INDUSTRIAL RELATIONS AND ECONOMIC DEVELOPMENT INDUSTRIAL RELATIONS AND ECONOMIC DEVELOPMENT EDITED BY ARTHUR M. ROSS PROFESSOR OF INDUSTRIAL RELATIONS UNIVERSITY OF CALIFORNIA, BERKELEY Publz'shed for the International Institute for Labour Studies PALGRAVE MACMILLAN 1966 Copyright © International Institute for Labour Studies 1966 Softcover reprint of the hardcover 1st edition 1966 ISBN 978-1-349-00308-2 ISBN 978-1-349-00306-8 (eBook) DOI 10.1007/978-1-349-00306-8 MACMILLAN AND COMPANY LIMITED Little Essex Street London WC2 also Bombay Calcutta Madras Melbourne THE MACMILLAN COMPANY OF CANADA LIMITED 70 Bond Street Toronto 2 ST MARTIN'S PRESS INC 775 Fifth Avenue New York NY rooro Library of Congress Catalog Card Number 66-28213 This volume consists mainly of the papers presented to and discussed at the Research Conference on Industrial Relations and Economic Development organized under the auspices of the International Institute for Labour Studies and held at Geneva from August 24 to September 4, 1966 CONTENTS PAGE LIST OF PARTICIPANTS ix INTRODUCTION. Arthur M. Ross XI PART I THE ROLE OF THE STATE IN INDUSTRIAL RELATIONS CHAP. 1. PoLYETHNIC SociETIES AND INDUSTRIAL RELATIONS. Charles Gamba 3 2. ASPECTS OF STATE INTERVENTION IN INDUSTRIAL RELATIONS IN INDIA: AN EVALUATION. S. D. Punekar 21 3. THE MANY FACETS oF GovERNMENT INFLUENCE oN INDUSTRIAL RELATIONS IN INDIA. Subbiah Kannappan 44 4. THE GOVERNMENT, INDUSTRIAL RELATIONS AND ECONOMIC DEVELOPMENT IN jAPAN. Hisashi Kawada 68 5. THE STATE AND INDUSTRIAL RELATIONS IN DEVELOPING CoUNTRms. Tijani M. Y esufu 90 PART II SOURCES AND FUNCTIONS OF UNION LEADERSHIP IN DEVELOPING COUNTRIES 6. SociO-EcoNOMIC CHANGES IN EGYPT 1952-1964. I. Abdel kader Ibrahim 115 7. PARTY, GoVERNMENT AND THE LABOUR MOVEMENT IN MEXICO: Two CASE STUDIES. Frederic Meyers 134 8. EcoNOMIC DEVELOPMENT AND THE LABOUR MovEMENT. Adolf Sturmthal 165 Vll Contents PART III THE DISTRIBUTION OF DECISION-MAKING POWER IN WAGE DETERMINATION CHAP. PAGE 9. MAJOR IssUES OF WAGE PoLICY IN AFRICA. Elliot J. Berg 185 10. DEVELOPMENT OF COLLECTIVE BARGAINING IN FORMER BRITISH AND FRENCH AFRICAN CoUNTRIES. B. C. Roberts and L. Greyfie de Bellecombe 209 PART IV PARTICIPATION OF INTEREST GROUPS IN THE FORMULATION OF ECONOMIC PLANS 11. TRADE UNIONS, EMPLOYERS AND THE FoRMATION oF NATIONAL EcoNOMIC PoLICY. R. W. Cox 229 12. INCOME DISTRIBUTION UNDER WORKERS' SELF-MANAGEMENT IN YuGOSLAVIA. A. Bajt 252 13. ISRAEL'S SOCIO-ECONOMIC PLANNING AND THE ROLE OF ITS INTEREST GROUPS. Jay Yanai Tabb 14. PARTICIPATION IN THE NATIONAL DEVELOPMENT PLAN AND THE CoNCEPT OF EcoNOMIC DECISIONS. S. Wickham 296 PART V LITERATURE ON INDUSTRIAL RELATIONS AND ECONOMIC DEVELOPMENT INTRODUCTION 323 15. GENERAL 325 16. AFRICA 344 17. AsiA 357 18. EASTERN EUROPE 370 19. LATIN AMERICA 380 20. THE MIDDLE EAST 397 INDEX 407 viii LIST OF PARTICIPANTS 1 Chairman MARQUAND, Rt. Hon. Hilary A. Director, International Institute for Labour Studies. Convener Ross, Arthur M. Professor of Industrial Relations, Institute of Industrial Relations, University of California, U.S.A. Alexander, R. J., Professor, Department of Economics, Rutgers University, U.S.A. Ali, A., International Institute for Labour Studies. * Bajt, A., Professor, Faculty of Law, University of Ljubljana, Yugoslavia. *Berg, E. J., Professor, Center for International Affairs, Harvard Uni- versity, U.S.A. Brown, G. A., Financial Secretary, Ministry of Finance, Jamaica. Contreras, J., Central Reserve Bank of Peru, Lima. *Cox, R. W., Professor, Graduate Institute of International Studies, Geneva. Farrag, A., International Institute for Labour Studies. * Gamba, C., President, Industrial Arbitration Court, Singapore. Garda-Nieto, J. N., Professor of Industrial Relations, Graduate School of Business Administration and Management, Barcelona, Spain. Giugni, G., Professor of Law, Rome, Italy. De Givry, J., Chief, Labour-Management Relations Division, I.L.O. * Greyfie de Bellecombe, L., International Institute for Labour Studies. Han, S., Director, Federal Institute of Productivity, Belgrade, Yugoslavia. *Ibrahim, I. A., I.L.O., Field Office, Istanbul. Jauvin, B., International Institute for Labour Studies. * Kannappan, S., Professor, School of Labor and Industrial Relations, Michigan State University, U.S.A. * Kawada, H., Associate Director, Institute of Management and Labour Studies, Keio University, Tokyo, Japan. 