Tendency towards a New International Division of Labour: Worldwide Utilisation of Labour

Force for World Market Oriented Manufacturing

Author(s): Folker Frobel, Jurgen Heinrichs and Otto Kreye
Source: Economic and Political Weekly, Vol. 11, No. 5/7, Annual Number: Limits of Export-Led
Growth (Feb., 1976), pp. 159-161+163+165-167+169-170
Published by: Economic and Political Weekly
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 Tendency towards a New International
Division of Labour
Worldwide Utilisation of Labour Force for
World Market Oriented Manufacturing
Folker Frobel
Jurgen Heinrichs
Otto Kreye
The vresently observable worldwide industrial relocation in manufacturing (uithin the traditional
indutstrialcentres and towards the periphe?y) is the resUlt of a qualitative change of the conditions for capital
expansion and accumlulation enforcIng a new international division of labour. To pose the problem in
terms of an absoluite fall of the profit rate in the traditional manufacturing centres forcing capital to re.-
locate part of its prodzuctionwou,ld be quiite inadequate. The quiestion to be answered (which is, in fact, an-
swered by the movemnent of capital) is whether production at the tradlitionalsites of production or production
at new sites provides for better expansicn and accumutlation of capital under "given" conditions.
As yet, it is hlardlypossible to estimate the extent of the displacement of manufacturing resulting
from the trend towairds uworldwideindustrial relocation. There is evidence, however, that iz somneplaces
in the world a significant part of the labour force which belonged to the industrial reserve army onlyl a few
years ago has been converted into an active labour army in the ineantime. There are indications that not
only the border regions of Wester? Euirope, not only Middle America, North Africa, South Africa and
Southeast Asia, butt increasingly so Eastern Europe, Souith America, Central Africa and South Asia are
providing sites for relocated manzufacturing.
develops the wage labour/capital rela- capitalist social formations and of the
Modes of Capital Expansion and tionship as well as the productive forces developing capitalist formation itself
Accumulation only if (a) the restraints (often extra- are transformed and developed such as
economic ones) which impede further to allow not only for appropriation of
THE economic, social and political
development of wage labour and pro- abstract wealth at this or that particu-
history of the last five centuries has
ductive forces can be overcome, and lar opportunity, but, concomitantly, also
been shaped by the capitalist formation
if (b) greater profits can be made in for continuous reproduction-of the pre-
of society on a worldwide scale, how-
this way. In other words, the deter- conditions for further capital expansion
ever mulch class struggle of the op-
mining force behind capitalist develop- and accumulation. Rather schematically
pressed (e g, in the Russian, Chinese
ment is expansion and accumulation of speaking and ignoring interconnections
and Cuban revolutions) aims at consci-
capital, and not an alleged absolute for a while, oine can distinguish two
ous reconstitution of society. According
tendency towards the extension and principal formiisfor ensuring this:
to Marx's analysis of Capital, which
deepening of the wage, labour/capital
will be adopted in the present paper, (1) Non-wage labour relations of sub-
relationship or of the productive forces.'
expansion ("Verwertung") and accumu- sumption to capital are established
lation are the objective basis of the Thus, considering the law of motion and preserved, mainly by extra-
movement of capital and unlimited underlying capitalist formation of so- economic force exerted by slave-
appropriationiof abstract wealth is the ciety, it is imperative for historical holders, feudal landlords, the state,
sole motive of the capitalist in so far as analysis of capitalist development to be etc, which enable the capitalist
he funotions as the conscious represen- aware, first of all, of the different class to appropriate permanently
tative of this movement. modes of capital expansion and accu- part or most of the surplus produce
It would appear, therefore, that the mulation (which, in turn, draw upon of the direct producers.
analysis of capitalist development has different modes of produiction, preserv- (2) The direct producers are deprived
to proceed from the process of capital ing, dissolving, adapting and combin- of their means of production (-
expansion and accumulation and its de- ing them according to what the exi- primitive accumulation/original ex-
terminants, i e, its exigencies, oppor- gencies, opportunities and obstacles of propriationi)anid are forced, thence,
tunities and obstacles, and not, e g, capital expansion and accumulation seemingly through "the dull com-
from the development of the wage under giveen and/or self-generated con- pulsion of economic relations"
labouir/capital relationship or from the ditions may afford). alone, to sell their labour power
development of the forces of produc- Now capitalist fornmation of society, permanently on the labour market
tion, the creation of a free labour force in order to provide for unlimited ap- to the owners of the means of
and the unfolding of productive forces propriation of abstract wealth and ex- producition in order to earn sub-
being only a particular means amongst pan.sion and accumutilation of capital, sistence (- capital accumulation
others (albeit decisive ones under speci- prestipposes policies and mechanisms proper on the basis of the specific
fic conditions) for securing expansion through which the economic, social and capitalist relation of production).
and accumulation of capital. Capital political conditions of pre- and non- The modes of capital expansion and

