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Combating inequality the global north and south

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Combating Inequality Economic inequality has recently gained considerable academic attention However, two important aspects of inequality have not been discussed systematically: its multidimensional nature and the question of what can be done to reverse it This book offers insights from scholars representing the Global Labour University, which operates in Brazil, Germany, India, South Africa and the USA They analyse the various drivers of inequality, assess policy responses and discuss counter-strategies The main findings of this book are that rising levels of inequality cannot be addressed only with the standard policy responses, namely education, financialised forms of social policy and ‘green growth’ In addition, the way markets currently function needs to be corrected The chapters in this volume focus on specific fields of contemporary capitalism where important drivers of inequality are located, for example the labour market, the financial system, the tax system, multi-national corporations and gender relations Other chapters discuss in detail where political opportunities for change lie They critically assess existing countermeasures, the idea of a ‘green economy’ and its implications for inequality, and existing campaigns by trade unions and new social movements against inequality In line with the global nature of the problem, this book contains case studies on countries both from the Global North and South with considerable economic and political weight This book provides academics, political practitioners and civil society activists with a range of ideas on how to drive back inequality It will be of interest to those who study political economy, development economy, labour economics and the politics of labour Alexander Gallas is an Assistant Professor in the Department of Politics at the University of Kassel, Germany Hansjörg Herr is Professor for Supranational Integration at the Berlin School of Economics and Law, Germany Frank Hoffer is a Senior Researcher at the Bureau for Workers’ Activities at the ILO and the international coordinator of the Global Labour University, Switzerland Christoph Scherrer is Professor for Political Science and Director of the International Centre for Development and Decent Work, University of Kassel, Germany This page intentionally left blank Combating Inequality The Global North and South Edited by Alexander Gallas, Hansjörg Herr, Frank Hoffer and Christoph Scherrer First published 2016 by Routledge Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2016 selection and editorial material, Alexander Gallas, Hansjörg Herr, Frank Hoffer and Christoph Scherrer; individual chapters, the contributors The right of the editors to be identified as the authors of the editorial material, and of the authors for their individual chapters, has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988 All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Combating inequality : the Global North and South / edited by Alexander Gallas, Hansjörg Herr, Frank Hoffer and Christoph Scherrer Income distribution—Developing countries Equality—Developing countries Poverty—Developing countries Economic development—Developing countries Developing countries—Economic policy I Gallas, Alexander, editor HC59.72.I5C66 2016 339.2—dc23 2015024819 ISBN: 978-1-138-91685-2 (hbk) ISBN: 978-1-315-68934-0 (ebk) Typeset in Times New Roman by Graphicraft Limited, Hong Kong Contents List of figures List of tables Notes on contributors Introduction viii x xii A L E X A N D E R GAL L AS PART I The challenge of inequality The rise of inequality across the globe: drivers, impacts and policies for change 13 15 T A N D I WE G R O S S , F RANK HOF F E R AND P I E RRE LA LIB ER TÉ Gender inequality and the labour movement 31 A K U A O B R I T W UM Trade unions and the challenge of economic inequality: an unresolved debate 45 E D WA R D WE B S T E R AND CHRI S T OP HE R MORRI S PART II Drivers of inequality Labour and financial markets as drivers of inequality 59 61 H A N S J Ö R G H E RR AND BE A RUOF F The impact of the financial sector on inequality: a comparison of the USA, Brazil, Germany and India T R E V O R E V A NS 80 vi Contents Multinational corporations and economic inequality in the Global South: causes, consequences and countermeasures in the Bangladeshi and Honduran apparel sector 93 M A R K A N N ER AND JAKI R HOS S AI N PART III Country case studies The US economy: explaining stagnation and why it will persist 111 113 T H O M A S I PAL L E Y Financialisation, redistribution and ‘export-led mercantilism’: the case of Germany 132 E C K H A R D HE I N AND DANI E L DE T Z E R 10 Macroeconomic processes and economic inequalities in India 150 J A Y A T I G H OS H 11 Brazil in the last 20 years: searching for a new accumulation regime 163 M A R C E L O MANZ ANO, CARL OS S AL AS AND A N SELMO SA N TO S PART IV Critiques of conventional political responses 181 12 Greening inequality? Limitations of the ‘green growth’ agenda 183 B I R G I T M A H NKOP F 13 The social investment state and the myth of meritocracy 199 H E I K E S O L GA 14 New trends in inequality: the financialisation of social policies 212 L E N A L A V I NAS PART V Merits and limits of alternative