The vicious cycle: Jordan’s sweatshops & the USFTA
May 5th, 2006Natasha’s recent highlight of the situation in Jordan’s QIZs really hit home with me. Working for some while at The Jordan Times and dealing regularly with features and stories about the creation of the QIZs and the hopes that those involved had, I worried then that what has come to pass, would come to pass. Those of you familiar with Naomi Klein’s No Logo [this FAQ has some excellent ’sweatshop’ tidbits] have doubtless recognized many of the key issues with Free Trade Zones and QIZs in Jordan. The US of A seems to be doling out these free trade zones all over the globe. So what do these zones and the Free Trade Agreements (FTA) do? Well, look at Jordan. While some of those inside these zones are Jordanian businesses, many are not. These “outside” businesses come to Jordan for cheap labor and to take advantage of the low/zero import duties to the almighty US market.
Does it benefit Jordan? Well, that is a long debate. What you can see clearly and easily is that the awarding of free trade zones allows multinational corporations to go around the world and cherry pick little constituencies that have cheap labor for the production of their goods. In essence, the US opens the doors to cheap labor in some of these countries and puts a good spin on it with the “FTA” moniker — breaking down the resistance that was growing in areas where there was no US cover, like Bangladesh and the Philippines. So, these factories pump out the Land’s End, the Victoria’s Secret and the rest of it on the backs of people that — even with the increase in the minimum wage — still make less than $200 a month!
Just think of the connections here. The US wants to help business, so it opens FTA zones in areas where there is ample cheap labor plus these companies don’t have to pay any import duties, allowing them to have the best of both worlds: They don’t have to pay a living wage but they also don’t have to pay import duties for using developing world labor. It’s a pretty twisted system. And, there’s more to this still.
While I know in a number of instances Jordan is working hard to improve some of these circumstances — through work programs that train and get more Jordanian labor involved — but the wages still suffer. And as the article illustrates, in the interim a little cottage industry has sprung up importing the world’s cheapest labor to fill the bill. I think the end plan from Jordan’s perspective is to get rid of the imported labor and only use domestic. Natasha wrote about this once before and I’d remarked then about the curiuos social changes that might come of this, as young girls move into dormitories and become their family’s primary breadwinner.
The bottom line remains, whether it’s the poor, abused “guest” workers, or whether it’s the Jordanians that one day may replace the whole of them, the wages being paid are far from fair. And the blame does not rest solely on the shoulders of the multinational corporations that exploit this system, or the US and it’s FTA. It’s also partly on those that purchase the products and continually press for cheaper prices and a continuing upward trend in corporations’ profits; the stock must rise. As we press for more cheap goods and pack Wal-Marts, Targets and Carrefour’s buying these goods, we are creating a huge press for cheap, exploited labor. It’s a vicious cycle.
I only hope to see Jordan slowly press out the imported labor, to integrate Jordanians into the ownership process and to slowly watch the unions do what they can — and do in many instances — and press for wages and benefits that jibe with the cost of living in the kingdom. Natasha posted recently that Amman was one of the most expensive cities in the Arab world. Imagine! This goes on while some Bangladeshi or some Jordanian is slaving away in a factory making crap for Wal-Mart for either a few dollars a day, or in some of the cases highlighted by the NY Times — nothing! I’m not sure how this “system” got its roots but after living in the Gulf for a while, I think I see where some early seeds were sown. The WaPo’s Anthony Shadid has written two wonderful articles examining similar issues in Dubai here and here.
It’s been a bit since the last entry. Sorry. But it’s been busy around here. And it only makes sense that it’d be a film that motivates a posting. I promise more meaty posts in the future. Actually,
The scenes out of Beirut are heart-breaking. It was just over one year ago that, for the first time, I walked those same sidewalks with my new bride as we were toured about by my brother and sister-in-law. Both the wife and I just love Lebanon. It is such a beautiful country with such tremendous people. I’m sitting here today aghast, watching the most terribly complete coverage from Lebanese networks like “New TV” and “LBC” that are providing open, un-cut coverage with live mics of the tragedy. It reminds me of the spooky Russian coverage (received via satellite TV) of the Beslan massacre aired as the terrible events unfolded. 
