The Societal Consequences of Market Reform in Peru

This article analyzes how market reform policies already in place affect social interests, and the feedback effects of those interests on reform processes. The variety of societal responses includes the creation of new societal organizations, reflecting the variable content and asymmetrical distribution of costs and benefits of the policies implemented. Because of this variety even in Peru, where the disorganizing effects of neoliberal reform appear to be strongest, it would seem that the societal impact of economic reform elsewhere in Latin America would also warrant more careful examination.     

Labor Reform and Dual Transitions in Brazil and the Southern Cone

The sequencing of transitions to democracy and to a market economy shaped the outcome of labor law reform and prospects for expanded labor rights in Argentina, Brazil, and Chile. Argentina and Brazil experienced democratic transitions before market economic reforms were consolidated in the 1990s. During the transition, unions obtained prolabor reforms and secured rights that were enshrined in labor law. In posttransition democratic governments, market reforms coincided with efforts to reverse earlier labor protections. Unable to block many harmful reforms, organized labor in Argentina and Brazil did conserve core interests linked to organizational survival and hence to future bargaining leverage. In Chile this sequence was reversed. Market economic policies and labor reform were consolidated under military dictatorship. During democratic transition, employers successfully resisted reforms that would expand labor rights. This produced a limited scope of organizational resources for Chilean unions and reduced prospects for future improvements.     

Regime Shift in Japan?Two Decades of Neoliberal Reforms

This paper uses insights drawn from a paired comparison of Switzerland and Japan to give an account of the changes brought about by neoliberal policy adaptation in Japan over the last two decades. In Switzerland, notwithstanding further liberalization of the traditionally liberal regime prompted by the economic hardships of the 1990s, the referendum system helped the Social Democrats and unions to defend their rights and maintain the welfare schemes belatedly established in the 1980s. By contrast, the Japanese ruling party not only delayed liberalization of the protectionist state, but also aggravated fiscal problems by implementing a series of expansionary macroeconomic policies in the 1990s. Thus, without pursuing coherently such neoliberal policies as fiscal consolidation, privatization, or market deregulation, the Japanese state now faces a serious dilemma between the immediate need for structural reforms and the social unease that would result. Focusing on the reform packages of the Nakasone (1982‐87), Hashimoto (1996‐98), and Koizumi (2001‐) administrations, the paper reviews the sequences of reform policies as an interplay among economic challenges, actors’ aspirations, and institutional constraints, and further develops arguments about the segmented structure, peculiar to the Japanese state, that retards political changes.     

The Political Economy of Policy Volatility in Latin America

Why are some Latin American states plagued by persistent policy volatility while the policies of others remain relatively stable? This article explores the political economy of natural resource rents and policy volatility across Latin America. It argues that, all else equal, resource rents will create incentives for political leaders, which will result in repeated episodes of policy volatility. This effect, however, will depend on the structure of political institutions. Where political institutions fail to provide a forum for intertemporal exchange among political actors, natural resource rents will result in increased levels of policy volatility. Alternatively, where political institutions facilitate agreement among actors, resource rents will be conducive to policy stability. This argument is tested on a measure of policy volatility for 18 Latin American economies between 1993 and 2008. The statistical tests provide support for the argument.     

The political economic factors of migration to Bangkok

A new way of urbanization has emerged in China where farmers are urbanizing the rural areas instead of migrating to the large cities. This article addresses the question of why current urbanization takes this direction in which surplus labor has been transferred from agriculture into the industrial and service sectors without leaving the rural areas. The findings indicate that continual population pressure and reform policies in post-Mao China have resulted in strategic development of small towns in the rural areas. In this development, township and village enterprises have been the locomotive of rural urbanization. Institutional constraints could be moved, created, or utilized in a way which can be conductive for social development. The rural urbanization in China could be significant for many developing countries.     

The Political Construction of Foreign Workers in Japan

Japan organizes its labor markets for foreign workers hierarchically according to “race’ or “nationality.” Zainichi foreigners and nikkeijin are at the high end of the racial hierarchy with better jobs, higher pay, and better working conditions than other foreign workers. At the bottom end are South Asians with casual jobs, poor pay, and dangerous working environments. This racialized hierarchy, which produces differentiated wages and other privileges across different groups of foreign workers, is a political construction of Japanese government officials, who form policies that both establish the legal superiority of certain races over others and constrain the operation of each tier of foreign workers. Japanese employers perpetuate this labor market arrangement by cooperating with government bureaus and yakuza in maintaining labor disciplines tailored to each racial group. These actions create and sustain a racialized economy in Japan that is characterized by inferior jobs, little security, and few benefits for certain sectors of the labor market.     

