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Labour and Its Discontents: The Consequences of Orthodox Reform in Venezuela and Mexico

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  • Jon Jonakin

Abstract

The negative impacts of orthodox liberalisation policies on labour in Venezuela and Mexico were representative of outcomes elsewhere in Latin America. Untheorised increases in precarious informal work, unemployment, and emigration as well as a growing breech between wages and productivity followed trade, capital, and labour market reforms and the prescribed macro stabilisation policies. Orthodox reforms in both countries paradoxically facilitated market failures given the forms or modes taken by foreign direct investment (FDI), which introduced ever more increasing scale economies with their attendant information imperfections. In addition, the growing competition from tradeable goods faced by domestic producers in both countries and the decision to buy rather than make technologies by way of FDI undermined job creation and induced inter-sectoral flows toward service sector and informal work.

Suggested Citation

  • Jon Jonakin, 2009. "Labour and Its Discontents: The Consequences of Orthodox Reform in Venezuela and Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 45(8), pages 1284-1306.
    • Handle: RePEc:taf:jdevst:v:45:y:2009:i:8:p:1284-1306
    DOI: 10.1080/00220380902862945
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