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Nations 1980 University, @ TheUnited Printed Japan in tsBN92-808-0150-3 tssN0379-5764

HSD GPID-36/UNUP-150 R

D OF T H EC U R R E N T E V E L O P M E N T T H E W O R L DE C O N O M Y

FolkerFrbel Max-Planck-lnstitut of Republic Germany Federal Starnberg,

""*j,v
.v/ '^'

?rn-#.r

version a paperby Folker Frdbel,JUrgen of This paperby Folker Frbelis a revised Heinrichs and Otto K r e y e w h i c h w a s f i r s t p r e s e n t e d a t t h e G P l M le le t i n g , G e n e v a , 2 - 8 O c t o b e r 1 9t7 8 .n b e D l l ca and ExploitationProcesses considered a contributionto the Expansion as of sub-project the GPID Project. Geneva, March1980 JohanGaltung

This paperis beingcirculated a pre-publication in form to elicit comments from readers generate and dialogue the subject this stage the research. on at of

Abstract

In

the

two decades following economy experienced the

the

Second Vforld Var, the boom in of the decelerated its

capitalist This then the

world

greatest close

history. growth,

boom came to world

an end towards

the

196Os. Since

economy has been in

a phase of

intensified

structural

change and heightened

political

instablity.

This titis

paper beglns

by adducing

some of to identify

the

indicators the

which

illustrate

deveJ-opment. We attempt which of characterised the potential j-ndication

immanent developmental and economic model of which to or are now underthe sarne time,

tendencies accumulation mining there the is

the political boom decades - tendencies for of further a transition

model's

expansl-on. At model of

no clear of

a political accumulation.

installation

any comparabl-e alternative general

The anarlysis is - of accumulation: of these trends will

focussed the

upon the

trends

and tendencj-es

concretisation,

and tendencies further

modification o-r' transcendence 'localr particular through circum-

stances

require

research.

a I

n r o

e number of inning

indicators the the 'l two

reveal decades

a sha leadin subs

contrast up to uent the ten

in

capital-ist the and stow

devel-opment 1960s that the

between of

end of years,

97Os, and the

capitalist

world

economy has once agai-n pas;sed through

in its development. Amongst the principal indicators since thj-s turning-point are: Drastj-c falr in rates of overall economic arowth in the market economj-es as a whole, and especially in the industrial countries declining or comparatively row rates of capacity utilisation of industrial plant in the industrial countries drop or stagnation in investment plant in industrialin the j-ndustrial ( linvestment countries gap') rising or comparatively high shares of repracement investment and investment for rationarisation coupled with fal-ling or comparati-vely smal shares of investment for extending capacity in the industri-al countries changes 1n the structure of the internationat division of labour: in manufacturing industry shifts of production not only from one industrial (usA - I^/estern Europe) , . within country to another i-ndustrial (traditional - less countries industrialcenties developed regions), as 1n the preceding phase, but to an increasing extent from industrlal countries to developj_ng countries a.nd planned economies. rri agriculture, centrally the adoption of tnon-traditional-' world market oriented pro<luction in tfre developing (e.g. fruit, countries vegetables, frowers, soya beans, meat). rn the service sector, growing integration of Lhe developing countries, for example, through the tourist trade rapid spread of production facirities and production sites of a nehr type in many developing countries and central ly planned economies. world market factori-es for world market oriented (semi-)manufacLure in free production zones, export enclaves and other sites, with a structure of production wnih is competitive on the world market (not merely the local protected markt), j-s very fragme;rted, highly susceptible to trad.e fluctuations and basically parasitic on the local economy and society 'structuralcrisest in industrial branches; the j_nternational competitiveness of manufacture at traditional sites is threatened by lower-cost manufacture at new sites (increasingry rocated in the developing countries and centrally planned ecnmies) . Exarnples can be found in synthetic fibres, textires and garments, eather and footwear, steel-making, ship-building, watchmaking, optical industry, and sections of the mechani.cal and electricl engineering industries

a turning-point

growing international synchroni sation of business cycles - thc 1974/15 recession was tre fj-rst general recession since the end of the Second l{orld War - impairing thc possibility of effectivo policies national anti-cyclical based on the inter:naiiona.lly unsynchronised nature of nationa1 business cycles: the as-yet attempts to coordinate Iess successful economic policies on a world scale, taking into account changed world economic circr.rmstances ('wor]d economic summits'), have not- been able to revive the shaken neo-Keynesian optimism in the possibillty of economj-c policies to prevent capitalist economic crises increase in average rates of inflation of the erosion

breakdown of the Bretton Woods Agreement, symbol of the worl-d economic hegemony of the USA

radical redistribution of world incomes followi-ng the so-callecl oil-crisis, discernible, for example, in thc changed structure of world trade and lncreased balance of payments problems for many developing countries increasing number of officially tolerated or encouraged cartels which have arisen through the economic crisis public subsidy of 'ailing' branches or firms, together with protectionist tendencies in the industriali-sed countries armed at slowing doln the pace and minimiging the social effects of 'necessary structural adjustmentsl rising in the or: stagnating unemployment at industria countries a rel-atively high Ieve1

growing disparity between the skill-structure of those seeklng work and vacancies, wj-th a consequent growth in the share of r structural' or r frictional-' unemployment j-nstead of improving and extending the coverage of the social in the industrial services countries existing services are beinq rconsolidated': i.e. their coveraqe is restricted and overall provisi-ons reduced increase in the intensity of over the maintenance of real industrial countries in many developing countries, and extension of the capitalist of labour-power conflict incomes, between employers and wor:kers jobs and conditions in ttre

the reorganisation, intensification exploitation and super-exploitation

strengthening of the state apparatuses for legitimation, manipulation preventively and repression or in step with the revival either and growth of ethnic, anti-capltalj-st, national, anti-imperial-ist, feminist and ecol-oqical movements. This list

of of

indicators

could

be further in the

extended: of of

all the

confirm capitalist

the

existence world

a turning-point the end of

development

economy at

the

196Os/beginning

the 197os.I wtat

rs

One indicator often referred to i s t h a t t h e a v e r a g e r a t e o f p r o f i t has fallen ln a number of large industrial countries since the beginning of the 197os. (cont. overleaf)

important the fact partlcuJ-ar, existence point the is is

here that

is alf

not the

the

meanng

of

any individual

indi-cator, point.

but fn

indicators

agree on this aggregate this

central variables

the of

most general

world

show the important

such a turning-point: in of detail the proof ani

particularly to this the

expounded

-i-n an Appendix validity of

paper. other

Since indicators of the

empirical not in

many of

doubt,

further, given

because more detailed elsewherez relocation free proof (structural of

studies

certain tcxtile

indicators and garment

are

change in of

industries, industry, offer

production

Federal

German manufacturing factories) we do not

production

zones and worl-d market

additional

here.

2 When we turn poj-nt of the of in guestion

to

the

of

how to

cha.racterise at a higher

this level

turningthan nature of that of

general

economic te'-rns, i.e. the varied in

individual evi-dence authors, or

indicators, cited the

and comprehensive to the views more than structura-lsectj-ons of the

shows that

contrast

a number

turning-point

indicates

such relatively transformatj-on of the el-ectrical

marginal of

contingent branches industry), of

phenomena as the (garment or the industry,

individual

engineering of or the the

catching-up country price

international-isation Germany)..

industry

an indivj-dual increases

(such as Federal of oil-.

ef f ec+:s of

i-n the

In

fact,

the the

indicators

listed

above refer biggest

to n o t h - n g
the

less

than of

the

end of

post-war

boom (the

boom i n

history

capitalism)

Note 1 (cont.) However, we do not give this aspect any particular consideratlon here because of t-he notorious difficulties encountered in trying to obtain a reliable measure of these rates, and the national dlfferences in the timing of changes in rates and levels of profit. Moreover, as will be shown later, the key factor in determining the international reorganisation of capital ls not so much the absolute level of profit and its changes over time, but the divergence between the profits obtainable (Of course, in the industrialised countries and those in the developing countries. it shoul-d also be noted that a fall in the average rate cf profit is nct lncompatible with a constant or even increaslng rate of profit for the majority of Large
LvrlrPotllE5.,/

See Folker Frbel., Jrgen Heinrichs, Otto Kreye, Die neue intern-ationate Ar!.eitsReinbek bel Hamburg 1917; English translation: teilung, The New Internationa. Division of Labour, Canibridqe and Paris 1980.

= n r r + r - r a ^ d i h h i n q growth features for with of the the

of

a phase of

ncticeablv

reduced

worid

economic

simultaneous cgpital-ist

-gf...a nymber of strustrllal' wo.rid econom)L which. had remained stabl.e

t.ransf grq.a!.ioj

manv vears. most

One of in the

the

significant of the to

of

these

transformations division of

is labour. those

the

change exampie, boom,

structure

international

For of

in marked contrast it has been recently of production are the in

previous possible

decades, to observe the th.

especially a rapid developing last ten

the the

advance in countries years

manufactured ori the use of

goods in

which

conpetitive inc::easinq the

worl-d market.3 sections in of situ the

have seen fabour-force capitalist in the

immense poterrtial

developing in production or

countries

production limited export

manufacturing of

industry

for world market - and no longer

oriented merely

agricultural for period modest direct in

occasj-onally

ancl mineral raw materials for rin,port-substituting' manufacturing employment irr loca1 capitalist in capitalist was production a small

which hitherto productj-on.= concentrated industrlal for both (labour welfare,

characterised A long in

which

a few traditional with prorluction investment thus being

centres

number of social of conditions labour social capitalist

countries, the material

a growing

homogeneit)r of reproduction on the policy

and the law,

legislation, etc.) is

family,

replaced

by a movement in

which

Of course this process does not mean that capital the possible no longer exploits benefits of production by importin countrj-es whose local market is protected controls, r-mport-levies, strictly impositlon of 'local contentr prov.isions. controlled high transport costs and other factors. what is new ls that at present more ard more (production mostly for the Iocal market taklng advantage of, and national actories are also at the of protection) often only viable because of, the cost-advantages (production for the world market, jncluding the sarne time world market fact-ories A typical Iocal market., withcut protection). exampie: Volkswagen produces j-n Mexico. local domestic market - making use of A part of its output is sold on the protected ('national factoryr). Hovrever, productlon is not the cost advantages of protection another,oart of the firmrs output only based on the cost advantages of protection: proof of the fact that. VWrs production 1s exported (VWBeetles to Europe, etc.), of protectlon. in Mexico can compete on the world market - without the benefits I.e. world market factory, industry. instead of the classic import-substitution Relocation of production counlrle: from industrial countries to developing through and within companies from the industrial countrl-es is the most wellknown but by no means the only form which this process takes.

a -

nrndrrr-J. irrn

i q

rri nrr

docenj_ ral

i ced

to

what

were

npri

nhoral

raci6plg

beyond the process is

border:s of

the

traditlonal

industrial heterogeneity

countries. in the

This social labourdiversif i-

accompanied by a growing

production of material and the repr:oduction of conditions qrr-'r+i c international decentralisation and social
e r g f

cation

of

material

production

and r:cproi_uction.

We stress capitalist even the pattern in in tion parts

this

particular

aspect

of

the

current

development should

of

the to

world most of

economy, firstly, observer,

because it

be obvious such a

superficial

and secondly, and social growth

because

geographical decelerated of

decentralisation capitalist of

diversification parallels installa-in

phases of the of of history

has some notable we refer to the

capitalism. type to

In particular,

a specific

rural-industrial Industrial

commodity production Revolut-.ion (almed at demotion


fhp

Europe prior
turnrkshon

the

interfrorn j-ts

regional
nnqii-inn

and even world


nf of

markets) , and the


fhe worldrfhrnrrcrh

of

England

i n d r r q fu r! ri q:f l - n e nv j F a l . i s t q t

development quarter of of

of the

some Western nineteenth capitatist


q+-r+-i-^-nn-:h+

European countries Naturally,

and the

USA in

the

last

century.
h,.tst

any explanatory selects


to

modef

present-day
as ifq

cievelopment which
al-so be

thi s particul-ar
account for and

asnr:t

able

explain

the

other

characteristj-c

features

of

contemporary

development.

The majority world

of

current

approaches not

to

the

present

development This

of

the

capital-ist

economy are

particularly

convincing.

applies

especially to superf j-cialIy For

singl_e-f-actoj_ observabl-e

-expla4gti.ons,_ chanq-e.s.

d e v e l g p e _ d _ i . n r e s p _ o L s _ et o

example:

references to

to

the

breakdown parities;

of to

the the the

Bi:etton erosion USA; to

ldoods Agreement of the world

and the

switch

free-floating

economic dominance and political hegemony of rexcessiver increases in labour-costs in the to at the shortfall in investment, rather with the bulk ratl-onal-isation technical

alleged countries; directed of so-cal-lei some

industrial of

investment fack

basic

innovations

than expansion; to an alleged - all- these quite accurately they share the

highlight of

symptoms of

change

. However,

common feature

lacklng

drtJ

-*.-

'.-J^-^*r-f
!ultuaugtl

uqI

r r-\ ,t /v! q r lr qa n a f n v rw n s Lr

n w p vn w

gl.

Other in

attempts

seek to since

restrict the end of

the the

globally

observable of

deceleration the 197Os on the

accumulation

196Os/beginning

to the shift culties

recession years of 1974/75, and basc their 1973/74 'olI crisis' and its lmmediate aftermath and temporary in adjusting etc.). in In falJin world effective production view of

explanation

(regional-sectoral diffi-

dcmand, temporary bo changed price chronology of the

structures the actual in

and demand events rates and

structures, growth,

changes revealed of

our

indicators, at

particular are clearly itself

changes in

Aithough of

such attempts the 'oif,/energy capitalist

explanation in growth

unsatisfactory. of two decades undoubtedly accumulait in the ,

crisis'-

a result by cheap oil which

unprecedented

fuelled in

magnifj-ed tion also

a number of

difficul-ties

a phase in other, to

world

had begun anyway to made a not

slovr down for (pcssibly

independent

reasons,

unwelcome contribution at

improving

valorisation other

energy and in to

economy as a whole many countries under the

the

expense of

sectors) of

may have facllitated guise of energy policy.

a redistribution

income

capital

Other studies have set themselves the aim of empirically determining rrelocation potentialr the of industrialbranches. For example, correlations invested of in are established per between the physical capital and amount competitiveness pursued by pre-

training

employee, in selected

and the

international (an approach

industrial

countries fr firms

branches

the fnstitut applied selected to

!{el-twirtschaft, are for used to

Kiel). the

Alternatively, relevance of of

survey production step

technlques (e.9. towards

weight the

a number of

motives

undertaking Although

relocation are suffer

Ifo-Institut, describing number of neglecting, ('the the

Munich).

such studies they

a first

phenomena in admitted example, processes of

question, or

from the causal

limited deterrninants

factors for

considered central a set

as possibfe

the

ro-e played of are

by the

decomposition Political as much as ls

of manufacturing factors feasible,

into

sub-operations. either cast ignored into

climate

investmentr)

or made unrecognisabl-e

by being

pseudo-objective

formulations.

4 to these the j-nadequat:, of partial analyses (which nonetheless in the world

In

contrast

do acknowledge econcmy requiring

existence explariation),

some structural

changes (e.9.

attempts_.a-L.explanatiolr of development

the.gries frar-nerygrk .of tgaditiongl of economj-c Arovrth, modernisation a more comprehensive However, theories analysis mental it of of is explanatory

.with.il the. stages theorl' theory) offer

theory,

dependency

perspective.

no l-onger a matter phases of

for

dispute

that

stages

theories in their

and

modernisation the earlier of

have been shown to capitalist of at

have failed

development-. Their development different which all or

funda-

conception

ein unambiguous path necessariJ-y follow

societies folIow,

or .nations on their

stages, soc-ety,

will

way to

becoming a modern industrial automatically excludes

and thence

to'post-industri.al

society'

any consideration

difference in the development of the so-called of the essential tdeveloping ('underdevelopment') of the as a function countries' subordinate integration of of these count-ries into the paths for metropolitan of or globaJ- process are envisaged, accumulation. only No alternative offered of labour of development the

and the

explanation division the effects

changes in

of the international structure 'modernisation' is that of of exogenous factors.

and the

initiation or

merely

contingent

Dependency theories

arose

out

of

a critique

of

stages

and modernisatio:r of

and correctly theories, both stress and demonstrate the polar unity 'development elements within and underdevelopment' as fundamental capitalism. politically In addition, however, conception primarly dependency theories that to the the unity of

signiflcant relates

also embrace the 'development and development as an fate which of of sub-

underdevelopmentr of industrial tenet

complementary

ano developing that this

coqlrtri.es,

and furthcr global

propose

absolute is

duality

constitutes

an inescapable The global

constantly

capitalism, Iabour

reproduced in the course of the 'at an ever-higher level': albeit by capitali-sm consLantly resources

development divisii.:n the

as determined of

(re-) produces which, the

ordination experience centre

dependent

underdeveloped of

countries tc

firstly, of the of

a systematic transfer tbrain draint, (migration,

benefit

unequal

exchange of

quantities

Iabour, important'

energy,

protein,

pollutior^, distortion

etc.), of

and secondly,

and more

a systematic rn fact, it

what may have been autonomous that it wiri once any country has j-t as long as it retain

development. been assigned remains

is

even suggested status capital-ist

this

peripreral into the

integrated

wor:ld system.