RISE OF THE DISLOYAL: INCREASING RESENTMENT IN NORTH KOREA

Why has loyalty to the Kim Family Regime and the Worker’s Party diminished over the past twenty years despite a rise in the average standard of living, greater social mobility, and a regime policy of benign neglect towards marketization? Unthinkable in the Kim Il Sung era, the increase in expressions of resentment toward the North Korean authorities represents a shift in the ideology, behavior, and motivation of the population. Four critical factors have heightened tensions between state and society in North Korea, leading to a reduction in loyalty among the general population. The author considers the impact of labor mobilizations, the declining importance of party membership, the influence of foreign media, and the rise of rent seeking and extractive policies. While all play a role, it is important and possible to identify the primary cause. Extractive policies and rent-seeking position the regime and the people in a directly adversarial relationship. All tiers and agencies of the government have become complicit in efforts to siphon off profits, control market actors through crony capitalism, rent seek, over-regulate, and compete against private market actors, causing the residents to express frustration and resentment towards a government that does not have their interests at heart.     

End of an Era? The Landtagswahl in Bavaria,September 2008

The biotechnology and venture capital sectors have flourished in Germany during the 1990s, a surprising development that finds its roots in the policies of the federal government. Years before the private sector became engaged, the federal government had identified biotechnology and venture capital as important for job creation and Germany's world‐wide status as a technological leader. Its success in leading a renaissance in these sectors sits uneasily with dominant understandings of the German state as ‘semi‐sovereign’ (Katzenstein) or ‘enabling’ (Streeck) ‐ as institutionally incapable of defining policy against or without the active participation of societal actors. This article uses a history of the biotechnology and venture capital sectors since the 1970s to re‐examine the relationship between the central state and lower governments as well as organised interests in Germany. The evidence demonstrates the federal government's autonomy in formulating policy priorities as well as its ability to enhance the capabilities of lower level governments and private sector actors to achieve the objectives it defined.     

From Corporatism to Partisan Politics: Social Policy Making under Strain in Switzerland

The literature on neo‐corporatist agreements in social and labor market policy in the 1990s points to a decline of concertation in European countries with a long‐standing tradition of corporatist negotiation. This article identifies a similar trend in Switzerland and argues that three destabilizing factors account for it: 1) retrenchment pressure and ideological polarization prevent compromises; 2) the emergence of new social demands and interests challenges the homogeneity and legitimacy of peak organizations and thus their bargaining power; 3) increasing media coverage tends to open up the traditionally confidential and selective sphere of corporatist negotiation and weakens the social partners’ ability to reach agreements. The impact of these factors on neo‐corporatist bargaining is tested in Switzerland, a case where corporatist negotiations used to be particularly decisive in social policy making. Empirical evidence comes from a cross‐time comparison of two major social policies: Unemployment insurance and pension reforms in the 1970s and in the 1990s. In the last decade, the main locus of decision‐making shifted from the sphere of interest groups to partisan politics. In parliament, the political parties were able to draft bills enjoying wide acceptance thanks to compensations offered to groups particularly vulnerable to new social risks.     

UNDOCUMENTED INDONESIAN WORKERS IN MACAU

Presenting new research findings on undocumented Indonesian migrant workers in Macau, this article explicates the dovetailing arrangements between public and private sector interests that are systemically creating undocumented labor migration flows. It then shows how these arrangements are structurally inherent in the mutual competitiveness of globalizing nodes of wealth creation. Undocumented migration cheapens production costs and results in a flexible black market of vulnerable, right-less, and exploited workers. Contrary to illusions of an urbanizing Asia with expanding spaces for civil liberties, the development of globally competitive megacities, built and supported by low-skilled migrant workers, rests on a global underclass of transient workers who bear the human costs of transience and labor flexibility, enabling megacities to externalize such costs and enhance their global competitiveness. The article analyzes the vulnerabilities of undocumented Indonesian workers in the context of Macau's rapid economic development as an aspiring megacity The Macau government's laissez-faire tolerance of such workers is grounded in its need for human labor that is abundant, cheap, marginal, and disposable. The flow of Indonesian migrant workers into Macau is linked to Hong Kong's exclusionary immigration policies, which aim at extricating surplus migrant labor. Meanwhile, the Indonesian government refuses responsibility for its migrant workers in Macau because Macau is not recognized as an official destination. The article shows how public and private interests motivate increasing numbers of migrants to become undocumented overstayers in Macau, as they try to avoid oppressive practices in labor migration from Indonesia and the exclusionary policies of Hong Kong.     