159

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Annual Number February 1976
accumulation pertaining to alternative
no 1 include profitable utilisation of
slave labour, of coerced labour (share-
cropping, etc) and of contract proces-
sing in "non-capitalist" economies. Ac-
cording to an established terminology,
the underlying modes of production are
called "non-capitalist". Historical in-
vestigations,
however, disclose the
policies, forces and mechanisms through
which these original modes of produc-
tion are, under appropriate conditions,
modified such as to contribute to capital
expansion and accumulation. Thereby,
not only the rise of capitalism is cover-
ed, but more generally the subsumption
of non-capitalist social for-mations by
capitalism already in existence. For de-
tails concerning the continuous repro-
duction of the preconditions of capital
expansion and accumulation we have to
refer to the literature on the subject.2
These investigations are "historical" as
viewed from the analysis of capital pro-
per, in so far as the latter analysis, for
the points of transition, only presupposes
the (contingent) existence of the pre-
conditions for capital expansion and
accumulation, whereas the analysis of
the. release - whether by an intrinsic
process, or stimulated from outside via
commerce, overtly forcible means (which
was historically decisive), etc, or by a
combination of the two - of certain
elenments and processes conditioning the
integration of the old social formation
into the capitalist one is not part of the
analysis of capital seuisu stricto. Of
course, it is not necessary to stipulate
that the protagonists of this releasing
process subjectively aim at the deve-
lopment of capitalism per se. It is the
objective function for expansion and
accumulation of capital, not the sub-
jective motive, which counts.
As for alternative no 2, one has to
begin with the transitional modes of
capital expansion and accumulation
which, for the first time, transform
money into the unlimited movement of
capital on the basis of wage labour.
This specific primitive accumulation!
original expropriation process produces
a market for the labourer's means of
subsistence and, most importantly, the
preconditions for further expansion and
accumulation of
capital seemingly
through "the dull compulsion of eco-
nomic relations" alone, i e, a class of
"free" wage labourers.3 The putting-
out system ("Verlagssystem") represents
one pertinent case, the enclosure move-
ment in Britain another one. Each his-
torical analysis of the transformation
160
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ECONOMIC AND POLITICAL WEEKLY
involved indicates the obstacles and the dies (including labour force) extracted
large amount of sheer force, class con- from "non-capitalist", "traditional" or
flict, cultural degradation, social in- "backward" sectors and excessive utili-
security and, more often than not, mi- sation of human material temporarily
sery which are inherent in the creation even beyond the limits of individual
and stabilisation of these preconditions.4 physical reproduction enable to trans-
form, "within certain limits, the labour-
Once a class of "free" wage labour-
er's necersary consumption-fund into
ers has been created, further expansion
a fund of the accumulation of capital"6
and accumulation of capital is made
even under conditions where the histo-
possible by means of increasing pro-
rical elemiientof the consumption-fund
longation, of. the working day as long
is, by comparisoni, very small. Direct
as capital is not effectively bound by
production (as opposed to the produc-
legal regulations, these being achieved
tion of the labour force and its means
by the strength of workers' associations
of subsistence) is here performed within
combined with the capitalists' recogni-
the specific capitalist relation of pro-
tion of diminishing returns on too long
working days. Of course, this possible duction of wage labour and capital. The
labour force itself and/or its means of
source of profit is limited by the ma-
xirnuitmnumber of simultaneouslyexploit- subsistence are pr-oduced in "non-
capitalist", "traditional", etc, sectors,
able working days available under "gi-
ven" conditions. By increasing produc- which, moreover, often have to provide
for the "old" age care of the exhausted
tivity of work (machinery, factory
system,....) and, as a consequence, in- labourers. The cost of labour force is,
therefore, to a high degree externalised
creasing the "rate of exploitation", the
as viewed from the capitalist sector
limits to capital expansion and accumu-
proper. These "traditional"sectors, howy-
lation based on whatever mode are large-
ly disposed of (limits, e g, imposed by ever, are non-capitalist only in that
their material reproduction including
effective organisation of workers).5 The
the produictionof labour force and (part
epoch-marking function of this specific-
of) its means. of subsistence (benefiting
capitalist mode of production- provid-
the capitalist sector proper) is performed
ed, of course, and to the extent that
not within the specific capitalist mode
the conditions of capital expansion and
accumulation (largely duie to capitalist of production, or is based on low capi-
tal intensity (relative to the respective
development itself) allow and/or pres-
level of worldwide capitalist develop-
sure for it - is (a) to create the means
meiit) combined witlh increased physical
for making. the relative proportions of
exploitation of the work force employed
the active' and the reserve army of
therein (long working days, high in-
labourersdisposable within'certain limits
(i e, changeable for the benefit of maxi- tensity of work). It is these functions
on behalf of which these "non-capi-
mum profits byr, e g, checking the in-
talist" sectors are integrated into and
crease of the historical element of the
even preserved in the worldwide pro-
labourer's consumption-fund)even under
cess of capital expansion and accumu-
conditions where the creation of wage
lation. In addition, this integration is
labourers by primitive accumulation/
often assured by a policy which is
original expropriation has reached in-
devised exactly for this purpose.7 Do-
surmountable demographic or social
mestic work and child care by wives
liits, but also (b) to unfold the pro-
represents another and evidently very
(luctive forces including transportation,
important related instance.8
*communicationtand managerial tech-
niques at an unprecedented rate, and
(c) to produce unprecedented material IH
wealth even possibly in terms of mass Capitalist Development
consumption goods, albeit in real his-
In all these modes of possible capital
tory with an absolute bias towards an
expansion and accumulation, the indi-
extremely skewed distribution both
vidual capital, driven by the greed
intra- and inter-nationally, including
after abstract wealth, organises the
absolute pauperisation of roughly two-
production of social wealth ("wealth of
thirds of the population in the peri-
nations") by withdrawing the surplus
phery.
product from the direct producer and,
As the last mode of capital expansion provided realisation has been achieved,
and accumulation to be mentioned, we r-ecapitalisingit at least partly. To be
turn to a mechanism mediating be- distinguished from the production of
tween alternatives no 1 and no 2. Subsi- abstract wealth are all modes of redis-
 ECONOMIC AND POLITICAL WEEKLY
tribution of the already somehow and
somewhere produced abstract wealth.
That means, the premiums to be paid
fol "protectivc" services mediating
capital expansion and accumuilation, all
metlhods of enrichmiient by fraud, rob-
bery, 'commilercial over-pricing, specula-
tion, usury etc, all redistributive mea-
sures of the state, all for-ms of mono-
polv rents (based oni natur al monopo-
lies or on mloniopolies due to patents,
cartels, etc).
Thus, the world history of the last
fiv-e hutndred years, in so far as it was
macie by man, is the result of (1) the
hiistorical speciality of differenit social
formations, (2) the inherent logic of
capital expansion and accumutlation
with its totalising tendency, and (3)
(the attempts towards) conscious re-
constitution of society; In order to
specify the present state of capitalist
formation of society, however, the ex-
ternally given restrictions imposed by
nature also have to be accounted for,
i e, the limitation) and uneven distri-
bution of natural resources enabling
oligopolistic "abuse", and the physio-
logical and, maybe, even physical
restraints for unlimited upfolding of
social forces of production. Presum-
ably, capitalism is, because of the in-
herent logic of competitive capital
accumulation, structurally unable to
take these restrictions coherently into
accouint.
A history of capitalist development,
then, would have to reveal in detail in
which combination of modes and why
when end where capital expansion and
accumulation is unfolding itself spatio-
temporally. In other words, the task
would appear to be not only a detailed
descr-iption of when and where which
modes of capital expansion and accu-
mulation floturished, but at once an
explanation why tlis pattern and evo-
lution (properly taking into account the
prevailing restrictions, the self-generat-
ed conditions and class struggle) was
both feasible and most profitable for
individual capital and therefore - in
line with the underlying approach
necessary.
Of course, it is not at all possible
to accomplish all this here.10 More
specifically, the following unsystemati-
cally compiled problem areas will not
he adequately treated, let alone "de-
duiced" here:
(a) The splitting into centre and
periphery and, presumably, semi-
periphery,'1 both intra- and
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inter-nationally ("unequal deve-
lopment").
(b) The short-, medium- and
long-term cycles apparently in-
herent in capital expansion and
accuimulation,and the role there-
in of realisation, over-accumula-
tion, etc, crises and of major
inrnovationis ("ineven develop-
imeit").
(c) The development of class struc-
ture, in particular the specific
role of (wage) labour in the
capitalist sector proper and in
the subsi(lising "traditional"
sectors for stabilising capital ex-
pansion and accumulation. Some
quiestions which immediately
arise are: Under which condi-
tions does "the dull cdmpulsion
of economic relations" inherent
in the wage labour/capital rela-
tionship provide for a more
efficient form of labourl control
than other forms (tendency for
making the surplus labour ac-
cruing to the capitalist class
invisible in that wages appear
to be the just, freely bargained
compensatioti for the services
performed by the respective
production factor, which induces
trade unionist mentality)? Under
which conditions is higher pro-
ductivitv and intensity of work
more efficiently assured by wage
labour than by other forms of
labour control? Under which
conditions is the creation and
e.xtension of a market for the
means of stubsistence (including
the historical element) of part of
the labour force in the centre
ftunctional or even necessary for
overall capital expansion and
accumulationi (as opposed to a
relative increase of luxury con-
sumption or to an increase of
the effective demand for wage
goods also in the periphery)? In
what sense, if at all, is the class
of "free" wage labourers in the
capitalist sector proper the bearer
of historical progress in the
capitalist formation of society (in
a - doubtful - analogy to the
role perfonmed bv the rising
bouirgeois class in West Euro-
pean feudal society), and what
are the lessons to be drawn from
this for political strategies?
(d) The role of the different types
of states for creating and main-
taining the preconditions
Annual Number February 1976
capital expansion and accumu-
lation, culminating in the bour-
geois liberal state at one extreme
and in the colonial administra-
tion at the other, or in the social-
democratic interventionist state
at one extreme and in the autho-
ritarian repressive state at the
other, corresponding to the res-
pective functions which the
lifferent territories at a given
phase of worldwide capitalist
development were (or were able)
to accomplish in the worldwide
division of labour established by
the expansioni and accumulation
of capital, but also corresponding
to the balance of power in class
conflict (infrastructure; private
law; labour supply; channeling
of impending realisation crises
through regressive income poli-
cies, export promotion, etc, in
circumstances where the effective
demand for wage goods at homne
is restricted, i e, where wages are
only a cost factor and not a
demand factor, too;12 ensuring of
motivations for smooth function-
ing of the system by means of
the educational system, etc; con-
tainment of social tensions re-
sulting from mass unemployment,
etc . . ..)13
In conclusion: Capitalist development
is the spatio-temnporalunfolding of 'hose
combinations of the modes of capital
expansion and accumulation which,
under "given" conditions (worldwide!),
yield the maximum profit for the res-
pective individual capitals. That means,
inter alia and most importantly, that
capital expansion and accumulation is
transnational right from the outset.
(This is not contradicted by the, recog-
nition that the "world" of capital is
still in the process of encompassing
literally the globe including the white
patches both geographically and demo-
,raphically.) What might appear as
national reproduction of capital turns
oult, on closer inspection, to be repro-
duction under conditions which make
capital expansion and accumulation, at
this particular time, most profitable at
this particular place. It is the condi-
tioIns of present-day capital expansion
alnd accumulation that we turn to now.
III
Present-day Conditions of Capital
Expansion and Accumulation
Very loosely speaking, one can dis-
of tingulish four phases of the develop-
16I
 ECONOMIC AND POLITICAL WEEKLY Annual Number February 1976