political responses 227 15 Market regulation, inequality and economic development 229 H A N S J Ö R G HE RR Contents 16 The role of the public sector in combating inequality vii 243 C H R I S T O P H H ERMANN 17 Progressive tax reform in the OECD countries: opportunities and obstacles 256 S A R A H G O D A R , CHRI S T OP H P AE T Z AND ACHI M TR U G ER PART VI Tools for counter-strategies 271 18 Contextualising strategies for more equality 273 C H R I S T O P H S CHE RRE R 19 (Un)typical labour struggles: creative campaigns to challenge inequality 286 M I C H E L L E WI L L I AMS 20 Countermeasures against inequality 300 C H R I S T O P H S CHE RRE R AND T I MM B S CHÜT Z HO FER Index 317 Figures 2.1 Health and social problems are worse in more unequal societies 5.1 Adjusted wage share of selected countries (wages as a percentage of net domestic product at current market prices) 5.2 Wage dispersion (market income) in selected OECD countries – ninth decile to first decile (D9/D1) 5.3 Wage dispersion (market income) for selected OECD countries – ninth decile to fifth decile (D9/D5) 5.4 Wage dispersion (market income) for selected OECD countries – fifth decile to first decile (D5/D1) 5.5 Wage dispersion (market income, selected BRICS countries) 7.1 Inward foreign direct investment flows, annual US dollars (millions) 7.2 Monopsony 7.3 Wal-Mart: revenue and income ($ millions) 7.4 Supply chain breakdown $100 running shoes 7.5 Embedded employment relation dynamics in value chains 7.6 Honduras: apparel exports vs remittances income 7.7 Inequality in Honduras 7.8 Honduras: cotton jeans cost structure 7.9 Cost breakdown of a polo shirt costing $3.46 to produce 8.1 The 1945–75 virtuous circle Keynesian growth model 8.2 The neoliberal policy box 8.3 The role of finance in the neoliberal model 8.4 Lifting the lid on the neoliberal policy box 8.5 Productivity and real average hourly compensation of US non-supervisory workers, 1948–2013 8.6 US pre-tax income share of top percent (1913–2012) 8.7 Union membership and the share of income going to the top ten percent of wealthiest households, 1917–2013 8.8 Total domestic debt and growth (1952–2007) 8.9 The structural Keynesian box 8.10 Labour share of US non-farm business GDP (%), 1945 –2011 18 63 67 67 68 69 95 96 97 98 99 100 101 102 105 116 116 118 118 120 121 121 122 123 128 Figures Wage share adjusted for the labour income of top per cent, Germany, 1992–2003 (percentage of net national income) 9.2 Income shares in net national income, Germany, 1980 –2013 (per cent) 9.3 Components of rentiers’ income as a share in net national income, Germany 1980 –2013 (per cent) 9.4 Financial Balances, Germany 1980–2013 (percentage of nominal GDP) 9.5 Real GDP growth, growth contributions of demand components and unemployment rate, Germany 2007–2013 (in percentage points (lhs), in per cent (rhs)) 10.1 Share of agriculture 10.2 Unorganised sector in NDP 10.3 All India work participation rates (usual status, principal and subsidiary activities) 10.4 Female work participation rates 11.1 GDP growth rate – Brazil: 1994–2013 11.2 Trade balance evolution 11.3 Contribution of the aggregate demand components to the GDP growth (annual variation) 11.4 Public Investment as a proportion of GDP – Brazil 2003–2012 11.5 Evolution of the unemployment rate Brazil – Fixed Base Index: November/2002 = 100 11.6 Evolution of the unemployment rate – By gender 11.7 Wage share in GDP – Brazil: 2002–2010 (in %) 11.8 Gini Index – Brazil: selected years 11.9 Social expenditure per capita of the Federal Government – Brazil 1995–2011 (prices of 2011) 11.10 Credit as a proportion of GDP – Brazil – 2002–2012 17.1 Corporate taxation, OECD averages 1970 –2012 ix 9.1 137 137 138 142 143 151 154 155 155 165 165 166 168 169 170 170 171 172 176 258 308 Christoph Scherrer and Timm B Schützhofer Subsequently more than 1,600 plantation workers bought the plantation with a credit from the National Financial Corporation (CFN) (Redacción Económica, 2014) Apart from this high-profile case, the changes have mainly focused on improving the collection of taxes from corporations and high-income individuals Meanwhile, accumulated wealth has remained largely untouched At the moment of writing, there are first signs that this might change The executive branch has passed a progressive inheritance tax reform to the National Assembly, which also attempts to tax money in international trusts Such reforms help to slow down or even reverse the trend towards the concentration of wealth, but they are not hugely effective in terms of raising public revenue Hence, it is more difficult to link this tax to popular benefits Nevertheless, the Ecuadorian government is trying to so by introducing a clause that there is one way to avoid paying the tax, namely to pass on the equivalent amount of shares to employees Ultimately, the issue of taxation becomes associated with the ideological conflict between capital and labour: Do we believe the capitalist narrative that wealth is generated by the few who own capital, or we understand that it is the result of the labour of the many? Labour-market policies The labour market has been a major driver of inequality in many countries As Herr and Ruoff show (Chapter 5), changes in functional income distribution made personal income distribution more unequal They reflect the increasing profit share as well as the concentration