By Theodore H. Moran
Photos of sweatshop labour in constructing international locations have rallied competitors of globalization opposed to international direct funding (FDI). the talk is so much acute over the therapy of low-skilled staff generating clothing, sneakers, toys and activities apparatus in foreign-owned crops or the vegetation of subcontractors. Activists cite low wages, bad operating stipulations and various fiscal, actual and sexual abuses one of the damaging outcomes of the globalization of undefined. This quantity examines the effect of FDI in production on progress and welfare in constructing international locations, and explores how host governments can benefit from the contributions of international funding whereas heading off risks to lower-skilled staff.
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Extra resources for Beyond Sweatshops: Foreign Direct Investment and Globalization in Developing Nations
During the early 1980s the objective of the Dominican government’s strategy was to create employment in the poorer regions, in the provinces and along the border with Haiti. Dominican labor law did not impose the minimum wage on EPZ firms during this period, and the enforcement of other worker-protection statutes was not noticeably rigorous. 39 In an effort to upgrade and diversify exports, Dominican authorities, like their counterparts in the Philippines, began in the second half of the 1980s to license new zone franchises to private developers.
S. Agency for International Development to establish a labor education and counseling center, and launched a drive to organize workers in the Cavite zone in 1997. The zone remained free of strikes throughout the decade. In the Philippines, the growing proportion of foreign firms engaged in more sophisticated industrial operations came about largely through the natural “pull” of zones that were located near relatively well-educated labor populations and backed by reasonably good infrastructure. But the Philippine experience also reflects a profound change in host countries’ efforts to upgrade the composition of foreign investment in their economies.
To set the stage, this chapter begins with an examination of the four core labor standards of the International Labor Organization. These standards, which have acquired the widest legitimacy as the basis for the treatment of workers around the world, address problems of discrimination, forced labor, and child labor, and promote freedom of association and the right to collective bargaining. ” Next, the focus of the chapter shifts to the one core standard that has been the subject of greatest 46 core standards for treatment of workers 47 controversy for foreign investment in low-wage, low-skill operations— that is, the standard that addresses freedom of association, the right to engage in collective bargaining, and the formation of trade unions.
Beyond Sweatshops: Foreign Direct Investment and Globalization in Developing Nations by Theodore H. Moran