The concluslon

that

the both

devel-oping (within

countries the

are

doomed to of world

inescapable capitalism) show, the world countries rnodel of

and permant marginalisation cau be questioned the likel-ihood

framework tendencies

theoretically

and empirically. some present with

As we will

that

certain

foreseeable

within

capitalist into

system could

transform

developing

industrial-capitalist can no longer

socie{:ies, be merely

a corresponding out of

accumulation,

dismissed

hand.

We cannot at

claj-m to

offer

a full

expostion the present a futly negative the sceptical

of

current

theories of the

aimed capitalist

interpreting

and explaining nor our to to

development

world

economy here, of them. pri-marily

provide

a critj-que intended

basicarly

adequate basis to undertake stance --owards them is reader to acknowledge (more prccj-sely: of the accumustj-ll scale

encourage

the need. for a theory lation has to of of

a theory the

of_accumula!_ion uneven

on a world even though dispersed years of

long-term

and unegual

development

capital

on a world from

scale),

such a theory fragments.

be synthesised

a number of

vforld history struggle a world for scale.

over or

the

last the

five

hundred

is

dominated

by the on of just as

again:!_ This

impefa_tives not only

struggJ-e is of the

.capit+l about the

acc.umulation appropriation but centres

a surplus-product much on the for

which

has already size of in

been produced, the general

question

surplus-product . I^lhirst agents the

and conditions total-ising seeks of (i.e. is to forms

production of

and reproduction

tendency

capital-accumulatj-on and transform the the

and its historically of

constantly

subordinate of life

inheritecl activity there

complex

and work to creates

purposes

productive

activity same capital, by

which time or

surplus-value to extricate

and rnaximum profit), traditional along paths forms other

a+- the of

a struggle sociar

from the than those

grasp

steer

development

directed

10

capital

(such as:

efficient of
rleir:ttrer c{-rrrnal

prcduction

of

exchangie-values, control
/ .

rather of the

than wl.ro1e,

use-values;
af L L L f a
t

separation

mental- arrd manuaf labour';


anrf r^Und r a r r v u u6 ] t r l i syr l o v
L ri

inclrrdino nf tha

rvs ro

l e ro q va r r i + vrqrr r \ n l r r h aS the

rtaatz.i-^ +1-,i^ rq^rtlg Ltta:i Of

narcnaa#irra

aCCUmUlatiOn

mOtOf

capitalist

development, the

it

is

possible

to

identify of

moments within without


j_'j_: _:::_:'

historical or
t.h ,rn

development loglcal_
rr'lahal

a number of crucial - listed capitalism below

any full

historical
nf : nr

exposition:
r'lr'iq.iOn ffi@u,srr nr r , r iI I i n o n o s q nf fho nrndrrnii,a Of IabOUf aS a fttnCla-

l-ro darralAnmanlj11glllrnonli.e.

cnon.f.ir

mcntal Vaf Uc

--rrrniloi-:^,1 f ho .:n:cif

Ero=".. l;-;";i;;";;":";i.;;,;:":"'"i',t';i;;';;-i"?'*""'5t""""11'"'ii".tion of different types of labour for different consti-tuents of the global capitalist process j-n different regions. fn this process industrial-capitalist waqe-labour with its seeminqrv -"uperior n n { - n n # : r ' ^ - i n c r e a s c s i n f , - r L o u r p r o d u c t i v i t v , for political con!_qrnment,of tlc *orf c o u s u m p t i o n L . ,a y s a d o m i n a n t | o I e ( ' u n c v e n ' d e v e l o p m e n t ) f thc gapacity o! wil l.ingness of qleu_Ls_z__s!rg!E_lr_slasses to resist ^f nrnfr'l ^r ^ollaborate the dictates with them. Examples are: the resistance of non-'capitalist strata to the destruction of thelr traditional economic and socia order, or conversely, tlreir rvillingness to adapt; the tendency of the organised 'o1d' rvork-force ln the productj-on to conclude a 'social centres of capltalist pact' vrith 'social partners' , instead of waging a political their struggle against thc. bases of the capitalist systcrn; the self-organisation of the 'new' wage-labour cfasses and other 'socially marginaJ groups' to achieve a form of reproduction as independent as possible from capital, whether thjs be in the phase of the origirrs of indust-rial capitalism, or later in the case of groups suffering discrimination (ethnic minorities, youth, women etc.) +'ha ^^mn+i+-6n for valorisation between branches and competition between firnrs j,n the same branch, fouctht out eit'hi in tEe-form of workeis atrd/or in the form of increases in productivlty with results such as:-central-isation and concentration growbh of l,uge transnational of capital; concerns/ which j-n some cases monopolise whol-e branches and dominate entire countries; the only seemingly inexplicabl-e resistance by agricul-tural and industriaf family enterprises i-n some sectors of commodity production
_ v J _ v q Y r s ! ( r v r v

dpnandinrr

the rise and fal-l of various forms of the capitalist state which in .li rrrh+ r^,:\/s create and maintain the pre-conditions for accumu(both the general conditions, lation such aFgua-ranteerng privat-e property and obstructing the setf-organisation of the working class, the institutionalisation of a model of accumulation r,vhich may vary from time to time, and the correspondj-ng necessary provision of specific services for private-capitalist production, and the reproduction of labour-power). This process culminates on one hand in the liberal-bourEeois state, and on the other in forms of colonial- adminj-stration. Or, on one hand, the social-democratic welfare sLare (with high degree of commercialisation of the sphere of reproduction = high wages) , and on the other the repressive dictartorships of (non-capital-ist develop-ing countries subsidy for the reproduction of = low wages) , depending on the functions labour-power which

11

different
nani l-a' i q

territo::ies
darrol nnmnn-F

can or
fnr

must exercise
a"l n}- al nrncacq

in

a specific
nf :nnrrmrrl

phase of
e |l u .
l v l r ,

J -1 - , a

inn

and the conf licts,


adVanCed

power-relations including
COtlfLfioq
v

withj-n
hooomnnw i tt c s

local
in

or
thr-

national war,
canifa|sf

class
worlrl

conflict
qvqJ-or" of

inter-impcrialist
fnr

b e t v r e e n e c o n o l ! _ i 9 s ! 12

ic rn wh h pe ar ai*"mffiH*J*#;;qffiffi
^ . v. v m rr r lr n l J . i ng n u -r u u :
g

'

i n rr - l, r r dv i n ol r v ]

rr - o rr r p q n \ o n d i n o J v v

crlnhal

- the optimal one for the inl-crests of its also apparcntly acceptable for sections of
(HOIl-ano, the tjngl.ano, of ub1\J dr.nandcnt cnrlnlfies and resistance

division

labour

ruling class, and maybe its working cfass


thei:r nonrrl ef ions aoainst

their

subordination

to

the

exiqencj-es

of

a process

of

accumulatior-r --

beneficiaries
aq fho rrrndrrcf and con'rrnnJ-inn nf qrrch mnmonl-q qlrnri-morirrman.l

cyc]"s, fluc Ig!g-t"r^ c r i s e s ( ' u n e q u a l - ' d e v e l o p m e n t ).


To show how each of different of
tLo v

thesc of

moments are the

speciflcally

linked

-FnaoJ-

l-ror

expressj-ons of
I Ii o c F 9

struggJ-e around on a world, scale


^-'M I t L ,

accumulation which
^h We

is
'hoc

the
i nn'i qan

task
nc Jhora

a theory
c IrJw v sf al

accumul-atlon
l l I

is
Seek

now
tO

i h

rrrimnn+5r'
I u U f l L t U l r L q I y

--r q l l U

-'tt

W l l l U l

nro

in

a slightly

more consistent

form.

II

The accumrrlation-of naterial of production

capital

a varietv -occgrg lrithin -of !orms of for .!he reprodugtioj fo{IrS and the,i.!.cgIreFp_ondi.ng usually adapting given the uses these varying them as fully limits set forms as possible by the

labour-power. first

as it

fnitially, capital finds them - only ater specific requirements, of those coll-aboration

to match its resistance or

populations

concerned.

We indicate which capital

three

such typical thern.

forms

below,

together

with

the

use

has made of

12

A)

The subsj-stence

economy of

'primitjlve'

.gribes

or

clans,

lacking

uothiillq;Iil
are usuall)t

ao pu,, ttip-lrt.. .u.,a.l-inks.to markets. such srrucrures


self-sufficient units of production and re!,roduction. subsistence or are population

Any surpluses over and above what is required for 'unproductively consumedt in festj-vals or holidayr if the productivity and thus from of of the the land permj-ts of it, growth Apart idiocy denied any potential

alternative-Ly, into

translated

control

constituting rural 1ifet,

the target of a progressive 'general mediocrity' etc. are also forced to accept and modern fanatical

class. - rthe critique such rpr-mitive' the inexorable of surplus-

ruling

sel-f-sufficient verdj-ct of both production.

economies the old As far

advocates

as capital is concerned their sel-f-sufficiency renders 'civilisation' them totally useless: however, eventually the day of their or 'modernisationt arrives. They are destroyed or dispersed so that accumulatlon can proceed unhindered - or better sti1l, restructured to make a positive contribution to land, the accumulation. exaction of of Exterminatioir tribute, projects forced or or market enslavement, peaceful societies labour expropriationof into

integration (often

patterns

commodity-producing

by missionaries, forced through

traders, the

development

need to

or miqratory pay money l-.axes) - some of the

methods of B)

civil-isation

employed by capital. peasant

The fami_1y-econgmv_ (such with obligations are (households) and are reservoir for the for

as tbs to

economy) and. l.ilks units of

within tg

a r.ar-gg.!

community, Families product

p.ay tribgte self-contained produce

markgts. and

not

production

reproduction,

compel,led to basis. of

and surrender frequently larger

a surplusconstitute unit, either

on a regurar

rn addition, for of

they the

a flexible as sites or surplus variants modes of at the

labour-power

socialfresh who are A rarge or

production the

and suppty and care no longer For

additional workers to work. in

workers, temporarily number of are put to kind

as sites to

absorption or

of

requirements

able

can be distinguished. producti-on of the disposal in personally for the

example,

feudal

tribute-paying land)

means of

subsistence

(primarily families, in

dependent palzment of or state. ri-sing

peasant a tribute

subject or

revocation, or the with money, to circuit the

return ruling

labour

the of

class

The surplus-product externalby the demand in feudal are left

can enter conjunctj-on or state a piece lo::ds with

capital

vj-a trade:

can lead

powers of appropriate to a 'second serfdom'

enforcement in which

families

13

of

l-and barely Another

able variant

to

provide is

sulsistence

in

return

for

a high

labour-

rent.

non-capitalisL or production: working-ddyr the to

commodity industrial

production

through

formally survive the

independent

agricultural

family

enterprlses can often of and in not only

owning their

o\^/nmeans of a long

such enterprises high in intensity labour, who are of family

by adopting of all

labour, some members profit.

incluslon

members of remuneration

instances very - and finally, The more they or introduce example, (for

low the are

employees any concept

famil-y

abandonment of forced to

commercial

buy machinery to

and artificial production

fertilisers and productivity through of their bourgeoi-s prod.ucts from

greater to

specj-alisation

boost

pay off to

money-obligations a fall

vrhich arise in the price or merchants

agrarian

reformr

compensate for of

caused by the the migrant deprive greater or

intervention

parasitic or to

conrpetition potential

industrial-capitalist workers them of the by offerj-ng their that in the

sector,

be able , the not

to

retain

incentives)

more those

mechanisms v;hich and ihe outpLtL

surplus-product higher costs dictated

intensify will

and murtiply,

danger Arthough to

be covere< ny frigfrer were already world land) of in outside

yierds.

many cases terms

such enterprises by the (principally autonomv.

reality the loss final

subject of their

capital, the

means of surrender

production of their

signals

and formal-

c) the

rndustrj.ar-capitati.sl reproduction-.of to of the

l-abour-powe.r two forms proper, of

w a q e _ . fa b o u r _ i n m a t e r i a _ l in..Fhe,proletaria-p noted is above, the

p{o._ducti9L,

with

rn contrast rike the

ngg.l.e.a.r.._f.am_i-l_v. system of 'wage sravery', by the extensive (however, needs of form, the

slave-economy the is

characterised

separation

spheres much the

production

and reproduction as far rn its as the

wage-relation contemporary the family (bringing l{hether of

more efficient are concerned).

accumulation exercises place

most extreme labour of

merely

the

minimum of

the

reproduction .

up children, this takes

psychical is

regeneratj-on primarily

of

labour-power) by the

determined

requirements

capitalist (i.e.

accumulation, population

family falls

and secondarily policy by official on the and 'manpower'policy): the burden of such labour in of its those most extreme form, material required clothing, homes, production goods and services people,s

overvrhelmingly including

on women. Again, the of

producti-on' for the

reproduction transport, produced

labour-power

(food,

consumer durables, old

housing,

education, by the

nurseries,

hospitals, is

commodities

leisure

industry),

removed as ntuch as

14

nnqqil^'la'from

{-ho

qnharo

nf

nnn-n:nil-r'licl-

ca]f-nrarlrrnlinn

la n \ e . Y .

in

{-}ro

rami I w) /

and
q l r u

ai f hpr

di roct

lrr nr

i ndi re.etl v

l v i 4a 9 \ v

i-hc

q fL u a l L-v e l /

nr q v a r - e f l u n d c r y l

industrial-capi'talist labour nucear form. is

control.

fn

general,

however,

the division

of

between industrial-capitalist family a flexible

wage-labour restricted

and thc to

proletarian most extrerne

one and not

this

As historical atd
i r r rn

expericnce adapted
*r -.' -r
Prqycu

has shown,
!LL ^ c rr *^c'F

reproduction
fL r r e hs I v rY o f . o ln o - f L u rrrrr r t
nrnnacj+^!r.-^r,. nf

o u t . o f , t L , r _ g . . m a n _ y _ f o r m sf . p r o d u . c t i o n 9 andl:ombined b y c a p i t _ + _ 1 1 - l i e .1 a t _ t g r . ( . C ) . l - r a s . , ,
rrivJL

d y . r o: rnu' i r - fe t I urtn ln u
+.rnrrrh wl ht r z y l Y i I> e .i+ lL-I hI ii I

( Ominant d maV s so? nnt

fOle
harre

in
hagn

the

nlnl-'rl -,---+

. : 1 r - 1 - ' t m t l ; r ' |-n n m L U - fL |L o s r , rrui gr -,I lr agq n .r p : d W r du

-lte

YuqrrLrLarL

As far social

as the

val,orisation

of

capital

is

concerned dcvelopmcnt

there of

is

a high productive life and

premium rvitlrin

capitalism

on the

the

fo::ces as a means (a) of work, and, if necessary, in in


an

exploiting displacing

ilon-capltalist

modes of

them, and (b) of competition. of


u ,

making profj.ts will forces


r

and supcr-profits that one factor


nf

inter-capitalist development
confr-nlled-

It

be cl-cai: is the

the

the

productive

arrailahlitw

asilw

lr u o i n n a l - l r r Y

mnl-rila

^ v- e^uryrun ^ i - iL n vr rrr :Ql rl r rj z v r

flexible effectively capitalist necessit.y, incentives

and industrj-ous fulfilfed wage-Iabour hierarchical mean that

work-force

a condition

apparently

most

so far

t.hrough the

association nuclear

between industrialfamlty. Economj-c

and tire proleLarian authority'-str:uctures, free wage-labourers to an almost privileged

and sometimes mater:ialforced or i-nduced to especially In addition,

are

expend their where labour under certain

labour-power is in excess

unlimited unions

extent, weak. of the

supply

and trade

circumstances, a form of

can develop which class the

truncated

l-ack of of

a recognition capitaists leads to

cl-ass j_n ('reformism') cl-ass consciousness ( rthe of fundamental class antagonisms may differ interesi: (the for the bul- are in of the not perpetuation also of

sections

working

interests

and workers a systematj-c

necessarj-ly of the produces which is

opposed') at the

system:

same time, in the

such a constellation cake,

forces

an increase meant to in

surplus-product larger slices the

the

growth cl.ass) .