inent of the capitalist world system in cialist countries for capitalist enterprises, South Korea (55.3 hours in cloth-
tlhe last century: (1) a period essen- are integrate(d into the production pro- ing industry), 49.5 hours in
tially of free trade and colonialism up cess of capital - in case it should turn Singapore, 46.5 hours in South
to 1914 ("Pax Britannica"); (2) a crisis- ouit that this integration does not re- Africa, whereas it is 40.6 hours
ridden period of national protectionism, main restricted to negligible pockets of in the US and 42.7 hours in the
import substitution, mass unemployment, the economy. Thus, considering the FRG (figures for manufacturing
world economic cr-isis, fascism, major development of transport, etc, techno- in 1972).1'
inter-imperialist wars, decline of Britain, logy (see below), it appears justified to (3) There are only few indications
rise of USA and USSR, etc, between speak of the development of a world- on labour productivity and
1914 and 1945; (3) a period of the wide induistrial reserve army in this effective wage costs per unit of
reappearance of the market on a higher connection, becauise - and to the ex- output in relocated industries
level between 1945 and 1965 ("Pax tent that - all these potential labou- (this may not be accidental).
Amnericana'?), including national libera- rers "successfully" These indications reveal that,
compete with the
tion wars, the final breakdown of the for comparable production pro-
labourers in the traditional industrial
colonial system and the final instalment centres.1 ", In somewhat more detail, cesses, productivity corresponds
of economiiic dependency relations as a to that in the industry of the
this worldwide reserve army displays
substitute thereof ("dependencia"). traditional industrial countries.
It the following characteristics specifying
The United States Tariff Commis-
is almost conventional wisdom that by the economiiic terms of its potential
sion reported these findings for
now we are facing (4) the emergence uitilisation in the expansion and accu-
selected branches of industry in
of a new crisis period which may well mulaition process:
1970:
bring abouit new major adaptations (1) The reproduction cost including
within the capitalist world system re- the historical element of this Productivity Of workers in foreign
sulting e g, in authoritarian state rule labour force amounts to far less establishments assembling or process-
ing products of US origin generally
also in the centre, the rise of some than at the traditional locations approximates that of workers in the
semi-peripheral "ssubimperialist" powers, of industry; the wages actually same job classifications in the United
and even new inter-imperialist wars. to be paid by capital are fre- States. However, even for those few
Postponing the question of a new crisis instances in which foreign labour
quently even less than the cost productivity was significantly less
period for a while, easily observed phe- of reproduction, due to the sub- than that of United States wor-
nomena of the economic "system" like sidv mechanisms mentioned kers, the hourly earnings abroacl
imiassive in(lustrial relocation of manu- above. The figures given in the were such that, save for Canada,
labour costs per unit of output were
facturing within the centre and towards table are average gross wages. substantially lower in the foreign
the periphery, declining investment By accouinting for the differences than in the domestic establishment...
rates and rising structural unemploy- in social overhead costs, wages On the average (weighted by the
meint in some industrial branches in the value of reported imports) foreign
per hour in these countries can labour required 8 per cent more man-
centre, and increasing export oriented be estimated to amount roughly hours than the man-hours required
manufacturing in the periphery strongly to one-tenth of those in the US. by US workers to assemble such
suggest that present-day conditions of (2) The working day (the workinig articles as radios, phonographs, televi-
sion receivers and sub-assemblies, and
capital expansion and accumulation have week, the working year) per semicondtuctors. The foreign wage
ex;perienced fundamental qualitativxe labourer is considerably longer rates were such, however, that the
changes enforcing a new international than in the traditional indus- average foreign unit labour cost
division of labour. trial countries (on 'the average (again weighted by the value of re-
ported imports) in assembling articles
The following tentatively proposed 10 to 20 per cent longer than was 14 per cent of the US unit
set of conditions is supposed to shape in the United States and in the labour cost in the assembly of simi-
specifically present-day capital expansion Federal Republic of Gernany). lar articles. For the Far Eastern
The work week is 50 hours in countries (except Japan) the unit
and accumulation:14 labour cost ranged from 3 to 11.5
(a) The development of a huge po- Colombia (1970), 51.6 hours in per cent (avferaged 8 per cent) of
tentially available labour force. The
availability of this labour force is effec- TABLE: AVERAGE WAGES IN MANUFACTURING
tively unlimited in so far as capital can
call on the (reserve) armies of un- and Ghana (1971) 71.91 Ceclis 39.50 US $ per month
under-employed labour - be they of Morocco (1972) 0.96 Dirham1 0.21 US $ per houIr
the order of one or several hundred mil- Mauritius (1972) 6.68 Ruipees 1.30 US $ per day
lion - mainly Brazil (1970) 429.19 Cr1uzeiros 86.70 US $ per nmonth
in Asia, Africa and Colombia (1970) 5.90 Pesos 0.31 US $ per hoUr
Latin America, and even in socialist Mexico (1972) 1956 Pesos 156.60 US $ per month
countries. Most of this labour force Panama (1971) 0.92 Balboas 0.92 US $ per hour
consists of the latent overpopulation in India (1970) 227.10 Rupees 30.00 US $ per morith
rural areas which, through the employ-
South Korea (1972) 20,104 Woi 50.40 US $ per month
Philippines (1971) 245 Pesos 38.10 US $ per month
ment of capital in agriculture,. provides Yugoslavia (1972) 1592 Dinars 93.60 US $ per month
a continuous flow of people into the USA (19742) 3.81 US $ per hour
urban agglomerates and slums where W Germany (19?2) 7.24 Mark 2.27 US $ per hour
they constitute a nearly inexhaustible
supply of available free labour, force.'5 Note: The official exchange rates for the respective year are used for the
Another part consists of the workers equivalents in US $.
who, under contract processing- in so- Source: International Laboux Office, "1973 Year Book of Labour Statistics"
(Geneva: ILO, 1973), 574-82.

