss limitations, achievements and finally the future challenges that the Bolsa Família is facing. This recently became an important debate due to the unexpected changes in Brazilian internal politics that, it is worth noting, could affect the existence of this Programme itself, given its governmental nature.Show less
The Colombian case is an unique one to study. Classified as a middle-income country, its GDP is considerably higher than that of most countries receiving Official Development Assistance (ODA)....Show moreThe Colombian case is an unique one to study. Classified as a middle-income country, its GDP is considerably higher than that of most countries receiving Official Development Assistance (ODA). However, Colombia has been severely taunted by political violence, civil war, and problems related to drug trafficking throughout modern history. After Syria, it is the country with the largest amount of refugees and Internally Displaced Persons (IDPs) in the world. As recently as 2016, a Peace Agreement has been signed to end the civil war between Colombia’s government, various insurgent groups, and the paramilitaries. Therefore, effective ODA is now more vital than ever to rebuild the country and make sure everyone gets equal opportunities to improve themselves and their livelihoods. This thesis will assess the development process in Colombia in a context of civil war and drug-related violence, and will attempt to make valid recommendations regarding how to make the implementation of ODA more effective.Show less
In many extractive economies natural resource has the potential to be detrimental to development through the disabling of the countries’ economies, and could be an incentive for mismanagement...Show moreIn many extractive economies natural resource has the potential to be detrimental to development through the disabling of the countries’ economies, and could be an incentive for mismanagement compared to countries without substantial natural resources (Holden 870). This phenomenon is known as the resource curse (Badeeb et al. 123). This study is a critical assessment of the resource curse theory with regards to the management of Venezuela’s state-owned oil company (PDVSA). It investigates the arguments of the resource curse theory that the resource abundance curses institutions through poor governance and promotes high government spending and corruption (Tornell and Lane 34). To achieve the aim of the research, this study reviews the rent-seeking model and the institutional model of the resource curse theory, and examines their applications to Venezuela’s state-owned company. Since the resource curse theory does not give sufficient explanation hence, institutionalism as a different school of thought has been used to complement the theory. The empirical findings and discussion indicates evidence of the rent-seeking model and institutional model in addition to the rationality of institutionalism. This in other words means that the resource curse theory cannot entirely explain the case of Venezuela’s state-owned oil company, PDVSA.Show less
The reputation of politicians and their parties has not been spared by Brazil’s ever deepening political crisis, as a variety of corruption scandals have delegitimised a large part of the country’s...Show moreThe reputation of politicians and their parties has not been spared by Brazil’s ever deepening political crisis, as a variety of corruption scandals have delegitimised a large part of the country’s political establishment (Watts; Addley). Considering the dimensions of these scandals (Associated Press in Brasilia), citizens may wonder whether the men and women they elected feel obliged to serve their society. Putting scandals aside, the prevalence of income and wealth inequality in the country is another problem that raises this question. One of the country’s structural issues, inequality harms society by increasing criminality and political instability (dos Santos et al. 111; Price of Inequality 83-92). Although Brazilian politicians could tackle this issue by introducing a system of progressive taxation where wealthier citizens are taxed more than less wealthy ones, they have allowed that a system of regressive taxation remains in place (Price of Inequality 31; Andrade 837-840; Junqueira 93). Income taxes could be used to counter this problem, but since the Brazilian government relies less on them, the tax structure remains regressive (Price of Inequality 30-74; Economics of the Public Sector 453; Andrade 837-840). While there have been attempts to reform the tax system in the past, no tax reform has been passed in the favour of wealth redistribution (Junqueira 93; Andrade 849). Moreover, in light of the myriad of scandals in Brazil’s political arena at the moment, one may wonder whether the country’s politicians feel any sense of duty towards its citizens. In an attempt to come closer to examining how self-interested Brazil’s political class actually is, this paper will use the tax reform attempt of 2008 to determine whether income redistribution – a form of ‘greater good’ – is regarded as a priority for Brazilian politicians. After analysing eleven political debates by Brazilian deputies from the 53rd legislature, this research has found that inequality still cannot be seen as a priority for most of the country’s political class. This can be explained by considering Brazilian political culture and how it has been shaped by history.Show less
With Raúl Castro taking over as president in 2008, the country has seen economic reform. Raúl allowed for Cubans to buy cars and houses and Cubans were allowed to work for themselves as...Show moreWith Raúl Castro taking over as president in 2008, the country has seen economic reform. Raúl allowed for Cubans to buy cars and houses and Cubans were allowed to work for themselves as entrepreneurs. With these alterations in the economy the question has risen in the international community whether Cuba will transition to a free market economy. The thesis will analyse Poland and China and will compare this to Cuba in order to come to a conclusion.Show less
The field of environmental protection has experienced attention in the global political economy. Brazil is a key player in environmental protection and developed various effective measures to...Show moreThe field of environmental protection has experienced attention in the global political economy. Brazil is a key player in environmental protection and developed various effective measures to mitigate degradation of the environmentShow less
Dictated by economic traits of progress via free trade agreements and profit-driven capitalism, the global paradigm of Neoliberalism has become the dominant framework of economic development in...Show moreDictated by economic traits of progress via free trade agreements and profit-driven capitalism, the global paradigm of Neoliberalism has become the dominant framework of economic development in Latin America since the 90s (Hojman 194). Neoliberalism is a revival of economic liberalism in which government intervention is disapproved within economic sectors, and free and self-regulating competitive markets and the development of capitalist societies are promoted (Thorsen and Lie 2). Introduced in 1989, The Washington Consensus is seen as the template for Latin America’s engagement with neoliberalism. It is as well, an indication of the vast expansion of the ‘USA model’ of economic progress by powerful international financial institutions such as the International Monetary Fund (Grugel and Riggirozzi 4). The neoliberal model was implemented via free market open economy policies (FMOEP), guided by the objective of economic decentralisation. Conditions for private profitability were established, cutting back the central role of the state within the economic sectors (Geddes 3151). Within the agricultural sphere, Neoliberalism aims for a system in which the control in agricultural production and resources happens via private corporations via profit-driven interests. This contrasts with the prior agricultural model of Keynesian economics, in which state power dominates within the agricultural sector, via the control and active role in the production process (Miyake 380). The spread of neoliberal agrarian reforms in Latin America promoted the framework of international trade and free trade, leading to the birth of the Global Farm Model within Latin America. Following the ideology of Neoliberalism, trade embargoes are portrayed as a restrictive factor on economic progress within the agricultural sector of a country (Betancourt 175). Within the context of Neoliberal expansion, Cuba is an unique exception within the region of Latin America, as it followed an alternative path to agricultural development, away from a neoliberal agricultural model. For more than 50 years, the United States (US) has imposed an economic, commercial, and social embargo against Cuba. This makes Cuba an interesting case study, in the broader context of Latin America and the dominance of Neoliberalism. Within the current ideology of agricultural development, climate change, and environmental degradation, the issue of sustainability has gained momentum in the agricultural sector. Looking through the lens of sustainable agricultural development, this brings the paper to the following research question: What are the economic, social, and environmental impacts of Neoliberalism versus Cuban-style policies on sustainable agricultural systems?Show less
