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Causes and Condition of Child/Youth Poverty: Comparing Canada and the DW (using some examples from India and Mexico)

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Presentation on theme: "Causes and Condition of Child/Youth Poverty: Comparing Canada and the DW (using some examples from India and Mexico)"— Presentation transcript:

1 Causes and Condition of Child/Youth Poverty: Comparing Canada and the DW (using some examples from India and Mexico)

2 Global Value Chains in East Asia WTO 6.03min jun Starbuck's Coffee: Commodity Chain 10 min 2011

3 (accessed jan11,07)

4 Production and consumption interlinks Core & Peripheries: Global Commodity Chain (NIKE) Integration of Households Children/youth Women * Nike's Globalization and Commodity Chain Red: manuf Green markets yellow HQs and acquisitions

5 Household in the Global Commodity Chain (World System Theory): Core or Peripheral states: Households (non indigenous) Classes: Upper & middle income Low income & the Poor Indigenous households: (Canada and L Am) Fourth World status * Child labour 2006 BBC min Nepal child labour 3min 8 Things You Really Need to Know About Child Slavery labor/how-many-kids-http://www.takepart.com/photos/7-new-stats-show-progress-fight-against-child- labor/how-many-kids- (slides) 2013 data

6 Value Chain: Geographically Dispersed Interlinks * Walmart Fire in Bangladesh 2012 (21.26min): (watch 6 min or more)http://www.youtube.com/watch?v=oLoW5Z9vhhg

7 Globally pervasive child labour: Child labour uncovered in Apple's supply chain Internal audit reveals 106 children employed at 11 factories making Apple products in past year Juliette Garside, telecoms correspondent The Guardian, Friday 25 January GMT Apple store

8 Core: Canada & children in poverty Affluent country Child benefits Social institutions & financial support for children Poorer countries Child poverty leads to child labour Basic needs not met Periphery: Mexico & India: Child Poverty Concepts Comparing on Children in poverty

9 The Global Situation of Children in Poverty 3.10 min 2008

10 WST concepts that explain the reasons for the increase in child poverty in the Core and in the Peripheries: Neoliberalism: Declining role of the State Deregulation results in Financial Meltdown (2008) Global Commodity Chain (GCC)

11 Neoliberalism & its result: GCC in Core: Declining role of the State Financial Deregulation Dismantling of Social Welfare Privatization of child care Youth integration into GCC Weakening of social policy towards children State is unable to compensate the impact on child poverty generated by the shocks Declining funding for youth programs & educ. Youth unemployment

12 WST concepts that explain the reasons for the increase in child poverty in the Core and in the Peripheries: Neoliberalism: Declining role of the State Deregulation resulted in Financial Meltdown (2008) Global Commodity Chain (GCC)

13 Neoliberalism & its result: GCC in Core: Declining role of the State Financial Deregulation Dismantling of Social Welfare Privatization of child care Youth integration into GCC Weakening of social policy towards children State is unable to compensate the impact on child poverty generated by the shocks Declining funding for youth programs & educ. Youth unemployment

14 Comparisons and Statistical Data

15 Total Global/ Regional Children/Youth in 000 (March 2012) Countries<18<5 Africa 477, ,135 Middle East and North Africa 156,444 47,524 Asia 1,151,806316,151 Latin America and Caribbean 195,713 53,461 Industrialized countries 203,008 57,212 Developing countries 1,953, ,545 Least developed countries 389, ,520 World 2,201, ,933 accessed jan26,2013

16 Childrens poverty in DW: million Absolute poverty Lack basic needs Hunger and death AIDS & blindness Severe disabilities Violence and orphans Absolute poverty is the complete lack of resources to meet basic needs and sustain life Childrens poverty in Canada: million Relative poverty Generational welfare trap Poverty cycle Social Security Publicly funded schools Universal medical car Relative Poverty The level of poverty of children living in households where disposable income is less than half of the median in a given country Contrasts between Canada & DW

