DJnomics and the transformation of the developmental state

Since the Asian financial crisis, the Korean state under Kim Dae Jung has witnessed significant challenges from foreign capital as well as from organized labor. Regime transition has influenced the social and political relations between the state and big business (chaebol). The traditional developmental state has gradually eroded as the power and capacity of the state was increasingly affected by economic globalization. The Korean economy has been transformed from a traditional developmental state model characterized by a hierarchical and authoritative relationship between the government and conglomerates into the market-oriented economic model.     

Soviet Assessments of Economic Reforms in Other Socialist Countries

A prominent American economist pieces together and analyzes Soviet assessments of economic reforms in other socialist countries. Included in the author's analysis are studies of Soviet specialists investigating changes in the administrative organization of the state sector, planning, pricing, banking, labor, agriculture, nonstate activity, and foreign economic relations, within the framework of a socialist planned economy. Also covered are more recent Soviet studies focusing on privatization, marketization, and government regulation in the transition to a capitalist market economy—work that influenced decisions about economic reforms in the Soviet Union. Journal of Economic Literature, Classification Numbers: P21, B20.     

Restructuring the Mechanism of Foreign Economic Relations in the USSR

An up-to-date paper by the Deputy Chairman of the State Commission on Foreign Economic Relations, USSR Council of Ministers, details recent economic reforms in the foreign trade sector of the USSR. Particular emphasis is placed on direct business relations between Soviet enterprises and their foreign counterparts, and on joint ventures with CMEA partners as well as firms in Western and developing countries. Anticipated changes in the role exports and imports are to play in the Soviet economy are also discussed. Journal of Economic Literature, Classification Numbers: 052, 124, 420.     

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.     

The Japan-Soviet far east trade relationship: A case of the cautious buyer and the overconfident seller

Given Japan’s resource scarcity, the eastern Soviet Union’s wealth of natural resources and dire need for large infusions of investment capital and technology, and the close distance between the two, one would believe that trade between the two countries would be quite sizable. However, the converse is the case, with each country providing no more than 2 percent of the other’s foreign trade. To explain this phenomenon, it is necessary to explore the intrinsic and self-imposed obstacles to expanded Japanese-USSR trade. It turns out that both countries do not pursue trade for mutual advantage but rather seek an entirely different set of ulterior zero-sum motives. The article discusses what would appear to be a natural “fit” between the two countries’ needs and abilities, explores the extensive joint Siberian development projects of the 1960s and 1970s to explain the undesired side effects of Japanese-Soviet trade, details Japanese and Soviet business, government, and economist arguments for and against expanded economic relations, explains the maldevelopment of a resource-extractive versus commodity-producing eastern USSR as a product of climate, labor shortages, investment policies, and a Stalinist-planned system, outlines Japanese desires to accrue political advantages from its trade with the Soviet Union, and predicts the inability of Gorbachev’s economic reforms to truly expand Japanese-Soviet trade at a low cost to its larger geopolitical concerns. Although continuing private Japanese efforts are being made to work out joint venture deals with the USSR (thus belying the notion of a completely consensus-unified “Japan, Inc.”), they are still anomalies. Ultimately, if expanded trade ties are to occur (and indeed it is this article’s contention that they must for the USSR to survive as a superpower), then they must be made on Japan’s terms.     

Problems and profitability of direct foreign investiment in China: An analysis of the survey data

By analyzing a survey in the Tianjin area, this article investigates the problems and profitability of joint ventures in China, and draws some policy implications. The authors find that there are a number of systemic constraints on the profitability of joint ventures, such as input and foreign exchange shortages, rigid labor policies, conflicts between business partners, and uneasy relations with state authorities. The article concludes that unless the investment environment is improved, China will not succeed in the competition with other developing countries in attracting the foreign capital needed for its modernization. Chung H. Lee is a professor of economics at the University of Hawaii at Manoa and research associate at the Institute for Economic Development and Policy of the East-West Center. He is also author ofThe Economic Development in Japan and Korea (Praeger 1990) andTrade and Investment in Services (Westview 1988).     

