DIFFUSED INDUSTRIALIZATION IN THESSALONIKI - FROM EXPANSION TO CRISIS

Until recently, defensive practices of restructuring have been adopted in many industrial cities of southern Europe, based on diffused indus trialization, the availability of cheap labour, non-planning and illeg al modes of operation. This paper examines to what extent emerging cri sis and the prospect of the Single Market are likely to modify this 'm odel' of restructuring and under what conditions policy proposals, suc h as 'endogenous development', 'socialization of the market', 'creatio n of local employment' etc. may have any significant impact upon it. A concrete frame of reference is the Greater Thessaloniki area in north ern Greece, which until the late 1980s has shown considerable dynamism both in terms of industrial investment and in terms of employment cre ation. Its local industrial base is diversified and includes heavy and light consumer industries. Above all, however, it is characterized by extensive formal and informal production subcontracting networks with in and among enterprises of various sizes and sectors, including thous ands of homeworkers, mainly women.