17 Affluent Canada (2005): Child poverty 1.2 million children, or (1 in 6) children live in poverty. # in poverty- 20% rise ( ) 41% users of food banks, are children Child Poverty in Canada: Why are 10 percent of kids poor? 1hr April twhttp://www.youtube.com/watch?v=qt6s1maEM tw (2010) Income Inequality and Child Poverty in Canada: from Poor No More, a Canadian docu. 2.53min oct Peripheries or DW (2004) Child poverty : 674 million in poverty (2005) 70% poor in rural (agriculture) Gordon, D, et al (2003) "Child poverty in the developing world" Child labour (2004) 250 million working 120 million work full time 61% in Asia, 32 % in Africa, 7% in Latin Am accessed oct 2010 Canada: accessed Jan 2010http://www.campaign2000.ca/rc/rc04/04NationalReportCard.pdf

18 Canada (contd) (groups that are in worse situation) Child poverty rates for Aboriginal, immigrant & visible minority groups are more than double the average of that of all children At Least 50% of Aboriginal Children Live in Poverty in Canada 4 min https://www.youtube.com/watch?v=BEB8JEcoejo Support for First Nations' Children min child poverty rate among children with disabilities is 28% Developing countries (contd) (work) work as domestics work in trade & services work in manufacturing & construction

19 Canada: 2009 Child Poverty: 639,000 children live in poverty Poverty rate: 9.5% Youth unemployment 14.1% unemployment rate Aged 15-24: 408,000 youth unemployed in Oct weekly wage $ $ less than those aged 25 and over 30% of these youth find themselves in precarious jobs REVISITING FAMILY SECURITY IN INSECURE TIMES 2011 Report Card on Child and Family Poverty in Canada DW (2011) Child poverty : 1 out of 6 infants are born with a low birth weight in developing countries. A third of all childhood death in sub-Saharan Africa is caused by hunger. Every five seconds, a child dies from hunger-related diseases. 22,000 children die each day due to conditions of poverty bout_hunger_and_poverty Know Your World: Facts About Hunger and Poverty 2011

20 Child poverty is defined in the 2011 Society report as The proportion of children 17 years and under living in households where disposable income is less than half of the median in a given country.2011 Society report Ref: 2011 Society report (2011). The Conference Board of Canada, Ottawa2011 Society report Child poverty in BC min 2011http://www.youtube.com/watch?v=xVXzsxc4ikY.

21 Child Poverty in Canada LIC: Low income cut-off LIM: low income measure Report Card on Child and Family Poverty in Canada

22 Canadas Children in Poverty

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24 Source: Statistics Canada, 2006, 2001 & 1996 Censuses through the Toronto Social Research and Community Data Consortium (2006) and the Community Social Data Strategy ( ). LICO Before-Tax.

25 Source: datahttp://dsp-psd.tpsgc.gc.ca/Collection-R/LoPBdP/CIR/824-e.htm Canada:

26 Thesis on children/youth: Increasing global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. Most children/youth in the Core help extract a major share of surpluses (corporate profits) through their consumption within a stable political economy. Thus, a majority of the children/youth in the affluent Canada (Core) have been transformed into conspicuous consumers or service sector commodities, while a minority of them (1 in 10 (circa 2010)) live in poverty

27 Thesis (contd) In contrast, through poorly paid or unpaid household labour children/youth in the Peripheries are exploited through surplus extraction for profit for and consumption in the Core. In the Periphery, those children/youth who are from the rich and middle classes, become comprador consumers. But most of the peripheral countries children are absolutely poor and must work for their livelihood. Thus they become labour commodities

28 Comparative arguments using WST: 1.Global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. 2.Most children/youth in the Core help extract a major share of surpluses (corporate profits) through their consumption within a stable political economy. Thus, a majority of the children/youth in the affluent Canada (Core) have been transformed into conspicuous consumers or service sector commodities, while a minority of them (1 in 10 (circa 2010)) live in poverty 3.In contrast, through poorly paid or unpaid household labour children/youth in the Peripheries are exploited through surplus extraction for profit for and consumption in the Core. In the Periphery, those children/youth who are from the rich and middle classes become comprador consumers. But most of the DWs children are absolutely poor and must work for their livelihood. Thus they become labour commodities

