The enclave economy: foreign investment and sustainable development in Mexico's Silicon Valley

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MIT Press,
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Foreign investment has been widely perceived as a panacea for developing countries--as a way to reduce poverty and kick-start sustainable modern industries. The Enclave Economy calls this prescription into question, showing that Mexico's post-NAFTA experience of foreign direct investment in its information technology sector, particularly in the Guadalajara region, did not result in the expected benefits. Charting the rise and fall of Mexico's "Silicon Valley," the authors explore issues that resonate through much of Latin America and the developing world: the social, economic, and environmental effects of market-driven globalization. In the 1990s, Mexico was a poster child for globalization, throwing open its borders to trade and foreign investment, embracing NAFTA, and ending the government's role in strengthening domestic industry. But The Enclave Economy shows that although Mexico was initially successful in attracting multinational corporations, foreign investments waned in the absence of active government support and as China became increasingly competitive. Moreover, the authors find that foreign investment created an "enclave economy" the benefits of which were confined to an international sector not connected to the wider Mexican economy. In fact, foreign investment put many local IT firms out of business and transferred only limited amounts of environmentally sound technology. The authors suggest policies and strategies that will enable Mexico and other developing countries to foster foreign investment for sustainable development in the future. Kevin P. Gallagher is Assistant Professor of International Relations at Boston University and Senior Researcher at the Global Development and Environment Institute at Tufts University. He is the author of Free Trade and the Environment: Mexico, NAFTA, and Beyond and other books. Lyuba Zarsky is a Consultant and Senior Research Fellow at the Global Development and Environment Institute. She is a contributing editor of Investment for Sustainable Development: Balancing Rights and Rewards.

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Grouped Work ID 3eb26547-f312-3b72-02df-cbaac52d0d7a
full_title enclave economy foreign investment and sustainable development in mexicos silicon valley
author gallagher kevin
grouping_category book
lastUpdate 2017-08-14 05:04:35AM

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physical x, 214 p. : ill., maps ; 23 cm.
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series Urban and industrial environments
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table_of_contents Introduction -- The promise of FDI for sustainable development -- The emergence of Mexico's enclave economy -- Globally networked, environmentally challenged: a profile of the IT industry -- Wired for sustainable development? IT and late industrialization -- Mexico's bid for a place in the global IT industry -- Silicon dreams, Mexican reality -- Importing environmentalism? -- Beyond the enclave economy.
target_audience Other
target_audience_full Other
title The enclave economy foreign investment and sustainable development in Mexico's Silicon Valley
title_display The enclave economy foreign investment and sustainable development in Mexico's Silicon Valley
title_full The enclave economy [electronic resource] : foreign investment and sustainable development in Mexico's Silicon Valley / Kevin P. Gallagher and Lyuba Zarsky
title_short The enclave economy
title_sort enclave economy foreign investment and sustainable development in mexico's silicon valley
title_sub foreign investment and sustainable development in Mexico's Silicon Valley