GlobalisatIon & Labour by Prof. Vibhuti Patel

8/7/2019 GlobalisatIon & Labour by Prof. Vibhuti Patel

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Seminar on GLobalisation & Labourby M.G. Labour Institute, Ahmedabad

on 25-10-2007A presentation by

By Dr. Vibhuti Patel, Director, PGSR Head, University Department of Economics

SNDT Womens University, New Marine Lines, ,Mumbai-400020

Phone-26770227, 22052970.Mobile-9321040048

[email protected]


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Globation-A Historical ContextMarked feature of neo liberal policy is enlightened self- interest

activated through market forces.The post- colonial developmenttheories have explained theconcept of dualism in terms of dichotomy of traditional andmodern .


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The Asian ScenarioSouth Asian (India, Pakistan, Bangladesh,Srilanka, Nepal), South East Asia (Thailand,

Indonesia, Philippines, Malaysia) countries,Indochina (Laos, Kampuchea and Vietnam)and China is flooded with Sweatshops, ghettolabour markets and stigmatised migrantworkers.ASEAN countries have recently discussedestablishment of Special Economic Zones thatwould ensure flexibalisation of the labour forceto attract Foreign Direct Investment (FDI).


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Globalisation Triangles


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Dual Labour Markets- Primary Sector &

Secondary Sector

Primary Sector is characterised by steadyand preferred jobs, high wage, opportunityfor advancement, good working condition,stability of employment and a role in theorganisational structure.

Secondary Sector is characterised bytemporary, self-terminating and unattractive

jobs and irregular work-habits.


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STIGMATISED GROUPS are crowded into the 2ndary

sector with low pay, no chances for upward career

prospects, low security of employment and bad working

conditions. They have flatter wage earning profile.

The lack of registration,organisation and protectiondoes not have its origin in the free play of social forces,

but it is the product of economic interests that benefit

from the state of informality in which a wide range of

activities in all branches of the economy are kept,

systematically and on a large scale, in the informal sector.


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through evasion of labour laws andtaxation, the employers cut the costs.

Informal sector functions not separate

from but subordinated to thedominant circuit .


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Super Profit for the CapitalistsSizeable section of the informal sector goodsand services are produced, frequently by

means of contracting and subcontracting,which are paid for on piecework ratherthan a time-rate basis.

Much of the economic activity in the informalsector is founded on capital from the formalsector and given the low cost of labour andtaxed minimally or not at all, return to

where it came from with tidy profit.


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New Forms of Plunder

Primitive accumulation in its classical formincluded plunder, slavery and colonialism,

while primitive accumulation in thecontemporary period includes sweatshops,labour concentration camps andcriminalisation of the working class.

In 1998, the world economy had 1.2 billionpoor i.e. population with an income of less than1 dollar per capita per day .


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Stabilisation Policies and SAPAs a result of Structural Adjustment

Programme, sacked/ retrenched formal

sector workers and employees are forcedto work in the informal sector. Victims of Voluntary Retirement Scheme have

downward economic mobility.Rationalisation, mechanisation and

automation have had labour reducing

implications .


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Social TensionsMassive Urban unemployment and ruralunderemployment and disguisedunemployment have resulted into socialtensions in terms of ethnic and religiouschauvinism in several Asian countries.

Incidents of economic crimes have risendrastically .


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Ethnic & Communal TensionsCo-existence of high wage islands in the sea of

pauperised working class has enhancedhuman misery and social conflict in thecontext of massive reduction in the welfarebudgets of the nation states in South Asia andSouth East Asia.

With rising ethnic and communal tension jeopardising economic activities, visible andinvisible activities of underground extra-legaleconomy is displaying a tendency to expand.


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Dual Economy ModelINDIVIDUALS WITH SIMILAR LEVELS OF EDUCATION &

SKILLS get differential wages due tocasualisation of the workforce.Introduction of contract system in

public sector has institutionalised neo-liberal dual economy model.

Racist Wage Policies


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Job & Wage DiscriminationImmigrants face job discrimination in pre-

entry phase & wage discrimination in

post entry phase. They remain the firstto be fired and the last to be hired.

Dualistic Models in the Asian region,promotes differentiation based onlanguage, caste, religion, ethnicbackground and exclusion from informal

network for upward economic mobility .