29 1.Global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. CHILD LABOR/SLAVERY: NIKE, APPLE, GAP, MICROSOFT -- CHINA, INDIA, PAK min

30 Single division of labor: core accumulates capital as periphery supplies labour

31 WST & Global Commodity Chain (GCC): Commodity Chain Research HD 4 min Core:Capital rich MNCs corporate Head Office: R&D Product design Customization Market distribution Products Retail Ads

32 Inequitable Impacts of global Commodity Chains on workers in Canada ( Core): Wilma A. Dunaway, Economic Costs Educational & cultural costs Critical individual costs Wealth & Capital Concentration In Commodity Production, lower wages for the workers Low Remuneration for Non-Wage Labor (e.g. household work) Health Civic freedoms Discrimination: gender & Age Human rights Law & Order (prejudice against the poor) Conspicuous Consumption Devaluation of Arts & Humanities Commodification of Youth, child, women as Ads, Logo

33 GCC Peripheries: Labour surplus Production process: Vertically integrated GCC

34 Vertically integrated Model: MNCs GCC Foreign subsidiary or Subcontracting local company Manufacturing factories or Sweatshops Extract raw materials from resource rich areas Extract surplus from labour Household labour of the poor (low/no wage or slavery): Men, Women, Youth & Children

35 GCC (contd.) Peripheries: Labour surplus Production process: Vertically integrated GCC

36 Hidden Inputs of the Peripheries child & women in the global Commodity Chain Typical Production Node of a Capitalist Commodity Chain Cheap Labor Working class child & women subsidize the Production Process Capitalist Costs that are Externalized to Households Inequitable Impacts on children & women Surplus extraction from labour: No-wage, Unpaid & Low-wage subsidize commodity production Economic Costs to the Periphery State Subsidies: in providing societal Infrastructure of maintaining stable social order State Subsidies to Capitalist Enterprises External costs: costs: (7.39min)

37 Inequitable Impacts of global Commodity Chains on Children/youth workers: in the Periphery : Wilma A. Dunaway, Economic costs: Negative impact of loss of education years on a countrys development Country loses skill development in its future population Health costs Children in hazardous work: Life span, health and welfare irrecoverably affected Social costs Cycle of Poverty – destitution becomes endemic

38 Comparative conceptual arguments: 1.Global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. 2.Most children/youth in the Core help extract a major share of surpluses (corporate profits) through their consumption within a stable political economy. Thus, a majority of the children/youth in the affluent Canada (Core) have been transformed into conspicuous consumers or service sector commodities, while a minority of them (1 in 10 (circa 2010)) live in poverty 3.In contrast, through poorly paid or unpaid household labour children/youth in the Peripheries are exploited through surplus extraction for profit for and consumption in the Core. In the Periphery, those children/youth who are from the rich and middle classes become comprador consumers. But most of the DWs children are absolutely poor and must work for their livelihood. Thus they become labour commodities

39 Canada: Core countrys children/youth: Most are higher or middle income classes (80% all children in Canada): Children at school Youth at school/work Consumers: Conspicuous Consumption

40 Canada: Child/youth are transformed into: Conspicuous consumers (endless consumption) Service sector commodities

41 Conspicuous consumers Rich Kids for Romney 50sec Creation of artificial wants Persuaded to consume endlessly Ads & Peer pressure lure the young

42 Cores Child/ Youth conspicuous consumption: manufactured and manipulated by: Adult-led army of advertisers Marketing consultants Youth researchers

43 Child/youth in the Core transformed into: Conspicuous consumers (endless consumption) Commodified in the Service sector

44 Core: youth work is: Low-end service work Low in status, value and skill Not real work Corporations view youth work as hobb y

