Multi National Corporations have been a pet peeve of mine for a while now. Whenever I go to Smithville my mom has upon occasion said "I'm going to Wal-mart, do you need anything?" Since I have trouble controlling my facial expressions I relay to her that I disapprove of her consumer habits. Now she doesn't ask anymore... big box I say, is the devil.
I thought this to be true of most MNC's- setting up shop, driving out mom and pop businesses, and being able to undersell everyone because of their notoriously cheap labor and exploitation in developing countries. The MNC's proliferation of globalization and their lack of ethics, paying nationals 10 bucks a week.. their logos everywhere...yuck...humbug I thought.
Now I don't know what to think and here is why:
Let's begin with an example: Nike goes to Bangladesh and sets up a factory, pays the workers $2 a day, works them for 12 hours a day 6 days a week. The labor is unskilled (since making shoes is apparently not all that hard to do) and the labor pool is vast since the economy isn't exactly booming. If Nike moves in and hires 200 of these people- we have 200 new jobs in the economy- 200 people are able to work and provide for their families (more than before). Now besides the fact that according to my standards they don't make enough to see a movie with one weeks pay- they are making more than before.
Let's pretend Nike got a conscious and decided that they would move back to New York and start a plant there- what we would have is 200 people from Bangladesh who are suddenly jobless. What you would also have is shoes that cost you $300 instead of $100 because it costs Nike more to produce them. (ps, I don't buy nikes except for that time I needed them for volleyball-- it was an emergency and they were cheaper than the alternatives!!!) If an MNC didn't get their product made so cheaply... then it wouldn't be sold so cheaply which would directly affect those on the poverty line in developed countries who aren't able to purchase basic necessities as easily.
Back to the point- I don't hate Walmart anymore. I think they might be scummy but if you said to someone in Bangladesh "I'm rallying people to boycott Walmart so that they won't buy the product you make for such little pay"... they would look at you and say "you're doing what? I won't have a job if you do that..."(although they probably wouldn't say it in English..).
All of this comes from thinking about a book I read this weekend called
Naked Economics- which was the best book I've read about economics (the total number of books I've read on the topic doesn't matter...). The author probably explains it better on his chapter on trade and globalization- here's a taste:
Of a Thai laborer:
"She is paid $2 a day for a nine hour shift, six days a week. On several occasions, needles have gone through her hands, and managers have bandaged her up so that she could go back to work".
"How terrible," we murmured sympathetically.
Mongkol looked up, puzzled. "It's good pay," he said. "I hope she can keep that job. There's all this talk about factories closing now, and she said there are rumors that her factory might close. I hope that doesn't happen. I don't know what she would do then."
"The implicit message of the antiglobalization protests is that we in the developed world somehow know what is best for people in poor countries- where they ought to work and even what kind of restaurants they ought to eat in"
"In 1993, child workers in Bangladesh were found to be producing clothing for Wal-mart and Senator Tom Harkin proposed legislation banning imports from countries employing underage workers. The direct result was that Bangladeshi textile factories stopped employing children. But did children go back to school? Did they return to happy homes? Not according to Oxfam, which found that the displaced child workers ended up in even worse jobs, or on the streets- and that a significant number were forced into prostitution"
"Sweatshops do not cause low wages in poor countries; rather they pay low wages because those countries offer workers so few other alternatives"
ahhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhh.
What a messy world. I'm hearing that part of the answer to this ordeal could be neo-liberalism (I didn't know what that was until 2 days ago...)....but I'll save that for another post.
So, will I personally shop at Walmart?...probably not. Will I protest Walmart...probably not.
So mother, feel free to pick me up that bookshelf at your favorite MNC for when I come home.