More than an inter-scalar mediator: global production networks, the state and Chile’s National Mining Company (ENAMI)

Abstract

ABSTRACT Recent contributions to the global production networks (GPN) literature delve into public governance as mediation between global networks and regional assets. They deal with the state as a buyer, producer and regulator. Further developing this line of research, the present article goes beyond inter-scalar mediation, explaining how Chile’s National Mining Company (ENAMI, by its Spanish acronym) directly ties domestic production to international markets. The authors argue that in such cases, global-to-local connections are beyond what the GPN literature explains through corporate strategies to reduce costs, become more flexible and increase the speed of operation. A corresponding adjustment of the GPN approach helps to better understand the impact of public governance. In light of severe financial constraints faced by ENAMI, the article also discusses two distinct visions for the organisation. This discussion has general implications regarding state interference with the economy and production networks.