Economic Globalization and Labour Rights

Abstract

This is a comprehensive study that investigates on the impact of economic globalization on labour rights in developing countries. The work divides the broad topic into major subtopics to make the understanding easier. Some of the issues discussed include the general aspect of economic globalization including its benefits and drawbacks, the relationship between economic globalization and the labour law and rights, the influence that economic globalization has on trade unions and movements and also the influence of economic globalization on the aspect of women rights as well as forced labour.

Other aspects of concern in regard to this topic include issues of child labour and general employment in relation to economic globalization. Other factors that influence labour rights in conjunction with economic globalization are also discussed to help in getting a wider perspective of the topic of study.

Introduction

Globalization is a process that entails the increase in the connectivity, integration, and interdependence of various aspects especially in relation to the field of business and markets worldwide. It is an aspect that has to a great extent been facilitated by the advent and development in technology which has made it easier for individuals separated by long distances to connect forming some sort of a global village or market for instance due to the presence of appropriate mechanisms that allow for effective and fast communication like the internet and other telecommunication infrastructure, improved transportation means which are fast and effective among other aspects.

Economic globalization on the other hand is the increase in the economic interdependence that appears among various national economies around the world and is mainly fuelled by the increased and enhanced movement of various products and services across nations. It encompasses aspects like free trade through various relations formed among nations which in return makes it easy for businesses in similar industries in different countries to cooperate/ collaborate in doing business together with ease.

Just like other life aspects, economic globalization is associated with both positive and negative impacts depending on different situations. It is an aspect that is viewed with a lot of controversy with some individuals taking it to be very advantageous due to its long term positive effects while others associate it with the negative influence it has on various aspects of life like social, economic, political or even cultural spheres¹. This paper looks into the impact of economic globalization in developing countries with the main focus being on the labour rights and the factors associated with it.

The Benefits and Drawbacks of Economic Globalization

To have a better understanding of economic globalization on the labour rights in developing countries, it is essential to understand the general attributes related to globalization particularly the pros and cons that go hand in hand with the process. Globalization has had positive impact on the trade sector for instance the increase in interdependency, wealth and prosperity of various nations as a result of emergence of free trade. This has in a way brought about the aspect of unity and reduction of chances of war between nations.

Globalization has also brought about cultural homogenization which has been facilitated by development in information and communication technology which has made it possible for people of different ethnic origins to interact forming a world culture where there are no boundaries based on cultural differences².

Some of the drawbacks of economic globalization include the formation of numerous anti-globalization bodies and movements which are geared towards bringing into light the negative impacts of globalization to the public which may be lagging in terms of information on its effects.

This has in a way touched on the labour rights as people now become aware of their rights which might in one way or another have been affected by the spread of globalization strategies and hence they start demanding for their rights where they have been denied. Economic globalization has also been linked with negative effects on the environment especially in developing countries for example overexploitation of natural resources without any idea of engaging in environmentally friendly operations that focus on conservation of the environment for current and future use³.

Economic globalization also has some negative effects on the prices and demand of various natural resources due to stiff and sometimes unfair competition despite increasing production and market share. Economic globalization has also been deemed to have adverse effects on developing countries as it affects their national markets negatively.

It has also led to exploitation of cheap labour in the developing countries including child labour an aspect that is strongly objected in the international labour law. Globalization has also resulted in the loss of quality attributes of distinct nation’s for instance national identity and uniqueness in the name of developing a world culture (Pederson, 2005).

Economic globalization and general labour rights in developing countries

Labour rights encompass a number of legal human rights related to the labour or working relationships that exist between employers and employees in organizations or companies. They entail what the employees and the employers should expect from each other in regard to certain aspects like the working conditions, the benefits and the general treatment.

The labour rights are usually clearly stipulated under the labour and employment law and are different in different countries depending on how they view the employment relationship and the importance that is attached to it. Some countries give more labour rights than others especially in regard to the employees as stipulated in the laws governing the employees (labour law). Economic globalization is associated with various challenges in regard to labour rights. It is for example deemed to have an effect of reducing labour rights as well as affecting the prospects for the enactment of the labour law and rights negatively.

Various strategies have been put forth with an effort to deal with these challenges but the most notable of all is the adoption of the declaration on fundamental principles and rights at work by the international labour organization in the year 1998. This is mainly because the declaration aimed at balancing the conflicts that existed among different nations and in doing so enhancing unity by providing a central point of reference which eliminated much struggle among nations⁴.

