Should Countries Engage in a Race to the Bottom? The Effect of Social Spending on FDI

This paper examines the effect of social spending in developing countries on foreign direct investment (FDI). Existing studies on the race to the bottom in social services attempt to discern the extent to which FDI affects social expenditure. However, it remains an open question whether FDI is actually attracted to lower spending levels. We find no indication that FDI is repelled by social spending; indeed there is strong evidence that investment is associated with greater programmatic emphases on health and education. These findings have important implications for leaders seeking to attract investment and for those attempting to expand social programs.

La Sojización: The Soyization" of the Argentine Countryside in the Province of Santa Fe"

In the present era of transnational capitalism, some scholars contend that capital accumulation is achieved primarily through dispossession. This paper seeks to analyze the effects of this dispossession upon small agricultural producers in the developing world. By employing the example of soy producers in Argentina, it should become abundantly clear that the issues confronting these farmers are not simply domestic questions but rather indicative of larger structural issues embedded in the global capitalist system.