Creating Surplus Labour: Neo-Liberal Transformations and the Development of Relative Surplus Population in Indonesia

ABSTRACT

Many among the world’s population are surplus to the requirements of capital accumulation. These are people who become engaged in precarious employment both in rural and urban contexts and those who are involuntarily unemployed. Their presence has been particularly acute in “peripheral countries.” Mainstream economic literature explains this in terms of the dual labour market, where it is argued that surplus labour will eventually disappear with market-led economic development. Contrary to this explanation, this article argues, using Marx’s concept of relative surplus population (RSP), that under the existing neo-liberal framework such labour vulnerability is continually being created. This article charts the developmental history of Indonesia and demonstrates that the growth of RSP is an outcome of a neo-liberal transformation which favours capital accumulation at the service of global markets. Neo-liberal adjustments shape the development of RSP in three related ways. First, the adjustments change class relations and transform state orientation. Second, the reconfiguration of class dynamics and the state shapes the model of accumulation. Third, the model of accumulation eventually affects the size of RSP. It is argued that the disconnection between the domestic agricultural development and industrialisation has contributed to the maintenance of a large RSP in Indonesia.     

My Business Pays Me: Labourers and Entrepreneurs Among the Self–Employed Poor in Latin America

Are the independent economic activities of poor people “petty commodity production”—an informal way to earn a subsistence wage? Or are they “microentrepreneurship”, a launching point for capital accumulation and growth? This paper draws on fieldwork in Bolivia, Peru and Guatemala, focusing specifically on the poorest businesses. In–depth interviews indicate that even the smallest–scale producers, merchants and service providers have goals of “improving” their business and “growing” their capital, not unlike their capitalist counterparts. Yet, while growth is desirable, maintaining one's business as a steady source of income is a sufficient achievement for many. Poor self–employed people are both “labourers” and “entrepreneurs”; the key macro–level question becomes, not “Do petty–commodity producers have different goals than capitalist entrepreneurs”, but “What resources are lacking, and what obstacles exist, that keep many microentrepreneurs in low–yield activities, with little opportunity to grow their resources?”     

Chaebol and the Turn to Services: The Rise of a Korean Service Economy and the Dynamics of Self-Employment and Wage Work

ABSTRACT

This article examines the growing insecurity for the Korean self-employed who were once responsible for a large proportion of domestic service operations. Since the 1980s, changing regional and domestic economic circumstances, the restructuring of regional and chaebol manufacturing operations and liberalisation of the domestic service economy had led to enterprise diversification into the distributive sectors and the systematisation of the domestic service economy. Conducting a historical analysis of service sector development and decomposing the Korean Economically Active Population survey (1989–2011), this article charts the process of Korea’s distributive sector development and its effect on the self-employed. It argues that chaebol systematisation of Korea’s service sector consolidated the domestic economy after 1997 and exerted pressure on the country’s self-employed. Large businesses formalised the service sector, displaced the self-employed, and instead generated mostly non-regular wage work, proletarianising a significant segment of the service workforce.     

从复苏到新的增长--东南亚经济形势分析

进入21世纪以来,东南亚经济可谓是一波三折,一些国家刚刚摆脱金融危机的阴影,逐步地走向复苏,马上又面对世界经济不景气,尤其是美日等国市场需求的萎缩,紧接着又受到非典型肺炎和禽流感的冲击,真可谓是屋漏偏遭连夜雨.尽管存在这些不利因素,大部分东南亚国家的经济在近年来仍然取得了可喜的成就,一些国家正在艰难地复苏,一些国家已经出现新的增长势头.     

Neo-Liberalism,Mining and Labour in the Indian State of Odisha: Outlining a Political Economy Analysis

In a context of mining privatisation and a drive towards labour informalisation in India, this article investigates the implications for labour of the neo-liberal agenda in the mining sector of the Indian state of Odisha. This is part of a broader research project investigating the social dynamics underlying the neo-liberal project in Odisha. The article initially summarises previous analysis of the political economy of mining privatisation policies in order to provide the background for understanding the implications of neo-liberal mining policies for labour. Acknowledging the complexity of labour’s situation and future, the article focuses first on mining labour relations and labour conditions in private iron ore mines; and second, the article seeks to detail the implications of the expansion of opencast mining in forest areas on the livelihoods of that part of the population – mainly consisting of Scheduled Tribes or Adivasis and partially of Scheduled Castes or Dalits – who in some measure depend on forest resources and/or agricultural land in mining areas. In sum, the article attempts to raise the issue of the dynamic interaction between the reproduction of a specific, local, socially and politically dominant class, and the reproduction of labour fragmentation within the neo-liberal turn of capitalism.     