Most developing countries have received different impacts in regard to economic globalization as the aspect has been faced with some restrictions due to the unavailability of proper infrastructure and other technological aspects to facilitate the process⁵. This aspect has resulted to the process of globalization failing to achieve much in terms of benefits in the developing countries.

Economic globalization has had both opportunities and challenges on workers and the trade unions where it interrupts the strategies and rights contained in the unions in one way or the other with some instances of fostering labour rights and others suppressing them based on various situations⁶.

Economic globalization and trade unions and movements

Trade unions are groups or representatives of workers in various organizations which act as a go between in the employer- employees’ relationship. They play a great role in fighting for the rights of the employees which covers mainly wage issues and the general working conditions to ensure that the employees are not poorly treated but rather accorded the benefits and treatment that corresponds with the value they bring into the organizations through their knowledge, skills as well as talents.

Trade unions are very essential tools to all employees irrespective of their rank and they have proved to be very effective in the collective bargaining negotiations as they give the employees a bargaining power where their views and opinions are respected and honoured by the employers and hence most of the employees’ rights are maintained.

Union membership and strength are affected by economic globalization through the various global economic factors. Economic globalization has been associated with the weakening of most trade unions hence compromising most of the labour rights due to division of the unions which affects their bargaining power. Research has however shown that the impact of economic globalization on the trade unions is highly dependent on the various measures of global economy.

Trade openness brought about by globalization for example is associated with bringing about an increase in union membership whereas aspects like direct foreign investment (FDI) are deemed to contribute negatively to the union density. It is therefore essential to note that the effects of economic globalization on trade unions and labour laws in particular are not constant but rather dependant on various aspects and situations of the economy.

The labour rights are also influenced by other factors apart from economic globalization for instance labour market conditions, the level of development in a given country, government policies and democracy aspects among other factors and hence it is better to study the effects of each of the factors as well as considering the effects of the total factors as a unit.

For example where there is a high level of democracy, the chances of protection of labour rights throughout the economy are very high as opposed to an economy where democracy is limited. It is also true that many instances of repression or undermining of labour rights are experienced in countries which have other underlying issues like political instability where even in the some instances; there are cases of murder of those who perpetrate trade union movements a good example is that experienced in separate incidents in Colombia and Zimbabwe.

This is a clear indication that although economic globalization has some impacts on the labour rights in developing countries it does not affect much of the internal factors of the given countries but rather the situations and conditions that prevail in these countries play major roles in influencing the labour rights of their employees with economic globalization adding up to what has already been felt (Mosley, 2010).

A major impact of economic globalization on labour rights in developing countries is that it has brought about an increase in the formation of anti-globalization movements which in return are associated with various positive and negative effects on the labour rights with people having the urge to demand for their employment related rights an idea that is received differently by those in authority.

Globalization has also resulted in exploitation of cheap labour from the developing countries with the involved individuals having to lose the employment opportunities abruptly for example when the work in most of the industries subsides. The inclusion of the children and prisoners in the employment sector with unfair working conditions without security and safety standards is also a violation of human rights and is not permitted in the international labour Law.

Economic globalization has also been a leading contributing factor towards the weakening of various labour and trade unions in various developing countries making them less effective in their activities and practices towards fighting for the employees’ rights contributing to negative impacts for example lowering of the wages and poor working conditions.

Job insecurity has also increased with the advent of economic globalization which has led to stiff competition in the job market resulting in many chances of losing employment chances as skills and knowledge keep on evolving with advancement in technology which comes along with changes in skills and knowledge required in various fields. This competition has led to the reduction in wages hence lowering individual’s standards of living⁷.

The rise of various employees’ trade unions and workers’ rights movements towards the end of the 20th century is an indication of the violation of the labour rights caused by economic globalization in developing countries mainly through exploitation. Mobility and trade liberalization brought about by economic globalization has resulted in the violation of most labour rights.

It is nonetheless evident that labour rights have been affected differently by economic globalization and social political globalization with the former having the negative effect of workers exploitation and the latter trying to counter this through creation of human rights forums that are aimed at creating international public awareness on matters related to various labour rights for instance those related to wage issues and the general working conditions of workers in the work places.

Economic globalization and women rights and forced labour

Forced labour and women rights is another aspect that can be discussed under the impact of economic globalization on labour rights in the developing countries since it has distinctively stood on its own. It is argued that economic globalization through increased trade openness has resulted in adverse economic drawbacks in regard to women in the employment sector as well as the rise of forced labour although it has been witnessed on rare cases in some countries.

Research has nonetheless shown that the increased competition and increased openness caused by economic globalization is not likely to foster any form of discrimination as well as forced labour due to transparency that comes along with it.

