Globalisation on Jamaica

Topics: International trade, World Trade Organization, Globalization Pages: 5 (1607 words) Published: May 15, 2013
1. Causes of globalization affecting Jamaica:

* For Jamaica, the main reason for globalization was darker. The energy Crisis of the early 1970s forced the Jamaican Government to take out loans from the International Monetary Fund and the World Bank to cover the rising expenses of fuel based imports. However they weren’t interested in cooperating with Jamaica in developing native infrastructure and resources, so they enforced a short-term repayment of the debt, budget cuts in areas supporting long term development, and removing all trade barriers that favored local industry and farming. Thus, this started the forceful movement of “globalization” in Jamaica. Three negative globalization cases with causes and effects:

* The first one involved Jamaica’s dairy industry. Due to free trade agreements between the United States and Jamaica, dairy farmers in Jamaica had to directly compete with American farmers without any subsidy aid from the government. This resulted in the influx of cheaper powdered milk into Jamaica from the USA, destroying its entire dairy industry altogether and farmer selling cows to the slaughterhouse at a loss. The effect of globalization on Jamaica in this case, only fostered dependency on other nations rather than focusing on its own economic development. * The second case is caused by the “Banana Wars” between Europe and America. Britain had a long-standing trade agreement with Jamaica that favored their banana exports as a way of compensating for their legacy of colonialism. This brought about complaints to the World Trade Organization (WTO) by the USA backed up by large agricultural multinational corporations like Dole, Chiquita and Delmonte who at the time already had 95% of the world’s banana trade, citing it as unconstitutional and against WTO’s policy. The ruling of WTO in USA’s favor and an international penetration of trade into Jamaica’s biggest banana market ensured yet another downfall upon one of the country’s most profitable industries due to the lack of production efficiency. * The third case came about due to the increasing economic stagnation and poverty in Jamaica. To combat this, the government agreed to create Free Trade Zones in Kingston where governmental enforcement does not apply. Ships would unload materials cut in the USA and Jamaican workers would sew garments in huge textile assembly plants near the docks for Hanes, Brooks Brothers and Tommy Hilfiger at $30 per week. These wages were not enough to sustain their standard of living and when protests emerge, the owners simply closed down their shops and relocated to Mexico, where a cheaper work force can be found. This is an example of the “race to the bottom” stemming from the effects of globalized capitalism. As a result, it leaves Jamaican citizens with lose or lose situation to either comply with unfair demands of employers or risk unemployment.

2. 3 examples in making Global Labour fair
* In order to make Global Labour fair, three sectors of society, government, multinationals and civil societies must work together using their own sets of expertise. * The first example involves the Clinton administration regarding their stance on trade in 1996. The government provided the resources and the stage to gather civil societies such as human rights NGOs and trade unions, industry leaders, and its own department of labor to discuss about responsibilities in Global Labour. Civil societies present at the meetings gave ideas and insights about developing a global code of conduct in making labour fair as well as NGOs such as the Fair Labour Association provided awareness to the public about this matter. Then multinationals and industry leaders collaborated by implementing this code of conduct throughout their supply chain, terminating contracts from their suppliers if specific labour conditions are not met. Thus forcing the improvement of Labour standards. * The second example involves the New...
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