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Thorsten Beck and Ross Levine
Levine Aghion, Peter Howitt and Ross Levine
Industrial relations is as relevant in emerging economies as it is in developed economies. The chapter examines the institutionalization of employment relations in five emerging economies: Brazil, China, India, South Africa and Turkey. The analysis reveals patterns of continuity and discontinuity. Many features of industrial relations remain path-dependent despite significant changes in the economic and political context in each of these countries. Democratic transition and the incorporation of organized labour and employers expanded the influence of these actors on economic and social policy. However, the liberalization of product and service markets placed pressure on industrial relations institutions. The degree to which these institutions have been able to contribute to inclusive development depended on a balance of associational and institutional power. This determined their capacity to influence labour and social policy at a macro level and to regulate flexibility at the workplace. High degrees of unemployment and informal employment pose internal constraints on industrial relations institutions and limit their potential to contribute to inclusive outcomes. This is compounded by a deepening representational gap and the increasing heterogeneity among members of employers’ and workers’ organizations. Without a concerted effort to expand labour protection through institutions for labour relations to all those who work, industrial relations will continue to be eroded and constrained in its ability to contribute to inclusive development.