Mitigating the Risk to Primitive Accumulation: State-building and the Logging Boom in Solomon Islands

Abstract

In recent years, various forms of inter/transnational state-building have become increasingly common as a way of managing the perceived risk posed by dysfunctional governance in so-called fragile states to Western security. In Solomon Islands, the Australian government has led a robust and expansive regional intervention, designed to build the capacity of the Solomon Islands government and bureaucracy to provide more effective governance. Dominant approaches to state-building link state failure with a failure of development and typically involve considerable efforts to promote economic development through the establishing of institutional structures seen to be supportive of liberal markets. Though economic activity has expanded considerably in Solomon Islands following the initial 2003 intervention, much of this has occurred in the unsustainable logging industry, whose expansion is reliant upon primitive accumulation. Therefore, to the extent that the Regional Assistance Mission to Solomon Islands' (RAMSI) state-building programmes have supported market-led growth, they have unwittingly acted to mitigate the risk to primitive accumulation. However, the logging boom occurring on RAMSI's watch is likely to lead to future social and political instability, either as a result of resource-depletion or due to bottom-up forms of social conflict around the destruction of local habitats.     

An anatomy of dispossession: post-apartheid land rights and farm dweller relocation in the context of a private game reserve initiative,northern KwaZulu-Natal

This article is a detailed examination of the impact that the development of a private game reserve initiative in northern KwaZulu-Natal had on the lives of farm dwellers in the late 1990s. The reshaping of this landscape for ecotourism purposes – a decision taken by a group of private landowners – meant that the residents of the former cattle farms were relocated, a process which had serious consequences for them. The outcomes of relocation from the farms are explored through conversations with the relocated farm dwellers. In an attempt to convey the texture of the emotional geography of dispossession, we document both the tangible and the less tangible losses suffered from the farm dwellers' point of view, as well as their experience with the state bureaucracy. The legal and bureaucratic process leading up to the relocation is then retraced through court documents and other archival evidence. At one level, this case raises questions about the capacity of the post-apartheid South African land reform programme to secure the land rights of marginalised groups such as farm dwellers, despite legislation passed to protect them. At a deeper level, this article is about the conceptual inadequacies of the law. While the law finds it easy to render visible and to protect (saleable) private property, it struggles to fully recognise more complex land relationships. The people whose experience is described in this article felt disempowered, their lives effectively invisible. We problematise the continuing primacy of private property in post-apartheid South Africa and argue that the voices of those with other histories on the land should receive more serious attention.     

Policy Failure in the Triangle of Growth: Labour Market,Human Capital,and Innovation in Spain and Italy

This article focuses on the Italian and Spanish models of growth and analyses labour market, human capital and innovation policy reforms since the mid 1990s. The comparison with France and Germany shows the constraints that have hindered the rise of institutional complementarities and the competitiveness of the two Mediterranean countries already before the introd uction of the euro and the outbreak of the 2008 crisis. The analysis highlights both similarities and structural differences between Italy and Spain and demonstrates the long-term institutional conditions that explain why the economic breakdown has had such a deep impact on the two countries.     

稳定:经济与社会发展的基本前提--泰国威权政治的作用剖析

西方学者几乎毫无例外地将发展与民主制度联系在一起.然而,泰国,包括其他一些战后取得飞速发展的东亚国家,恰恰是在威权政治所形成的稳定的政治局势之下获得发展的.由选举所产生的文人政府,尽管他们的组阁符合民主程序,其领袖亦可称为出色的政治家,但他们常常只能维持一个只能以月计的短期政府,政局始终处于混乱状态之中,以致陷入恶性循环的怪圈.因此,稳定是泰国及其他东亚国家取得经济与社会飞速发展的基本前提.     

Resurgence of post-crisis neoliberalism: labor law reform and the return to “business as usual” in Lithuania

ABSTRACT

The economic crisis of 2008–2010 revealed the extreme vulnerability of Lithuania to global financial shocks. However, instead of reforming Lithuanian capitalism, the domestic political and business elites chose to write off the enormous social and economic costs incurred during the 2008–2010 crisis as an expense of continuing doing business in a way that was typical to the pre-crisis, booming years of ‘the Baltic tigers’ (2000–2007), i.e., relying on the unstable and inequitable growth model based on foreign capital inflows and remittances, suppressing and keeping wages and taxes on capital low and exporting cheap-skilled labour to the core EU countries. We illustrate this return to business as usual in Lithuania by analyzing the political process of contestation and eventual consolidation of neo-liberal consensus among domestic political actors that resulted in the passage of the new Labour Code enabling creation of ‘flexible’ labor markets. Social and political implications of the resurgent neoliberal hegemony in post-crisis Lithuania are discussed.     

