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Resource Peripheries in the Global EconomyDisarticulations in Resource Peripheries: Bolivia’s Oil and Gas Supply Industry

Resource Peripheries in the Global Economy: Disarticulations in Resource Peripheries: Bolivia’s... [Research on global production networks (GPNs) has been criticised for its ‘inclusionary bias’. The mainstream is focussed on successful development, paying little attention to firms and regions that do not perform well and thus neglecting that the success of some may be tied to the failure of others. This chapter makes a contribution to overcoming the inclusionary bias in order to better understand the prospects of peripheral regions in GPNs. It is inspired by an increasingly vivid academic debate about ‘disarticulations’. The author applies this perspective to Bolivia’s oil and gas supply industry. He shows that the sector has shifted to a turn-key model, which accounts for the rise of foreign engineering, procurement and construction companies that now capture value at the expense of local suppliers. The latter are downgraded or outright expelled from the corresponding networks. Context factors reinforce the increasingly poor outcomes for Bolivian firms. Many never manage to plug into oil and gas GPNs because of high entry barriers, which even apply to services as generic as catering and transport. However, the chapter also indicates that the disarticulations perspective is itself somewhat biased. It disregards opportunities that integration into the global economy offers in spite of its various downsides.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

Resource Peripheries in the Global EconomyDisarticulations in Resource Peripheries: Bolivia’s Oil and Gas Supply Industry

Part of the Economic Geography Book Series
Editors: Irarrázaval, Felipe; Arias-Loyola, Martín
Scholvin, Sören
Resource Peripheries in the Global Economy — Oct 12, 2021
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16 pages

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Publisher
Springer International Publishing
Copyright
© Springer Nature Switzerland AG 2021
ISBN
978-3-030-84605-3
Pages
45 –61
DOI
10.1007/978-3-030-84606-0_3
Publisher site
See Chapter on Publisher Site

Abstract

[Research on global production networks (GPNs) has been criticised for its ‘inclusionary bias’. The mainstream is focussed on successful development, paying little attention to firms and regions that do not perform well and thus neglecting that the success of some may be tied to the failure of others. This chapter makes a contribution to overcoming the inclusionary bias in order to better understand the prospects of peripheral regions in GPNs. It is inspired by an increasingly vivid academic debate about ‘disarticulations’. The author applies this perspective to Bolivia’s oil and gas supply industry. He shows that the sector has shifted to a turn-key model, which accounts for the rise of foreign engineering, procurement and construction companies that now capture value at the expense of local suppliers. The latter are downgraded or outright expelled from the corresponding networks. Context factors reinforce the increasingly poor outcomes for Bolivian firms. Many never manage to plug into oil and gas GPNs because of high entry barriers, which even apply to services as generic as catering and transport. However, the chapter also indicates that the disarticulations perspective is itself somewhat biased. It disregards opportunities that integration into the global economy offers in spite of its various downsides.]

Published: Oct 12, 2021

Keywords: Bolivia; Disarticulation; Global production network; Oil and gas; Regional development; Resource periphery

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