...in China, where the central government - worried about a widening income gap and the related potential for civil unrest - is working to establish more comprehensive rights for workers in the nation's rapidly growing economy. Economists like Pietra Rivoli, author of the suberb Travels of a T-Shirt in the Global Economy, argue that China's push for labor protections is a natural evolution in the process of globalization.
Rivoli believes that labor forces in developing economies like China's, originally tapped by foreign employers because of their willingness to work for next to nothing, become more skilled and more wealthy over time. As their economic status improves, these workers will begin to clamor for more raises and workplace reforms, in effect seeking to close the gap between themselves and the workers of more developed nations. Employers must accomodate these demands or move on to a less-developed economy, where the process will start anew.
A shorter-term option for employers, of course, is to rally against raises and reforms for as long as possible. China's current push for labor rights, for example, is staunchly opposed by the U.S. Chamber of Commerce, which represents companies like Dell, Ford, GE, and Nike. While foes of globalization might interpret this as evidence of the developed world's exploitative aims, I think Rivoli would disagree. She would probably argue that, while both sides of the issue should be expected to fight for their interests, history suggests the Chinese worker will end up better off - and in the long run, the rest of us will, too.
For more on China's push for labor rights, check this NY Times article.