According to Abu-Ghaida and Klasen (2004), there are various forms of employment and occupation discrimination other than women discrimination for instance discrimination based on differences in political opinion, race and colour, social origin or even nationality but this particular discrimination is considered to be unique and to have dire consequences for any country’s development progress since women have recently been considered to be very useful tools in facilitating development and hence their empowerment should never be taken for granted if a nation is to develop and prosper in various political, social, cultural or even economic avenues⁸.

Women should for example receive equal pay like men for the work that is deemed to be of equal value to that performed by men which are stipulated in the equal remuneration convention of the international labour organization⁹. Forced labour is a violation of the labour rights which has been exacerbated by the rise of economic globalization which has come along with various added duties bringing up the need for more labour and since it is not readily available, the few available workers are forced to undertake the duties which in most cases do not have good pay if any.

Forced labour may take various forms for example bonded domestic work, prison labour, abduction and slavery, exploitation for example sexual harassment and economic exploitation through human trafficking, compulsory engagement in public activities, forced recruitment practices in marginal areas without being given a choice, debt related bondage among others.

Despite the arguments of whether economic globalization eliminates or exacerbates discrimination and forced labour, there are some rights or aspects that should always be promoted in the work places according to the international labour organization (ILO) which include; the eradication of all forms of forced labour, the elimination of any form of discrimination in the course of employment, the presence of freedom of association and the recognition and provision of collective bargaining and negotiations and finally the effective elimination of child labour all contained in various conventions of the international labour organization (Bellace,2001).

A positive impact of economic globalization on the women in regard to employment and occupation is that it has to a large extent increased the rate of female employment in most developing countries due to increase in employment opportunities that has been facilitated by factors like increase in production¹⁰.

Women are however placed as unskilled labourers due to the fact that there were previous instances of discrimination in terms of education and formal training making the women less competent in term of skills and knowledge. This is nonetheless a positive move as there is a likelihood that women will gain skills while at the work places and hence they will later be able to secure better positions in organizations (Tzannatos, 1999).

Economic globalization and child labour

Child labour is also a point of concern when it comes to the aspect of economic globalization and labour rights in regard to developing countries. Research shows a decrease in the overall rate of child labour with increase in economic development brought about by globalization.

However, there is evidence that there is some tendency of increase in child labour when it comes to specific regions’ studies with results showing that the more the economic growth, the more the rate of children engagement in the employment sector. This has been attributed to the increase in the demand for labour in various sectors due to the economic growth summed up with the lack of government and other human rights bodies’ intervention making it open for anybody to enter the job market including the children¹¹.

Shelburne (2002) asserts that there is usually substantial increase in child labour engagement rates in the initial stages of economic growth and development but this rate gradually decreases with the increase in economic growth and development in developing countries. There is however a general negative relationship between child labour and economic globalization although the impact is not usually experienced in the same manner where there are different levels of economic development in different countries.

Just like the women rights and compulsory or forced labour, there is evidence that increased trade openness brought about by economic globalization has an impact of reducing the engagement of children in child labour due to transparency that comes along with the interconnectivity. Child labour should not be considered beneficial in any way since in the long run, it usually has adverse effects on the individual child and affects most of the development progress of the child for instance school and other forms of socialization.

The positive effect of globalization in respect to increasing income on child labour does not show any continuity or future and hence there should be an effort by governments and other responsible bodies to take effective strategic measures to do away with the issue of child labour since it has no substantial contribution to the economy but rather has a negative impact on the general well being of the children involved (Basu, and Van, 1998).

Economic Globalization and Employment

Economic globalization is associated with a variety of impacts on the general aspect of employment. It for example creates a lot of local and international employment opportunities in various industrial sectors since it comes along with demand for more labour. Activities fuelled by trade and foreign direct investment (FDI) are deemed to have a positive impact in employment as they increase local employment through participation in the various activities involved in the processes.

It is however argued that increased trade does not necessarily have positive impact on employment especially in developing countries but rather trade impact on employment in developing countries is dependent upon other factors for example the interaction between the growth in productivity and output attained in various sectors of the economy among other factors. Generally, trade liberalization and foreign direct investment have had a considerable positive impact on employment in most developing countries.

This aspect has not only led to increasing in job opportunities but also has improved the labour rights through the facilitation of transparency and openness that has helped employees be aware of their rights and hence have the confidence of demanding for their rights whenever it is denied.

