Christopher Candland and Rudra Sil
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780199241149
- eISBN:
- 9780191598920
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199241147.003.0001
- Subject:
- Political Science, Comparative Politics
The increasingly rapid transnational movement of capital, commodities, services, information, and technology force labour institutions everywhere to respond to new challenges and pressures. This is ...
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The increasingly rapid transnational movement of capital, commodities, services, information, and technology force labour institutions everywhere to respond to new challenges and pressures. This is evident in the effects of structural adjustment on political unionism in countries such as India and Mexico, in the shifts in employment practices and labour processes accompanying the privatization of state‐owned enterprises in post‐communist Europe and in China, and even in unanticipated shifts in industrial relations in Japan. This introductory chapter sets the stage for the rest of the volume by considering how the analysis of recent changes in industrial relations under conditions of economic transformation also serves to illuminate the social forces that frequently influence the politics of economic reform while helping to more effectively bridge the fields of comparative industrial relations and political economy. The chapter also emphasizes how the comparison of the changing experiences of workers and labour institutions in late‐industrializing and post‐socialist settings can be employed to systematically explore the meaning and limits of the currently fashionable concept of “globalization” in settings with different historical inheritances and institutional structures. Four specific points are highlighted in terms of the distinctiveness of the studies collected here. First, by comparing post‐socialist and late‐industrializing countries within a framework that combines industrial relations and political economy, this volume goes beyond the experiences of advanced industrial economies. Second, this volume elaborates the various historical process and social structures that shaped the distinctive formal and informal institutional arrangements designed to manage the complex relationships between labour, management, and the state, in very different kinds of economies. Third, in contrast to those comparative studies of industrial relations that ignore external effects, it explores how transformations in the global economy have affected existing institutions related to labour‐management relations while posing certain common challenges and opportunities for key economic factors in each country. Finally, in contrast to those who view “globalization” as a dominant force leading to the erosion of distinctive national economic institutions, this study focuses on labour institutions in order to detail how historical legacies and external constraints and opportunities are incorporated into distinctive strategies employed by labour and by other economic factors as they negotiate new pacts and reconsider existing institutional arrangements.Less
The increasingly rapid transnational movement of capital, commodities, services, information, and technology force labour institutions everywhere to respond to new challenges and pressures. This is evident in the effects of structural adjustment on political unionism in countries such as India and Mexico, in the shifts in employment practices and labour processes accompanying the privatization of state‐owned enterprises in post‐communist Europe and in China, and even in unanticipated shifts in industrial relations in Japan. This introductory chapter sets the stage for the rest of the volume by considering how the analysis of recent changes in industrial relations under conditions of economic transformation also serves to illuminate the social forces that frequently influence the politics of economic reform while helping to more effectively bridge the fields of comparative industrial relations and political economy. The chapter also emphasizes how the comparison of the changing experiences of workers and labour institutions in late‐industrializing and post‐socialist settings can be employed to systematically explore the meaning and limits of the currently fashionable concept of “globalization” in settings with different historical inheritances and institutional structures. Four specific points are highlighted in terms of the distinctiveness of the studies collected here. First, by comparing post‐socialist and late‐industrializing countries within a framework that combines industrial relations and political economy, this volume goes beyond the experiences of advanced industrial economies. Second, this volume elaborates the various historical process and social structures that shaped the distinctive formal and informal institutional arrangements designed to manage the complex relationships between labour, management, and the state, in very different kinds of economies. Third, in contrast to those comparative studies of industrial relations that ignore external effects, it explores how transformations in the global economy have affected existing institutions related to labour‐management relations while posing certain common challenges and opportunities for key economic factors in each country. Finally, in contrast to those who view “globalization” as a dominant force leading to the erosion of distinctive national economic institutions, this study focuses on labour institutions in order to detail how historical legacies and external constraints and opportunities are incorporated into distinctive strategies employed by labour and by other economic factors as they negotiate new pacts and reconsider existing institutional arrangements.
Steven A. Bank
- Published in print:
- 2010
- Published Online:
- May 2010
- ISBN:
- 9780195326192
- eISBN:
- 9780199775811
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195326192.001.0001
- Subject:
- Law, Legal History
The U.S. corporate income tax — and in particular the double taxation of corporate income — has long been one of the most criticized and stubbornly persistent aspects of the federal revenue system. ...
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The U.S. corporate income tax — and in particular the double taxation of corporate income — has long been one of the most criticized and stubbornly persistent aspects of the federal revenue system. Unlike in most other industrialized countries, corporate income is taxed twice, first at the entity level and again at the shareholder level when distributed as a dividend. The conventional wisdom has been that this double taxation was part of the system's original design over a century ago and has survived despite withering opposition from business interests. In both cases, history tells another tale. Double taxation as it is known today did not appear until several decades after the corporate income tax was first adopted. Moreover, it was embraced by corporate representatives at the outset and in subsequent years businesses have been far more ambivalent about its existence than is popularly assumed. From Sword to Shield: The Transformation of the Corporate Income Tax, 1861 to Present is the first historical account of the evolution of the corporate income tax in America. It explains the origins of corporate income tax and the political, economic, and social forces that transformed it from a sword against evasion of the individual income tax to a shield against government and shareholder interference with the management of corporate funds.Less
The U.S. corporate income tax — and in particular the double taxation of corporate income — has long been one of the most criticized and stubbornly persistent aspects of the federal revenue system. Unlike in most other industrialized countries, corporate income is taxed twice, first at the entity level and again at the shareholder level when distributed as a dividend. The conventional wisdom has been that this double taxation was part of the system's original design over a century ago and has survived despite withering opposition from business interests. In both cases, history tells another tale. Double taxation as it is known today did not appear until several decades after the corporate income tax was first adopted. Moreover, it was embraced by corporate representatives at the outset and in subsequent years businesses have been far more ambivalent about its existence than is popularly assumed. From Sword to Shield: The Transformation of the Corporate Income Tax, 1861 to Present is the first historical account of the evolution of the corporate income tax in America. It explains the origins of corporate income tax and the political, economic, and social forces that transformed it from a sword against evasion of the individual income tax to a shield against government and shareholder interference with the management of corporate funds.