45 Consumerism - Commodification Link: Circularity in youth employment Service sector employers: Hire young workers because youth sells product Youth/child often is the real product being sold e.g.: Ads of child/youth in jeans or t-shirts, sneakers or snowboards, soft drinks or CDs Youth as consumers

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48 e.g.: Retail stores and food service companies: Exploit the sexuality of young workers (esp. women) to attract customers and increase sales Staffing stores by hiring youth as workers with the right look Hire by screening for an appearance, attitude and demeanor based on age, gender, race and cla ss

49 The company hires brand representatives: Not cashiers or clerks Exhibiting the A&F Look (to experience Abercrombie & Fitch stores) Selling an experience for customer to experience again and again through the Brand

50 Commodification of Youth Youth workers: wear brand name perfumes as directed. But, in Starbucks: no colognes and perfumes – only the romance of coffee aroma Faces freshly scrubbed with Body Shop Blue Corn Mask Apartments furnished with Ikea self-assembled bookcases and coffee tables

51 Circularity in youth employment: MNCs created mass consumerism (in post-WW II era) Commodification of youth in mass advertising Demand for youth as service sector workers Canadian youth want stable economy: why? (Jobs & MNCs profits will remain stable)

52 Globally Integrated conspicuous consumption Kinkos, Starbucks and Blockbuster clerks buy their uniforms of khakis and white or blue shirts at the Gap Hi! Welcome to the Gap! greeting cheer is fueled by Starbucks double espressos Résumés that got them the jobs were designed at Kinkos on friendly Macs, in 12-point Helvetica on MS Word.

53 Why Commodity Chains are created by global corporation? How does it work? NDL: International division of labour (post colonial) Endless accumulation: economic growth to maximize profits Commodification of everything; Global search for surplus extraction Repeated cycles of innovation, change, and expansion

54 Nike World Headquarters in Oregon Profits & Patents Research Lab: tests in biomechanics, physiology, sensory Customise to suit the interest of clients geography, age, gender e.g., Runners - in the United States prefer hard surfaces - in Europe prefer trails Ads (consumerism): e.g.: 2001 the Nike Goddess outlets Profit percolates up Commodification of the Young: child & youth workers consumers

55 Extraction of Raw materials (mostly from peripheries): Rubber, leather and plastic Extracted from places located in close proximity Use of household as labour Women Youth Children

56 Sent to the factories or Sweatshops for manufacturing Peripheral states: Subcontracts the production process: 765 contract factories (Nov 2013) Independent private contractors in China, Indonesia and Vietnam Vertically integrated model

57 Comparative conceptual arguments: 1.Global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. 2.Most children/youth in the Core help extract a major share of surpluses (corporate profits) through their consumption within a stable political economy. Thus, a majority of the children/youth in the affluent Canada (Core) have been transformed into conspicuous consumers or service sector commodities, while a minority of them (1 in 10 (circa 2010)) live in poverty 3.In contrast, through poorly paid or unpaid household labour children/youth in the Peripheries are exploited through surplus extraction for profit for and consumption in the Core. In the Periphery, those children/youth who are from the rich and middle classes become comprador consumers. But most of the DWs children are absolutely poor and must work for their livelihood. Thus they become labour commodities

58 Peripheral states: MNCs Subcontractors (owner class): Upper income class (global Elite class) luxury goods consumer household Rich Kids Gone Wild? min sept 2011 Who made your shirt- child lab in china 3min 2009http://www.youtube.com/watch?v=K2KCYsmWFP8 Educated & skilled workers: Middle income class (White or Blue collar) Children & youth at school Formal sector: Working men/women Consumer household (beyond basic goods)

59 Peripheral states: Lower income and Poorer classes: Working Men Working Children Working youth Working women

60 Fourth World: Indigenous population: Unemployed & discriminated men Children exploited in boarding schools Culturally alienated youth Working and abused women

