11. ethics lec 11
TRANSCRIPT
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13: Social Protection and the
Concept of Decent Work
1. Protect Labor by Using Protectionism2. Addressing Labor Standard and Other Social
Issues by WTO
3. Failure of Trade Liberalization in AddressingPoverty
4. Labor Standards5. Education and Culture
6. Health and Environment7. Trade Liberalization and Gender Issues8. Health and Environment
9. Trade Liberalization and Gender Issues
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13.1.1 Protect Labor by Using
Protectionism
In the competitive international economy there is
greater vulnerability to sudden change than in
protected national markets.
Globalization triggers the need for frequent adjustments
to national production processes and hence, to jobs
and the strategies of social protection.
Adjustments take time and require public policyinterventions to support the restructuring of
production systems and the creation of new
opportunities.
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13.1.2 Protect Labor by Using
Protectionism
The reality is:
80% of the worlds families have little or no social
protection (because of financial strain, slow growth,
national budgetary restrictions often compounded
with demographic changes);
Countries cannot achieve employment goals on their
own Jobs, incomes, security, rights of workers all are
affected by patterns of internal investments and the
cross border movements of capital and workers.
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13.1.4 Core Labor Standards
Core labor standards should reflect
Basic human rights,
Freedom of association and promotion ofexpression of free choice,
Right to collective bargaining, Elimination of all forms of forced and
compulsory labor,
Effective abolition of child labor, Elimination of discrimination in respect of
employment and occupation, and
Healthy functioning of market processes.
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13.2 Addressing Labor Standard
and Other Social Issues by WTOWTO (established in 1995) was supposed to make
operational the Trade and Environment Committeeformed by its predecessor GATT. But the committee hadlimited mandates. USA and France proposed to include
social issues in the agenda of WTO in its Singapore meet(1996) but apprehending that the developed countrieswould create provisions and use them in their owninterests the developing countries opposed the proposal.The developed and the developing countries however,
agreed in the Singapore meet to allow WTO and ILO towork out ways for ensuring international labor standards.Both groups also agreed that the comparative advantageof the developing countries because of low wages I themwould not be an issue in considering labor standards.
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13.2.1 Addressing Labor Standard
and Other Social Issues by WTO
Social issues in international trade weresupposed to be in the agenda of the SeattleMeet (of Ministers, December 1999).
But demonstrators and activists organized astrong protest and the Seattle Meet endedwithout any resolution.
These were also on the table in WTOs DohaMinisterial level meeting (November 2001)but since the least developed countriespractically did not have any interest, there wasalmost no progress in the area.
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13.2.2 Addressing Labor Standard
and Other Social Issues by WTO
The reason why most developing countries remained
reluctant and many of them were actively against the
initiative of the developed countries in resolving social
issues in international trade has been the fact that theterm social issue was centered around labor standards
and most other issues (environment surrounding the
workplace, the families and the communities, health and
education, poverty and unemployment, gender andempowerment and so on) were not in the purview and the
developing countries were against being party to decision
on anything partial or incomplete.
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13.2.3 Addressing Labor Standard
and Other Social Issues by WTO
Also, the developing countries, especially the LDCshad the problem of confidence on the developedones who had seemingly failed to demonstrate that
they were sincere in fulfilling the commitmentsthey had been making in the international forums.
The developing countries are not happy to see theirdeveloped counterparts in international trade thatthe later continue to use all excuses in maintainingthe traditional system of international trade insteadof really liberalizing in favor of the developing
countries.
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13.3.1 Failure of Trade Liberalization
in Addressing Poverty: The Facts International trade is still run in a way that it is
against the poor;
Trade liberalization has pushed the developingcountries to a more marginalized position
The poor in the developing countries have becomepoorer
The benefits of trade liberalization, whatever therehad been, are enjoyed by the industrialists,
businessmen, rich farmers and the urban intellectual Trade liberalization increased the disparity between
the rich and the poor
Trade liberalization raised the question: whether
growth is equivalent to development?
13 3 F il f T d Lib li ti
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13.3 Failure of Trade Liberalizationin Addressing Poverty: The Reasons
The poor remains out of reach of the benefits of liberalization
Poor people (farmers, entrepreneurs) do not have adequateaccess to the required financing
Poor farmers and entrepreneurs failto prove their worthaseffective agents of development
Trade liberalization has no concern about distribution ofincome or the increase in assets of the disadvantagedgroups
The poor countries have low bargaining power and the payhigh for their membership in WTO; they are forced to
impose less tariffs (customs duties) on their agricultural andnon-agricultural products than what the industriallydeveloped countries can do and their products are sold in thethird country markets at cheaper prices which may increasesome export but that has a limit and does not lead to increase
in the net gain
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13.4.1 Labor Standards: Standards of What?
So far the labor standards remained confined within
the age limit for workers but many poor countriescannot afford to agree on the standard age limitsfor regular work and for work under conditions. Butimportant issues beyond the age limit are:
Working hours Leave of different kinds
Documentation of the different types of appointment(terms of appointments, appointment letters)
Rules for termination from jobs
Health services at work place
Rest and recreation opportunities at workplace
Career prospects/prospects of pay escalations etc.
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13.4.2 Labor Standards: Standards of What?
Is capital concerned about labor standards?
Capital moves to countries where it finds
cheap labor;
Capital is not interested in losing theadvantages;
Developed countries may lose job positions
in some industries at home but their gainsfrom trade allow them to create new jobs in
other industries.
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13.5 Education and Culture
Globalization and the changes in the pattern of
international trade bring changes in education and
culture, especially demonstrated in use of information
technology, new communication system and forms and
methods of education and training, andcommercializationof education and culture in the name
of making pragmatic or enabling education in the
competitiveworld.
Poor countries face tremendous difficulties in catching up.Minority and disadvantaged groups are getting more
access but at the same time, local/indigenous traditions
and cultures are facing the threat of extinction.
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13.6 Health and Environment
Health services have become more commercialized; TRIPSand S&DT (special and differential treatment) covers manyissues of health services and import and export of
pharmaceuticals but there are still many issues that need tobe solved through coordination of drug policies and trade
liberalization packages, particularly through ensuring that Drugs remain within purchasing capacity of the poor
people, people of the poor countries
There is a balance of intellectual property rights (in theinterest of the entrepreneurs) and the interests of the massconsumers, and
There is a sound management of drugs that are hazardousfor health, society and the environment
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13.7.1 Trade Liberalization and
Gender Issues
Liberalization restructured economic activities in many
countries leading to growth in export industries, many
countries now have EPZs but these new types of export
industries, including those in the EPZs do not properlyfollow the labor laws that affect the employees most of
whom are women.
Women labor are less educated, less efficient and have
lower opportunity cost but are goodin work since it iseasy to exploit them and they produce lowcost products
or provide low cost services(sewing garments) because
they are paid low.
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