Decent work and economic growth – DDRN

Do Ethnic Chinese Malaysians Actually Speak Chinese?

Francesco Biancalana — Tue, 21 Apr 2026 14:26:15 +0000

Scholars often observed how less-dominant languages are being spoken less and less. As a result, the dominant varieties might take over, leading the world toward less multilingual societies and cultural losses. Are non-Mandarin Chinese varieties in Malaysia an analogous trend of monolingualism and cultural loss? When the British colonised Malaysia, they regarded the Malays as unskilled and unable to develop the colonial economy. Chinese and Indian immigrants were considered as labourers. These migrants brought along their community languages so that they were able to communicate and stay close to help one another. What is the current sociolinguistic situation of Malaysian Chinese communities?

Linguistic Overview

Malaysia is a federation in Southeast Asia composed of 13 states and 3 separately administered federal territories. Such vast territory is characterised by a distinct linguistic landscape, the three major ethnic groups are Malay, Chinese, and Indian. Diverse communities who gained independence from British rule in 1957. On top of that, other minority groups are further observed in everyday life such as Vietnamese, French, German, Nepali, Tagalog, Bahasa Indonesian, Korean, and Japanese. In 2020, Malaysian Chinese are the second-largest ethnic community with approximately 6.91 million members among Malaysian citizens, the so called “ethnic Chinese” or in some specific cases “Tang people” 唐人 tángrén. Identifying themselves as distinctive groups with a historical inheritance of identity, reflecting their own linguistic and cultural varieties, such as the people from the Chinese territories of Fujian, Hakka, Fuzhou, Guangxi, Xinghua, Fuqing and others. Although linguists classify Chinese language varieties as distinct languages, they are often referred to as dialects. Many of these varieties are mutually unintelligible, even among speakers within the same group. The Chinese varieties spoken by Malaysian Chinese communities include several subgroups of Min (i.e., Hokkien, Teochew, Xinghua, Hainan, Foochow), Hakka, and Yue (i.e., Cantonese).

The dominance of Mandarin among Chinese communities in Mainland China, Taiwan, Macao, Hong Kong, Singapore, and other regions has been widely reported and analysed; this article focuses on the case of Malaysia. Although some Chinese schools in various overseas communities still teach dialects. The current mainstream trend in international Chinese inheritance language teaching is to unify the use of Mandarin as the standard, the so called “Common Language” 普通话 pǔtōnghuà. With an increase in Mandarin Chinese literacy resulting from Chinese medium education, formal usage of dialects has decreased over the years and may only be used in rural churches for preaching and reading of religious texts. Chinese primary schools in Malaysia are often funded by Chinese associations and individuals, with support sometimes politically incentivised during elections by Chinese-based parties. Mandarin was introduced as the medium of instruction in the 1920s and is widely used in media, education, and increasingly among younger Malaysian Chinese. There are also newspapers, magazines, dramas, and films on television and in cinemas using Mandarin as the primary medium.

Historical and Social Frameworks

Under British rule, schools for locals and migrant children were divided according to the languages of instruction. As a result, the colonial government did little to promote national integration or foster a shared identity, and migrant communities largely remained in separate enclaves without a strong sense of belonging to the nation. The history of the racial conflicts in Malaysia began with the Chinese migrations in the 19th century and was exacerbated in 1957 after the independence from the United Kingdom. The colonial rule and the Japanese occupation let to a communist insurgency with fragile race relations. The selection of Malay, the language of the majority, as the national and official language, along with special privileges granted under the Malaysian Constitution (e.g., customary land rights) was perceived as racially biased. Consequently, the majoritarian party, United Malays National Organisation (i.e., UMNO), significantly lost parliamentary seats. While it still held a majority in Parliament, the Chinese-based opposition party claimed “victory”. As a result, the tensions between Malays and Chinese communities culminated in the 1969 racial riots. In response, Malaysian policymakers promoted Bahasa Malaysia as the national language and developed a national education system to foster cultural unity and to support the nation’s social and political development. During the 1970s and 1980s, this approach came to be known as the ‘One Language One Culture’ policy, because it promoted a single, unified national culture.

Social tensions declined in the 1990s with government support for the teaching of standardised ethnic languages as a school subject. Standardised ethnic languages, namely Mandarin for the Chinese and Tamil for the Indian, serve as the medium of instruction. The dominant socio-political influences decide the family language for communication rather than parents/grandparents. Likewise, studies have also shown that many Malay children are not speaking Malay community languages, while Indian children are not learning Telugu, Gujarati, Punjabi and Malayalam. Children who attend Chinese or Tamil medium primary schools often acquire an additional language, Mandarin or Tamil. However, Tamil medium private schools are largely absent, as the Tamil community often cannot afford this option. Consequently, many families choose not to pass on the ethnic language to children, prioritising standard languages instead.

As reported by several analysts and scholars, racial discrimination in Malaysia remains far from being resolved. Racism pervades multiple aspects of contemporary Malaysian society, including employment-related discrimination, education, economic policies, housing, and language policies. Systemic exclusion from meaningful employment opportunities contributes to income inequality, social marginalisation, and intergenerational disadvantage, in breach of the Universal Declaration of Human Rights and key International Labour Organisation conventions. Research indicates that students who experience racial bias are likely to undergo trauma, leading to decreased confidence and motivation, eroding academic performance, and negatively affecting long-term social and economic mobility. Moreover, racism in the housing sector is characterised by a combination of prejudice and structural weaknesses in state and federal regulation and policy. Regarding language policy, discriminatory practices have been observed affecting Chinese minorities and non-Malay-speaking individuals within Malay communities. However, it is important to highlight that multilinguism in Malaysia is allowed and incentivised. Article 152 of the Federal Constitution states, “While Malay is the national language, the freedom to learn, use and develop the mother tongue of all communities is expressly guaranteed”. Additionally, documents such as UNESCO Universal Declaration on Cultural Diversity (2001) affirm the importance of cultural plurality and recognise that “All persons have therefore the right to express themselves and to create and disseminate their work in the language of their choice, and particularly in their mother tongue” (i.e., Article 5). Conversely, it has been reported how Standard Chinese is gradually taking on this role, even replacing Chinese dialects within the domestic domain.

New Generations VS Old Generation?

To determine the active use of a language, linguists analyse several sociolinguistic factors, one of the most significant being usage among young people, who can ensure the preservation of both the language and the corresponding culture. Several factors contribute to the ongoing language shift among Chinese Malaysians. A significant number of Chinese Malaysian parents send children to Chinese-medium primary schools, where Mandarin serves as the medium of instruction. However, few studies have examined how the younger generation perceives the importance of the relation between dialects and cultural heritage. At the same time, the dominance of major languages in most social and professional domains has reduced opportunities to use community languages. In the broader context, speaking Mandarin is advantageous because it allows individuals to claim membership within the Chinese community worldwide. In the past, membership in Chinese dialect groups in Malaysia was essential for survival and for business networks. Giving speakers access to cultural ideals, norms, and ways of thinking that collectively contribute to the community. However, heritage languages now have low instrumental value, compared to Mandarin. Therefore, younger generations increasingly perceive Mandarin as conveying higher social prestige due to wider versatility of the language. On another note, research suggests that younger Chinese Malaysians tend to feel more positively toward Malaysian Mandarin Chinese than toward the variety spoken in Mainland China. Indicating that the language and cultural preferences of young Malaysians may reflect a strong sense of local cultural identity rather than external influence.

Studies on older generations bring peculiar results. Not only are new generations giving up on community languages, but also parents and grandparents seem to be slowly shifting toward Mandarin. The findings indicate that participants used Chinese heritage languages in everyday lives, particularly in domestic domains, employment, religion, and friendship. However, there is a noticeable shift toward Mandarin, which is increasingly perceived and used as the primary medium of communication in analogous circumstances. Analysis of the interviews suggests that the main functional distinctions between these languages remain in communication with friends and with family members or peers of the same or older generations. Not only do middle-aged and older speakers rely on Mandarin when interacting with younger generations who cannot understand or speak Chinese heritage languages, but also with individuals from other Malaysian states who may not share the same heritage languages. This language shift is not driven by personal preference for Mandarin among middle-aged and older speakers. Rather, it reflects a pragmatic need to accommodate younger generations and others who do not speak Chinese heritage languages. Moreover, recent studies also investigated the reasons that led parents to shift to Mandarin. Exposure of children to the heritage language through having grandparents as carers and media was not effective for language maintenance. Some parents also believed that transmitting heritage languages was not considered useful. In other circumstances, children are responsible for ‘micro-language decisions’ at the family level. The choice of Mandarin and English was affirmed by the broader sociopolitical context, whereby proficiency in standard languages ensures access to educational and career opportunities.

Conclusion

It seems inevitable that Chinese heritage languages in Malaysia are going to vanish. However, these studies report that Mandarin, particularly the Malaysian variety, plays a fundamental role in Malaysian Chinese communities as a primary language in community events, everyday life, media, and the domestic domain. Is Malaysian Mandarin Chinese then a modern tool to build a sense of a common cultural identity that strengthens local culture rather than an obstacle to heritage preservation?

Francesco Biancalana is a Master student at University of Naples, Italy, and a DDRN intern

Only a limited number of schools incorporate the use of Chinese dialects, and not all schools in Malaysia offer heritage language education, particularly those outside National-Type Chinese Schools, where Mandarin is the main medium. This results in noticeable differences in parental expectations and teaching standards. As noted by Qian (2024:60), “Malay teachers and classmates dominate public schools, while Chinese teachers and classmates dominate private schools. Parents of the two types of schools have different expectations for their children’s future, with children in public schools having more chances of staying in Malaysia to further their education. In contrast, private school students are more likely to go abroad for further studies after high school.” Moreover, access to heritage languages education is uneven across communities. As highlighted in the article, “Tamil medium private schools are largely absent, as the Tamil community often cannot afford this option.” This aligns with Ting (2009:11.8), who reported that “that privately-supported Tamil schools do not exist since the Tamil community cannot afford this luxury.”

Mandarin has become increasingly important in the economic sphere. In contrast to the past “Chinese dialect groups in Malaysia was essential for survival and for business networks” (Ong, 2023:33), Mandarin is now widely used within Chinese communities
for business purposes, making it a valuable asset in the job market.