of wealth Both these developments are driven by the decline of the public sector, higher profit claims of holders of financial assets and the weakening bargaining power of trade unions.16 Of even greater importance is the increasing wage dispersion in the OECD countries At the top, management is reaping the benefits of large-scale operations, shareholder value incentive systems, increased inter-company cross-border mobility and greater political clout At the lower end, technological changes, trade with labour-abundant economies, migration and new labour-market practices such as outsourcing and precarisation have reduced the labour-income share These processes have also weakened trade unions, which have had to moderate their demands due to threats of the relocation and the deregulation of labour laws (Hacker and Pierson, 2010) In India, a combination of low productivity in agriculture, a growth dynamic in the manufacturing sector insufficient for absorbing the rural labour surplus and a rigidly layered segmentation of the labour market on the basis of caste and the discrimination of women has contributed to rising inequality.17 The case of Brazil also underlines the impact of labour-market dynamics on economic inequality, albeit in reverse Under the Lula and Rousseff presidencies, a number of labour-market policies were enacted, among them significant increases of the minimum wage and of social assistance, the expansion of public-sector employment and the creation of additional labour courts In a favourable international Countermeasures against inequality 309 business climate, these measures have contributed significantly to job creation, more formal employment, wage increases, increases in the wage share, decreasing gender disparities and an overall lowering of economic inequality.18 The positive example of Brazil leads the way for strategising about labourmarket policies that reduce economic inequality As Herr and Ruoff argue, the existence of a minimum wage seems to be of key importance in this context Increasing the minimum wage and expanding its coverage is a matter of policy adjustment in those countries where there is a wage floor by law In some contexts, it could also imply that institutional change is needed, for example in Germany, where the recent implementation of the minimum wage was the result of an eight-year campaign led by the labour movement.19 If the increases are supposed to be steady and insulated from changes of government, a specific body responsible for setting the minimum wage has to be established Besides, the expansion of its coverage may meet with resistance of employer groups that are politically powerful (for example in agriculture) In countries with a large informal sector, the challenges of implementation are immense Prospects are probably best for workers with workplaces where other labour relations are formalised, for example, workers employed by subcontractors in manufacturing (Webster et al., 2008) Importantly, as Herr and Ruoff point out, wage dispersion cannot be addressed solely with a minimum wage It also requires co-ordinated bargaining, which can be achieved by pattern-bargaining or sectoral bargaining The latter may also require institutional change, for instance the establishment of strong employers’ associations acting as a counterpart for labour in sector-wide negotiations Sectoral bargaining may reinforce wage dispersion if the sectors with weaker bargaining power are not supported by workers in stronger sectors in their pursuit of wage increases Addressing this issue may also require institutional change, for instance the formation of strong union federations Herr and Ruoff are also calling for labour-market regulation that prevents precarious work As mentioned, trade unions can tackle this issue through collective bargaining, but without being able to build on supportive legal provisions they will face a constant uphill battle Changes of labour law are a matter of policy adjustments; however, their enforcement tends to require institutional changes in the form of the effective monitoring of compliance and the establishment of effective sanctioning mechanisms In countries with a significant surplus of workers, such as India, a range of policies including agricultural policies in favour of smallholders are necessary to balance demand and supply for labour In other words, a regime shift is required in this context For increasing the wage share, that is making functional income distribution more equal, trade-union density has to be raised and collective bargaining power strengthened.20 Given that the forces that have undermined trade union power have the upper hand, a reversal of this development requires institutional changes – if not a wholesale regime shift Shop-floor struggles and organising have to be complemented by political strategies that, on the one hand, change labour laws in favour of trade unions and, on the other hand, limit competition among employers Reducing wage dispersion Closing loopholes Awareness campaign Hiring additional customs officers tasked with monitoring compliance Overcoming trade union fragmentation through mergers Harmonising expiration of collective agreements Co-ordinated bargaining Short-term Minimum wage Recommendations Critical academics Labour NGOs representing migrant workers Anti-poverty NGOs, churches, charities, and