bonddad wrote a diary replying to David Sirota's diary, which was entitled "Where Economics Meets Religious Fundamentalism". While both bondadd and Sirota raised many important issues in their diaries, something that bonddad wrote got my attention. He wrote that third world nations are incapable of enforcing high labor standards. I think he's right, but I also think that we don't need to wait for governments to raise labor standards - we can do it ourselves.
My diary explores a practical example of how we, as first world citizens, can insist on higher labor standards in the 3rd world by weilding our power as consumers. My experience with anti-sweatship activism has shown me that this is both possible and practical. More below the fold...
This diary was origionally going to be a comment on bonddads diary, but I want to bring up a few other issues and not hijack his thread. bonddad wrote that
The government does not have the governmental infrastructure or resources to monitor or prosecute a company's behavior.
and that
We may argue for a third-party to monitor the countries labor resources - something like the UN or another multi-lateral organization. This runs into problems dealing with the country's sovereignty, making it difficult to achieve. What sovereign nation would allow a third-party to make and enforce laws within its borders? None.
My experience has shown that bonddad doesn't have this exactly right. Here's why:
We don't need to wait for governments to raise wages and working standards accross the globe. If you're part of any organization that procures products from the 3rd world, you can use the power of that organization to help a "race to the top."
Here's an example
In May of 2006, the University of California system signed on to a program called the "Designated Suppliers Program" (DSP). This program stipulates that the UC system will only import university apparel that is made in factories that pay living wages (and respect union rights and give time off for maternity leave and other workplace protections) in their countries. Since university apparel is big business in the US, and since there are over 200,000 UC students at the 10 campuses, the UC system has a lot of power as a big consumer.
This agreement does not insist that the government of El Salvador (one of the countries where UC apparel is made) enforce these living standards. Nor does it insist that the US government renegotiate a more worker friendly trade deal with El Salvador.
Rather, the DSP ties procurement contracts to working standards. If a factory doesn't respect those standards, then it doesn't get a UC contract. Simple as that. This will ensure that the few unionized factories in El Salvador (yes there are a few) will get large orders, and will encourage other factories to increase their working standards. And by signing onto the agreement, the UC system has agreed to buy producs from more worker-friendly factories. Therefore UC will not just switch to a cheaper supplier in China or Bangaladesh.
Third party monitoring groups can be effective - and here's why. A group called the Workers Rights Consortium (WRC) is in charge of monitoring and enforcing working standards, per the living wage standards established in the DSP. The WRC has no legal power , in El Salvador or in the US, to correct abuses. But the buyers who have signed onto the DSP will use their market power as large purchasers to enforce the living wage standards. If the WRC reports that a factory is not living up to these standards, then the DSP-signatories will not purchase from that factory.
And again, it's not about sovreingty - it's a consumer insisting that what they purchase is produced ethically.
If other large university systems sign on to the program, or adopt similar programs, then there will be even more demand for apparel made in living wage factories. If other large customers, like clothing companies, local governments (some city governments in California have signed on to 'sweatfree ordinances'), large corporations, et al, were to sign on, in other sectors of the globalized economy...
We can use our market power as consumers to insist on better working standards in the third world. There are a range of other issues that this brings up, but it is both possible and practical for those who participate in "the market" to influence "market forces".