List of references

Why People Send Remittances: Lessons from Cuban Communities Abroad

Adrian Ganic — Mon, 29 Sep 2025 12:11:41 +0000

Approximately 1 billion people rely on remittances—money sent by migrants to family and friends back home—to support their livelihoods, according to the International Fund for Agricultural Development (IFAD). The total value of global remittances to low- and middle-income countries was $656 billion in 2023, more than foreign direct investment and official development assistance combined. Yet, even though many people depend on them, and although remittance flows have increased by 500% over the last 20 years, remittances remain a peripheral area of research within the broader field of migration studies.

Among other things, scholars have examined how remittances influence economic indicators such as growth and investment capacity. Moreover, it has been observed how remittance flows not only transmit money but ideas and norms between receiving- and sending-country communities—so-called “social remittances”, first articulated by American sociologist Peggy Levitt in a paper published in 1998. Remittances’ effect on institutions, and whether remittances spur democratisation or strengthen authoritarian regimes, is also heavily debated. What these distinct strands of scholarship have in common, however, is that they overwhelmingly focus on the impact of remittances on recipient countries, sometimes referred to as the migrants’ “home countries”, or on people living there.

Denisse Delgado, a migration specialist and Adjunct Professor at Georgetown University and American University, Washington, D.C., has sought to address the lack of focus on individuals in sending countries. In 2024, she successfully defended her PhD dissertation titled Remittance Behaviors Among Cuban Migrants in Miami and Madrid: Motivations, Practices and Experiences, which explores remittance attitudes and practices among Cuban migrants living in Madrid and Miami. Dr Delgado’s research comes at a time when debates around migration in the United States have held centre stage for some time, with previous Republican and Democratic governments both in favour of tightly controlled borders. Since Donald Trump’s re-election in 2024, such policies have been further entrenched and escalated.

While attending the 4th International Forum on Migration Statistics (IFMS) in Malmö, Sweden, Dr Delgado sat down with DDRN to discuss her research and how the Cuban case informs the wider remittance literature.

Highlighting the Cuban Diaspora in Madrid

On why she chose to study Cuban migrants, Dr Delgado points out that “there is very limited information on Cuban migration and even less about remittances, so there is a gap in the literature that I think is valuable to fill. The other aspect is that being someone who was born in Cuba, I personally feel motivated to explore how families connect while living in different countries and across large distances.”

Most scholarship on Cuban migration and its social and economic consequences focuses on the large Cuban community in the United States, which is estimated to number approximately 2 million people, including Cuban-born migrants and their descendants, according to the Centre for Demographic Studies (GEMI) at the University of Havana. Of these, some 900,000 live in Miami, Florida, the largest Cuban community outside Cuba. Consequently, Cubans in the US sent a majority of the $1.83 billion worth of remittances entering Cuba in 2023, as estimated by the Inter-American Dialogue, a think tank.

Remittances are the second-largest source of foreign currency income for the Cuban state, meaning they are crucial for the import of goods and products not available on the island. For example, Cuba imports 70%–80% of its food.

A major contribution of Dr Delgado’s dissertation is the introduction of the Cuban diaspora in Madrid as a case to study Cuban migration beyond Miami. Some of the significant differences between Cuban migrants in Miami and Madrid in Dr Delgado’s sample are that the median age is lower in Madrid, with a higher representation of mixed and Black individuals.

While median incomes for Cuban migrants are higher in Miami, although they have a higher cost of living, the employment rate is higher in Madrid. Dr Delgado argues that the latter difference can be attributed to the absence of language barriers and a younger demographic among migrants in Madrid, compared to a larger share of retirees in Miami. Still, individuals in both cities face challenges entering the labour market, with initial jobs often underpaid and lacking job security. There is also a slight overrepresentation of women in both cities, following global trends.

Migrants’ Remittance Behaviour in Miami and Madrid

As it pertains to migrants’ remittance-sending behaviour, migrants in Miami sent $2,615 on average per year, while those in Madrid remitted $1,604 annually. Such a difference reflects the higher median income in Miami, and both amounts fall within the range for a typical migrant worker globally, as estimated by the United Nations in 2019.

The vast majority of migrants were driven to send remittances due to a strong sense of responsibility to support their families, with mothers being the primary recipients of remittances from Miami and Madrid. On average, migrants in both cities have been sending remittances for seven years.

Because of the US trade embargo against Cuba, there is a “slightly higher reliance on informal [remittance-sending] mechanisms in Miami compared to Madrid, partly due to more limited access to formal channels such as bank accounts. Nonetheless, migrants in Miami still use parcel agencies, Western Union, and other OFAC-authorised providers, which are formal mechanisms. Overall, migrants in both Miami and Madrid combine both formal and informal mechanisms to send remittances,” Dr Delgado explained.

“Remittances are not gender neutral”

Her dissertation finds that female recipients are more likely to use remittances to fulfil essential needs, like buying food or medicine for their family. Men, on the other hand, spent remittances on non-essential expenses. Women in both Miami and Madrid also send a higher proportion of their income as remittances compared to men, despite earning lower wages on average. This gender disparity is echoed by the UN’s International Organization for Migration (IOM) and is arguably related to traditional gender roles and women’s perceived position as the family caregiver. Dr Delgado believes such gender dynamics are not sufficiently accounted for: “I would say that a big problem, especially with policies related to remittances, is thinking that all migrants and remittances are the same, but remittances are not gender neutral.”

She adds, “If women in Cuba are receiving remittances and mostly spending remittances on essential consumption, that means they are not doing much for [their own] development, such as education, savings and investments. But men, when they were sent a higher proportion of remittances, were investing in businesses. So it’s important to develop policies where women, for example, could also invest in businesses if trained on how they could use remittances for that.”

Cuba as the Canary in the Coal Mine for Increasing Transfer Costs

Although remittances play a crucial role for both the Cuban people and the state, the country is usually omitted from the wider remittance literature, perhaps due to a lack of official data. The Cuban government does not publish official remittance figures, leaving researchers to estimate.

Regardless, studying Cuba can bring valuable insights. For example, remittance flows to Cuba are, because of the US trade embargo limiting formal banking and trade with the island, more politicised than those to other countries. This, in turn, leads to increased use of informal remittance channels. These include relying on personal networks or unlicensed agents, such as so-called Money Mules, to deliver money in a way which bypasses official institutions. Dr Delgado found that the cost of sending remittances to Cuba is generally between around 8%–11%, shooting up to 40% during the COVID-19 pandemic.

The UN has identified the average cost of sending remittances globally at about 5%, with the intention of lowering it to 3%. However, “there have been some discussions, in the United States, for example, to start taxing remittances. And what I can see happening, just because I know the Cuban case and how the restrictions impact the remittance market there, is that those migrants living in the United States wanting to send remittances to their families are going to go through more informal mechanisms trying to avoid [the higher costs],” Dr Delgado said.

Adrian Ganic is a M.Sc., THE LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE and a DDRN CORRESPONDENT

Financing Local Actors to Drive Africa’s Sustainable Future

Adrian Ganic — Mon, 29 Sep 2025 05:19:00 +0000

The Climate Policy Initiative reported in 2022 that Africa will need $250 billion in climate finance annually until 2030, with UN Secretary-General António Guterres calling at COP29 to transform the continent into a global leader in renewable energy.

In Sub-Saharan Africa (SSA), small- and medium-sized enterprises (SMEs) constitute over 90% of all firms, according to a paper by Sebhatu Kefleyesus Ogubazghi and Willy Muturi. Research by Oluwayemisi Adebola Abisuga-Oyekunle and collaborators, moreover, concludes that SMEs are well-suited for the developmental challenges of SSA because they are labour-intensive while requiring relatively little capital to get started. Successful SMEs, in turn, can generate economic growth through innovation and rapidly growing business as companies scale. These assertions have been echoed by other scholarship on SMEs in Sub-Saharan Africa, such as by Gift Mugano, although the effect of such firms on development and poverty reduction at the global level is ambiguous.

Dr Abel Gwaindepi, Senior Researcher at the Danish Institute of International Studies (DIIS), underscores the importance of African SMEs. He told DDRN: “I can give an example from Zimbabwe, where studies show that 80% of jobs are in the small, informal players. So, currently, if you’re thinking of growth strategy, you cannot ignore small and medium enterprises . . . The real innovators are your small and medium players.” Highlighting SMEs’ crucial role in Africa’s green transition, scholars like Nara Monkam argue that African states need to support local ventures to fully realise the potential of projects funded by international climate finance.

Studying South African Companies and Their Access to Green Finance

The push towards a sustainable future is not without challenges, however. African countries have limited institutional and technical capacity to develop attractive investment projects. Then, there are questions related to the effectiveness of climate finance as a catalyst for domestic firms. Can African companies access climate finance? And, if they do, how does green finance shape their climate responsiveness?

Dr Gwaindepi is investigating the latter two questions, recently obtaining funds from the Danida Fellowship Centre to study how South African SMEs in the agricultural and food (Agrifood) sectors adapt to the demands of climate finance and the adoption of sustainable business strategies. The four-year project, called Green Financing for Agrifood SMEs (GreenFi), will also explore the implications of green financing on the growth of SMEs in South Africa.

The GreenFi project has not yet produced any findings, but Dr Gwaindepi hypothesises that access to green finance will, first and foremost, depend on a company’s bottom line, its profitability. In South Africa, where inequality is very high, according to the World Bank’s Poverty and Inequality Platform, “we anticipate a varied outcome, where we may see that firms from previously disadvantaged regions may fail to meet the requirements to access this green finance,” Dr Gwaindepi notes, potentially reinforcing existing inequalities.

It is currently uncertain, he continues, whether potential access to climate finances makes South African agrifood SMEs step up adherence to sustainable business practices, such as switching to renewable energy—or if these firms were already adapting to changing climate conditions on their own.

The SME Finance Gap

Accessing finance is hard for many African firms, even beyond the agrifood sector. Between 60% and 70% of SMEs in SSA require a loan. Yet, only 17% of small firms and 31% of medium-sized companies can obtain financing, Abisuga-Oyekunle et al. found. This funding gap risks entrenching existing socioeconomic inequality, as noted by Dr Gwaindepi.

Access to finance also intersects with gender dynamics: “Women are active in livestock keeping, primary farming, raising crops and selling food that will eventually go to the market. Despite being such active players in these economies, service providers sometimes don’t look at [women] as viable customers,” says Edel Were, Financial Sector Specialist at CGAP, a think tank focusing on financial inclusion. Brookings lists several reasons for women’s economic exclusion, including poverty, limited formal employment, as well as societal barriers to land and property ownership.

