China's Labor Question

The Honda workers’ strike in 2010 attracted world wide attention. It was one of thousands of labor disputes that happen every year in China, but it was the first major calling for the right of workers to represent themselves in collective bargaining. The question of representation is therefore the main topic of the book. The various contributors to this volume share the view that the Chinese party-state takes the protest against social inequality seriously. It has enacted many laws aimed at channeling dissatisfaction into safe channels. The implementation of these laws, however, lags behind and these laws do not include the right of freedom of association. Without this right, super-exploitation will persist and the system of labor relations will remain prone to eruptive forms of protest. The first part of the book provides an overview of the economic context of Chinese labor relations, the transformation of class-relations, the evolution of labor law, and government policies intended to set a wage floor. Based on extensive field research, the second part looks at the evolution of labor relations at the industry level. In the third part, the focus shifts to the Corporate Social Responsibility agenda in China. The final part looks at the connection between land reform and social inequality.

Economics of Hybrid Photovoltaic Power Plants

The global power supply stability is faced to several severe and fundamental threats, in particular steadily increasing power demand, diminishing and degrading fossil and nuclear energy resources, very harmful greenhouse gas emissions, significant energy injustice and a structurally misbalanced ecological footprint. Photovoltaic (PV) power systems are analysed in various aspects focusing on economic and technical considerations of supplemental and substitutional power supply to the constraint conventional power system. To infer the most relevant system approach for PV power plants several solar resources available for PV systems are compared. By combining the different solar resources and respective economics, two major PV systems are identified to be very competitive in almost all regions in the world. The experience curve concept is used as a key technique for the development of scenario assumptions on economic projections for the decade of the 2010s. Main drivers for cost reductions in PV systems are learning and production growth rate, thus several relevant aspects are discussed such as research and development investments, technical PV market potential, different PV technologies and the energetic sustainability of PV. Three major market segments for PV systems are identified: off-grid PV solutions, decentralised small scale on-grid PV systems (several kWp) and large scale PV power plants (tens of MWp). Mainly by application of ‘grid-parity’ and ‘fuel-parity’ concepts per country, local market and conventional power plant basis, the global economic market potential for all major PV system segments is derived. PV power plant hybridization potential of all relevant power technologies and the global power plant structure are analyzed regarding technical, economical and geographical feasibility. Key success criteria for hybrid PV power plants are discussed and comprehensively analysed for all adequate power plant technologies, i.e. oil, gas and coal fired power plants, wind power, solar thermal power (STEG) and hydro power plants. For the 2010s, detailed global demand curves are derived for hybrid PV-Fossil power plants on a per power plant, per country and per fuel type basis. The fundamental technical and economic potentials for hybrid PV-STEG, hybrid PV-Wind and hybrid PV-Hydro power plants are considered. The global resource availability for PV and wind power plants is excellent, thus knowing the competitive or complementary characteristic of hybrid PV-Wind power plants on a local basis is identified as being of utmost relevance. The complementarity of hybrid PV-Wind power plants is confirmed. As a result of that almost no reduction of the global economic PV market potential need to be expected and more complex power system designs on basis of hybrid PV-Wind power plants are feasible. The final target of implementing renewable power technologies into the global power system is a nearly 100% renewable power supply. Besides balancing facilities, storage options are needed, in particular for seasonal power storage. Renewable power methane (RPM) offers respective options. A comprehensive global and local analysis is performed for analysing a hybrid PV-Wind-RPM combined cycle gas turbine power system. Such a power system design might be competitive and could offer solutions for nearly all current energy system constraints including the heating and transportation sector and even the chemical industry. Summing up, hybrid PV power plants become very attractive and PV power systems will very likely evolve together with wind power to the major and final source of energy for mankind.

