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Global rural value chains and the role of natural disasters in their transformation

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  • Meinhard Breiling

    (Technische Universitat Wien)

Abstract

Global rural value chains relate to business activities in non-central locations all over the world. They contain almost all global agricultural production, a major part of global tourism, and minor shares of industry and other services than tourism. Their generated value is more dependent on climate and extreme weather events than what is the case with urban value chains. Concepts of disaster vulnerability and disaster resilience to rural value chains are presented and followed by a system view on global rural value according to four income groups of countries. A different meaning of disasters becomes perceivable for each income group. We come up with four cases of successful in some aspects controversial alterations of global rural value chains: palm oil value chain in ASEAN, the sixth industry in Japan, rural tourism in Asia, and winter tourism in Austria and analyze the impacts of natural disasters in case studies. The business disturbances are manifold, complex, and not entirely adverse. The value at risk in a given location widely depends on the susceptibility of people and environment to a natural disaster, the costs to repair, and possibilities to innovate. Along with economic growth, disasters accelerate transformations in rural value chains and the strive to become more global while contracting in their local extensions.

Suggested Citation

  • Meinhard Breiling, 2021. "Global rural value chains and the role of natural disasters in their transformation," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 23(3), pages 540-567, December.
  • Handle: RePEc:spr:jsecdv:v:23:y:2021:i:3:d:10.1007_s40847-021-00147-z
    DOI: 10.1007/s40847-021-00147-z
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    References listed on IDEAS

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    1. Venkatachalam Anbumozhi & Fukunari Kimura & Shandre Mugan Thangavelu (ed.), 2020. "Supply Chain Resilience," Springer Books, Springer, number 978-981-15-2870-5, June.
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    3. OECD & World Bank, 2019. "Fiscal Resilience to Natural Disasters," World Bank Publications - Books, The World Bank Group, number 32341.
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    7. Meinhard Breiling & Venkatachalam Anbumozhi, 2020. "Vulnerability of Agriculture Production Networks and Global Food Value Chains Due to Natural Disaster," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 978-602-5460-23-4 edited by Meinhard Breiling & Venkatachalam Anbumozhi, January.
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    Cited by:

    1. Giriraj Amarnath & Upali A. Amarasinghe & Niranga Alahacoon, 2021. "Disaster Risk Mapping: A Desk Review of Global Best Practices and Evidence for South Asia," Sustainability, MDPI, vol. 13(22), pages 1-23, November.

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    More about this item

    Keywords

    Rural value chains; Values at risk; Disaster risk management; Climate adaptation; Business innovation; Business resilience; Agriculture; Tourism; Eco-system services;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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