Delocalisation of EU Industry : Delocalisation and the challenge of structural adjustment ; A review of policy options

Relocation or delocalisation – derived from the French ‘délocalisation’ – is a hotly debated topic; it refers to the migration of jobs and production to other parts of the world, mostly poor(er) developing countries. The debate is fuelled by the perception that relocation has become more pervasive within and across sectors, with not only traditional low-skilled, but also high-skilled jobs being ‘delocalised’. Fear and public anxiety over job losses, fed by the popular media, have engendered a vivid policy debate. From a more rational perspective, relocation and deindustrialisation are the tangible and visible effects of a process of structural adjustment in which global economic integration, international competition and technological development are key drivers. Rather than focusing on its short-term effects, relocation should be approached from this broad, encompassing perspective.