It is important to empower women financially because, as Ms Were explains, “with women, we tend to see a lot of investment back into the community. This could mean health [for themselves and their children], or they could start a side business, using their surplus to accumulate savings or build some long-term insurance.” Such activity affects development because if “you multiply this case times whatever number, it can increase the economic wellbeing and development of that area, that country, that region”, she adds.

Of Africa’s total estimated climate finance needs by 2030—$2.4 trillion—only around 12% has been obtained, according to a report by the Boston Consulting Group (BCG).

Hurdles to Overcome

A major issue for African states and firms is that loans, even climate ones, come at a high, perhaps even unrepresentative, cost. “We don’t have a thorough assessment of risks in developing countries. What that means is that your access to credit, because you have this elevated risk profile, is very hard. [African states are] going to pay, say, 15% while Denmark or Sweden pays below 2% depending on the type of loan. That, then, creates cycles of indebtedness,” Dr Gwaindepi says. Indeed, UNDP estimates that unequal so-called sovereign credit ratings have cost African states more than $24 billion in excess interest and over $46 billion in forgone lending.

Additionally, research by Carmen Broto and Luis Molina Sánchez shows that sovereign ratings are closely linked to borrowing costs for domestic companies, restricting their access to international funds, green or otherwise. For example, African commercial banks can only offer SMEs loans with high interest rates, mirroring the banks’ own steep borrowing costs.

Another hurdle, specifically related to climate finance, is the lack of common frameworks and definitions between money that goes towards projects reducing greenhouse gas emissions—climate mitigation—and funds to develop infrastructure to adapt to climate change—climate adaptation. This incongruity matters, argues economist Francois Bourguignon, because developing countries tend to prefer financial flows that address climate adaptation. While international actors often prioritise emission reduction efforts. Secondly, without distinguishing between the two types of funding, it becomes harder to evaluate the impact of climate finance and how to improve it in the future.

African governments are also not without blame. Dr Gwaindepi emphasises that a reliable regulatory environment and macroeconomic fundamentals, such as a stable currency, low inflation and functioning institutions, are needed to attract financing and achieve development. “One bad policy can cause negative media coverage that creates negative investor sentiments. In such circumstances, capital retreats quickly back to stable markets, mostly in developed economies. And the spiral goes on. That’s what you don’t want,” he says.

Bridging the Gap

Addressing the barriers to climate finance access in Africa will require cooperation from a diverse range of actors working on multiple fronts. Research projects such as Dr Gwaindepi’s GreenFi, for instance, are crucial for uncovering new insights to formulate better policies. Such projects, moreover, push the frontiers of knowledge production through Global South-North research partnerships, allowing for the cross-pollination of ideas and methodologies. Ms Were’s work at CGAP collecting data on rural women’s economic activity to highlight traditionally excluded groups and supporting organisations providing financing for these local actors is another example of ventures that can make a difference. Both efforts are part of Accelerating Business to Empower Rural Women in Agriculture (ABERA), an initiative aimed at promoting inclusive innovation and financial solutions in rural economies.

International solutions will also be key. The African Development Bank’s SME programme, for example, aims to support African financial institutions with credit lines and technical knowledge to provide financing for SMEs across the continent. At the global level, the G77—a coalition of developing countries at the UN—has proposed several reforms to the unequal sovereign debt system.

Global North countries have firmly committed to mobilising climate financing for the green transition, Denmark included. Supporting local, national and international initiatives which increase the accessibility and fairness of climate finance is paramount—for the environment and African development.

Adrian Ganic is a M.Sc., THE LONDON SCHOOL OF ECONOMICS AND POLITICAL SCIENCE and a DDRN CORRESPONDENT

Riace: A Model of Humanity

Andrea Massarini — Wed, 12 Mar 2025 20:01:01 +0000

Riace is a small Italian town located on the Calabrian coast along the Ionian Sea. Historically, its fame is linked to the discovery of two magnificent Greek bronze statues from the 5th century BCE, found on the seabed off its coast in 1972. In more recent times, however, Riace has become synonymous with a virtuous example of hospitality and the revitalization of a small Italian town at risk of depopulation.

The 1990s mark the beginning of massive migratory flows toward Western Europe, particularly to the Italian peninsula due to its strategic location at the center of the Mediterranean Sea. Particularly, in 1998 two hundred Kurdish refugees arrived to Riace. This event sparked a profound sense of solidarity among the town’s residents, including the former professor Mimmo Lucano. It was during this time that the Città Futura Association was established, with the goal of assisting the newly arrived migrants by providing them with abandoned homes left behind by former residents who had emigrated over the years. The initiative aimed not only to offer shelter, but also to repopulate a town facing a significant demographic decline.

Città Futura took on the responsibility of managing asylum applications and migrant reception within the framework of the SPRAR (Protection System for Asylum Seekers and Refugees). From that moment on, Riace became a home not only for refugees but also for undocumented immigrants with the right to asylum. This approach helped sustain essential services, such as the local school, and supported the town’s economy through small-scale entrepreneurial activities in handicrafts and agriculture.

As migration flows to Italy increased, the National Asylum Program (PNA) was launched in 2001, with three main objectives: to establish a national system of reception, assistance, and protection for asylum seekers, refugees, and displaced persons; to promote integration; and to create mechanisms for voluntary repatriation and reintegration into their countries of origin.

In 2004, Mimmo Lucano was elected mayor of Riace, a position he held for three terms consecutively from 2004 to 2018, and one more time in 2024. His legacy is a system that embraces coexistence among different cultures as a valuable resource, and a model founded on the principle of shared humanity—the Riace model.

THE RIACE MODEL

This model was designed to avoid Riace the threat of becoming a “ghost town” by welcoming migrants and providing them with resources to help integrate into the community. The initiative sought to address the demographic challenges facing the region, which had been experiencing significant population decline due to economic migration from rural areas to urban centers, a very common trend in Italian villages. The Riace model operates on principles of inclusion and community involvement. It provided migrants with abandoned homes, job training, and a network of support that included local citizens. This innovative approach aimed to transform the socio-economic landscape of the town, fostering a sense of community between locals and newcomers. Unlike other towns, where schools close due to a lack of students, the kindergarten in Riace in 2017 hosted 30 children of different nationalities, providing jobs for 14 staff members. The new inhabitants were engaged in various local projects, which helped to create jobs and integrate them into the fabric of Riace. Many of the migrants and residents of Riace find employment in local workshops, reviving trades and traditions that had long fallen into disuse.

Over the years, several artisanal shops have been established, including those dedicated to ceramics, handloom weaving and wool spinning. Others focus on the production of preserved foods, dairy processing, bread-making, olive oil extraction and chocolate craftsmanship.

To address delays in the disbursement of funds for reception projects, Lucano implemented a smart system of “bonus vouchers”. Introduced around 2010, this form of virtual currency was designed to stimulate the local economy. Shopkeepers in Riace agreed to accept these vouchers, which could later be converted into euros once government funds were allocated—typically after a waiting period of six to seven months. This initiative not only strengthened local businesses, but also fostered mutual respect between residents and migrants.

Thus, migration, rather than being seen as a burden, became a valuable resource—an opportunity for renewal and a shift in perspective, allowing people to view migratory movements as a chance to invest in the rebirth of a town. Thanks to these remarkable efforts, in 2016, Fortune magazine recognized Riace’s mayor Domenico “Mimmo” Lucano as one of the 50 most influential people in the world.

FROM RECOGNITION TO REPRESSION: THE POLITICAL AND LEGAL STRUGGLES

The Riace model’s development coincided with significant changes in national immigration policy, particularly the shift towards a more centralized approach as initiated by the Decree Law in 2016. This shift reduced the autonomy of local institutions in managing integration projects, which posed challenges for the Riace model. Despite its initial success and recognition, the local administration faced heightened scrutiny and pressure from national authorities, leading to conflicts that necessitated a reassertion of the model’s identity as a means of resistance. Furthermore,

the Riace model faced also a political challenge, particularly under the government of Deputy Prime Minister Matteo Salvini. Salvini’s right-wing party has been vocal against immigration, leading to increased scrutiny of Lucano’s administration. In October 2018, Lucano was arrested and placed under house arrest on charges related to facilitating “marriages of convenience” for immigration purposes and mismanagement of public funds, furthermore in 2019 he was accused of issuing identity documents to immigrants staying in reception centers. These allegations sparked national protests and a debate over the future of the Riace model. In the aftermath of Lucano’s arrest, the Italian Interior Ministry mandated the relocation of migrants from Riace, signaling a significant shift in the government’s approach to immigration and integration. Critics of the government’s actions view Lucano’s arrest as politically motivated, aimed at dismantling a model that had come to symbolize a more compassionate approach to immigration in Italy.

This situation led to the departure of several migrants, who sought a better life elsewhere, as well as their relocation to other SPRAR facilities. While certain legal regulations may have been violated —operating in a scenario that was partly illegal but morally licit and justifiable—these actions were taken in pursuit of a greater good: not only safeguarding human lives but also upholding the fundamental value of belonging to a shared humanity, because according to Lucano legality is not a synonym for democracy and equality.

On February 12, 2025, the Italian Supreme Court of Cassation upheld a final sentence of 18 months, with a suspended sentence, for Mimmo Lucano, who currently serves as both mayor of Riace and a Member of the European Parliament. He was found guilty of a single instance of falsifying a public document. In the first-instance ruling, he had been sentenced to 13 years and 2 months in prison.

“Instead of portraying migration as an invasion—as it has been framed for years by a criminal narrative designed to justify deportations, forced detentions, supporting the Libyan and Albanian camps—Riace has demonstrated that hospitality can be practiced with kindness. And for this reason, it had to be obstructed,” Lucano stated.

RIACE AND THE QUESTION OF SUSTAINABILITY: LEADERSHIP VS INSTITUTIONAL FRAMEWORK

As of 2022, one-quarter of Riace’s 2,000 inhabitants are migrants from diverse regions, including Afghanistan, Kurdistan, Palestine, Somalia, Mali, and Senegal, contributing to a rebirth of local businesses and community services. The local economy saw the emergence of various small enterprises, alongside the reopening of schools and restaurants, creating a vibrant atmosphere of coexistence and mutual benefit. Under the leadership of Mayor Lucano, the town exemplified a positive integration model, fostering a sense of community among long-time residents and newcomers alike.