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External SectorMajority of the toiling poor rot in

the external sector in which realwages change at disparate rates.

Institutions like extended family,

caste and village nexus play animportant role in providing safetynets to migrant workers.


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Market SegmentationDefinition: A historical process wherebypolitical and economic forces encourage

division of labour market into separate sub-markets processing different characteristicsand behavioural rules.

SLM allows Division of Labour markets intotwo segments. Recent economic policies inAsia have consolidated SLM with detrimentaleffects on the toilers and empowerment of theowners of establishments.


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Primary & Secondary Segments1. Primary or Internal segment , which is

composed of the owners of physical andhuman capital. .

2. Secondary or External Segment that iscomposed of the proletariat

LIMITED MOBILITY FROM O N E TOTHE OTHER is a rule of the game inthe labour, factor and product marketsegmentation.


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Pre-capitalist Labour RelationsIn the occupational labour market,interplant, intra-plant andoccupational wage differentials aresupported in the name of labour reforms.

Asian countries are flooded withmanorial markets that are remindersof feudal relations.


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GHETTO LABOUR MARKETS

Burgeoning GHETTO LABOUR MARKETS areperpetuating the law of jungle in the industrialscenario. As a result a situation arises where legalapartheid faced by micro-entrepreneurs at the foot of the economy.

Workers in casual sector are predominantly youngand single men and women, while workers inregular sector are older and married.


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Plight of the PoorSegmentation begins in the rural areaswhere the asset-less poor in the margin of

economy migrate to the cities.

Dual economy thrives on discrimination based ongender relations, caste, religion, mother tongue,parents education, family occupation, migrationstatus and age.1. Income differs widely between these segments.2. Mobility between them is limited.


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Question in Front of UsIn this situation, is development

possible without supranationalor even intra-nationalredistribution of the sources of

wealth and prosperity?


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Globalisation has enhanced patriarchalcontrol over womens sexuality, fertility and

labour by superimposing commercial valueson the conventional values throughout theworld.

In response to imposition of structuraladjustment programmes and stabilizationpolicies at the behest of International

Monitory fund & World Bank, womensmovements across the national boundarieshave been debating various strategies and tacticsof transforming the Neo-liberal Development Paradigm.


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Multi-faced tragedies due tomarketisation of poor economies and commercialisation

of human relations,commodification of womens bodies especially in sexual

trafficking,advertisements and beauty-contests promoted by theTrans-national corporations (TNCs) and Multi-nationalCorporations (MNCs),starvation deaths in the rural areas,havoc played by onslaught of new reproductive

technologies, of both pro and anti-natalist varieties, racistpopulation control policies, sex selective abortions of female foetuses,violating dignity and bodily integrity of women, armed

conflicts,increasing economic disparity, the feminisation of poverty,


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World Social Forum and Regional Social Fora have provideddemocratic platforms for reflections on a just, sustainable & caringGlobal Economy.

These deliberations have convinced us that Another World isPossible and globalisation also bears the promise and possibilities of furthering womens rights and well-being.

Gender sensitive strategic thinking can address practical andstrategic gender needs of women. For example, more women in moreareas of economic activities can be gainfully and justly employed.Information technology can enable women throughout the globe toshare strategies, successes and stress-free and safe life.

We should not forget that there is North in the South and there isSouth in the North. So we must strive for global solidarity andsisterhood of all women who are oppressed and exploited, degraded

and dehumanised by the patriarchal class structure.


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Southern Womens PerspectivesFeminist economists wedded to safeguard the entitlements of women have been trying to convince the international

financial, economic and commercial institutions, namely,World Bank, International Monitory Fund, World TradeOrganisation and Organisation of Economic Cooperation andDevelopmentto withdraw existing conditionalities and rules of economic

globalisation, andto stop covertly and overtly, promoting the interests of patriarchal class system, all over the globe, defending theinterests of TNCs and MNCs and imposing unrestrainedcommodification, thereby resulting into concentration andcentralization of economic, financial and political power inthe hands of the few.

In this paper, I have made a humble effort to capture

collective wisdom of feminist Economists and other social


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This paper deals with issues and concerns relating to the following

economic rights of women:

1. Women and Employment

2. Self Help Groups

3. Property and Land Rights

4. Gender Budgeting, Auditing and Planning

The impact of Globalisation, WTO, taxationpatterns and user fee concept are adversely

affecting women.


