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Notes

Manuel Castells and Gustavo Cardoso (eds), The Network Society (Baltimore, Center for Transatlantic Relations, 2006), p9.

21 Bill Dunn, Global Restructuring and the Power of Labour (London, Palgrave Macmillan, 2004), p118.

22 Kate Bronfenbrenner, "Uneasy Terrain: The Impact of Capital Mobility on Workers, Wages, and Union Organising", The ILR Collection, 2001, available at http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article = 1001 &context= reports

23 Raymond-Pierre Bodin, Wideranging Forms of Work and Employment in Europe, International Labour Office report 2001.

24 As above.

25 Robert Taylor, "Britain's World of Work: Myths and Realities'', ESRC Future of Work Programme Seminar Series, 2002, available at http://www.esrc.ac. uk/ESR ClnfoCentre/Images/fow \_publication\_3\_tcm6- 6057. pdf

26 These figures are from the Office for National Statistics' Social Trends 2001, p88. Kevin Doogan, New Capitalism? The Transformation of Work (Cambridge UK, Polity, 2008) provides a similar picture to these figures.

27 These are very rough calculations, given the problems of counting the number of workers in the often massive sectors of national economies. But Filmer's figures, those of UNDP and those of the CIA all suggest a pattern similar to this.

28 All figures are for 2005, from UNDP, Human Development Report 2009, Table 5.

29 A failure to see this leads some to vastly exaggerate the growth of the working class that has resulted from globalisation and urbanisation. So in a much quoted paper, Richard Freeman has written of an "effective doubling of the global labour force (that is workers producing for international markets) over the past decade and a half, through the entry of Chinese, Indian, Russian and other workers into the global economy". This has supposedly changed the "global capital/labour ratio by just 55 percent to 60 percent of what it otherwise would have been". There is a triple error here. It assumes that those labouring in the former USSR, China and India were not doing so as part of the world system until the early 1 990s, and that their whole workforces are now workers employed by capital. There is, however, a big difference between the workforce in its totality and those who are wage workers. In 2001 the non-agricultural workforce of the developing and transition economies was 1, 1 35 million (figures from Summary of Food and Agricultural Statistics, Food and Agriculture Organisation of the United Nations, Rome 2003, p12). But by no means all the non-agricultural workforce workers. Self-employment as a proportion of the non-agricultural workforce is 32 percent in Asia, 44 percent in Latin America and 48 percent in Africa (Women and Men in the Informal Economy, International Labour Organization, 2002). And only a proportion of those who seek work as wage workers succeed in getting employed in the formal sector in modern industry. Most are in very low productivity jobs, often working for firms with only a couple of workers.

30 International Labour Office, African Employment Report 1 990 (Addis Ababa, 1991), p3.

31 International Labour Ofice, Women and Men in the Informal Economy, 2002.

32 See Chapter Nine for details; see also Ray Brooks, "Labour Market Performance and Prospects", in Eswar Prasad (ed) China's Growth and

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393

Absolute surplus value: The increase in surplus value that occurs when working hours are increased without a parallel increase in pay.

Abstract labour: What all particular acts of labour have in common under capitalism; is measured in terms of the proportion each constitutes of the total socially necessary labour time expended in the economy as a whole.

Austrian School: Version of bourgeois economics which tends to see economic crises as inevitable, but necessary for continued economic growth. Best known figures Friedrich August von Hayek and Joseph Schumpeter.

Autarchy: Attempt to cut an economy off from trade links with the rest of the world.

Baran, Paul: Marxist theorist who argued that development was only possible in Global South through a break with capitalism. Collaborator of Paul Sweezy.

Bauer, Otto: Austrian Marxist of first third of 20th century who followed a policy of trying to reform capitalism.

Bernstein, Edward: "Revisionist" critic of revolutionary Marxism within German socialist movement at beginning of 20th century.

Bills: Documents issued by banks and other capitalist firms that act as IOUs as they grant each other credit.

Bohm-Bawerk, Eugen von: One of the founders of neoclassical economics, wrote best known critique of Marx's work.

Bartkiewicz, Ladislaus von: Polish economist at beginning of 20th century who carried through a serious examination of Marx's work but rejected some of its crucial findings.

Bretton Woods: Venue of the conference that set up the post World War Two financial system based on gold and dollars. Name given to that system until its collapse in 1971.

BRICS: Initials standing for Brazil, Russia, India, China and South Africa.

Bukharin, Nicolai: Bolshevik leader and economist theorist; executed by Stalin in 1938.

Capitals: Term often used to describe economically competing units of capitalist system (whether individual owners, firms or states).

Centralisation of capital: Tendency for capital to pass into fewer and fewer hands through takeovers, mergers, etc, so that whole capitalist system is under direct control of fewer competing capitals.

Chicago School: Followers of Milton Friedman and monetarism.

Circulating capital: see Fixed capital.

Clark, John Bates: American economist, one of the founders of neoclassical economics.