While Riace has received honors for its model, it is not the only town employing similar strategies. Nearby Satriano, for example, has also attempted to adopt the Riace model, but with less success in terms of job placement and community integration, highlighting the variability in outcomes across different municipalities. This situation raises questions about the scalability and sustainability of the Riace model, as well as the broader implications of migration and integration policies in Italy. In fact, The Riace model was largely associated with Lucano as an individual rather than with a broader institutional framework. This meant that decision-making was heavily dependent on his vision and leadership, as well as his preferences. When Lucano faced legal troubles and was removed from office, the project suffered setbacks. This scenario represents a broader challenge in social justice movements, namely when charismatic leadership is the driving force, the changes introduced might not be deeply institutionalized, making them susceptible to collapse once that leader is no longer in power. While Lucano’s work was groundbreaking, it also raises the question of whether migrant integration efforts should rely on exceptional individuals or require stronger structural mechanisms to ensure fairness, participation, and longevity.

RIACE’S LEGACY

Lucano’s vision emphasized the importance of dismantling barriers of race, discrimination, and poverty. His administration aimed to create a “happy community” where both locals and migrants could thrive, leading to a demographic shift where the number of births surpassed deaths in the town. By welcoming over 800 asylum seekers in more than 20 years, fostering a community where at least 20 different ethnic groups coexist harmoniously, Riace demonstrated that successful integration can foster mutual enrichment among both locals and newcomers, effectively addressing local demographic challenges and enhancing cultural diversity.

The Riace model stands as a testament to the power of solidarity, proving that migration can be an opportunity for renewal rather than a crisis, where integration and revitalization can go hand in hand. While its future remains uncertain, its legacy continues to inspire a clear message: when communities welcome diversity, they open doors to a more sustainable and compassionate future, challenging the conventional narratives of exclusion and fear.

Andrea Massarini is M.Sc. in Global Development, University of Copenhagen, DDRN Intern

Taxation Transactions are not a One-Way Street!

Joel Agbesinyale — Thu, 11 Jan 2024 14:09:52 +0000

According to the African Department of the IMF, the main emphasis on domestic revenue mobilisation (DRM) stands as a key priority in meeting Africa’s extensive developmental needs. Considering the recent COVID-19 pandemic, both global north and south researchers have advocated for a heightened and sustainable DRM objective in Africa to sustain development efforts, aligning with the attainment of the Sustainable Development Goals (SDGs). This underscores the significance of DRM, signifying tax revenue collection, in Africa. Consequently, the OECD, through its Africa Initiative, has advocated for Tax Transparency Standards as a means to elevate DRM across the continent. However, a notable aspect is that Africa’s tax bases are considerably restricted owing to the prevalence of high levels of ‘informality,’ worsening tax evasion and illicit financial flows (IFF). In this context, the concept of informality sparks controversy due to its limited conceptualisation as solely pertaining to the informal sector within African economies, impeding revenue mobilisation. Challenging the assumption that only informal sectors hinder effective revenue mobilisation, some researchers argue that the framing of informality concerning DRM poses an inherent problem.

Abel Gwaindepi, a senior researcher at the Danish Institute for International Studies (DIIS) and an external lecturer at the Centre of African Studies (CAS) at the University of Copenhagen, contributes to the discourse by challenging the framing of informality concerning taxation in Africa. In his working paper for the United Nations University World Institute for Development Economics Research (UNU-WIDER), titled ‘‘Domestic revenue mobilization and informality,’’ Gwaindepi critically examines dominant conceptualisations of informality in the context of the recent COVID-19 pandemic. He aims to illustrate how the notion of ‘‘informality,’’ impacting DRM, extends beyond the visible informal sectors within African economies. He also demonstrates that informality is only one among many issues standing in the way of DRM in Africa. Gwaindepi further argues for a re-articulation of informality when it is included in DRM research. During an in-depth interview with Gwaindepi, we discussed his working paper in detail, including other aspects of taxation and revenue in Africa.

Why is taxation important for government revenue?

‘‘Government revenue has always been about taxation. Aid inflows, natural resource revenues etc. will fizzle out but taxing individuals and firms as they produce, trade, and consume goods and services is the backbone of any good tax system’’, Gwaindepi asserted. Considering his focus on the colonial and post-colonial African state and its functions, he explained that what states collect via taxation is the most reliable way for governments to raise revenue. He elaborated on his viewpoint, emphasising that some African countries, perceiving an ‘abundance’ of non-tax revenue, tend to allocate less effort to taxation. Consequently, he argued that anything pertaining to revenue fundamentally centres on taxation. Take Ethiopia, for instance, with a national air carrier like Ethiopian Airways; it serves as a revenue generator without directly taxing its citizens. Similarly, consider a resource-rich nation like Nigeria, where a substantial portion of revenue is derived from oil. In such cases, the state might not need to exert significant efforts towards taxation because of the availability of non-tax sources of revenue. Thus, within this framework, the discussion of government revenue primarily revolves around taxation, according to his argument.

The World Bank notes that Low-Income Countries (LICs), notably in Africa, which are most in need of revenue, often encounter formidable challenges in tax collection. The World Bank reiterates that taxes play a key role in sustaining growth and equity, especially within the context of the COVID-19 pandemic. Consequently, the World Bank advises that nations collecting less than 15% of GDP in taxes must significantly strengthen their revenue mobilisation to address the fundamental needs of their populace. Therefore, the question arises: How can countries effectively enhance their domestic revenue mobilisation?

Effective ways of mobilising tax revenue

‘‘Do countries have the capacity to mobilise revenue? Capacity is one side of the coin. You also have what we call the tax base, that speaks to the economy where the money is. As people and firms produce, sell, and consume goods and services, governments have an opportunity to collect tax revenue’’, Gwaindepi responded. A tax base encompasses the entirety of income, property, assets, consumption, transactions, and other economic activities subject to taxation by a governing authority or government. ‘‘You can be an effective tax collector, but if you are collecting it only from the very poor people, then your capacity does not amount to much, essentially. Many of the poor people earn below taxable income and those who can pay can only bring a drop in the ocean in terms of required revenue. So, the government has an incentive to make the economies thrive. Why? Because only then can the governments collect taxes, otherwise, if they do not promote economic development, it means the tax bases are very low. So, those to me are the two most important things – the capacity to collect taxes and a thriving economy which allows incomes to accrue to taxpayers,’’ he explained further.

The IMF contends that the state’s capacity to collect taxes holds central importance in financing investments and crucial social services, including health, infrastructure, and various public goods. The focus is notably on ‘capacity,’ delving into the details of how, where, and when taxation occurs, representing a primary aspect of capacity. ‘‘Are there taxable economic activities or incomes in the country, and in which sectors? For many African countries the question is, is the taxable income within formal or the informal sectors? So, the capacity becomes essential. Can you reach your formal and reach your informal activities equally, and how?’’, Gwaindepi quizzed. This sparked a debate on the nexus between DRM and informality in Africa, with researchers being sceptical of what can be raised in the informal sectors.

Informality and shadow economies in Africa

‘‘Informality refers to any activity which is not registered. So, this is doing an economic activity, which the state does not know about and thus cannot assess incomes for tax purposes. In the world of measuring progress, not knowing more about the majority of citizens´ economic activities possess many taxation challenges,’’ Gwaindepi clarified. However, this concept of informality has faced opposition in Gwaindepi’s working paper and that of other researchers . He posited that in developing regions such as Africa, informality does not solely pertain to unregistered businesses or individuals. Gwaindepi highlighted that informality extends its influence even within the formal realm. He elaborated that formal businesses might opt not to register certain transactions to exploit perceived advantages, thereby concealing paper trails and evading tax payments. This practice fosters an environment conducive to tax evasion and corruption, ultimately nurturing what is commonly referred to as a ‘‘shadow economy.’’

The shadow economy, known by various names like the gray economy, hidden economy, black economy, or cash economy, is outlined by Leandro Medina and Friedrich Schneider in their IMF working paper as comprising all economic activities hidden from authorities due to monetary and institutional motives. Notably, Africa trails behind other global economies in revenue mobilisation due to housing the largest share of shadow economies worldwide, encompassing not only informal sectors but a broader spectrum of economic activities. Supporting this standpoint, Gwaindepi asserts that shadow economies potentially hold greater significance than the informal sector. He likens shadow economies to a larger umbrella, encompassing and sheltering informal sectors within its broader scope. ‘‘I think the shadow economy is more important than the informal sector when it comes to taxation in Africa. For the informal sector, the visible street vendors are usually targeted but a lot more happens informally, and pockets of high incomes are not within sight. It is much harder to discover where real pockets of wealth are within the informal economic activities. While vendors are harassed for not paying taxes, for instance, there are home based and online based car sales with taxable incomes. But when you say shadow economy, you are saying, wait a minute, there could be even big companies who go under the radar, so to speak. So, the shadow economy is much broader and useful when thinking about taxation. It is like the bigger umbrella here, where the subsistence informal workers also find themselves’’, Gwaindepi argued.

Focusing only on the informal sectors addresses a fraction of the broader issue. Therefore, it is important to delve deeper into the scope of informal economic activities, spanning from small, unregistered enterprises to larger, formal ones. This comprehensive understanding of informality within an economy shapes the most viable strategies for revenue mobilisation. Hence, the effectiveness of taxation hinges upon the specific type of informality present. In developing regions like Africa, the base tier of informality comprises individuals with limited education, often unemployed, who rely on subsistence activities, particularly in agriculture, to sustain their livelihoods.

Understanding these diverse aspects of informality is crucial for designing targeted and effective revenue mobilisation approaches. Addressing the largest category of informality in Africa, despite its size, remains a challenge in achieving substantial revenue projections. The conventional approach would typically involve digitising systems and aiming to register everyone, with the expectation that this process would result in increased revenues. ‘‘I think that is one of the huge assumptions I and other researchers are trying to unpack. We have low tax revenues because we have huge portions of citizens generating livelihood in the big informal sectors. If only we could register them, the assumption goes, and make sure everyone is paying taxes, then, we reach our goal. This is an error, because not all informal businesses are equal. They are segmented as I show in the working paper. Subsistence informality cannot produce the desired taxes even with state-of-the-art registration programmes and systems!’’ Gwaindepi exclaimed.

