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This paper compares the apparent rise of neo-liberal labor market reforms in India, Indonesia, the United States and Australia during recent decades. It is noted that all the economies under review have gone through major labor market reforms, though the exact nature of the reforms has varied quite considerably for each of the countries. Work stoppages in each of the economies have also generally declined in more recent years for all of the economies, though the extent and timing of the decline has varied quite considerably, especially for Indonesia. The paper argues that the evidence supports a view that neo-liberal labor market reforms have contributed to a decline in labor dispute numbers, though other factors have also contributed to the decline in stoppages, including declining inflation, changing labor market conditions and declining union density.
INTRODUCTION
There is voluminous literature on the economic and social impact of neo-liberal economic policy reforms.1 Many writers are convinced neo-liberal economic policies are responsible for many of the world's enduring woes. Others argue that the same policies are a source of economic salvation. Most writers see pluses and minuses, and depending upon the weights attached to the pluses and minuses, come down for or against or undecided. Surprisingly little attention has been given to the impact of different neo-liberal reforms on the pattern of work stoppages in different economies. To be sure, individual country studies have been made in which the issue of labor market reform has been broached. However, there has not been much attention paid to making international comparisons, and when international comparisons are made, there has been a tendency to focus on the experience of developed economies.
This paper seeks to compare the experience of four countries quite prominent, in one way or another, around the rim of the Indian Ocean: India, Indonesia, the United States and Australia. India and Indonesia are the two most heavily populated countries along the rim. Australia is lightly populated, but it is the wealthiest on a per capita basis and also has the second largest economy2 that is geographically located along the rim. The United States is, of course, not geographically located on the Indian Ocean rim, but it is the largest and most influential economy in the world and...