This is a brief overview of some of the concerns expressed in the labour movement, by NGOs and other progressive organizations about the present model of corporate (or neoliberal) globalization.
1. A School of Labour Workshop
Maureen Hynes & Kathryn Payne
mhynes@georgebrown.ca
kpayne@georgebrown.ca
2. Outcomes
Understand the evolution of “free
trade”
Recognize and describe the effects,
particularly local effects, of free trade
Identify the range of opposition
strategies in place around the world
Be familiar with further resources on
free trade & globalization
3. Defining globalization
Globalization is the world-wide integration
of finance, markets, production and the
management of labour.
It is a process by which large corporations
extend their domination of resources,
markets and labour…
… facilitated by governments and
international bodies such as the
International Monetary Fund and World
Trade Organization.
4. Origins of Free Trade deals
Post World War II: 1945 meeting at
Bretton Woods, New Hampshire, to
set up World Trade Organization
(WTO)
First purpose was to rebuild Europe
Later -- loans to developing countries
for infrastructure & militarization
High levels of interest charged to
countries in economic south
5. Context for current situation
Free trade deals enormously protested
(Seattle ’99, Quebec 2001, etc)
Failure of free trade deals because of
opposition by developing countries (e.g.
WTO)
Country-to-country deals (i.e. Canada and
Columbia)
Secret negotiations, inaccessible trade
tribunals, undemocratic processes
“Atlantica” and “TILMA” (Trade, Investment, Labour Mobility
Agreement)
Now, North American“Integration”….
6. “Deep integration”
Security and Prosperity Partnership
signed by Bush (U.S), Fox (Mexico) &
Martin (Canada) in 2005 with little publicity
Focused on “harmonizing” security, trade,
economic and resource policies
Massive standardization of health care and
environmental standards (cuts out 400
environmental laws)
Allows the 3 countries to negotiate as one
bloc in the WTO
“We’re becoming a bloc, like the EU, but
without the safety standards” (Barlow)
7. But…
There’s been no consultation, no public debate --
not passed by Parliament
It’s “a continental resource pact” -- electricity, gas,
oil, water, food safety, regulation of toxic
substances
Furthers the loss of control of our resources (like
softwood lumber)
Pushes towards privatization of health care
Compatible immigration security measures (i.e.
sharing Canadian’s data with US security)
The North American Competitiveness Council
(made-up of 10 CEO’s) has been asked to reduce
the 300 recommendations to 30 workable ones
8. Some key components
of corporate globalization
Privatization
Deregulation
Tax cuts then cuts to social services,
health care, education
Downward pressure on prices
Security and military expenses
Easy movement of capital, but
Restrictions on movement of people
(migrant workers = commodity)
9. Deregulation
Reduces the number of laws covering safety issues for consumers and
eases regulations for how industries do their work
Water – Walkerton
Cdn Food Inspection Agency & US FDA
Drug safety – Cdn Health Protection Branch
Federal Protections for Canadian Wildlife
Aviation safety
CanCon rules for satellite radio
Canadian Auto Pact (between US & Japanese
mfrs) signed in 1965, ended by WTO in 2000
Backing away from Kyoto Accord
Tuition fees deregulated!
10. Privatization
(Publically-funded and run resources are transferred to the private, for-profit
sector)
In Ontario there are now 25 “P3” (public-
private partnership) hospitals
A U.S. corporation built and ran a P3
superjail in Penetanguishene for 5 years –
study compared it to publicly-run jail found
public jail had better security, health care
and reduced re-offending rates.
Huge concerns about water being
privatized
11. Cuts to services
Employment insurance (from 75% of
workers covered in 1990 to only 37% in
2000)
Cuts to social assistance
School Board cuts
Cuts to federal funding for literacy
programs (9 million in Can. need literacy
help)
Eliminate national childcare program
Wildlife protection cuts, Sept 07
12. Downward pressure
on prices
Subsidies to farmers in the U.S. leads
to “dumping” of corn in Mexico
Slate mining in China and
Newfoundland
The Wal-Mart policy for suppliers
“Race to the bottom” for labour costs
– Increasing numbers of low-wage
jobs
13. Security &
military spending
Permanent residents’ card with
computer chips
Biometrics – voice, eyes, fingerprints
New role for Canadian military
Increased investment in military
hardware and war
14. Regulation of movement of people
Guestworkers – a growing global
presence (2003 ILO estimates: 120 million
worldwide)
India, Mexico, the Philippines:
“remittance” economies
Not just agricultural workers, but also
nursing homes, semi-skilled trades
But removing benefits and legal
protections for them (e.g., unions)
15. Corporate Globalization Links
Corporate monitoring:
Corporate Watch: monitors corporations actions, labour conditions and policies
http://www.corporatewatch.org.uk/
McSpotlight: critical of McDonalds and its clones
http://www.mcspotlight.org/
Philosophy behind Corporate Globalization:
Neoliberalism: very detailed, interesting take on what neoliberalism is
http://www.globalissues.org/TradeRelated/FreeTrade/Neoliberalism.asp
Re: the Trilateral Commission (international business interests): a bit extreme, but with
good links
http://www.trilateral.org/about.htm
Global Financial Institutions and Agreements pushing neoliberalism:
The Global Exchange: great US-based information on WTO, IMF and WB, Trade
Agreements
http://globalexchange.org/campaigns/index.html
The Bretton Woods Project: critical of World Bank
http://www.brettonwoodsproject.org/index.shtml
16. Alternatives to Corporate
Globalization
Alliance for Responsible Trade: information on A People’s Trade Agreement
http://www.art-us.org/Peoples_Trade
Canadian NGO’s (Non-Governmental Organizations):
Council of Canadians: non-governmental trade watchdog
http://www.canadians.org
Maquila Solidarity Network: works to improve conditions for workers in maquiladoras
http://www.maquilasolidarity.org/
Kairos: Ecumenical social justice organization
http://www.kairoscanada.org/e/economic/index.asp
Inter Pares: Canadian social justice/development organization
http://www.interpares.ca/en/what/democratic.php
Common Frontiers: Canadian coalition that works around trade issues in the Americas
http://www.commonfrontiers.ca/
Labour:
Canadian Labour Congress: umbrella organization of Canadian unions
http://canadianlabour.ca/en/welcome