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Women and Employment

Some Areas of ConcernNon enforcement of Laws and Schemes(MBA,

ERA,Crche, EGS

Violation of basic Human Rights in Informal

Sector(irregular,no social protection, ragpickers)

No skills training

Abuse in Special Economic Zones (FTZs, EPZs)

Night work

Sexual harassment


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Recommendations for Employment

Policy for Womens Employment

Proper Implementation of Laws, Schemes

Law Reform(Maternity Benefit Act, Family

Leave,Sexual Harassment at Workplace)Legal Protection for Informal Sector- Umbrella

Legislation-Occupational Health & Safety

Capacity Building and Training

Social Audits of laws, rights


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Employment Guarantee Scheme and Maternity Benefits

The Employment Guarantee Scheme needs to be expanded andimproved for urban workers. The focus of such employment schemescan be on building infrastructure, slum development and housing.

The National Renewal Fund should be extended to cover theunorganized sector and a substantial part should go into theretraining of workers.

Maternity Benefit for ALL working Mothers irrespective of thenumber of employees. Creches should be provided for children of allworkers and not merely women workers irrespective of the numberof employees. There could be a common fund for each industry.

Social Audit of Workers rights


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Recommendations for strengthening the SHGs :y Groups formed by experienced and trained NGOs or WDCs

should be given bank credit and loans.y Nurturing grants be released at regular intervals after review

and grading.

y Pension-linked insurance scheme

y Banks to release loans after examining sustainability for 5 years

y subsidy be replaced by revolving fund

y MIS be expanded to collect data on training and capacity

building.

y state level agency to be appointed to train NGOs

y initiatives and training to bankers for improving programme

delivery mechanism


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Property and Land Rights

Need for a global campaign

gender bias in property laws. Need for gender-justfamily laws in matters such as marriage, divorce,

custody and guardianship of child, maintenance,

womens right to stay in the parental or

matrimonial home

As per the UN

Women constitute of worlds population,

do 2/3 of worlds work, in return get 1/10 of worlds

income and 1/100 of worlds wealth.


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Social Audit of Budgets

The Budget is an important tool in the hands of state foraffirmative action for improvement of gender relations throughreduction of gender gap in the development process. It can help toreduce economic inequalities, between men and women as well asbetween the rich and the poor.

Pro-poor budgeting, bottom-up budgeting, child budgeting

Green budgeting, local and global implications of pro-poor andpro-women budgeting

Alternative macro scenarios emerging out of alternative budgetsand inter-linkages between gender-sensitive budgeting andwomen s empowerment.

SC & Tribal Component plan must be judiciously executed.

Women s Component Plan to assure at least 30% offunds/benefits from all development sectors flow to women.

Capacity building workshops for women in governance


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Recommendations

Testamentary powers that deny the daughters rights shouldbe restricted

Allow daughters full right of residence in parental dwelling

houses

Women must be given the right to residence

putting private household property in the joint names of

partners, with precautions against misappropriation by the

male partner

10% of all houses in the housing schemes(in both, public &

private sector) must be reserved for Women Headed

Households.


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Budgeting, Auditing and Planning

budgetary policies to consider gender, class, castedynamics operating in the economy and civil society.need to highlight participatory approaches to pro-poorbudgeting, green budgeting, local and global implicationsof pro-poor and pro-women budgeting,Womens Component Plan to assure at least 30% of funds/benefits from allTax benefits be extended to women who are onlyearners in household.mandated approach of convergence of services at alllevels of governance, through inter-sectoral committeesof all Ministries/Departments at the Centre ,States withspecific responsibility to Councils and Municipalities


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Affirmative Action

Every ministry at the Centre and State levels to have a

womens division

Women and Child Development Department must be

separated

Training and capacity building workshops for decision-

makers in the government structures, village councils,

parliamentarians and audio-visual media for planning,

budgeting, implementing and monitoring.