Gwaindepi further proposed that understanding the root causes prompting people to engage in informal sectors stands as the primary concern and a key step in improving low tax revenues. Merely imposing new taxes through digitisation does not naturally translate into increased revenues. For instance, cases in both Kenya and Ghana illustrate that government-imposed taxes or levies on electronic transactions via digital platforms, such as M-PESA and MOMO (akin to MobilePay in Denmark), resulted in panic withdrawals and a decline in electronic transactions rather than the anticipated revenue surge.

The role of the informal sector in revenue mobilisation

‘‘The question is what has the state done and what is it doing for the informal sector for reciprocal voluntary tax compliance to exist?’’, Gwaindepi quizzed.

Gwaindepi advocates for incentivising tax payment among citizens by offering improved services. This a marathon rather than a sprint because it takes time, but it is necessary. He proposes that interventions, such as empowering the informal sector, could effectively achieve this goal. By demonstrating tangible government support to the informal sector, individuals within it would likely feel encouraged and equipped to contribute taxes. ‘‘I think that is where the issue is. Taxation transactions are not a one-way street. Tax morale remains low because taxpayers do not get public services. Many informal sectors are underserved by governments, and this is the big problem we have in Africa. We think that it is only about capacity to raise taxes, but governments need to invest more. It is a two-way street, and it is about service provision’’, Gwaindepi asserted.

Moreover, the World Bank asserts that governments should prioritise fairness and equity within their tax systems. This necessitates aligning objectives, such as enhancing revenue mobilisation, fostering sustainable growth, and minimising compliance burdens. Fairness plays a pivotal role in augmenting tax collections. It is crucial for governments to ensure that fairness considerations encompass the equitable taxation of both the affluent and the impoverished, as well as encompassing both formal and informal sectors. The international tax systems also matter. Large firms/corporations have been able to take advantage of globalisation and lapses in international tax systems. Base erosion and profit shifting remain a menace that affects LICs, especially in Africa. A recent Global tax evasion report shows that global billionaires pay only 0-0.5% of taxes due to the use of shell companies. This adds to the existing illicit capital flows from Africa.

Joel Agbesinyale holds a Master Degree in Development Studies, Lund University, Sweden

Exploring the Junction between Colonialism and Climate Crisis in Caribbean Literature

Asger Roejle Christensen — Thu, 11 Jan 2024 14:08:14 +0000

A young Danish literature researcher is reading novels and poems from the Caribbean archipelago in order to understand the relationship between colonial history and environmental degradation.

Literature is always mirroring the society around it. Sometimes this mirror even influences the course of the society in which it’s written and read.

”As an academic, I believe that cultural objects play a crucial role in the way we conceive the world. I am interested in how literature can change perceptions and how an academic devotion to a literary tradition such as the Caribbean, can contribute to a new outlook on our connection with the physical world”, says Anne-Sophie Bogetoft Mortensen, a Danish PhD-researcher from RUC, Roskilde University.

From her busy reading desk at Roskilde University or at home in Copenhagen, over the last couple of years she has been exploring the junction between colonialism and climate crisis in three centuries of Caribbean literature, primarily poetry. But before she could dive into the literature, she had to first familiarize herself with the language and poetic models of the region.

”Language and colonial history is profoundly intertwined in the Caribbean”, Anne-Sophie explains. ”British English, which is the official language of the islands’ literature I work with, expresses a British reality. The pace, the symbolism, the rhythm, mirrors a typical British landscape with green hills, heavy rain and grazing sheep. Some of the most significant Caribbean literature theorists argue that these British rhythms and poetic models are unable to reflect fully the very different experience of living in the Caribbean with its history of earthquakes, recurring hurricanes etc. It simply does not have the capacity to captivate and express those experiences.”

”Rhythm is very important in the Caribbean poetry. Now, when I say rhythm, I am referring to rhythm in a given text, but also to as rhythm which is conditioned of the physical materiality around the writer”.

”Tides have a specific rhythm, waves have a specific rhythm, and the hurricanes which hit the Caribbean archipelago every other year have yet another rhythm. These natural phenomenona and their rhythms are reflected in the poerty, and so one could say, that there is a rhythm imbedded the landscape, and that this rhythm is reflected in the poetic landscape of the texts that I read”.

The starting point for Anne-Sophie’s keen interest in Caribbean literature was her worries about the current threats towards the colonized countries, societies and landscapes from global warming.

”I am interested in how literature can change people’s mindset and how a serious study of a literary tradition, as in my case the Caribbean, possibly can inspire a new perception or attentiveness to the connection between human beings and the physical world around us. The literary texts are my primary empirical material, but I am approaching it in a very interdisciplinary way, connecting it with theories from critical geography, history and non-western philosophy from around the world”.

”To many people, the climate crisis might seem like a new thing, something that is just flaring up now, but many climate historicist will argue, that our current climate crisis began back in 1492 with the start of colonization, with the transportation and exploitation of humans, plants and land.

This recognition might create a higher degree of global cohesion. If many of us have become a little bit immune towards all the news stories about global warming, economic growth, racism and other controversial issues, art and culture might possibly create some sort of new and much needed resonance”.

An outsider’s viewpoint

Early in her research process, Anne-Sophie made a deliberate choice not to try to contact the writers whose works she is studying. It’s the texts that are the objects of her interest, not the intentions of the artists behind.

Of course, she planned from the beginning to go to Barbados, Jamaica and other islands on to get a sense of the literary environment, and to participate in literary events and engage with local scholars, but because of the Covid-19 pandemic and the resulting closed borders, that hasn’t been possible – so in spite of many years’ interest in the literature from the place, Anne-Sophie has actually never been to the Caribbean in her life. The object of study is squarely the texts in front of her.

”I would not call it a handicap – but it has definitely been a challenge for me”, she says.

At the same time, the corona restrictions have in a paradoxical way been a help for Anne-Sophie in her studies. She has been able to participate in a lot of online international conferences, PhD-courses, reading groups etc., which would normally not have been possible, as everything took place online. Therefore, her primary collaborators have been researchers around the world, rather than other researchers from Danish universities:

”If I could start over again, that is one of the things I would have done differently. I would have reached out more to relevant people at RUC and other Danish universities, rather than being so focused on international networks. It just happened that I very quickly got into online contact with some highly recognized international literature professors and an international group of critical geographers who helped me a lot”.

”So in many ways, corona has been a blessing in disguise for me. There is a broad international community of researchers in my field, and because everything has taken place online, I have been able to participate in much more than I would otherwise have been”.

Language is in itself a challenge in the region. Many of the local authors in islands such as Barbados, have written about the difficulties of writing about the Caribbean environment, history, culture etc., in a language that is originally the colonizers. Many of the authors are searching to install their own national language, to achieve something which is a language in itself and not just a dialect of somebody else’s language.

”Most of the authors and literature-theorists in the islands grew up speaking English with their parents, but is a local variant of English. Jamaican English is not the same as Barbados English, or Bajan as the locals would call it, and both are very different from British English, which is what the locals were taught in school. The literature of the various islands mirrors these variants of written English, and because of that they are indeed quite challenging for someone like me to read, let alone analyze. But this also means, that I am much more aware of small language details, and that I am constantly attuning myself to the Caribbean reality, via the language”.

Anne-Sophie recognize that the curriculum at literature studies at most Danish universities have become less ”white” during the last ten to fifteen years. The students are expected to read more and more non-western literature, both fiction and theory.

”However, the whole literary community both in and outside of the university is still very dominated by the West here in Denmark. I wanted to write a PhD about something else in order to challenge myself”.

Coasts and plantations

In the beginning of her research, Anne-Sophie focused on the shore as the main theme of her dissertation. She observed the Caribbean coast as a literary landscape.

”The islands’ continuous shorelines and seemingly isolated geography made them an obvious destination during the maritime colonization, but also meant that the shore often became the site for the first, and often traumatic, encounter between colonizer and native islander. Trauma has remained the Caribbean shore’s main characteristic”, she explains.

”The shore were at the same time symbols of the beginning of the nightmare – and the only possible escape. They became the site where busy sea ports where established. At the same time, the sea became the only possible escape road for the island’s natives and the enslaved… Today the shore remains the primary attraction on many of the islands. Tourists from all over the world flies thousands of miles to experience the Caribbean beaches, all the while forcing the locals away from them”.

”The place where sea and land meets are also where some of the threatening consequences of climate change affect the islanders most significantly. Throughout the last couple of decades, the Caribbean has experienced an intensification of the disastrous weather phenomenona, such as tropical storms and floods, threatening to erode the coastal societies financial fundament and qualification as a home for the native Caribbeans”.

But gradually through the research process, this original focus on the shore was supplemented by a broader view, as the inland plantations began playing a major role.

”The Caribbeans have often been presented as a kind of rest area on the enslaved peoples’ tortuous travel from the African continent to the American continent, but actually there were a lot of sugarcane and cotton plantations on the islands themselves. Much of the suffering took place there, and much of the literature has its roots there, in that tumultuous and tormented soil”, Anne-Sophie explains.

“The plantations were a result of an extractivist way of thinking: in the plantations both soil, plants and humans where being treated as nothing other than resources fit for making profit off on.”

”Something happens to those who are enslaved under such conditions. A kind of alienation. They are put there as a work force, and the only relation they have to the soil they are cultivating and the only relation they have to the land they live on is that they are working it, draining it, in order to give all the crop to their masters. That certainly does not create ground for taking good care of the land.”

”Neither the cotton nor the sugarcane became part of the enslavedes identity in a positive way. In the literature, both of those crops are often closely connected with pain.”

”In contrast, on some of the islands, the plantation owners gave the enslaved and their families small private plots, often with bad soil, that they were allowed to cultivate themselves. Not out of pity of course, but because it was expensive to feed a work force of 30 families. Better they took care of that themselves”.

”They were able to sell small amounts of these private crops and exchange them with other families. It gave a limited feeling of independence, but the purpose was to keep the enslaved families in check. The plantation owners were very much afraid of any form of rebellion”.

”On these private plots, many families were growing yam, a root vegetable which they had originally brought with them from their African homeland. While cotton and sugar became symbols of repression, yam became a small symbol of reclaiming one’s freedom, trying to create something for oneself”, explains Anne-Sophie Bogetoft Mortensen.

