Global Capitalism Unbound: Winners and Losers from Offshore Outsourcing

274 Pages·2007·1.174 MB·English

by  Eva Paus (eds.)

Global Capitalism Unbound
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Global Capitalism Unbound
Winners and Losers from
Offshore Outsourcing
Edited by
Eva Paus
GLOBALCAPITALISMUNBOUND
Copyright © Eva Paus,2007.
Softcover reprint of the hardcover 1st edition 2007 978-1-4039-8429-6
All rights reserved.No part of this book may be used or reproduced in any
manner whatsoever without written permission except in the case of brief
quotations embodied in critical articles or reviews.
First published in 2007 by
PALGRAVE MACMILLAN™
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Companies and representatives throughout the world.
PALGRAVE MACMILLAN is the global academic imprint of the Palgrave
Macmillan division of St.Martin’s Press,LLC and of Palgrave Macmillan Ltd.
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and other countries.Palgrave is a registered trademark in the European
Union and other countries.
ISBN 978-1-349-53981-9 ISBN 978-0-230-60884-9 (eBook)
DOI 10.1057/9780230608849
Library of Congress Cataloging-in-Publication Data
Global capitalism unbound :winners and losers from offshore
outsourcing / Eva Paus,editor.
p.cm.
Includes bibliographical references and index.
1.Contracting out.2.Offshore outsourcing.3.Information
technology—Management.4.Globalization—Economic aspects.
I.Paus,Eva.
HD2365.G55 2007
331.1—dc22 2007009257
A catalogue record for this book is available from the British Library.
Design by Newgen Imaging Systems (P) Ltd.,Chennai,India.
First edition:November 2007
10 9 8 7 6 5 4 3 2 1
Contents
List of Contributors vii
List of Figures xi
List of Tables xiii
Acknowledgments xv
Part I Introduction
1 Winners and Losers from Offshore Outsourcing: What
Is to Be Done? 3
Eva Paus
Part II The Great Transformation: The
Globalization of the Labor Market
2 The Challenge of the Growing Globalization of Labor
Markets to Economic and Social Policy 23
Richard B. Freeman
3 Offshoring and Labor Recommodification in the
Global Transformation 41
Guy Standing
Part III The Impact of Offshoring and
Globalization in Developed Countries
4 Globalization of Services: Friend or Foe? 63
Catherine L. Mann
5 Dynamic Gains from U.S. Services Offshoring:
A Critical View 77
William Milberg, Melissa Mahoney,
Markus Schneider, and Rudi von Arnim
vi/ contents
6 Bargaining Power, Distributional Equity and the
Challenge of Offshoring 95
James Burke and Gerald Epstein
7 Social Contracts Under Siege: National Responses to
Globalized and Europeanized Production in Europe 113
Vivien A. Schmidt
8 The European Trap: Jobs on the Run,
Democracy at Stake 131
Hans-Peter Martin
Part IV Offshoring for Development?
9 Offshore Outsourcing of Services: Trends
and Challenges for Developing Countries 147
Luis Abugattas Majluf
10 Offshore Outsourcing of Services as a Catalyst of
Economic Development: The Case of India 163
Navdeep Suri
11 Offshore Outsourcing and Industrial Restructuring:
New Europe’s Success 181
Bartlomiej Kaminski
12 The Impact of Foreign Investment on China’s
Industrial Innovation 197
Gary H. Jefferson
13 Capturing the Benefits from Offshore
Outsourcing in Developing Countries:
The Case for Active Policies 215
Eva Paus and Helen Shapiro
References 229
Index 247
List of Contributors
Luis Abugattas Majluf is a Senior Advisor, UNDP Arab States Regional
Initiative on Trade, Economic Governance, and Human Development,
Cairo. Previously he was a Senior Expert at UNCTAD in the Trade
Negotiations and Commercial Diplomacy Branch. He has been a consult-
ant to major international organizations and to private and public sector
organizations in many countries.
James Burke received his Ph.D. in economics from the University of
Massachusetts at Amherst and currently works at Mount Holyoke College.
In work with the Political Economy Research Institute (PERI) at the
University of Amherst, his recent research interests have focused on eco-
nomic globalization and its effects on labor.
Gerald Epstein is Professor of Economics and Codirector of the Political
Economy Research Institute at the University of Massachusetts, Amherst.
His most recent edited and coauthored books include Financialization and