Regional Labor Market Disparities

Regionale Arbeitsmärkte unterscheiden sich erheblich hinsichtlich wesentlicher Kennzahlen wie der Arbeitslosenquote, des Lohnniveaus oder der Beschäftigungsentwicklung. Wegen ihrer Persistenz sind diese Unterschiede von hoher Relevanz für die Politik. Die wirtschaftswissenschaftliche Literatur liefert bereits theoretische Modelle für die Analyse regionaler Arbeitsmärkte. In der Regel sind diese Modelle aber nicht dazu geeignet, regionale Arbeitsmarktunterschiede endogen zu erklären. Das bedeutet, dass sich die Unterschiede regionaler Arbeitsmärkte in der Regel nicht aus den Modellzusammenhängen selbst ergeben, sondern „von außen“ eingebracht werden müssen. Die empirische Literatur liefert Hinweise, dass die Unterschiede zwischen regionalen Arbeitsmärkten auf die Höhe der regionalen Arbeitsnachfrage zurückzuführen sind. Die Arbeitsnachfrage wiederum leitet sich aus den Gütermärkten ab: Es hängt von der Entwicklung der regionalen Gütermärkte ab, wie viele Arbeitskräfte benötigt werden. Daraus folgt, dass die Ursachen für Unterschiede regionaler Arbeitsmärkte in den Unterschieden zwischen den regionalen Gütermärkten zu suchen sind. Letztere werden durch die Literatur zur Neuen Ökonomischen Geographie (NÖG) untersucht. Die Literatur zur NÖG erklärt Unterschiede regionaler Gütermärkte, indem sie zentripetale und zentrifugale Kräfte gegenüberstellt. Zentripetale Kräfte sind solche, welche hin zur Agglomeration ökonomischer Aktivität wirken. Im Zentrum dieser Diskussion steht vor allem das Marktpotenzial: Unternehmen siedeln sich bevorzugt an solchen Standorten an, welche nahe an großen Märkten liegen. Erwerbspersonen wiederum bevorzugen solche Regionen, welche ihnen entsprechende Erwerbsaussichten bieten. Beides zusammen bildet einen sich selbst verstärkenden Prozess, der zur Agglomeration ökonomischer Aktivität führt. Dem stehen jedoch zentrifugale Kräfte gegenüber, welche eine gleichmäßigere Verteilung ökonomischer Aktivität bewirken. Diese entstehen beispielsweise durch immobile Produktionsfaktoren oder Ballungskosten wie etwa Umweltverschmutzung, Staus oder hohe Mietpreise. Sind die zentripetalen Kräfte hinreichend stark, so bilden sich Zentren heraus, in denen sich die ökonomische Aktivität konzentriert, während die Peripherie ausdünnt. In welchem Ausmaß dies geschieht, hängt von dem Verhältnis beider Kräfte ab. Üblicherweise konzentriert sich die Literatur zur NÖG auf Unterschiede zwischen regionalen Gütermärkten und geht von der Annahme perfekter Arbeitsmärkte ohne Arbeitslosigkeit aus. Die Entstehung und Persistenz regionaler Arbeitsmarktunterschiede kann die NÖG daher üblicherweise nicht erklären. An dieser Stelle setzt die Dissertation an. Sie erweitert die NÖG um Friktionen auf dem Arbeitsmarkt, um die Entstehung und Persistenz regionaler Arbeitsmarktunterschiede zu erklären. Sie greift dazu auf eine empirische Regelmäßigkeit zurück: Zahlreiche Studien belegen einen negativen Zusammenhang zwischen Lohn und Arbeitslosigkeit. In Regionen, in denen die Arbeitslosigkeit hoch ist, ist das Lohnniveau gering und umgekehrt. Dieser Zusammenhang wird als Lohnkurve bezeichnet. Auf regionaler Ebene lässt sich die Lohnkurve mithilfe der Effizienzlohntheorie erklären, die als theoretische Grundlage in der Dissertation Anwendung findet. Konzentriert sich nun die ökonomische Aktivität aufgrund der zentripetalen Kräfte in einer Region, so ist in diesem Zentrum die Arbeitsnachfrage höher. Damit befindet sich das Zentrum auf einer günstigen Position der Lohnkurve mit geringer Arbeitslosigkeit und hohem Lohnniveau. Umgekehrt findet sich die Peripherie auf einer ungünstigen Position mit hoher Arbeitslosigkeit und geringem Lohnniveau wieder. Allerdings kann sich die Lohnkurve in Abhängigkeit des Agglomerationsgrades verschieben. Das komplexe Zusammenspiel der endogenen Agglomeration mit den Arbeitsmarktfriktionen kann dann unterschiedliche Muster regionaler Arbeitsmarktdisparitäten hervorrufen. Die Dissertation zeigt auf, wie im Zusammenspiel der NÖG mit Effizienzlöhnen regionale Arbeitsmarktdisparitäten hervorgerufen werden. Es werden theoretische Modelle formuliert, die diese Interaktionen erklären und welche die bestehende Literatur durch spezifische Beiträge erweitern. Darüber hinaus werden die zentralen Argumente der Theorie einem empirischen Test unterworfen. Es kann gezeigt werden, dass das zentrale Argument – der positive Effekt des Marktpotentials auf die Arbeitsnachfrage – relevant ist. Außerdem werden Politikimplikationen abgeleitet und der weitere Forschungsbedarf aufgezeigt.