How Economic Development is Embedded in National Institutional Systems

Asger Roejle Christensen — Thu, 11 Jan 2024 14:07:47 +0000

Development outcomes, including the ability to capture gains from globalization, depend, to a large degree, on national embeddedness of economic activities. A Danish professor has observed this interaction over many years in Indonesia’s development.

While firms are the primary economic agents in modern economic activities, their development and impact on the wider economy are contingent on their connections to the wider institutional system, not least in countries in the Global South. Professor Peter Gammeltoft from Copenhagen Business School has observed this interaction for many years, especially in Indonesia and other Southeast Asian countries.

”For many years, I have worked with issues around economic and technological change, innovation and internationalization”, he says. “I have been particularly interested in how development outcomes, including the ability to capture gains from globalization, depend on the national embeddedness of economic activities”.

This ”embeddedness”-perspective was already an important part of Gammeltoft’s PhD-thesis in the late nineties on the development of the Indonesian electronics industry.

”I analyzed how and with which effects the companies and their activities were ’embedded’ in the wider economic and institutional system. Even though Indonesia has transitioned, successfully, from an authoritarian to a democratic system, many of these basic economic processes remain the same, only even more complex.”

”It’s a perspective that has taken inspiration from the various perspectives on national institutional systems, such as the innovation system, business system, and national technology system approaches, as well as from Albert Hirschman’s emphasis on linkages”, he explains.

Miracle and crisis

Peter Gammeltoft is now a professor with special responsibilities (MSO) at the Department of International Economics, Government and Business at Copenhagen Business School, where he has been employed since 2003.

Over the years, Peter Gammeltoft’s teaching and research interests have encompassed international development studies, economic geography, international business, business economics and innovation and entrepreneurship.

After university and a stint in international consulting, he started his academic career writing a Danida-funded PhD project in the second half of the 1990s on industrialization in Asia, with the case of the Indonesian electronics industry.

The PhD project took longer than planned due to the Asian financial crisis, which broke out a year into the project.

“When I started the project, Indonesia was considered a miracle economy but, a year later, the economy was devastated. I remember walking around in Jakarta in May 1998 with huge demonstrations, riots, burning buildings and vehicles, combat forces, tanks and helicopters and it was not easy to schedule my interviews with company managers”.

During the project, Gammeltoft spent more than a year in Indonesia and learned the language well enough to conduct interviews with managers, workers, and entrepreneurs in their own language.

After the PhD project, even though there were certainly many worthwhile issues for research, he had to realize that, at the time, the interest in Indonesia from the Danish side was limited. Instead, he participated in developing and launching an international researcher network, “Globelics”, focused on innovation in emerging and developing economies.

International networks

For several years, Gammeltoft’s main research interest moved to China. He studied first foreign investment in China and then Chinese foreign investment abroad, especially related to research and development (R&D) and knowledge-intensive activities.

He also did research and teaching on emerging markets more broadly and started running a biennial international conference series at CBS about them in 2008, which is still ongoing. As an outgrowth, he is currently running a Ministry of Higher Education and Science “International Network Programme” focused on emerging markets with scholars at three North American universities.

Yet, he has maintained his research interest in Indonesia and has, over the years, spent a total of around three years in the country, conducting the first comprehensive study of Chinese investments in Indonesia in cooperation with Indonesian partners, and a follow-up study some years later.

In terms of current research interests, Gammeltoft is looking back towards where they began.

“The Danish government and industry are increasingly becoming interested in other emerging economies besides China, such as Indonesia, Vietnam and India, and I’m considering how I might bring my research interests and competencies to work on contemporary Indonesian development challenges”.

One particularly relevant research challenge that Peter Gammeltoft is currently focusing on is green transition in the Indonesian energy sector.

“Indonesia is one of the world’s largest emitters of greenhouse gasses and also one of the countries most vulnerable to the effects of climate change. Yet, even though Indonesia has huge potential in renewable sources of energy, the uptake of these technologies is very limited, and while progressive plans and policies have been elaborated, very little concrete progress is achieved. Even in a contemporary world full of uncertainties, it’s difficult to think of a more important research challenge.”

The World Has Many Other Axises Than North-South

Asger Roejle Christensen — Wed, 28 Jun 2023 08:38:01 +0000

Development aid is nowadays indistinguishable from development financing. Thus, the development industry may no longer be the same development industry decolonization-focused researchers are critizising. A veteran in Danish development research warns against trends in the current debate.

It is always a good idea to promote more research in the global South, but if we want to understand what is going on in the “polycentric world” in which we live, then we need more polycentric research. This is an extremely important point for one of the veterans in Danish development research, Laurids Lauridsen, professor emeritus at Roskilde University, RUC, in an interview with DDRN.

“If we as development researchers only have to study the so-called ‘development industry’, as the Swedish development researcher Maria Eriksson-Baaz has called for, then we will end up in old-fashioned thinking”, warns Laurids Lauridsen.

Last year, in an interview with the DDRN, Maria Eriksson-Baaz suggested that all academic disciplines were in need for being globalized, but that traditional development studies should be left to researchers from the South.

Laurids Lauridsen, however, who has a long career as professor in international development studies and has never himself worked with aid and the aid sector, does not believe it is a good idea to limit our research in the North to this field and let the broad research into the conditions in the South be only carried out by researchers from the South itself.

“Those of my colleagues who focus only on decolonization are trapped in seeing only a North-South axis at play. It easily becomes an old-fashioned way of seeing the world. Nowadays, there is much more going on than that. We must also be able to understand all these other trends and developments”.

A massive transformation

At the same time, the development industry itself is “undergoing massive transformation”, Laurids Lauridsen points out.

“In many fields, it is not called development aid at all anymore. Now it is rather indistinguishable from development financing. A lot of aid is transferred to or used to derisk what is called business – and considered business by the people involved. In our part of the world there are not enough productive investments corresponding to the savings we have. If that money has to go to work, it has to go to The Global South, because where else could it move? The financial sector is getting a new playground.”

“Some different actors come into play” according to Laurids Lauridsen’s observations, “and the development industry may no longer be the development industry Maria is talking about”.

“What we really need, what would be extremely relevant, must be international development studies that more fundamentally understand what is happening when suddenly there is a lot of money available to invest in building a new large port in poor Mozambique. Of course, this does not prevent Mozambique colleagues from sitting around and researching the same thing, but if we want to understand the world as it is, we must also research it ourselves”.

“There is absolutely not enough research of this kind, neither in the North nor in the South. What rolls on right now, happens behind people’s backs, because the research is focusing on everything else. Researchers in The Global South are not in a position to see this better than the rest of us are. This does not prevent the rest of us from trying to understand the world we live in. We must be able to look polycentrically at the world in a different way than it is done today. We think too much about our own things, the world of research is far too slow in shifting gears”.

Revival of industrial policies

Laurids Lauridsen was originally educated in political science at Aarhus University. He worked as a geographer at RUC before he was involved in the creation of the programme of international development studies and later helped in shaping the programme for global studies as well. The headline for his studies has all the way been “industrial policy”.

“But industrial policy has become something else in the 21’st century, because the world is different from the time Taiwan and South Korea moved forward in the 1980’s. During the ‘neo-liberal’ era in the 1990’s and just after the year 2000, the concept of industrial policy wasn’t mentioned. Now, finally, everyone is trying to define industrial policies again, IMF does it, The World Bank, even the U.S. does it. Many countries around the world are conducting industrial policies that is suited for them – after many years of being pressured not to conduct an effective industrial policy by neo-liberal donors from the North”.

Laurids Lauridsen is labelling the “structural adjustments” period of global development efforts, mostly during the 1990’s and the first decade of the 2000’s, as a “neo-liberal trip into the forest”.

“What I do is, that I work comparatively. When making comparisons, it can often be an advantage to see things from the outside. But there is also a requirement to have a sufficiently deep contextual knowledge. Locals who have grown up in a given community have that contextual knowledge, so you need to do the research in cooperation between North and South”.

Having said that, Laurids Lauridsen agrees with Maria Eriksson-Baaz and other decolonization-oriented researchers that “the existing asymmetry is a very big problem”.

“It is important to understand why the asymmetry is there and that we are also to blame for it. It is a good debate that is currently being taken up within the NGO world. In the future, research should be far less Euro-centric than it has been”.

EU: Towards a More Sustainable Corporate Development?

Federica Sasdelli — Fri, 09 Jun 2023 13:17:40 +0000

The Corporate Sustainability Reporting Directive (CSRD) published in December 2022 is the most recent step towards a more sustainable development at a European Union level. In detail, it aims to ensure that companies provide adequate information regarding the way they operate and the impact they have on the environment. The implementation of this new piece of legislation will not only have an impact on our continent, but globally, as the European market is one of the central hubs of world trade.

The CSRD amends other pieces of legislation, specifically the Accounting Directive (Directive 2013/34/EU), the Transparency Directive (Directive 2004/109/EC), the Audit Directive (Directive 2006/43/EC) and the Audit Regulation (Regulation (EU) No 537/2014/), besides replacing the Non-Financial Reporting Directive (Directive 2014/95/EU). The implementation of such measures is essential to build a greener society and for the fight against climate change. The development of this directive represents an essential progress in the path towards the Sustainable Development Goals that need to be achieved within 2030. In particular, it focuses on the 13^th goal, which is to say ‘climate action’. As a matter of fact, the European market is the most important in the world when dealing with global trade and its attitude and policies have consequences all around the world. This is why the implementation and the correct application of the CSRD is particularly relevant not only for the Member States of the EU, but also outside our continent, in particular for developing countries that are strongly connected to the European market. Its application will push a more sustainable development at a global level and consequently facilitate the achievement of the 2030 goals.

The CSRD has significantly increased the number of companies required to publish ESG (environmental, social and governance ) information and has defined more comprehensive and detailed guidelines compared to preceding NFRD (Non-Financial Reporting Directive) based legislation. One of the core points of the European Commission NFRD (Art. 19a. 1) was that public entities with more than 500 employees shall include non-financial information in their annual reports, this set the basis for further development carried out by the CSRD. Then the CSRD goes beyond, stating the five most crucial policies for tackling climate change, in detail: the development of clean energy infrastructure, the building of efficiency retrofits, the education and training for workers, natural capital investments and clean R&D (Research and Development). As we can observe, there is no mention to corporate ESG reporting which is particularly problematic, as no guidelines are provided to companies. Consequently, the work for the firms involved is not as easy as it should have been, and reaching the Green Deal goals within 2050 is essential, but at the same time challenging.