Neil Gilbert
- Published in print:
- 2002
- Published Online:
- April 2004
- ISBN:
- 9780195140743
- eISBN:
- 9780199834921
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195140745.003.0002
- Subject:
- Political Science, Comparative Politics
In the first part of the chapter, views are discussed on the changing arrangements for social protection that have occurred in the last decade of the twentieth century in many, if not all, of the ...
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In the first part of the chapter, views are discussed on the changing arrangements for social protection that have occurred in the last decade of the twentieth century in many, if not all, of the industrialized nations. Some see these changes as a marginal adjustment in the borders of the welfare state, while others perceive the changing landscape of industrialized welfare states as the embodiment of major revisions in the principles and philosophy of social protection. Most welfare state analysts acknowledge that the reforms are spurred by the need for greater labour force adaptability and productivity in a global economy, by concerns on the erosion of individual responsibility, and by new institutional arrangements for social protection involving market competition. The last part of the chapter addresses the two main theories on how welfare states evolve – convergence under the pressures of broad impersonal structural forces, or divergence into distinct regimes responding to human interventions shaped by socio‐political factors.Less
In the first part of the chapter, views are discussed on the changing arrangements for social protection that have occurred in the last decade of the twentieth century in many, if not all, of the industrialized nations. Some see these changes as a marginal adjustment in the borders of the welfare state, while others perceive the changing landscape of industrialized welfare states as the embodiment of major revisions in the principles and philosophy of social protection. Most welfare state analysts acknowledge that the reforms are spurred by the need for greater labour force adaptability and productivity in a global economy, by concerns on the erosion of individual responsibility, and by new institutional arrangements for social protection involving market competition. The last part of the chapter addresses the two main theories on how welfare states evolve – convergence under the pressures of broad impersonal structural forces, or divergence into distinct regimes responding to human interventions shaped by socio‐political factors.
Leah F. Vosko
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199574810
- eISBN:
- 9780191722080
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199574810.003.0007
- Subject:
- Business and Management, Political Economy, HRM / IR
This chapter examines responses to the destabilization of the employment relationship and labour market insecurities coming in its train. The regulation of principal focus is the ILO Recommendation ...
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This chapter examines responses to the destabilization of the employment relationship and labour market insecurities coming in its train. The regulation of principal focus is the ILO Recommendation on the Employment Relationship (2006), marking a shift from equal treatment to effective protection. The empirical focus is Industrialized Market Economy Countries experiencing a rise of self‐employment resembling paid employment, a subset of which was precarious, in the late 20th century. Two approaches to self‐employment are scrutinized: the approach advanced in Australia at the federal level, characterized by the promotion of independent contracting, and the approach pursued in several EU countries as well as at the Community level, characterized by measures supporting entrepreneurship while aiming to limit insecurities among the self‐employed. Among these approaches, EU‐level proposals addressing ‘economically dependent work’ hold promise. However, even they retain the binary division between paid or subordinate employment and self‐employment rather than extending labour protection to all workers.Less
This chapter examines responses to the destabilization of the employment relationship and labour market insecurities coming in its train. The regulation of principal focus is the ILO Recommendation on the Employment Relationship (2006), marking a shift from equal treatment to effective protection. The empirical focus is Industrialized Market Economy Countries experiencing a rise of self‐employment resembling paid employment, a subset of which was precarious, in the late 20th century. Two approaches to self‐employment are scrutinized: the approach advanced in Australia at the federal level, characterized by the promotion of independent contracting, and the approach pursued in several EU countries as well as at the Community level, characterized by measures supporting entrepreneurship while aiming to limit insecurities among the self‐employed. Among these approaches, EU‐level proposals addressing ‘economically dependent work’ hold promise. However, even they retain the binary division between paid or subordinate employment and self‐employment rather than extending labour protection to all workers.
Alice H. Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.003.0009
- Subject:
- Economics and Finance, Economic History, International
The expansionist tendencies inherent in industrial developmental policies became overexpansionist when, by virtue of success itself, access to foreign capital eased. Two foreign debt crises ensued, ...
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The expansionist tendencies inherent in industrial developmental policies became overexpansionist when, by virtue of success itself, access to foreign capital eased. Two foreign debt crises ensued, one in Latin America starting in 1982, and the other in East Asia starting in 1997. The economic and political costs of financial disequilibria were enormous, involving prolonged falls in output and wages in Latin America and greater foreign political intervention throughout the developing world. This chapter examines how the institutions centred around the developmental state in late industrializing countries absorbed external shock and adapted to a more advanced stage of development internally.Less
The expansionist tendencies inherent in industrial developmental policies became overexpansionist when, by virtue of success itself, access to foreign capital eased. Two foreign debt crises ensued, one in Latin America starting in 1982, and the other in East Asia starting in 1997. The economic and political costs of financial disequilibria were enormous, involving prolonged falls in output and wages in Latin America and greater foreign political intervention throughout the developing world. This chapter examines how the institutions centred around the developmental state in late industrializing countries absorbed external shock and adapted to a more advanced stage of development internally.
