Marts 2001 Phd. afhandling inden for Samfundsvidenskab Gestur Hovgaard “Globalisation, Embeddedness and Local Coping Strategies” a comparative and qualitative study of local dynamics in contemporary social change FS & PbD. Thesis no. 29/2001 ISSN no. 0909-9174 Globalisation, Embeddedness and Local Coping Strategies - a comparative and qualitative study of local dynamics in contemporary social change Gestur Hovgaard A PhD. Thesis in the programme: Comparative Welfare Systems Department of Social Sciences Roskilde University December 2000 Preface Over the last years, my scientific study has been centred around three objectives. First, the historical development and transformation of the Nordic Atlantic marginal areas, and in particular their fishery dependent communities, has interested me. Second, the concrete and multifaceted ways in which people cope with basic conditions of change has been a central concern. Finally, I have tried to reach an understanding of the ways in which economic ac- tion is socially and institutionally embedded. The result of these different sets of interests is this thesis on globalisation, embeddedness and local coping strategies. Thesis work is a personal assignment, but it also evolves in a social context that is of great- est importance for the fulfilment and final shaping of the project. Despite the danger of forgetting someone I should not, I think it is important to express my gratitude to those who have helped me along. Professor Jon Sundbo has been my supervisor over the years, and he has been a continuous source of inspiration. Thanks to Jon for his serious and helpful engagement in the process. Also thanks to the people at the Department of Social Sciences with whom I have shared good discussions and friendship. Some years ago, I had the pleasure to be affiliated with the MOST Circumpolar Coping Processes Project. This has proved to be a very stimulating company. Many thanks to the coordinators, J~genOle Bzerenholdt, Nils Aarsaether and all the other people in the team, from Canada in the west to Russia in east, for ongoing meetings, discussions and joint work. I wish to record a special thanks to Herman Schmid. No one has influenced my academic work and career more than he has. Thanks to Herman for his support and engagement, for always being there when needed, and not the least for his personal wisdom, which he so often has shared with me. I would also like to thank those who have helped me gather data and facilitated entry to the local environments. I would like to mention Leif Arne Viken and Bartal Dulavik in Bgts- fjord, Jdgvan vi8 Keldu and Rani Nolsme in Klaksvik, and Hans Andrias Joensen in Co- penhagen. Thanks to Jeirgen Ole Baerenholdt (Roskilde University), Peter Arb0 (Tromsm University), Martin Thibault (University of Winnipeg), Knud Bj@m Lindkvist (Bergen University) and John Andersen (Roskilde University) for comments on parts of the manu- script. Working with John on large scale urban strategies helped in understanding the small (or micro) communities that I have been studying in this thesis. Also, thanks to my present colleagues, Richard Apostle, Dennis Holm, Olavur W. Hmgne- sen, and Bjami Mortensen. They have been helpful in my thesis work, and good colleagues in our joint work to establish a Centre of Local and Regional Development on the Faroe Islands. Thanks to Andrew Crabtree and Richard Apostle for their help in improving linguistics, and to Abraham Mikladal for helping with work processing technicalities Finally, a heartfelt thanks to my wife Anna Katrin and our children Teitur and Durita. You have all helped me greatly throughout the whole process, and also being more patient than one can ever expect. For this I am deeply grateful. Remaining errors or mistakes in the thesis are my own responsibility. Klaksvik, December 2000. Gestur Hovgaard TABLE OF CONTENT Chanter 1 Globalisation. embeddedness and conin9 stratepies - An analvtical framework for the analvsis of local reembeddine Dractices ..................... .................. .................................... ..................... 23 ........................ ..................... 1.3.3. Embeddedness - as a wm,of infervreting social realities ........................ ..................... 42 1.4. Couinz-shatezies ..__ .......................................................................................... 46 ............................................................ 47 ChaDter 2 Towards a method for analvsing globalisation and local coning strategies 2.1. Introduction ........ 2.2. Localitv and comunitv, zettinz at conc 2.2. I. The resurgence ofthe local level .................................................................. 2.2.2. Makinpsense ofcommuniQ.......................................................................................................... 58 2.2.3. Avvroachinp methodolow - LocaliQ ........................................................................................... 63 2.3. Studvinz localities. on methodology ........ 2.3. I. The uualitative arrmment 2.3.2. Oualitative research and case studies 2.3.3. On validiiv and reliab 2.3.4. On generalisation.. ...... 2.4. Communities, localities and the case studv - summing uu .................................................................... 78 Chapter 3 .................................. 81 .................................................................................... 81 3.4.3. Analvsinpthe data ........................................................................................................................ 98 Chapter 4 On the historical evolution of fisheN deDendent localities ................. .................. 4.3. I. Northern localities - between state. market and communifl!....................................................... 111 4.4. Analvtical comuarisons ..................... ....................................................................................... 114 ChaDter 5 The historical evolution of BPtsfiord A coping Dersuective ....... .......... 119 ....... .. 5.3. Classical commercialism .................................................................................................................... 125 5.3.1. Local commercialism - Bttsfiord (IO ......................................................................................... I28 5.4.New statist strategies.......................................................................................................................... 129 5.4. I. Norwegian Fordism ................................................................................................................... I30 5.5. Deredation and Schumuetarian localisation .................................................................................... 138 5.6. Couine conditions in Bitsfiord the historical heritage ...................................................................... 140 ChaDter 6 The historical evolution of Klaksvik: A couing Dersuective 6.1. Introduction........................................................................................................................................ 145 6.2. Socio-economic overview - 6.3. Classical commercialism ___.. 6.3.1. Local commercialism - Klaksvik (U1 6.4. Faeroese Fordism ................ 6.4.I. EXDlail2ing the collapse ofFordist modernisation ..................................................................... 157 6.4.2. The coping-siratew of destructive comDetition - Klaksvik IIIL ................................................ I61 6.5. Couing conditions in Klaksvik: a stow of historical continuity ............. ChaDter 7 Towards the knowledee based network economv- the case of BBtsfiord 7.1. Introduction........... 7.2. The miserable 80s... 7.3. Towards the strategi .......................... 172 7.3.I. Stabilising the localitv - phase I. ...... .......................... .......................... I73 7.3.2. Socialisiile bu 7.3.3. Differentiation and knowledpe based development ................................................................... I78 7.4. Flexible Fordism .the new social oreanisation of the local economy ................................................ 185 7.4.1. Bdtsfiordlnc. - The covinp-siratew OfBdtsfiord...................................................................... 187 7.1.2. The crucial factor - buildinp linkages ........................... I88 7.4.3. Future promects .......... ...... ...... I92 ChaDter 8 From hierarchv to flexihilitv The case of Klaksvik 8.2. I. Exemdifiine copinp-practices - the storv ofthe processing plant ............................................ 198 8.2.2. Autonomous restructuring .......................................................................................................... 20I 8.2.3. Building neiworks - 8.3. Sheer defiance - the couing stratew of Klaksvfk ___ 8.3.1. Cooing the market - buildinz linkares ............................................................ 210 8.3.2. The crucial factor - 8.3.3. Future DrOSDeCtS ..___ ChaDter 9 Comparing evidence - ExDlainine local couinp strateeies 221 .......................... 222 ............................................................ 226 9.1.3. Different localities. differentstrafepies ...................................................................................... 231 9. I.4. Making sense out oftradition ......................................................... 233 9.1.5. Socialised leadership. .................................................................... 238 9.1.6. Continuitv within change