[lbo-talk] Keiretsu Capital

jjlassen at chinastudygroup.org jjlassen at chinastudygroup.org
Mon Jan 12 14:19:37 PST 2004


DRR,

Yes, Taiwan is moving its whole range of (a la the Club for Growth ad) toxin- producing, worker-eating, amazing value-creating bundles of dead labor to China so that you and I can play deus ex II while a young generation of hopeful nomads from the decades-long-squeezed rural areas are herded into caged boxes and paid (real) wages that have been *falling* over the past decade despite fantastic growth and productivity gains. Development? I'm sorry, but increased industrial output in itself is just growth, not to be confused with development. What accounted for the 'miracle' of the 'developmental states' - equitable growth, rapid income growth, near full employment, massive investment in health and education - is just not happening in China, or Taiwan.

Actually it's what's left of Taiwan's previous 'developmental state' that is trying to 'keep the roots' in Taiwan (prevent industry from leaving), but has been outflanked by forces that have exploded the 'developmental state' - leading to the 'spatial fix' that began in earnest in the early-90s: export of capital, importation of temp workers from SE Asia, and the private takeover of financial capital. Unemployment is up, inequality is up.

jonathan

At 04:20 PM 1/12/2004, you wrote: Quoting jjlassen at chinastudygroup.org:


> China is not growing a hothouse developmental state.

Don't take my word for it. SilStrat has lots of material on the social engineering of East Asia's manufacturing muscle (free login required):

http://www.siliconstrategies.com/


> Taiwan's developmental state has also been hollowed out from within and
> without.

The silicon press says, Taiwanese chip firms are moving plant and equipment to China while retaining high-end design/software functions at home. Taiwan is also accumulating vast trade surpluses.

-- DRR ___________________________________ http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk

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