Globalization and exploitation: children of the Global South
Opinion analysis by Tala Otaibi, Staff Writer
April 27th, 2020
Globalization is among the most prominent phenomena in our world today. However, it is not a recent phenomenon at all. It only recently picked up growth rate in the last few decades. For centuries prior to that, the world has expanded and has become more globalized. By definition, globalization refers to the process by which the world becomes more compressed and where the awareness of the world intensifies within itself. To simplify this definition, globalization is referred to as the growing interconnectivity of the world. Social relations and connections are expanded, multiplied, and crossed several boundaries to reach far ends of the globe.
Among the most critical and influential aspects of globalization is economics and trade. Given this context, economic globalization refers to the intensification of economic connections across the globe. The upsurge of economic globalization can be traced back to the Bretton Woods Agreement that occurred after the Second World War. This Agreement put forth an immense liberalization of trade that was set to affect the world economy in its entirety. In the 1980s, multiple neoliberal policies had been put into place by world leaders such as British Prime Minister, Margaret Thatcher, and United States President, Ronald Reagan. Since then, there has been a tremendous growth in trade, which has been seen as both a direct cause and effect of economic globalization.
Transnational corporations (TNCs) are extremely powerful enterprises that operate in more than one country around the globe using a system of multiple subsidiary units. These corporations have been able to take advantage of the neoliberal policies implemented decades ago in order to set up factories anywhere they wanted around the world. TNCs took forth to disperse their manufacturing processes to systematically take place in many different places, especially in the developing world. TNCs received many benefits from the liberalization of trade, those of which included cheap labor and resources. Of course, these resources had to come from somewhere. The Global South was the optimal place for TNCs to set up their manufacturing operations. TNCs used resources from countries like Malaysia, Indonesia, and Bangladesh. Consistent resources from these countries helped TNCs make more profit than ever before because they saved a lot of money with manufacturing.
In order to best optimize their operation level, transnational corporations have had to establish extensive supply chain systems. The supply chain system works on tracing the flow of material from suppliers to consumers. This system comprises the network of all the individuals, resources, and technology that is involved in the production and delivery of any product. The supply chain system that a TNC uses is also involved with the processes that take place at the manufacturing headquarter.
In order to best understand the risen issue of exploitation, it is very important to first discuss the basic concept of human rights. With globalization also came a focus on the “individual”. Human rights are there to recognize the importance of every person as a human being, regardless of their physical and cultural characteristics. There exists to be three types of human rights norms, one of which includes civil-political liberties. These rights are inclusive of physical and civil security. This means that a person must never be subjected to torture of any kind, slavery, or inhumane treatment.
What is the connection between globalization and human rights? As previously discussed, economic globalization has provided transnational corporations with the means to use resources in the Global South. In this case, citizens of countries in the developing world are expected to work in factories that belong to these superpowers. Managers of TNCs and their supply chain systems have failed to abide by many local and international rules and regulations regarding trade and labor conditions. Working conditions, wages, and local rules regarding child labor and slavery are among the many things that supply chain managers are unable to keep track of. Supply chain capitalism has been linked to multiple forms of exploitation of labor.
The biggest victims of exploitation in this case are the children of the Global South, as their parents are already suffering in poverty and are unable to do much for them. Over the last several years, hundreds of millions of child laborers between the ages of 5 and 17 have been identified by organizations such as the ILO and UNICEF. The use of child labor is a direct violation of civil-political human rights. These children are working in dire conditions out of their control and are, therefore, deprived from their basic needs, such as education.
Will this issue end any time soon? With the complexity of supply chain system operations, it is extremely likely that issues such as child labor or labor exploitation can go unnoticed by the managers of transnational corporations. However, in the example of Nestlé, a human rights lawyer filed a lawsuit against them in 2005 on the account of using forced child labor. Following these accusations, Nestlé promised to end the use of child labor on its cocoa farms. However, years later, Nestlé is still being accused of using child laborers on its farm. The only goal TNCs have is to create more wealth and profit for themselves. Hence, this can only bring me to believe that transnational corporations will always turn a blind eye to issues that will bring them extra costs and trouble. In regards to the previously asked question, my answer is no. I do not see the issue ending any time soon for as long as there are no strict regulations stopping TNCs from exploiting the children of the Global South.