Expert Group Meeting on Full Expert Group Meeting on Full Employment and Decent Work for AllEmployment and Decent Work for All

Keynote AddressKeynote AddressDrusilla K. BrownDrusilla K. BrownTufts UniversityTufts University

United Nations HeadquartersUnited Nations HeadquartersNew York, NYNew York, NY

October 2, 2007October 2, 2007

Partners Advancing Employment Partners Advancing Employment and Decent Workand Decent Work

Government: Essential Responsibility for Government: Essential Responsibility for EstablishingEstablishing and and EnforcingEnforcing Basic Labor Basic Labor Protections, Macroeconomic Stability/GrowthProtections, Macroeconomic Stability/Growth

Worker Organizations: Free, Independent, Worker Organizations: Free, Independent, Worker ControlledWorker Controlled

Corporations: The Business Case for Humane Corporations: The Business Case for Humane Labor ManagementLabor Management

Multinational Organizations: Information, Multinational Organizations: Information, Technical Assistance, ServicesTechnical Assistance, Services

Consumers: Ethical TradingConsumers: Ethical Trading

Global Supply ChainsGlobal Supply Chains as Social Capital as Social Capital

Global Supply Chains Double Edge SwordGlobal Supply Chains Double Edge Sword Extremely Efficient, StreamlinedExtremely Efficient, Streamlined Operating in the presence of imperfect Operating in the presence of imperfect

governments and markets for labor and governments and markets for labor and natural resources.natural resources.

Capacity to relieve or aggravate Capacity to relieve or aggravate governmental and market imperfections.governmental and market imperfections.

Corporate Codes PlusCorporate Codes Plus

““Ratcheting Labor Standards: Regulation Ratcheting Labor Standards: Regulation for Continuous Improvement in the Global for Continuous Improvement in the Global Workforce,” May 2000.Workforce,” May 2000.

Charles Sabel, Dara O’Rourke and Archon Charles Sabel, Dara O’Rourke and Archon FungFung

“ “Leading firms in the global Leading firms in the global economy have mastered the economy have mastered the

disciplines that foster excellence disciplines that foster excellence and innovation among their own and innovation among their own

workers and suppliers…”workers and suppliers…” Product QualityProduct Quality PricePrice On-Time DeliveryOn-Time Delivery

Apply these disciplines to the Apply these disciplines to the treatment of labor in vendor treatment of labor in vendor

factoriesfactories

Gradually and systematically ratcheting up Gradually and systematically ratcheting up standards.standards.

Process of continuous improvement in Process of continuous improvement in working conditions.working conditions.

Buyer/NGO-Sponsored Health Buyer/NGO-Sponsored Health InterventionIntervention

Bangalore Apparel Factories Bangalore Apparel Factories Geohelminth/AnemiaGeohelminth/Anemia

Seven Treatment FactoriesSeven Treatment Factories 10,810 Workers10,810 Workers Study: July 2004-March 2005Study: July 2004-March 2005

Figure 2Efficiency Rate Deviation from July

Ownership Group I

-2.5

-2

-1.5

-1

-0.5

0

0.5

1

1.5

2

2.5

3

A S O N D J F M

Month

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Rat

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rom

Ju

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Onwership Group

Treatment Factory

Non-Anemic

Anemic

Multinational BuyersMultinational BuyersEncourage Factories to Innovate Encourage Factories to Innovate

Across Spectrum of Labor Across Spectrum of Labor Management PracticesManagement Practices

Recruiting, Screening, TrainingRecruiting, Screening, Training CompensationCompensation Health and SafetyHealth and Safety Problem-SolvingProblem-Solving Workplace Based Health CareWorkplace Based Health Care

Pockets of Monopoly/Monopsony Pockets of Monopoly/Monopsony Power – Ethical TradingPower – Ethical Trading

Young women with little market Young women with little market experience, vulnerable to exploitation: experience, vulnerable to exploitation: Apparel.Apparel.

Oligopolized commodity chains: CoffeeOligopolized commodity chains: Coffee Ethical trading increases competition in Ethical trading increases competition in

oligopolized markets that depress wages oligopolized markets that depress wages for industrial and agricultural workers.for industrial and agricultural workers.

Globalization and Globalization and Rising Income InequalityRising Income Inequality

Even in when all markets functioning Even in when all markets functioning efficiently:efficiently:

Globalization may worsen outcomes for Globalization may worsen outcomes for workers.workers.

Globalization contributing to rising inequality, Globalization contributing to rising inequality, stagnant median wages, growing sense of stagnant median wages, growing sense of insecurity.insecurity.

Essential Role of National, State Essential Role of National, State and Provincial Governmentand Provincial Government

Establish and enforce basic protections for labor Establish and enforce basic protections for labor including:including:

Free Association/Collective BargainingFree Association/Collective BargainingOccupational Health and SafetyOccupational Health and SafetyBasic Education and Health CareBasic Education and Health Care

Facilitate a social contract that compensates Facilitate a social contract that compensates those harmed by market activitythose harmed by market activity

Establish institutions and governmental Establish institutions and governmental programs that support workers during market programs that support workers during market transitions.transitions.

Macroeconomic Stability/GrowthMacroeconomic Stability/Growth

Policy SpacePolicy SpaceRodrik (2007) – “How to Save Globalization Rodrik (2007) – “How to Save Globalization

from its Cheerleaders”from its Cheerleaders”

Longstanding view that the restrictions Longstanding view that the restrictions imposed by international organizations imposed by international organizations disciplined national governments.disciplined national governments.

Today: evidence that this process has Today: evidence that this process has gone too far in some arenas.gone too far in some arenas.

Example: TRIPS and access to essential Example: TRIPS and access to essential medicines. medicines.

International Labor International Labor Organization/United Nations/World Organization/United Nations/World

Bank Supporting RoleBank Supporting Role

Experiments: Better Factories CambodiaExperiments: Better Factories Cambodia Monitoring, Training, Technical AssistanceMonitoring, Training, Technical Assistance Promoting Worker-Employer-Government Promoting Worker-Employer-Government

dialogdialog Helping national governments establish Helping national governments establish

and enforce basic labor protectionsand enforce basic labor protections