T2-lec 6-25feb2013child full lec Canada and the Developing World -A comparative framework Thesis on children/youth: Increasing global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. • Most children/youth in the Core help extract a major share of surpluses (corporate profits) through their consumption within a stable political economy. Thus, a majority of the children/youth in the affluent Canada (Core) have been transformed into conspicuous consumers or service sector commodities, while a minority of them (1 in 10 (circa 2010)) live in poverty • In contrast, through poorly paid or unpaid household labour children/youth in the Peripheries are exploited through surplus extraction for profit for and consumption in the Core. In the Periphery, those children/youth who are from the rich and middle classes, become comprador consumers. But most of the peripheral countries’ children are absolutely poor and must work for their livelihood. Thus they become labour commodities Comparative arguments using WST: 1. Global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. 2. Most children/youth in the Core help extract a major share of surpluses (corporate profits) through their consumption within a stable political economy. Thus, a majority of the children/youth in the affluent Canada (Core) have been transformed into conspicuous consumers or service sector commodities, while a minority of them (1 in 10 (circa 2010)) live in poverty 3. In contrast, through poorly paid or unpaid household labour children/youth in the Peripheries are exploited through surplus extraction for profit for and consumption in the Core. In the Periphery, those children/youth who are from the rich and middle classes become comprador consumers. But most of the DWs’ children are absolutely poor and must work for their livelihood. Thus they become labour commodities WST concepts that explain the reasons for the increase in child poverty in the Core and in the Peripheries: Neoliberalism: • Declining role of the State • Deregulation results in Financial Meltdown (2008) • Global Commodity Chain (GCC) Neoliberalism & its result: GCC in Core: Declining role of the State Financial Deregulation Dismantling of Social Welfare Privatization of child care Youth integration into GCC • Weakening of social policy towards children • State is unable to compensate the impact on child poverty generated by the shocks • Declining funding for youth programs & educ. • Youth unemployment 1. Global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. CHILD LABOR/SLAVERY: NIKE, APPLE, GAP, MICROSOFT -- CHINA, INDIA, PAK http://www.youtube.com/watch?v=57v_v6oSGZI 2010 4min Single division of labor: core accumulates capital as periphery supplies labour WST & Global Commodity Chain (GCC): Commodity Chain Research HD http://www.youtube.com/watch?v=bs65dIcRKXE Core: Capital rich MNCs’ corporate Head Office: R&D Product design Customization Market distribution Products Retail Ads • Inequitable Impacts of global Commodity Chains on workers in Canada (Core): Wilma A. Dunaway, Wealth & Capital Concentration Economic Costs In Commodity Production, lower wages for the workers Low Remuneration for Non-Wage Labor (e.g. household work) Educational & cultural costs Critical individual costs Conspicuous Consumption Devaluation of Arts & Humanities Commodification of Youth, child, women as Ads, Logo Health Civic freedoms Discrimination: gender & Age Human rights Law & Order (prejudice against the poor) Vertically integrated Model: MNCs’ GCC Foreign subsidiary or Subcontracting local company Manufacturing factories or Sweatshops Extract raw materials from resource rich areas Extract surplus from labour Household labour of the poor (low/no wage or slavery): Men, Women, Youth & Children Inequitable Impacts of global Commodity Chains on Children/youth workers: in the Periphery: Wilma A. Dunaway, Economic costs: • Negative impact of loss of education years on a country’s development • Country loses skill development in its future population Health costs • Children in hazardous work: Life span, health and welfare irrecoverably affected Social costs • Cycle of Poverty – destitution becomes endemic Canada: Core country’s children/youth: Most are higher or middle income classes (80% all