The Politics of Wage Policy in Socialist Development: An Introduction
The relation between growth and distribution is one of the most vital issues of political economy in any developing country. The world abounds in examples, from the policy choice between investment and consumption, to the question of income disparity, which tends to widen along with growth. Especially in the context of scarcity, distribution is a highly political question. Whether the state decides to intervene or not, policy-making regarding distribution involves the ideology of the political leaders and the regional, sectoral, bureaucratic or social interests they represent. On a broader societal level, there are various social divisions over distribution: regional disparities, often linked with ethnic issues, are a common problem not only in the Third World; certain sectoral and occupational biases are the result not only of the country’s historical stage of industrialisation, but also of sociopolitical biases; generational income gaps are taken for granted in some societies but not in others, while gender discrimination seems ubiquitous. Newly-arising issues and contentions press for new political institutions, since often the traditional institutions for conflict management cannot cope with them fully. Distribution constitutes a far-reaching problem in the politics of development.
KeywordsPolicy Process Work Unit Policy Group Wage Policy Wage System
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