Is International trade an opportunity or/and a threat to workers ?
What are the major challenges confronting the international trading system?
In regards to my thoughts on international trade an opportunity or/and a threat to workers and my input to major challenges confronting the international trading system, I have concluded the following:
- When is international trade an/a
- Opportunity for workers?
i. International trade creates a wide range of opportunities for workers. “Economic growth, employment and living standards are all higher than they would be in a closed economy.” (IMF Staff, 2000)
ii. Investing in the poor allows food subsidies and other programs, compensatory education programs, and basic healthcare programs. (World Bank 5 Point, 2005, Chapter 3) One such program is PROGRESA which began in 1997.
- Threat to workers?
i. A seven year study was done by the World Bank and although they have had an increase in the jobs available and foreign investments in Mexico, there has been an increase of poverty since NAFTA. (Anderson, 2001)
ii. “In short, globalization does not reduce national sovereignty. It does create a strong incentive for governments to pursue sound economic policies.” (IMF Staff, 2000) One example of this is that the local governments may not have policy’s set up to protect workers against from being over worked or doing very dangerous tasks for little or no pay. It often will take the local government years to catch up on the laws to protect their workers. During the turn of the century of 1900+ we had many children working in factories for little pay with no ventilation doing very dangerous tasks. It took the United States Government years to create laws to protect children. We are seeing this type of exploits of workers in many countries around the world.
- What are some of the major challenges confronting the international trading system?
- “The 21st century will bring increased challenges in balancing security concerns with the desire to maintain strong economic and cultural ties essential to domestic well being. “ (US Gov Doc, 2005)
- “I know that it’s a special challenge to get people to pay attention to small states,” Wolfowitz said. (World Bank, Small States, 2005) The small states consist of 45 states that make up over almost 30 million people.
References:
US Gov Doc, “GAO-05-325SP 21st Century Challenges: International Affairs” retrieved on October 13, 2005 from http://www.gao.gov/challenges/internationalaffaris.pdf
Anderson, Sarah, August 2001, “Seven Years after NAFTA”, [Electronic Version], Institute for Policy Studies 2001. Retrieved on October 10, 2005, from http://www.ips-dc.org/downloads/NAFTA%20at%207.pdf
IMF Staff, “Globalization: Threat or Opportunity?”, April 12, 2000 [Electronic Version] retrieved on October 13, 2005 from http://www.imf.org/external/np/exr/ib/2000/041200.htm#VII
World Bank Presents Five-Point Development Agenda. Mexico – A Comprehensive Development Agenda for the New Era. MEXICO CITY, May 22, 2001, retrieved on October 10, 2005 from http://wbln0018.worldbank.org/LAC/lacinfoclient.nsf/8d6661f6799ea8a48525673900537f95/6389d4c432fc1df985256a50004dcfeb/$FILE/14914%20ch%2003.pdf Chapter 3
World Bank, “Small States: Special Challenges, Special Innovation Opportunities”, October 11, 2005, retrieved on October 13, 2005 from http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/TRADE/0,,contentMDK:20677030~pagePK:64020865~piPK:149114~theSitePK:239071,00.html
