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The whole world in an unprecedented strategic shift

"development strategies?
For 15 years Latin America has been experiencing an unprecedented strategic shift. The region has abandoned the strategy of inward-oriented development, with a market heavily involved and leading state and has taken a development strategy oriented towards external markets, where the allocation of resources is determined primarily by the market and where the principal agent of development is private.
Today is broad consensus that at least since the mid-seventies, the strategy of industrialization based on import substitution was having strongly diminishing returns and that the hyperactivity of the state had exceeded its capacity for effective action. However, it is also clear that to date the region has seen the promise, but not the reality, the expected results of the current strategic shift. Indeed, while inflation has been contained, the pace of economic expansion accuses a mediocre 3.3%: indeed, higher than the eighties, but well below the 7.5% of the "Asian tigers", and in particular , much less the 5.5% recorded between 1950-1980, when the prevailing strategy of import substitution.

Source: http://www.eclac.org/publicaciones/xml/3/13493/LCG2122P_I.pdf , last seen on November 7, 2007.

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What are they and how they form economic clusters? Examples of Clusters

(By Joseph Ramos). It is commonly understood by cluster production complex or sectoral concentration and / or geographical performing companies in the same activities or in activities closely related - both backward to suppliers of inputs and equipment, as well as forwards and sideways, to processing industries and users as well as services and activities closely related to important and cumulative savings external agglomeration and specialization (by the presence of producers, suppliers and skilled labor and related services specific to the sector) and the possibility of carrying out joint action in pursuit of collective efficiency.
The efficiency of the whole complex is higher than that of each company separately by
externalities generated by each company to the other, ie the share of each company generates profits for himself and for other companies in the complex, the following 5 reasons:
1. The concentration of firms in a region attracts more customers, thereby expanding the market for all
beyond what would the case if each were operating in isolation.
2. Strong competition leads to the concentration of companies
induces greater specialization, division of labor, and hence greater productivity.
3. The strong interaction between producers, suppliers and users easier and induces a more productive learning
, technology and marketing.
4. Repeated transactions in proximity to the same economic
generates greater trust and reputation that results in lower transaction costs.
5. The existence of complex, self-awareness, facilitates collective action of all in pursuit of common goals
(marketing international training centers and
monitoring technological development, awareness of quality standards, etc.).

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conceptual model: economic Cluster.

Source: http://www.eclac.cl/ddpeudit/proy/clusters/JRamos.pdf , last seen on November 5, 2007.

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Other definitions of cluster: Click here

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cluster

Perhaps best known today is Silicon Valley in California. But there are many examples of clusters. These include the industrial districts of Emilia Romagna (Italy), Baden Wurttemberg (Germany), Route 128 (U.S.) complexes around the industries of electronic computers in Ireland and Scotland in developed countries, in countries development include the footwear industry in Novo Hamburgo (Brazil), electronics and software in Bangalore (India), simple surgical instruments in Sialkot (Pakistan) and microelectronics in Hsinchu Science Park (Taiwan Province).
Source: http://www.eclac.org/publicaciones/xml/3/13493/LCG2122P_I.pdf , last seen on November 5, 2007.

Nationwide:

miner Antofagasta Cluster

• Copper Mine Production 2004 (1)
II Region: Global 20% (53% Chile)
I, II, III Region: 28% World (74% Chile)

• Investment in Mining 2004 -2008 (2)
Codelco Norte + Escondida: 4,000 MM U.S. $ (Projected)

• Bs and Services Expenditures promedio2002-2003 (3)
Codelco Norte + Escondida: 850 MM U.S. $
nonstrategic: 550 MM U.S. $

• O local Business pportunities in 34 product families

Source: http://www.subdere.gov.cl/1510/articles-68358_recurso_5.ppt # 337.4, Slide 4, last seen on November 9, 2007.

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Cluster mining "a future response to its historical past, Fernando Rivas.

Cluster mining "Antofagasta Region, P rogram integrated territorial"

Internationally


country is developing -> The oilseed complex in Argentina

This complex, which is of paramount importance to Argentina, take advantage of comparative advantage in agricultural production that provides the pampas of Argentina, and relatively close to the sea. His departure was driven by: the doubling of international prices of oilseeds and oil, which made it very profitable to produce of both.
Today the complex is already quite mature and exhibits backward linkages, forward and sideways. As far as forward linkages referred processing industry is an important agricultural input that takes (soybean and sunflower) and converts it into oil and products, doubling the value per tonne (from 245 to 485 U.S. dollars). Marketing phase that follows includes important services such as warehousing, transportation and shipping.

Source: http://www.eclac.org/publicaciones/xml/3/13493/LCG2122P_I.pdf , last seen on November 5, 2007.

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development strategy around production complexes, Joseph Ramos.

developed countries -> Emilia Romagna (Italy)

Capital: Bologna
Population: 4 million
economic system:
On the mechanical industry and the high technology agribusiness and food, the production system of the region is characterized by a reality for small and medium enterprises with a strong presence of artisans and cooperatives. To optimize the benefits and reduce the limitations related to the presence of small sized enterprises, the productive fabric of the Emilia-Romagna assumed a particular structure given life to local production systems known as the Industrial Districts.
This system has created spaces for the birth of subsidiaries engaged in the distribution of raw materials or semi between subcontractors and larger enterprises or production of machine tools.
The concentration of many firms belonging to a single production sector has also created a strong skilled workforce that can appeal to all area businesses and at the same time, competitiveness and a circulation of ideas, so far have offset the difficulties that small and medium enterprises in the field of research. Even with its own particularities, are recognizable in this mode of organization, territorial system in Emilia-Romagna cover the main productive sectors, from agricultural machinery to textiles, from the wood furniture industry of ceramic tiles.

Source: http://www1.unne.edu.ar/copinter/CopInternacional/pdf/reg-italia.pdf , last seen on November 9, 2007.

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policy technology centers and services Joseph M. Giner.

The development of industrial districts in Emilia-Romagna region.

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One of the most salient features of the late twentieth century is the emergence of the spatial dimension as a basic reference of the economy and policy both nationally and globally. Along with the "end of history" was even announced the "end of geography", to mean that globalization was becoming irrelevant distance, the fact is that on the contrary, the spatial variables which have to do with the location of production, trade flows and socio-political aspects of development are increasingly crucial.

Von Thunen Theory (1826)

built a more useful model, based on land prices, the quality of education and transportation costs, to explain the division of labor between urban and rural areas engaged in agriculture. It still retains its validity because of the reworking of Alonso in the sixties, but leaves unresolved the crucial question of why agglomerations arise specialized in manufacturing and tertiary activities.

Christaller Theory (1929) and Losh (1949)

developed the theory of localization which involves the geographical layout of the market and to deduct transportation costs, with geometric applications, the emergence of a "sites central, hexagonally arranged, in which productive activities are concentrated.

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Source: www.geocritica.com , last seen on November 8, 2007.

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approaches on some theories concerning regional development, Jorge Salguero Cubides.

Historical Geography and Economic Development.