Introductory Comment on the Consequences of Chernobyl'

Property rights in the new phase of economic reforms in the Soviet Union are reviewed and analyzed by a prominent British economist. The paper details laws and decrees on leasing, land, inventions, joint-stock companies, securities, hard currencies, markets, small business, a state holding company, foreign investment, banking, taxation, monopolies, as well as on property ownership and business units in general. The main federal measures are then compared with relevant provisions in the so-called Shatalin Plan. Included in the effort is a section on terminology pertaining to destatization as well as an assessment of the process of privatization as of early December 1990. Journal of Economic Literature, Classification Numbers: 052, 124, 612.     

In Defense of Sovietology

A leading specialist on the Soviet economy presents a detailed overview and evaluation of the history of Western studies of the Soviet economy. Foci of the article include: debates about the nature of the Soviet economic system; the uses of qualitative and quantitative evidence; controversies over rates of economic growth and growth of productivity, comparative size of the economy and the burden of defense expenditures; analyses of the severity of economic problems and their implications for the future viability of the system. The article concludes with an evaluation of the accomplishments and shortcomings of economic Sovietology. Journal of Economic Literature, Classification Numbers: P27, P24, P52.     

Labour militancy in Taiwan: Export integration vs authoritarian transition

Since the 1980s, the Korean state has witnessed significant challenges from big business (chaebol) as well as from organized labor and popular sector. Regime transition has influenced the social and political relations between the state and big business. Thus the central argument is therefore that the developmental state has gradually eroded as the power and capability of the developmental state was increasingly affected by economic liberalization and political democratization. At the same time the state and big business are increasingly connected within more institutionalized networks. The argument will be advanced that the traditional relationship between the state and big business, which was characterized as one of state domination and the subordination of big business, has been changing more radically than the statist analysts presumed.     

Public Opinion on Privatization: Republic Differences

An American Sovietologist and two Soviet social scientists summarize the results of a public opinion survey on privatization carried out by Goskomstat SSSR. The survey was conducted in the fall of 1990. The analysis of data made in 1991 included all union republics and the Baltics. Specific survey questions were designed to test urban residents' attitudes toward private ownership of business, sales of state enterprises to individuals, hiring by private business, and stock ownership in private enterprises. Included in the paper are correlations of attitudes toward specific issues suggesting a deeper, more central mindset toward privatization. Journal of Economic Literature, Classification Numbers: P20, P12.     

Labor Unrest and Movements in 1989 and 1990

An American political scientist analyzes the Soviet miners' strikes of 1989 and their consequences during 1990. Focusing on the three coal-mining regions of the Kuzbas, Donbas, and Vorkuta, the paper is based on rare access to official and unofficial local newspapers and interviews. Included are analytical accounts of similarities and differences in the strikers' demands and strategies, as well as of efforts to form and sustain new local, regional, and national labor unions. The conceivable outcome of the unrest and organizations emerging in 1989 is discussed in light of developments through the end of 1990. Journal of Economic Literature, Classification Numbers: 124, 830.     

The Television Industry in Post-authoritarian Indonesia

This article examines the rise of capital in the Indonesian television industry. Following Richard Robison's seminal book, Indonesia: The Rise of Capital, it suggests that a range of powerful economic and political interests have determined the dynamics of the evolution of this industry in Indonesia. During the heyday of the New Order, a commercial television industry was created in ways that suited the expansion of the business interests of oligarchic families. In the post-Soeharto era, a major interest of capital in this industry has been to overcome regulatory mechanisms that were put in place before the euphoria of reform and democratisation had abated. Moreover, there are strong connections between capital in the television industry and political groupings contesting power within Indonesia's democracy. While capital accumulation in this industry may not be as massive as in some others, the unique characteristics of television as a medium ensure that exerting control over it remains vital.     

RETHINKING ASIAN MOBILITIES

ABSTRACT

Vietnam's economic reforms have generated much praise for the country's rapid “opening” of its markets, as if the Vietnamese nation had previously existed in a state of isolation, closed to broader global influences and exchanges. Such discourses overlook the importance of transnational circulations of people, goods, technologies, and expertise during the socialist era that were vital to Vietnam's postwar national reconstruction and continue to play a role in post-socialist economic transformation today. This article traces the socialist pathways of labor migration between Vietnam and the former Soviet Bloc (specifically, East Germany) in the 1980s, mobilities that are generally absent in studies of contemporary export labor industries. Based on multi-sited ethnographic and archival research, the author follows Vietnamese workers first to the East German factories where they labored as “contract workers,” and then through their subsequent return and reintegration into Vietnamese society after the collapse of the Soviet Union. These mobilities bespeak of an alternative history and formation of diasporic communities that are little acknowledged or addressed in literature on labor migrations, and yet are important to understanding emerging forms of stratification today in Vietnam. Moreover, an analysis of early non-capitalist experiences with overseas labor regimes in the 1980s provides insights into contemporary Vietnamese governance practices that promote—rather uncritically, similar to other “emerging countries” —export labor as a nation-building strategy to reduce endemic poverty and develop a late socialist country.     