guarantee

working

Furthermore, of production

industrial

capltal-ism, the

concentration of machinery science

of

the

means

facilitates

introductj-on

and the

factory-system, the twestern' origln, of

systematic

application of 'scientific and so-called

and technology management' - all means

15

of

depriving

workers of

of

control

over of

the

production

process

once Lhey or instrunients of is in the and

have been Civested of labour, By contrast, a function the passive prohibitive,

ownership them into in other

the

means of production

production

and forcing

a higher

intensity

and productivity surplus-labour sustainable at a high,

labour. usually face of often

modes of

of

extra-economic of the

coercion, direct

only

resistance cost'

producers

Furthermore, with the to produce ideological labour-power unrivaLled serves labour

capital

can exploit

the

need for of

human warmth, patriarchal ('civilisation') which is,

together dominance ' the desired and as yet, also

family's

continuation

as a bulwark which children

a mechanism withj-n values psychically for cheapness of

can be raised,

and discipline

inculcated

and emotionally and efficiency. labour-power (discernible rate of

restored In in

addition,

the

family

as a reservoir

and as a buffer the large

between factorymedium-term

and open unemplolzment in the

fLuctuations also

participation

married and the

. womc:n) The link proletarian as far nuclear as the circumcan be without to

between industrial-capitatist family possesses of the realisation means for stances the

wage-labour

a number of

advantageous is concerned.

features

surplus-value of

When necessary, certain

reproduction

labour-power, needs which

and under

the

means for transformed

satisfying into

go beyond this,

extensively

commodities

and multiplied its switching

almost

extend to massively this all-ows capital limit: - without totally posslbil-ity of the impairing an increasing share of it unpaid (this house-work is of in juridically ii accumul-ation require the form of loose partners).

i-nternal

market of j-n

back again

overall

conditlons with

marked contrast

families

associations

and economically

equal

Capitalist essentially between the Droduction Drocess of

development the history

over of

the the

tast

five

hundred forms. of

years thg

has also of fqrmg of

been l-abour

changing

division-

specif ically -ind.rlstrial-caPittliFt-gnd which are available and reproduction capital. These forms of struggle__o-ver the division In accumulation.

other for of the

accumul-ation themsel-ves the basis

labour

are marked by the

particular,

16

for

the

historv

of

the the

international pr.'ocess of

important is the

moment in

of l_abo_ur, as one 4ivision accumul-ation on a world scale, develolrment each type of the

characteristic contexts from the within fact

regionalJ-y which

differentiated of

social Apart

labour-power the October direct

originates. one third of capital,

that

since

Revolution sphere of

humanity probably

has been removed from the the most obvious division countriqs of product labour

the

rul-e or of the the

international industrial of the production

of the history j - s t h e d i v e l : . g g . { i _ c gb e t w g e n countri_es. of within in the That is,

preceding

the product of

and the

devel-oping

optimal

combination

and adaptaton by capital, affected:

various limits the

forms of

and reproduction set

the

resistance of the

and collaboration precarious of these

by those with,

fact, of,

product

symbiosis various

naked despoliation the

and mperial-management forces of nature).

forms

(including

productive

The central

differences

betlveen the

industrial-

countries

and the

developing ccuntries are to be found in the model of accumulation which j-s specifi-c to each within giobal accumulation, and related to that, in the specific manner in which they recruit and reproduce labourpower.

For from of for

the

later

industrial to

countries

of

!{estern result of

Europe, attempts

the

transition agents

feudalism

capitalism feudal

was the

by the

decentralised from ground

society region

t.o overcome crises, could to be traced fal1 with

which

although tendenc:y

differing

region

to

back to periodic mutual

the

rents

and productivity

overpopulation. competition, geographically the almost of establi-

Faced with they in sought

regionally to

varyir"rg resistance, commodity

and in

expand and extend were sti-Il

product-on However,

ways which

essentially release

feudal. of

inevitable shing the The victory, possibility

consequence was the foundations or of for

elements

capable

a world-wj-de of the

prccess of capitalist English Revolution became politically a feudal

developrnent. meant that past the

consolidation, world capitalist In

development Japan, of of which

ratified with

and irreversibly Europe, set the the

secured.

shared

resolute

adoption

certain survival

key elements in the face

from capitaiism of to the capitalist emigrants

threat.

of the policy Finally, the rwhiter nature

settler

colonies

served in

absorb the the

who had been made superfluous of these colonies and virtual

by accumulation

Europe; i.e.

presupposed antopen elimination of the

frontier'indigenous

deveJ,opment 'pacifica-

tionr

population.

17

AII

tiese

countries

experienced mode of

the

comprehensive to

development

of

the

specifically and with sations it of

capitalist the the

product.ion relation i-mplied of it of

a relatively together with

:igh degree, the organi-

wage-'labour,/capital working class. This

and vras accompanied by the other led modes of to the production,

large-scale although

and progressj-ve certain or

destruction

under

circumstances revival particularJ-y

also

retention, example, the risi.ng to secure :

transformatlon capitalist political

transformed

hose modes. For in the face of

some may have proved mode, or stabiJ-ity they maj-ntain

resilient

they

may have been consciously or artisanal a stay

maintained family of

(such as peasant particular of

enterprises) if their

alternatively, attempts to

may have been granted their

execution

complemented the victim (for to the

val-orisation

patterns of iving and worklng - until capital they finally fell of industrial-capitalist the production

increasing ruraletc. ) . that

efficiency in

example,

industry

many places,

handloom weavers,

sweat-shops,

Capitalrs decline, to

realisation together with

an excessively pressure of

long

working

day made output class, ed

the

an organised

working

effective This to

value.

in order higher

J-egaI restrict.ions on the production of absolute surplusj-n turn spurred on the deve-opment of the productive forces - usually produce relative surplus-val.ue linked with a of work and increased control of labour by capital-. proetarian \ ^ / o m e nt a k i n g and highly home. relation the

intensity

ltlorkers themsel-ves nuclear family

v/ere predominantly ready for

and held of

up in the - with use by capital in the production

brought

on the dual exploited

role

unpaid

housewives/mothers

family,

wage-workers

i-n capitalist

outside

The development as the

of

the

industrial-capitalist dominant relation of of

wage-Iabour,/capitat production in the

guantitatively

industrial-

countries, together with the rsocial pactr between tsocial clrcle of needs, both those more in labour-power can only internal and other

raising

partners' necessary far-reaching

mass-consunption based on a - i.e. the extension of the the social all the reproduction of which of needs, led to

for

however of an

be satisfied market

commodity-form

creation

the fast-growing lnterests of

capable of apparently unlimi-ted expansion 'lej-sure market', as shaped and 'cultivated' by its own branch of industry).

(including in in the turn

vaiorisation

This

18

constitut.ed accounts Of course, to imply

an essential

precondition

fo:: an enduring, capitalist

and by some .industriaf not ization.

even self-perpetuatingr

pi:ocess of

such an extension o.i mass-consumption should 'wage basket' that a growing in the traditional on average contains labour-power in the more than i.s necessary for under the 'given' circumstances: countries, expenditure

be ta}:en

industrial the reprocurrent

count-ries duction of

under

circumstances expensive lengthy hand the with is in

industrial or

on an ample det, cars, one

rented education, result

hcusing

owner-occupation,

consumer durables, etc. , oh the theory costs costs

of

J-ong holidays, socj-al 'social the contract' rather extent cxpected to than of the a part to

insurance,

and hence in necessary qualificd

associated

rising fact

productivity to a large is

t hese necessary

of reproduction, for a

work-force mobile,

which

be highly

and regionally work. As far for

and subject

intense

and psychically it

stressful

as individualto avoid

workers these

are concerned, expenses in

becomes more and more difficult oppportunities both materially form contract

meeting these

money-.form as the

satisfying

needs in

non-commodity

and psychically. It might appear

then

as if

the

specific

link

between the

capitalist

mode of in

production

and other labour,

forms of in

production

and reproduction, commensurate state

particular

domestic

conjunction

with

activities

after the Second World War, have enabled a process of 'immanentt extended reproduction autonomous of capital and labour-power to of take place, in both technical is not and economic terms. That is, a type or narrow reproduction which on periodic here in its

systematical-Iy

reliant (understood

permanent

from the Third Word transfers geographical- sense) - although such transfers rGastarbeiter') may in fact continue.

(i-ncluding

migrantworkers:

The development The social defenseless expansionary capitalism. (sometimes

of

the

developing which they

countlies historically

took

a dj-fferent

course. either inbuilt

structures or

inherited

proved the

eventually of

outmatched,

when pitched

against

aggression The antithesis at a high

Lrlestern European late-feudalism/early between almost and the stagnant of productive rapid forces

level)

stimufation

development

19

in

strategically

cruci-al and rewarding areas such as'guns played lay for an important their of of if not assigned'roIe feudalism

and sails' rol-e. the (rangitrg

(gunnery

and seamanship), countries complements capitalism:

decisive

The devefoping or necessary development of from slaves products to

olren to

as desirabl-e or

the maintenance as reservoirs workers),

i.e.

cheap labour for

modern immigrant

as markets

industrial

producers were eliminated as from the metropoles - through the either by open force t ot - more civil-ised competitors of the rnarket), or very as suppl-iers of in the shorb-term for cheap raw materials, and as sites

(local-

hidden forces

non-substitutable environmentally This subordinate

damaging industries. the scale

subsumption the

of

the

developing

countries

to

changing is the

demands of

metropoles of the

and accumulation of the

on a world specifically

basic

determinant

development

capitalist snarl's local

mode of pace at

production this

which

in the Third hTorld, n particular of development proceeds - the result global'accumulation. economic, and their social

t--he both

conditions

and the in

mechanisms of

These local and cultural the

conditions resistance destruction in the of

include, of of

particular, the 'sectors' non-capitalist their traditional

members to

resistance long term thls 'sectors', based on the these where necessary production

and forms of labour; ways of life j.s aided by the economic tenacity of their workers, the another jnterest ov/ners of or at greatest has been

including means of Ievel in

intense exploitation 'self-exploitation' by the peti.t

(who as land-owners, of patriarchal other

bourgeois, have the

beneficiarics

relations, hand, the

such resistance). derived, of ruling of

On the and is these class these

gain

which

repeatedly

than destruction, both the local

still drawn, from the adaptive use, rather 'sectors' circumstances by under suitable and capital rsectors' in directed is large enough to process explaitr of accumulathe global at their

the raison tion

d'6tre

and the

conscious

efforts

conservation.

Capital in three capitalist

makes use of basic forms. production. principally

the

labour-pov/er

of

the

developing in

countries industrialcommod.ity as long as an

Firstly, Secondly, the

as direct labour

wage-labour in

non-capitalist this is

producti-on, and to

family-economy: for produced

used for

an extent to

as j-s most beneficial commodities

valor:isation, in the

alternative

using

industrial-capitalist

20

sector

as input-s

for

capitalist

production which or is in

(examples are marketed

ground-nut

production sewing for

by small-peasant firms i.e.

farms,

by agribusiness; as on contract 'labour of after workers industrialcommodity-

and embroidery or

by home-workers foreign labour

sweat-shops Finally,

exporting

retailers). of raising either in the

reprcduction', who will capitalist production later

the

and looking directly in

be used by capital, or of indirectly variable

production of elements

non-capitalist capital.

and constant

This

latter in

point

requires

expansi-on.

The wages which only of

wage-workers to during to bring sector. cover the

receive monetary of actual

developing of the

countries daily but care drained

are often

suffj-cient

costs

restoration not in

labour-power

the period. up a These

employment, or for

nevr generation

those expenses incurred 'o1d age' and invalidityf

once workers

have been thoroughly have to sectors. restoration reduced that be borne

by the

by labour in the capitalist 'backward' (traditional, so-cal-led costs required for the

informaletc.) day-to-day are

And even those of

monetary during

labour-power use of the

actual

employment to -

by capital far

by the in

non-capitalist

sectors

a degree in

exceeding

found

industrlalised the

countries

either

the

form of or

unpaid has to

services provide, or

which

wage-workerrs small surplus

extended produced

family in

provides,

from the in the

non-capitalist-

production, through

form of

having For is in

them produced capital what

the cheapening of means of subsistence j-n simple (non-.rnttalist) commodityis important to is that the reproductlon extent than of a much greater envj-ronment is sti1l

production. labour-power is in located the

subsidised

externally (although

when it is usual

a predominantly countries

non-capitalist it

industrial consequently of of

significant of

there), It is

which the

a11ows the

super-exploitation and not the high

labour-power. of

presence and the 'law and socially

such subsidies, supply

rate

unemployment

and demandr which in the developing

make low wages econom-caIly countri-es.

possibl-e

Because of specifically

these

low wages and because sector has only

up until

the

present

day

the sector and

capitalist base of the

accounted

for

a narrow

upon a broader used by capital, represented countrj-es,

non-capitalist class in (valorisation)

modes of

production,

adapted

working

waged, employment and nol--, as in (realisation)

has by and large the in industrial industrial-

a cost-factor at the same time

a demand-factor

21

capitalist enduring or

production:

as a result

one of

the

key precondj.+,ions of the capitalj-st o! at

for

an

maybe even self-perpetuating of the developing

process is

indust.rialisation appears to be so.

countries

absent,

least

9 tJle above outline contexts of the present state achieved by the differing some

Taking social

wj-thj-n which

labour-power

ori-ginates, of

we can l-ist capital

structural_ conditions empirically of in the

c_ondi_t_lons &r represent verifiable world are likely

t.he c_r.Jrren-t_valori_sation theoreticalJ-y preceding other,

. These and

on one hand the outcome of system, to the

predictabl-e

uneven development those the factors which

capitalist

and on the

combination of

induce

some movement in

international

division

labour,

as determined

by capital. potentialhundred who work

A)

On a world people

scale

an almost

ingxhausti_ble

res*eryoir of

of

labour-power

has come into

existence, the the

consisting or

several

mil-lion jn manufacturing The bulk result of thls

(compared with industry reservoir but in

75 million traditional in the

so emplol'ees

industrial

lives

developing

countries) . - the countries

of'the of

gradual,

by no means complete, modes of for of

destruction a mass of

non-capi-talist

disintegration and - and represents production when required in the traditional in the as

labour-pori/er either to

available the or supply

use by capital labour-pov/er potential already taps

a supplement industrial centrally

countries, planned

the

additional it

located through which

economj-es which Despite this or the

internatlonalexist between which

sub-contracting. developing determine process.

concrete

differences has certain the

countr.ies, how it is,

reservoir

common features valorisation

may be,

used in

capitalist

a) The hrages paid to around industrial out to 10 per

by capital cent to

j-n the

20 per

industrial-capitalist cent of those j-n the and pays

sector traditional

amount

countries. (as in above,

This

may be even lower producers industry, of

where capital labour

contracts costs etc.).

non-capitatist

commodity possibility

indirectly As stressed

mod.ern domestic the

cash crop

farmlng

such low \^tages is

bound up with

22

the

existence

of

non-capitalist for fresr


fnr

'backrvard'

sectors

which of

function

as

breeding-grounds
-^. s E u r r s , < r1r . u a s -+"-

labour-power,
{-l-ra

as producers
I

cheap food-

lrofrrnac

-..-

crn6Fhrmr:r.i a s u p e r n u m e r a r t - eos

. (working
_ : n.r_ *. f

b)
n !r v

In

the

ndustrial-capitalist
i c aJ nra # .r iu snqa r t - , 1 r ' r vL l: j I ihd ! v^ r v e^! r f(rf !OI

sector
tLh I 9 Ie

the

working

day

week
Vefy

rroarl / Juq!

