Migration and the New Austeriat: the Baltic Model and the Socioeconomic Costs of Neoliberal Austerity
Migration and the new austeriat: the Baltic model and the socioeconomic costs of neoliberal austerity Charles Woolfson (Linköping University, Sweden) Jeffrey Sommers (University of Wisconsin-Milwaukee) Arunas Juska (East Carolina University) W.I.R.E. Workshop on Immigration, Race, and Ethnicity Ash Center for Democratic Governance and Innovation at the Harvard Kennedy School 24 February 2015 Abstract The Great Economic Recession was experienced with particular severity in the peripheral newer European Union member states. Baltic governments in particular introduced programmes of harsh austerity known as ‘internal devaluation’. The paper argues that austerity measures have accelerated the fragmentation of the labour market into a differentially advantaged primary (largely public) sector, and an increasingly ‘informalized’ secondary (largely low-skill manufacturing and services) sector. It is suggested that the production of a segmented labour market has acted as a major stimulus towards creating, in both Latvia and Lithuania, among the highest levels of emigration in the European Union, especially during the years of the crisis from 2008 onwards. In the absence of effective state policy to address a gathering socio-demographic crisis in which this migration is a key component, so-called ‘free movement’ of labour raises troubling questions for wider societal sustainability in the European Union’s neoliberal semi- periphery in an era of protracted austerity. Keywords: Austerity, crisis, migration, Lithuania, labour market segmentation, neoliberalism, informalisation, European periphery Introduction The onset of the global economic crisis has led to a dramatic increase of emigration from a number of East European countries that have become members of the European Union (EU) (Galgóczi, Leschke, and Watt 2012).
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