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 ECONOMIC AND POLITICAL WEEKLY Annual Number February 1976

the US unit labour cost; for Mexico which allows for rapid and relatively tion of capital on a world scale only
it ranged from 15 to 21 per cent and cheap transportation among places. of
averaged 20 per cent. . . On the ave- generated the international division of
rage foreign labour required 3 per intermediate and/or 'final production labour in which, essentially, raw mate-
cent less man-hours than was re- and consumption of both large bulk rial producing countries exchanged with
quired by US workers to assemble goods and fragile or delicate wares by capital and consumer goods producing
such diverse articles as luggage, means of specialised ocean carriers,
baseballs, toys, footwear, gloves, containerisation and aircargo, as' well countries - i e, capital, which spread
photograph equipment, ahd scientific from Europe and later from North
instruments."8 as efficient telecommunication systems America and Japan, was only able to
The American labour union federa- data-processing techniques and other expand in the countries of Asia, Africa
tion AFL/CIO reported' in testimoniy organisational procedures. and Latin America through the produc-
before the Finance Committee of the (d) The deve,lopment of technologies tion of mineral and agricultural raw
American Senate: for the exploitation of previously in- materials.
As a result, foreign plants, operating accessible na'tural resources, including The main thesis now is that, rough-
with American technology, probably new methods of exploration and min- ly speaking, in the sixties the new set
are as efficient or nearly as efficient
as sinmilarfactories in the US. But ing, such as the use of satellite5 and of conditions for capital expansion and
With wages and fringe benefits th7at deep sea drilling in exploration, and accumulation became effectively opera-
frequently are 50 to 90 per cent ocean floor installations for exploitation. tive,21resulting first of all in industrial
lower - and longer working hours relocation in manufacturing, in 'the
the unit-cost advantage can be (e) The development of an internatio- beginning mainly in labour intensive
substantial."9 nal capital market which assures the production processes *(orin processes
An analysis of the members of the worldwide mobilisation and transfer of where
labour intensive techniques can
Association for Electronic Component capital. The principal institutionr of
effectively be substituted for more capi-
of the Federal Republic of Ger.nany this international capital market is the tal intensive
ones). Extra profits firstand
showed that a move to Tunisia of pro- transnationally operating and mutually then profits
pure and simple which are
duction of components for televisionl intertwined network of major banks.
high'er than the profits derived from
sets would lower the manufacturing
(f) The development of elements of traditional production sites are reaped
cost by 31 per cent; production cost an international superstructure to per- by relocation in
manufacturing, and
of loudspeakers could be lowered by
form, on a transnational scale, func- not only, as before, in plantation pro-
45 per cent. Compared to the FRG,
tions that are indispensable for the duction and mining. That is, the pre-
wage rates in Tunisia are up to 83
transnational reproduction of capital, sently observable worldwide industrial
per cent lower. Labour productivity,
but which individual capital either relocation in manufacturing (within
however, is the same..'0
cannot perform or which, in order to the traditional industrial centres and
(4) The labour force can be attract-
avoid competitive di,equilibria, capital -towards the .periphery) is the result of
ed and repelled nearly limitless-
requires from national and international a qualitative change of the conditions
ly. That means, inter alia, that
public institutions. In other words, for capital expansion and accumulation
higher labour intensity can. be
however much the transnational expan- enforcing a new international division
enforced by quicker exhauLstion
sion and accumulation of capital takes of labour. To pose the problem (of
of the labour force; exhauisted
advantage of national disparities (of how to account for the apparent trend
labour force can be replaced by
infrastructure,' profit taxation, wage towards 'a new international division
a fresh one almost without
level, labour legislation, etc), the exten- of labour) in terms of an absolute fall
restrictions.
sion and deepening of transnational of the profit rate in the traditional
(b) The development and refinement -reproduction'nonetheless requires cer- manufacturing centres forcing capital
of a technology which makes it possible tain elements of an international super- to relocate part of its production would
to decompose complex pr6duction pro- structure. These elements include, for be quite inadequate judged from the ap-
cesses into elementary units such that instance, the rudiments of institutiona- proach proposed here.22 The
question
even an unskilled labour force can lised multilateral or bilateral co-opera- to be answered (which
is, in fact,
easily be trained to perform otherwise tion- in monetary and commercial policy answered
by the movement of capital)
complex operations (fragmentation of (IMF, GATT); tax agreements to avoid- is whether production at the traditional
jobs: skilled labour with a high cost double taxation; increasing compatibili- sites of production or
production at
of peproSuction can be replaced by a ty of systeiimsof training and education; new sites
provides for better expansion
corresponding multiple of simple la- international military co-operation. and accumulation of capital under
bour with, in total, a lower cost of
"given" conditions (or even for expan-
reproduction. Taylorism has progress- IV sion and accumulation at all).23
ed so far, especially in manufacturing,
In other words, the present "crisis"
that the mastery of the respective frag- Tendency Towards a New
(growing unemployment; growing num-
ments of technically highly complicated International Division of Labour
ber of bankruptcies and mergers, even
processes now very often requires a It was, predominantly, capital itself of major firms, in the qentre; etc, etc)
training period of no more than a few which, through its centuries-long ex-
that is often and presumably correctly
weeks even for previously totally un- pansion and accumulation, produced
-described as the expression of a world-
skilled labour. these conditions in terms of relations of wide long-term cyclical recession should
(C) The development of a technology production, forces of produc'tion and be explained, in line with the present
which renders industrial location and superstructure. In one fortn or anothier approach, as the joint effect of the
the direction of production itself in- most of tiese 'conditions were gradual- trend towards a new international divi-
creasingly less dependent on geogra- ly developing already for a longer pe- sion of labour and of . the obstacles
phical distances. This technology in- riod. But as long as the full sets was (e g, impending massive devalorisation
culdes modemn transport technology, not effectively developed, the reproduc- of fixed assets and "labour unrest" in

