Transfer of industries to low-wage countries

Displacement of employment opportunities to low-cost countries

Nature

Many commercial organizations are continually looking around to see if off-shore production can increase their profitability. This can result in exploitation of unprotected workers in low wage countries and abandonment of economies and workers in the countries they depart from.

Incidence

Between 1990 and 2010, the transfer of manufacturing industries from high-wage countries to low-wage countries accelerated, particularly in sectors such as textiles, electronics, and automotive. According to the International Labour Organization, over 20 million manufacturing jobs were lost in developed economies during this period, while countries like China, Vietnam, and Bangladesh saw significant increases in industrial employment and export volumes, reflecting a global shift in production.
A notable example occurred in 2001, when Levi Strauss & Co. closed its last U.S. sewing plants in San Antonio, Texas, relocating production to Mexico and other lower-wage countries, resulting in the loss of approximately 3,600 American jobs.

Claim

The transfer of industries to low-wage countries is a critical issue that undermines local economies, exacerbates unemployment, and perpetuates global inequality. This practice prioritizes profit over people, leading to the exploitation of vulnerable workers in developing nations while hollowing out communities in developed countries. We must confront this trend, advocating for fair labor practices and sustainable economic policies that prioritize ethical production and equitable growth, ensuring that all workers are treated with dignity and respect.

Counter-claim

Most reductions in available jobs and cuts in wages arise because of technological improvements and a change of organizational ethos that are much more to do with competition with and between rich countries than between richer and poorer countries.