China's Creative Industries: Copyright,Social Network Markets and the Business of Culture in a Digital Age

This article analyses the decline of Japanese labour unions and their struggles for revitalisation from a power resources perspective. It demonstrates first that the power resources of labour unions declined in the neo-liberal political process of labour-market deregulation as a result of lower union density, the intensified conflicts of interest among unions and their reduced access to policy-making. Although this situation induced labour unions to change their interest representation to some extent and organise an increasing number of non-regular and marginalised regular workers, the article claims that they are still concerned about protecting the vested interests of regular workers in large companies and their efforts to organise non-regular and marginalised regular workers have been insufficient. In addition, although community unions have aimed to organise these workers extensively, their human and financial resources are too small to do so and revitalise the labour movement.     

Development Cooperation and Dependency: An Analysis of Brazilian-Spanish Cooperation in Latin America Between 2010 and 2018

Based on analysis of Brazilian-Spanish cooperation in Latin America, this article aims to contribute to the discussion on whether South–South Cooperation (SSC) represents an alternative model with specific and differentiated objectives, or if it largely reproduces the constraints and interests traditionally associated with the North–South model, but with new institutions and actors. We start by analysing the main criticisms levelled at cooperation in the literature, emphasising the identification, review and comparison of the mechanisms of domination and dependency that derive from the bilateral and multilateral practices of traditional development cooperation. We then construct a synthetic dependency index to measure the ability of Spain and Brazil – as representative cases of North–South Cooperation (NSC) and SSC with Latin America – to influence the foreign trade, investment and foreign policy decisions of aid recipients, and to empirically contrast the lower level of verticality that much of the available literature assumes about SSC schemes. The empirical analysis suggests significant differences between NSC and SSC in terms of their ability to reproduce dependency patterns and validate the discourse that tends to identify the latter as an alternative cooperation model.     

Politics and the Price of Rice in Thailand: Public Choice,Institutional Change and Rural Subsidies

Despite the Thai state’s long record of rice market interventions, historically politicians failed to leverage rice subsidies in their pursuit of political support, notwithstanding the large number of farmers in the country. Since Thaksin Shinawatra’s election in 2001, though, each government has subsidised rice producers, although at varying degrees. What explains this change? This article traces the four-decade history of rice price support programmes. It is proposed that these policies be interpreted through the dual lens of institutionalism and public choice theory, demonstrating how political institutions have shaped incentives for politicians to cater to different constituencies. During the pre-1980 period, under authoritarian regimes, Thai leaders applied rice price policies to benefit urban consumers and the government. From 1979 through 2000, following implementation of the block-vote system, rice interventions were used to appeal to voting intermediaries like rice millers, as bargaining chips among competing parties and as stopgap measures to diffuse farmer protests. Since 2001, responding to the electoral system created by the 1997 constitution, politicians have appealed directly to the voting public, seeking broad-based support via subsidies. The analysis highlights the impact that shifting institutional incentives have on politicians’ actions and thus the emergent policies.     

东盟自由贸易区与东盟合作机制--东盟合作机制变迁的社会学考察

东盟自由贸易区建设使东盟合作机制具有了越来越多的正式色彩.这种变化并不是事先刻意而为的,而是为解决协议不执行问题、通过讨价还价逐渐演化而成的.东盟国家之所以没有一味地固守其传统的合作特性,而是有所变化,主要是因为作为一种经济合作安排,东盟自由贸易区不仅关系到东盟国家的经济增长和政治安全,也关系到东盟作为整体在国际上的信誉.     

From Miracle to Crisis and Back: The Political Economy of South Korean Long-Term Development

This article analyses the process of economic development and associated political transformations in South Korea since the mid-1960s. It claims that, as in the rest of East Asia, capital accumulation in South Korea has revolved around the production of specific industrial goods for world markets using the relatively cheap and highly disciplined local workforce for simplified labour processes, as appendages of the machine or in manual assembly operations. This modality of accumulation resulted from changes in the forms of production of relative surplus value on a global scale through the development of computerisation and robotisation, and the concomitant transformation in the productive attributes of the collective worker of large-scale industry. The article identifies the main characteristics of the political and economic relations through which the structural transformation of the Korean society came about throughout the period studied, as a form of realising the global unity of the process of capitalist development. This analysis not only supports the claims made about the specific characteristics of the East Asian processes of capitalist development. It also shows the intrinsic unity of seemingly diverse political-economy processes, as forms of realisation of the transformations of Korean society.     

