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Lecture 2

Week 2 - January 13, 14 & 16 - Post WWII

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McMaster University
Labour Studies
John Barkans

LS 2G03 – LECTURE – January 13, 14, &16, 2014 LECTURE – JAN 13 – LYDIA H. sent THE “NEW GREAT TRANSFORMATION”: POST WWII NEW MODEL CAPITALISM - World Exports in Millions $US & shares in % by country group: o 1960-1990: shift of new phase of globalization (neoliberal phase of globalization) – huge value in exports - Countries of the North has grown compared to developing countries trading with each other (South) - Significant development in percentage of trade in the South ** See Chart: -- Decline in % of manufacturing exports in Euro Transition Countries - Developing countries have increased, industrialized countries have lowered - Phase of Globalization is different – earlier phases there was a lot of trade (Belle Époque), but it was completely different - Development in new international division of labour – different then labour in the turn of the 1900’s - Colonialism , imperialism, nation building period - Had trade, but it had it core countries, industrialized and colonies – core countries: they received goods – labour force used as raw materials to manufacture, then they did export some materials, but they could not afford (a lot of trade, but completely different than what it is now) - Core countries manufacturing, exporting to themselves o Countries of the south more evolved in manufacturing more  Teeple, McBride argument: even if trade is well developed in earlier cases, there has been a fundamental shift now (above example) - Different now in contemporary phase of globalization: shifting global division of labour (whose doing the manufacturing, exported from where, etc.)  Key Difference between Teeple and McBride on contemporary phase of globalization: o Teeple: nations losing power to the markets and international global, political bodies (WTO, etc.) -- Nation state is disappearing o McBride: Nation states are facilitators – by states themselves.  Still have power, they make choices based on their countries that allow this to take place – a lot of differences, variations, in policies that governments pursue – variances in how many social policies, how generous social welfare policies are.  All nations not going down the same path (political choice)  Nation states have facilitated this shift toward global governments - “Making of Global Capitalism” – opposed to Teeple’s perspective (the idea that states have become powerless, marginalized, etc.) – states have to be placed in the center of any explanation of the making of global capital, and understanding the contemporary phase of globalization o Main Argument: states are responsible for overseeing contracts, rules, crisis, stabilizing crisis, currencies, reproducing class relations? Nation States.  Multinational corporations depend on states to ensure all of these  Nation state therefore needs to be in the center (similar to McBride’s argument)  Place the US at the center of creating our current power source - Review: argument if this is a new phase of globalization - Understanding of Teeple and McBride’s differences and similarities - Munck Reading: How the world changed, how these features altered LECTURE – JAN 14 POST WWII… continued - Free Market? Or should state dictate it? - Karl Polanyi (The Great Transformation) o Theory of the double movement o Transition: from status to contract (free market capitalism)  Status relations were the mechanism for organizing society • ex. serfs vs. masters vs. lords  the market became a way to organize society • negotiations (contract) • what you were born as (status) could change due to market o Real danger in this transition  no society can/or has functioned on purely market regulation  can’t last long without destroying society  mankind take measures to protect themselves from the market o Counter movement to regulate dominance of market o Ex. Canadian Labour and Social Policies  Transitions (1940s) from “industrial voluntarism” to “industrial pluralism” • By 1970s, union legal, but employer not forced to recognize them • Employment contract was voluntary of employer • No minimum standards, no human rights codes • No benefits, social programs, etc.  CAUSED A SERIES FO RADICAL MOVEMENTS AND STRIKES  Counter movement to this: • State mandated employer must negotiate with union • Market is too exploitive, therefore standards, codes, benefits, etc.  Free market was destroying society, so state needs to intervene for control - Ronaldo Munck and the features of the “new model of capitalism o 5 signature features or main pillars 1. Corporation - Society should be organized or based along major interest groups and they negotiate policies, etc. --- 3 major interest groups: State, Capital, Labour - Consensus formed that workers are a major interest groups and deserve right to negotiate with employers with mediation by state - Example at international level: International Labour Organization (ILO) -- An ag
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