Commodity Chain Analysis: The Indonesian Hostile Industry

787 Words4 Pages

Lawson continues on to argue that scholars have overlooked historical analyses and labor relations. He states that Ciccantell and Smith’s argument is that commodity chain analysis does not consider raw materials and transportation enough (2009). Furthermore, he claims that in “mainstream political science, power and governance are still theorised primarily without reference to chains” (Lawson, 2011). Indonesia, a growing nation with limited regional influence and power, was able to conquer the tropical timber industry alongside Japan. Between 1985 and 1998, the two countries developed a transnational relationship where an Indonesian timber firm interacted with a private Japanese timber firm to supply raw material logs (Geliert, 2003). …show more content…

The transnational alliance between the two countries gave Indonesian timber producers growing regional power in the tropical timber industry. Indonesia competes with the Philippines and Malaysia for timber sales in Japan. This competition was facilitated through the alliance as Indonesian timber producers received assistance to meet the strict regulations and requirements in Japan. For example, “the most notable nontariff barrier was (and remains) the requirement that imports meet Japan’s Agricultural Standard (JAS), especially for use on government-funded construction” (Geliert, 2003). This shows that without the help of the alliance between Indonesia and Japan, Indonesia would not be able to penetrate the Japanese timber industry. This alliance enabled Indonesian timber companies to “overcome competitive tendencies of timber as a commodity and the weak position of Indonesia in global timber markets” (Geliert, …show more content…

The point is that places and spaces shape how we view the nature of goods. When analyzing commodities chains, we begin to understand how industries are impacted by time and location. This would help explain the politics behind consumption and how policies are formed. Different regions would create policies based on the industry at the time and place that directly affect how the regional economy flows. Considering space as a factor in connecting ‘nodes’ of the commodity chain would help us understand why and how policies are created. Furthermore, analyzing consumption would demonstrate how firms and industries use commodities in response to how and what people consume. In regards to space, the way a commodity is advertized and fetishized helps provide an approach to understand policies, politics, and practices in geography and political

Open Document