social services Political parties Employers who want protection from competition via wages Primarily requires trade union solidarity Employers wanting to protect themselves against employee poaching National: Reregulation of temporary and part-time work EU labour mobility: measures to prevent competition via wages occurring between countries and through migration Co-ordinated minimum wages in the EU (fixed percentage of national median wages) National: Defending autonomy of collective bargaining but also establishing mechanisms for monitoring wage development and making recommendations EMU: Creation of extension mechanisms at the European level Returning to collective bargaining agreements covering all workers Co-ordinating sectoral bargaining (including horizontal co-ordination) EMU-wide sectoral bargaining Securing constant raises of the minimum wage Sectoral bargaining Extension Mechanisms Compulsory membership for employers in employers’ associations Potential Partners for Alliances Long-term Governance Level Medium-term Timeframe Table 20.2 Recommendations for labour market policies in Germany Increasing union density Strengthening collective bargaining International macroeconomic co-ordination Increasing wage share Global Keynesian New Deal Preventing precarious employment Limiting successive fixed-term contracts Awarding tenders in public sector only if subcontractors employ permanent workers covered by social security Limiting labour brokering Active anticyclical fiscal policy in the EU Symmetric adjustment mechanisms to reduce current account imbalances Deepening EMU integration (fiscal union, EMU labour market regulation, EMU taxes, etc.) Reregulating financial system (reducing profit mark-ups and stimulating long-term investment) Replacing shareholdervalue corporate governance with stakeholder approach Rolling out economic democracy See trade union revitalisation literature Attaching stricter conditions to fixed-term contracts New, global ‘Bretton Woods’-style monetary system with fixed and adjustable exchange rates Certain controls of international capital flows to make a global monetary system work, creation of space for national economic policy International antitrust court for regulation of MNCs International agreements International institutions tasked with co-ordination National: Minimum Wages Reregulation of temporary and part-time work EU labour mobility: see above Critical academics Certain industrial groups including smaller companies Progressive governments NGOs, social movements Labour NGOs representing migrant workers Critical Academics Anti-poverty NGOs, churches, charities, and social services providers Political parties 312 Christoph Scherrer and Timm B Schützhofer This challenge is covered by the literature on trade-union revitalisation21 and will, therefore, not be explored further Labour markets are also highly dependent on macroeconomic developments In the United States, the financial crisis has caused unemployment and has depressed wages, which has worsened income inequality.22 Macroeconomic volatility has had similar effects in Brazil and India.23 For this reason, the authors of the country case studies in this volume (Chapters 8 –11) call for a shift away from neoliberal macroeconomic policy towards what Hein and Detzer call a ‘Global Keynesian New Deal’ (Chapter 9) Such a New Deal encompasses the re-regulation of the financial sector as well as the re-orientation of macroeconomic policies towards stabilising domestic demand and international macroeconomic policy co-ordination In other words, it amounts to a regime shift While pursuing demand-oriented macroeconomic policies can build on previous policy regimes, financialisation and globalisation will undercut interventions of this type Therefore, curbing financialisation and co-ordinating macroeconomic policies among nations are necessary preconditions for change However, financialisation is embedded in the accumulation regime of the United States, is politically reinforced through the hegemony of finance capital and is institutionalised at the global level through international treaties and international organisations (Scherrer, 2015) Macroeconomic co-ordination requires the cooperation of the major economic powers, which is only possible if there are similar political constellations of forces within the national boundaries of each of the countries in question – a precondition that is hard to meet Conclusion As the Brazilian Labour Party (PT) has demonstrated, it is possible to reverse the trend towards increasing inequality.24 However, given the current, less favourable economic environment for Brazil, setbacks cannot be ruled out Both the Brazilian example and the chapters of this book highlight that there are multidimensional drivers of inequality Addressing these drivers requires profound changes in the current form of capitalism Only long-term strategies based on strong working-class solidarity and support from allies in politics and civil society will bring about these changes However, some policy adjustments and institutional changes are more easily achievable and their attainment may provide the basis for institutional and structural changes And yet, it is not possible to lay out a definite strategy in this chapter After all, strategies have to be contextsensitive and have to be based on a careful conjunctural analysis of