Martha N. Ozawa and Yongwoo Lee
- Published in print:
- 2008
- Published Online:
- January 2009
- ISBN:
- 9780195304961
- eISBN:
- 9780199863648
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195304961.003.0022
- Subject:
- Social Work, Children and Families, Research and Evaluation
This chapter examines the degree to which the number of children lowers the income status of female-headed households. The US situation is compared with that of other industrialized countries. In the ...
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This chapter examines the degree to which the number of children lowers the income status of female-headed households. The US situation is compared with that of other industrialized countries. In the United States, female heads of households are relatively well educated, have a relatively larger number of children, and are more likely to work. At the descriptive level, their after-tax income status is the highest among those in these six countries. Yet, after public and private income transfers are distributed, their income status plunges to the second lowest, next only to Canadians’. In the Nordic and European countries, social policy interventions have improved the income status of households with children, particularly female-headed households. The provision of various forms of public income transfers, including children’s allowances, maternity benefits, Social Security benefits, unemployment insurance, and workers’ compensation, has effectively smoothed out the distribution of disposable household income, mitigating the impact of children on the income status of female-headed households in these countries.Less
This chapter examines the degree to which the number of children lowers the income status of female-headed households. The US situation is compared with that of other industrialized countries. In the United States, female heads of households are relatively well educated, have a relatively larger number of children, and are more likely to work. At the descriptive level, their after-tax income status is the highest among those in these six countries. Yet, after public and private income transfers are distributed, their income status plunges to the second lowest, next only to Canadians’. In the Nordic and European countries, social policy interventions have improved the income status of households with children, particularly female-headed households. The provision of various forms of public income transfers, including children’s allowances, maternity benefits, Social Security benefits, unemployment insurance, and workers’ compensation, has effectively smoothed out the distribution of disposable household income, mitigating the impact of children on the income status of female-headed households in these countries.
Alice H. Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.003.0001
- Subject:
- Economics and Finance, Economic History, International
This chapter introduces the phenomenon of the rise of a handful of countries outside the North Atlantic —the rest—to the ranks of world‐class competitors in a wide range of mid‐technology industries, ...
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This chapter introduces the phenomenon of the rise of a handful of countries outside the North Atlantic —the rest—to the ranks of world‐class competitors in a wide range of mid‐technology industries, so that, although in 1965 the rest had supplied less than a twentieth of world manufacturing output, by 1995 it supplied nearly one‐fifth. The divide among backward countries that had already appeared by the end of the Second World War in the form of manufacturing experience is noted: while the rest (Argentina, Brazil, Chile, Mexico, Turkey, India, China, South Korea, Taiwan, Malaysia, Indonesia) had acquired sufficient manufacturing experience, ‘the remainder’, which had been less exposed to factory life pre‐war, failed to achieve the same industrial diversification. Various characteristic aspects of the rise of the rest are discussed, including: their acquisition of knowledge‐based assets; innovative control mechanisms imposing discipline on economic behaviour and revolving around the principle of reciprocity; globalization in relation to national ownership (with discussion of manufacturing experience and the policy paradox of income distribution); and institution building (with specific reference to Thailand's reciprocal control mechanism).Less
This chapter introduces the phenomenon of the rise of a handful of countries outside the North Atlantic —the rest—to the ranks of world‐class competitors in a wide range of mid‐technology industries, so that, although in 1965 the rest had supplied less than a twentieth of world manufacturing output, by 1995 it supplied nearly one‐fifth. The divide among backward countries that had already appeared by the end of the Second World War in the form of manufacturing experience is noted: while the rest (Argentina, Brazil, Chile, Mexico, Turkey, India, China, South Korea, Taiwan, Malaysia, Indonesia) had acquired sufficient manufacturing experience, ‘the remainder’, which had been less exposed to factory life pre‐war, failed to achieve the same industrial diversification. Various characteristic aspects of the rise of the rest are discussed, including: their acquisition of knowledge‐based assets; innovative control mechanisms imposing discipline on economic behaviour and revolving around the principle of reciprocity; globalization in relation to national ownership (with discussion of manufacturing experience and the policy paradox of income distribution); and institution building (with specific reference to Thailand's reciprocal control mechanism).
Alice H. Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.003.0007
- Subject:
- Economics and Finance, Economic History, International
Successful late industrializing countries (the rest) all allocated intermediate assets to the same set of mid‐technology industries, and in almost all cases, these industries started as import ...
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Successful late industrializing countries (the rest) all allocated intermediate assets to the same set of mid‐technology industries, and in almost all cases, these industries started as import substitutes. What differed among countries was how vigorously and rapidly exportables were extracted from a sequentially rising number of import substitution sectors. The wide variation among countries in export coefficient—share of exports (manufactured and non‐manufactured) in GDP—depended on structural characteristics (population size and density), investment rates, and price distortions. Even controlling for these variables, however, some countries became overexporters while others remained underexporters. The reasons behind this disparity—rather than its importance for growth—are explored in this chapter, which addresses in particular the trading institutions of the latecomers and the influence of earlier industrializers on them—notably Japan and its Asian emulators, the USA and its South American emulators, and (later) Europe as a role model.Less
Successful late industrializing countries (the rest) all allocated intermediate assets to the same set of mid‐technology industries, and in almost all cases, these industries started as import substitutes. What differed among countries was how vigorously and rapidly exportables were extracted from a sequentially rising number of import substitution sectors. The wide variation among countries in export coefficient—share of exports (manufactured and non‐manufactured) in GDP—depended on structural characteristics (population size and density), investment rates, and price distortions. Even controlling for these variables, however, some countries became overexporters while others remained underexporters. The reasons behind this disparity—rather than its importance for growth—are explored in this chapter, which addresses in particular the trading institutions of the latecomers and the influence of earlier industrializers on them—notably Japan and its Asian emulators, the USA and its South American emulators, and (later) Europe as a role model.
