Economic and Political Weekly September 13, 2003 3892

Labour Institutions
in a Globalised Era
essays cover China, Russia, Germany, the
Czech Republic, Hungary, and Poland.
While the nine essays in the volume reach
across diverse areas of the world, the
volume aims to weave two central themes
throughout the essays.
The first theme is that labour institutions
are extremely powerful social forces that
continue to influence the politics of eco-
nomic reform. Therefore, a deeper under-
standing of industrial relations across
countries is vital for informed debates on
the political economy of globalisation.
Moreover, Candland and Sil argue that
current literature on political economy
views the recent economic adjustments as
a top-down process where policy choices
are the result of elite political strategies.
In contrast, the essays in this volume
highlight the bottom-up processes and the
political interests of social groups and
institutions such as organised labour
that also affect economic adjustments.
Finally, Candland and Sil argue that cur-
rent work on comparative industrial rela-
tions focuses largely on OECD countries.
This volume attempts to shed light on the
unique situation in late industrialising and
post socialist countries, where important
changes in industrial relations are also
taking place.
The second theme asserted in this vol-
ume is that although globalisation creates
common pressures on national labour
institutions, the responses to these pres-
sures differ in each country. The common
pressures globalisation creates on labour
are by now well known: declining wages,
welfare benefits and employment security
to enhance competitiveness; reduced size
of trade union federations; the growth of
underemployment and the informal sec-
tor; and a growing gap in incomes and
status within the labour force, to name a
few. At first glance, these similar expe-
riences across countries support the con-
vergence view of globalisation, which
asserts that globalisation homogenises
countries economic and political
systems. However, Candland and Sil
argue that the convergence view falls
short when applied to the responses
workers and labour institutions through-
out the world have taken toward these
pressures. The essays in this volume at-
tempt to show empirically that different
countries existing national and local in-
stitutions remain influential and keep
nations labour relations and their re-
sponses to global pressures unique.
Rather than using the conventional
regional classifications used in most com-
parative studies on globalisation [Thomas
1995], the editors offer a fresh classifica-
tion axis by political and developmental
histories. To this end, the volume provides
interesting insights into the differing
background of labour regimes in these two
groups of countries. The late industrialising
countries are characterised by a previously
strong state that was heavily involved in
economic development and labour regime
formation. Most also had feudal property
structures, a high concentration of capital,
massive semi-skilled and unskilled labour,
and dire poverty all of which shaped
their labour markets. Unlike the late
industrialising countries, the post-social-
ist countries had no recent experience of
any private sector or any acceptance that
workers may have interests distinct from
the government. Workers in post socialist
countries had far fewer freedoms and
mobility, yet a higher average standard of
living than those in late industrialising
countries. The majority of labour in
post socialist countries was permanently
urban, while the majority in late
industrialising countries retained strong
rural ties. The wage differential between
skilled and unskilled labour was rela-
tively low in post socialist countries,
and there was relatively little use of
kinship ties and ethnic identities to mani-
pulate wages, solidarity and labour
organisation.
Despite this creative endeavour to move
beyond regional classifications among the
countries covered in this volume, the
editors unfortunately return to the conven-
tional regional classification when com-
paring the volumes countries to western
countries. The editors argue that countries
covered in this volume share similarities
in labour histories and current pressures
The Politics of Labour in a Global
Age: Continuity and Change in
Late-Industrialising and Post-
Socialist Economies edited by
Christopher Candland and Rudra Sil;
Oxford University Press, New York,
2001;
pp xv + 353, price not indicated.
RINA AGARWALA
A
s the world grapples with the rapid
growth of information and tech-
nology, increased ease of capital mobility
and widespread pressure to compete both
nationally and internationally, countless
scholars, activists and policy-makers have
attempted to understand the impact these
recent changes have had on various social
actors. Studies have analysed the impact
on women, on the poor, on minorities,
even on trees. The impact on labour,
arguably the largest social class to be
affected by these global changes, how-
ever, has been surprisingly understudied.
The Politics of Labour is a collection of
essays that boldly attempts to bridge this
looming gap in our current understanding
of the global age. This volume examines
the transformation of labour institutions
in 12 countries within the context of
economic reforms, a reduced state and
increased international linkages.
Importantly, this volume represents one
of the first attempts to create a compara-
tive framework on recent industrial rela-
tions among non-OECD countries. Each
essay studies one country or region. The
essays in the first part analyse the impact
that economic transitions, such as struc-
tural adjustment, have had on labour in
late industrialising economies; these es-
says cover Mexico, India, Pakistan, Bra-
zil, Ireland, and Japan. The essays in the
second part analyse the impact that
changes, such as privatisation, have had
on labour in post-socialist countries; these
Reviews
Economic and Political Weekly September 13, 2003 3893
that differ from those of western countries.
The former had an active state role in
labour regime formation, labour law cre-
ation, and industrial disputes resolution.
