"Fair Trade" Crushes the Poor
By: Nicholas D. Kristof
New York Times | Monday, February 02, 2004
PHNOM PENH, Cambodia -- I'd like to invite Richard Gephardt and the other Democratic candidates to come here to Cambodia and discuss trade policy with scavengers like Nhep Chanda, who spends her days rooting through filth in the city dump.
One of the most unfortunate trends in the Democratic presidential race has been the way nearly all of the candidates, including Howard Dean, the front-runner, have been flirting with anti-trade positions by putting the emphasis on labor, environmental and human rights standards in international agreements.
While Mr. Gephardt calls for an international minimum wage, Mr. Dean was quoted in USA Today in October as saying, ''I believe that trade also requires human rights and labor standards and environmental standards that are concurrent around the world.''
Perhaps the candidates are simply pandering to unions, or bashing President Bush. But my guess is that they sincerely believe that such trade policies would help poor people abroad -- and that's why they should all traipse through a Cambodian garbage dump to see how economically naïve these
schemes would be.
Nhep Chanda is a 17-year-old girl who is one of hundreds of Cambodians who toil all day, every day, picking through the dump for plastic bags, metal cans and bits of food. The stench clogs the nostrils, and parts of the dump are burning, producing acrid smoke that blinds the eyes.
The scavengers are chased by swarms of flies and biting insects, their hands are caked with filth, and those who are barefoot cut their feet on glass. Some are small children.
Nhep Chanda averages 75 cents a day for her efforts. For her, the idea of being exploited in a garment factory -- working only six days a week, inside instead of in the broiling sun, for up to $2 a day -- is a dream.
''I'd like to work in a factory, but I don't have any ID card, and you need one to show that you're old enough,'' she said wistfully. (Since the candidates are unlikely to find the time to travel to the third world anytime soon, I put an audio slide show of the Cambodian realities on the Web
for them at www.nytimes.com/kristof.)
All the complaints about third world sweatshops are true and then some: factories sometimes dump effluent into rivers or otherwise ravage the environment. But they have raised the standard of living in Singapore, South Korea and southern China, and they offer a leg up for people in countries like
''I want to work in a factory, but I'm in poor health and always feel dizzy,'' said Lay Eng, a 23-year-old woman. And no wonder: she has been picking through the filth, seven days a week, for six years. She has never been to a doctor.
Here in Cambodia factory jobs are in such demand that workers usually have to bribe a factory insider with a month's salary just to get hired.
Along the Bassac River, construction workers told me they wanted factory jobs because the work would be so much safer than clambering up scaffolding without safety harnesses. Some also said sweatshop jobs would be preferable because they would mean a lot less sweat. (Westerners call them ''sweatshops,'' but they offer one of the few third world jobs that doesn't involve constant
In Asia, moreover, the factories tend to hire mostly girls and young women with few other job opportunities. The result has been to begin to give girls and women some status and power, some hint of social equality, some alternative to the sex industry.
Cambodia has a fair trade system and promotes itself as an enlightened garment producer. That's great. But if the U.S. tries to ban products from countries that don't meet international standards, jobs will be shifted from the most wretched areas to better-off nations like Malaysia or Mexico. Already there are very few factories in Africa or the poor countries of Asia, and if we raise the bar higher, there will be even fewer.
The Democratic Party has been pro-trade since Franklin Roosevelt, and President Bill Clinton in particular tugged the party to embrace the realities of trade. Now the party may be retreating toward protectionism under the guise of labor standards.
That would hurt American consumers. But it would be particularly devastating for laborers in the poorest parts of the world. For the fundamental problem in the poor countries of Africa and Asia is not that sweatshops exploit too many workers; it's that they don't exploit enough.
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