Mineral wealth and limited redistribution: social transfers and taxation in Botswana

ABSTRACT

There are palpable cracks in the Botswana economic growth success story, most apparent in the evidence of persistent and extreme inequality. This article offers new insights into the Botswana puzzle by focusing on redistributive policies – taxation and transfers – as potential mechanisms to tackle poverty and inequality. The historical analysis explores how the minimal redistributive policies reflect the interests of the elites and how these actors justify their policy decisions with reference to the needs of the poor – an important electoral constituency; and it links policy developments to social and economic outcomes where no comprehensive social security system and negligible taxations means that only the well-to-do are in positions of income security and only the most vulnerable receive some relief. Diamond-rich Botswana avoids taxing its citizens. In terms of citizen engagement and ability to pursue social justice this may be a mistake.     

The Policies and Politics of Control: Countering Argentina's Uniformed and Unemployed Protesters

Like many new democracies, Argentina has struggled with contentious movements that have challenged its precarious stability. Two very different sectors have led particularly powerful opposition movements: the military—associated historically with the abuse of power—and the unemployed workers, with important support from prestigious human rights organizations. This article looks both at how the political standing of the sector (military versus civil society) influences policy choices and at how these policy choices influence whether opposition movements remain mobilized and contentious. It argues that situation‐alleviating policies—those that successfully address interests of the sector as a whole—tend to be more successful in defusing contentious movements than policies relying on coercion, concessions, or co‐optation of mobilized opposition groups. Situation alleviation depletes the contentious groups of possible recruits, while policies targeting the mobilized opposition may inadvertently motivate those actors to remain mobilized.     

Organised Labour,Dualisation and Labour Market Reform: Korean Trade Union Strategies in Economic and Social Crisis

Labour markets across industrialised countries have seen an increasing polarisation between insiders and outsiders as a result of labour market deregulation and welfare retrenchment, with governments responding to rising pressure from employers. But where are trade unions in this process of labour market deregulation and dualisation? Insider/outsider as well as producer coalition approaches portray organised labour as a structurally conservative force that is ready to prioritise the interests of insiders at the expense of those at the margins of the labour market. Rather than protecting the entire working class, unions are seen as being “complicit” in labour market dualisation that leaves an ever greater number of workers vulnerable. Our examination of the Korean case, though commonly perceived as an example of unions pursuing particularistic interests, does not comply with this image, but shows greater union inclusiveness in the face of socio-economic and socio-political challenges. Understanding the change in Korean trade union strategies, we highlight the critical importance of union identities shifting towards social movement unionism, in addition to the perceived imperative to revitalise the movement in order to remain a meaningful social force.     

Documents

South Africa's contemporary foreign policy cannot be understood outside an explanation of its post-apartheid political transition. Its actors, the ideas they express, the interests they represent and the institutions they craft are all crucially influenced and impacted upon by the democratic transition and how it has evolved. This democratic transition is defined by two foundational characteristics. First, as one of the last of the ‘anti-colonial’ transitions led by an African nationalist leadership, it is driven with a focus on achieving racial equality in both the domestic and global context. Second, the transition has occurred when a particular configuration of power prevailed in the global order that not only established the parameters which governed its evolution, but also determined which interests prevailed within it. The former's imprint on the foreign policy agenda is manifested in South Africa's prioritisation of Africa, its almost messianic zeal to modernise the continent through a focus on political stability and economic growth, and its desire to reform the global order so as to create an enabling environment for African development. It is also reflected in South Africa's insistence not to be seen to be dictated to by the West, especially in the fashioning of its economic policies and its approach to addressing the Zimbabwean question. The latter manifests itself not only in how corporate interests take centre stage in South Africa's foreign policy interactions, but also in how transnational alliances like India–Brazil–South Africa (IBSA) are being fashioned to challenge big powers and their interests in global forums and in the international system. These thematic concerns are the subject of investigation in this paper.     