children in Canada): • Children at school • Youth at school/work • Consumers: Conspicuous Consumption Canada: Child/youth are transformed into: • Conspicuous consumers (endless consumption) • Service sector commodities Conspicuous consumers Rich Kids for Romney http://www.youtube.com/watch?v=fit79MQwyeY 50sec 2012 • Creation of artificial wants • Persuaded to consume endlessly • Ads & Peer pressure lure the young Core’s Child/ Youth conspicuous consumption: manufactured and manipulated by: • Adult-led army of advertisers • Marketing consultants • Youth researchers Core: youth work is: • Low-end service work • Low in status, value and skill • Not “real” work • Corporations view youth work as hobby Consumerism - Commodification Link: • Circularity in youth employment Service sector employers: • Hire young workers because ‘youth’ sells product • Youth/child often is the real product being sold e.g.: Ads of child/youth in jeans or t-shirts, sneakers or snowboards, soft drinks or CDs • Youth as consumers e.g.: Retail and food service companies: Exploit the sexuality of young workers (esp. women) to attract customers and increase sales • Staff stores by hiring youth as workers with the right “look” • Hire by screening for an appearance, attitude and demeanor based on age, gender, race and class The company hires “brand representatives”: • Not cashiers or clerks • Exhibiting the “A&F Look” (to experience Abercrombie & Fitch stores) • Selling an experience for customer to experience again and again through the Brand Commodification of Youth Youth workers: • wear brand name perfumes as directed. But, in Starbucks: no colognes and perfumes – only the “romance of coffee” aroma • Faces freshly scrubbed with Body Shop Blue Corn Mask • • Apartments furnished with Ikea self-assembled bookcases and coffee tables Circularity in youth employment: • MNCs created mass consumerism (in post-WW II era) • Commodification of youth in mass advertising Demand for youth as service sector workers Canadian youth want stable economy: why? (Jobs & MNCs’ profits will remain stable) Globally Integrated conspicuous consumption • Kinko’s, Starbucks and Blockbuster clerks buy their uniforms of khakis and white or blue shirts at the Gap • “Hi! Welcome to the Gap!” greeting cheer is fueled by Starbucks double espressos • Résumés that got them the jobs were designed at Kinko’s on friendly Macs, in 12-point Helvetica on MS Word. . (Naomi Klein (1999) No Logo) Why Commodity Chains are created by global corporation? How does it work? • NDL: International division of labour (post colonial) • Endless accumulation: economic growth to maximize profits • Commodification of everything; • Global search for surplus extraction • Repeated cycles of innovation, change, and expansion • • Extraction of Raw materials (mostly from peripheries): Rubber, leather and plastic Extracted from places located in close proximity Household labour Women Youth Children Peripheral states: Subcontracts the production process: 900 contract factories Independent private contractors in China, Indonesia and Vietnam Vertically integrated model Sent to the factories or “Sweatshops” for manufacturing in the Periphery: In contrast, through poorly paid or unpaid household labour children/youth in the Peripheries are exploited through surplus extraction for profit for and consumption in the Core. In the Periphery, those children/youth who are from the rich and middle classes become comprador consumers. But most of the DWs’ children are absolutely poor and must work for their livelihood. Thus they become labour commodities Comprador consumers are the Periphery elites whose consumption patterns work against their own country’s interest but enrich foreign corporations. Peripheral states: MNCs’ Subcontractors (owner class): Upper income class (global Elite class) • luxury goods consumer household Rich Kids Gone Wild? http://www.youtube.com/watch?v=tW_VDMYxhvc 4.37 min 2011 Who made our shirt child lab in china http://www.youtube.com/watch?v=K2KCYsmWFP8 3min 2009 Educated & skilled workers: Middle income class (White or Blue collar) • Children & youth at school • Formal sector: Working men/women • Consumer household (beyond basic goods) Peripheral states: Lower income and Poorer classes: • • • • Working Men Working Children Working youth Working women Fourth World: Indigenous population: Social segregation & political disempowerment of the indigenous people • Unemployed & discriminated men • Children exploited in boarding schools • Culturally alienated youth • Working and abused women Child/youth Poverty in Peripheral countries: International Labor Organization (ILO) reports: 2010 Global total of Children (age 5-17): 1.586 billion 20 mil. more than in 2004 (1.3% increase) In the Developing World (2010): Working children. (age 5 - 17): 306 mil. Child labour (5-17): 215 million source ILO: http://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/publication/wcms_12675 2.pdf Source for 2004: http://www.ilo.org/global/Themes/Child_Labour/lang--en/index.htm Child labourers are defined as those: • Under the minimum age for work, or • Engaged in work that poses a threat to their health, safety or morals, or are subject to conditions of forced labour. Source: http://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/publication/wcms_ 126752.pdf Child Labour: Breaking the Cycle of Poverty 2010 (5 min) http://www.youtube.com/watch?v=B1cZFgJwzYM *Child Labour http://www.youtube.com/watch?v=ruh0O_mj1v0 5.20min 2006 Children in hazardous work: 115 million 2004 - 2010: 20% Increase in child labour in the 15-17 years age group: (from 52 million to 62 million) http://www.ilo.org/wcmsp5/groups/public/---dgreports/--dcomm/documents/publication/wcms_126685.pdf http://www.hrw.org/children/labor.htm 2004 Why is child labour bad for the children? • Four-year-olds tied to rug looms to keep them from running away - Working at rug looms, for example, has left children disabled with eye damage, lung disease, stunted growth, and a susceptibility to arthritis as they grow older • Work prevents the child from going to school • Work long hours, often in dangerous and unhealthy conditions, are exposed to lasting physical and psychological harm … bad for children: • Children work for too many hours and too many days, for too little, or no pay • subject often to physical abuse • exposed to dangerous pesticides • work with dangerous tools What did World Bank and the Swiss Agency for Development and Cooperation do? • financing sericulture projects dependent on child labor ( Human Rights Watch, 2004) Children making silk thread in India • dip their hands into boiling water that burns & blisters • breathe smoke and fumes from machinery handle dead worms that cause infections guide twisting threads that cut their fingers Children harvesting sugar cane in El Salvador: • use machetes to cut cane for up to nine hours a day in the hot sun • injures their hands and legs • medical care often not available 1999-2004 http://www.unicef.org/publications/index_30398.html Child Poverty in Canada LIC: Low income cut-off LIM: low income measure http://www.statcan.gc.ca/pub/75f0002m/2012002/lico-sfr-eng.htm 2011 Report Card on Child and Family Poverty in Canada Child/youth Poverty in Peripheral countries: International Labor Organization (ILO) reports: 2010 Global total of Children (age 5-17): 1.586 billion 20 mil. more than in 2004 (1.3% increase) In the Developing World (2010): Working children. (age 5 - 17): 306 mil. Child labour (5-17): 215 million http://www.ilo.org/wcmsp5/groups/public/@dgreports/@dcomm/documents/publication/wcms_ 126752.pdf Source for 2004: http://www.ilo.org/global/Themes/Child_Labour/lang--en/index.htm % Children in Poverty in OECD: Impact of State’s decline? (2000) Poverty Poverty Poverty http://www.tagg.org/rants/OECDChildPov.html INDIA (2004): • Conditions of ‘real’ poverty (worse than ‘monetary’ measure) – 26% of children are education poor; (cf. 52 % of adults) – 70% of children <13 years old are undernourished, 44% severely; – 7% of individuals aged 7 to 59 suffered from chronic illness. hdr.undp.org/.../presentations/2004/topic_3/Approaches%20to%20Measuring%20poverty,%20Fr ances%20Stewart.ppt PERU: (2004) • Condition of poverty (better than monetary measure) – 7 % of children are education poor.(cf. 20 % of adults – 29 % of children < 5 years were undernourished. (10 % of adults were health poor). hdr.undp.org/.../presentations/2004/topic_3/Approaches%20to%20Measuring%20poverty,%20Fr ances%20Stewart.ppt