1 The position of participants given is that at the time of the conference. * Writer participant. I.R.E.D.-A 2 ix List of Participants Menshikov, S. M., Deputy Director, Institute of World Economics and International Relations, Academy of Sciences, Moscow, U.S.S.R. *Meyers, F., Professor of Industrial Relations, University of California, U.S.A. Payro, R., Chief, Special Research and Reports Division, I.L.O. * Punekar, S.D., Head, Department of Research, Tata Institute of Social Sciences, Bombay, India. Reynaud, J. D., Institute for Labour Studies, University of Paris. *Roberts, B. C., Professor of Industrial Relations, London School of Economics and Political Science, U.K. Schregle, J., Labour-Management Relations Division, I.L.O. Siegel, A., International Institute for Labour Studies. Spyropoulos, G., Special Research and Reports Division, I.L.O. * Sturmthal, A., Professor of Labor and Industrial Relations, University of Illinois, U.S.A. * Tabb, J. Y., Professor of Industrial Relations, Israel Institute of Tech- nology. Vanek, J., Labour-Management Relations Division, I.L.O. Walker, K. F., Professor of Psychology, University of Western Australia. *Wickham, S., Professor, Faculty of Law and Economics, University of Lyons, France. * Yesufu, T. M., Secretary, National Manpower Board, Ministry of Economic Development, Lagos, Nigeria. • Writer participant. X INTRODUCTION BY ARTHUR M. ROSS D u R r N G 1964 the Rt. Hon. Hilary Marquand, who was then Director of the International Institute for Labour Studies, asked me to organize and convene a Research Conference on Industrial Relations and Econ omic Development on behalf of the Institute. This volume consists of the papers presented and discussed at Geneva during August and September of that year. We conceived of this conference as a meeting of scholars for the purpose of discussions and criticisms in the spirit of social science. It was our purpose, not to assemble policy-makers and administrators to formulate practical programmes of action, but rather to bring together members of the intellectual community in order to augment theoretical understanding and factual knowledge. The members of the Conference were not delegates participating in a representative capacity but rather a group of invited individuals participating in their own right. The papers, it is true, deal with some of the most pressing policy problems which confront the many countries attempting to modern ize their economies under forced draft ; they are not theoretical in the sense of being abstract and remote. Nevertheless our purpose was scholarly rather than programmatic. Likewise, although some of the participants have important governmental responsibilities in their own countries, it was understood from the outset that they came to Geneva as individuals representing no one but themselves. The same can be said of the staff members of the International Institute and the ILO officials who participated in the Conference and con tributed much to the discussions. The International Institute for Labour Studies was established in 1961 at the initiative of the Director-General of the International Labour Organization, Mr. David A. Morse. It has been particularly concerned with the labour problems of economic development : problems arising within the context of rapid economic, social and political change. Accordingly, it was appropriate that one of the first research conferences sponsored by the Institute should deal with the subject of industrial relations and economic development. xi