165

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Annual Number February 1976 ECONOMIC AND POLITICAL WEEKLY

the centre, faulty infrastructure and relocation.26 There is evidence, how- of the labour force can be secured in
"political instability" in the periphery) ever, that in some places in the world more subtle ways, seem to be gaining
wvhichslow down the implementation a significant part of the labour force importance as well. These are the Free
of the trend.24 which belonged to the industrial re- Production Zones on the one hand (in
serve army only a few years ago has A-sia, Africa and Latin America) and
"Industry hurries around the globe
in search of industrial location"; been converted into an active labour contract processing and related modes
"Bringing machines to labour force,"; army in the meantime. Such reductions of submission to capital on the other
"Medium companies likewise plan of certain segments of the industrial (in socialist countries).
foreign investment"; "German shoe in- reserve army in some regions - e g, Free Production Zones (Free Trade
dustry goes abroad"; "Japanese comn- female workers in the electronics and Zones, Export Fabrication Zones, Ex-
panies invade Indonesia". These head- textile industries of South Korea, Singa- port Processing Areas, etc) are industrial
lines from the business press (a random pore and Malaysia - are now com- estates which are specifically designed
sample from hundreds of similar ones pensated for by the mobilisation of the as enclaves for optimal utilisation of
in recent years) evidence in their way labour force in other regions. There labour force. There is a lot of those
that capital - nearly irrespective of are indications that not only the border zones in countries of Asia and Latin
size - has started, for the sake of sur- regions of Western Europe, not only
America, such as South Korea, Ma-
vival, to reorganise transnational repro- Middle America, North 'Africa, South
laysia, Colombia and Panama; in other'
duction according to the changed con- Africa and Southeast Asia, but increas-
countries, for instance India, Indo-
ditions of capital expansion and ac- ingly so Eastern Europe, South Ameri-
nesia, Egypt, Seniegal and Jamaica, they
cumulation. Reorgnisation of production ca, Central Africa and South Asia are
are in planning or under construction.
according to worldwide (however une- providing sites for relocated manu-
qually distributed) supply of disposable facturing. Their principal function consists in at-
cheap labour figures foremost. tracting worldwide operating capital.
For this pulpose, special installations
The relocation of parts of production V and privileges are assigned to them.
into countries with vast industrial re- Their standard equipment includes fac-
serve armiiies and low prices of the Production Arrangements
commodity labour force commenced in Specifically Responding and tory halls, energy supply, deep -water
countries with close geographical' and
Contributing to the Tendency harbours, airports,and other infrastructu-
commercial links to existing industrial towards Industrial Relocation ral instalments. Their privileges include,
centres. US industry transferred pro- The structure and extent of the above all, tariff and tax exemption and
duction foremost to Western Europe utilisation of the worldwide available subsidised inputs. As a rule, they are
and to countries "south of the border"; labour force do not depend only on located near urban conglomerates or
West European companies transferred seemingly purely economic conditions, in heavily populated rural areas. Thus,
production to regions of Europe such that is, the relative labour costs per they permit the industrial utilisation of
as Eire, Greece, Portugal, South Italy; unit of output, the relative size and labotur force even in "backward" re-
Japanese industry relocated mainly to structure of the respective regional in- gions granting labour supply on the
South Korea and Taiwan. At the same dustrial reserve armies, etc. The social favourable terms exposed above. Almost
time, industry recruited labour force in and political conditions that capital exclusively, they are designed as loca-
countries wnith high unemployment meets or is able to impose or to "en- tions for world market factories ("Welt-
rates and transferred it to traditional courage" are also decisive. It is deci- marktfabiiken" in German business
production sites: "Gastarbeiter" in sive whether effective union organisa- telrminology), that is, only production
Western Europe, immigrant workers tion, labour struggles and strikes are (intermediate or final products) that is
(Mexicans and Puertoricans) in the US. tolerated or suppressed by the state; marketed outside the local market is
In the meantime, capital in many whether the state imposes restrictions admitted. Designed as enclaves, integ-
industrial branches is "hurrying around on capital movements, profit realisation rated into the world market, and - in
the globe in search of industrial loca- and transfer, or whether the free move- a sense -'isolated from the local eco-
tion". Not only more or less labour ment of capital is guaranteed by the nomy, they shield the reproduction of
intensive industries, but also raw mate- state. It is also decisive, furthermore, capital from the adverse conditions of
rial, energy and pollution intensive pro- whether, at the locations of potentially "backwardness"in that they isolate the
ductions are transferred to places with available labour force, the state does or work force (which is concentrated in
cheap labour if these places also pro- does not offer fiscal subsidies, public con- them) from its social environment, as-
vide for favourable conditions with tributions to private investment, technical sure tight control of labour unrest, and
regard to the other factors. Not only infrastructure and the training of the provide for the protection granted by
investment, capacities and production labour force. There is ample evidence a transnational superstructure. Thus,
are increased at new locations, but ex- that the relocation of production occurs, they are increasingly becoming favourite
isting productfon is closed down at above all, into those countries which sites of relocated industries (almost ir-
locations which have b)ecome obsolete offer total freedom in the movement respective of firm size).27
for the expansion and accumulation of of capital and which, suppress all labour Expanded trade relations and trans-
capital, and is re-established at other organisation and strikes. In many parts fer of technology are well-known modes
locations.2.5
of the world these conditions are in- through which "non-capitalist" econo-
As yet, it is hardly possible to esti- creasingly enforced by growing militari- mies are integrated into the capitalist
mate the present extent of the displace- sation. Nonetheless, some other arrange- world market and, eventually, submitted
ment of manufacturing resulting from ments, through which favourable socio- to capital. Contract processing ("Lohn-
the trend towards worldwide industrial poiltical conditions for the utilisation veredelung") is another mode to this

