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The Position of Transitional Economies in the New Global Division of Labour Csaba Makó

The Position of Transitional Economies in the New Global Division of Labour Csaba Makó Institute of Sociology Hungarian Academy of Sciences (ISB) Budapest - Hungary.

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The Position of Transitional Economies in the New Global Division of Labour Csaba Makó

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  1. The Position of Transitional Economies in the New Global Division of Labour Csaba Makó Institute of Sociology Hungarian Academy of Sciences (ISB) Budapest - Hungary WORKS Changes in WorkFragmentation? The Future of Work in Europe in a Global EconomyWORKS Final International ConferenceRome – Italy, 8-9 October 2008

  2. I. Variety of capitalism in the transformation economies II. Segments of Economy and the WORKS case studies III. Diversity of work organisations by countries and by sectors IV. Drivers of delocalisation and sources of movement within the GVC – company case studies V. Concluding remarks Contents

  3. Models of post-socialist capitalism: I. The ‘Anglo-Saxon Liberal Market’ model of capitalism (early 1990s) II. The ‘Co-ordinated Market’ model (transformative neo-liberal corporatism) III. ‘Associative Capitalism’ IV. ‘Maquiladora Economy’ (metaphor of cathedrals in the desert) V. Business Systems Theory Approach I.Variety of capitalism concept and the transformation economies (1)

  4. Business System Theory Approach and the post-socialist capitalism: Private asset ownership Means of access to capital (capital accumulation) Mode of access to local, national and international production systems and product markets (market relations) Role of the state I. Variety of capitalism concept and the transformation economies (2)

  5. Outcomes of the development in the business system: State segment Privatized segment De Novo segment International segment II. Post-Socialist Capitalism: the Case of Bulgaria and Hungary(1)

  6. II. Post-Socialist Capitalism: the Case of Bulgaria and Hungary(2)

  7. II. Sample of case studies by economic segments (3)

  8. III. Forms of Work Organisation – Lessons from the EWCS 2005(1)

  9. III. National Differences in Work Organisation Forms in the NMS – Lessons from the EWCS 2005 (2) • Learning or lean organisations are dominating: Slovenia, Estonia, Latvia and Poland • The share of taylorist or traditional work organisations are above the EU-27 average: Slovakia, Romania and Bulgaria (SK and BG have significantly higher share of taylorist work organisation compared to EU-27) • Highest share of traditional organisational form: Lithuania and Czech Republic • Hungary represents a special case: the share of learning organisation is the 2nd highest among the NMS while the traditional and taylorist work organisations are slightly overrepresented

  10. III. Forms of Work Organisations by Sectors – Lessons from the EWCS 2005 (3)

  11. IV. Drivers of delocalisation and sources of movement within the GVC – Lessons from the company case studies (1)

  12. IV. Drivers of delocalisation and sources of movement within the GVC – Lessons from the company case studies (2)

  13. IV. Drivers of corporate restructuring and knowledge as a key source of movement within the GVC – Lessons from the company case studies (3) • Forms of knowledge (individual vs collective and tacit vs coded knowledge) • Process of knowledge acquisition as a manifestation of power relations (e.g. shift from body leasing kind of cooperation to higher value added activities, cf. low and high skill equilibrium) • Decisive role of knowledge integration within the organization: conversion of individual to collective knowledge (for both tacit and coded knowledge). • Social skills and trust relations as a prerequisite for knowledge sharing (studied trust through teamwork and PBO).

  14. V. Concluding remarks (1) • The business system theory is an appropriate theoretical framework to better understand emerging capitalism in the transformation economies ( 4 variables of analysis: ownership, access to capital, access to local, national and international production systems and markets, role of the state in the economy). • The selected case studies have their own internal dynamics and their impacts on the movement within GVC. Moving up in the GVC in the international segment of the economy (i.e. SoftServ, DomainSoft). Freezing within GVC: Copy Fashion, Beer A.D.

  15. V. Concluding remarks (2) • 3) Role of institutional complementarities • formal educational institutions: inappropriate knowledge supply (quality and composition of knowledge), • fragmented labour relations system at national level and weakening of company level institutions of social dialogue

  16. Thank you for your kind attention! More information: Mako@socio.mta.hu

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