(iii) Globalisation is best understood as a network linking a series of nodes located in various countries. Thus globalisation is a process of inclusion and exclusion. One is 'either in the network or outside of it'. The result of this is that one can have integrated nodes that are wealthy, have access to knowledge and global networks, while surrounded by populations and areas of exclusion. Accordingly this is not necessarily a North-South process as it can happen within countries and regions.

(b) The Labour Market

While technology does not displace labour, it has profound implications for the functioning of the labour market. Technology has shattered the model of stable employment as the network structure of the global economy enables an integration of a range of outsourced operations increasing manufacturing flexibility and instability of employment relations. However within that flexibility it is important to find ways to construct a system of labour rights.

Technology creates the need for 'self-programmable labour'. In other words people need to be provided with the skills that allow them to adapt to changes in technology, processes and knowledge on an ongoing basis.

He closed his address noting that dialogue was an essential component in identifying and progressing agendas for development.

2.2. M. Carnoy

In his presentation, M. Carnoy focussed on the role of the state during this era of globalisation.

He argued that under conditions of globalisation a fundamentally new role for the state was required. However, most national governments had not adapted to these new conditions and continue to see their role in terms of managing class conflict and mediating the development of collective worker identities. Yet, the key challenge facing governments was not the social threat emerging from a collective identity but rather from an over-individualisation and separation from the labour market. In other words, states are now challenged to find mechanisms to ensure the continual integration of workers into the economy and society. Areas of integration include education, health and social security. In particular the state needs to be able to transform schools into areas of knowledge and skill production. Carnoy acknowledged that this is a monumental task.

Globalisation results in an extensive segmentation of the labour market, in terms of both access to skills and knowledge as well as levels of social integration. Accordingly, the state needs to develop a highly flexible bureaucracy to adapt to the (ever-changing) needs of these labour market segments.

Carnoy emphasised that while integration into the global economy is essential to have access to its creativity and wealth this does not have to occur in an instrumentalist fashion. Indeed differences in state and sub-national structures are important variables in both integrating and ensuring that such integration yields socially desirable and sustainable outcomes.

2.3. E. Patel

In his presentation E. Patel focussed on globalisation and its implications for governance.

(a) Globalisation

Patel noted that globalisation has generated both incomparable wealth and huge inequality. As such it shared many of the characteristics of the Industrial Revolution, namely social exclusion, instability, trauma and transformation. However, while the Industrial Revolution had laid the foundations for the emergence of collective identities globalisation undermined those identities. Today, both processes of collective identity formation and individualisation were underway, although the latter process was increasing in strength.

In the ongoing transformation to the global economy, the state and organised labour were relative losers as both had remained largely rooted in national economies while capital had 'gone global'. This then raised the question of what are the governance responses to these processes.

(b) Governance responses

Patel further argued that responses to globalisation were currently a series of unconnected nodes of struggle faced with a connected economic network. In this context labour needed to find ways to shift its organisational strategies to the global level. He noted that the initial response of labour to the first wave of globalisation had been that it would pass, but there was now a recognition that this was a fundamental restructuring of capital and that the challenge for unions was how to organise under these conditions.

Unions have already begun to respond to the changes in the global economy. This evidenced by the rapid rise in unions taking on roles in respect of human resource development and social security.

The beginnings of a global response to some of the social consequences of globalisation can be seen in the decision of the International Labour Organisation to invoke article 33 against Burma. This constitutes the first time in the ILO's history that the article has been invoked and it morally obliges the international community to implement sanctions against Burma because of their continued use of the forced labour.

He closed his presentation noting that "huge governance responses are required for human beings to shape the world rather than human destiny to be subject to the global economy".

Z. Rustomjee focussed his responses on the impact of globalisation for the functioning of the economy and the implications for governance.

(a) The economy

Rustomjee noted that globalisation has different effects based on a sectors articulation with the economy. These differential effects / responses posed particular challenges for the state as it was compelled to be a lot more flexible in responding to the peculiarities of each sector in the economy.

These peculiarities were further reinforced by the fact that economic sector development was not always determined by inexorable economic logic but by social and in particular managerial forces. For instance, "What makes management pursue a capital intensive approach to production, when a labour intensive approach may be equally cost effective?" The decisions taken in particular contexts were as socially determined as they were the product of economic forces. This opened the need to examine the particular development patterns of each sector in the economy to assess the degree to which their future development could be shaped.

In concluding his comments on the economy, Rustomjee noted that the productive capacity exists globally to meet social needs, yet huge social needs remain unmet. One of the challenges of globalisation was finding ways to ensure that existing productive capacity was used in meeting social needs.

(b) The State

Rustomjee argued that the conceptualisation of the State and its possibilities in relation to a global economy affected the development options chosen by that State. Part of the challenge for the state, particularly the South Africa state, in this era was how to juggle the demands of outward orientation and to maintain an inward orientation to meet the social demands that arise from domestic needs.

3. QUESTIONS AND DISCUSSION

Unfortunately there was not much time available for discussion. This section just captures some of the responses made by the speakers made to questions posed by participants.

3.1. Governance

Castells' noted that that there existed a major gap between the expansion of the new economy and the social institutions necessary to harness the energies of that system to ensure development. One of the greatest challenges of globalisation was rebuilding institutions to mirror the economic transformation that was underway.

Patel noted that trade unions continued to represent the strongest organisation of civil society power. However, in this period it was essential that it built links with other expressions of civil society groupings. Further, they could no longer afford to be solely nationally focussed but needed to take cognisance and organise in response to developments on a global scale.

3.2. Systemic instability

Castells noted that it was likely that global financial system was likely to continue to be characterised by crises and volatility. Most markets return to equilibrium within a relatively short period of time. However, the people who are displaced during periods of financial crisis are reintegrated a lot more slowly, if ever.

4. CLOSURE

Andre Lamprecht closed the meeting at 19h20 and thanked all for their attendance. He reminded those present that Nedlac was mandated to forge relationships between various actors to respond to the challenges outlined in the evenings discussion.

Attendance