Alice H. Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.003.0008
- Subject:
- Economics and Finance, Economic History, International
After floundering for a century, the successful late industrializing countries (the rest) succeeded in creating professionally managed, large‐scale, national firms, although their importance varied ...
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After floundering for a century, the successful late industrializing countries (the rest) succeeded in creating professionally managed, large‐scale, national firms, although their importance varied by country. The mix of a country's business structures by size and ownership (private or public, foreign or national) influenced the level of its investment in skills. The long‐term strategic ‘make‐or‐buy’ technology choice was a function of firm composition. The process whereby a latecomer succeeds or fails to create a corps of ‘national firm leaders’ is the subject of this chapter. A national leader may be understood as a nationally owned and controlled firm that is ‘targeted’ by government (it receives a disproportionate share of ‘intermediate assets’), which allows it to become a dominant player in its ‘competitive base’ (domestic market), in exchange for which it is obliged to invest heavily in proprietary knowledge‐based assets; these assets, in turn, allow it to globalize through exporting or outward foreign direct investment.Less
After floundering for a century, the successful late industrializing countries (the rest) succeeded in creating professionally managed, large‐scale, national firms, although their importance varied by country. The mix of a country's business structures by size and ownership (private or public, foreign or national) influenced the level of its investment in skills. The long‐term strategic ‘make‐or‐buy’ technology choice was a function of firm composition. The process whereby a latecomer succeeds or fails to create a corps of ‘national firm leaders’ is the subject of this chapter. A national leader may be understood as a nationally owned and controlled firm that is ‘targeted’ by government (it receives a disproportionate share of ‘intermediate assets’), which allows it to become a dominant player in its ‘competitive base’ (domestic market), in exchange for which it is obliged to invest heavily in proprietary knowledge‐based assets; these assets, in turn, allow it to globalize through exporting or outward foreign direct investment.
Alice H. Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.003.0010
- Subject:
- Economics and Finance, Economic History, International
One of the most controversial aspects of the rise of the successful late industrializing countries (the rest) was the role played by the government. As seen in this book, governments in the rest all ...
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One of the most controversial aspects of the rise of the successful late industrializing countries (the rest) was the role played by the government. As seen in this book, governments in the rest all intervened in markets in a deliberate and deep way because their economies had too few knowledge‐based assets to compete at world market prices even in modern labour‐intensive industries. But government failures were institutionally bounded: the set of institutions that framed the whole process of late industrialization was specifically designed to minimize the ill effects of interventionist policies. In this chapter the controversy over the role of the state is connected with the rise of the rest: first, a look is taken at Alexander Gerschenkron's theory on the process of catching up; then the underlying assumptions of the ‘assets approach’ taken are stated; next, a summary is made of what it means for market theory and its policy prescription of laissez‐faire to drop the assumption of perfect knowledge; and, finally, a few remarks are made about countries that have stumbled back and those that are (possibly) at the forefront in ‘the remainder’ (countries that have so far failed to industrialize).Less
One of the most controversial aspects of the rise of the successful late industrializing countries (the rest) was the role played by the government. As seen in this book, governments in the rest all intervened in markets in a deliberate and deep way because their economies had too few knowledge‐based assets to compete at world market prices even in modern labour‐intensive industries. But government failures were institutionally bounded: the set of institutions that framed the whole process of late industrialization was specifically designed to minimize the ill effects of interventionist policies. In this chapter the controversy over the role of the state is connected with the rise of the rest: first, a look is taken at Alexander Gerschenkron's theory on the process of catching up; then the underlying assumptions of the ‘assets approach’ taken are stated; next, a summary is made of what it means for market theory and its policy prescription of laissez‐faire to drop the assumption of perfect knowledge; and, finally, a few remarks are made about countries that have stumbled back and those that are (possibly) at the forefront in ‘the remainder’ (countries that have so far failed to industrialize).
John Micklewright and Anna Wright
- Published in print:
- 2004
- Published Online:
- January 2005
- ISBN:
- 9780199278558
- eISBN:
- 9780191601590
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199278555.003.0007
- Subject:
- Economics and Finance, Development, Growth, and Environmental
The chapter starts by considering the extent to which development benefits from philanthropic effort, showing that a great deal of philanthropy in rich industrialised countries is aimed at domestic ...