They also had a high degree of political
party control over trade unions. Thus they
were closer to state corporatism, while
western countries are closer to societal
corporatism. Today, the editors argue, the
countries in this volume are grappling with
reduced labour benefits and state protec-
tion, as well as increased underemployment
and informal sector labour. Western coun-
tries, however, are dealing more with
unemployment. In addition, the volumes
countries are not entering the tripartitism
of western countries as business interests
and organised labour interests remain frag-
mented in non-western countries. The
editors rightly assert that todays labour
situation has indeed made the third world
and second world divide somewhat ar-
tificial. However, many scholars have also
argued that the divide between western
and non-western countries regarding labour
pressures is also becoming thin [Portes
et al 1989]. Western countries, such as the
US and Italy are grappling with a rapidly
growing informal sector, and countries
such as the US have always had pluralist
labour regimes, not societal corporatist
[Schmitter 1974]. It is unclear why the
editors stop short on their attempt to
move past regional classifications when
it comes to the western and non-western
divide.
Perhaps the most striking gap in this
collection of essays is the dearth of atten-
tion paid to the informal sector. The
informal sector is mentioned in passing at
several points throughout the volume. The
editors point to the growing informal sector
as a shared challenge faced by almost all
countries covered in the volume. How-
ever, not a single essay discusses some of
the detailed strategies that these countries
are taking to address the growing informal
sector. In Mexico, India and Brazil, pro-
moting and protecting informal labour has
become one of the primary agendas for
labour institutions as well as many gov-
ernment authorities under globalisation.
The editors assertion that creating work-
ing class solidarity is difficult with a large
informal sector is somewhat outdated, as
countries across the globe and even the
International Labour Organisation (ILO)
work to incorporate the informal sector
into traditional unions. Moreover, unions
specifically designed to address infor-
mal sector needs have also emerged on
the international labour scene. The
volume uses the term formal sector
interchangeably with organised labour,
implying that all informal sector work-
ers are unorganised. Again, the informal
sector is becoming increasingly orga-
nised, especially in India and Mexico,
by alternative labour organisations
(such as cooperatives and community-
based groups) as well as traditional
organisations (such as trade unions)
[Rakowski 1994, Kundu and Sharma
2001]. A closer look at the impact, cov-
erage, and challenges faced by these at-
tempted solutions would have increased
the analytical power of this volume aiming
to examine the international responses to
globalisation.
Lessons for India
The essays in this volume point to five
variations among national labour situa-
tions, three of which provide useful in-
sights for India. First, countries vary on
whether or not their organised labour
supports economic reforms. The essays on
Mexico, Ireland, and east-central Europe
provide detailed accounts of trade union
federations cooperating with the govern-
ment in implementing liberalisation poli-
cies. This observation is a useful and
interesting reminder of the diversity of
union responses to labour reforms, one
that is often forgotten in India. Second,
some nations, such as Germany, have ex-
perienced a split between the national
labour movement and regional or firm
level movements. Such a trend is also
emerging in India between nationally
affiliated unions and the growing number
of independent unions. It may create
important challenges for Indias labour
movement in the near future, and India
might learn from the experiences of other
countries. Third, a nations political regime
type strongly affects the type of opportu-
nities available to unions and workers.
While a detailed examination of this point
seems beyond the scope of this volume,
it raises an intriguing question as to how
Indias long standing democratic regime
presents its labour force unique challenges
and opportunities.
The remaining two variations noted are
more problematic. First, the current influ-
ence of existing labour institutions de-
pends on their history, leadership and
international contexts (p 303). This is a
very broad argument that makes its theo-
retical and predictive power rather weak.
Second, societal corporatism is more dif-
ficult in large, diverse labour markets with
large informal sectors and a heavy eco-
nomic dependence on developed countries.
With the exception of the last criterion,
India fits into this description. Does this
mean that societal corporatism will not be
possible in India? What then are the
alternative options available? The editors
repeatedly refer to the corporatist/pluralist
model of labour regimes. However, they
do not substantially define the terms nor
do they address the ongoing debate regard-
ing the applicability of these terms in the
developing country context. Rudolph and
Rudolph (1987) for example assert that
these terms do not neatly describe the
Indian labour situation. The continued use
of these terms in the volume, without a
detailed explanation or justification,
draws from the strength of the editors
arguments.
On the whole, this volume presents a
timely and much needed first step in cre-
ating a unifying framework that can help
us theorise and model labour and
globalisation in non-western countries.
Its general framework is creative and
pushes the debate on globalisation past
regional stereotypes and convergence
theories. The essays provide detailed
accounts of the diverse backgrounds
and responses among nations labour
regimes. This volume is sure to catalyse
a continued discussion on this important
subject among academics, students and
practitioners in the international political
economy field.
References
Thomas, Henk (1995): Globalisation and Third
World Trade Unions: The Challenge of Rapid
Economic Change, Atlantic Highlands,
London and Zed Books, NJ.
Portes, Alejandro, Manuel Castells, and Lauren
Benton (1989): The Informal Economy:
Studies in Advanced and Less Developed
Countries, Johns Hopkins University Press,
Baltimore.
Schmitter, Philippe C (1974): Still in the Century
of Corporatism? in Pike, F B and T Stritch
(eds), The New Corporatism, University of
Notre Dame Press, South Bend.
Rakowski, Cathy (1994): Contrapunto: The
Informal Sector Debate In Latin America,
State University of New York Press, Albany.
Kundu, Amitabh and Alakh Sharma (2001):
Informal Sector in India, Institute for Human
Development, New Delhi.
Rudolph, Lloyd and Susanne Rudolph (1987): In
Pursuit of Lakshmi: The Political Economy
Of The Indian State, University of Chicago
Press, Chicago.
EPW