Geography Reference
In-Depth Information
uneven spatial development and poverty. Finally, the chapter critically
explores the responses of international agencies and businesses to alle-
viate the negative impacts of the global division of labour.
The World Market for Labour: Trends and
Transitions since the Twentieth Century
Increasingly seen as contributing to uneven development and social
polarization between people and places, economic globalization has
evolved as a result of the internationalization of trade, production and
consumption through a global shift in manufacturing since the 1950s
(Dicken, 2007). During the aftermath of World War II, advanced indus-
trial nations focused their production on the American-derived Fordist
factory system, which was based on the standardized production of
assembly goods and a rigid division of labour. At the same time, many
countries in the global South were attempting to decrease their reliance
on imported goods by adopting strategies of industrialization. This trend
was closely associated with the policy of import-substitution, which
aimed to increase self-sufficiency and reduce dependence on expensive
imports. Key industrial sectors for development included food, drink,
clothing, tobacco and textiles, with resource-rich nations also developing
heavy industries in oil and steel. Import substitution was enthusiasti-
cally adopted but, despite some successes in large nations like India,
increasing competition, combined with shortages in capital, technology
and infrastructure, made import substitution difficult.
In the 1960s a number of developing nations abandoned import-
substitution to embark upon export-oriented policies of light industri-
alization by means of making available fiscal incentives to attract
foreign direct investment (FDI). The policy of 'industrialization by invi-
tation', which was advocated by the Caribbean-born economist Sir
Arthur Lewis, involved the establishment of branch plants by overseas
firms in order to take advantage of cheaper labour costs. Also referred
to as 'enclave industrialization', the approach is closely associated with
the establishment of Free Trade Zones (FTZs) and Export Processing
Zones (EPZs) and specialist industrial estates where trade is unre-
stricted and duty free. Within the EPZ, the host nation provides build-
ings and services, together with a package of incentives which usually
includes freedom from local taxes and labour regulations. Flexible
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