Branding, production and the third world

[Silver Cheetah]

Hope nobody minds - this appeared in the Spirituality thread, kind of off topic really... I would like comments on it, if anyone is interested. MagiK, this is my reply to your post. Hope you don't object to me moving it! If you want to reply, please reply in this thread, rather than the Sprituality thread. Thanks!
Your take on East/West labour/product relations is similar to that of many people I know. Unfortunately, it by no means tells the full story.

MagiK, you seem to be blaming the governments of third world countries for the conditions in which workers producing the goods we use work and live. Many governments are repressive regimes under which appalling human rights abuses take place, and you are completely right to target those governments. But that’s only half the story.

A fair share of the blame rests squarely on the shoulders of the multi-national companies, who in many cases are involved with some of the world’s most violent, human rights abusive regimes in countries like Burma, Indonesia, Columbia, Nigeria and Chinese occupied Tibet. ]

The leader of the party that actually won the Burmese election in 1990, (a result completely ignored by the oppressive and human rights abuse junta that currently runs the country) condemned foreign investors for propping up the junta. She said that companies operating in Burma are profiting from state run slave labour camps. To this day, companies operating in Burma benefit from the conditions obtaining there, - some are actually in partnership with the military junta. (She made these comments after being released from prison, where she spent six years.)

A call to Canadian multinational Ivanhoe Mines, from a Canadian union and the Canadian Labour Congress:

“We urge you to re-evaluate your direct business relations with the Burmese military junta in light of this global consensus. It is the position of the global labour movement that it is impossible to do business with the Burmese government or in Burma without subsidizing forced labour and other human rights violations. Certainly in the case of Ivanhoe’s partnership with the military junta, foreign investment is directly propping up the regime.”

I’ve used Burma as an example (In some ways, not an ideal example, as the Burmese human rights situation is one of the worst worldwide). Unfortunately, it is not an isolated example as far as the abuse of human rights go. In four developing countries out of five, the share of wages in manufacturing is considerably BELOW what it was in the 70s and the early 80s (but at least they got some wages. In Burma, many do not. It's called slave labour). Human rights abuse is not only rife, it is the norm.

The influx of corporate production facilities to third world areas are NOT improving situations for the native people who work for those companies. Things are not getting better, in fact, they are getting worse. And as long as multinational companies are not regulated as to what they are allowed to do in third world countries, they are likely to continue to do so. Why are large companies allowed to behave in the way they do by Western governments? It is because everything has been allowed to become subordinated to the prevailing 'free trade' ideology.

Have you heard of the ‘free trade zones’ (also known as Export Processing Zones)? You must have – there’s loads on the US/Mexico border, where I believe they are called maquiladoras.

EPZs exist in many third world countries, and employ (over 27 million people. They are tax free areas where many factories exist side by side, making products for the West. There are no import or export duties on the zones. Most of them are gated. Nike, Gap, IBM...... and many others – manufacture product within the zones.

EPZ’s were first set up to help developing country economies. At least, that was the original idea behind them. The way it works is Western companies who manufacture in the zones get a 'tax holiday' for a fixed period, usually between five and ten years. No income tax is paid, and no property tax.

NO INCOME TAX - that means no contributions are made to the overall development of the country in which production is taking place at incredibly low costs which allow the companies involved to cut prices and make huge profits. No investment in the country is asked for at all during this initial tax free period. It was set up that way to attract foreign investors, who would stay in the country and hopefully eventually provide huge boosts to domestic industry, including the transfer of technology.

Unfortunately, except for three countries (one of which is Singapore), this hasn’t happened. The big companies take advantage of the tax breaks alright, but when their time is up, they up sticks and away to the next zone in another country, where , guess what? They are able to take advantage of a whole new load of tax breaks. In other words, they do it all over again. Great for them, not so great for prospects of the the developing countries, who have given something to get something, but have ended up getting very little.

Export processing zones are little worlds within countries where (as is well documented!) working conditions are worse than in the country as a whole. Pay is lower and hours are longer (up to 20 hours a day. Refusal to work overtime can mean instant dismissal without pay), and health and safety conditions are worse. Yet unions are not allowed to organise in the zones, with very few exceptions.

The big companies do NOT want unions in their manufacturing units, as that would run the risk of driving up pay, and adding health and safety related costs.

Human rights abuses are rife. Children are still working in some export processing zones. The largest majority of workers are young woman, and there is a general policy of ‘discouraging’ women from becoming pregnant (job loss follows). Pregnant women are less productive, and tire more easily. They are not cost effective.

Its just not true to say that big multinationals are blameless in what is going on. They are not completely to blame, no, certainly not. But they have to take their fair share, in my opinion.

As individuals, each of us has a standard of behavior that we try to meet, no? Most of us would be horrified at the idea of ‘using’ another human being in a degrading fashion, exploiting their energy and their labour. Treating them like objects, rather than people. But this is what is being done in our name, and to provide us with the goods that we buy.

The glossy adverts never mention where the product comes from and what is done to obtain it. No. Instead, they are full of images of the ideal body, the ideal sex life, the ideal life style. A lifestyle that many people in the West will never achieve, but which the adverts prod them to continually aspire to. How many people are perpetually unhappy because of all the things they want, and are told are desirable, but which they're unlikely to ever afford. (No wonder crime is booming.)

Personally, I boycott the bastards cheerfully and with gusto, and will continue to do so until they start with some ethics and morals. In what is a very christian country, it's all wrong that our biggest financial entities should be allowed to operate, either at home or abroad, with complete disregard for human welfare, unless those humans happen to be shareholders.


Okay, I haven’t finished.... End of the first half.......... At some point I want to make some points about the lack of regulation of McCapital.

Thanks SC I posted my toughts on the Spirituality thread, as usual my thoughts wandered all over the Map but int he end I wanted to thank you for sharing [img]smile.gif[/img] I still blame the governments, and peoples of the countries in question more than I blame the corps..but there is enough blame to go around. Unfortunatley since no two nations on earth can seem to agree on how to stop the abuses..and any attempts to try are unilatterally condemned as interference other cultures that we have no right to interfere with. Its a no win situation for any single nation to try and correct these problems, and untill the so called civilized nations work together I don't see it happening.

I would say that even the burmese people are STILL better off today than they were 100 years ago, even with the atrocities being committed in that country...Modern things like medicines and dams to prevent flooding and other indirect benefits are helping the people even if only as an afterthought or by-product.


Anyhooo thanks for the well thought out and well written post

[Silver Cheetah]

quote:

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Originally posted by MagiK:
Thanks SC I posted my toughts on the Spirituality thread, as usual my thoughts wandered all over the Map but int he end I wanted to thank you for sharing [img]smile.gif[/img] I still blame the governments, and peoples of the countries in question more than I blame the corps..but there is enough blame to go around. Unfortunatley since no two nations on earth can seem to agree on how to stop the abuses..and any attempts to try are unilatterally condemned as interference other cultures that we have no right to interfere with. Its a no win situation for any single nation to try and correct these problems, and untill the so called civilized nations work together I don't see it happening.

I would say that even the burmese people are STILL better off today than they were 100 years ago, even with the atrocities being committed in that country...Modern things like medicines and dams to prevent flooding and other indirect benefits are helping the people even if only as an afterthought or by-product.


Anyhooo thanks for the well thought out and well written post

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Shame, I've seen this just before bedtime, and am too exhausted to reply. (Posting is such hard work [img]smile.gif[/img] ) There are a couple of points I'd like to take up here... I will tomorrow... Until then, goodnight MagiK!