the political opportunities and resources for change.25 In light of this, we would like to conclude the book with a list of points labour activists and trade unionists may want to consider when they discuss strategies against economic inequality: Countermeasures against inequality 313 ᭹ ᭹ ᭹ ᭹ ᭹ ᭹ In order to keep everyone involved motivated, an intervention of a trade union should start with raising awareness among its members of the effects of inequality, both on the organisation and on its members as workers Against this backdrop, it becomes possible to assess what kind of inequalities concern the members and may undermine power of the union in the long run After having identified key issues, the appropriate level for a strategy should be discussed: what can be done within the trade union; through collective bargaining; through organising; and through political action at the local, regional, national and international level? In what ways are the different levels connected? Which levels should be prioritised for interventions and which ones should be left to allies to work on? In which policy fields is the trade union regarded as an important actor? Where is its expertise acknowledged and where should it focus on capacity-building for future struggles? For any policy initiative, an assessment of the political opportunity structure is required This involves asking the following questions: Who are the primary actors and where are points of access? As the political opportunity structure is not set in stone, possibilities for changing it should be explored, in particular by identifying windows of opportunity Since windows of opportunity tend to open and close again, it is not only important to choose the right entry point, but also get the timing right: It can be necessary to react quickly – or to build momentum instead of intervening right away Opportunities for political action need to be checked against the resources at hand in terms of membership mobilisation, finance and expertise Are these resources well used, or could they be used more efficiently? What other opportunities are lost? Potential allies need to be identified: what are their interests in the campaign, what might motivate them to co-operate and what kind of reciprocity is required to maintain the alliance? As sentiments towards inequality and particular policies differ hugely between different groups, the right frames for the issues at stake have to be developed – with the aim of reaching staff, members, workers from other unions and non-unionised workers, potential allies and the general public The likely counter-strategies of the privileged should also be taken into account As powerful trends drive up inequality, the struggle against it requires strategic thinking over a long time horizon It can start with small steps aimed at mobilisation, but it also needs to take into account the existence of structural constraints working against interventions for more equality We hope that our systematisation of the reforms proposed in this book will contribute to this kind of strategising 314 Christoph Scherrer and Timm B Schützhofer Notes 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 See also Scherrer’s chapter in this volume See also Gross et al.’s and Evans’s chapters in this volume See also Evans’s chapter in this volume See also Scherrer’s chapter in this volume See also Webster and Morris’s chapter in this volume See also Gross et al.’s chapter in this volume See Gross et al.’s chapter in this volume See also Palley’s and Hein and Detzer’s chapters in this volume See also Evans’s and Herr’s chapters in this volume See also Webster and Morris’s chapter in this volume See also Gross et al.’s, Lavinas’s, and Godar et al.’s chapters in this volume See also Webster and Morris’s chapter in this volume See also Scherrer’s chapter in this volume See also Lavinas’s chapter in this volume For a critique, see Fairfield (2013) See also Hein and Detzer’s chapter in this volume See also Ghosh’s chapter in this volume See also Manzano et al.’s chapter in this volume See also Williams’s chapter in this volume See also Herr and Ruoff’s chapter in this volume See also Williams’s chapter in this volume See also Palley’s chapter in this volume See also Manzano et al.’s and Ghosh’s chapters in this volume See also Manzano et al.’s chapter in this volume See also Scherrer’s chapter in this volume References Bateman, M (2014) The Rise and Fall of Muhammad Yunus and the Microcredit Model Saint Mary’s University, International Development Studies Working Paper Series No Available at: www.smu.ca/webfiles/BATEMANIDSWP.pdf (accessed June 2015) Boeckh, A (2011) Staatsfinanzierung und soziale Gerechtigkeit in Lateinamerika In Wehr, I and Burchardt, H.J (eds) Soziale Ungleichheiten in Lateinamerika: Neue Perspektiven auf Wirtschaft, Politik und Umwelt 1st edition Baden-Baden: Nomos: 71–90 Bovis, C.H (2006) Public Procurement in the European Union: Lessons from the Past and Insights to the Future Columbia Journal of European Law 12 Britwum, A.O and Ledwith, S (eds) (2014) Visibility and Voice for Union Women: Country Case Studies from Global Labour University Researchers Munich: Rainer Hampp Verlag Burchardt, H.J (2012) Von der vernünftigen Suche nach Leidenschaft: Ein Vorschlag Gesellschaftsanalyse und Sozialpolitik-Forschung zu dezentrieren In Burchardt, H.J., Tittor, A and Weinmann, N (eds) Sozialpolitik in globaler Perspektive: Asien, Afrika und Lateinamerika Frankfurt: Campus-Verlag: 69 –92 Cabalin, C (2012) Neoliberal Education and Student Movements in Chile: Inequalities and Malaise Policy Futures in Education 10(2): 219 –228 Castelletti, B (2008) Taxes in Latin America: Do Wealth and Inequality Matter? 