II c V d CI l i nl d il l - iV I U aU q -

emnl

wop

substantially the traditional

longel

for

the

'collective

worker'than

is

the case in and

inclustrial ljmit tvorking,

countries, working night

wherc collective in the work,

agreements countries small and

la.bour legislation extensive of time shift lost

hours.

developing and very

and hol-iday holidays, alJ-ow the

amounts

through and for

sickness, training highly

maternity, wcrking

lateness

absenteeism

day to

be greatly utilisation.

extended and permit It the may well

profitabte

rates

of

capacity

be that the same applies, and perhaps even more so, in 'backward' sectors whenever they are so-called directly used by or forccd to competc with the industrial-capitalist sector.

capital

c)

In

view

of

the

immense number of (asslsted this

job-seekers by suitably rapidly

employers flcxiblc intcnsity

have enormous of J-abour, by fresh

freedom to legisration).

hire

and fire

Iabour-

rn particurar,

al-fows a higher

since workers can be'drainedtmorc workers.

and then replaced

d)

rn many cases, i.e.

the

size

of

thc of

availabl-e workers state

reservoir which is

of

potential for valorl-

labour-power sation; etc.

allows

a sel-ection

optimal skilf,

according to

age, sex,

of

health,

discipline in than male

Favoured groups are women aged 15-22, vrho are


Inirlct
Y f l r o

at most 25 ('qirlst

management terminology), workers.


mrrr
. . . * J

paid

even l-ower wage rates its low remuneration


alLefnative
q r L s r l l q r

(In many instances,


hrz J-hoco
c^h rnm
rivrrl

despite
aS

wage l-abour
a meanS
/

l.ra r^/6'r ^m6 ^


-

an

tO

and

Of

#anrnnr:rrr

yqL!rqrurroMItilJ

n:+-iafChal

fOfmS

v! O

e^r}rJn v r u n i l vtl e . c r l oL t

j _ n n

e) Measured by the countries, very the

capitalj-st of

standards

of

the

traditional is

industrial usually developing who at or domestic

rever

occupationally in part to the

J-ow (attributable one of the

specific training 'brain drain' from are workers which 'traditional'

the

countries).

number of a group to can turn

exceptions of for

seamstresses, capital, skills.

many locations

constitute

commod-ty production, such as punctua-ity,

Requirements and

sense of

responsibility,

cleanli_ness

23

submissiveness disciplinary pretext,

incul-cated Lhrough both ecoiromic and extra-economic mechanistns - such as inst-ant dismissai on the sliglttest proscription of effectivc education
u ln u ge L u l d . r

are

and the
|

trade

union

activi.ty. with

n the

the

Iong term,
r u rrv-r -r r Ir l ir y^ i - ^ r

a su-itably
er-

organised
nrf v

system togeLhcr
Uo d c Q In u l i_t

^r^r Lo c Lue

r .arya r r a - q . u uo u r w E rrl b l

ions

of

hioh

rrnomnlnrr-

ment wirl work-force

no qoubt to the

be able

to

adapt of

the

skirls to

and discipline

of extent

the than

imperatives

capital-

a.n even gr:eater

has al-ready been achieved. f) Productivity

in

the world as output

market oriented per

industrial-capitalist result of the

sector,

expressed of

employee,/Lrour (the discipline, in the

combination

work-organj-sation, closely similar with leve1s processes,

capital-

eqr.ripment etc. ) industriar This

compares very countries for

traditional-

and in which in

some cases exceeds it. have actually it would

comparison is to world misslble (for

based on processes factories from and are this

been transferred be imperwithout industry

market to

operation: the

concl-ude to

that

same woul-d apply probable

qualification

the'old'

import-substitution However, it could

manufacturing is

the protected processes

local- market). of productivity requlring

that in

comparable levers all those

be attained

eventually

rapidly

trained

semi-skil-red

workers.

B)

The technoloq-ies

and the

organisation (or

of

purposes -of decomposing parts have been refined that rapidJ-y trained

c _ o m p - r _ eL r _ g d u c t i o n x to a degree workers

the Jabour-process fo_r the processes_rnto element+rJ be so perfected) carry out production this process. such the As be

could

semi-skilled

could

most of

fragmented routines which make up one entire rfactory'or'technical'division of labour, conceptua-ly distinct of labour, duction. or the In practice Aparc a first this from the of are the or is territorial labour or division they from step form of it labour

form appears to modes of actual

international-

division proof process often or

between dlfferent within the for

inseparabl-e fact the that

valorisatj-on. represents automation, aspects. productivity by allowing

such a clecomposition

precondition of labour 1n the

mechanisation

the

divislon

has three intens-ty it cheapens to

significant and production workers

Firstly, of

permits

an lncrease

(Adam smith)

. secondly, to

each fragmentary

operation skill which

be allocated for

possessing the minimum 1evel of - meaning as a rule labour-power

necessary is

each routine and therefore

abundant

24

easily

available

and very contrcl

cheap of

(Charles

Babbage).

And thirdly,

it

facilitates workers of

no longer

capital

workers by making once necessary skilled - ilrus pracing indispensable a weapol in the hands 'temperamental' against skitled workers, whose skil-Is endow of monopoly: skilred moreover, workers this weapon is not blunted that other may be temporarily

tighter

them with by the fact

a degree

needed

elsewhere

(Andrew Ui:e) . in terms of possibre the

considered

what

is

abstractly of the

technicarly process for

and can no\n/

organisationally, be taken operations instances, (even in utilisation in the the so far, in if

the

fragmentatlon that

production period

requJ-red, which

training are

individual in many

processes to

as a whole

very

comprex can,

be cut the of

a few days, phase for

a few weeks or

perhaps

a few months

running-in

labour-power countries of

a new product). The more the within the j-mmediate process of production appears capital as possible accumulation, specific (and necessary) the more the possessed by urrder

developing

concrete

imperatives of

generally workers for the in

row ]evel these

occupationally wilJ- operate abstract of

skirl-

countrles of

realisation

these

possibitities

as one factor, among others, - wirl in fact in this direction.

force For

technology

and techniques so-called to

work organisatj.on revolution of

exampl-e, the 'progress' great at the same time empJ-oyed in

electronic the tevel

may wel increased

enable automation, those workers

be made in the

direction of skill

reducing the

demanded of of from the

stilt

in<1ustry.5

Th"""

determinants folrow

the

development of

and applicatj-on capital analysts allegedly industrialas the counter

of

technofogy, will

which

imperatives by those once, or

accumul-ation, who britheJ-y once'

no doubt

be gladly

overlooked which in

extrapolate

those

tendencies development

characterised

technica]

the

traditional

countries

inevitabre or

and who now regard the trend towards automation 'reply of the industrial countrieslintended to the trend towards relocation.

even reverse

A current instance: the firm of Kochs Adler AG, Bielefeld (West Germany) , recently announced the ievelopment of an automatic sewing machine ( tclassical sleeve vents sewing and folding performed in one single automated operation'). Third in the list of the ten points which characterised the machine was: 'Very short time required for training of unskilled operator'. see Textile Agiq, Noveber 1979, p. r25.

25

C)

Technj-ques of to

transpoLt

and communication

allow

indust.rial extent

pro-

duction

be l-ocated and managed to distance (containers.

an increasing roll-or:/roll-off

irrespective

of geographical

, air-freight, l'ras of a

comrnunications etc. ) . Productivity telex and other electronic than average in these branches - the result increased faster quite correct assessment of the improved conditions of for opened up by a geographical in other traditional branches, industrial - world-wide. sequence?

valorlsation production

redistribution initially and nov/ -

capitalst within

a redistribution countries,

and between the con-

as an unintended

The three

main points

above emphasise those conditions in for

elements the

and changes in of capital

the contemporary which, although the

structural not

valorisation could On the bring

individually,

conjunction of labour.

about qualita-

change in (discussed

international that

division

assumption

below)

what we have identified

as essentially

proportions, quantitative tive changes have now reached sufficient 'i{e can expect to see either the development of entirely new relations of international competitiveness, of existinq or the significant broadening are of central and

intensification importance.

relations.

Two factors

Firstly, a certain

the

creatj-on

of

a world-wide

industrial

reserve

army,

and in

respect,

a wo.rId marke!

fof-fabour:power. or

Although

capitalism of and the

has always been characterised workers, political vicinity jobs with workers reasons of a fixed have usually to find location.

by enforced been obliged fn contrast,

voluntary

migrations social in

for

economic, their skills

a job

which matches

capitalism

specific

skill-reguirements

either'here'or

is able to create fthere' depet:ding

on the prevailing

for valorisation. The changed constellation conditions j-n the world economy means that workers in the of structural conditj-ons jobs traditional industrial countries now have to compete for their to an unprecedented countries, but also extent with off not only with workers from other j-ndustrial aIl

workers against

from the

developing

countries'

of whom can be played

each other

by capital.

zo

SecondJ-y, a world the traditj-onal-

market

for

production

sites

is

developing,

on which are

industriai
wi{-h:nrf

countries
eo:.nSt

and the
eaCh Othef

developing
tO retain

countries
Or attfaCt

forcod

1.n conrnol.o

worl-d markel- oriented and needs the necessarily state to mean it

manufacturing fulfil

industry. of

Although

capital this

uses

a variety be reliant

functions

does not state.

has to

on one particular

These changes in
thc

in

the

structural

conditions firms
tO

for

valorisation systematic
c rh u qa /n v r c l _
/

mean that account


d ri r e q cninl

order
ontinn

to
nf

remain

competitive,

must take
SiteS

of

yntnn=+.ina

hr^^,,^tion

W i t hr r e

incrl

labour regions

not in

me::ely in their

other

industrial but to

countries,

or

less

developed to developing

own countries, in

an increasing

extent

countries, to other

and include pollcies sites

such possibilities making investment is

as a complement or decisions. an indispensable is that

alternative at in of

Rationalisation instrument thc policy

traditlonal the

has been and stillof


nf

vaforisation
narJ-q

capital-;
]-ha

what is

now clear
l-n

rolncrJ-ino

nrndr:n1.inn

nr^^c<

arrolnninrr

anrrn*

_ _ * . .J r t e s , wil.l grow

as a complement to in importance.

rationalisation

or

integrated

with

it,

What is

novel is

about not

such

a world:wi9e

r.g-o_rg_anisat-i,on ! o are
and

capilalist fragmcnts,
a u s n o r : i ff i Ir .r v
r,ev

p5gCuctjon
fhef fho

that
are

production
diStribUted

processes
tO SiteS

split

into
fu n v

fredmpnts

eJ q Yq i o n o, du q rr r e

type
u J

of

labour-power
nf
v !

in

a way that
f i r

the

combination
a

of

a specific
d s t ru it rhu r t t i o n a'll.OCatiOn satiOn Of

d i r r ri Jer v nl n ir v nf +A fheqa ^r+r

nr rv r - u u r r r i c t i n n y u u r d v r l-n

in

n q: t r f -u^ * v^P*g - o L ^U*l ^> , y r ! i I t SiteS and

} / u u f

^ne.ifir-

nrfinnq n { - r z l - y p6 f

narlinrrl4;

their ont

sner-ifirimal rral ori

I a h n r r r - n vu 7Ye e; . ! Y ,

ensq1.eS

the

capital

under

the

p::evailinq

economic and political preceding

conditions.o

l{hat of

is

new is

that,

in

contrast the

to

decades

if

not sites

centurj-es which can

capital"ist is

development, expandrng

ncw be used

spectrum of alternative j-n number, and at the rapidly spectrum now embraces not

same time ony sites

i:,eing 1n

changed qualitatively.

This

A -

However, own sake

process, in

site and la-bour-force innovations isolalion and optimised independently

are the

their orit for not carried object of the optinj.sation , view that the position make eventually could

techniqueiSrathertheundividedcomp1exofprocessffi Consequentl in"E""ti"".. which separates rationalisation and relocatlon, and advances sufficient forceC rationalisation in the industrial countries relocation to low-wage countries superfluous is misleading.

27

diffeient industrial the labour

industrial country force extenL -

countries in the

o) dif ferent analysis

regions with the

rvil-hin one of

final-

by .:ge, sites

sex, in

race,

national-ity number of

sub-divisions etc. - but to an countrics. the social in

increasing

a large process

developing

Ths has meant an extreme context is wi-thin which

of for

diversification

labour-power

industrial-capltalist

production

recruited. material a glimpsc on which into corporate

W :ti h o u t

a detail-ed are

knowledge based,

of

the

calculatjons it is of

and without to

a company's books, process firm;

course

impossible

say precisely innovations for

rvhich product-innovation, of site, and type nor is it

or which particular of labour-force to or at to is possible sites, industry duction specify which the

complex of the in

one dictated which

any indivj-dual

new sites

at new ways labour-power wj-ll be utilised - ranging from buying-in from domestj-c of a world market factory is
1

construction

at

a free is

pro-

zene.

Nevertheless, qualitatively

i:he ir-rformation to

which quite

available precise

adeguate both detail to

and sometimes in

financial

all-ow such calculations profits in

be simulated.'

The extra producticn and the


a If u

promised by a world-wide with of these

reorgai-,isation for

of

capltalisl firms,

accordance

new conditions

individual
ir.. LI ^-r orru

universalisation
q e a lf e

this
fLn J .

reorganisation
e ^ y r lq r ir n sxn a r tuhr ee l

through
r ^ ^ ^ ir L ir r l yu>5 u r

the mechanism
r s q !lf , L ij f w an -

n u rm ln g u f # iLn] n t t , u un [ ,a+

> U Ii I i t L S u t f! f UC g e l n t

gf

such a reorga.nisation provides the

in

a qualitative

sense. for

For

example, the

this indicators

perspective listed in

a plausible which st

explanation

many of

introduction in capitalJ of for

turning-point international is concerned.

showed the exist-ence of a distirrct changes in the development - especially at least as far in as the the genera trend the dcubli-ng of rapid growth share of

divj-sion Consider

labour,

example the

developing

countries

1n worl-d exports of the

manufactured in

goods between the competitiveness

1968 and 1978, an expression

(English especiaLly p.114f,571ff For example, Frbel/Heinrichs/Kreye, op.cit., t.h.tu .inut R.ntubi translation, F, 152, 3B1f); Editors of Textil.-Wirtschaft, l" T eines Beklejlr"q=bettiebes !tsberechnu-ng fr Erstellung mimeo; author's conversations with Federal German industrialists !'rhjahr_ -1977, to South East and purchasing agents of the garment trade during a business trip 1978). Asia for 'site inspection on spot' (fall

28

of

siLes

in

manufacturing.

the developing 8

countri

es for

world

market

oriented

11
However, explain the the foregoing specific factors are not in themselves

sufficient at which the

to

and qu_ite abrupt of capi-talist

poj_nt_LL time production

world-wide

reorganisatlon

began: of the

the_end timing the

. An explanation of this phenomenon is presents al-r the more crucial contemporaries fol-lowi-ng passage written author sation his and relocation: a s e a r - l y a s 1 7 O 1, i n

when one considers which with

an unknown English of rational-i-

national

a vision

Wherefore, that the English Shipping may be cheaper t.han that of Holland, Ships might be built in our Plantations ... Ships are bui-1t in the Plantations of cheaper Materials and might be also by cheaper La-bour ... That these may be wrought by cheaper Labour, the Work might be perform'd by Negroes. To si-ngle Parts of Ships, sinqle N.g.o." night be assignrd, the Manufacture of Keels to one, to another Rudders, to another Masts; to several others, several other Parts of Ships. Of which, the variety wou'd stil1 be less Lo puzle and confound the Artist's Skil, if he hrere not to vary from his Model, if the same Builders woutd still confine themselves to the same scantlings and Dimens i o n s , n e v e r t o d i m i n i s h n o r e x c e e d t h e i r P a t t e r n s . . . t r / h e no r c e a g o o d M o d e l can be found, why shou'd the same be often chang'd. so tlat. the same Negroes might be imploy'd in only singJ-e Parts of ships of the same scantlings and Dimensions, by which the work of every one wou'd be render'd plain and easie ... And, thus a way is shewn to build 'in our Plantations by the hands of Negroes, to render a lrlork of such variety plain and easie, to enable Negroes to build with as much ski1l as those in Holla:rd. The strength of Negroes is as great; a way is shewn to make their Skill as great; wherefore, chey might be taught to build as well, and with equal expedition. The waqes of Negroes are not so great as of the Dutch builders; the annual service of a Neqroe might be hir,d for half the Price that must be given to one of these. only high Wages, or slow and clumsy Workmanship, make La-bour dear. Negroes may buil.d as good Ships with equal Expedition, for half the Wages that must be given in llolland. And therefore, Ships of cheaper Materials built by cheaper Labour in our Plantations, must needs be cheaper than equal ships in Holland. rf ships of Materials a great deal cheaper, might be built in our Plantatj-ons by Labour of half the price l-hat must be given in Holland, they must 8

s".,di.. on some aspects of the process of reorganisation in manufacturing can be found in Frbelr/Heinrichs/Kreye, op.cit.; M. van Klaveren, Internationalisation and t-he crothing rndustry, mirneo 1976; studies from the resffirial re-adjustment and the international division of labour'at the University of Tilburg/ Netherlands (including work by Ben Evers, Gerard de Groot, wiIy wagenmans); special Volume rPhi-ippines: Workers in the Export Industry', Pacif:-c Research (Vol . lX, Nos. 3&4, March-June 1978); Special Volume 'Free Trade-2"n.. a r"a"strialization of A s i a f , A l " l P o( v o l . B , N o . 4 & v o 1 . 9 , N o s . r - 2 = s e r i e s N o s . 3 o - 3 l , r g 7 7 ) ; A n t h o n y Countries and their rmpact on western Manufacturing, New IndYstrial - ond : d : LE d w orn s1 ^ !l ! e F o r s t u d i e s o n a g r i b u s i n e s s c f . t h e b o o k s a n d a r t i c l - e s b . / E . n e s t r e a e r , 9 9.

needs be cheaper, and possibly by 20 or 30 per cent. or by Thirty or Forty Shillings in every Ton. Ships of any kind brought to England so very cheap, w1ll r:educe l-he price of others here; no Ships will be dear as long as any kind is cheap. To build as cheap in England, Men will be forc'd to keep more to the same Models in Ships of ordinary and commonuse; they wili be forc'd upon the invention of Mllls and Errgines, to save the charge of Hands: they will be forcjd to wc'.':kvrith more Order and Regularil-i' Labour may be afforded by which their cheaper.-

If

this

author to case,

can already sj-tes with cheaper the labour if

discuss cheaper

the labour

advantages and other in 1 7 O 1r through

of

a relocation

of

production (in this

favourable drlrl in if

conditions take aware of at

ra\^/ materials) added transport can be utilised: he predicts the

addition he is

i-nto consideration of how unskilled

costs

incurred; the

sub-division of production

the labour-process; traditional sites

forced cheap

mechanisation upon manufacturers in thigh if he expects those to low-vrage countries coupled of

v/age countriest placed in a run-dovrn higher propose from

to compete with crisis

imports; from

branches

by competition of

experience

and deskilling intensity

labour,

and productivity of over free trade to al.l

with increased discipline, labour - and if he is able to zones in England, and destined

the establishment legal controls rsupernumerary' imported eighteenth sixth of this

production

exempted to absorb

and production produce this the to

workers - if duty-free century, the

manufactured

goods using at the until of

raw materials of the the

was conceivable worl-d have to see the fulfilment

beginning the the

\,rhy did twentieth

wait

end of

decade of vision?

first

stases

In view of

this,

it

would

appear

that

the into

structural our three

conditions

outlined cannot

in the previous in themselves

sections explain

and condensed drasti-c

main points, of

why the

world-wide did.

reorganisation

capitalist

production

began when it

For example, labour-power capitalist agriculture

although has only

the

developing

countrles' process

potential for

supply industrial-

of

recently through

been made avaj-tabte the of the proletarianisation a predominantly

wage-labour and the within

capitalisation of broad

of layers of nrilieu,

irreversible what

the population

remains

non-capitalist

Anon., Considerations on the East-India Trade, London 1701, in J.R.Mcculloch Early Engl.ish Tracts on Commerce, reprint Cambridge L97O, p. 620-624.

