disorganized capitalism

disorganized capitalism

the tendency of modern CAPITALISM, and its class structures, to become increasingly disorganized in the following respects (Offe, 1985; Lash and Urry 1987):
  1. the growth of a ‘world market’, a decline in the regulation of national markets by dominant corporations, by tariffs, cartels, etc, and at the same time a declining capacity of individual nation states to control their own economic destinies. This includes a breakdown in ‘neocorporatist’ forms of state regulation and the provision of social welfare, which is associated with the appearance of contradictions between these state forms and the accumulation of capital (e.g. the appearance of ‘fiscal crises’);
  2. the expansion of the SERVICE CLASS(ES), existing between CAPITAL and LABOUR, and the appearance of ‘new social movements’ (e.g. ecological and womens movements), and a movement away from old ‘class politics’; these developments are associated with the decline of labour-intensive traditional heavy industry in the West, as the result of the export of jobs to the Third World and with the introduction of new flexible, knowledge-based and labour-saving forms of work organization in new high tech and service areas of production;
  3. an increasing cultural fragmentation, pluralism, etc, including political pluralism, and the undermining of distinctive national identities, cultural values, etc;
  4. a tendency for societies to be continuously transformed ‘from above’, and ‘from below’, so that ideas and cultures, industries and cities, as well as classes, are kept in a state of flux.

In contrast with earlier notions that ADVANCED CAPITALISM is either more organized than earlier forms of capitalism – by virtue of the introduction of state controls, monopoly, etc. – or will ultimately involve a final crisis, the concept of ‘disorganized capitalism’ in the above, modern, sense involves a doctrine neither of stability nor breakdown, but rather it sees continual adjustments within capitalism.

References in periodicals archive ?
Like the term postmodernism, the phrases late capitalism and disorganized capitalism have been used in many different ways by different theorists, but most often they refer to the shift from modern industrial or "Fordist" capitalism to the new forms of global capitalism that emerged following World War II, and above all since the 1960s and 70s (Harvey 1990).
In disorganized capitalism, the relation between banks and corporations becomes more episodically enacted and the old nationally-organized axis of finance capital fades--particularly as new governance norms deter bankers from sitting on corporate boards.
Disorganized Capitalism and the Changing Context of Corporate Power
The three developments I have identified with disorganized capitalism contributed to a restructuring corporate business in Canada during the closing decades of the twentieth century.
In disorganized capitalism, investment capital is highly mobile, and the pressure to attain maximal profitability is severe.
Amid all that, postmodern capitalism raises concern about a shift from an era of organized to disorganized capitalism (Lash and Urry, 1987).
In an era of disorganized capitalism, the production of social differences is the most pressing hallmark of the postmodern drift in economy.
No wonder that the worldwide move toward privatization within the era of disorganized capitalism reaffirms that the postmodern method of allocation of scarce resources is based on the "laws" of laissez-faire rather than organizational rationality of big business along with the further implementation of workplace democracy (Oglivy, 1989: 21).
Replacing the visible hand of managerial capitalism with the invisible hand of the market and workplace democracy, disorganized capitalism also means "the second industrial divide".
Anyone wanting to understand the role of culture in workers' resistance and "consent" to Canadian capitalism, from the craft era to early welfare capitalism, and from Fordism to the disorganized capitalism of the Third Industrial Revolution, will want to read these books and engage the debates these authors have raised.