166

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ECONOMIC AND POLITICAL WEEKLY
effect. Under contract processing,
capitalist enterprises transmit inter-
mediate products to factories under
contract in "non-capitalist" economies
(e g) for further processing. On sending
back the fnished products, the "non-
capitalist" economy receives payment for
the job performed. There is evidence
that this process is rapidly evolving in
present-day Eastern Europe. Yugoslavia
and textile and garment industries figure
foremost, but other countries (Hungary,
Poland,...) and other industrial bran-
ches (electronic components,...) are in-
volved as well. It is fairly clear that
contract processing, -under prevailing
circumstances, is profitable for capitalist
enterprises, not to mention its indirect
disciplining effect on the capitalist work
force proper. It is equally clear that
contract processing fits into the evolv-
ing socio-political structure and domi-
nating industrial development strategy
of present-day East European countries.
Of course, this kind of involvement in
the capitalist world market must not by
necessity induce additional capitalist
transformation including private property
of the means of production in the tradi-
tional sense. But it does induce an in-
terest in the functioning of the world
market and of transnational capital which
are to provide most efficiently for the
technology desired for the first steps
according to the "first catch up, then
overtake" ideology. One should recall,
however, that in Eastern Europe not
only a stable, disciplined,
relatively
cheap labour force is provided by the
state administration, but also that cer-
tain standards of payment, working con-
ditions, health care, etc, are guaranteed
by government or, in certain cases, are
enforced by workers power (cf, Poland
190), in striking contrast to most coun-
tries properly dominated by capitalism.
VI
Some Speculation on the Future
Development of the Capitalist
World System
For these concluding remarks, it will
be assumed that the trend towards a
new international division of labour as
described will be implemented notwith-
standing the obstacles which may slow
down the. process. In other words, it
will be as.-omed that the present "crisis"
wiR ne ,nd up in a new phase of
massive national protectionism, inter-
imperialist wars, etc. It must be admit-
ted at once that the future development
may prove thiis to bJe a faulty assump-
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tion. But assumptions to the contrary
(namely, that the undeniable trend al-
luded to here will be stopped or even
reversed) seeml to encounter difficulties
in indicating sufficiently powerful coun-
ter-tendencies. Therefore, we prefer to
stick to the assumption mentioned and
to spell out some of its implications
without adding to many reservations on
behalf of other possibilities.
If one is to assume that the process
of worldwide industrial relocation will
proceed fairly unhampered, some eco-
nomic consequences would be: Partial
export-oriented manufacturing ifidus-
trialisation of less developed countries
in Asia, Africa and Latin America
which, however,, leaves these countries
dependent on the traditional industrial
centres for technology, equipment,
managerial techniques, etc; relative de-
industrialisation of the traditional in-
dustrial centres; transnational decentrali-
sation of production processes through
the manufacture of the various parts of
a particular product at different places
on the one hand, and centralisation on
the other hand of production processes
through the concentrationin a few places
of the manufacture of a particular pro-
duct for the world market; growth of
the active labour armies in some parts
of the world, and increase in unemploy-
ment and pressure on real wages and
working conditions in other parts of
the world; further intensification of
existing competition among enterprises
that expand their transnational opera-
tions, and origination of new competi-
tive relations among individual capitals
which previously competed only in-
directly; accelerated transnational con-
centration and centralisation due to the
intensification of transnational competi-
tion favouring the multinational corpo-
ration which operates most flexibly under
the conditions of transnationalreproduc-
tion, notwithstanding all the national
and international restrictions and decla-
rations to control its activities.
To the extent that the locational
flexibility and even mobility of indus-
trial production is becoming a reality,
the hitherto known regional divisions
of the world into industrialised centres
and non-industrialised peripheries will
be superseded by divisions according
to highly sophisticated productions on
one hand (development of advanced
technologies, software, etc) and indus-
trial productions using known technolo-
gies on the other. Regarding these
latter, oldl and new industrial areas will
Annual Number February 1976
develop and decline or disappear at a
velocity hitherto unknown. Capital which
is attracted to one region today may
leave again tomorrow, only to return
possibly again the day after.
This rapid and far-reaching mobility
of capital and relocation of production
occuts as a function of the requirements
of capital expansion and accumulation
without regard to the consequences
thereof for the welfare of the peoples
affected thereby. On the contrary, in
many cases, e g, Chile, Sahel, Bangla-
desh, the development or extension and
intensification of conditions of produc-
tion which do not permit the reproduc-
tion of the labour force may be an
essential - and intentional - aspect of
this worldwide expansion of capital
which at the, same time requires and
generates the -- repressive - political
institutions and social formations to
permit and support this process. It is
instrumentalised and enforced by the
very impulse or compulsion that various
parts of the world have at this stage
of capitalist developiiient to compete
with each *other in the attraction of
capital by offering the most favourable
local, conditions for the expansion of
capital. Capital relies on the state for
its expansion and accumulation; but it
need not rely on any particular state.
The increasingly vast masses of the
population of large parts of the world,
of course, pay a terrible tribute to this
anarchy of capital expansion and
accumulation. Beyond death from
starvation, Idesease, war and other
capitalist man-made "natural" disasters
(such as the drought and/or flood
precipitated Sahel and Bengal famines),
the potential and actual labour force
must be appropriately prepared, dis-
ciplined and mobilised to play its
assigned role in the worldwide expan-
sion and accumulation of capital. This
implies new developments in the
educational policies and institutions to
provide for the appropriate training and
qualification, though not necessarily
education, for most members of the
emerging labour force. This,, will be
one task of the state in many "new"
countries as it has been in the "old".
Another related one is to discipline the
work force and other sectors of the
population through the development of
corporate institutions, the massive
propaganda to encourage "voluntary"
compliance to the needs of capital
expansion and accumulation, and of
course thle provision of thei residually
167
 ECONOMIC AND POLITICAL WEEKLY
necessary physical force to repress
population.