Specifically, the European Green Deal (EGD) is based on sustainable principles and is a series of measures that allow the reduction of carbon and air pollutants in the atmosphere while balancing economic development, safety and European citizens’ quality of life. One of the crucial points is the implementation of the European climate law, which targets achieving climate neutrality by 2050. In this context, corporations play a fundamental role since a significant portion of the emissions stems from their activities.

What does the CSRD imply for corporations and the environment and how did we reach it?

The CSRD represents a significant improvement regarding the drafting of reports in companies and organizations, as it provides several requirements that companies need to meet, in order to achieve the European Green Deal and the Union’s climate-neutrality goal for 2050. For this reason, the setting of reporting standards is essential, with the purpose of empowering the European Commission to adopt them. In addition, in the directive relevance is given to the ‘double materiality principle’: companies are required to provide information both on how sustainability issues affect their work and development (the ‘outside-in’ perspective) and on their impact on people and the environment (the ‘inside-out’ perspective). The goal is to standardize the sustainable reports of the companies located in the countries involved, despite the differences they present among them. According to CSRD’s provisions, a company needs to develop a dedicated section of its management providing the information necessary to understand its impact on sustainability matters.

In people’s perception these aspects have acquired significant importance since COVID-19 pandemic has brought the climate change agenda forward, as we all now have to understand if its impact will be the same as the pandemic or even worse. For this reason, it is essential to increase the development of sustainable initiatives, such as developing clean energy infrastructure, building efficiency retrofits, educating and training workers, investing in natural capital and promoting clean R&D. It is also important that the EU itself supports the economy and supports the path towards the Green Deal 2050 with ad-hoc policies and laws. Several studies have been carried out focusing on different areas of Europe, aiming at understanding the main characteristics of corporate sustainability and highlighting the steps forward that need to be taken. Specifically, such research has been developed aiming at understanding the impact of the CSRD on several areas and sectors and in which ways it can benefit the sustainable development of corporations.

In particular, two main studies can be considered relevant in this sense, we are going to compare the effect of the above-mentioned policies on some European countries with particularly dissimilar backgrounds as regards this field: Sweden and Czech Republic.

The Swedish case: pioneers of corporate sustainability

It is a well-known fact that Sweden has always been one of the global leaders in corporate sustainability. Since the past century, this country has been one of the pioneers as regards testing different innovative reporting practices. An interesting research carried out by Professors Susanne Arvidsson and John Dumay has shown the changes that are affecting Swedish corporations from a sustainable point of view. First of all, some of the most topical environmental themes in which Swedish companies are more active include reducing CO2 and other emissions, recycling and disposing of other waste sustainably, minimizing the consumption of water, energy and other resources, using renewable energy, fostering biodiversity and implementing ISO14001. A decade ago, Swedish companies were ranked fourth in the world for integrating ESG information into corporate reports. However, today the EU Directive reports made available by the Alliance for Corporate Transparency have shown that things have changed and Swedish companies are no longer in the lead. In this case it does not seem that the EU Directive has improved their performance. In addition, today’s regulatory climate and increased ESG interest among Swedish investors have affected Swedish ESG reporting and these issues have become relevant in corporate reporting and performance.

Because of this change of situation, it is essential to understand what Swedish policymakers can do to improve corporate transparency and rebuild trust among investors and stakeholders. In particular, at the moment they are encouraging mapping and reporting climate-related risks, in order to implement the climate transition of the economy and to reduce the risk of a future financial crisis due to climate change. Both the EU Green Deal and financial market actors point out the need for enhanced ESG information quality when assessing corporate ESG performance and to redirect financial flows towards investments to mitigate the climate crises. However, because of their association with the EU, Swedish policymakers must first implement any policy changes at the EU level before considering Swedish measures. If they continue to transpose the European reporting directives into law, they will mainly adapt Sweden’s ESG reporting development to the wishes of the European Commission. Nevertheless, the provisions of the European regulation do not prevent Swedish policymakers from introducing proactive policies for improving ESG performance and especially practices aimed at tackling climate change. For example, the NFRD has been transposed into national law in European countries. As we have seen, it requires all large firms, with 500 employees or more, to map and report on climate-related risks. In Sweden, the limit was lowered to 250 employees. In addition, Sweden is currently working towards a green economy by 2045, 5 years ahead of the EU’s Green Deal goal. The country is implementing several environmental policies, such as expanding renewable energy resources, turning wood into textiles, promoting sustainable development, creating climate-smart cities and changing consumer behavior to help build a circular economy.

All in all, the results of Arvidsson and Dumay’s work show that larger firms are keener on reporting on climate-related risks than smaller companies. However, we have to say that external reporting is often general and lacks details. Without improved (and detailed) guidelines from policy-makers on how to integrate these issues into the decision-making processes of firms, it is unlikely that the EU’s new policies, such as the CSRD, will achieve their aim to strongly impact on firms’ behavior and financial investment decisions. It is also essential to consider that the Swedish case is quite controversial (as it is a country that already had a good starting point) and probably national policies may be the solution, in order to be perfectly suited and adapted to the Swedish context.

The Czech case: how government can contribute in corporate sustainability

The second relevant European case to take into account regards the Czech Republic and more extensively a lot of Eastern European countries. As a matter of fact, several nations located in this geographical area still need to improve for what concerns corporate sustainability and the development of sustainable policies and laws. In contrast to Sweden, where high-quality and sustainable reporting is widespread, the Czech Republic begins from a dissimilar standpoint, where such reporting is still rare.

As stated in Balogh, Srivastava and Tyll’s work, in the past years Central and Eastern Europe have made significant progress in sustainability. Nevertheless, this is not sufficient to keep up with the demands. In addition, in the CEE region companies are strongly linked with the government and consequently have a more difficult self-development (it will be more complicated for them to develop their own strategies and plans, because of the strong connection to the government and the less freedom they enjoy regarding decision-making). This highlights the importance of an international and larger board structure that enhances the evolution of ESG disclosure and its consequently implementation. This is because foreign board members are usually more aware of environmental issues and improving disclosure quality among others. They also bring to the firm foreign practices, being aware of international standards, and by doing this are able to improve the existing situation. This leadership may lead to the attraction of investments both at a local and at an international level, however, Czech Republic’s firms are still quite behind in entering into the international market. This happens because many firms tend to focus more on what is considered important for the national market, not considering other matters, such as environmental disclosures, which are more relevant for the international market. This is an important point, as it shows that in this country considerable efforts still need to be made in order to increase corporate awareness regarding this topic. Another evident lack in Czech Republic corporations is the presence of female directors. This represents a problem regarding both gender equality and environmental awareness, as in general, women are more sensitive towards ethical and environmental issues. Another key point is that ESG disclosures can also be used as a sustainable competitive advantage to boost the sales and profit of these firms. It has been demonstrated that the propensity to incorporate CSR concepts is strongly influenced by the size of the firm: in 2014 Czech Republic implemented the EU Directive on non-financial reporting measures (2014/95/EU) and in 2017, it was made mandatory for companies which had more than 500 employees to report non-financial measures. Consequently, SMEs (Small and Medium Enterprises) in the CEE region remain excluded from these provisions and usually they do not have a plain understanding and are not able to use this type of communication in the most proper way.

Despite these difficulties, when dealing with sustainable corporations in the Czech Republic we have to mention that the national government made a step forward with regards to the form presentation of CSR reports by the firms. As a matter of fact, Czech companies have to file their reports with the Commercial Register to be e-published and so made digitally and freely available to the public. By the operation of EU law, these data are further sent to the EU central system BRIS on the e-Justice Portal. However, neither EU law nor Czech law provides specific mandatory criteria about the organization of the information. So, it is up to these companies regarding how much and to what extent they will provide CSR information.

All things considered, the CSRD has improved the situation in the Czech Republic and especially during the last few years several steps forward have already been taken, nevertheless, the sustainable process is still quite behind compared to other European Member States and it is necessary to increase the pace and efforts to achieve the international goals set for 2050.

Possible improvements

Today, sustainability plays a primary plan role both in climate change and in the market. It represents one of the main investors’ concerns, customers tend to choose sustainable products and employees prefer to work for companies involved in environmentally friendly activities. In the EU, member states have started a sustainable and inclusive growth, they have aligned with the EU law provisions and respect CSR ethics, both informing and being informed about it. In this sense, the inclusion of CSR information in freely available digital annual reports may represent a great opportunity offered by our digital era for all stakeholders (and not only to them). Despite the positive initiatives and intentions, significant progress is still required to achieve the EGD 2050 goals. Among the steps that need to be taken are the need to reduce emissions produced by companies and the necessity to adopt more environmentally sustainable policies (e.g., the introduction of cost-saving practices or a more conscious use of resources). The CSRD represents a relevant step in this direction, but it’s not enough. The Swedish and the Czech cases have shown that the gaps to be filled are still a lot and more practical measures and further policies need to be implemented both at a European and at a national level. This is essential in order to provide more concrete support to the companies involved and to have a positive impact on developing countries, possibly involving them in these sustainable changes too.

Federica Sasdelli is a M.Sc. student, University Modena and Reggio Emilia, DDRN University Intern

Toloue Miandar: Responsibility Makes The Difference In The Path Towards The SDGs

Federica Sasdelli — Tue, 06 Jun 2023 11:56:38 +0000

Sustainability is one of the most topical themes both for companies and individuals, as we are all involved in it. No matter what, the correct application of sustainability principles and policies may not be as easy as it seems for companies, especially due to the lack of guidelines provided. In this sense, it is essential to rely on experts that have clear the situation and the measures to be implemented from a wider point of view. For this reason, we have interviewed Professor Toloue Miandar, she is Assistant Professor at the Department of Management of University of Bologna and faculty member at BBS Centre for Sustainability and Climate Change, where she is teaching Sustainability-Oriented Innovation, Business Ethics and Sustainability. She also has Postdoctoral Research at the Department of Economics and Management of University of Padova and at the Politecnico di Milano School of Management. In addition, she produced several works, such as “Corporate Social Responsibility in Supply Chain Management: Impact on Value Creation and Sustainability” and “What Do Unions and Employers Negotiate Under the Umbrella of Corporate Social Responsibility? Comparative Evidence from the Italian Metal and Chemical Industries”, plus articles on the Journal of Management and Governance, like the latest one recently published “SDGs in corporate responsibility reporting: a longitudinal investigation of institutional determinants and financial performance”. Her intervention has helped us understand at which point we are in the development and application of the SDGs and how the measures we are implementing impact the Global South, which as we know is strongly connected to our market and to the decisions we take in the sustainability field.