(ed.),

30

and although econotnies into capital always quantity of is

the

partial

re-integ::ation division in fact,

of

the of

central-1y

planned by

the

al-so quitc

international recent -

labour

as dete.rmined

capital

and capitalism

have

found ways and means of when requircd,

mobitising labour-power in sufficient 'exogenously' through the dissolution be this

non-capitalist

developing creation sense of of

modes of production in both the industrlal arrd tendogenously' through rationalisation countries, or and Lhe a suf ficiently term) varying large with industr.i-al the rhythm reserve of capital army (in the strlct

the

accumu.l-atj.on.

And, work

although

the

devefopment possible to

of

technology

and the

organisation into

of elcmentary than the fact

now make it

sub-divide learned

labour-processes to a greater testifies

operations previously' that it

requiring the

swiftly of

skill-s

degree to
-'^r and

history

capital

and capitalism to adapt


n -

has never
nr . vf

required
fLnv

tnuch time
n r ra n lagavr l uh r

the

structure

and str.b^ exigenCics.

d r r r i s r ) n r uiv r rur

nrndrrnfinn 1,!uuueLrvrr

n rn n,n rf + r tr u n ir t-i ie s h; ^^ - ,t o

Of,

further:

although in

transportation productivity the in proportion brings

techniques the past of total-

have acl-rieved higherthan decades, costs and in many for by accounted

average instances transport

increases

have reduced to a level the

which

new world

structures prevent

within

real-m of from

profitability unrivalled

sites and new production - transport costs rlid not for cheapness 250 years

Indj-an textiles

being

Mirabeau's apply here.

'rmpossible? If the

Ne me dites

jamais

ce b6te de mot!r

seems to ha<l

imperatives allthose

rearJ-y demanded it, associated wlth and transport in the production many years

of world capitalist 'natural obstacfesr the extent of

accumulation to production of the division

obtaining

labour,

labour

which mlght of

have constrained or the

institutional

lnnovation of

va1orj-sation in the

capital

world-wide

reorganj-sation

forrn indicated

above would

have perhaps

been overcome

earlier.

This

indeterminacy

is

not

surprising is

si-nce our

prevlous a static

consideratj-ons concept of the

were extensively unevenness of countries.

based on what

essentially in the

capitalist

development lack of

industrial it is

and developing necessary to look

To overcome this

determinacy

mnra rrrv!g

al naal vlvJgrJ

"

. q+ L

*ul l-l rga

a De n a n { q Pg9

n vI

the

uneven

rhythm the

of

capital.

accu-mul_ation

('unequal' inhe::ent cursory in

devel-opment) , and in different models account of of

particular, accumulation. the unequal

developmenta_ tendencies with a verv capitali_sm

We beqin

descript.rve

deveJ-opment of

12

The first labour was the

reasonably points of

clearly towards

delineable and/or to

form of

a world to

division capitalism

of

which result

can be att::ibuted cr-Lsis which

the

attempt to

overcomg the but

feudalism out in to this

by means inherent of

feudallsm,

9f Weqlern European in r:art also turned

be elements process

a futu.r.e_ cepital-_ist geographical

incud-e:

9evs:lopment. The key moments expansion, the establ-ishment of on plunder within trade anC monopoly, the in of pores luxury of the late-

the'ofd' unfolding feudal

colonialof

system based mainly and finance of

commercial on the

capital

socj-ety

basis

long-distance the

goods and credit,

some raw materials the beginnings and large parts of of

together the

with

organisation of the

large-scale

economic decline Europe, the

Mediterranean rise of production the factors

countries the Nether-

Central-

complementary

iands and England, and export-oriented grain tsecond serfdomr in Eastern Europe. However, prove of the most decisive and the for later first developments of steps of agriculture

based on the which were to pri-vate of

were the commercializatin negotiabte proletarianisation

transformation

l-and into in the

property, the rural

and the

associated in

population

some areas

lr/estern

Europe.

The destruction production

of

the

bases of

independent

agricultural prelude

subsistence and

through

primitive of the

and primary land phase of

accumutation,/exploitation the to in the t{estern

the commercial-isation centuries-1ong

constituted industrialattempts to

preparatory

capltalism subsume to tied to

Europe, characterised reluctant relati-ons the guilds, these of

by capitalrs

itself feuCal and in of existence, incursions

and recalcitrant of dependence and subject were in to

labour-power. the

Initially

small-peasant degrees protected of

family-economy uncertainty the

varying also

producers

however in of the the

from

dj-rect

capital-. at

Capital, the limits

form of

commercial of

capital its

and financewithin

capital

possibiJ-ities of the

development century'),

late-feudal

society

('crisis

seventeenth

was forced

32

to

adopt

the in

institutional

innovation

of the

a development inter-regional capacity cf the to guilds,

of

trade

and

production world output.

mass consumer goods for which to alone break for had sufficient the

and ncleed such an traditional to their had

ma,:ket, In

absorb the

order

resistance

inst:.tutional subordination to resort to

context to the the

industrial of

commodity production, capitalist of production, dispersed

imperatives

capital rural this

integration of

and devcloprnent the rural for

industry. becante also net-lre'


l

As the

proletarianisation the material

population existence fertility.

developed

increasingly brought

basis not

rural of

and probably Ry its very

about a change in rural industrv

the pattern djd allow

disperscd

any,dccisive in

iucreases could

oroduct,i-vitv: achieved industrial with the to

as a consequence, the area

increases of

production

itr _l:!glrt_ oi-rly be

by extcnding production transj-tion the

t-hose regions

engqg.qq-i3-19q9,-s-t.9

('extensive accumulation') . This also corresponded 'oIdr to the 'ne\n/' colonial system: the from the of agricultural and mineral rarv materials (for example, management of Iabour-power 't4est Tndies based on the importation the the Atlantic or force, with the or triangular industrj-al through trade) ; and jn the of development the forces

switch in the of the the

productj-on with

conjunction sugar African

a conscious economy of - one link in through also as the

plantation slaves of

suppression colonies, This

autonomcus commercial direct

either period

market.

coincided

Hol-land by England Finally, direct to the give

cJraduaJ feplacentelt of world svstem. hegemonial- powe:: in the capitalist proletarianisation material the production vast increase of the

a sufficiently producers creatj-on

advanced degree of of

and commercialisation of a growing selling internal goods on the support

leading in the prepareC

market, world to

posslbilities to

for

market

and a state of in the

virtually

unconditional a further

the

promotion innovation

capitalist shape on

production of England's

facil-itated Industrial could

institutional this

Revolutj-on:

which

capital

now finally arrival

created the preconditions +-he real subsumpi-ion of undertake the characteri-stic free relation in the of

Iabour-power. domination sys. for


nthpr

I^iith the

of

over

industrial-capitalist productivity

labour-power

fgctory means withouras a

b e c a m _ et h e expansion of
ufinrr vn

charactefistic productionto

the

valorisation
/

of
formq

cgpital
of
vr

and thc

l E ^v f u sp rn rq i r r vc s r r \ p

r v rn u t t m n d ' i {u -ryz n !rvn dvr r n f v - . m vuf Y uu

r v g va ls Ji n o v -c r r

fr:nCtiOn

accumulation)

33

One of

the

consequences

of

the

phase of

the

so-called

Great

Depressi-on socj-eties a globa irrfra-

(1873/96) in and the rapid

Europe was the of

risg.of

new industrial-capitalist indisputable the extension their of

tcrmin_ation of

England's export

l-,eriod of abroad,

hegcmony, the

expansion -

capital

network of structure millions imports of

shipping

and rail-

connectj-ons

- with

associated of the

a wave of transatlantic and finally in by accumulation made 'superfluous' of agricuftural the at produce cost the of to a serious real crisis

emiqration Europe.

fncreasing the value rise.

Western Europe lowered in

labour-po\,ver, at - whilst agriculture of the

Western European

same time of for the

wages sJ-owly began to countries to

The process of

dcqradation

developing

complementarv

instruments

metropolitan

accumulation

the stat.is was Finr|lrr

accompl i shed . the occasional disintegration and the regulate autonomous the necessity of of absorblng cheap labourprohereafter

Without

abandoning

power rel-eased by the duction acquired povrer to of the preside in the

non-capitalist countrj-es, of its

modes of capital of

industrialto

developing the basis

the

capacity

supply

labour-

an extensively contro]

extent:

subsequentJ-y, cycle, over

any exhaust-ion power to

reserve

army through of

-industrial

oi' any undue growth capltal's

in the degree over

exercised

by workers

an atomised work-force, mechanisation and 'rationalisation' workers needed and lower years which in the the costs

Could be met by measures such as intended of to reduce the numbers of empJ-oying them. in in the world economy al-so neutralising following has fr:om a 'social a

Each of signify

the

initial at

of

the

boom phases has succeeded of capjtallst

points

capital centres

politically

the working preceding either above', pactr taken or

class

production,

phase of the

depression

and subsequent defeat conditions, cass

form of

outright

this restructuring: 'cIass struggle through the in negotiation which put the of

under more devetoped and the economic reaction temporarily of the

between capital

working

fundamental-s

of the capitali-st 17932 Conservative domestic industry


L

and socj-al in

system are

beyond discussion. facbory and ; in Le

EngIand, 'deafened

workers by the

in din

l:oth of

production' (loi

France,

the

collapse

demand for the right

a guaranteed of workers to the

minimum living to combine of peasants,

standard, Chapelier),

Iegislation abolition

against of

feudat

obligation

benefit

34

and hence the important 1848: of put

removal

from the

political

struggle

of

the

workersr

most

potential

allies. accompl-i.shes the through before it exorcism to

The defeat of the democratic revoluti-ons 'spirit the of communism' , which circulated threatened to abolish capitalism dov/n roots. Concentration and centralisation the the

Europe prior

1848 and which

had scarcely

1896: the

have reduced real in

competition of

between from of

. , i , ^ ^i r ilhQt r -.v..i L , ,. ura r c^a p r t a l s Q ^

and hence removed a certain slow rise in workj-ng class the

degree

protection beginning

working

class; of

wages Ieacls to system. development

the

some sections towards

Western

Europe orienting

themselves

an acconmodation with phases of almost

capitalist

1948: Early rised by the

industria*capitalist drive of not

were charactecapital this policy power even but as possible were

unlimited to

only

individual as low of

al-so of in the regurar of

aggregate interests

cap-tal of

keep down l-abour costs The consequences inadequate

maximum profit. population: of the

realisation-crlses the

based on the in the

purchasing

the mass of the

192Os and 193Os such crises system itself. the history of in

threatened

existence by the of

capitalist crisis

Once th--s most capitalism had

serj-ous economic been terminated crisj-s, union

and political

obstruction responsi-bility', social the

war-economy, high unemployrment, world economic 'economic democracy', 'moderationr and 'trade at the expense of in the the mass of industrial the previous in the population, was partnership of

a n e \ ^ /m o d e l o f developed defects In to of in with tire

countries

intention

avoiding

threatening

system through

planned

increases with the

mass consumption. countries was

addition,

ideoiogical the

competi.tion

socialist

be waged through the organised

core of

economic satisfaction and political the toldt workinq class.

integration

13

The model boom in initial increases aqgreqate or too

of

accumulation years after

which

sustained

the of

unprecedented

post-war an

the

1948 was a product countries in

us hegemony. After a pol.icy of wage that which

period, llnked share

the to of

industrlal increases wages ln Arrighi)

pursued

pro-guctivity,

engured

the

low'

(Giovanni

national income dj_d ho!-,.'become- too high - thus avoiding both the Scylla of crlses

35

ofvalorisationandinparticular,theCharybdisofcrisesofrealisatpayment by resultsr also neant l,1ot"o-rer, \'rage increases tion.lo the in order to foster conserving or widening wage differentials potiticatlydesired'aspirant'mentality.Thefulfilmentofthedenanrls in comr'rercj'arl'ised only possible of the working class became increasingly formsrwhichcorrespondedtotheoverallclemandsofthesystemand mass Increasing atso to the demands of the t::ade unions' increasingly simply a necessary consequence of incomes (even rf they were very much and the of the sphere of reproduction the growing capitalisation enrployment a tendency towards full time), of lelsure increased marketing and an extension of the 'welfare state'made this model attractive' class: core of the'old'working especially to the hard trade-unionised expression of potitical ,This is our state! we won't destroy it!'The in the industrial parties workers' this was the hegemony of rgformist the fact that external states): (social democrati-c welfare countries at work, in both factctry and efficiency control and pressure for greater office,inthefamilyandduringleisureperceptiblyincreased(cf.the increaseinprematureretirement,drugdependencyillnessesetc")waS acceptedinreturnforthepromiseofthepossibilityoffurtheradvarrce reward. Hov/eY.gl:' monetarr for greater or in return in reform poricies unliketheorganisgdworkinqc}ass,-capitalcould.JnprinciPle-dlscard ' r this modet should changed circumstances lo tion which eriod of an at accelerated the end of and increa qbg 194Os led, ' autocentric' arou.nd known as full was modified ' acciltqqle:

a s m o s t c a p i tta lliis tt

co ' r se i n d u s ltg r e 1 - - g e g rul nic r r e s s r at at which this

(euphemistically state was reached

emplolment) . The point

et du 1.O Samir Amin, Le modIe th-orique de -I'.acguJnPlatio! at. for the following: in: Boubacar BarrY' 6--*Eid"F.te'nporain' dvelopp.ement cono*ique et.99gial and the lJew atilf3elf-relia'nce tgzz' p.'-JfEZilil1? Le royaune de hraalo, Paris rnternational-EconomicorderrMonthryReview,Vol.2g,No.3,July-August1977' p . 1 - 2 1 ; W I a d i m i r A n d r e f f , p r o r i t s a p i t a I i s m e m o n d i a I , P a r i s 1 9 7 6 111-' ; ' No' Tov,ards a Theory Giovanni Arrighi, TwentiethThe class -s!rugg!9 !l Giovanni arrighi, september-october 1918, p.3-24; Centurygurope,Manuscriptlg7giRobertBoyer'Lacriseact'uelle:uneml-seen perspectivehistorique,Critiquesdel'cg.nomiepo].itique,Nouvellesrie,Nos.7-8, der der-Fllyigkluns r6E-laqeg u.rliii-EIl6r,.tt, 1979, p. s-tt3; Aprit-seprember wetKapitaljstische Dieter senghaas fta'), weltw--irtsch"f!: kapitalistisclren l: in-der |g.7g, p. 1o3_148; Andre Gunder Frank, Weltwirtsc|raft konomie, Frankfurt 1979; Eric Manuscript Hamburs 1978; Andre Gunder Frank, crisiJ, iii3i5:;!*"i.t (reilewl"q W'I'f'Rostow' The World J. Hobsbawm, The development of the world economy 'Econorny:HistoryandProspect),Cambridge-Journalo-fEconomics'Vol'3'7919'p' (cont. ove'leaf)

36

on the increase addition limitsi

one hand, in of the

by the

dissolution rate

of of

small-scale

agri-culture

and an

participalion

labour-pov/er other

from abroad up to hand, by the

wornen, toqether with the forced 'natural'or their political extension of the tertiar:y fn such a sec1or,

and on the in

reductions situation, reduction together nalisation method for it

working

l-ime and other in the (consider in

sj-milar

measures.

not untypical j-n investment with

history the -

of capitalism, 'investment gap' of

a temporary since 1970!)

gn lncr.ease

wag the bringing

t_o ratiotried. and cla.sgic ?nd as it.se_e!r-ed t.he only the supply of availab*ls -labou{-po-wer, ?nd the_ terms t.o a leveltimer howcver, speak and form_accep_tabl__e to. th_e demands cg_pital luas not completely confined - since mass unemplol,merrt as the working class in the

the-share

investment_devoted

on which of to

was supplied, This for so to

valorlsation. this method

fortunately

an instrument interests or better of

directing

and disciplining now requires

accumul-ation

still,

lying

outside

resort to capital 's and i-he state's productivity-linked

grcater ideological 'objective' exog'enous, causes, cont::ol or

camouflage, supposecly

1nf luence.