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The chapter starts by considering the extent to which development benefits from philanthropic effort, showing that a great deal of philanthropy in rich industrialised countries is aimed at domestic concerns, and may vary with household income; the super‐rich are treated here as a special case. The next question asked is why development may command only a small share of charitable donations and how people determine the objects of their giving; here the economic literature on philanthropy provides only limited help and the discussion draws on the literature on donor behaviour from other disciplines, notably marketing. The special case of private donations to the UN agencies is then considered, looking at the particular problems faced by the UN, and focusing on the United Nations Children's Fund (UNICEF), which is by far the most successful UN agency at collecting money from private individuals; the question is asked as to whether private donations are crowded‐out by governmental contributions or by Official Development Assistance (ODA). The last main section of the chapter discusses future prospects and ways forward, including measures designed to promote charitable donations, in general, but focusing on their particular relevance for development. It covers the issue of tax incentives to donors, the new ‘global funds’ (intended partly to attract money from the super‐rich), new forms of corporate social responsibility and giving in relation to ‘cause‐related marketing’, the use of the Internet, and long‐term donor education.Less
The chapter starts by considering the extent to which development benefits from philanthropic effort, showing that a great deal of philanthropy in rich industrialised countries is aimed at domestic concerns, and may vary with household income; the super‐rich are treated here as a special case. The next question asked is why development may command only a small share of charitable donations and how people determine the objects of their giving; here the economic literature on philanthropy provides only limited help and the discussion draws on the literature on donor behaviour from other disciplines, notably marketing. The special case of private donations to the UN agencies is then considered, looking at the particular problems faced by the UN, and focusing on the United Nations Children's Fund (UNICEF), which is by far the most successful UN agency at collecting money from private individuals; the question is asked as to whether private donations are crowded‐out by governmental contributions or by Official Development Assistance (ODA). The last main section of the chapter discusses future prospects and ways forward, including measures designed to promote charitable donations, in general, but focusing on their particular relevance for development. It covers the issue of tax incentives to donors, the new ‘global funds’ (intended partly to attract money from the super‐rich), new forms of corporate social responsibility and giving in relation to ‘cause‐related marketing’, the use of the Internet, and long‐term donor education.
Claudio R. Frischtak
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198296058
- eISBN:
- 9780191596209
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198296053.003.0016
- Subject:
- Economics and Finance, International
The object of this case study is to discuss the response of Latin American governments to the forces of globalization and increasing competition. The first main section, Sect. 2, discusses the role ...
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The object of this case study is to discuss the response of Latin American governments to the forces of globalization and increasing competition. The first main section, Sect. 2, discusses the role of governments in industrializing and developing country contexts, and the next and largest, namely, Sect.3 attempts to assess the recent Latin American experience, arguing that the road to reform—in the sense of changes in the regulatory environment, trade regimes, and asset‐ownership structures—has advanced to the point of irreversibility. Latin economies have become relatively open and increasingly competitive, and to a large extent, the wedge of reform has been driven by the globalization process; there is now a much more hospitable environment to international business in most Latin American countries, particularly to MNEs (multinational enterprises) able to link countries effectively to trade, technology, and investment networks. However, the road to macroeconomic stability has been far more difficult, and there remain persistent problems of fiscal largesse, accommodating monetary policy, low savings (public and private) and excessive domestic absorption; combined, these have led to renewed balance‐of‐payment crises in several Latin American countries since short‐term capital, which would be helpful to make the transition to macro‐stability less painful, and which has been made abundant with globalization, has proved to be a poor basis to offset persistent current‐account deficits. Financial systems have also become fragile in some countries because of excessive and non‐sustainable public‐sector borrowing and a lack of confidence of private agents.Less
The object of this case study is to discuss the response of Latin American governments to the forces of globalization and increasing competition. The first main section, Sect. 2, discusses the role of governments in industrializing and developing country contexts, and the next and largest, namely, Sect.3 attempts to assess the recent Latin American experience, arguing that the road to reform—in the sense of changes in the regulatory environment, trade regimes, and asset‐ownership structures—has advanced to the point of irreversibility. Latin economies have become relatively open and increasingly competitive, and to a large extent, the wedge of reform has been driven by the globalization process; there is now a much more hospitable environment to international business in most Latin American countries, particularly to MNEs (multinational enterprises) able to link countries effectively to trade, technology, and investment networks. However, the road to macroeconomic stability has been far more difficult, and there remain persistent problems of fiscal largesse, accommodating monetary policy, low savings (public and private) and excessive domestic absorption; combined, these have led to renewed balance‐of‐payment crises in several Latin American countries since short‐term capital, which would be helpful to make the transition to macro‐stability less painful, and which has been made abundant with globalization, has proved to be a poor basis to offset persistent current‐account deficits. Financial systems have also become fragile in some countries because of excessive and non‐sustainable public‐sector borrowing and a lack of confidence of private agents.
Martin Fransman
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198289357
- eISBN:
- 9780191596261
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198289359.003.0007
- Subject:
- Economics and Finance, Microeconomics
The chapter begins with a brief discussion of the convergence hypothesis, which argues that there has been a convergence in the economies of the major industrialized countries in the post‐World War ...
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The chapter begins with a brief discussion of the convergence hypothesis, which argues that there has been a convergence in the economies of the major industrialized countries in the post‐World War II period. It then goes on to examine a corollary that has been derived from this hypothesis: that national technology policy has become obsolete. The globalization of the Japanese economy and science and technology system is then documented on the basis of several selected indicators, including international imitation, international strategic technology alliances, the international movement of researchers and engineers, direct foreign investment, foreign research laboratories in Japan, technology trade, and internationally co‐authored science and technology papers. The role of the Japanese government in science and technology is then considered, beginning with an account of the rationale given by the Ministry of International Trade and Industry (MITI) for its involvement in the science and technology area; this is followed by a detailed account of MITI's response to globalization, which reveals the vision that guides MITI's policy‐makers in their interventions in the field of science and technology within the context of the globalizing Japanese and world economies. The implications of the Japanese response to globalization for other large Western countries are then examined and, finally, the sources of MITI's influence in the Japanese economy are analysed.Less
The chapter begins with a brief discussion of the convergence hypothesis, which argues that there has been a convergence in the economies of the major industrialized countries in the post‐World War II period. It then goes on to examine a corollary that has been derived from this hypothesis: that national technology policy has become obsolete. The globalization of the Japanese economy and science and technology system is then documented on the basis of several selected indicators, including international imitation, international strategic technology alliances, the international movement of researchers and engineers, direct foreign investment, foreign research laboratories in Japan, technology trade, and internationally co‐authored science and technology papers. The role of the Japanese government in science and technology is then considered, beginning with an account of the rationale given by the Ministry of International Trade and Industry (MITI) for its involvement in the science and technology area; this is followed by a detailed account of MITI's response to globalization, which reveals the vision that guides MITI's policy‐makers in their interventions in the field of science and technology within the context of the globalizing Japanese and world economies. The implications of the Japanese response to globalization for other large Western countries are then examined and, finally, the sources of MITI's influence in the Japanese economy are analysed.