the World Economy (edited, E. Elgar, 2005), and An Employment Targeted
Macroeconomic Policy for South Africa (E. Elgar, 2007), coauthored with
Robert Pollin, James Heintz, and Leonce Ndikumana.
Richard B. Freeman is the Herbert Ascherman Chair in Economics,
Harvard University, and Program Director, Labor Studies, National Bureau
of Economic Research, both in Cambridge, Massachusetts. He is also
Senior Research Fellow, Centre for Economic Performance, London School
of Economics, London.
Gary H. Jefferson is the Carl Marks Professor of Trade and Finance at
Brandeis University, where he holds joint appointments in the Department
of Economics and the International Business School. His research focuses
primarily on China’s industrial sector. He has published widely on the sub-
jects of industrial productivity, enterprise restructuring, foreign direct
investment, and technical innovation.
Bartlomiej Kaminskiis Associate Professor of government at the University
of Maryland, College Park. He has served as a foreign trade consultant for
viii/ list of contributors
several international organizations including the World Bank, UNDP, and the
European Commission. His most recent book Globalization and Corruption
(coauthored with Antoni Kaminski) was published in Poland in 2004.
Catherine L. Mannis Professor of International Economics and Finance at
Brandeis University and a Senior Fellow at the Peter G. Peterson Institute
for International Economics in Washington. Previously, she served at the
Federal Reserve Board of Governors, the President’s Council of Economic
Advisors at the White House, and at the World Bank. Her most recent book
is Accelerating the Globalization of America: The Role for Information
Technology(2006).
Hans-Peter Martin has been a party-free, independent member of the
European Parliament since 1999. Before that he worked for fifteen years as
a foreign correspondent for the German newsmagazine Der Spiegel. His
book The Global Trap (1996) became an international bestseller and was
translated into 27 languages. His forthcoming book is entitled The
European Trap—The End of Democracy and Well-Being to be published by
Piper, Munich.
William Milberg is Associate Professor of Economics, New School for
Social Research and Schwartz Center for Economic Policy Analysis. Melissa
Mahoney, Markus Schneider, and Rudi von Arnim are Research Assistants
at the New School’s Schwartz Center for Economic Policy Analysis.
Eva Paus is Professor of Economics and the Carol Hoffmann Collins
Director of the Dorothy R. and Norman E. McCulloch Center for Global
Initiatives at Mount Holyoke College. Her most recent book is Foreign
Investment, Development, and Globalization. Can Costa Rica Become Ireland?
(Palgrave Macmillan, 2005).
Vivien A. Schmidt is Jean Monnet Professor of European Integration at
Boston University. She has written extensively on European political econ-
omy and public policy. Her most recent books are Democracy in Europe
(Oxford, 2006) and The Futures of European Capitalism(Oxford, 2002).
Helen Shapiro is an Associate Professor at the University of California,
Santa Cruz, where she teaches in the departments of Sociology, Latin
American and Latino Studies, and Economics. She has published widely on
Latin American economic development and industrial policy, including
Engines of Growth: The State and Transnational Auto Companies in Brazil
(Cambridge: Cambridge University Press, 1994).
Guy Standing is Professor of Economic Security, University of Bath, and
Professor of Labour Economics, Monash University. He was previously
list of contributors / ix
Director of the Socio-Economic Security Programme of the International
Labor Organization. His recent books include Beyond the New Paternalism.
Basic Security as Equality(London and New York: Verso, 2002).
Navdeep Suriis a serving member of the Indian Foreign Service and is cur-
rently India’s Consul General in Johannesburg, South Africa. He has previ-
ously served in New Delhi and in India’s diplomatic missions in Cairo,
Damascus, Washington, Dar es Salaam, and London. His study on out-
sourcing and development was presented at the Inter-Government Experts
Meeting at Geneva organized by UNCTAD in February 2005.