Regimes of Accumulation and Modes of Regulation
Regulation theory discusses historical change of the political economy through two central concepts: Regimes of Accumulation (or Accumulation Regime)(AR) and Modes of Regulation (MR). Regimes of Accumulation analyze the way production, circulation, consumption, and distribution organizes and expands capital in a way that stabilizes the economy over a period of time. Alain Lipietz in Towards a New Economic Order describes the Regimes of Accumulation of Fordism as mass producing, proportionate share-out of value added, and a consequent stability in firm’s profitability; with the plant used at full capacity and full employment are all elements of this approach (p. 6).
MRs are institutional sets of law, norms, forms of state, policy paradigms and other practices which provide the context for the AR's operation. Typically, it is said that it comprises money form, competition form, wage form, state form, and international regime, but can encompass many more elements than these. Generally speaking, MRs support ARs by providing a conducive and supportive environment, in which the AR's are given guidelines to which they should follow. In case that there is a tension between the two, then there may occur a crisis. Thus this approach parallels Marx's characterisation of historical change as driven by 'contradictions' between the forces and the relations of production (see Historical Materialism).
Read more about this topic: Regulation School
Famous quotes containing the words accumulation, modes and/or regulation:
“Creation destroys as it goes, throws down one tree for the rise of another. But ideal mankind would abolish death, multiply itself million upon million, rear up city upon city, save every parasite alive, until the accumulation of mere existence is swollen to a horror.”
—D.H. (David Herbert)
“Of the modes of persuasion furnished by the spoken word there are three kinds. The first kind depends on the personal character of the speaker; the second on putting the audience into a certain frame of mind; the third on the proof, provided by the words of the speech itself.”
—Aristotle (384–323 B.C.)
“Nothing can be more real, or concern us more, than our own sentiments of pleasure and uneasiness; and if these be favourable to virtue and unfavourable to vice, no more can be requisite to the regulation of our conduct and behavior.”
—David Hume (1711–1776)