Advertisement

Return and Crisis of the Fordist Model of Development

  • Vittorio Valli
Chapter

Abstract

After the end of the Second World War in the US, there was a gradual return to the Fordist model of development that, since the 1950s, had been fully operating also in several Western European economies, such as France, West Germany, Italy, Netherlands, and so on, as well as in Japan, while in the UK, it was contrasted by the severe economic consequences of the loss of the British Empire. However, toward the end of the 1960s and the beginning of the 1970s in these countries, the Fordist model of development entered a deep crisis due to several factors: the sharp reduction of the rate of growth of demand in mass-consumption sectors close to maturity, the fall in the economies of scale in these sectors, the deindustrialization process and the rapid expansion of the services sector, technological changes reducing the use of labor and increasing the flexibility of production, the rising recourse to subcontracting and offshoring, the heavy toll of the Vietnam war in the US, growing conflicts in industrial relations and social groups, the increasing competition of other industrialized or emerging economies, and so on.

Keywords

The economic consequences of the war The second wave of the Fordist model of development The crisis of the Fordist model of development 

References

  1. Becattini, G. 1975. Lo sviluppo economico della Toscana. Firenze: Irpet.Google Scholar
  2. CEA (Council of Economic Advisers). 1980. Economic Report of the President. Washington, DC.Google Scholar
  3. ———. 2018. Economic Report of the President. Washington, DC.Google Scholar
  4. Contini, B., and R. Revelli. 1992. Imprese, occupazione e retribuzioni al microscopio. Bologna: Il Mulino.Google Scholar
  5. Gerschenkron, A. 1962. Economic Backwardness in Historical Perspective. Cambridge, MA: Harvard University Press.Google Scholar
  6. Maddison, A. 2003. The World Economy: Historical Statistics. Paris: OECD.CrossRefGoogle Scholar
  7. Marshall, A. 1890. Principles of Economics. London: Macmillan.Google Scholar
  8. Piore, M.J., and C.F. Sabel. 1984. The Second Industrial Divide: Possibilities for Prosperity. New York: Basic Books.Google Scholar
  9. Porter, M.E. 1990. The Competitive Advantage of Nations. New York: Free Press.CrossRefGoogle Scholar
  10. Pyke, F., G. Becattini, and W. Sengerberger. 1990. Industrial Districts and Inter-Firm Co-operation in Italy. Geneve: ILO.Google Scholar

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Vittorio Valli
    • 1
  1. 1.Department of Economics and Statistics “Cognetti De Martiis”University of TorinoTorinoItaly

Personalised recommendations