|Globalisation is pulling the wrong way.
||[Apr. 15th, 2009|07:29 pm]
Meet your happy competition in the Globalised Marketplace.|
Jainal works in silver cooking pot factory. He is 11 years old. He has been working in this factory for three years. His work starts at 9 a.m. and ends at 6 p.m. For his work he gets 700 taka (10 USD) for a month.
What will the outcome of the increasing East Vs West economic entropy be?
I had a google around, and found that viewing an economy as a system with entropy has been already touched on by Yuri Maksimenko, ( http://ideas.repec.org/p/mce/nonmon/0008.html )
I'd like to find papers dealing with the effects of economic entropy in the "Globalised Marketplace". I'm still looking...
My gut instinct is that corporate entities will want to lower workers pay, rights and benefits in the more affluent parts of the world rather than be an enabling force to remove people from life-long poverty in the poorer parts of the world.
Every business is out for itself, and they're all individual and independent entities. But they're all pulling the same way - to maximise profits at the expense of workers. It's this common aim - lowering costs by cutting the human resources expenses that bring these disparate units together into one huge psychopathic system - a monopolistic system - and it's just gained a perfect tool in aiding the cost cutting of it's human resources.
This "Global Economy" we have now is housing the most subtle monopoly to have ever existed. A monopoly that can choose workers and materials from any part of the world can force everyone onto a level playing field. Unfortunately when the field is levelled, any high outliers (small economic pockets) will come crashing down. What about the outliers on the opposite end of the economic spectrum?
The people in these outlying economies wont see the equal but opposite economic changes, and this will be why:
The high outliers are told costs must be cut to compete with the lowliers who can undercut them on costs in this new Global Economy.
The lowliers will be told that they're competing with other local economies that can undercut them, therefore wages must be cut.
This monopoly will force the entire working population into a self driven race-for-the-bottom, and no one but the companies will win out. ( http://en.wikipedia.org/wiki/Race_to_the_bottom )
As a side note - think for a moment about the "World Trade Organisation" - it doesn't stand for any one business, but for many. It could almost be a department of this new global monopoly I've spoken about.
If this race to the bottom reaches it's ultimate conclusion - we will all be working 12 hour days for a minimum wage less than the equivalent from 50 years ago.
People don't understand that a country isn't rich - it's the businesses in it, and businesses are mobile. If a country enforces laws such as taxes, and anti-monopoly laws, businesses can leave for somewhere more favourable. That's why big-businesses get so many breaks.
How can the businesses in the new Global Economy be prevented from exploiting workers the globe over?
The answer can't come from any one country - businesses can go offshore. Therefore it would need a concerted effort from every country on the globe to introduce legislation to protect workers.
But I doubt that will ever happen.