Land reform and Bimas in Indonesia

Underlying the current process of industrial restructuring in Korea is the weakening of the social and political comerstones of Korea's “miracle” economy: low wages maintained through labor market segmentation and suppression of labor movements, state leverage over the chaebol and labor, the containment of the middle class through a state-of-war mentality, and the decentralization of industry away from the capital city through the creation of countermagnets and growth poles. Korea's success in generating its own version of a post-fordist regime of accumulation will depend as much on changes in social and political institutions as it will on pursuing an industrial path of flexible specialization.     

Gorbachev: “Radically” Implementing Brezhnev's Reforms

Prospects for realization of the current round of economic reforms proposed by the new Soviet leadership are critically analyzed in light of the fate of similar measures embodied in the 1965 (Brezhnev/Kosygin) reforms. Levels of genuine restructuring incorporated in the present reforms are thought to be inadequate to support the major objectives of steamlining decision making and increasing autonomy at the enterprise level. As in the past, policy changes (now embodied in the labor discipline campaign) rather than reforms per se will be relied upon to provide much of the improvement in economic performance. Journal of Economic Literature, Classification Numbers: 052, 113, 124.     

Gorbachev at Two Years: Perspectives on Economic Reforms

This article examines how the Putin leadership, inspired by the example of Yuriy Andropov, has carried out a comprehensive "sovietization" of the Russian political system by systematically eliminating all alternative sources of power (governors, competitive elections, the media, and private business). Drawing on legislation, the press, and data about the backgrounds and career paths of the post-Soviet elite, the central institutions are compared with their Soviet predecessors and the implementation of this strategy is examined. The roles of military, security and other backgrounds are analyzed. The degree of influence likely to be wielded by the siloviki is also considered.     

Labor Problems in Light of Perestroyka

A number of fundamental labor-related problems to be addressed in perestroyka is outlined by the Director of the Economics Research Institute of Gosplan. The initial presentation covers worker apathy, lack of discipline, poor correspondence between wages and the importance and skill level of various occupations, and unemployment and retraining. As a participant in the first joint Soviet Economy roundtable, he then responds to questions by American participants, a distinguished economist and an eminent political scientist, on the role of cooperatives in absorbing surplus labor displaced by restructuring, and how responsibility for re-employment of dismissed employees will be delegated. Journal of Economic Literature, Classification Numbers: 124, 800.     

Managerial Strategies for Spontaneous Privatization

Two Western economists examine the rapid changes in property and business forms of enterprises in the former Soviet Union using evidence from intensive interviews conducted through December 1991 and involving 80 industrial and commercial organizations. After reviewing the reforms that provided the legal basis for the process, they describe different managerial strategies employed in spontaneous privatization and examine the ensuing changes in contractual relations of firms with other entities such as ministries or banks. The authors also interpret spontaneous privatization on the basis of literature covering property rights and identify several groups that lose or derive benefits from the transformation. Journal of Economic Literature, Classification Numbers: P20, L2.     

Employment Status,Social Capital,and Political Participation: A Comparison of Unemployed and Employed Youth in Geneva

Abstract: This paper examines the relationships between employment status, social capital, and the participation of young people in different kinds of political activities such as contacting, consumer, and protest activities. We focus on the role of social capital for political participation, addressing three related questions: Do unemployed and employed youth display different levels of social capital and political participation? Does social capital favor the political participation of unemployed and employed youth? Is social capital more important for unemployed youth than for employed youth? To address these questions we compare long‐term unemployed youth to regularly employed youth using original survey data. Our analysis suggests that the employment status has only a limited impact on political participation, affecting only consumer actions. In contrast, the social capital resulting from associational involvement is positively correlated to political participation. However, rather than countering the effect of exclusion from the labor market, it plays a similar role for unemployed youth and employed youth.