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Expert Group Meeting on Full Employment and Decent Work for All Keynote Address Drusilla K. Brown Tufts University United Nations Headquarters New York, NY October 2, 2007
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Partners Advancing Employment and Decent Work Government: Essential Responsibility for Establishing and Enforcing Basic Labor Protections, Macroeconomic Stability/Growth Worker Organizations: Free, Independent, Worker Controlled Corporations: The Business Case for Humane Labor Management Multinational Organizations: Information, Technical Assistance, Services Consumers: Ethical Trading
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Global Supply Chains as Social Capital Global Supply Chains Double Edge Sword Extremely Efficient, Streamlined Operating in the presence of imperfect governments and markets for labor and natural resources. Capacity to relieve or aggravate governmental and market imperfections.
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Corporate Codes Plus “Ratcheting Labor Standards: Regulation for Continuous Improvement in the Global Workforce,” May 2000. Charles Sabel, Dara O’Rourke and Archon Fung
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“Leading firms in the global economy have mastered the disciplines that foster excellence and innovation among their own workers and suppliers…” “Leading firms in the global economy have mastered the disciplines that foster excellence and innovation among their own workers and suppliers…” Product Quality Price On-Time Delivery
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Apply these disciplines to the treatment of labor in vendor factories Gradually and systematically ratcheting up standards. Process of continuous improvement in working conditions.
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Buyer/NGO-Sponsored Health Intervention Bangalore Apparel Factories Geohelminth/Anemia Seven Treatment Factories 10,810 Workers Study: July 2004-March 2005
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Multinational Buyers Encourage Factories to Innovate Across Spectrum of Labor Management Practices Recruiting, Screening, Training Compensation Health and Safety Problem-Solving Workplace Based Health Care
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Pockets of Monopoly/Monopsony Power – Ethical Trading Young women with little market experience, vulnerable to exploitation: Apparel. Oligopolized commodity chains: Coffee Ethical trading increases competition in oligopolized markets that depress wages for industrial and agricultural workers.
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Globalization and Rising Income Inequality Even in when all markets functioning efficiently: Globalization may worsen outcomes for workers. Globalization may worsen outcomes for workers. Globalization contributing to rising inequality, stagnant median wages, growing sense of insecurity. Globalization contributing to rising inequality, stagnant median wages, growing sense of insecurity.
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Essential Role of National, State and Provincial Government Establish and enforce basic protections for labor including: Free Association/Collective Bargaining Occupational Health and Safety Basic Education and Health Care Facilitate a social contract that compensates those harmed by market activity Establish institutions and governmental programs that support workers during market transitions. Macroeconomic Stability/Growth
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Policy Space Rodrik (2007) – “How to Save Globalization from its Cheerleaders” Longstanding view that the restrictions imposed by international organizations disciplined national governments. Today: evidence that this process has gone too far in some arenas. Example: TRIPS and access to essential medicines.
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International Labor Organization/United Nations/World Bank Supporting Role Experiments: Better Factories Cambodia Monitoring, Training, Technical Assistance Promoting Worker-Employer-Government dialog Helping national governments establish and enforce basic labor protections
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