Alice H. Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.003.0004
- Subject:
- Economics and Finance, Economic History, International
The successful late industrializing countries (the rest) followed a ‘low road’ to industrial development between 1850 and 1950 for lack of proprietary technology and related know‐how and skills. ...
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The successful late industrializing countries (the rest) followed a ‘low road’ to industrial development between 1850 and 1950 for lack of proprietary technology and related know‐how and skills. Although manufacturing experience accumulated, and the growth rate of output may even have increased, the rest could not industrialize fast enough just to keep pace with the North Atlantic. Few firms had been able to make the ‘three‐pronged investment’ to which the success of the modern business enterprise has been attributed: in up‐to‐date machinery and plants of optimal scale (large‐scale production units and capital investment); in managerial hierarchies and technological skills, as exemplified by the railroad industry; and in distribution networks. This chapter examines each of these qualifications in turn to try to understand why progress in the rest was so halting, covering high bankruptcy rates and low rates of return, imprudent financial practices, cheating, and fraud, and the role of North Atlantic emigration in the accumulation of manufacturing experience and skills. The final part of the chapter looks at finance in particular—investment, supply of capital, economic surpluses and fattening profits, speculation, and the ‘little push’ into heavy industry, as exemplified by the iron and steel industry.Less
The successful late industrializing countries (the rest) followed a ‘low road’ to industrial development between 1850 and 1950 for lack of proprietary technology and related know‐how and skills. Although manufacturing experience accumulated, and the growth rate of output may even have increased, the rest could not industrialize fast enough just to keep pace with the North Atlantic. Few firms had been able to make the ‘three‐pronged investment’ to which the success of the modern business enterprise has been attributed: in up‐to‐date machinery and plants of optimal scale (large‐scale production units and capital investment); in managerial hierarchies and technological skills, as exemplified by the railroad industry; and in distribution networks. This chapter examines each of these qualifications in turn to try to understand why progress in the rest was so halting, covering high bankruptcy rates and low rates of return, imprudent financial practices, cheating, and fraud, and the role of North Atlantic emigration in the accumulation of manufacturing experience and skills. The final part of the chapter looks at finance in particular—investment, supply of capital, economic surpluses and fattening profits, speculation, and the ‘little push’ into heavy industry, as exemplified by the iron and steel industry.
Alice H. Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.003.0006
- Subject:
- Economics and Finance, Economic History, International
The developmental state of successful late industrializing countries (the rest) was predicated on performing four functions: development banking; local‐content management (control of performance ...
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The developmental state of successful late industrializing countries (the rest) was predicated on performing four functions: development banking; local‐content management (control of performance standards); ‘selective seclusion’ (opening some markets to foreign transactions and keeping others closed); and national firm formation. As a consequence of these functions (the first two are examined in this chapter), the rest finally made the requisite three‐pronged investment to enter basic industry: in large‐scale plants, in hierarchical managements‐cum‐technological skills, and in distribution and marketing networks. Two principles guided developmentalism: to make manufacturing profitable enough to attract private enterprise through the allocation of ‘intermediate assets’ (subsidies), and to induce such enterprises to be results‐oriented and to redistribute their monopoly profits to the population at large. Step by step, governments groped towards a new control mechanism. The new mechanism ultimately shared credit with private initiative for a Golden Age of industrial expansion.Less
The developmental state of successful late industrializing countries (the rest) was predicated on performing four functions: development banking; local‐content management (control of performance standards); ‘selective seclusion’ (opening some markets to foreign transactions and keeping others closed); and national firm formation. As a consequence of these functions (the first two are examined in this chapter), the rest finally made the requisite three‐pronged investment to enter basic industry: in large‐scale plants, in hierarchical managements‐cum‐technological skills, and in distribution and marketing networks. Two principles guided developmentalism: to make manufacturing profitable enough to attract private enterprise through the allocation of ‘intermediate assets’ (subsidies), and to induce such enterprises to be results‐oriented and to redistribute their monopoly profits to the population at large. Step by step, governments groped towards a new control mechanism. The new mechanism ultimately shared credit with private initiative for a Golden Age of industrial expansion.
Alice H. Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.003.0003
- Subject:
- Economics and Finance, Economic History, International
In theory, technology transfer should enable a backward country to achieve world productivity norms, but in practice, because technology is ‘tacit’, and never completely codifiable, the best ...
