The political economy of Indian planning

Peruvian statistics were examined to see if construction remained labour‐intensive during 1955–67. Data on output, employment, capital, and materials consumption were either lacking or had defects that made a direct comparison of trends impossible. But conclusions could be drawn from relative price and wage trends. If materials and capital had not been substituted for labour, average construction costs would have risen substantially more than they did. Our estimate was that by 1967 they would have been 25 per cent higher.

Evidence from a sample of firms, however, suggested that adoption of labour‐saving techniques cannot be tied simply to changes in wages compared with other costs. All eleven innovations studied, it is true, were markedly labour‐saving; but the rate of adoption did not closely follow wage changes. Adoption came most often during those less tense years when builders were neither overstrained with orders nor lacking credit and clients. One must conclude that both rising wages and innovations can limit employment expansion in relatively poor countries.

Since both agriculture and manufacturing have been unable to absorb the growing labour force of poor countries, economists have turned their attention to other sectors for supplementary employment expansion. One of these is construction. The construction sector creates not only jobs but builds capital goods with a desirable low import content. In association with carefully structured financial institutions, it may even generate savings. How much employment a given expansion of construction will provide depends on the production functions of the sector: their slopes and their potential shifts. One must find the changes in labour productivity that go with likely changes in volume, capital accumulation, trends in material supplies, and alternate technologies.

All these questions will get imprecise answers without good statistics on output, labour, capital, and materials, both unit prices and volume. If output varies in composition and in the relative quality of components, problems of weighting and aggregating arise. Because of the sector's ? instability and footloose nature, data on construction remain inferior compared with other sectors even in the most advanced and statistics‐rich countries. Can one make anything of the sorts of data available in poor countries where the sector must play its most crucial role?

In this article, using rather limited data, we note with considerable alarm that steady labour intensity and corresponding employment expansion cannot be taken for granted. Where daily wages are but a fraction of hourly American wages, and where interest rates are a multiple of American rates, the more lavish use of materials and machinery compared with labour can nevertheless begin early.

Peru is the country selected for our study. During 1955–67 Peru had a relatively high national output growth rate of 5.6 per cent together with a moderate rate of inflation of about 9 per cent. Except for the devaluation years of 1958 and 1967, flourishing exports of fishmeal, copper, cotton, and sugar helped carry this rate of growth. Lima was one of the continent's fastest‐growing cities in population and building, particularly in squatter barriadas. But in the 1960s commercial conduction also grew at more than a 15 per cent compound rate, measured in square metres built, according to some estimates.1 During 1964–68, construction had high priority under President Fernando Belaunde, a professional architect. More U.S. foreign aid for housing (direct and guaranteed private loans) went to Peru in absolute terms during this period than to any other country. We shall analyse the consequences by examining (1) trends in relative costs, (2) relative output and import trends, and (3) data about receptivity to innovations in a sample of firms.     

Understanding contentious collective action by Chinese laid-off workers: The importance of regional political economy

Episodes of contentious collective action involving laid-off workers have erupted throughout China in recent years. With few exceptions, studies of Chinese laid-off workers’ contention have attempted to generalize from field research in very few⦓r even single⤜ocalities. This limitation has led to several debates that can frequently be addressed by examining differences in political economy among China’s industrial regions. Based on 19 months of fieldwork and over 100 in-depth interviews with workers, managers, and officials in nine Chinese cities, this article offers a systematic, sub-national comparative analysis of laid-off workers’ contention. The article also addresses broader issues in the analysis of social movements and contentious politics, a field that has too often failed to take such regional differences into account. William Hurst is a Ph.D. candidate in political science at the University of California, Berkeley, where he is completing a dissertation on the politics of China’s state-sector lay-offs. His previous publications include “Analysis in Limbo: Contemporary Chinese Politics Amid the Maturation of Reform” (with Lowell Dittmer;Issues & Studies, December 2002/March 2003), and China’s Contentious Pensioners” (with Kevin O’Brien;The China Quarterly, June 2002). This article benefited from the assistance of many Chinese friends and colleagues in Beijing, Benxi, Chongqing, Datong, Harbin, Luoyang, Shanghai, Shenyang, and Zhengzhou. Kiren Chaudhry, Calvin Chen, Ruth B. Collier, Kenneth Foster, Mark W. Frazier, Douglas Fuller, Mary E. Gallagher, thomas B. Gold, Kun-chin Lin, Chung-in Moon, Kevin O’Brien, Dorothy Solinger, Jaeyoun Won, as well as Judy Gruber and all the participants in her Spring 2003 seminar, and two anonymous reviewers offered extremely helpful comments. For their generous financial support during various stages of my research and writing, I wish to thank: the Fulbright Institute of International Education Program, the National Security Education Program, the Yanjing Institute at Harvard University, the University of Hawaii, Beijing University, the Lewis Mumford Center for Comparative Urban and Regional Research at SUNY-Albany, the University, of California Institute for Labor and Employment, as well as the Graduate Division, the Institute for International Studies, the Institute for East Asian Studies, and the Center for Chinese Studies at the University of California-Berkeley.     

The political economy of global firms from India and China

This article attempts to build a bridge between contemporary studies of global firms from emerging economies and existing theories in comparative political economy. It argues that given the primacy of the state as an economic actor in developing countries, the variety of capitalism literature could provide a theoretical foundation for firm-level analyses of emerging market multinationals. For example, the authors suggest that China and India may be moving towards a ‘hybrid market economy’. They also offer a typology of Indian and Chinese corporates to demonstrate an empirical approach to analysing domestic business–government relationships and the ways in which these firms are shaped by the peculiarities of their respective institutional setting. Finally, they identify some of the likely pitfalls of doing cross-national comparisons of emerging market multinationals, particularly with respect to the reliability of corporate data.     

The Chinese peasant economy: Paradigm and myth

The Chinese Peasant Economy: Agricultural Development in Hopei and Shantung. 1890–1914. By Ramon H. Myers. Harvard: Harvard University Press and London: Oxford University Press, 1971. Pp. xix, 394. Index. £6.75.     

Power,Interests and Coalitions: the political economy of mass privatisation in Turkey

This article argues that ethnicity has become increasingly salient in Afghan politics and society during the years of war, and discusses how the country's new institutions can be designed in a way that will contribute towards a reversal of this trend. The article examines a series of policy issues with a bearing on inclusion vs exclusion in inter‐ethnic relations: political institution building (institutions of government, electoral system, and centre–region relations), land rights, state religion, the census and the new identity document. For each of these the article discusses what outcome would best contribute to longer‐term stability and integration by stimulating inclusive, integrative identities—and what the problems and prospects are for these outcomes to be realised. The article specifically discusses warlords' role as spoilers, and the potential and limitations to the leverage on Afghan politics that is held by international actors, above all the USA.     

Regionalist governance in the new political economy of development: 'Relaunching' the Mercosur

The splintering of the Mercosur following the Brazilian devaluation in early 1999 has given way to an important re-crafting of the regional vision and a significant expansion of the scope of the regional project. This article contends that these trends can best be understood as coalescing into a new (and nascent) form of regionalist governance in the Southern Cone, in which the Mercosur is reconfigured as a vehicle for a new set of developmentalist and strategic objectives. This emerging form of regionalist governance is both causative and indicative of a new political economy both of the subregion and of the wider region of the Americas, and reflective of the crystallisation of a new political economy of development.