Jim Devine asked:

>right, but should the UN encourage this trend?

Any suggestions which trend or which mode of accumulation the UN 
should encourage in LDCs?

Mixed economy combined with cooperatives, publicly controlled 
corporations, and half-autonomous institutions in the form of a 
Greater Mumbai Enterprise Board?

"A somewhat comprehensive socialisation of investment will prove the 
only means of securing an approximation to full employment; though 
this need not exclude all manner of compromises and of devices by 
which public authority will co-operate with private initiative." This 
proposal was submitted to advanced economies. Does it also apply for 
emerging economies?

Or do you prefer a path of development as proposed by Austin & Suguhira:

"The prevailing view of industrialization has focussed on technology, 
capital, entrepreneurship and the institutions that enabled them to 
be deployed. Labour was often equated with other factors of 
production, and assigned a relatively passive role. Yet it was labour 
absorption and the improvement of the quality of labour over the 
course of several centuries that underscored the timing, pace and 
quality of global industrialization.

While science and technology developed in the West and whereas the 
use of fossil fuels, especially coal and oil, were vital to this 
process, the more recent history has been underpinned by the 
development of comparatively resource- and energy-saving technology, 
without which the diffusion of industrialization would not have been possible.

The labour-intensive, resource-saving path, which emerged in East 
Asia under the influence of Western technology and institutions, and 
is diffusing across the world, suggests the most realistic route 
humans could take for a further diffusion of industrialization, which 
might respond to the rising expectations of living standards without 
catastrophic environmental degradation."
( Austin, Gareth; Sugihara, Kaoru: Labour-intensive industrialization 
in global history
http://www.routledge.com/books/details/9780415455527/  )

Sugihara's conclusion:
www.cseas.kyoto-u.ac.jp/edit/wp-content/uploads/2012/06/Sugihara_WP_Web_081018.pdf
 


"The connection between labour-intensive industrialisation and 
demographic patterns, which had been taken up in the proto-industry 
literature but not fully developed with regard to the diffusion of 
industrialisation, must be explored further. An implication of this 
paper is that we need to discuss the possibility that the employment 
opportunities created by labour-intensive industrialisation 
encouraged population growth in a major way. Not only did this 
stimulus release severe resource constraints arising from the 
shortage of land, but it supported a slow but steady rise of labour 
productivity in agriculture by offering additional work opportunities 
in the countryside and beyond. Improved agriculture in turn fed more people.

This familiar linkage must be applied not only to the country-level 
analysis but to the understanding of economic development at regional 
and global levels, since international trade, migration and the flows 
of capital increasingly helped the more efficient global resource 
utilisation during the last two centuries. In so far as 
labour-intensive industrialisation embraced the gradual improvement 
of the quality of labour, this was the main route by which mankind 
escaped the Malthusian trap of overpopulation and the Ricardian trap 
of rising food prices. In the end, it was this virtuous circle, not 
the sudden availability of vast resources in the New World, that 
sustained the global diffusion of industrialisation."

hk


At 15:36 10.12.2012, Jim Devine wrote:
>right, but should the UN encourage this trend?
>
>On Sun, Dec 9, 2012 at 10:10 PM, Anthony D'Costa
><[email protected]> wrote:
>>Use of K intensive technology is a capitalist imperative, if 
>>businesses want to remain somewhere near the tech frontier and 
>>compete with other big firms from elsewhere in an international 
>>market. This kind of production regime fulfills at least two 
>>conditions, catering to middle class demand, that is growing and 
>>meeting international quality standards. In and of themselves this 
>>is not a bad thing (after all these technologies allow economies of 
>>scale) and firm competitiveness. Think of Mao's backyard steel 
>>mills versus the Korea's POSCO. Where the difficulty is growing 
>>employment in these sectors in the absence of a dynamic growing 
>>formal sector from the unorganized sector. Surely aggregate demand 
>>(lack thereof) must have some role to play not to mention the 
>>complexities of an underdeveloped agricultural sector.
>>  Anthony D'Costa
>
>
>me:
>>I remember taking a graduate-level economic development course 
>>(with Charles Blitzer, I believe) in which the reading, including 
>>an article by Amartya Sen and a book by the UN on project 
>>evaluation, seemed to encourage the use of capital-intensive 
>>technologies despite low wages and unemployed labor. (I think it's 
>>the UN International Development Organization.)
>
>--
>Jim Devine /  "Segui il tuo corso, e lascia dir le genti." (Go your
>own way and let people talk.) -- Karl, paraphrasing Dante.

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