61 Child/youth Poverty in Peripheral countries: International Labor Organization (ILO) reports: In 2010 Global total of Children (age 5-17): billion 20 mil. more than in 2004 (1.3% increase) In the Developing World (2010): Working children. (age ): 306 mil. Child labour (5-17): 215 million pdf Source for 2004:

62 Child labourers are defined as those: Under the minimum age for work, or Engaged in work that poses a threat to their health, safety or morals, or are subject to conditions of forced labour. Source: Child Labour: Breaking the Cycle of Poverty 2010 (5 min) *Child Labour 5.20min 2006

63 Children in hazardous work: 115 million : 20% Increase in child labour in the years age group: (from 52 million to 62 million) dcomm/documents/publication/wcms_ pdf

64 India: children working (pop:363 m. (31%) Age<14) (2009) https://www.cia.gov/library/publications/the-world- factbook/print/in.html) 13.6 million (Indian census) in million children in hazardous condition (Labour Ministry) in million live below poverty line in 1995 (Commission on Labour Standards) Mexico: children working (pop: 32m. (29%) Age <14) (2009) 8-11 million children under the age of 15 years are working in Mexico in 1994 ( US Dept of Labor, Sweat and Toil of Children, 1994, citing US Dept of State, Human Rights Report, 1993) 16 % of children (age 5-14) -15% of male & 16% female - in child labour ( ) s.html

65 India (contd) : million (Human Rights Watch) (1996) Child Economic Activity rate: 13.5% (Male) 10.3% (Female) Largest number of working children in the world - Child labour productivity accounts for 20% of Indias GNP L Am (Mexico) (contd) 40 million children (total pop. 500 mil in LAm) living or working on the streets of Latin America 20% begging to survive 24% by selling goods rest by doing subcontracting work. (Xinhua: Comtex, 2000) Working Children

66 India (contd) 85% of rural child laborers work in cultivation and agriculture, e.g., tea plantations, 40% of urban child laborers work in manufacturing and repair Also in carpet making, gem polishing, fireworks loitation/http://www.indianchild.in/Child_Exp loitation/ (acc. April 09) L.Am (Mexico) (contd) (2000) L.Am children working in the streets, markets, tourist & other areas of 108 cities - 70% are boys and 30% girls work as cart-pushers, kitchen help, and vendors children in the age group of 7 to 14 make up 30% of day laborers in the agriculture sector re/world/mexico.pdfhttp://www.globalmarch.org/resourcecent re/world/mexico.pdf (acc. Ap 09)

67 Why is child labour bad for the children? Four-year-olds tied to rug looms to keep them from running away - Working at rug looms, for example, has left children disabled with eye damage, lung disease, stunted growth, and a susceptibility to arthritis as they grow older Work prevents the child from going to school Work long hours, often in dangerous and unhealthy conditions, are exposed to lasting physical and psychological harm

68 … bad for children: Children work for too many hours and too many days, for too little, or no pay subject often to physical abuse exposed to dangerous pesticides work with dangerous tools What did World Bank and the Swiss Agency for Development and Cooperation do? financing sericulture projects dependent on child labor ( Human Rights Watch, 2004)

69 … bad for children: Children making silk thread in India dip their hands into boiling water that burns & blisters breathe smoke and fumes from machinery handle dead worms that cause infections guide twisting threads that cut their fingers Children harvesting sugar cane in El Salvador: use machetes to cut cane for up to nine hours a day in the hot sun injures their hands and legs medical care often not available

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71 2012: (source: and-stats Number of children in the world2.2 billion Number in poverty1 billion (every second child)

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77 % Children in Poverty in OECD: Impact of States decline? (2000) Poverty

78 INDIA (2004): Conditions of real poverty (worse thanmonetary measure) –26% of children are education poor; (cf. 52 % of adults) –70% of children <13 years old are undernourished, 44% severely; –7% of individuals aged 7 to 59 suffered from chronic illness. hdr.undp.org/.../presentations/2004/topic_3/Approaches%20to%20Measuring%20poverty,%20Fra nces%20Stewart.ppt


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