Cliff, Tony: Palestinian born Marxist resident in Britain through second half of 20th century; developed theory of state capitalism and, in a rudimentary

Glossary

394

form, of the permanent arms economy.

Commercial capital: Investment aimed at making a profit from the buying and selling of goods as distinct from their production. Sometimes called merchant's capital.

Commodity: Something bought and sold on the market. Commodities are commonly called "goods" in English.

Concentration of capital: Growth in size of the individual competing capitals that make up the capitalist system.

Concrete labour: Refers to the specific characteristics of any act of labour-what distinguishes, for example, the labour of a carpenter from that of a bus driver.

Constant capital: Marx's term for a capitalist's investment in plant, machinery, raw material and components (in other words, the means of production), denoted by c.

Corey, Lewis: Also known as Louis Fraina, an early member of the American Communist Party who later wrote an important Marxist analysis of the slump of the 1930s.

CPSU: Communist Party of the Soviet Union, ruling party within USSR. Its general secretaries-Stalin, Khrushchev, Brezhnev, Andropov, Chernenko and finally Gorbachev-ran the state.

Credit crunch: When buying and lending seizes up in the banking system and the wider economy.

Cultural Revolution: Political turmoil in China in the late 1 960s and early 1 970s.

Davos: Swiss ski resort where World Economic Forum of leading industrialists, financiers, government ministers and economists takes place each year.

Dead labour: Term used by Marx to describe commodities made in the past but used in production in the present.

Deficit financing: The method by which a government pays for the excess of expenditure over receipts from taxation by borrowing.

Deflation: A fall in prices, normally associated with impact of economic crisis.

Department One: Section of economy which is involved in turning out equipment and materials for further production (called by mainstream economists "capital goods").

Department Two: Section of economy concerned with turning out goods which will be consumed by workers (sometimes called "wage goods").

Department Three: Section of economy which turns out goods which will not be used as means and materials of production, and which will not be consumed by workers either-in other words the section that turns out "luxury goods" for consumption by the ruling class, armaments and so on. Sometimes referred to as Department 2a.

Dependency theory: Theory very widespread in 1950s and 1 960s which held that dependence of Third World economies on advanced economies prevented economic development.

Depreciation of capital: Reduction in the price of plant, machinery and so on during their period of operation. This can be due to wear and tear, or to the "devaluation" of capital (see below).

Derivatives: Financial contracts designed to allow investors to insure themselves against future changes in prices. Derivatives trading developed as a means of speculating on interest or exchange rates, and then into a form of financial gambling on changes in markets in general.

Devaluation of capital: Reduction in the value of plant, equipment and so on as technical advance allows a greater amount to be produced with a given quantity of labour time.

Glossary

395

396

Glossary

Golden Age: Term sometimes used for long boom in the decades following the Second World War

Hansen, Alvin: One of leading mainstream US economists of middle third of 20th century, converted to Keynesianism by crisis of 1 930s.

Hayek, Friedrich August von: Conservative economist who opposed attempts of state to mitigate impact of economic crises, claiming this could only make things worse. Admired by Margaret Thatcher.

Hilferding, Rudolf: Published pioneering work on impact of finance and monopoly on capitalism, but later served as finance minister in Weimar Republic and opposed revolutionary socialism.

Hobson, J A: British liberal economist of beginning of 20th century, argued that imperialism suited finance but not the rest of capitalism.

Human capital: Term used by mainstream economists to describe the skills employees gain from education and training.

ILO: International Labour Organisation, a United Nations agency dealing with labour issues.

IMF: International Monetary Fund, international body dominated by old industrial countries (particularly the US) which, along with the World Bank, lends money to countries in economic difficulties in return for them accepting tight controls over their policies.

Import substitutionism: Attempt to speed up industrialisation by blocking imports and providing protected market for local capitalists.

Informal sector: Jobs where workers do not have formal employment rights.

Kautsky, Karl: Most prominent Marxist at beginning of 20th century, later opposed revolutionary approach.

Keynesianism: Economic doctrine based upon ideas of the British economist of the inter-war years, J M Keynes. Holds that governments can prevent recessions and slumps by spending which is greater than their income from taxation (so-called "deficit financing").

Kidron, Mike: Marxist economist resident in Britain in second half of 20th century who further developed theory of permanent arms economy out of ideas of T N Vance and Tony Cliff.

Labour power: Capacity to work, which is bought by capitalists by the hour, day, week or month when they employ workers.

Labour theory of value: View developed by Marx (on basis of ideas of previous thinkers such as Smith and Ricardo) that there is an objective measurement of the value of goods, which is ultimately responsible for determining their prices. This is the "socially necessary" labour time needed to produce them-in other words, that across the system as a whole, using the prevailing level of technique, skill and effort. For Marx's own accounts of the theory, see Wage Labour and Capital, The Critique of Political Economy and chapter one of Capital, Volume One.

Glossary

397

Leverage: Borrowing to magnify the buying power of small cash payments for shares, property and other assets.

Liquidity: Having cash in hand (or assets that can be easily turned into cash) to meet claims that fall due or, in the case of a bank, meet withdrawal requests.