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capital coefficient 66, 238; capital controls 90, 303; capital-labour relation 4 –5, 26, 33, 47, 56, 94, 216, 238, 276, 286, 288, 308; capital markets 16 –7, 89, 213 –15, 219; capital mobility 16, 26, 47, 82, 116, 160, 240, 303, 305 – 6; financial capital 2, 9, 16, 47, 75, 80, 82, 85, 213 –16, 292, 312; human capital 52, 214, 235, 262, 301 care work 33, 154, 248 caste 34, 38, 152, 156 –58, 302, 308 CEO 25, 65, 70, 278 child labour 98, 107, 190 childcare 34, 39, 248 Chile 3, 81–2, 214, 282, 306, China 17, 61, 70, 85, 95, 104, 150, 153, 163, 219 citizenship 51, 212, 218, 295; social citizenship 245 civil society 1, 56, 188, 195, 238, 286, 292– 93, 295 – 97, 312 class 9, 15, 21–2, 34, 152, 158, 184, 195, 200, 202, 205, 207, 215, 288, 290; middle class 23, 46, 49 –51, 83 – 4, 128, 160, 219, 222, 232, 252, 281, 306; rentier class 4, 137–38, 232; working class 6, 17, 55, 222, 273, 276, 278, 282, 287, 289 – 90, 306, 312 Clean Clothes Campaign 53, 106 climate justice 288 – 89, 293 collective bargaining 17, 25, 39, 47– 8, 76, 103, 194, 235, 273 –77, 294 – 95, 302, 309, 313 commodification 56, 188, 212, 215, 218, 221, 288, 291– 92 318 Index conditional cash transfers 48, 51, 212, 214 –15, 304 credit-financed consumption 21, 84, 122, 146, 160 – 61 crisis 1, 9, 88, 113, 166, 194, 239, 246, 276; agrarian crisis 150, 152, 160; banking crisis 35, 144; crisis management 6, 123 –24; debt crisis 84, 117, 163, 172; ecological crisis 20, 183, 195; Eurozone crisis 72, 145; global economic crisis (2007– ) 2, 6, 8 – 9, 26, 31, 53, 83 –5, 89, 113 –15, 117–19, 123, 125 –26, 129 –30, 132–33, 142– 46, 164 – 67, 176, 183, 199, 245, 253, 258, 275, 281, 287, 292, 300 –1, 304, 312; see also Great Recession current account imbalances 90, 145, 237, 304; current account surplus 132, 142, 144, 146, 166; current account deficit 140, 146, 167, 236 Czech Republic 200 debt 65, 116, 119, 122, 128, 130, 132, 145, 194, 212, 219, 222, 233, 266, 304; foreign debt 82, 146, 236 –37; public debt 123, 163, 236 decent work 93, 191, 193, 238 deflation 160, 233 democracy 1, 18 – 9, 27, 52, 163, 291; economic democracy 26, 289; gender democracy 37– 40; participatory democracy 40, 195; representative democracy 40, 274 Denmark 3, 18, 62, 249 development banks 81, 85, 88 – 9 discrimination 6, 19, 22, 26, 32– 4, 36, 102, 156 –59, 192, 233, 250 –51, 275, 280, 290, 308 domestic demand 85, 124, 140, 143, 146, 166, 185, 221, 312 domestic work 33 – 6, 40 Ecuador 307– 8 economic growth 1, 49, 52, 81, 85 – 6, 88, 151–54, 160, 169, 176, 184 – 85, 194, 217, 220, 243, 246 – 47, 261 education 8, 16, 19, 22, 25, 27, 37– 8, 47, 51, 70, 151–52, 155 –56, 158 –59, 169, 173 –74, 199 –208, 212, 217–18, 234 –35, 239, 243, 245, 248 – 49, 251, 253, 280, 301, 306; educational system 19, 32, 48, 50, 201, 216, 234, 247, 264, 306 electricity 244, 247, 250 –52, 293 emerging economies 5, 16, 166, 169, 185, 188 employers’ associations 71–2, 76, 238, 309 environmental sustainability 18, 20, 183, 189, 305 energy 53, 76, 106, 176, 185, 187, 193, 239, 243, 247, 249 –50, 289, 293, 297, 301; fossil energy 184 – 85, 188, 193 – 94; renewable energy 52–3, 188, 190, 193, 288 – 89, 293, 305 entrepreneurship 21, 214, 235 –36 Euro 130, 145 Europe 53, 55, 63, 68, 71–3, 80, 106, 114, 117, 131, 176, 232, 245 – 47, 249, 292; Eastern Europe 252; Northern Europe 246; Southern Europe 6, 245, 281; Western Europe 6, 35, 46, 115, 117, 188, 246, 257, 293 European Central Bank (ECB) 143 European Commission 27, 199, 259, 301 European Union 17, 22, 185, 245, 249 Eurozone 6, 72, 135, 143, 145, 233, 264 equal opportunities 18, 200, 202 exchange rates 16, 85, 90, 163 – 64, 167, 176, 219, 240, 264, 311 Export Processing Zones (EZPs) 35, 98 –101, 104 –5, 107, 303 – 4 export-led growth 124, 129, 166 family 15, 33, 42n2, 48, 52, 100 –1, 157–58, 169, 200, 246 Federal Reserve 83, 115, 117, 124 –27, 130 financial markets 21, 24, 75, 83, 86, 90, 115, 117–19, 123, 127, 132, 144 – 46, 150, 186, 212–17, 222, 266 financial liberalisation 6 –7, 81–2, 88 – 9, 116 financial transaction tax 51, 90, 259, 266, 288, 291– 92, 295 – 97 financialisation 8, 47, 66, 117–19, 132, 135, 145, 184 – 85, 212–19, 280, 304, 312 Finland 18, 68, 257 fiscal policy 32, 126, 143, 145, 185, 236, 238 –39, 264, 307; fiscal consolidation 126, 131, 259, 266; fiscal stimulus 124 –27, 145 Foreign Direct Investment (FDI) 54, 94 –5, 100, 105, 163, 167, 236, 262, 305 foreign trade 138, 144, 164 Index France 18, 62–3, 66, 67– 8, 68, 71–2, 134, 234, 245, 249, 292 free trade agreements 116, 126 –27, 186, 303 – 4 Friedman, M 54, 81 garment industry 53, 93 – 4, 97–107 gender 3, 15, 21, 31, 152, 156 –58, 169, 189, 192, 205, 233, 302, 309; gender in/equality 7, 31– 41, 288 – 90; gender pay gap 22, 31, 36, 193, 234, 249, 274 Germany 7– 8, 18, 33, 61–3, 66 – 8, 72, 80 –1, 86 – 9, 132– 45, 184, 188, 234, 257, 263, 274, 280, 286, 288 – 97, 305, 309 –10 Ghana 33 – 40 Gini coefficient 3, 62, 64, 74, 101, 133, 135, 160, 171, 248, 305 global imbalances 117, 132, 300 Global Labour University (GLU) 