Economic globalization has had both positive and negative effects on employment in the developing countries particularly on the labour rights for example increased job opportunities and the fact that workers have known their rights which is a positive move. A negative impact could be that of poor working conditions available for the workers as they are just taken for granted to help in undertaking the increased activities brought about by globalization.

There is however some hopes that the situation will be better as various governments through labour laws and human rights agencies are on their toes to ensure that various rights in line with employment and occupation are maintained and that workers are handled appropriately to facilitate maximum performance and productivity through motivation which in return lead to job satisfaction an aspect that is very crucial for any organization’s growth and development as well as sustainability (Lee, 2006).

Other Determinants of Labour Rights

We cannot deny the fact that economic globalization has had major notable impacts on labour rights especially in the developing countries but it is also evident from research that there are other contributing factors to the conditions of labour rights in any given country most of them being internally driven as opposed to external.

Some of them include the political institutions in the country for example the type of regime that is reigning, the ideology perpetrated by the government, the distribution of the political authority within the overall political system, the economic conditions for example the conditions of the labour market and also the strength of the existing labour unions in a country and also in specific organizations in the country among other factors.

The status of the domestic economy in any given country (which is greatly affected by economic globalization) is directly related to the labour rights of the workers in different ways for example it affects the rights that the workers can access whereby economic excellence is related to democracy in governance and the more the level of democracy, the more the workers are entitled to more and more rights due to the protection accrued to them.

The state of the labour market affects the labour rights considerably in terms of the factors of demand and supply where strong labour markets enhance the appeal of various trade or labour unions by allowing the employees to be in a better position to deal with the inequality that appears between the demand and supply of the labour rights.

There strong labour markets also act as a driving force for organizations to offer more protection to their employees as the organizations aim at recruiting and retaining the employees as opposed to losing them in the competitive economy. In the absence of economic globalization in a country, chances of unemployment are likely to be high reducing the employees’ bargaining power and hence they are more susceptible to labour rights violation due to lack of choice and desperation.

The organization may also take the advantage of not offering favourable working conditions as they do not need to attract the workers when labour is in surplus. This is a clear indication that economic globalization plays an instrumental role in ensuring that the labour rights of the workers are looked into through bringing about competition in the labour market which in one way or the other makes the employees to be regarded as essential elements in bringing about success in organizations and hence they are provided with better working conditions and terms, that is, the labour rights are observed.

Economic globalization should therefore not be undermined in any way despite the negative impacts associated with it but instead, the positive impacts linked with it should be reinforced for better performance.

In regard to political aspects, democratic regimes are likely to foster maintenance of collective labour rights in the developing countries as opposed to an autocratic regime. The relationship between the political parties and the trade unions also affects the labour laws through influencing the various aspects related to labour law for example any adjustments or reforms.

The better the relationship ties between the two, the higher the chances of having better labour laws that facilitate the provision of appropriate and sufficient labour rights in the work places despite the existence of competitive pressures that may arise from economic globalization competitiveness and other external factors.

The reverse is also true since the political system would not be ready to push for any significant reforms in regard to the labour law and rights if there exists some conflicts between it and the trade unions making it very difficult for the workers to benefit from their employment as most of their rights will be suppressed making their lives uncomfortable.

Distribution of the political authority especially in terms of decision making among the various bodies of the government in developing countries for instance between the legislature, the executive and the judicial system is also a key element in the determination of the labour rights.

The more the power is distributed through the fragmented government bodies, the harder it is to make changes in the labour laws and vice versa since no single body has the autonomy over various aspects of the economy and hence it may necessitate a lot of consultation even to make a very simple change in the decisions made which may at times take too long due to the possibility of facing various oppositions that may need coming to a consensus among the various government bodies (Anckar and Anckar, 1995).

Conclusion

Economic globalization has had a lot of impacts on various aspects of the economy the labour rights being one of them. It is an aspect that has been deemed to have contributed both positively and negatively to the various fields that it touches on for instance it brings about increased opportunities while at the same time increasing competition in the economy necessitating that firms be more keen and vibrant by embarking on more strategic approaches so that they can secure a position in the competitive economy an aspect that comes along with extra costs.

Its effects are felt differently by different people with the rich being able to benefit much from it while the poor suffer much from its negative impacts. It is however argued that the benefits accrued to economic globalization surpass the drawbacks although the drawbacks can easily be identified.

The future of economic globalization is uncertain and there is a need to adopt appropriate strategies that will ensure that globalization is a tool that is beneficial to all people irrespective of their economic or development status so that peace and prosperity can be achieved in all parts of the world. This can be achieved through dealing with and eliminating the negative impacts of economic globalization no matter the cost incurred although it is not that easy.

