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

Abstract

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