Tuesday, January 11, 2005

715 Made in Sri Lanka

After tossing about $60 of groceries in the cart, and $25 of HBH (health, beauty & household) purchases, I looked through the 50% off racks in the clothing section. I selected a rose colored, corduroy short jacket with three buttons and three pockets and some elastic at the bottom edge and wrists. I looked at the tag. "Made in Sri Lanka." I wondered if the women who had constructed it in the garment industry there were still alive. I hoped that because they had factory jobs perhaps they lived inland, but I'm suspecting that they were probably in their home villages for the week-end which may have been close to the water. Sri Lanka is an island, after all.

But there's another tsunami coming for those women. In November, the Washington Post reported that as of January 1, 2005 many of the garment industry jobs originally outsourced from the southern US, will be leaving some of the world's poorest countries to take up shop in China.
On Jan. 1, World Trade Organization rules governing the global textile trade will undergo their biggest revision in 30 years. The changes are expected to jeopardize as many as 30 million jobs in some of the world's poorest places as the textile industry uproots and begins consolidating in a country that has become the world's acknowledged low-cost producer: China.

About $400 billion in trade is at stake, but the implications are greater than the money involved. Since 1974, many developing countries have pinned their economic hopes on a complicated system of worldwide quotas that guaranteed each a specified share of the lucrative textile markets in the United States and Europe. By specifying how many blue jeans or how much fabric an individual country could export, the quotas have effectively limited the amount of goods coming from major producers like China, while giving smaller or less competitive nations room to participate. Capital and jobs followed the quotas, helping countries build an industrial base through textile exports.

The jobs are low-paying and tough: Overseas textile plants have been a central target for labor and human rights activists. But the textile industry has, since the Industrial Revolution, provided an opening wedge for broader economic development, and officials in dozens of countries hoped it would continue to do so.
The USA and Europe, in order to protect their own workers, have punishingly high tariffs and quotas for some of these countries affected by the tsunami. After we clean up the ravages of the earthquate driven storm, we'll need to look at what our own policies are doing. I'm sure the message won't be lost on Muslim terrorists.

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