Trade unionist strategies of defending
labour against capital try to adapt to
the changed conditions, e g, by the
creation of "WVorldCouncils" for single
miiultinational companies. This is a
formidable task. To take just one actual
pertinent example, the social democratic
government of the Fedcral Republic of
Germany with mute, albeit reluctant,
approval of the unions is presently
cutting back real wages in order to
induce more investment at home (the
general strategy of West German
capital is, at present, at best to replace
an& to rationalise its existing invest-
ments in the FRG, and to place its new
investments elsewhere in the world); at
the same time, profits of most of the
big German based companies are
soaring whereas unprecedentedly many
small and medium companies (which
are economically too weak to move
abroad) are collapsing, with a sharp
increase of structural unemployment as
a result. In this state of affairs, the
room for manoeuvre of trade unions
(even if internationally, aimed) appears
to be very narrow., In conclusion, it
may be hazarded that hunger revolts,
social upheavals and military conflicts
seem more likely to lead to fundamental
changes in these trenids (if at all) than
trade union activity, popular front
strategy and other, maybe, unforeseen
political forces. Nevertheless, fpr
conscious reconstitution of society,
organised political action seems to be
indispensable.
Notes
[The present paper draws from "Ten-
dencies of Contemporary Capitalism,"
background paper prepared by Folker
Frobel, Jurgen Heinrichs, Otto Kreye
for the Working Session on the Inter-
national Economy held at the Max-
PManck-Institut zur Erforschung der
Lebcnsbedingungen der wissenschaft-
lich-technischen Welt, Starnberg (Fede-
ral Republic of Germany), December
12-14, 1974.1
1 This assertion, which may appear
to be very dogmatic, can, in a
sense, only be justified by its capa-
city to provide for a more coherent
interpretation of the history of
capitalist development than, say,
interpretations based on assump-
tions about the co-extension of
capitalism and wage labour, or
about an automatic development
of the productive forces. See Im-
manuel Wallerstein, "The Rise and
Future Demise of the World
Capitalist System. Concepts for
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Comparative Analysis", Cormpliarative
Studies in, Society atnd History vol
16, no 4, 1974, 387-415.
2 See, e g, Stephen Ilymer, "Robin-
son Crusoe and the Secret of Pri-
mitive Accumulation", Monthly
Reviewv, vol 23, no 4, 1971, 11-36;
Samir Amin, "Le developpement
inegal. Essai sur les formations
sociales du capitalisme Peripheri-
(11e" (Paris: Les Editions de Mi-
nuit, 1973); Andre Gunder Frank,
"'Accumulating Exzploitation". Vol
I: "To the Industrial Revolution"
(typescript, 1974); Immanuel Wall-
erstein, "The Modern World system.
Capitalist Agriculture and the Ori-
gins of the European WVorld-Eco-
nomy in the Sixteenth Century"
(New York and London: Academic
Press, 1974).
"As soon as people, whose produc-
tion still moves within the lower
forms of slave-labour, corvee-labour,
are drawn into the whirlpool of an
international market dominated b.y
the capitalist mode of production,
the sale of their products for ex-
port becoming their principal in-
terest, the civilised horrors of over-
work are grafted on the barbaric
hqrrars of slavery, serfdom, etc.
Hence the negro labour in the
Southern States of the American
Union pireserved something of a
patriarchal character, so long as
production was chiefly directed to
immediate local consumption. But
in proportion, as the export of
cotton became of vital interest to
these states, the over-working of
the negro and sometimes the using
up of his life in 7 years of labour
became a factor in a calculated and
calculating system. It was now a
cniestion of production of surplus-
labour itself. So was it also with
the corvee, e g, in the Danubian
Principalities
(now Rounmenia)."'
Karl Mfarx, "Das Kapital", vol I,
in: Karl Marx, Friedrich Engels,
"Werke", vol 23 (=MEW 23) 8
(Berlin: Dietz 1972), 250; English
translation: Karl Marx, "Capital",
vol I (Moscow: Progress Publish-
ers) (_ E), 226-7.
3 According to Eric J Hobsbawm's
interpretation of the origin of the
"Industrial Revolution" in Britain,
the stable domestic market mainly
for mass consumption goods pro-
vided the broad base (exports
backed by the systematic and
aggressive help of government,
the spark) for a generalised
industrial economy. See Eric J
Hobsbawm, "Industry and Empire"
(Harmondsworth: Penguin Books,
1969), chapter 2.
4 See, e g, Josef Kuliseher, "Allge-
meine WVirtschaftsgeschichte des
Mittelalters and der Neuzeit"% 2
vols. (Darmstadt: Wiss. Buchge-
sellschaft, 1971 - reprint of 1929
edition), vol II 133-37 et passim
(for "Verlagssystem");Karl Marx,
Annual Number Februaiy 1976
op cit, chapter 24 ("Die soge-
nannte ursprungliche Akkumula-
tion"), Paul Mantoux, "The Indus-
trial Revolution in the Eighteenth
Century", revised edition (London:
Mtethuen, 1964); Karl Polanyi,
"The Great Transformation: The
Political and Economic Origins of
our Time" (Boston: Beacon Press,
1957; fi-st published 1944); Chris-
topher Hill, "Reformation to In-
dustrial Revolution" (Harmonds-
worth: Penguin Books, 1968);
Edward P Thompson, "The Mak-
ing of the English Working Clas.s"
(Harm-ondsworth: Penguin Books,
1968); Stephen Hymer, op cit;
WVilliamLazonick, "Karl Marx and
Enclosures in England", The Re-
view of Radical Political Ecor.o-
mics, vol 6, no 2, 1974, 1-59.
5 See the chapters on the production
of the absolute and of the relative
surplus value in Karl Marx, op cit.
6 Karl Marx, op cit, 626-E 562.
7 See, e g, Giovanni Arrighi, "Labour
Supplies in Historical Perspective:
A Study of the Proletarianisation
of the African Peasantry in Rhode-
sia" (originally published 1969), in:
Giovanni Arrighi, John S' Saul,
"Essays on the Political Economy
of Africa" (New York and London:
Monthly Review Press, 1973, 180-
234; Harold Wolpe, "Capitalism
and Cheap Labour-Power in South
Africa: From Segregation to Apar-
theid", Economy and Society, vol
1, no 4, 1972, 425-56; Michael
Williams, "An Analysis of South
African Capitalism - Neo-Ricardi-
anism or Marxism", Bulletin of
the Conference of Socialist - Eco-
riiomists,vol 4, no 1, 1975; Ruy
Mauro Marini, "Dialectica de la
dependencia"
(Mexico: Era,
1973); Ruy Mauro Marini, "Wirts-
chaft, Gesellschaft und Politik im
abhangigen lateinamerikanischen
Kapitalismus" (mimeo, 1975);
Claude Meillassoux, "Developpe-
menou exploitation", L'homme et
la societe, nos 33/34, 1974, 55-61.
Cf, e g, the current debate in New
Left Review.
9 In the long run, less so of natural
raw materials (because of the pos-
sibility of recycling), more so of the
climate (because of the possibility
of its irreversible deterioration due
to increased energy transforma-
tion). In the short run, these
restraints may well necessitate ma-
jor crisis-ridden adaptations of
the capitalist world economy.
10 But see, e g, the books by Samir
Amin, Andre Gunder Frank, Im-
manuel Wallerstein or Eric J Hobs-
bawm cited above. For some
rudimentary pertinent remarks,
see Folker Frobel, Jurgen Hein-
richs, Otto Kreye, Osvalo Sunkel
"Internationalisierung von Kapital
und Arbeitskraft". Leviathan, vol
1, no 4, 1973, 429-54.
11 See Immanuel Wallerstein's article
cited in footnote 1.
12 See Ruy Mauro Marini, op cit,
169
Annuial Number February 1976 ECONOMIC AND POLITICAL WEEKLY

