| BUSINESSWEEK ONLINE : NOVEMBER 6, 2000 ISSUE | ||||||||
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| COVER STORY
Commentary: Take a Break, Trade Bullies Problem: How to get developing nations to accept standards for the environment and labor. Solution: Tone down the West's rhetoric It seems obvious. Along with the gains from trade and investment, there are often some harsh side effects. So doesn't it follow that trade agreements among nations should address such issues as the clear-cutting of rain forests, the enslavement of children, or the jailing of abused workers who try to organize unions? To hear many activists tell it, international institutions are doing nothing to curb these abuses. This argument is fast becoming outdated. Almost unnoticed, in a multitude of ways, bodies like the World Bank and Organization for Economic Cooperation and Development are tackling labor rights, corruption, and environmental concerns. The U.S. also is building social concerns into new trade pacts with Cambodia and Jordan. Some of the same groups that have led protests are even playing a direct role in proposing rules and monitoring corporate compliance. ''We are at the table, finally, and it is a stark difference from 10 years ago,'' concedes Andrea Durbin, international programs director at Friends of the Earth. DEADLOCKED TALKS. All well and good. But for labor and environmental standards to take root, the world's developing nations also must be at the table. So far, that's been the biggest stumbling block. Poor nations view Western attempts to inject social issues into trade regimes as a cloaked protectionism. ''Now that you've exploited your own resources, you are saying to us: 'Don't cut down your own trees or we won't trade with you,''' says Liberian Finance Minister Nathaniel Barnes. As a result, the West and developing countries have been deadlocked in negotiations for a new global trade round. The West would be wise to heed these complaints. The Third World rightly views trade negotiations over the past decade as a one-way street where rich nations press for intellectual-property rights and lower tariffs--but greater access to Western markets for food and apparel never quite materializes. Developing nations also learned a harsh lesson in the 1990s, when they agreed to let foreign capital gush in, and then saw their economies collapse when it poured out. Now, the West has new social demands, some of which seem to undercut what little competitive edge poor nations have. How to break the impasse? First, the West should listen carefully. Some of the most outspoken critics of Western sermonizing are democracies, like India and Mexico. It's not that they're proud of sweatshops or oil spills. Indeed, they face plenty of pressure at home to address these problems. Most nations have signed agreements barring trade in endangered species, counterfeits, and prison goods. And they've signed on to a new worker's rights initiative pushed by the International Labor Organization. CARROTS. But Third World leaders are struggling to balance these issues with the need to create jobs for huge populations and maintain social stability. Poor nations must see tangible benefits to labor rights and the environmental reforms. Giving them greater access to Western markets would help. Developing nations also should recognize that it's better to have clear rules than to just have Western companies cave in to pressure groups back home, without regard for the economic impact. This means they can reach a consensus through international bodies such as the ILO that aren't seen as fronts for Washington. Another is by expanding accords that most nations have already signed. Instead of wielding the blunt weapon of sanctions, such pacts often use moral suasion or punishment of specific companies that violate rules. Without cooperation by all sides, they're usually toothless. But when governments commit to making guidelines work, then there is a good chance that the global capitalism of the 21st century will be guided by rules under which everyone can prosper. By PAUL MAGNUSSON Magnusson covers international trade and economics in Washington. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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