The Food Crisis: Implications for Labor

Food prices have gone up to prohibitive levels for many of the world’s poor. The vast majority of those who are hungry in the world today are working in agriculture, either as small landholders or as waged agricultural workers. The majority of the food producers have not benefited from rising prices. Apparently, the bargaining power of many producers, just as that of the end consumers, has been weakened vis-à-vis the buyers and retailers of agricultural produce. This powerlessness is also in the face of governments that fail to provide an appropriate infrastructure for smallholders and social protection. The first part of the book provides an introduction to the immediate and structural causes of the food crisis. The second part contains contributions that not only highlight the plight of rural labour but also develop tools for measuring the decent work deficit. The last part emphasizes income security as a major precondition for food security. It looks at the experiences of Brazil and India with the extension of social protection for the poor.

Core Labor Rights

The working paper’s main objective is to explore the extent to which non-compliance to international labor rights is caused by global competition. From the perspective of institutional economics, compliance with core labor rights is beneficial for sustainable development. Nonetheless, violations of these rights occur on a massive scale. The violators usually blame competitive pressures. A number of studies have come to the conclusion that non-compliance does not provide for a competitive edge, thereby denying any economic rationale for non-compliance. While we sympathize with this conclusion, we find that these studies suffer from faulty assumptions in the design of their regression analyses. The assumption of perfect markets devoid of power relations is particularly unrealistic. While workers' rights promise long-term benefits, they may incur short-term production cost increases. On the supply side, the production sites with the highest amount of labor rights violations are characterized by a near perfect competitive situation. The demand side, however, is dominated by an oligopoly of brand name companies and large retailers. Facing a large pool of suppliers, these companies enjoy more bargaining power. Developing countries, the hosts to most of these suppliers, are therefore limited in their ability to raise labor standards on their own. This competitive situation, however, is the very reason why labor rights have to be negotiated internationally. Our exploration starts with an outline of the institutionalist argument of the benefits of core labor rights. Second, we briefly examine some cross-country empirical studies on the impact of trade liberalization (as a proxy for competitive pressures). Third, we develop our own argument which differentiates the impact of trade liberalization along the axes of labor- and capital-intensive production as well as low and medium skill production. Finally, we present evidence from a study on the impact of trade liberalization in Indonesia on the garment industry as an example of a low skill, laborintensive industry on the one hand, and the automobile as an example for a medium skill, capital-intensive industry on the other hand. Because the garment industry’s workforce consists mainly of women, we also discuss the gender dimension of trade liberalization.

Effect of planting methods and cyanobacterial inoculants on yield, water productivity and economics of rice cultivation

The impact of two crop planting methods and of the application of cyanobacterial inoculants on plant growth, yield, water productivity and economics of rice cultivation was evaluated with the help of a split plot designed experiment during the rainy season of 2011 in New Delhi, India. Conventional transplanting and system of rice intensification (SRI) were tested as two different planting methods and seven treatments that considered cyanobacterial inoculants and compost were applied with three repetitions each. Results revealed no significant differences in plant performance and crop yield between both planting methods. However, the application of biofilm based BGA bio-fertiliser + 2/3 N had an overall positive impact on both, plant performance (plant height, number of tillers) and crop yield (number and weight of panicles) as well as on grain and straw yield. Higher net return and a higher benefit-cost ratio were observed in rice fields under SRI planting method, whereas the application of BGA + PGPR + 2/3 N resulted in highest values. Total water productivity and irrigation water productivity was significantly higher under SRI practices (5.95 and 3.67 kg ha^(-1) mm^(-1)) compared to practices of conventional transplanting (3.36 and 2.44), meaning that using SRI method, water saving of about 34 % could be achieved and significantly less water was required to produce one kg of rice. This study could show that a combination of plant growth promoting rhizobacteria (PGPR) in conjunction with BGA and 2/3 dose of mineral N fertiliser can support crop growth performance, crop yields and reduces overall production cost, wherefore this practices should be used in the integrated nutrient management of rice fields in India.