Luxemburg, Rosa: Polish-German Marxist, leader of revolutionary opposition in Germany to First World War, murdered by counter- revolutionaries in January 1919.

Macroeconomic: Referring to economy as whole, as opposed to "microeconomic" relations between individual elements within it. "Macroeconomics" is a branch of mainstream economics concerned with trying to guide national economies.

Marginalism: Another name for neoclassical economics.

Marshall, Alfred: British economist of late 1 9th and early 20th centuries and a key figure in neoclassical economics.

Menger, Carl: Austrian economist, one of the founders of neoclassical economics.

Mercantile or merchant capital: Investment aimed at making a profit without engaging in production, for instance in the buying and selling of goods.

Mercosur: A regional trade agreement between some Southern American states (Argentina, Brazil, Paraguay and Uruguay).

Microeconomic: see macroeconomic.

"Military Keynesianism": Term used for economic impact of rising military expenditure paid for out of government debt during Ronald Reagan presidency in 1980s US.

Minsky, Hyman: Non-orthodox mainstream economist of mid-20th century who recognised inevitability of speculative booms and busts for capitalism.

Mm: Ministry of lnternation Trade and Industry, powerful Japanese government agency.

Monetarism: Doctrine which holds crises cannot be solved by governments increasing their spending to more than their tax income. Increasing the supply of money, this holds, will simply lead to higher prices. Under the name the quantity theory of money, this was the orthodoxy in bourgeois economics before the rise of Keynesianism in the 1 930s, and became fashionable again in the mid-1970s.

"Monetary measures": Attempt to regulate economy, preventing inflation and countering recessions by government contraction or expansion of amount of money that is circulating.

Money capital: Money held with the intention of increasing its value, either as part of the process of productive investment, or through lending to others.

Moral depreciation of capital: Loss of value of plant and capitals as it becomes obsolescent in the face of rapid technological advance.

NAIRU: Non-Accelerating Inflation Rate of Unemployment, see Natural Rate of Unemployment.

Natural Rate of Unemployment: Level which free market economists decided was necessary for capitalism to avoid accelerating inflation. Also called NAIRU-Non-Accelerating Inflation Rate of Unemployment.

Neoclassical economics: Dominant school in bourgeois economics since the end of the 19th century. Believes value depends on the "marginal" satisfaction people get from goods, and justifies profit as a result of the "marginal productivity of capital". Also known as "marginalism".

398

Glossary

Neoliberal: "Liberal" is term used in continental Europe meaning "free market", so neoliberal means a return to free market economic measures. Used by some people on left to refer to attacks on workers' conditions and welfare benefits. Also sometimes used to describe period from mid-1970s to present.

"New Classical" School: School of free market economics which developed in 1 980s; holds that a market economy will stay in equilibrium unless subject to external forces or interference by state, monopolies or trade union action.

NICs: Newly Industrialising Countries of 1 960 to 1980s, like South Korea, Brazil, Taiwan.

Nomenklaturists: Those holding high up, privileged positions in state and industry in old Eastern Bloc countries before 1989-91.

Non-productive consumption: The use of goods in ways which serve neither to produce new plant, machinery, raw materials and so on ("means of production") nor to provide for the consumption needs of workers. The use of goods for the consumption of the ruling class, for advertising and marketing or for arms, all fall into this category.

Non-productiveexpenditures: Expenditures undertaken by capitalists or the state over and above what is necessary for the production of commodities (in cludes spending on consumption of the ruling class, on its personal servants, on the "'expenses of production" and so on).

OECD: Organisation of Economic Cooperation and Development. Organisation of the established industrialised countries with an important research arm.

Oil shock: Sudden increase in price of oil, especially as a result of the Arab-Israel war of October 1973.

Okishio's theorem: Theory which claims to disprove Marx's tendency of the rate of profit to fall.

OPEC: Organization of the Petroleum Exporting Countries, a cartel currently made up of twelve countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

Organic composition of capital: Ratio of the value of investment in plant, machinery, raw materials and so on ("means of production") to the value of expenditure on employing productive labour. Using Marxist terminology, this is the ratio of constant capital to variable capital, or dv. See also Technical composition of capital.

Organised sector: Term used in India for formal sector, ie where workers have legal working rights.

Pareto, Vilfredo: Italian neoclassical economist at turn of the 20th century, who supported Mussolini's rise to power.

Plaza Accord: 1985 Agreement by Japan and Germany to allow the value of their currencies to rise so as make it easier for the US to export.

Ponzi scheme: A fraudulent scheme which pays profits to old investors out of money collected from new investors.

Preobrazhensky, Evgeny: Russian Bolshevik activist and economist, executed by Stalin in 1 937.

Private equity funds: Investment vehicle where rich individuals come together to buy shares in companies in order to make a profit.

Productive expenditures: Spending which is necessary if commodities are to be produced and surplus value created (spending on the means and materials of production on the one hand, and on workers' wages on the other).

Glossary

399