PART 2 New International Division of Labour The so-called ‘old international division of labour’ reflected the colonial and immediate post-colonial realities that the industrialised societies of the West produced manufactured goods while the rest of the world tended to produce one or 2 primary products per country. However, the Neo-Marxists Folker Fröbel, Jürgen Heinrichs & Otto Kreye (1980) state that, from the 1970s onwards, there have been substantial movements of industrial capital from the ‘advanced’ industrialised world to the developing world. This movement has been driven by rising labour costs and high levels of industrial conflict in the West which reduced the profitability of transnational corporations.  With globalisation, the tendency is for the Western industrial societies to export capital and expertise while poor countries provide cheap labour for manufacturing. According to Dawlabani, this destruction of homeland jobs in the West is justified by economists and financial  leaders via Joseph Schumpeter’s (1942) theory of Creative Destruction. In this paradigm, in a free market entrepreneurs will always introduce innovation which is disruptive to the current economic model but which improves productivity and, thus, economic growth. The cost to those impacted by the ‘destruction’ is not important. Thus, manufacturing is outsourced to low wage countries in… Read More