Learning from Latvia: Adoption,Adaptation, and Evidence-Based Justice Reform

Justice reform through legal technical assistance has emerged since the 1990s as a means to support developing and transition countries to reform governance structures. To date, few studies have examined which aspects of capacity development can best support the adoption, adaptation and local acceptability of international norms within local justice systems. This paper presents the findings of a mixed methods study of 14 Latvian participants involved in a Canadian justice reform project that established the Latvian State Probation Service (SPS). It provides empirical support for the view that development actors must support organizational policies that build the individual capacity required to engage in the reform process.     

Neoliberal economic reforms,the rich and the poor in Bangladesh

Bangladesh has been implementing neoliberal structural adjustment policies since the early 1980s. This article analyzes the economic and social outcomes the reform policies have created in the past two decades. It argues that the reform policies, instead of distributing benefits among different societal groups, have brought an economic windfall mainly for the business and industrial class in Bangladesh. Compared to the 24 families of erstwhile United Pakistan, there is now a small group of 40 to 50 families who effectively control the total industrial and financial assets of this poor nation. The vast majority of other societal groups and classes- the industrial and agricultural labor, small businesses, marginal and small farmers, and urban and rural poor — are left out by the reform agenda. The lack of policies of distributional justice has resulted in widening disparities in income and wealth between the low and high strata of the society and deterioration in the overall poverty situation of the country.     

Neoliberalism and the future world

The persistence of illiberal or predatory systems of political and social power in circumstances where neoliberal market economies have advanced rapidly is often explained in terms of the last-ditch resistance of vested interests, weak institutions, or an absence of social capital. In contrast, this study argues that these seeming paradoxes are often integral to a process of neoliberal reform in that they enable the expropriation of public assets and policy agendas necessary for the emergence and consolidation of powerful private interests. At another level, the rise of neoconservative policy agendas and the blurring of state-business relations within the neoliberal camp itself may be seen to undermine the epoch of neoliberalism. This article argues that the shift toward various manifestations of empire is a political response to crises designed to preserve those hegemonic relations established by neoliberal agendas. These various mutations of markets' predatory oligarchies, illiberal politics, and empire possess a substantial internal coherence.     

Wohlfahrtsstaatlicher Wandel zwischen „Arbeitszwang“ und „Befähigung“

The concepts of “workfare”, an “enabling” or a “social investment state”, respectively of an “activating welfare state”, share the idea of a paradigm shift of welfare state policies resetting the classic tension between decommodification and (re-)commodification. In this article, a comparative analysis of activating labor market policies in Denmark, Germany and the UK is giving evidence that in all countries recommodification has become a major goal, put into practice by both an increase of workfare and enabling policies. Different reform paths, however, can be identified as the emphasis on enforcing and enabling instruments as well as the particular mix of the instruments varies due to the country-specific background. Hence, the difference of reform policies is supposed to lead to a path dependent implementation of the paradigm shift of welfare state policies.     

Grassroots Bureaucracy: Intergovernmental Relations and Popular Mobilization in Brazil's AIDS Policy Sector

How does the state ensure the implementation of national policies in a context of decentralized political authority? This article identifies a new strategy utilized by national bureaucrats to regulate the behavior of subnational politicians: mobilizing civil society as government watchdog and political advocate. In the context of decentralized governance, in which local politicians administer most social sector programs, reform‐minded bureaucrats often find that they have little control over the implementation of their progressive policies. In Brazil's AIDS policy sector, however, bureaucrats have ensured the successful implementation of their policies by developing allies outside government. These state actors—here called activist bureaucrats—have been largely overlooked in the English‐language literature, yet they form a new layer of politics in Latin America.     

Globalization,international coalitions,and domestic reform

This article considers the impact of China's insertion into the global political economy on the nature of political power in China. It argues that for most of the period of the transition from socialism, state leaders attempted to protect domestic interests where possible from the perceived detrimental impacts of globalization. However, China's entry into the World Trade Organization (WTO) marked a key shift in this strategy. Through the creation of an international coalition for reform, key state leaders used WTO entry as a tool to enforce change on reluctant domestic constituents, rather than the earlier strategy of protecting them from competition and change. While domestic reform efforts have been responsible for many of the changes to the Chinese regime, external actors and interests have also played an important role in altering the fundamentals of politics in the People's Republic of China, and in particular, changing the raison d'être of Communist Party rule.