Politics, Enterprise Strategies and Employment Quality in Chile
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Inside the Model: Politics, Enterprise Strategies and Employment Quality in Chile Dissertation zur Erlangung des Grades des Doktors der Philosophie im Fachbereich Philosophie und Sozialwissenschaften der Universität Hamburg vorgelegt von Gerhard Reinecke aus Soest Hamburg 2000 Para Taty y Humberto ii Acknowledgements This study would have been impossible to carry out had it not been for the generous support of a large number of people, both in Chile and elsewhere. First and foremost, I am especially grateful to all the enterprise owners, managers, employees, and workers who readily shared both their time and insights with me during my enterprise visits. Although understandably they did not always answer all of my questions, the general attitude was one of great openness, even within enterprises for which the first contact with my project was not voluntary, but was rather imposed through a visit with a labour inspector (In this regard, I want to acknowledge the important support provided by Sergio Espinosa of the Inspección del Trabajo, who visited many enterprises with me). The precise list of all my contacts and key informants is too long to be included in these acknowledgements, but can be found in the list of interviews in annex 2. Secondly, during my stay in Chile, between August 1994 and February 1998, the orientation of my research project changed several times, and the final result may hardly be recognizable for those with whom I shared my ideas during initial conceptual phases. Many people have helped me find my way in this process, but I am especially indebted to Laís Abramo, Magdalena Echeverría, Lucio Geller, Jorge Katz, Emilio Klein, Cecilia Montero, Gerry Rodgers and Barbara Stallings. The Deutscher Akademischer Auslandsdienst financed my research between October 1995 and February 1996. In March 1996, however, I began working for the International Labour Organization (ILO), first in Chile, and then in Geneva, Switzerland. Although it is likely that this thesis would have been finished earlier had I not been hired by the ILO, I would not have benefited from the many stimulating exchanges I have had with my ILO colleagues. I am also grateful to the ILO for granting me a period of leave without pay between August and November 1999, which enabled me to write up most of this study. Claudio Álvarez, Bernardo Bello and Patricia Bustos were extremely helpful in providing me with updated information from Chile after my departure. Others, both in Santiago and in Geneva, who have provided me with useful information and statistical data include Paul Bailey, Miguel Cáceres, Emmanuel Guindon, Helia Henríquez, Hector Jeria, Rodrigo Marquez, Juan Carlos Scapini and Gustavo Soria. Susan Hayter, Maria Jeria and Dennis Rodgers read various draft chapters of this study, and Christine Enzler was heroic enough to read all of them. All made excellent suggestions, both in relation to the presentation of my results, as well as with regards to saving me from some of my idiosyncratic English grammatical impulses. Of course, none of them are to blame for the remaining shortcomings, particularly as I must admit to having frequently displayed no small measure of obstination and did not always follow their advice. Last but not least, I would like to thank my thesis supervisors, Rainer Tetzlaff and Detlef Nolte, for their encouragement and their helpful suggestions. G.R., Geneva, April 2000 iii Table of content Acknowledgements..............................................................................iii List of tables.........................................................................................xii List of figures......................................................................................xiv List of boxes.......................................................................................xvii Glossary of acronyms and Spanish-language terms.....................xviii 1. Introduction ....................................................................................1 1.1. Chile in the context of recent development debates ............................. 1 1.2. Positive or negative model? .................................................................. 3 1.3. Opening the black box: inside the model............................................ 10 1.4. Research questions and methods......................................................... 13 1.5. Structure and main results of the study............................................... 16 2. Conceptual framework ................................................................18 2.1. Globalization, institutions and social actors ....................................... 18 2.1.1. Increased competition and globalization .............................................. 18 2.1.1.1.Objective globalization: a definition and some data ........................ 18 2.1.1.2.Virtual globalization? Information flows, attitudes and ideologies . 22 2.1.2. The challenges for institutions.............................................................. 23 2.1.2.1.Markets, institutions and power ....................................................... 24 2.1.2.2.Institutions in the labour market....................................................... 26 2.1.2.3.Policies and institutions for innovations and training ...................... 27 2.1.3. The state and social actors.................................................................... 29 2.1.3.1.State autonomy, embeddedness and social dialogue ........................ 29 2.1.3.2.A tool for analysis: the concept of strategic groups ......................... 32 2.1.4. Summary............................................................................................... 34 2.2. Concepts for the study of enterprise strategies and employment quality.. ............................................................................................................. 34 2.2.1. Innovation strategies............................................................................. 34 2.2.2. Flexibility strategies ............................................................................. 38 iv 2.2.2.1.Flexibility: a controversial concept .................................................. 38 2.2.2.2.Flexibility, post-fordism and production networks .......................... 43 2.2.3. The concept of employment quality ..................................................... 47 2.2.3.1.Introduction ...................................................................................... 47 2.2.3.2.The importance of the issue of employment quality ........................ 49 2.2.3.3.Dimensions and measurement of employment quality..................... 51 2.2.4. Summary............................................................................................... 55 3. An overview of political, social and economic development in Chile..............................................................................................56 3.1. Political development and the configuration of strategic groups........ 56 3.1.1. The import-substitution coalition and its fall (1930s-1973)................. 56 3.1.2. Political repression and economic gradualism (1973-1975) ................ 61 3.1.3. Radical neoliberalism (1975-1983) ...................................................... 63 3.1.4. Pragmatic neoliberalism (1983-1990) .................................................. 66 3.1.5. Continuity and change since the return to democracy (1990-1999)..... 68 3.1.1.1.Political developments ..................................................................... 68 3.1.1.2.State autonomy and group configuration.......................................... 71 3.2. Economic development, globalization and the “Chilean Model”....... 78 3.2.1. Overview of Chilean economic development ...................................... 78 3.2.2. Trade liberalization, globalization and the Chilean economy .............. 82 3.2.3. The big transformation: restructuring of the Chilean economy............ 89 3.3. Social development, poverty and income distribution........................ 92 4. Innovations, flexibility and employment quality in Chile......100 4.1. Innovations and indicators of productivity ....................................... 100 4.1.1. Innovations and productivity up to 1990............................................ 101 4.1.2. Innovation and productivity from 1990 onwards ............................... 106 4.1.3. Types of innovation............................................................................ 110 4.1.3.1.Product innovation ......................................................................... 110 4.1.3.2.Innovation in technology and productive processes....................... 110 4.1.3.3.Innovation in the organization of production ................................. 111 v 4.1.3.4.Innovation in work organization..................................................... 113 4.1.3.5.Innovation in human resource management................................... 113 4.1.4. Summary............................................................................................. 115 4.2. Flexibility.......................................................................................... 115 4.2.1. The role of flexibility in the Chilean economy................................... 115 4.2.2. Types of flexibility ............................................................................. 116 4.2.2.1.Numerical flexibility ...................................................................... 116