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Lecture 4

GGR221 Lecture 4.docx

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Deborah Leslie

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th GGR221 New Economic Spaces Lecture 4, Jan 27 Organizations around the space Spatial division of labour Different industries, jobs within the industry are created What is dominant, marginalized, interrelationship in time period, across space - Some authors see this as a process of structural determinism – place fed different hands - Geology - Embedded in a place – capital investment - i.e. Warde thinks of this in terms of a geological metaphor – as fixed - however, both Gregory and Massey argue that place is not passive in this process - place is a reflection of capitals over time – certain kinds of factories, industries, transportation, communication infrastructure, knowledges – reflects future realm - legacy of past waves influences future waves of investment - two way process space and investment – Detroit as a wasteland Example of Toronto: Gooderham and Worts - First Wage – grist mill and later distilleries - Deindustrialization in 1990s - 5 wave: physical landscape attractive to new cultural/craft industries/ tourism – textile, designer in city core Artscape building - Distillery district Example of Kichner-Waterloo - 1800sMennoite framers - 1830s German craft industries - 1940 Metal working - 1990s: Silicon Valley North Example: deindustrialization in the North of England - Sheffield : steel making - Chaning sectoral division of labour, but also changing gender division of labour (specific job – steel no longer dominant, male jobs are lost The full monty – how many males are put out of work – Call centers in the North - Communication skills, industry – taking advantages of circumstances in the past – a lot of layoffs for male workers Path dependence - Path conditioning future - How difficult it is for regions to overcome spatial divisions of labour – - How inherited routines and institutions shape way regions respond to challenges – habits, norms institutions – intangible things – affect decision making process - Industrial history is embedded - Drawing on evolutionary economics of Paul David and Brian Arthur - Institutions matter to a place – future trajectory - Path dependence: “a probalistic and contingent process in which at each moment in historical time, the suite of possible Paul David – QWERTY - Mirror accident of history – keyboard – dominant – stuck, locked in to a configuration – a region as well – habits, norms of all kind, culture – difficult to unlearn these habit and change - Early decisions reverberate, close alternative paths - ‘lock-in’ certain patterns of normalized habits that it is difficult to unlearn because of stickiness of the past - Ruptures – major shock enforce them to change – - Change derives from spatial structures and is therefore path and place dependent – reservoir of the past - Creation - Lock in - Decline of the lock in - Summary - History of industrialization – five distinct periods – Kondratieff waves - Each spanning 50 years - Each associated with dominant industries, technologies, entrepreneurs, nations, regions - Particular place can be read as a product of different waves of investment and the role it plays in the broader spatial division of labour - Two-way relationship between place and capital investment – legacy of skills, habits norms, as well as physical infrastructure - Future evolution of a place is path and place dependent Fordism and French Regulation Theory - Explore how crisis tendencies in capitalism are contained - Crisis to produce more than demand - “Golden age” – 1945 ~ 1995 The French Regulation School - First developed in the 1970s and 1980s - French economists such as Aglietta, Lipietz, and Boyer - Capitalism is characterized by fundamental contradictions – crisis prone - How does capitalism resolved inherent crisis tendencies and achieve long periods of growth and stability? - Two thing to understand - Regime of accumulation: long term stabilization between production and consumption – consensus between production and consumption – - Mode of regulation: set of internalized rules and social procedures which hold a regime together – whole set of actors – government, demand and supply - Laws norms mores, values, forms government intervention, family, other institutions - Major crises indicate that a mode of regulation is not adequate to a regime of accumulation (outdated forms of regulation) - Or potential of a regime of accumulation exhausted – industries no long
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