Does trade improve the quality of jobs in poor countries?
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Apparently not, according to the new report from the World Trade Organisation (WTO) and the International Labour Organisation (ILO). The surge in global trade over the last two decades has failed to improve working conditions and living standards in many developing countries. Although trade has contributed to growth and development worldwide, many of the jobs created in developing countries have appeared in the informal sector. Informal sector jobs tend to be the most vulnerable, characterised by less job security, lower incomes and an absence of access to social benefits. Yet, in many African and South Asian countries, as much as 60 percent of the country’s labour force is employed by this sector. In turn, these vulnerable labour market conditions have prevented developing countries from fully benefiting from globalisation. The report warns that this situation is likely to worsen as a result of the global financial crisis.
What can we do about this? The WTO’s chief Pascal Lamy encourages putting in place proper domestic policies to create good jobs in developing countries. The report recommends a number of ways to make trade policies more closely aligned with job issues in developing countries, including better coordination between trade and labour policies, and implementing policies to encourage formalisation of employment. Rich country governments also need to support poorer country governments in doing so, and enhanced trade capacity building assistance is one way to do this.
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October 14, 2009 at 3:41 pm
One response to the cross is anger. ONE person could have came to the defense of an innocent man & changed the world. Would I have done this? I have the chance today to come to the defense of those hapless unknowing individuals that were promised prosperity & wealth from my checkbook & were given a new form of slavery. Yokefellow has some solutions to offer. Contact me for details.
October 14, 2009 at 4:01 pm
I’m a little disappointed with this one sided view form the One Campaign. In oder to “put in place proper domestic policies to create good jobs in developing countries” don’t we need to promote Democracy and human rights and fight corruption in said countries. How many one supporters will turn around and cry “cultural imperialism” if we do so. I also think it’s impossible to say that countries like India and China have not benefited economically (politically is another matter) from free trade. Sorry don’t think any organization is above criticism and One deserves it in this case.
October 16, 2009 at 1:30 pm
In my opinion if there is trade, then there is a paper trail. The companies that are participating in the global trade should have to work in the formal sector or bring their informal sector to the proper standards. If they are made to do so, working conditions will have to improve, or their income will stop. Policing this should be the burden of the country officials and purchaser of the goods.
October 16, 2009 at 3:13 pm
Not sure you folks are seeing the big picture..Family farms depend on a decent price, we in the U.S. demand low prices but investors want to see monthly gains and CEOs want to turn as large a profit as possible. Therefore, with permission from the government through coerced trade agreements legalizing what was already being practiced, Agribusiness floods markets so the price goes way down, farms fail, CEOs take more land, higher cheap labor and get production nearly free while the epic migration of workers continues.
October 17, 2009 at 1:55 am
I may be an igno on this subject… but I do not understand how globalisation or free trade is meant to foster higher quality working conditions in any way… Like the article and a commentator has mentioned: India has definitely increased in wealth, yet people with good jobs get better ones and peeple with bad jobs get worse ones… an example being the large migration of the agricultural work force to low-quality jobs in the urban areas, where conditions can scarcely be called “better”. Rather than talking about free trade is it not better to focus on implementing laws that guarantee minimum standards f working conditions all around?
November 6, 2009 at 8:07 am
hi max
November 6, 2009 at 8:09 am
Hi Sara…This Class is SUPER fun….one.org is the best website ever it changes my life