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Exploiting Cheap Labor Decreases Poverty - Opinion
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by Babel-Fish | April 9, 2008 at 04:37 pm
1129 views | 22 Recommendations | 16 comments
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Through out the so called Third World, many people live in poverty, derogation and misery whilst seemingly no one that has a good job and lives in relevant luxury really cares about until they are shocked by a few media reports. When this poverty related problem occurs, the normal life span of the shock lasts a few weeks or so, then mainly forgot. Some people think that their charity helps make the problem go away or helps in a big way.
Actually the best cure for poverty as been proven, to be the exploitation of cheap labor. One only has to look at the events, that have taken place in China, in the last 25 years. Poverty has defiantly been cut thought it still exists there, India soon caught on the idea, but they have moved at a slower pace. This being due to local corruption and internal troubles that scare big business and investment away. However, cheap labor has brought some success to those that live in the region of the foreign investment.
The Philippines is renown for its overseas workforce especially those seafaring Filipino’s work on many ships that ply the world sea lanes. Though the Philippines has attracted foreign investment, the political situation and corruption has frighten international corporations away. As much as 15% of all investment ends up in crooked government officials pockets, mainly in bribes. However there has been some improvement to poverty, but poverty expands very quickly due to lack of birth control and a Church that seemingly wants it to remain so.
Cheap labor does not mean paying the workforce low wages or that the workers are living on a bowl of rice each day. In fact most companies pay their workforce well suited to the local economy. This means that working parents can afford to send all their children to school to achieve a good education so they in turn can get a good or acceptable job when they become adults. The taxes from the workforce and the business help improve the countries infrastructure its economy and to employ more teachers etc.
The problems caused by outsourcing are apparent loss of jobs in the mother country, but the people that do lose jobs mostly find new occupations or never normally end up living in such poverty found in the third world, but they do end up as the collateral damaged.
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Babel-Fish
Negros Oriental, Philippines
Most RecentMost Recommended Comments (16)
at 16:44 on April 9th, 2008
Babel-Fish, I like this story. It's good stuff. Interesting way to solve poverty, that's for sure.
at 17:11 on April 9th, 2008
I tried to show the overside of the coin concerning outsourcing here in the philipinnes call centers are creating well paid jobs. But the main out sourcing has always been the Filipino workforce that work on many ships as cheap labor, all over the globe these sailors are sending home pots of gold to help their families get out of poverty. There kids go to good schools and they prop up a poverty ridden ecconomy.
at 17:45 on April 9th, 2008
It's just sad they they have to work away from home in order to provide for their families.
at 18:35 on April 9th, 2008
That is one sad problem as families do breakup because one partner finds another lover, however most of these overseas workers aim at only being away for the time it takes to buy a lot, build a house and start a business. That could take up to 5 to 7 years or so.
at 16:45 on April 9th, 2008
Babel-Fish, What we in the west regard as "low paid" could be regarded as "well paid" in other countries .
at 17:34 on April 9th, 2008
Thats a fact, however I have seen lies from the oponents of outsourcing, where they state that the cheap laborers being outsourced are paid very low wages. An bank or business excutive here gets paid 30,000 peso, call center personel about 20,000 to 25,000 peso. Normal wages for Filipinos are about 4000 to 10,000 peso's a month. It makes a big difference here. However I do feel sorry for those in the outsourcing mother country that lose jobs and have to find other sources of income.
at 17:35 on April 9th, 2008
I feel it is better to help people work their way out of poverty than just give aid, but in doing so it means that jobs at home can be lost. Comes down to a choice do with give aid or jobs, if it was me I would rather have a job than rely on aid.
at 18:07 on April 9th, 2008
I agree. "Give man a fish and you feed him for a day. Teach him how to fish and you feed him for life."
at 18:38 on April 9th, 2008
that good Filipino logic, and it works
at 20:35 on April 9th, 2008
Unfortunately "the teach him how to fish theory" in third world countries isn't as effective than give a Child Soldier a AK-47 and he can take anything he damn well wants.
at 20:45 on April 9th, 2008
I don't fully agree on this...maybe it happens only in utterly desperate circumstances. I believe people are naturally good in that they would choose right over wrong when given the choice.
But then again, nothing's black nor white in this world nowadays... so what is "right" and "wrong"?
at 18:10 on April 9th, 2008
My future plans are related to just that, my partner is being funded to start small businesses such as barbecues and making ethnic jewelry. This will create employment and the profits will be used to extend the project. Eventually she will hand over the small businesses to those she employs. Once they prove to be capable to run the business.
At present the money I make on my art and on the internet is placed in a fund to buy wheel chairs for those that can not afford them here. I have many friends here that are doing similar things, what we do is small but it makes a difference to peoples lives.
at 17:22 on April 9th, 2008
Please check out the video's I could not resist in placing two comical ones to brighten your day.
at 18:04 on April 9th, 2008
Babel-Fish, I like this story. It's good stuff. Then again, the flipside to this is the appalling work conditions.
South Korea's Hanjin (shipbuilder) built a facility near Subic (former US Naval base) in Zambales, about 200 kilometers from Manila. In a short span of two years, there have been half a dozen reports of work-related deaths, mainly due to laxity in safety precautions.
However, I was able to talk to a former fisherman, now plying the tourism trade as boatman, who used to work for Hanjin and I gathered from him that having to earn a day's living far outweighed the dangers of their work environment. So I guess... touche.
at 18:28 on April 9th, 2008
Yes I know about this problem but the safety and work condition problem is to do with a lack of good inspection and implementing the existing laws by the authorities here. The Korean's are know to exploit the lack of government care, thought this is not the case with many Japanese companies that set up a manufactoring base here. I have visit a few of them and the work and safety conditions are great.
Safety and work condition checks should be done at least 5 or 6 times a year and they should be a random occurance not planned with the companies. I am pleased to note that the local officals here in Sibulan do a thorough check on my rented accomodation each and every year evidently. I am actual supplied a fire extiquisher and iron bars by the owner to break windows in the case of fire. I was here at the last inspection they where very thorough.
When I lived in Cebu for 7 years I never see one inspection however that may be because the owners of the property I rented had no business licence, which of cause is illegal.
at 03:49 on April 10th, 2008
Babel-Fish, I like this story and comments. It's good thought provoking stuff.