Economic globalization is not the prime contributor to the positive and negative changes in regard to labour laws and rights but rather it adds to what other local or internal factors in a particular developing country do for example the labour market conditions, the existing political institutions, the government policies among other domestic political factors which have a great impact on the labour rights of a given nation through their influence on the enactment and implementation of various labour laws which determine the labour rights accrued to the employees in their course of work.

Reference List

Abu-Ghaida, D. and S. Klasen (2004). The Costs of Missing the Millennium Goals on Gender Equity. World Development, 32, 7, 1075-1107.

Anckar, D. and Anckar, C. (1995). “Size, Insularity and Democracy.” Scandinavian Political Studies, 18, 4, 211-229.

Anti-Slavery International and ICFTU (2001), Forced Labor in the 21st Century. London: Anti-Slavery International.

Basu, K., Van, P., (1998). The Economics of Child Labour. The American Economic Review, Vol.88, No3, pp.412-27.

Bellace, J.R. (2001). The ILO Declaration of Fundamental Principles and Rights at Work. International Journal of Comparative Labour Law and Industrial Relations, 17, 3, 269-287.

Benedek, W., Feyter, K. and Marrella, F. (2007). Economic Globalization and Human Rights. Cambridge: Cambridge University Press.

Bhagwati, J. (2004), In Defense of Globalization. Oxford: Oxford University Press.

Boserup, E. (1970). Women’s Role in Economic Development. New York: St. Martin’s.

Brisk, A. (2002). Globalization and Human Rights. London: University of California Press.

Busse, M. and C. Spielmann (2005), ‘Gender Inequality and Trade. HWWA’, Discussion Paper 308. Hamburg: Hamburg Institute of International Economics.

Dagdemir, O and Acaroglu, H. (2010). The Effects of Globalization on Child Labor in Developing Countries. Volume 2, Issue 2 pp. 37-47.

Gross, A.J. and Compa, A.L. (2009).Human Rights in Labour and Employment Relations: International and Domestic Perspectives. USA: Cornell University Press.

Lee, E. (2006). “The Social Impact of Globalization in the Developing Countries”. IZA Discussion Paper No. 1925. Web.

Mosley, L. (2010). Labour Rights and Multinational Production. New York: Cambridge University Press.

Pederson, K. (2005). “The Pros and Cons of Globalization”. Web.

Shelburne, R., 2002. An Explanation of the International Variation in the Prevalence of Child Labour. World Economy, Vol.24, No3, pp.359-78.

Smith, J. (2006). Economic Globalization and Labour Rights: Towards Global Solidarity. Notre Dame Journal of Law, Ethics & Public Policy 873.

Temkin, B and Veizaga, J (2010).The Impact of Economic Globalization on Labour Informality. New Global Studies: Vol. 4: Iss. 1.

Tzannatos, Z. (1999). Women and Labour Market Changes in the Global Economy: Growth Helps, Inequalities Hurt and Public Policy Matters. World Development, 27, 3, 551-569.

Footnotes

1. Gross, A.J. and Compa, A.L. (2009).Human Rights in Labour and Employment Relations: International and Domestic Perspectives. USA: Cornell University Press.
2. Bhagwati, J. (2004), In Defense of Globalization. Oxford: Oxford University Press.
3. Smith, J. (2006). Economic Globalization and Labour Rights: Towards Global Solidarity. Notre Dame Journal of Law, Ethics & Pubic Policy 873.
4. Benedek, W., Feyter, K. and Marrella, F. (2007). Economic Globalization and Human Rights. Cambridge: Cambridge University Press.
5. Developing countries include all countries other than the United States, Japan, Australia, New Zealand , Canada and western Europe.
6. Temkin, B and Veizaga, J (2010).The Impact of Economic Globalization on Labor Informality. New Global Studies: Vol. 4: Iss. 1.
7. Brisk, A. (2002). Globalization and Human Rights. London: University of California Press.
8. Boserup, E. (1970). Women’s Role in Economic Development. New York: St. Martin’s.
9. Anti-Slavery International and ICFTU (2001), Forced Labour in the 21st Century. London: Anti-Slavery International.
10. Busse, M. and C. Spielmann (2005), ‘Gender Inequality and Trade. HWWA’, Discussion Paper 308. Hamburg: Hamburg Institute of International Economics.
11. Dagdemir, O and Acaroglu, H. (2010). The Effects of Globalization on Child Labour in Developing Countries. Volume 2, Issue 2 pp. 37-47.