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Get Beyond Sweatshops: Foreign Direct Investment and PDF

By Theodore H. Moran

Photographs of sweatshop labour in constructing international locations have rallied rivals of globalization opposed to overseas direct funding (FDI). the talk is so much acute over the remedy of low-skilled employees generating clothing, shoes, toys and activities gear in foreign-owned vegetation or the crops of subcontractors. Activists cite low wages, terrible operating stipulations and various financial, actual and sexual abuses one of the damaging effects of the globalization of undefined. This quantity examines the impression of FDI in production on development and welfare in constructing international locations, and explores how host governments can benefit from the contributions of international funding whereas averting dangers to lower-skilled staff.

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3 billion. 64 Costa Rican EPZs housed eighty-five Fortune 500 companies, including regional headquarters for both Procter & Gamble and Western Union. 65 In 2000, overtaking Chile, Costa Rica became, on a per capita basis, the most export-intensive economy in Latin America. As in the Philippines, investors in Cost Rica’s EPZs took the initiative at the plant level to establish mechanisms to help preserve stability and instill a measure of loyalty within the work force. In Costa Rica, “solidarity associations” became the vehicle for fostering improved labormanagement relations.

And when might international initiatives reinforce— or undermine—the processes of improvement in the treatment of workers described here? These are the subjects of the next three chapters. chapter 4 Core Standards for the Treatment of Workers around the World As demonstrated in chapter 3, a potent method of improving the treatment of workers in foreign-owned and foreigncontrolled plants is to complement lowest-skill with relatively higherskill operations. When this strategy is successful, employers are compelled, by their own self-interest, to adopt measures designed to attract and retain better workers.

Working with public sector agencies, private administrators have also incorporated worker housing, transportation, and access to commercial infrastructure into the initial design of zones, sometimes using international builders—such as the Santa Monica Development Corporation or the Regent Crest Corporation—in project development. In the Philippines and elsewhere a large portion of the fees providing a path up from below 31 that private zone administrators charge investors come from providing transportation, security, medical care, day-care, and recreational facilities for the firms and their employees.

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