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In theory, technology transfer should enable a backward country to achieve world productivity norms, but in practice, because technology is ‘tacit’, and never completely codifiable, the best technology transfer rarely achieves productivity parity between buyer and seller. The more tacit a technology is, the more difficult it is to transfer, and the more monopolistic the power of the seller and the lower the skills and organizational capabilities of the buyer, the worse the transfer. A shyness of foreign investors left the successful late industrializing countries (the rest) with a serious skill deficit that grew over time relative to that of the North Atlantic and Japan. The tacitness problem arose early because of the sectoral composition of the manufacturing output of the rest; whatever the source of manufacturing experience, all countries tended to share the same sequential industry mix based on natural resources, and because the specific properties of a natural resource vary by location, a successful technology transfer requires substantial investments in local learning and adaptation. Japan set a benchmark for learners that began with technology transfer; it started to industrialize rapidly only in the 1890s, at about the same time as China, and slightly after Brazil, India, and Mexico, but, given its engineering capabilities and basic knowledge, its absorption of foreign know‐how was more proactive, systematic, and thoroughgoing than that of other countries, and is analysed below in the case of the silk industry.Less
In theory, technology transfer should enable a backward country to achieve world productivity norms, but in practice, because technology is ‘tacit’, and never completely codifiable, the best technology transfer rarely achieves productivity parity between buyer and seller. The more tacit a technology is, the more difficult it is to transfer, and the more monopolistic the power of the seller and the lower the skills and organizational capabilities of the buyer, the worse the transfer. A shyness of foreign investors left the successful late industrializing countries (the rest) with a serious skill deficit that grew over time relative to that of the North Atlantic and Japan. The tacitness problem arose early because of the sectoral composition of the manufacturing output of the rest; whatever the source of manufacturing experience, all countries tended to share the same sequential industry mix based on natural resources, and because the specific properties of a natural resource vary by location, a successful technology transfer requires substantial investments in local learning and adaptation. Japan set a benchmark for learners that began with technology transfer; it started to industrialize rapidly only in the 1890s, at about the same time as China, and slightly after Brazil, India, and Mexico, but, given its engineering capabilities and basic knowledge, its absorption of foreign know‐how was more proactive, systematic, and thoroughgoing than that of other countries, and is analysed below in the case of the silk industry.
Alice H. Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.003.0005
- Subject:
- Economics and Finance, Economic History, International
Countries in the successful late industrializing countries (the rest) that industrialized rapidly after the Second World War had accumulated manufacturing experience in the pre‐war period, and this ...
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Countries in the successful late industrializing countries (the rest) that industrialized rapidly after the Second World War had accumulated manufacturing experience in the pre‐war period, and this differentiated them from countries in the unsuccessful ‘remainder’. In the previous chapter an analysis was made of how premodern artisanship and North Atlantic emigration affected the accumulation of manufacturing experience. In this chapter an analysis is made of how colonial rule and Chinese emigration affected it, focusing on Malaysia, Indonesia, Taiwan, Thailand (with no formal colonial ties), and South Korea (with no Chinese emigration). The strengths and weaknesses of different types of manufacturing experience are then summed up for the rest as a whole. The introduction to the chapter presents a statistical analysis of aggregate cross‐country data that demonstrates that manufacturing performance (per capita output) in a given period depends on the accumulation of prior experience in manufacturing as opposed to other types of economic activity.Less
Countries in the successful late industrializing countries (the rest) that industrialized rapidly after the Second World War had accumulated manufacturing experience in the pre‐war period, and this differentiated them from countries in the unsuccessful ‘remainder’. In the previous chapter an analysis was made of how premodern artisanship and North Atlantic emigration affected the accumulation of manufacturing experience. In this chapter an analysis is made of how colonial rule and Chinese emigration affected it, focusing on Malaysia, Indonesia, Taiwan, Thailand (with no formal colonial ties), and South Korea (with no Chinese emigration). The strengths and weaknesses of different types of manufacturing experience are then summed up for the rest as a whole. The introduction to the chapter presents a statistical analysis of aggregate cross‐country data that demonstrates that manufacturing performance (per capita output) in a given period depends on the accumulation of prior experience in manufacturing as opposed to other types of economic activity.
Nicholas Crafts
- Published in print:
- 2006
- Published Online:
- January 2012
- ISBN:
- 9780197263471
- eISBN:
- 9780191734786
- Item type:
- chapter
- Publisher:
- British Academy
- DOI:
- 10.5871/bacad/9780197263471.003.0007
- Subject:
- Economics and Finance, Economic History
This chapter is concerned with state policies and institutional arrangements that have figured prominently in the recent East Asian ‘economic miracle’, and assesses the significance of the financial ...
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This chapter is concerned with state policies and institutional arrangements that have figured prominently in the recent East Asian ‘economic miracle’, and assesses the significance of the financial crisis that overtook the newly industrializing countries (NICs) at the end of the 1990s. It employs a historical perspective within which to view the rapid transition of the NICs in the final quarter of the twentieth century.Less
This chapter is concerned with state policies and institutional arrangements that have figured prominently in the recent East Asian ‘economic miracle’, and assesses the significance of the financial crisis that overtook the newly industrializing countries (NICs) at the end of the 1990s. It employs a historical perspective within which to view the rapid transition of the NICs in the final quarter of the twentieth century.
Colin Crouch, David Finegold, and Mari Sako
- Published in print:
- 1999
- Published Online:
- October 2011
- ISBN:
- 9780198294382
- eISBN:
- 9780191685040
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198294382.001.0001
- Subject:
- Business and Management, HRM / IR, Political Economy
This study of the problems confronting institutions for the creation of occupational skills in seven advanced industrialised countries contributes to two different areas of debate. The first is the ...
