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By John Pickles, Robert M. Jenkins

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Thus, while in the form of better wages, work conditions, job security, firm- and sector-based bonuses, leading sector labour may gain from the capital – labour compromise, the high costs of raising the ‘infant’ transplants are socialized. 37 The situation is even worse in the heavy-basic political economy. To the extent that a compromise within the leading sector emerges, it may result in a multi-class pressure group whose primary aim is to maintain inefficient firms, output, exports, and employment by protecting sunset industries.

Thorough versus shallow paths of restructuring and transnational integration To understand this puzzle it is important to recognize that in a market society states cannot restructure the economy on their own, but have to rely on economic actors. 9 Success in Eastern European manufacturing industries ultimately depended on the decisions of western businesses to restructure by foreign direct investment (FDI) or by subcontracting production from eastern facilities and incorporating them into transnational systems of production.

Max Weber, ‘Chapter 2. The Spirit of Capitalism’, The Protestant Ethic and the Spirit of Capitalism, 1905, London: Routledge, 2001. 2. Karl Polanyi, The Great Transformation, New York: Rinehart & Company, 1944, p. 45. 3. For a review, see J. Pickles and A. Smith, eds, Theorising Transition: The Political Economy of Postcommunist Transformation, London and New York: Routledge, 1998. 4. R. L. html. His comments are directed specifically to political science, but I think they can be usefully thought of more generally in terms of post-socialist transformation studies.

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