How did you get close to corporate sustainability and the entire concept of sustainability itself? What was and is your goal?

“For me it started back in the time I did my Master degree, I was in Cyprus, one of the countries of the European Union, I did my MBA there. There, one of the courses was “Supply chain management” and in this “Supply Chain Management” course there was one of the topics which was “Corporate Social Responsibility”, in that time it was not really cored on sustainability, it was more on the concept of corporate responsibility or corporate social responsibility. It was like the highlight of what I have learned during my MBA program, so I decided for my Master thesis to be on Corporate Social Responsibility (CSR) in Supply Chain Management. So, that’s how I got interested in the corporate sustainability topic itself and I wrote my thesis on that and then, when I did my PhD at the University of Milan (Università degli studi di Milano), my proposal for my PhD was based on Corporate Social Responsibility”.

In your career, have you had the opportunity to deal with sustainability in Denmark or in other countries? How do you find the situation there?

“Not really. Unfortunately, I didn’t have the opportunity to have anything in Denmark, but I did something at an international level. My research project for the PhD was based on the sustainability department of Enel and the idea was to see what the interplay or the role CSR managers is have with functional managers. The sustainability department exists, but what about the function of managers in different sections and parts of the company? Do they really know what they do on a daily basis to reach sustainability? Enel is one of the world’s leading energy operators. The company has its headquarter in Italy, but it has branches in other parts of the world as well, like in South America, Liberia, and in more than 30 countries across four continents. It’s huge and it’s one of the leaders in sustainability in the energy industry. Then, I did the postdoctoral research at Politecnico di Milano, I worked with some companies and there’s a book chapter on specifically two industries: fashion industry and food industry. There were some companies, and we did some pilot interviews and worked with them. Specifically in the food industry, we did a case study with the company Lavazza, so in the coffee industry. It’s really challenging in terms of traceability and transparency to see what happens in those developing countries that for example produce coffee. It’s really challenging. That was on the coffee industry and commodity side. In the fashion industry, it was with Hugo Boss. We also did pilot interviews with the Italian branch of Vivienne Westwood and another company I like very much and I think it’s at a very good level in terms of addressing sustainability, it’s Save the duck. It’s one of the big quarts’ panels, I know the sustainability manager and they do really good stuff there in terms of both social and environmental issues”.

Can you make a comparison between international companies as regards corporate sustainability? What measures could be taken in order to reduce the impact of the emissions? How can countries learn from each other?

“What I can share with you is a study I did with my colleagues Ambra Galeazzo and Michela Carraro of the University of Padua that has just been published. What we did, in terms of addressing SDGs, it’s a longitude analysis, it’s the content analysis of the sustainability reports of the 100 most sustainable companies in the world, according to the index ‘Corporate Knights’ (it is a sustainable economy magazine that each year publishes the list of the first 100 most sustainable companies in the world). We took those companies into consideration and checked their sustainability reports and what materials they had published online from 2017 to 2020, for three years. We wanted to see how their strategy and way to address SDGs have changed during this period of time. It’s very important where the headquarters of the companies are. Most of these companies have their headquarters in North America or Europe. Also, for example the companies that have their headquarters in Scandinavian countries are at a high level in terms of addressing SDGs. In developing countries the headquarter is not there, and it was interesting to see the change in the time in terms of addressing SDGs: do they have a specific SDG that they address or is it a more comprehensive way? This is one of the most topical themes in the research world. The title of our article is “SDGs in corporate responsibility reporting, a longitudinal investigation of institutional determinants and financial performance”, and is about investigating institutional determinants of financial performance, because we wanted to see if by addressing SDGs you also had financial performance. It’s a mix methodology qualitative and quantitative”.

You have collaborated with Professor Thomas Erik Johnsen of CBS, in the work “The Role of Purchasing in the Diffusion of Sustainability in Supply Networks”, how did you get to know each other? How has your experience with the Danish approach been?

“When I was a postdoctoral researcher at Politecnico di Milano, I finished my PhD and then there was a position that I always got at Politecnico di Milano and Professor Johnsen was a professor there. He was a Danish Professor in Italy at that time, but then after one year he was there he left. He went back to Audencia School. I had a very good experience working with professor Johnsen. In general, in the research world and when going to conferences, I really like people I have seen from Denmark and the approach they have. We are still working together and have ongoing research which is about the role of purchasing and supply management in the diffusion of sustainability in supply networks.”.

Have you read the new Corporate Sustainability Report Directive of the EU? Do you think that this directive and the other measures taken can improve the situation and will help us to achieve the Sustainable Development Goals within 2030? Should further measures be taken?

“Now we have around 7 years and it’s really a short time to achieve SDGs, but I try to be optimistic. I think there is much more to be done, especially in terms of developing countries. The main challenge is there and in what needs to be done there. A kind of priority to SDGs is to end poverty and hunger, they are the main SDGs, because since there is poverty, what else can be addressed? This is really the main challenge. Is it enough what has been done so far? No, I don’t think so, but consider the Millennium Development Goals, before SDGs, before 2015. You looked at those and yes, they have been achieved somehow, for example talking about HIV, and improvements have been achieved during those 15 years. I’m sure or I try to be positive that also for 2030 there will be good measures in place, but still much more needs to be done”.

In general, do you have any suggestions for companies and individuals to improve under a sustainable point of view?

“I think that this is not just about companies, but also about us as individuals, every individual. I think about this word and the understanding of responsibility. Responsibility is such a big word; each and everyone of us – individuals, but also companies – needs to take responsibility into account at 100%, otherwise nothing is going to change. Also, this overconsumption attitude that we have is part of the problem. A company really based on sustainability is truly integrated into the values and beliefs they have in place, it is not just about the profit they make, it’s about taking into consideration the environmental and social issues, but not just in words, not just greenwashing of course, it’s about really doing something concrete. This is another thing, I think that one of the problems may be that companies spend so much time, energy and resources just on the communication side, on sustainability reports and what is the right word or expression to use, but what have you done in terms of operationalization? What have you done in practice? It is not just about the communication, the marketing. That is the problem: they know it’s important, but it’s just to say something about that”.

How do you think these steps forward in corporate sustainability in Europe will impact the economic situation of developing countries? What are the consequences for the Global South: will the situation improve, be worse or not change?

“This is the main challenge: think about the suppliers. Let me talk about supply chains or value chains. In the end, all these products have been made and what are the working conditions of those people producing any kind of material or even services that we get from developing countries? These fashion companies like Shein: when you buy a product at that price, what is the wage of those people who have produced that kind of product? It’s an over consumption and irresponsible attitude, we call it the ‘one-click approach’. Another way that we can think about improvement of the current situation may be to use digital technology in a way that is in line with sustainability. Consider for example AI and all these new technologies and digital transformations they are talking about, you just think about something and by just thinking about that you receive a hundred advertisements about the product you were thinking to buy and eventually with just one click on Amazon you can buy something, but do you really need that? Probably not. So, these are the ways digital technology is being used, but not in line with sustainability. I think there is a lot to talk about here if you want to think about how to improve the situation, how to really change this consumption attitude we had and to go more towards a sufficiency economy. Sufficiency economy I think is the way: do I need a new phone every 6 months? This is the way we need to think about as consumers and also where do the raw materials come from? Where are the landfills? And what about the damage that is going to be done to those local communities in developing countries? So, again it’s about the responsibility of companies and individuals, everyone”.

Talking about the impact of corporate sustainability on the Global South/developing countries, how do you see the situation? The EU should implement measures also at an extra-European level to push companies all around the world to do something?

“It’s really a value chain. I always think that whatever we do is historical in a sense that it’s even related to these big, huge issues around immigration, so when the condition in developing countries is not good in any sense, as a consequence people would want to immigrate, and then there are all these challenges you see in Southern Europe countries. I know that maybe this is a very idealistic way of thinking, but then that’s why we say ‘it’s like a circle’ (thinking about circular economy also). There’s a poem saying that human beings are different parts of the body, so if a part is in pain, it causes pain also to the rest of the body. I think that if we could think about it in this way and have this approach of course the world would be a better place. It’s not like something to say ‘we are Europe and what is happening in developing countries does not affect us’, it does at the end of the day in different ways”.

Have you had the possibility to investigate and have project research connected to Global South countries? If yes, could you provide an overview of it?

“In the project with Lavazza I did nothing directly with suppliers in South America, but coffee purchasers were telling us how the situation was. Let’s make an example: there are families that produce these sacks of coffee, imagine how difficult it can be to trace and see how every family is producing this coffee. One of the challenges there is that they are traders, they are like the middlemen between these families that produce coffee and coffee buyers. Imagine how it is important to work for example in initiatives like fair trade (you get your product certified by fair trade and then you know that these coffee producers receive the premium price, so that they can decide how to use that extra in their local communities for example to build a school or to do something that helps). Another thing is that working with NGOs is very important in these cases, for instance they had initiatives working with Save the Children, because they are the ones who know what is happening in those local communities. For example, when it’s the time for harvest children go to work, because they are like bread winners of their families. How is it possible that a company like Lavazza can have a positive role through an NGO to help and find solutions for these children so that they don’t have to go to work?”

Through her work Professor Toloue Miandar has provided a remarkable overview of the path towards the achievement of the SDGs. Both companies and individuals need to take charge of the situation and do something: the first by concretely implementing the policies and laws issued by the institutions and the second in their everyday life. What both have in common is the responsibility towards this matter, the environment and each other. Only by taking full responsibility will we be able to really change things and comply with SDGs within 2030.

Federica Sasdelli is a M.Sc. student, University Modena and Reggio Emilia, DDRN University Intern

Toloue Miandar is Assistant Professor at the Department of Management of University of Bologna and faculty member at BBS Centre for Sustainability and Climate Change, where she is teaching Sustainability-Oriented Innovation, Business Ethics and Sustainability. She also has Postdoctoral Research at the Department of Economics and Management of University of Padova and at the Politecnico di Milano School of Management.