Global production network (GPN) maps are not static, and both incremental and major changes can and do occur. This study examines one potentially game-changing scenario, that is, the effect of an external shock. The most damaging of these are severe shocks brought about by economic or terrorist events. Three types of shocks relevant in the case studies of Bali and Sulawesi presented here were the devastating Bali bombs, which fundamentally changed the GPN for low-end mass tourism of Australian origin; the financial crises of 1998 and 2008, which sucked the lifeblood out of the market; and ethnic tensions in Sulawesi, which scared away virtually all tourism from Sulawesi. This paper attempts to show that there can be significant differences in these maps, ‘pre-’ and ‘post-shock’. The paper also discusses the nature of coping by workers in tourism as employment and incomes fell.
Nanda, G.; Hargreaves, K. Restructuring of post-crisis GPNs: tourism in Indonesia. (2013) 25 pp. ISBN 978-1-909336-82-7 [Capturing the Gains Working Paper 2013/37]
Restructuring of post-crisis GPNs: tourism in Indonesia