5, 31, 41, 45, 286 Global North 5 –7, 35, 70, 103, 183 – 84, 189, 194, 305 Global South 51, 63, 93 –5, 183 – 84, 188, 194, 213, 217, 223, 303, 305 – 6 global supply and global value chains 7, 53, 93 – 8, 102, 104, 106 –7, 176, 303 globalisation 15, 22, 26, 55, 70, 77, 99, 116 –17, 121, 123, 125 –27, 144, 150, 156 –57, 229, 234, 240, 282, 286, 303, 312 ‘golden age’ 132, 216, 229, 238 Gramsci, A 54, 280 – 81 Great Depression (1930s) 115, 120, 124, 244 Great Recession 7, 15, 20, 26, 63, 72, 113 –18, 124 –29, 132–33, 138, 142– 43, 256, 258, 265; see also crisis Greece 18, 134, 248, 258, 281 green economy 8, 184 – 89, 191, 193, 305 Hartz reforms (Germany) 138, 143, 234 Hayek, F.A 10n3, 54, 231 health 16, 18, 33, 47, 49 –50, 158 –59, 189 – 90, 212, 235, 290, 296, 304; health insurance 36, 219; healthcare 24 –5, 50, 52, 151, 158, 173 –74, 216 –19, 223, 239, 243 – 45, 247– 49, 251–53, 306 hedge funds 83, 87, 89, 132 hegemony 16, 40, 54, 216, 221, 312 Honduras 7, 94, 99 –103, 107– 8, 303 319 housing 88, 151, 161, 175, 187, 217–18, 290; housing bubble 115; social housing 248, 253 ILO 23 – 4, 27, 38, 48 – 9, 53, 101, 106, 185 – 86, 191, 259 IMF 1, 17, 20, 22, 82, 117, 247, 259, 261, 264, 291 income distribution 4, 61–3, 65 – 6, 69 –71, 75 –7, 120, 122, 125, 128 –29, 133 –35, 145, 169, 219, 232, 235 –38, 243, 249, 256, 265, 279, 308 India 7– 8, 34 –5, 38 – 40, 52, 61–3, 68 – 9, 72, 81, 87– 9, 150 – 61, 188, 251–52, 288 – 89, 291– 92, 294, 296 – 97, 303, 308 – 9, 312 indigenous communities 188, 214, 289, 292, 303 industrialisation 53, 151, 153, 184, 219 –20 IndustriALL 53, 106 industry 20, 71–2, 94, 96, 104, 132, 135, 176, 188, 190, 230, 234; financial industry 280, 292; fossil fuel industry 183, 194; industry-level bargaining 72, 76 inflation 26, 82–5, 101, 116 –17, 119, 122–23, 127–30, 138, 143, 163 – 64, 176, 219 –20, 240, 265 informal economy 25, 33, 35 – 6, 52, 63, 87, 98 – 9, 107, 152–53, 185, 190, 217, 234, 276, 288 – 90, 294, 304, 306, 309 interest rate 65, 80 –3, 85, 88, 115, 126, 128, 130, 143, 176, 219 –20, 236, 262 international division of labour 5, 117, 303 Ireland 18, 68, 134, 200, 248, 257–58 Italy 18, 61–2, 66 – 8, 80, 134, 249, 286 Japan 18, 61–3, 66 – 9, 72, 115, 132, 134, 233, 257 Jessop, B 277 Kalecki, M 65, 135 –36 Keynes, J.M 70 –1, 81, 90, 187, 233, 238 Keynesianism 47, 54, 65, 70 –1, 81, 115 –17, 122–23, 187, 222–23, 233, 235, 264 – 65, 286 Krugman, P 1, 53, 75 labour market 24 –5, 31– 6, 47– 8, 154, 156, 158, 168 –70, 202, 204 –5, 229, 234, 260, 273, 295, 302, 312; deregulation 7, 15, 25, 65, 72–3, 77, 320 Index 116, 120, 123, 138, 143, 229, 233, 281; legislation 8, 16, 22, 26 –7, 47, 73, 77, 87– 9, 235, 286, 291, 305, 308 – 9; segmentation 32, 35 –7, 40, 73, 157–59, 233, 274 –75, 308 labour standards 27, 105 – 6 labour studies 5, 45, 55 labour supply 16, 70, 168 – 69, 260, 274 Latin America 100, 117, 167, 213 –15, 217–18, 222, 248, 251, 305 – 6 living wage 48, 233 –34; see also minimum wage lobbying 17, 19, 118, 185 – 86, 277, 281, 294 Lula da Silva, L.I 2, 49 –51, 73, 85, 163 – 64, 219 –20, 273, 308 manufacturing 94, 98 – 9, 104, 106, 117, 119, 151–53, 189, 193, 219 –20, 235, 247, 289, 308 – 9 marginal productivity 21, 69 –71, 77, 207, 235 market failure 114 –15, 117, 123, 125 –27, 186, 215 –18, 246 marketisation 221, 243, 246 – 47, 252 meritocracy 8, 15, 18, 21, 199 –208, 279, 301 Mexico 4, 99 –100, 115, 188, 214, 248 micro-finance 212–15 migrants 19, 100; migrant workers 26, 45, 94, 249, 275 migration 191– 92, 308 minimum wage 23 – 4, 36, 47–50, 71, 73, 76 –7, 85, 98, 104, 116, 172–73, 176, 208, 221, 234 –35, 239, 281, 288 – 89, 291, 293 – 94, 296 – 97, 308 – 9 monetarism 81, 83, 214 monetary policy 16, 32, 115, 123 –27, 143, 163, 264, 276 monopoly 65, 96, 204, 206 –7, 244, 246, 250, 306; natural monopoly 76, 239 – 40, 244 multinational corporations (MNCs) 2, 5, 7, 25, 27, 53, 90, 93 – 4, 97, 106, 184, 192, 263, 266, 290, 305 nationalisation 46 –7, 87, 244 – 45, 277 natural resources 156 –57, 184, 188, 306 neoclassical economics 8, 16, 54, 69 –71, 81, 88, 207, 229 –30, 233 –35, 262 neoliberalism 1–2, 6 –7, 9, 46 –7, 51–2, 54, 56, 66, 72–3, 82, 113 –31, 135, 145, 163 – 65, 172, 175, 177, 212, 246, 277, 282, 286 – 87, 295, 306, 312 (neo-)mercantilism 8, 140, 142– 43, 145 – 46, 221, 304 Netherlands 18, 62, 80, 134 New Deal 115, 119 –20, 312; Green New Deal 185 – 87, 239, 301; Keynesian New Deal 146, 304, 312 New Zealand 18, 33 –5 Nigeria 33 – 4, 36, 38 – 9 non-governmental organisations (NGOs) 52–3, 192, 259, 282, 291 Norway 18, 249 Obama, B 1, 114, 125 –27 OECD 1, 3 – 4, 7, 20, 61–3, 66 – 9, 71–3, 76, 133, 199 –200, 233 –34, 248 – 49, 253, 256 – 62, 266, 301, 305 – 6, 308 organised labour 2, 6, 37, 287, 296 outsourcing 25, 35 – 6, 73, 76 –7, 84, 94, 247, 251, 275, 302, 308 pensions 36, 48, 50, 77, 85, 143, 213 –14, 216, 219, 293; pension funds 87, 216, 223, 280, 305 Philippines 33, 35 – 6, 40, 286 Pickett, K 5, 18, 46 Piketty, T 1, 5, 17, 21, 46, 66, 68, 73, 84, 220, 258, 261, 266 Polanyi, K 221 political advocacy 273 –74, 282 political opportunity structure (POS) 274, 277–78, 282, 313 Portugal 18, 134, 258 poverty 8, 15 –7, 20, 24, 48 – 9, 51–3, 81, 85 – 6, 88, 100 –1, 106, 150 –51, 158, 164, 176, 189, 199, 201, 207– 8, 212, 214 –15, 218, 220 –23, 248 –50, 289 – 92, 295, 301–2; absolute/relative poverty 17– 8 precariousness 17, 25, 34 – 6, 45, 47, 50, 72–3, 75, 77, 107, 158, 214, 219, 234, 252, 