By Henry Srebrnik, [Charlottetown, PEI] Guardian
Labour
Day is upon us, so how are workers faring these days? Not all
that well.
Exactly a century ago, Vladimir Lenin, soon
to become the Communist ruler of Russia, published a treatise
designed to explain why workers in industrialized countries
were not attracted to left-wing revolution.
In Imperialism, the Highest Stage of
Capitalism, Lenin theorized that imperialist countries in the
developed world, through exploitation of their colonies by
access to cheap raw materials and exports of goods, enabled
their capitalist classes to make such “super profits” that
they could pay high wages to their own employees at home.
This created, in Marxist terms, a “labour
aristocracy” that could count on strong trade unions that
protected decent wages, job security, and standard of living.
The result, wrote Lenin, was “something like an alliance”
between the workers of a given nation and their capitalists.
Lenin’s theory of imperialism argued that
the “handful of the richest, privileged nations” had turned
into “parasites on the body of the rest of mankind.”
Why is this no longer the case? Why have
the ruling classes in so-called imperialist countries
seemingly abandoned their own working classes in favour of a
borderless international economic system?
A new book by Richard Baldwin, The Great
Convergence: Information Technology and the New Globalization,
helps us to understand this process.
He notes that between 1820 and 1990, the
share of world income going to today’s wealthy nations soared
from twenty per cent to almost seventy. Since then, however,
that share has plummeted. As he explains, this reversal of
fortune reflects a new age of globalization that is
drastically different from the old.
The “old” globalization, the result of the
Industrial Revolution, increased international trade, but
goods were produced in the developed home countries and
exported.
Innovation and production remained local,
so well-paid jobs in major industries remained in the rich
countries. Hence the “labour aristocracy” of yore, where
factory workers could live comfortable “middle class” lives.
Baldwin asserts that the new globalization
is driven by an information technology which has radically
reduced the cost of moving ideas across
borders.
Rapidly falling communication and
co-ordination costs have made it far less necessary for all
stages in a production process to take place in the same
factory or even country.
This has made it practical for multinational firms to move labour-intensive work to developing nations. These firms also ship their marketing, managerial, and technical know-how abroad.
It has allowed jobs that were previously
sheltered to being sent abroad. Now managers, technicians and
clerical staff back home, as well as manual workers, are also
in danger.
The historically uneven economic
development between advanced industrial metropoles and
peripheral colonies, which allowed for a comfortable life for
the working class, no longer exists.
Economic globalization has had more and
more people join what Guy Standing calls the “precariat.”
Published in 2011, his book The Precariat:
The New Dangerous Class describes the economic insecurity that
has resulted in a precarious way of life for those who have
fallen out of the old working class.
As stable jobs
disappear, the uncertainty of work has become normal.
Everyone becomes what used to be called a “temp.” Obviously,
they have no unions to protect them.
The reaction? With little prospects for
future well-paid work, they register their alienation and
anger via the ballot box, so we see the rise of populist
movements across the developed world.