Workers’ rights in the global economy
Globalization of the world economy was stimulating massive investments by transnational corporations (TNC) which acted as a dynamo to produce more jobs and higher profits worldwide. The onset of the previous Asian financial crisis had put an end to this illusion. And somehow the experience of individual workers never corresponded to this rosy view of world developments. Poverty and inequality had been on the increase in the developing world for a long time and growing insecurity and mass unemployment had scarred the industrialized world for more than two decades.
These contradictions have a simple explanation – we are seeing a worsening of the two-tier economy, with the divisions between the poor and rich widening as income distribution worsens everywhere. The world economy is producing wealth and dividends for some, but poverty and insecurity for many others.
The previous financial and economic crisis had led to social turmoil in several countries and shown the weakness of simply pursuing economic growth which does not take the needs and demands of civil society into account. It has led to a serious questioning of the process of economic growth without a social dimension. And there goes another global financial and economic crisis today, with the same problems repeating with more and more people are becoming victims of such system of growth.
Yet experience to date shows that the only answer countries can find seems to be more of the same. Governments, made increasingly desperate to increase their countries’ exports and attract foreign investors are finding themselves in a buyers’ market dominated by companies who can name their price. And that price all too often includes cheap labor, low standards and no trade unions allowed. Too much of global competitions seem to take the form of governments competing for the attention of companies, rather than enterprises competing for the attention of consumers.
These contradictions have a simple explanation – we are seeing a worsening of the two-tier economy, with the divisions between the poor and rich widening as income distribution worsens everywhere. The world economy is producing wealth and dividends for some, but poverty and insecurity for many others.
The previous financial and economic crisis had led to social turmoil in several countries and shown the weakness of simply pursuing economic growth which does not take the needs and demands of civil society into account. It has led to a serious questioning of the process of economic growth without a social dimension. And there goes another global financial and economic crisis today, with the same problems repeating with more and more people are becoming victims of such system of growth.
Yet experience to date shows that the only answer countries can find seems to be more of the same. Governments, made increasingly desperate to increase their countries’ exports and attract foreign investors are finding themselves in a buyers’ market dominated by companies who can name their price. And that price all too often includes cheap labor, low standards and no trade unions allowed. Too much of global competitions seem to take the form of governments competing for the attention of companies, rather than enterprises competing for the attention of consumers.