Two decades of countrj-es

wage increases in the industrial .to such a had led bgtr{een fg;1ge growth. in the dlf.ferent-ial industrial wagejs_in the iqdustrial lverage -count! es ajrd aveLage indltstrial wages i-n the devsloping countries that, in conjunctjonjuith other structu.ral_gg! changed so rapidly, of the a relocation of parts to the of the manuhad not

al-1 the which

facturing countries

activities

industrial

countrj-es

deveroping

became clearly economically feasible and - through the medium - in many cases necessary as well. of competition For an increasing number of processes by the end of the 196Os/beginning of the 197Os the cost advantages of of industrial politicalcou_nlries stabi-tity, sufficient in (infrastructure, proximity to the to education suppliers for the and and other (Iow training consumers tyPes of workers,

etc. ) were no lgrger coslg advantages working conditions

compensate developing

encoultered

countries

rrtages, other labour

favourable

to

valorisation, etc.).

adequate

productivity,

numerous government

subsidies

Note

10

(cont.) 3O9, and Decerber 1979 (with Plerre Judet, Joyce articles Kolko, by Jean Marc Roussel)

3O5-318; Le Monde dipl-omatique, No. Anvers, Nicolas Baby, Claude Courlet and subsequent issues.

37

based _on wage increaseso.tet t lotg peti.od of not tetr.ble .Linked to accumula_tion jn the time as a model of (increasingl.v _autocentric) since what appear to !g megely re-siduql--fe.I+!jg.g: countries, industrial princ-ipa}ly en\rfgellgl!=L social to their countries of the j-ndustrial In other words, !he__meqs!_e!-:ocial. prod(ctivity is increases partnership ripheral capitallsm in the developinq countries, sooner or l-at-el: serve ttt-Ls_ via the mechanism of model of the celtr:rl rationalisation precondi_tion oj and relocation, its functionigJ: relocation for fall the in t-o-dellive

sufficiency. the response capital, industrial without are

Rationalisation to the

combined wth

-: lte s-elf which constil-ute valorisation emplo1'ment in of of the

new structural about the

conditions a tendential world-wide of

now bringing

countries

through

reorgairisation

production classical-

requiring

a forcing

merely

rationalisation

as the

scheme demanded. Because of production the in relative the decline in the of capital-ist conpetitiveness 'what has been taken and because once more', the social Lhose partners st-ill

industrial cannot

countries

by the oil-sheiks have tacitly


4----_-

be redistri-buted

employed in

o t h e g : : o w ! . h _ . i n _ U q _ g - 9fs . f in future agreed that will no lollgiIlgJnled-le countries the j-ndustrial to an extent determined

productivity but wil-1 be leqs, reconomically .feasiPle' . Workers are remaining production assured in that

by w.hat ls

restructuring

jobs to

the

industrial countries

low-wage

to making Lhose contribute 'more secure' : relocation of countries mix an 'optimal allows firms to achieve will

and hence secure that production rDefensive rationalisation' and in high-wage countries costs and hence lead to - 'today's profitability after tomorrow's jobs' continue the fower the

country. remaining in the industrial reconomi-ca1ly feasible' wage increases share of wage costs of in total production and and the day

a reestablishmentprofits are (an extremely to

competitiveness lnvestments piece of

tomorrow's misleading in product

propaganda as and/or cheap

long as profits relocation); lncomparable Oi1, is

be invested crisis, fuetled

rationalisation of of of

finally, economic

energy

two decades of (excessi'.rely) the economy and

growth

by a flood restructuring

necessitating

a fundamental for i-nvestment.

opening up new fields

38

These expectations crf the of various

remain,

however, to

as yet

unfulfilred.

The outcome in the growth he has not


"ountries

restructurings

date

has been a reduction

ef f ective

slackened
vLL Jef h L n ni veer

growth
hq !l q r r: u L \ .r l nce ! a

demand 1n LlE__Ugq!.9],a_I co_untries and \dorl i n _ m a s s i n c . o _ m e si I _ t h e industlial countries


l-rtr !i r u n n r r a c n.n n r u r r r y ev!rur, .vr i n.' i , ^ ^o r r h - rr = - - -^ Gn

(incLudj.ng OPEC). gr the tendential and fafl output


-

in

any other

way. This

is

the

'central' prgdgct,_

cause of ildus-t_qfgl

(with and to
|t is

in _rates_of a lag) foreign extent

gro_wth. in trade in

domestic in

observable

the

countries
beCauSe

a fesser
flro direcf

the developing
Of the COnditlOns

countries:
of the

industrial 'centi:al'
fun.J-inninr

nrnrlsgl

ltg

of

the

post-war

modcl of

accumul_ation.

III

14

rt

is

not

particularly

difficult

to

predict of

that qrgllrth..
fh:i

the

worrd-wide

reorganisation accompan.ted
i-ho nowf

and deccrltraisation

capbarist o{
wal-

production wil_I _contjlruJe orrer


structural con-

by ggmp-aratiy.ely
as there

lo.w ratgs
is no sion

for^r'a155

lhg

ditions are

for

the to

valo.risa!ion the

of

cgpital

whrgh undef_]_i_e_hr_s deve.lopjnent _t fucure.

l i k e l - yis,

change in *" example, to

f;o - e s e e a b l - e .r

There wilring

for

no discernible commodities

political reducti'cn and capj-ta-

force

and able of restore

impose a drastic

freedom fore for in

movement of that

in the - and which productivj_ty

which is both j-ntelnational could there-

self-sufficiency of

which

is

required to

as a precondition in the class

a renewed policy countries. the

wage increases of

tied the it is

industrial-

The resistance

organised difficurt

working to

industrial-

countri-es

means that pl-ace in

imagir.e cond.itions, austerity relatively of subsidv

a drastic

deterioration

taking

wages and working of in a poJ_icy of the the for

which would constitute the - although this resistance high and r-sing

decj-sj-ve element is being on the paid other

form of lever

unemployment.

hand,

39

f lrv n ( m ! l (
r ! v s s v e : v r r

lu-l hu n r

c u qr ra L r fL iq tu a f i r r c l vw f r r n u Y f :nzl
t

qtil

qf iY o r n i f i nJ a n a l .l L 1 r I f r L hetwn1ln

nl u l n - . ^ o pr r !L ^ r a - L l n t u * a ! ; jerrel1.rnnn

*^'^^

l L l u u Y 5

of nn 1116.

'nrnzlrrn+inn

f|1p

c1-1mn6fition

nnrrrr.Frioc

world ma::ket for

production (always

sii-es in

means that the

a noticeabfe countrics the is).

improvernent is socj-al

in wages and working virtually impossible structure in the

conditions

developing that

on the

assumption as it

current

and economic deterioratj-on

rernains essentially industrial countries

On-l.ya drast-.i.c improvement balance


of

and,/or a noticeable to affect


the

in the developing
of coql-:drranfaoos
g . . g g Y

countries
v

woufd be sufflcient
resnective SiteS SuCh

the

hel-woen
v l v v r

tlrat

adVanCe

the world-wide
rrn# i nn m n l -r r # au
r i l f Y

reorganisation
hv a ! nl rna i n
ts4qvev

and decentralisation

of

capitalist

pro-

rlnrrl-'r

Thus the
nurl r v r n I rr iYo Iir n Ia u I q

principal

PIUYTTvDTD

factors
q a rrEp q

whlch might
nl v LJ l n II^eIy

necessitate
!^
LU

a reappraisal
inrr ir J nl fL rh uo l f \o !

of
reseeable

nr^dnqi

1r1-^r"

L e^ p

vl,erqurrrY

^-rraJ-

future.

Secondary of

factors

might

infl-uence

the

speed,

but

not

the

fact

or dlrectj-on

this

process.

A number of the IMF or

such

secondary lnternational

fgctors

reorganisalion:

_ d o .a c . t t o f ? v g u J a n d _ a c c e l e r a t e organisations such as the World Bank, a not interests the inconsiderabfe of world role as in the the developini

UNIDO, which of the

exercise general

representatives encouragement of countries, of capitalist of ln

capital in

this

reorganisation; attempts to secure the -

bourgeoisie

their

their

local- hegemony as brokers through the possible the human and agaJ-nst

world-market the preconditions of their (the the

oriented for

sub-industrialisation exploitation of

creation natural internal

resources resistance favour

countries required of

as much as is

means are the

removed from alternative foreign the credits interests are of

uses which usually

interests

majority: for than

accompanied capital the

by strict accumulalion resultant

condltions rather

use in for

world-wide Iocal

programmes to structure policies); in in

increase governments West with to offer

wel-fare;

economic

and social

then

represents

a heavy mortgage in

and interest--qroups

for any future reform those j-ndustrial countrles, as technoJ-ogical change in the their leaders

particu']ar

Germany, whose position a corresponding favourable structural

conjunction

own economies appear of their international through the

conditions plant,

for

maintenance

competitiveness of turnkey

('Mode11 Deutschland'; export of blue-prints finds

monopoly rent etc.; the in

supply

corresponding those white and blue

appropriate

economic policy

a mass basis

40

coll-ar

workers

who see the advocate monetary might

chance trade

for

and consequently cipate in the even though

union

uprvard mobility rmoderatlon' in of the system in previousry,

and promotion order to partii:l-refuture, of

gratifications be ress than

these the

and possibry,

necessity, at rsuperfluous' and/or

expense of possess

their change,

co-workers

who may be rendered and relocation regj_onar or of the accommodated in the hope

by structural mobility)

rationalisaton amount of

who may not pranned the the

the

reguisite even the

occupational centrarly

; f inalJ-y,

s.Late bureaucracies of

economies, world-wide status

who have surreptiously reorg'anisatlon thelr

themsel-ves to of of stabilising deriving

capital

quo in

own countrles of

and, where possible, strength and modest propounded agreemenrs

some be'efit the this in

from their (cf .

positi-on

relative

(compared with involr,'ement

devetoping development

countries) for

through

a seective

exampJ_eprojects

through'tri-partite involving transfers

co-operation' of technology

or

industriaf

co-operation

and know-how). and slow down reorqanisation: broad range of countries zones) disciptine preconditions of

other

secondary

factors in

constrain the in

Such for

as the difficulty capitalist leged of sites an eye -

creating

production

developi-ng production

outsirle as it

a few privithe twinklinE

(such as free factors

were in

such as labour

eff icient of

ad-mi-nistration etc. investmentr and 'political in the industrial

and skill, infrastructure, 'favourable and 1n particular a climate st.ability'; the resistance for social of orqanised in
l

workers

countries the

expressed, excessive change

example,

protectionist following scale practicable in

measures aimec at to that

disruptions

from unregulated of in

strucLura the

comparable

inter-war:

(mass unemployment on a period is not politicatty a deep feeling since it of insecurity

the

industrialthe

countries); way forwarc,

a number of that

camps about

has become as an

evident

capitalist social

growth

can no ronger the future.

be regarded

attai-nable

strar_egy for

tf,

what

effects

can be expected reorganisation acvances in

given

that

the

generar of

tendency

towards production

world-wide

and decentralisation the foreseeable

capitalist

makes further

future?

41

As far clear: to

as the

developing terms

countries of the

are conccrncd jolrs

one thng in in

is the

inurtcdiately' l-ast ten

measured in years this in

number of ariented

created

fifteen

world-market

proouction possess the

the

developing t9 reduce

countries,

pr-ocoss sirnply does no! underemplo),'rnent in. thc the prevailing in_!Li-s wages

potcntial

unemplolrmcnt or part - whatever the unemployment and relocation

develop-j.ng coun_trqi__fn*yle]s_sr - tbSgg5_Sg_lygr-g_e.Ly_r and conditions of ::.ationalisat_ro!

created

combi.ned prAcesq

in _quantitative is, t-erms, -t_heinduglri-g=l co*untries i!_the empfo)rmen! wher:__set ag-ainFt total bv no means negligible Economic Order' in which A 'New fnternational industriai countries. in this process plays in the a key role will not reduce of the the existing of wide the population material positions majority

disparities in the

industrial

and developinq

countries. potential developng peeulari.ties concentration fact that (the at is so-ca11ed industry of countries on the of the

However, it manufacturing

is

highly

improbable

that

the

relocation the

industry will 'Local', in equal measure. and cost production a larqe in

be realised historically

by aII

explicable r:egional to the orient.ed

one hand, relocated present

advantages on the

based on the have led world-marke't developing

other,

prE>or-_L-lon of a small

ccncentrated threshold Singapore, standard natively of its or

numbglr of

countries

newJ-y industrialising South Korea, provided in the

countries, Brazil by the

such as Hong Kong, the alterthe

Taiwan,

reference converse for the

, l'exico) . Compared with (or industrial countries of the developing of the

majority

countries) of has

possibilities

massive

subsidisation

valorisation

and reproduction capital by non-capitalist modes of production 'threshold'countries. either ceased or vrill soon do so in these Industrial increased) reproduction regard for (cf. of wages will in line of the of necessity this have to in increase order social labour It to (or aready development guarantee scale, with

have the due labourpossible g

with

labour-po\der con+-ribution

on an aggregate made by domestic

and external is therefore

reserves to

Singapore's

Malaysian patn

hinterland).

conceive

geuntries

_two afternative v/ithin the

Elther,

for the valoristructurat condltions ensemble of relevant - in r.vhich wage-levels as only one, if figure sation of eapital - develops in such a way that industrial production element important, the

42

remains (cf.

competitive

despite

risi-nE in

and possibly to to the

Hong Kong and singapore will of then their industry prodr.rction where

relation

relatively hgh rvlges philippines). These a progressive the case 6f of the j;rrpor:tmost to

countrj-es extension substitution populous

have the opportunity since - in (with the and opEC countries) encountered countries

undertake

contrast the limits

possible

exception to

developing swiftly

industrj_al local with in a whose trade dclnand

expanslon. are in peripherar rel-atively they

capitalist market, secure

because of the limited - they wirr be faced industriat countrj-es

large

namely the

can possibll'

and industrialisation possible if they of

a growing share. A progressive capltalisartion rthreshol-d' of these countries will therefore be jn compensating for increasing can succeed costs of and other the to quality costs, hy increasing and traj ning, with the mobil ising right
i rnr . , rm r r zp "rl . - l v r n gi n f r a s t r u c t u r e

reproduction
nrnrfrrn{-rzi.l-rr

labour-power,

l h ! r tf P r \ r u u u L r v - l - t y n ) r r:q n ru ru r

inter-industry specialisation, times. remains working or, not of This is

l-inks,

raising

of

output

suitable at to the

and shiftng aII on the

new areas of assumption that

production that access

crucial

markets

unhindered conditions

and on condition continue to

early-capitalist the bulk of the

dominate

and popufation.

living

and this applies to all_ devel_oping countries and rthreshol-d' countries, increasing costs of reproduction labour-power and wages (not to mention political instability etc.) merely the worsen the absence of conditj-ons for the valorj-sation of capital In because of will particular the can is natural compensatory mechanisms and policies. threshold site or has been reached at least industrial at such a situat.ion,

alternatlvely,

wil-I the

once a critical migrate site. entire to This

capital that

another form of

cease expanding

industrial particular

vaEabondage which between the of for capital

extends

across

globe,

and in

developing

countries, soir of

be compared to exhausted resources, powers of to that it

shifting is left

curtivation: fallow or

as soon as the and the

(soclal)

by the

valorisation

despoliation

regeneration

non-capitalist rol-e of

even socj-alist in the the

reassume the the last

victim of

through the vegetative - possibty modes of production - in the desperate hope future vital of the forccs wi]I not harre morfes of
of

extraction damaged the

systemts recovery

irreversibly
hr^1"^+ i ^PruLluuLJ-uIl

future

non-capltalist
cynical

-* I d.Ilur

i r rf

n L -Lor: z r ro r v p q q qr!rJ ,

A v v ^ mL L lh u q a- vr na .

i a

t - r r r + ,l t e . -

acceptance

famine,

-n accordance

vrith

the

maxim:

'Let

nature

take

its

course!'

