13: Social Protection and the

Concept of Decent Work

1. Protect Labor by Using Protectionism
2. Addressing Labor Standard and Other Social
Issues by WTO
3. Failure of Trade Liberalization in Addressing
Poverty
4. Labor Standards
5. Education and Culture
6. Health and Environment
7. Trade Liberalization and Gender Issues
8. Health and Environment
9. Trade Liberalization and Gender Issues

13.1.1 Protect Labor by Using

Protectionism
In the competitive international economy there is
greater vulnerability to sudden change than in
protected national markets.
Globalization triggers the need for frequent adjustments
to national production processes and hence, to jobs
and the strategies of social protection.
Adjustments take time and require public policy
interventions to support the restructuring of
production systems and the creation of new
opportunities.

13.1.2 Protect Labor by Using

Protectionism
The reality is:
80% of the worlds families have little or no social
protection (because of financial strain, slow growth,
national budgetary restrictions often compounded
with demographic changes);
Countries cannot achieve employment goals on their
own
Jobs, incomes, security, rights of workers all are
affected by patterns of internal investments and the
cross border movements of capital and workers.

13.1.3 Protect Labor by Using

Protectionism
Many incline to resist liberalization and adopt a policy of
protectionism. But protection is not an efficient means of
sustaining employment: jobs saved in protected industries
are often offset by viable jobs foregone elsewhere in the
economy.
Structural adjustment, as already discussed have many sins
but if the adjustments can be implemented with a positive
set of policies, including especially the policy of
equitable redistribution of income earned through
increased employment and output attained by
liberalization, it may play an important role in defining
the political feasibility and sustainability of trade reforms
provided that the policies adhere to and strengthen core
labor standards.

13.1.4 Core Labor Standards

Core labor standards should reflect
Basic human rights,
Freedom of association and promotion of
expression of free choice,
Right to collective bargaining,
Elimination of all forms of forced and
compulsory labor,
Effective abolition of child labor,
Elimination of discrimination in respect of
employment and occupation, and
Healthy functioning of market processes.

13.1.5 Decent Work

ILO adopted a Declaration on Fundamental Principles and Rights
at Work in 1998 but the declaration is not enough: (a) trade
sanctions to promote adherence to core labor standards remain
highly controversial; (b) child labor issue remained unresolved
and (c) the developments only confirm that trade interventions
are not an optimum instrument to abolish exploitative child
labor and expand human capital.
Reforms are now needed as integrated programs of supporting
growth, enterprise development, poverty reduction,
environment protection and creation/promotion of decent work.
The concept of decent work emphasizes not only the existence of
a good work place environment and proper practice of
providing all due benefits to employees but also the social
protection, the fundamental rights at work and all aspects of
social justice.

13.2 Addressing Labor Standard

and Other Social Issues by WTO
WTO (established in 1995) was supposed to make
operational the Trade and Environment Committee
formed by its predecessor GATT. But the committee had
limited mandates. USA and France proposed to include
social issues in the agenda of WTO in its Singapore meet
(1996) but apprehending that the developed countries
would create provisions and use them in their own
interests the developing countries opposed the proposal.
The developed and the developing countries however,
agreed in the Singapore meet to allow WTO and ILO to
work out ways for ensuring international labor standards.
Both groups also agreed that the comparative advantage
of the developing countries because of low wages I them
would not be an issue in considering labor standards.

13.2.1 Addressing Labor Standard

and Other Social Issues by WTO
Social issues in international trade were
supposed to be in the agenda of the Seattle
Meet (of Ministers, December 1999).
But demonstrators and activists organized a
strong protest and the Seattle Meet ended
without any resolution.
These were also on the table in WTOs Doha
Ministerial level meeting (November 2001)
but since the least developed countries
practically did not have any interest, there was
almost no progress in the area.

13.2.2 Addressing Labor Standard

and Other Social Issues by WTO
The reason why most developing countries remained
reluctant and many of them were actively against the
initiative of the developed countries in resolving social
issues in international trade has been the fact that the
term social issue was centered around labor standards
and most other issues (environment surrounding the
workplace, the families and the communities, health and
education, poverty and unemployment, gender and
empowerment and so on) were not in the purview and the
developing countries were against being party to decision
on anything partial or incomplete.

13.2.3 Addressing Labor Standard

and Other Social Issues by WTO
Also, the developing countries, especially the LDCs
had the problem of confidence on the developed
ones who had seemingly failed to demonstrate that
they were sincere in fulfilling the commitments
they had been making in the international forums.
The developing countries are not happy to see their
developed counterparts in international trade that
the later continue to use all excuses in maintaining
the traditional system of international trade instead
of really liberalizing in favor of the developing
countries.