13 See, e g, Robin Murray, "The (FRG). In 1974, employment figures or even decreasing, whereas em-
Inter-nationalisation of Capital and in West Germany in these two ployment figures in W German
the Nation State", New Left Re- branches decreased by more than sul)sidiaries abroad are presently
view, no 67, 1971, 84-109. In this 10 per cent. increasing at a 10-11 per cent rate
connection, consider Immanuel 26 A case study documenting the per year.
Wallerstein's thesis that the unlity change of employment figures of 27 A case studv of six Free Production
of the capitalist world 'system is WVest German companies 1)oth ab- Zones in Mfalaysia as well as a
conistittuted hy the capitalist world road and at home is being pre- documiiientation of these zones in
co)nOilly and not by a political pared in the Max Planck Institute, Asia, Africa aind Latin America is
world empire. Starnberg (FRG). Employment presently prepared in the Max
14 It is take n for granted bere that figures in W Germany are stagnating I'lanck Instituite, Starnberg (FRG).
a hiistory of capitalist developmenit
as conceived above would be able
to explain these conditions as the
result of capitalist development
hitherto.
15 Cf, the article by Claude Meillas-
soux cited in footnote 7.
16 Anibal Quiijano Obregon, "The
Marginal Pole of the Economy and
the Marginalised Labour Force",
Economy and Society, vol 3, no 4,
1974, 393-428, is rather sceptical
as to the possible extent of this
type of competition exerted by the
"mar-ginalised labour force" of
Latin America. We bave to refer
to the discussion below.
17 International Labour Office, op cit,
- 481-2, 500.
18 United States Tariff Commission,
"Economic Factors Affecting the
Use of Items 807.00 and 806.30 of
the Tariff Schedules of the United
States. Report to the President..."
(Washington: TC Publication 339,
1970), 171-3.
19 Committee on Finance, United
States Senate, "Multinlational Cor-
porations. A Compendium of Pa-
pers... " (Washington: US Gov-
20
ernment
S tddeutsche
15, 1974.
Printing Office, 1973), 67.
Zeitung, November those with skill but I
21 "Effective operation" means, in
this connection, that capital ex-
pansion and accumulation respond-
ingr to the new set of conditions
no money. You hadI
i e, possibilities and necessities
oce
-
- compare, in terms of
favourably with capital expansion
profit,
mayha
benter be comenesQutafeto us.of
and accumulation alongside tradi-
tional lines, and, therefore, result
in a new international division of

22
labour.
It is not the point here to dispute
the possible existence of such a
We wil
fall.
23 Of course, this is to be taken cum
grano salis. Even if it is accepted
that the greed after maximum and
Hinance you.
not "normal", "legitimate", etc,
profit rates is the law imposed by We have schemes. Quite a few of
competitive capital expansion
national
and them for people just like you.
accumulation, protective
measures (and the threat thereof) Schemes which will help you set up
nonetheless may enforce capital to your enterprise,make a decent
establish less profitable production
sites for securing prospective mar- living.. and marchtowards prosperity.
kets.
24 Essentially, this formulation was Fordetailscontactournearestbranch.
used by Giovanni Arrighi in the
Working Sessioii on the Interna-
tional Economy, Starnberg, De-
cember 12-14, 1974.
25 A case study designed for docu-
menting this process in the West mohoarht7fa
German textile and garment indus-
tries is presently undertaken in the 1177, BudhwarPeth,BajiraoRoad,
Max Planck Institute, Starnberg Poona-411 002
1,0 TQMe 8AY,'BM7530 E

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