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Strengthening of Public Distribution System (PDS)- Food

Security

visibility of women in statistics and indicators-gender

disaggregated data

Recognition of womens work in the Systems of National

Accounts

Access to critical resources ( fuel, fodder, water, health-

care, nutritious diet)

Poor and WOMEN ARE ECONOMIC AGENTS


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Alternatives to Economic Globalisation (G)

There have been two responses to G from the social movements:

a. Humanise G by building in gender awareness. Think andact globally as well as locally. Promote multilateral trade anddiplomatic relations to establish distributive justice and world peace.R evitalising economy through South-south Networking

b Build local alternatives and quit WTO. E.g. Social movementsrooted only in the local soil.

We must work with both tendencies, as the ultimate goals of both arethe same- social transformation for a just, fair and caring society.Womens rights organisations and social action groups were themost vociferous during the recently held Asia Social Forum againstTrans National Corporation and Multinational Corporation driven

G.


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Important issues for Global and local levelAdvocacy to Empower Women:

a.Strengthening of Food Security and Right to Food Top down andbottom up initiatives to stop malnutrition and starvation deathscreated by stabilisation programmes resulting into withdrawal of state from food security commitments.

b. Public Health issues must be highlighted thro a national network,Peoples Health Assembly. The Nation States should follow the UNmandate of 5 % of the GDP for budgetary allocation on the publichealth.

C.No to dumping of unsafe contraceptives for coloured and poorwomen.

d.Ban sex-selective abortions of female foetuses in South Asia andChina.


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f. State Support for Womens Education not only at the primaryschool level but also at the secondary and high school level. Forumfor Child Care has demanded that one room of the school should beconverted into crche so that girls who have to look after theiryounger siblings can also join the schools. More budgetary allocationand actual funding for girls education.

g. Free Legal Aid and Peoples Court: J ustice and Peace

Commission, a network of community organisations working inMumbai provides free legal aid to poor women to deal with maritaldisputes, divorce, maintenance, custody of children, alimony,property, right to stay in the parental or matrimonial homes. Thismodel must be replicated everywhere.

h. Housing Rights are the most important. NCHR demanded that in al1 housing societies and statesupported housing schemes, 10 % houses should be

reserved for female-headed households.


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i.Sanitation, Public toilets: There is an urgent need to take up theissues of urban sanitation in terms of higher budgetary provisionfrom the state and municipal funding.

J .Safety nets for women in the subsistence sector of the economy interms of loans, infrastructure, storage and transport and statesubsidy and support price for agriculture, animal husbandry, dairydevelopment, horticulture and floriculture.

k. Environmental Issues: Natural resources, being humankindscommon heritage, must be preserved for the use of actual and futuregeneration with the perspective that each human being has an accessto water, air, energy, etc. according to her or his needs.

l. Commercialisation and privatisation of these resources must bestopped. Biological diversity (flora, fauna, forests, ecosystems) mustbe preserved and indigenous womens collective wisdom must be

recognised, respected and valued.


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m.Occupational Health- Women scavengers and recycling workersunder extremely hazardous circumstances. They should be givenmasks, hand gloves, gum- boots and free and quality medical care.

n.Crches: the state, employers and trade unions should providemore day care centres for the children of working mothers in thecommunity and near the workplace.

o.Implementation of Labour standards: Erosion of labour standardsas a result of globalisation should be fought tooth and nail. Let thenation states compete to give better wages and work-conditions tothe workers.p.Global Code Against Commodification of Womens Body as aspare-part for sale, pornography and obscene portrayal of Women inMedia: Universal standards for decent portrayal of women in mediamust be evolved.q. Community Oriented Media: Social action groups need to interact

closely with the mainstream media, and also generate their alternate


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Decision Making for the Global Governance:We will have to change the direction of globalisation that has

rendered the toiling masses faceless and devoid of dignity.

We can see the human face of globalisation only when we are able toreduce the North South Gap in the quality of life. Women decision-makers across the globe must strive collectively and see to it that

resources and fruits of development and economic prosperity aredistributed justly among countries, within countries and among allhuman beings thereby eliminating poverty.

This will ensure everyone access to food and nutrition, shelter,health services, safe transportation, right to information, education,

justice, culturally rich leisure-time activities.

To deal with this crucial task force, we will have to evolve high

levels of participatory democracy in governance so that we canim rove lives and freedoms of eo les in all arts of the lobe.


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Think Globally, Act Locally

Thank you

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GlobalisatIon & Labour by Prof. Vibhuti Patel