By Roger Burbach
E-book by way of Burbach, Roger, Flynn, Patricia
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Additional resources for Agribusiness in the Americas: The Political Economy of Corporate Agriculture
S. S. S. 5 SOURCE: IMF (2003), p. 143. Portugal, and the Slovak Republic had higher rates of industrialization. Is that a symbol of success, an indication that Germany’s and Italy’s factories are taking increased global competition in stride? One might think so. A closer look, however, reveals a dismal picture. 4; rather, it’s weak development of the service sector. Generally economists agree that nations on their way to prosperity move through certain sectoral changes in employment structure. According to the ‘‘Three-Sector Hypothesis,’’ in a poor country many people work in agriculture.
The simple reason is the endless potential for job creation that the service sector offers. Service-sector jobs are often and gleefully defamed. ’’ However, the opposite is true, as 1998 numbers for OECD countries show. For every 100 jobs for low-skill workers, manufacturing provided 97 jobs for medium- or high-skill workers. The service sector provided jobs for 229 medium- and high-skill workers for every 100 low-skill jobs. In producer services, the ratio was even more impressive at 100 to 417.
New kinds of work organization need to be developed; often, old and new technologies are used in parallel for a while; and workers need to be retrained. That, in turn, may well mean that productivity growth goes down at first. It is therefore possible that an increased level of high-tech investment has a depressing effect 39 COWBOY CAPITALISM on productivity growth in the beginning—to be followed by above-trend growth thereafter. 38 ● Growth in the IT sector can snowball through the entire economy.
Agribusiness in the Americas: The Political Economy of Corporate Agriculture by Roger Burbach