43

In addit-i-on to these for j.ndustrialisatj-on countries, shoufd not


fttfttra,

two alternatives,

which

at most al-Iow the

potential

the

growth

on capitalist terms for a small number of threshold rpol j Lica.]- instabilityr j.n.tlrg Third trrlorld of This
nnlrr

be forgotten.
i f fr inil-irllrr

ca::rj,es with
avnrocend in

it

the
{-ho

promise
af

of

a better
h+i-

\vr rr nr u

fnm

{.amnnrarlr

imperialistqf recEr-on.
a 1 t l

class

alliances

or

revolts

lacking

an explicit

political

The revolutions are ways of devcloping countries


nrnzlrra+ jan

in

China, the Iess

Cuba and elsewhere material than poverty

have shown that of the population for

there of a

ovcrcotning countr::/ in

a generatiou. of

Clearly,

thedevefopino of

the
r-.1

mere destruction
,166in:l-inn l-ncaf

peripheral-capitalist
r^ri{.1-. #ha nrr{-i r'l :n

relations
#amnn.

Pro(lucrr-()n ano o-...-.^withdrawal- frorn the


nrnArrn{irza fn-naS in

-ror

--...r.-rary

capital-ist
themSelVCS

world
nl
v l l

market- constitute
rr
l

sigrnif icarrt
whpthef theSe

#ho
]

frrl.rrrp
. l l

1-.,1n qaw
f

social-ist the initial against


a h raol r r c rcr a c lon v ur

transitional phase of escape


n r r n r 6 r q un r r v vrivi r r#i ra

- gven r,rassmobilisation societies economic


+L,a Lrrg

that

they

have passed through a long term defence

can effect

or

frorn the
t.'.i+Li* waLlrrll

and mj,fitary
: icJrw u r rr u l ^ra '

threat
c.?-+^1, yrLs|n

and ideofogical
t.,-i+L, wILll i Lr r{-c ac q5 \zf )LL

a a n ri ri uul

seemingly unbroken potential to make increasing and ideologies.

for

raising

productivity, of

without

having

use o1l capitalist

princi.ples

social

organisation

As far

as the

traditj.onaf

industrial

counlries of the

are

concerned, the

capital ferv

wiJ-l- push ahead viith years on two main lechnol-ogies, po\{er intended - will replace second is relocation the

a restructuring

economy in

next

fronts. The first is the development of energy saving which - possibly after a period of forced use of nuclear to the diversify profligate of the and allow a re-expansion of of energy productiotl and i96Os. The and

technologies

the'l95Os

progress

above all

under

comblned pfocesseg._of r?tion_a_lisatio-n of the 'electronic revolutiont the rubric with the main airn being the as possible regardl-ess of outside of

andrsubcontracting'of of as large expensive of production a percentage of

al-l knds, of the the

retention the

structure

the work-force 'welfare stater,

any shifts caL.iLalism.

back to

traditional-

centres

industrial

t "

Cf. Monthly Reviej.r of February Magdoff ('Iran: The New Crisis Havens ('Peru: Economic Crises

1979 with contributions from Paul Sweezy, Har:ry of American Hegemony') and James Petras, A.F,ugene and Class Conf:ontation') .

The rate countries.

at

which

labour

is

discharged of keeping

will::emain

high

in

the

industr-ial

The difficulties the large and the

because of unemployed and will stress

divergencies of mean serious

une.mpfg)rynent in check Er.rctiolgl between the skilIs of those renderecl new vacancies wil] be considera_trle and psychicaJ. physical

requirements

inevitably on those

additional

affected.

At

l-east

three

differing.responses

can be detected The trade-union

affected the (typically

by these. developments. in the the male,

from -!hose mos!. organised hard co::e of countries voting,

work-force

technologicall-y mobire, aspirant,

most advanced industrial social-democratic

middle-aged which

skilled

characterised the

productivity-rinked that additionalsituated to their in most trade

advocates a continuation of the policies boom - i.e. free trade externarly and - in the expectation wage increases internally the revenue at the provlded of the by unequal- exchange internationalthe ('Modell material-monetary Deutschland'). countries the accruing to top

worker)

a country appropriated of at least

hierarchy

can be Those and in those

secure

and increase strata the

wellbeing

own social unions in

organised branches cally

other

industrial

severely countries

affected wiIl

by structuraJ-

change in

technologiin the

leading

demancl protectionist improvements countries in in in

measures the

industrial oriented pressures

countries j-ndustry of of

and social the

world-market to minimise the

developing

order

relocation unorgansed

and rationalisation

their

ov/n countries. temporary wj_1l seek v/ays

The so-called immigrant to of

workers,

workers, principally 'marginal so-cal1ed groupst as possible from

women, youth, of all kinds,

devel-op as much autonomy living

capitat

and create of total

commodification effect

and working which run counter to - which may have a political of to depression, the thesis itself but that . in the the only the

the

process

and economj-c stabilising long term could is present j-ndispen-

i-n periods not to

a danger sable,

capital-relation

but

rel_ation

I'lithin attempt by the

the to

context plan

of

the

precarious change,

options i.e. to

open to meet the

them,

states-

will

structural the

necess-r-ties

imposed

system which absence of the

rnarket

itself

cannot

temporary to increase

individual

profitability competitiveness the

fulfil because of the - principally measures of their of respectj-ve labour-power:

int-ernational and to reduce

nationar

sites,

reproductj_on

costs

45

standardisation (mass transit), of mass consumptic.rn and of services rf rexible' polj-cj-es, and policy rabour-market on the family and social guestions, subsidies for technological development etc. Also central to convince is the attempt the bulk of the population not only of the Inecessity of structural chancie' but also of the alleged necessity to 'no longer affordabler do without social services and other social reforms. unleashing deficiencies in the In this the of oil corrtext, the alleged malice of the sheikhs for the in structural crisis r-ho n=ni{-:lic+' terms: provides a welcome alibi

System. A recent

r:eport expresSed this

following

The energy crisis will emerge more prominently as the central problem of the 19BOs. The absolute necessity to establish new structures in the energy sector could in fact. confirm prognoses of a new industrial revol-ution, an intensification of investnrent and and hence growth. The time for utopian discusson is finally, enterprise and past. It is action which is ncw required. irrevocably, Hovrever, this also means that after many years of consumer oriented policies we must reset the points of economic policy so that the necessary massive finances needed for the tructural and financial reshaping usinq f;qe enterprise methods are made available. We have lived long enough beyond our means.

As

yet

it

is

not

politically this change based

decided takes

in the

the form

individual of a returl

j-ndustrial to a.nledilgyiel

countries model-s of

whether

accumulation (with increased

on_ th_e drastic to jln

cut!ing-bqc.k crj-ses) or of

gF_.mess gona modifi_ed mass of LeJ_ival-

sumptj-on of of the the

susceptibility

model

o_f accumulation_base-d_clr period (with through production). in possible the state It

exp.ansio*n

_consqrnp.Lion

pcst-war

increased and

share by but it

social receipts the be world

consumption from

mediated of

financed either: itself,

taxing should i-s to the and

relocations systcm the which do not, sake

may be

capitalist that for

succeed of other, in

reconstituting alternative of

hoped

perspectives, (quasi-) precedent, stagnation

international structural

tensions change

arise against

a period al-l

previous

discharge

themsel_ves

explosi-vely.

l a

Walter Slotosch, De.r Beginn einer Talfahrt, in: Sddeutsche Zeitung, 12-13 January 1 9 8 O p . 3 3 . c f . the quite different , analyses ln Le Monde diplomatique, December 1979 and January 1 9 8 o .

46

Additional

references

on

accumula+-i.on on a world

scale

and

reprodu.tion

of

labour

Elmar

AIlvatcr,

Jurgen

Ilof fmann,

tliIIi

Scn:nrler, Vom Wirtschaftswunder

zur

Wirtschaits-

Berlin 1979 !4t9, Samir A'rin, L'AccrlmulaLi.on sanir Ami". t;-l?vel*i"t. Samir Amin, La structure
,o cvel^nn^pr'f

" u

L'chelLe mondialr-., i \.Yv . P"ti. r i"' . t r l ' 19i3 I classe


inqal

Paris

i970
contemporai.n, L'_hgrnmeet Lrhonlr ct

dc

du systmc
Ft. 'la oresf

inprialiste
ior nafiorralr

1a socit, Nos 45-46 (1911), p. 69-87


so.-ir--;;l;-l
r r r ! Y g !

Nos 51-54 (1919), p. 3-48 Pcrry Andersoji, Lin(,ages of the ,i;F.--"\'.l Arbet.soruD,ro gi;;?;l

-la

s . o ' :i t ,

Absolutlst State, ""*s.."r'l"1"oi.


in a MaterjaljSt

London 1974 srrhsisfcnznrdnkton i"a-)


l , v v ' ' J L J | '

und

$31gl-gf:-g_L,
.lairrrq Ranaii

Saarbrck en 19 79
l'4^rieS Of Production COnConton rrf
v r

I.tiqt-nrv.
l r r J L v ! 1 ,

Paris 1976 cuy Bois, Crise du fodalisme, Against te Neo-Malthusian Orthodoxy, No 79o(1978) p.60-69 cuy Bois, !gsl_3_Ilergn!, Fernand Braudel, C-ivi j-s_.tiol Inat.riel1e, conomie- et_ capitalilme | .XV--XVIIT.-. s,i'jcle , Paris 1979 3 vols., Robert Brenner, Agrarj-an Class Structure and Economic Development in Pre-indus.Lrial 3":!.'!_lr'-e:Sn.t, No 70 (1976), p. 30-75 Europe, John FosLer, Andrc Gundcr nro r:rrnrlor nrlva crrnrlar London 1974 Cambridge, Paris 1979 |!q:ffSg@, rrrnrz, world Accumulation 1,492-1"789, I'lew york, London 1978 rr:n: , Dcpendent Accnrnul zrtion and UliderdeveLoprflent, London 1978 Harriet Friedm;rnn, World Market, State and Family Farm: Social Bases of Household Productjon in Lhe Era of Wage Labour, Conrparatlve St.udies jn Socjcty and Hjstory, Vol. 20, No 4 (1978), p. 545-!86 Aqricultural Involution, Clj.fford Geertz, Berkeley 1963 Cr:nrr.rr Hcinsnhn. R"l f Kt l"* O i t a - S t " l r e r . t M! ernr sr cr h c n n r o o u k t i o n , ' Frarrklurt ' ! r lY ' 1979 f : .rnh:nnoc n Hr^cfnt-\v^ Mevnarar tr=y, Uneoual- lxchanc;er ManuscripL 1l)18/19 -1969 Hill, R.e.forma-tio.n. to fndus-trial Revolutjon, Christopher Harmondsworth \ h L - hr-a t l s r ^ l- . r o m F e u d a l i s m t o C a p i t a l . s m , D vav zrrr rJ n v H i l ^ h \/ L Jz r / r a. r\ r r L tvt ! London 19?6

=_-_._'-Frank,

CJ;ss

Stru,Jgle

and the

fndustrral

Re.,ol.ution,

_lrrs

(1954), reprinted Eric J. Hobsbawrn, The Crisis of the Seventeenth Celtury in: Trcvor Aston (ed,), Crisls i n E u r o p c , 1 5 6 - 0 - 1 6 C O ,L o g d r n 1 9 6 9 , p . 5 - 5 8 -1969 Eric J. Hobsbawm, ndustry and Emcjre-, Ha::mondsworth Eric J. Hobsbawm, ffion, London 1962 Eric J. Hobsbawrn, '.'heiq" of Capft"l i.975 , Iondon Frin.r H a l - r c l - r r r . m. F l r o r - r i c i q nf r-:nt-alisn Perspective, in Historical Socialist Re-volution, No 30 (1916) , p. 77-96 Eric J. Hobsbawm, Capitalisme et agriculture: siicle, Annales !S9, VoI. 33, No 3 (1978), z Les rformateurs p. 580-601 cossais au XVIIT-

Aldous Hu*GffiTiiZ-ne*
Peter Kriedte,

I"rlg,

1932,

1946

InCustrialisierung vor der Industrialisier.u-ng, Gttingen 1977 r.r,ar f rlnhonr-rrrah (ed.) , Feudallsmus, Bernd Michael Frankfur+:, Berlin, wien 1977 Emile Le Bris, Pierre-Philjppe R e y , M i c h e l S a m u e l , C a p . i t . a l j s J n e _n g r i e r , Paris 1976 Ernest Mandel, The S.econd Slump, London 197fl -1873 Karl Marx, Das- Kapital. Erster Band, 7861, Claude Meillassoux, Fenm.esr greniers et capitaux, Paris 1975 Georges Menahem, Les mutations Ce la de travail, L'homme et Ia socit,
Mnr]

Hars Medick,

Jrgen

Schlulnbohm,

famille et Nos.5I-54

les modes de reproductlon (1919), p.63-101

de

1a force

Mnrann - , - y . i n a l s , ? r , E l I n g e n i o , 3 ,v, ^ t l- s . , o L- a u l kaa b -a n a 1 9 7 8 H James O'Connor, Accu.mulation Crisis, Manuscript 1978 Carlo Poni, Archologie de fa fabrique, Annaes ESC, VoI. 27,

No 6

(1972),

p.
vo1

1475-

t496 Carl-o Poni, All'origine (1976), p. 444-497

de1 sistema di

fabrica,

Rivista

Storica

Ttaliana

BB

47

Reich, Phllipp Sonntag, Utz-Peter Pierre-Philippe Rey, Le transfert Lf homme et Ia Raphael Samtrel, rian Jrgen

!]!!9, iludith der_ Landr+j.rtsclraf t im RahJnen Sler*-lre.uen We]_twj-_rt.schaftsor-dnung, Saarbrcken 1978 Deter Senghaas, lnJeltwirtschaftsordnun.g u-nd Entwicklungs_politik, Frankf urt 1977 Kapitaljslische Dieter Senghaas (ed.), l,leitkonomie, Frankfurt 1979 Repfoduktion Eva Senghaas-Knobloch, der Arb_eitskraft in der Weltgesellschaft, 1?79 Frankfurt La produccivjt Kostas Vergopoulos, soclale du capltal dans I'agriculture familiale, Nos 45-46 (1977), p. 89-111 L r . h o r y n ee t 1 a s o c i t , Imnanuel l,lallerstein, The Modern Worl-d-Syslem, New York, London 1974 rmrnanuer v,larrerstein Paris 1979 , rhe _capitarist , cambridge, .worldImmanuel Wallerstej-n, Y a-t-il une crise du XVII'sicle?, Annales ESC, VoI. 34, No 1 (1979), p. 726-144 Imntanuel WaIIerstein,
M:nrrcnri nf 1O?Q

BriLain, t.hl*tbo Manuscript 1978 Schwef ringhaus, Funktionen_

Hans-Werner Hol-ub, Arbeit-Konsum-Rechnung, Kt,Ln 797'l dc surlravall de la paysannerie vers Ie caoit-alisme, soci..t, Nos 45-46 (1977) , p. 39-49 Workshop of the World: Steam Power and Hand Technology 1n m:d-VictoHislory Workshop Journal, No 3 (1971), p. 6-'72

De.v.eIop-me.nt: Tlreories,

P.e.search Designs,

and

Empj-rical

Me_asures, and Vtortd-

Immanuel [.]allerstein, William G. Martin, Torry Dicklnson, Household Structures P;ocesses, Production Manuscript 1979 Immanuel Wallerstein, The Sta.te in the Instj.tutional -Vortex o.f..t.he .Cap-ltalist. Econ.omy, Manuscritrrt 19BO Eric R. Wolf, Peasants, Englewood Cliffs, N.J., 7966

48

Appendix:

world

industrlal

product.ion

arrd. world. trade

(market

econom_es), 1948-1978

Figures mainly

for

worrd

industriat publlshed presented

production by the

and world those

trade into

are

drawn forn. the

from data

UN, ancl converted are which the

table to

The only
# r r r n i h ^ - h ^ i h +

concrusions
i r -l l + L ^

here

relate end of to

Lurrlfrry-puf.uL

^ ^ ! 1 1 E n e c- a {p ^1 t a l a s t- !

worl_d economy at rt is up to the other

the

196os/beginning conclusions

of

the

197os.

reader

formuface

which may reJ_ate to in


^^

aspects.

The units ur
nf anrrn+v.i

vrhich the often

data

are

pl:esented relate

are

countries to

and groupings However,

uuurrLrr-es, as most availabl_e data analysi-s demands that units these by other production

these units. categories be the

the

national to firms, .1

supplemented capitalist or modes of

more appropriate example,

key aspects states,

of

deve-oprnent (for

households,

and reproduction)

Table

1 shows the

average

annual

rates

of

growth

in

domestic

prcduct,

industrial countries

production and the

i948 and 1978 in fluctuations term trends.

for the traditiona.r industrial developing countries for 5-year periods between "real" percentage terms. short-term economic out where possible to revear medium-

and exports

have been ironed

The data of

in

Table

1 show

that

averag.e annual_ "real', varqe-added the qarket

rates for

of

qrowth

-domestic pr.oduct, industrialcountries mid-19gos to

industrial (an4 for

and exports high point

the rose mid-

economles

as a whole) in the

from the to

a historigcfu_q4rqqe

1960", rrd
the p_oint in decLine

"rb".qr+.rtry

f.lr
was_ not

bu"k. rh"_iuJnu.qr.r.uritut_i.ru _i-"trrr. -pprlu, p


the _only difference th.@ -reached qlrtif is that the tu_rning-

devergping

countrles:

growth-rates is less

pronounced.

