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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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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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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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Documents

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