13.2.4 Addressing Labor Standard

and Other Social Issues by WTO
Four African countries (Benin, Burkina Faso, Chad and
Mali) raised a relevant issue in the Kankoon (Ministerial
level) Meet in September 2003:
USA and some other rich countries give excessive
subsidy to cotton growers at home but are constantly
advising the developing countries to withdraw subsidies
in their agriculture and instead of discussing the issue
(and the problems of cotton growers in Africa) the
powerful continues their line of imposing decisions on
the weak Africans, who are sometimes even humiliated
by stern attitudes and comments.

13.3.1 Failure of Trade Liberalization

in Addressing Poverty: The Facts
International trade is still run in a way that it is
against the poor;
Trade liberalization has pushed the developing
countries to a more marginalized position
The poor in the developing countries have become
poorer
The benefits of trade liberalization, whatever there
had been, are enjoyed by the industrialists,
businessmen, rich farmers and the urban intellectual
Trade liberalization increased the disparity between
the rich and the poor
Trade liberalization raised the question: whether
growth is equivalent to development?

13.3 Failure of Trade Liberalization

in Addressing Poverty: The Reasons
The poor remains out of reach of the benefits of liberalization
Poor people (farmers, entrepreneurs) do not have adequate
access to the required financing
Poor farmers and entrepreneurs fail to prove their worth as
effective agents of development
Trade liberalization has no concern about distribution of
income or the increase in assets of the disadvantaged
groups
The poor countries have low bargaining power and the pay
high for their membership in WTO; they are forced to
impose less tariffs (customs duties) on their agricultural and
non-agricultural products than what the industrially
developed countries can do and their products are sold in the
third country markets at cheaper prices which may increase
some export but that has a limit and does not lead to increase
in the net gain

13.4.1 Labor Standards: Standards of What?

So far the labor standards remained confined within
the age limit for workers but many poor countries
cannot afford to agree on the standard age limits
for regular work and for work under conditions. But
important issues beyond the age limit are:
Working hours
Leave of different kinds
Documentation of the different types of appointment
(terms of appointments, appointment letters)
Rules for termination from jobs
Health services at work place
Rest and recreation opportunities at workplace
Career prospects/prospects of pay escalations etc.

13.4.2 Labor Standards: Standards of What?

Is capital concerned about labor standards?
Capital moves to countries where it finds
cheap labor;
Capital is not interested in losing the
advantages;
Developed countries may lose job positions
in some industries at home but their gains
from trade allow them to create new jobs in
other industries.

13.5 Education and Culture

Globalization and the changes in the pattern of
international trade bring changes in education and
culture, especially demonstrated in use of information
technology, new communication system and forms and
methods
of
education
and
training,
and
commercialization of education and culture in the name
of making pragmatic or enabling education in the
competitive world.
Poor countries face tremendous difficulties in catching up.
Minority and disadvantaged groups are getting more
access but at the same time, local/indigenous traditions
and cultures are facing the threat of extinction.

13.6 Health and Environment

Health services have become more commercialized; TRIPS
and S&DT (special and differential treatment) covers many
issues of health services and import and export of
pharmaceuticals but there are still many issues that need to
be solved through coordination of drug policies and trade
liberalization packages, particularly through ensuring that
Drugs remain within purchasing capacity of the poor
people, people of the poor countries
There is a balance of intellectual property rights (in the
interest of the entrepreneurs) and the interests of the mass
consumers, and
There is a sound management of drugs that are hazardous
for health, society and the environment

13.7.1 Trade Liberalization and

Gender Issues
Liberalization restructured economic activities in many
countries leading to growth in export industries, many
countries now have EPZs but these new types of export
industries, including those in the EPZs do not properly
follow the labor laws that affect the employees most of
whom are women.
Women labor are less educated, less efficient and have
lower opportunity cost but are good in work since it is
easy to exploit them and they produce low cost products
or provide low cost services (sewing garments) because
they are paid low.

13.7.2 Trade Liberalization and

Gender Issues
Women workers are not attended with the care they need
they are not only workers, they also feed their families, give
milk to their children, take care of the members of the family
Restructuring under trade liberalization may result in decline
or even closure of industries causing loss of jobs for the
women and therefore, women workers need orientation and
also training for alternative work, which they are hardly
given.
Further, although the wage issue is sometimes floated under
some social pressure, little attention is paid to healthcare of
the women workers, environment at the workplace, especially
the ventilation and sanitation system, services like day care
centers for the children of working mothers, cafeteria and
canteens, recreation facilities and the like.