'

since our main concern here is with the capitalist world economy the tables are concentrated on the market economies (industrial and devel-oping), and for the most part exclude the centra-ly ptanned economies for which comparable data is anyway often racking. The penetraLion of free market elements lnto the centrally planned economies and the partial re-integration of these economies into the c:apitalist worl-d division of labour are important, but not as yet of great quantitative significance in relatlon to world aggregates. The data for the industriar and developing (cont. overleaf)

49

It

is

dif ficult

to

give

these

graspable rapid

interpretation in the

"rea.l-" f igures as volumes - doubly US Dolfar good (oil)

an unambiguous, economically difficult in periods in the of price

depreciation

and marked ncreases (problem of

of the most important As a consequence the to the stated somewhat problematic structural

traded

deflating

prices).

conclus-i-ons drawn from Table features of figures which

1 should in

be confined are "reaI"

themselves

comparison of This diachronic character. analysls tables by a synchronic be supplemented j-n later nagnitudes will for a number oi signiflcance of less problematic of nominal figures the numerical accuracy sample years. Of course, both here and later, in of such isolated colLection). immediately tion other of our fit data should not be overestj-mated only the as the that proof picture, that bass for (problem of which further almost data can be exposiwiLhout Consequently, seen from the argument. into the is we take tables main trends the trends

The fact overall best

these to

globat which

exception

can be added many been deceived

indicators,

the

one has not

by statistical The following of the tables: the from

illusions conclusions can be formulated on the basis

specific

1.

Durlng

entire the

period industrial of the

under

consideratj-on, product of the

the

rates for

of

grolth

of exports products,

countries,

especially che 196Os for developing has since domestic

manufactured production. production (able in 1) ' the of

exceed those since

domestic beginning goods of

and industrial the

The same applies and export This sphere of of suggests that

manufactured

countries

worl-d economic industry, is

interdependency particutarly of confirmed

increased the

manufacturing opinion (exports

beginning

the 196Os. This of export ratj-os 17 and 18).

substantially as a percentage

by the

development (Tables

product)

has probably high degree of interdependency before the First existed only once before - in the years immediately pronounced was especlally export ratios world war.2 The increase A similarly
l{ote 1 (cont. ) the overall within countries between individual countrres cover up large differences groupings. Any analysis of the (uneven) development of capitalism must naturalLy some step in this direction in an dttempt to take a first consider such differ:ences: country grouiings and data are disaggregated lnto less aII-embracing of the tables are also provided for some inclividual counLries'
')T h l " hj.gh degree of world economic interdependency is accentuated !y the (ont. that fact overleaf)

50

in

the period'l

968-1974; after'l of this states

974 this that

one interpretation exhausted growth not capitalist steep of in the the rise its role

the

increase came to a standstill. "export safety-valve" had

only worfd in

as an important- stabilising element in economic "national-" for individual economies but also for the economy as a whoIe. ratios in the Another reading interprets the period 1968-1974 as an expresslon of capitalist production

export years

forced initial

transnationalof the

reorganisation depressi,on.

2. are

The rates clearly

of

growth since the the 'l

of

domestic

prod.uct and industr:ial of the 197os in the

production developing since

higher than in of in

the

beginning

countries the

industrialised

countries.

Correspondingty,

beginning

val-ue-added count-ries

the

97Os the .s,lrarg of doJnest.ic pr.odug.t and industral market economies accounted. for by the developin incre+se (table slight.ly, 3) .3 .after. !]Lo decades in whi,ch_it

begi-ns to fallen

had sligh.tly

3.

The developing b_eganto rise sub-group_ of in their

countries' again gfter devel-oping share of

share of the

worl-d exports,

whch

fell

after

1948, the

eaf1.y 197.os. The. -same app-ri.es for counlries y_ithou! opEC - although the exports is l-ess pronounced. (Tab1e 4). primarv prc.ducts compleindustrial countries w.o{lg

increase

world the

menLary fi-gures 4.

apply

for

The devglopinq fuels,

coun.!:'ies.' which..had

share

eTports..o.f

excluding until

th.e early

197Os,.is share of

f_rom t_he end_-o t4.e Second lJ.orld War be-ginniqg to...incre.e_s-e .1gh_tly once.mgre, s i exports in of fuel-s has virtually increased increases) rise 1974 based on OPEC prlce

f.alfen

v/hereas their continuousJ-y (Tabte 5) .


Note 2 (cont.)

world

(with

a steep

a significant and probably growing percentage of world trade is traffic betweerr the various establishments of one and the same company in different countries. Cf. UN, Tr.arynatio.tal Corporations in World Development, A Re-e*am:nation, New york 1978, p. 43 and Tables 3, III-16, III-I7. " Especially in the developing countries hlgh rates of growth are prinarily expression of the accelerated inclusion of "tzaditional" activities into the market. They indicate a more rapld growth of commodity productlon, (or at least not necessarily not to the same extent) production per se.

51

5.

Since

the in

mid.-l96Os the d.eveloping countries.

rate

r r f g r o t . r t l - ro f

exports

of

manufactured than in

products

the

countries As a result,

has been cl-early the ehare of

greater

the industrial

the developiry

countriesinthewor1dexportsofmanufacture{ro@ doubl.cd since r'irtually a lonq period of stasnation, 196Os fqory t down of share in per cent to around B p,er cent (Tables the but by commodity groups exports 196Os in the began to nearly all shows that slowly major is the

the

end of

the

6 and 8).= developing steadily

A breakcountries' towards fhi"

exports world the

increase

the end of

commodlty grorps.5 particularly with

growth and/or in textiles of increase (inc]uding

share of

worlcl exports Oth"t

noticeable high rates

and garments.6 are office

commodity classes

machj-nery and telecommunications components) and household goods

equipment (including

electronic

of ,hu d.a. from the UN and GATT orr which this is based only reveal the lower limit share as they do not completely record exports fron Pree the developing countries' production Zones: "In Mexico, for instance, such unreported exports amounted in nearly 5 per cent of manui.e. billion dollars, recent years to some one-and-a-half Assessment of this trade is factured goods exported by alI developing countries. GATT, Nelworks gf and no attempt was made to include it." particularly difficult World Trade by Areas and Commodity Classes 1955-1916, Geneva I97B' p. 6f. For of which 3325 vrent example, in 1911 Mexico's exports were given as g 4O7I milljon, 2 1 4 0 o f t h i s b e i n g t o t h e U S : i n t h e s a m e y e a r t h e O E C Dc o u n t r i e s countries, to OECD alone recorded imports from Mexico of $ 5B4O mil-llon (US - 4689) In 19'76l4exico's OECD reported imports reported exports of marrufactured goods were g lL56 million: 1977, New York Tra.de Statistics were 2303 (US - 1944). UN, Yearbook of International (Cf. of Foreign Trade,. Seriej; C, 1976 and 191'7 editlons. 1978; OECD, Statjstics Table 9. ) The drop in Lhe recession year 7915 shows that world market is not only highly fragmented but also developing countries lresmnsive l-o f luctuations) . production in oriented very unstable in addition

'

the Arong the major commodity groups of manufactured products garments constituted as far as share of value in the import from the developing countries nost important (EEC, USA, Canada, Japan) was concountries domestic market in the industrialised cerned - garments comprises SITC 61, 83-85. In 1974/15 this share was 7.2 per cent compared with 1.9 per cent in 1968; the corresponding shares from imports from other industrial countries were, 1914/75 2.6 per cent, 1968 O.7 per cent; from centrally planned economies, lg74/15 1.1 per cent, 1968 O.2 per cent; thus, as a whole the imports rose from around 2.9 per cent in 1968 to 11.O per cent share of "external" "external" exports rose from 2.8 per cent in 1968 to 4.1 per cent in 1974/75, whilst (forelgn trade between the nemed lndustrial countri.es is excluded). See Ln 1974/75 1979' New York Trade and Development Sta.tistics Handbook of lnternational UiICTAD, fall in employment in the garment industry drastic 1979, fable 2.1-. itre corresponding imporL restristricter has produced progressively countries {n the named industrial imports of garments a brake on the rislng succeeded in putting ctlons which first thelr points of redistributed from developing countries In 197'7, and particularly share in orfgln. - For manufactured product:s as a whole, the developing countries' amounted to around 9 per cen'. in 1978; this countries the imports of the industrialsales of manufactured products ln industrial represented 3 per cent of the total Trade 19'7A/79, Geneva 1979, p- B. countries. See GATT, International

52

consumer el-ectronics, ln in not contrast the export to

photographic

equipment the

and watches) cextiles

(TabIe

g).

a commonly held of manufactured the last (1955) to over cent

view, products

share of

and garments has from

from developing but has in fact

countries fallen

increased

twenty

years

around 40 per

around 30 per in this

cent in

by the mid-197os: the share accounted around commodity (from of

marked increases for by mcchanical cent to 10 per cl-asses

harre occurred engineering 30 per

period

and elect::ical cent). (Table often In terms

engineering of the

around

vari-ety

involved,

exports

fronr developing 12). (but rt not

countries should always)

have become not ho\^/ever be of in goods order to form consist

noticeabry forgotten which

more dive::sified that such exports

have already through soldering,

been -mported assembly, small

j-n semi-manufactured of further and packing. countries. In

proceed sewing, ted

a few simple

steps testing

manufacturing Exports the

such as are concentra-

on a relatively of all-

nurnber of of

197Os arouncl accounted

two-thirds for

t.he exports countries

manufactured

goods were

by a mere seven 7).

and half

by sor.rth Korea,

Taivran and

Hong Kong (Table perlod

6, in

In

the

under

consj-deration primary leap in

significance

compared with even the

manufactured products have gained products j-n the developing receipts from exports of mincral 1955 significantry.

countries' oil in primary

exportsi not prodllcts for

1974 did

change this fuels of cent

fact

whereas in products

(excluding

and including

non-ferrous

meta]s) for cenc

accounted 8 per cent,

67 per

exports

and manufactured 25 per this cent

by 1978 the rf fuels countries exporters almost

shares are in left the

were around out of

and 22 per the

respectively. developing rard materi-al products

account

means that excluslvely export

have shifted

from being in

almost their

pure

195Os to significance

a position

where manufactured trade

are of

equal

( T a b l e s 1 0 a n d 11) . 7. little almost go to trade the of At first in its glance basic quarters the regional over

structure the just past of

of

world

trade

has changecl exampre, still world betweer

outline of the

thirty

years.

For

three the

exports

t.he developing around

countries a half of

industrial

countries:

as before,

comprj-ses trade the

between the

industrial-

countries,

and trade for

members of world trade.

European Community on its examinatlon it as a percent-age of

own accounts

one fifth between 1948

On closer

can be seen that w _ 9 r . 1 -e l p o r t s d

export.s

industrial

countries

r_oge betweqn

53

until

the beginnj-nq of fell

the

1?7Os (41 per

cent

to

56 per part

cent this

in

1972),

and then reflects oil

back aga_in (48 per _cent in. 19.78). In on one hand the increased earnings of the corresponding rise in the expcrt the of other,

development for of products

OPEC count-ries

and the

manufactured in

to tl:e OPEC countries, nanufactures from other

a.nd on the devloping

increase (Tables

exports 16).

countries

13 to

8.

The volume

of_emplolrment

in

manufactuing

j-nd.gstry

gxpand.ed f_aster

in the devel-opin-g_count::ies beginnlng of increased the

qou_+.tri-gs sin.c_e the !4an in.th-e. in9ustrial has 1 9 5 O s ; s i n c . e _ t . h _ ee . n d o . f t h e 1 9 6 O s _t h i s . d i . f f g r e n c e The average in the annual rates of growth of emplolm,ent last the a the econcmies

enormously.

in manufacturing thirty years

industry

developing cent cent

countries

o\/er the

have been between +4 per between +3 per

industrj-al tendency to volume of

countries fall-.

and +6 per cent; in and -2 per cent ' with 1974/75 recession, in the market

However, even during manufacturing (Table 19) .

the

empJ-oyment in rose

industry

as a whole stilf

Summary: The most that a turning-point

general

world

aggregates in the

show quite

unmistakeably economy at the "oll crisis"). a.bove. percentage substantiai doubling

was reached of the proof not

capitalist

world the

end of the'l96Os/beginning The most notable items of

197os (i.e. this thesis

before

for

have been cited levels reversal is for of or the

What are fundamental shares with acceleration in the their of

are

so much the but

absolute the

slight certain world

changes, trends.

rather

Of central exports decade.

importance accounted

share of

manufactured in the last

by the

developing

countries

54

Tables:

World

industrial

production

and world

trade

(market

economies) ,

1948-19j8

Notes

Exp]-anation Additiona]

for

the

tables

is

kept

to

the minimum necessary.

in the sources. The country groupings usually fotlow the UN practice, i.e. = Europe excud-ng Eatern Europe, Canada, USA, Industralcountries Japan, Austral_J_a, New Zealand, Israel, South Afric planned economies = Eastern Europe, China, lulongolia, North Centrally Korea, Vietnam = all other countries Developing countries rSIC = Industrial Standard Industrial Classlfication Activities, Rev. 2 (1r968) srrc = standard rnternational Trade crassification, of All Economic

details

can be found

Rev. 1 (1961)

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Regional matrix cestination Total

(srrc o-9) l91B

l--.*:+:r-315:lu'
dorld Industrial Developing OPEC Centrally Industrial USA Japan EEC (Nine ) (includinq Other countries countries planned countries excl. economies

i "n

world WorIC I(l DCexcI OPEC CPE

exports SITC O-9 -- 1OO IndusLrial countries USA Jap.rn EEC(9) Oth

100
OPEC

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34 7 3
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( 5_L'I'c o - 4 )

L9// rC DCexcI OPEC

Worl CPE

exports

SITC

O-4

1OO

destination

egion 'orld

World

fndustrial countries USA Japan EEC(9) OLher 15


1 1

100
countries countries planned excl. economies OPEC

72 29
I J

15
4

35
I I

t 1 t t

Industrial Developing OPEC Centrally Industrial USA Japan EEC (Nine ) (including Other

37
t>

^
7

3 5 T

34 9 ( 3)
1 )

26

7 1

1 o o 0 o
1 0

o 0 o (o)
1

5 II )

2 1

counl-ries

5 o
L

2 o
4 1

. o
1

2 .
0

2 o
11

2 o
2

W.cermany)

(3)
9

(o)
1

(o)
0

(o) 3

(o) 2

(2) 4

(o) t

Ex

-----SqSl of origin

ed onfr f

od destination

lqTTn

q-Q

977
IC
oq

Wor
OPEC CPE

eqion

l.lorld

DCexcl
1 f

Industrial countri-es USA Japan EEC(9) Other

^lor1d Industrial countries Developing countries excl. OPEC OPEC CenLrally planned economies Industrial
UJA

100 B3 B o

10

10

12
9
t

32
1 I

57
J

13
Z

9
I

4
U

o 2

o t
2

o o
C

o 6
1 2 ( 1 ) 1

29 2 o
I

t7 1 o
1

countries

Japan EEC (Nine) (including Other

I2 t2 45
w.cermany)
/ 10

15
BuI_letin of Statist
Tables b

7 3 6 4 33 5 ( 1 4 ) ( 2 ) 11 2

2 4 ( 2 ) I

. 3 3 ( 1 ) 4

1 1

0 2 1 ( o ) ( 8 ) 0 5

4 1 9 ( 4 ) 2
o

Sources: UN, Monthly author ' s Excludes trade E x c l u d e s trade

Trade,

Atlnual: calculations Asian East

c s , 2 / 1 9 7 9 , 5 / 1 9 ? 9 , 6 / L 9 7 9 ; O E C D ,S t a t i s t i c s rti Countries (Series B), 2/I918;


economj_es

between between

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Table

19

Arrorff:rrnrral

r:foc nf dr^!rfh ^f empioi'rnent in manufacturing lndustry in the market e c o n o m i e s : 1 9 4 8 - 1 9 5 3 , i 9 5 3 - 1 9 5 8 , 1 9 5 8 - 1 9 6 3 , 1 9 6 3 - 1 9 6 8 , 1 9 6 8 - t9 7 3 , 1 9 1 3 - 1 9 i 1

in

per

cent

948-1953
arket economies countrie
na nnrrnr r i a

1953-i958

1958-1963 1963-7968 i96B-1973


J . l .

t973-r9'71

2.2 2.6 r.6


Yearbook,
1 A

2.o
1 . 1

? a

o.9
4-4 ations

-F

Induscriul
nor;al nni

4.8
1968, I9"lO ,

4 1 ,

3.3
eCj-t-ions; author's

5.8
calcuf

Source:
+

UN,

Statistical

I97B

1 9 73 - r 9 1 6

J
t

"l

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