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This study of the problems confronting institutions for the creation of occupational skills in seven advanced industrialised countries contributes to two different areas of debate. The first is the study of the diversity of institutional forms taken by modern capitalism, and the difficulties currently surrounding the survival of that diversity. Most discussions of this theme analyse economic institutions and governance in general. This book is more specific, focusing on the key area of skill creation. The second theme is that of vocational education and training in its own right. While sharing the consensus that the advanced countries must secure competitive advantage in a global economy by developing highly skilled work-forces, the book draws attention to certain awkward aspects of this approach that are often glossed over in general debate: the employment-generating power of improvements in skill levels is limited; employment policy cannot depend fully on education policies. While the acquisition of skills has become a major public need, there is increasing dependence for their provision on individual firms, which can have no responsibility for general needs, with government action being restricted to residual care for the unemployed rather than contributing at the leading edge of advanced skills policy.Less
This study of the problems confronting institutions for the creation of occupational skills in seven advanced industrialised countries contributes to two different areas of debate. The first is the study of the diversity of institutional forms taken by modern capitalism, and the difficulties currently surrounding the survival of that diversity. Most discussions of this theme analyse economic institutions and governance in general. This book is more specific, focusing on the key area of skill creation. The second theme is that of vocational education and training in its own right. While sharing the consensus that the advanced countries must secure competitive advantage in a global economy by developing highly skilled work-forces, the book draws attention to certain awkward aspects of this approach that are often glossed over in general debate: the employment-generating power of improvements in skill levels is limited; employment policy cannot depend fully on education policies. While the acquisition of skills has become a major public need, there is increasing dependence for their provision on individual firms, which can have no responsibility for general needs, with government action being restricted to residual care for the unemployed rather than contributing at the leading edge of advanced skills policy.
Alice Amsden
- Published in print:
- 2001
- Published Online:
- November 2003
- ISBN:
- 9780195139693
- eISBN:
- 9780199832897
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195139690.001.0001
- Subject:
- Economics and Finance, Economic History, International
After a century of struggle, a dozen non‐Western countries with pre‐Second World War manufacturing experience succeeded in entering the orbit of modem industry. The rise of ‘the rest’ was ...
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After a century of struggle, a dozen non‐Western countries with pre‐Second World War manufacturing experience succeeded in entering the orbit of modem industry. The rise of ‘the rest’ was historically unprecedented. For the first time, countries without the competitive asset of proprietary, pioneering technology became economic powers. How industrialization among these prime latecomers succeeded, why it followed a novel path, and what some countries did to advance farther than others are the questions this book addresses. The same seed was contained in the rise of all the rest, a seed that had first germinated in Japan and then grew as might plants in clay pots of differing sizes and shapes, spanning Latin America (Argentina, Brazil, Chile, and Mexico), the Middle East (Turkey) and Asia (India, China, South Korea, Taiwan, Malaysia, Indonesia, and Thailand). To industrialize by borrowing already commercialized technology, devoid of the radically new products and processes that had enriched the North Atlantic, the rise of the rest involved intense learning, an extensive role for the government, and the formation of specific types of business enterprise. Indeed, the rest's unique reciprocal control mechanism differed from Adam Smith's invisible hand and served to reduce government failure and firm mismanagement. By the 1990s, two distinct varieties had taken root: all the economies of the rest had become more globalized, but the ‘integrationists’ (epitomized by Mexico's affiliation to the North Atlantic Free Trade Agreement (NAFTA) and Argentina's adoption of a dollar‐based currency board) were characterized by heavy reliance on foreign direct investment and minimal local expenditures on skills (as measured by research and development), while the ‘independents’, led by China, India, South Korea, and Taiwan, were notable for their nationally controlled firms and surging investments in technological capabilities. Which subspecies of the rest would succeed, and which would serve as the model for later industrializers (‘the remainder’), are questions that challenge the twenty‐first century and are analysed in this book, which is arranged in three main parts: sinking behind, 1850–c. 1950; sneaking ahead, c. 1950–; and squaring off, c. 1980–.Less
After a century of struggle, a dozen non‐Western countries with pre‐Second World War manufacturing experience succeeded in entering the orbit of modem industry. The rise of ‘the rest’ was historically unprecedented. For the first time, countries without the competitive asset of proprietary, pioneering technology became economic powers. How industrialization among these prime latecomers succeeded, why it followed a novel path, and what some countries did to advance farther than others are the questions this book addresses. The same seed was contained in the rise of all the rest, a seed that had first germinated in Japan and then grew as might plants in clay pots of differing sizes and shapes, spanning Latin America (Argentina, Brazil, Chile, and Mexico), the Middle East (Turkey) and Asia (India, China, South Korea, Taiwan, Malaysia, Indonesia, and Thailand). To industrialize by borrowing already commercialized technology, devoid of the radically new products and processes that had enriched the North Atlantic, the rise of the rest involved intense learning, an extensive role for the government, and the formation of specific types of business enterprise. Indeed, the rest's unique reciprocal control mechanism differed from Adam Smith's invisible hand and served to reduce government failure and firm mismanagement. By the 1990s, two distinct varieties had taken root: all the economies of the rest had become more globalized, but the ‘integrationists’ (epitomized by Mexico's affiliation to the North Atlantic Free Trade Agreement (NAFTA) and Argentina's adoption of a dollar‐based currency board) were characterized by heavy reliance on foreign direct investment and minimal local expenditures on skills (as measured by research and development), while the ‘independents’, led by China, India, South Korea, and Taiwan, were notable for their nationally controlled firms and surging investments in technological capabilities. Which subspecies of the rest would succeed, and which would serve as the model for later industrializers (‘the remainder’), are questions that challenge the twenty‐first century and are analysed in this book, which is arranged in three main parts: sinking behind, 1850–c. 1950; sneaking ahead, c. 1950–; and squaring off, c. 1980–.