274, 282, 286, 289, 294, 302, 308 – 9 private sector 39, 102, 108, 113, 124, 126, 142, 159, 176, 186, 193 – 94, 219, 243 – 49, 252 privatisation 6, 9, 66, 81–2, 84 – 6, 157, 163 – 64, 174, 190, 212–14, 216 –18, 243, 246 – 47, 249 –52 propensity to consume 236, 264 – 65 protests 50, 102–3, 281, 287, 291, 294 – 95, 297, 306 public sector 8 – 9, 35, 88, 142, 166 – 67, 174, 184 – 85, 221, 239, 243 – 49, 252–53, 275, 304, 306, 308 Index public spending 2, 27, 35, 124, 126, 129, 143, 157, 160 – 61, 172–74, 189, 199, 216 –18, 221–22, 248, 235 –36, 246, 253, 260, 264, 304 –5, 307 public-private-partnerships 186, 243, 247 quality of life 18, 46 –7 race 3, 34, 38, 200, 233; racism 275; racialisation 280 ‘race to the bottom’ 94, 104, 123, 257 Rana Plaza 104 –5, 107 rate of return 17, 81, 83 – 4, 220, 262 Reagan, R 54, 82–3 recession 35, 83 – 4, 113 –15, 119, 123 –25, 128, 143 – 44, 222 redistribution 4, 15, 17, 23, 33, 46, 48, 61, 89, 132–33, 140, 142– 43, 168, 195, 199 –200, 207– 8, 216, 239, 243, 249, 256 –58, 261, 264 – 66, 271, 278 –79, 281, 288 – 90, 296 – 97, 305, 307 rent seeking 21–2, 65 – 6, 76, 234 –35, 239 reproduction 32– 4, 40 –1, 154, 171, 214 –15, 290, 306 Roussef, D 1–2, 48, 51, 164, 308 rural areas 50, 87– 9, 156, 158, 160, 189, 251–52; rural poor 50, 88, 189, 191, 292; rural population 52, 155, 192, 251, 303; rural workers 50, 151, 159, 308 Russia 61–2, 64, 74 schools 19, 48, 52, 103, 151, 169, 192, 201, 203, 206, 221, 232, 280 – 81, 291 self-employment 72, 88, 152–53, 160, 164 shareholder-value 6, 15, 73, 75, 118, 140, 305 Shiller, R 1, 212, 301 Smith, A 229 –30 Spain 18, 26, 68, 134, 251, 257–58, 286 social democracy 87, 123, 246 social mobility 18 – 9, 21, 24, 47, 154, 205, 232 social movements 192, 273, 277, 287, 289, 296 – 97, 306 –7; social movement unionism 276, 287, 295 – 96 social status 21, 190, 203, 205, 207 socialism 52, 55, 184, 230, 238; municipal socialism 244 solidarity 23 – 4, 55, 103 – 4, 106 –7, 123, 207, 216, 276, 289, 293, 312; solidarity economy 52, 286 321 South Africa 5, 7, 34 –5, 38 – 40, 48, 52, 61–3, 68 – 9, 72, 184, 188, 234, 250, 287– 88, 290, 293, 295, 297, 303 South Korea 33, 35 – 6, 68, 126 state intervention 54, 82, 164, 289 Stiglitz, J.E 1, 5, 19, 21, 65, 73 strikes 6, 83, 94, 103, 293, 295, 304 subcontracting 25, 105, 243, 309 sweatshops 53, 103 Sweden 18, 55, 62, 134, 188, 248 – 49, 257 Switzerland 18 tax evasion 16, 25, 27, 53 – 4, 90, 240, 256, 259 – 61, 263, 266, 292, 306 taxation 21–3, 46, 61, 93 – 4, 100, 124, 132–33, 157, 176, 185, 220, 235 –36, 246, 256, 273, 278 –79, 292, 296, 305 – 8; capital income tax 16, 86, 216, 256 –57, 261, 266; consumption tax 221, 258 –59, 307; corporate taxation 132, 256 –59, 261– 63, 266, 305, 308; environmental taxation 20, 190, 194, 259; inheritance tax 75, 200, 279, 308; personal income taxation 75, 200, 256 – 60, 278, 308; progressive taxation 8, 15, 23 – 4, 46 –7, 239, 256, 260, 264 – 66, 278, 305 –7; taxation on wealth 75, 200, 221, 258 –59, 266, 306 –7 Thailand 99, 282 Thatcher, M 54, 247 think tanks 19, 54, 185, 281 top per cent 19, 68, 84, 119 –21, 133, 137, 232, 236 top 10 percent 23, 68, 119 –20, 127, 133, 236 trade deficits 115, 117, 122, 125, 127–29, 236 trade unions 2, 6 – 8, 23, 25, 27, 37, 45 – 8, 53, 55 – 6, 77, 83, 103, 106 – 8, 135, 138, 140, 143, 184 – 85, 188 – 89, 194 – 95, 234, 259, 273 –77, 280 – 82, 287– 91, 294, 296 – 97, 300, 302; trade union leadership 36 – 41, 277, 302–313; trade union density 2, 71–2, 76, 120 –21, 234, 274, 309 transformation 32, 41, 45, 49, 54 –5, 80, 87, 159, 186 – 87, 195, 287– 89, 293, 296, 300; transformative unionism 287– 89, 295 – 97 transition 35, 163, 183, 185 – 89, 191– 95, 221, 305 322 Index transport 16, 25, 49, 76, 187– 88, 239, 243, 247, 249, 302, 306 Turkey 33 – 6, 39 – 40 UK 2, 18, 61–2, 66, 71–2, 80, 87, 132–34, 244, 247–51, 258, 263 unemployment 23, 32, 35, 48, 71, 83, 87, 113 –16, 129, 138 –39, 143 – 44, 155 –56, 163, 169 –70, 185, 199, 229, 233 –38, 265, 289, 293, 312 unit labour cost 99, 135, 233, 262– 63 United States (US) 7, 17, 35, 37, 70, 82– 4, 89, 97, 99 –103, 106, 113 –21, 124, 127–30, 134, 145, 261, 275, 278 –79, 281, 287 universities 51, 54, 103, 114, 192, 202, 219 unpaid work 154, 158 –59, 246, 260 urban areas 89, 155 –56, 160, 176, 184, 189 – 91, 214, 251, 303 violence 34, 47, 49, 195, 291 wage dispersion 6 –7, 63, 66 –73, 76 –7, 229, 233 –35, 240, 249, 308 –10 wage share vs profit share 4, 16 –7, 47, 61, 63 – 6, 69 –70, 76, 87, 105, 135, 137–38, 140, 146, 160, 170, 257, 309 Washington Consensus 49, 117, 163, 247 waste management 183, 189, 190 –3, 305 wealth concentration 19 –20, 73, 75, 188, 232, 275, 308 welfare state 9, 23 – 4, 52, 172, 199, 207– 8, 222, 245 – 46, 300, 303, 306 WHO 34 Wilkinson, R 5, 18, 46 women 3, 22, 24, 31– 41, 45, 48, 89, 94, 104, 107, 151–59, 190, 193 – 94, 214, 249, 260, 274, 290 –1, 302, 308 World Bank 17, 82, 117, 185, 214, 247, 252, 301 World War I 46, 73, 232 World War II 47, 54, 113, 120, 184, 216, 229, 232, 244 Workers’ Party Brazil (PT) 2, 51, 85 – 6, 89, 163, 172, 218, 221, 281– 82, 294, 312 working poor 45, 48 WTO 22, 27 Zambia 33, 36, 38 – 9 Zimbabwe 33, 36 –7 ... analysis and reflections on inequality both in the Global North and South 6 Alexander Gallas The labour perspective Traditionally, the organised working class and trade unions have been at the forefront... 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