Patriarchal Investments: Marriage,Dowry and the Political Economy of Development in Bangladesh

This article explores why dowry inflation persists in Bangladesh, despite the country being widely heralded as a development success, especially with regard to gender. The article asks three questions. Does rural Bangladesh show changing patterns of marriage similar to those reported elsewhere in South Asia and more broadly? What might explain the persistent spread and inflation of dowry payments? How might changes in marriage and the inflation of dowry be related to the broader political economy of development in Bangladesh? Analysis of primary data from rural Bangladesh affirms shifts in norms of marriage arrangement and conjugal relationships, but also emphasises considerable continuity. The political economy of development in Bangladesh is briefly described. Dowry is argued to function not as compensation for perceived weakness in women’s economic contribution, but to bolster men’s. In mobilising “additional” resources, dowries help sustain the economic system and indicate ongoing commitment to cultural idioms of masculine provision and protection, against a background of widespread corruption and political and gender violence.     

The historical evolution of settlement patterns and trends in South Africa: Unlocking the log-jam of the unsustainable settlements impasse

Abstract

This article ascertains the underlying causes of the persistence of unsustainable settlement patterns and trends in post-apartheid South Africa. Despite positive development planning policy intentions in the post-apartheid South Africa, glaring deprivation and spatial inequality has persisted. The article is grounded in a chronological analysis of demographic, functional and regional economic dynamics at the different epochs of South Africa's history as well as the settlement policy and planning intentions. Its main finding is that the persistence of unsustainable settlement patterns and trends in post-apartheid South Africa is largely a result of misplaced settlement policies and strategies. They give knee-jerk responses to global, regional, national and local dynamics shaping settlement patterns and trends. The recommendation is that development planning initiatives should be informed by the dialectics of settlement facets at local, regional, national and global levels for them to deal decisively with the historical problem of unsustainable patterns and trends.     

‘You have to be with God and the Devil’: Linking Bolivia's Extractive Industries and Local Development through Social Licences

The social licence is an instrument that establishes the conditions for community acceptance of an extractive industry project in a locality. It emerges at the interface of debates on corporate social responsibility and indigenous rights in Bolivia. In this article, relations between mining companies and local communities are explored, with a particular focus on the role of participation and firm‐based commitments to local development. The conclusions point to the limits of voluntary firm initiatives in strengthening local sustainable development. A more demanding regulatory instrument is required that may facilitate mutual agreement on the terms by which resources are extracted.     

The establishment of the South African Development Partnership Agency: Institutional complexities and political exigencies

Since 2007 there has been discussion to formalise, rationalise, coordinate and provide structure to South Africa's development cooperation through the establishment of a centralised South African Development Partnership Agency (SADPA). Progress in rolling out the new institution, however, has been extremely slow, owing to the political and technical complexities of South Africa's institutional environment. This paper elaborates on the rationale and driving forces which have led to the establishment of SADPA and the steps which have been taken to gradually operationalise the new agency and the partnership fund dedicated to providing development support on the continent. As plans move forward, will SADPA be expected to manage all of South Africa's development cooperation — bilateral, multilateral, regional, trilateral — as well as concessional loans, humanitarian aid and development financing, public and private? Clarity of roles and coordination is critical. The paper will examine the different mechanisms for the financing, implementation and oversight that need to be in place to take forward Pretoria's development cooperation, and the challenges of leadership, coordination, accountability and information management that face the new agency.     

俄罗斯战略性主导产业增长方式:能源工业的实证分析

对经济转轨以来俄罗斯能源工业的研究表明,作为战略性主导产业的能源工业在俄罗斯经济转轨中发挥了巨大作用.在俄罗斯转轨危机中,能源工业一直保持了较高的增长速度,并率先走出经济危机.对经济转轨前俄罗斯能源工业的回顾表明,计划经济体制下粗放式开采是制约苏联油气开发后劲的根本原因.对此我们要给予充分客观的认识.本文从设计采收率、劳动生产率等方面论述了经济转轨以来俄罗斯能源工业的粗放式经济发展方式的进一步加强.深入分析了俄罗斯能源工业的粗放式经济发展方式加强的原因.本文指出,经济转轨中俄罗斯能源工业的经济发展方式的转变,关系到整体经济发展方式、经济增长速度和经济结构调整.