DIVERGENCE AND PERIPHERAL FORDISM IN THE EUROPEAN UNION

This paper attempts to show that convergence or divergence in the Euro pean Union (EU) will be influenced by developments in the periphery of Europe to a considerable extent, although the core situation cannot b e ignored. In essence, therefore, it is the relationship between core and periphery that will determine the future of the EU. The main thesi s of this study is that the EU economic position is such that divergen ce is more likely to occur than convergence. The focus of the analysis is what has come to be known as ''Peripheral Fordism'', which enables us to suggest that periphery prospects for economic development are p redicated upon substantial expansion of their industrial sectors based on indigenous forces. It is therefore the existing institutional stru cture within the EU that poses obstacles to convergence.