Cheap Labor Dependency - 1st to 3rd World

Suffering in the developing, "non-industrialized", Thirdlending organizations such as, the International
World is often referred to as a product of theMonetary Fund (IMF) and World Bank for loan
"capitalist industrialized" First World's promotion ofassistance. As a condition of loan repayment, free
neoliberalist ideals and consumption patterns. Thesemarkets were encouraged. This new market system
patterns reinforce an uneven dependency relationshipallowed revenue from foreign investors to dominate
between producer and laborer, whereby the first worldthe domestic market. This dominance made Mexican
continually exploits the third word for its cheap laborgovernment and people dependent on the outsiders
resources. Neoliberalism refers to a political movementfor capital and economic growth. Dependence on
that advocates economic liberalism as a means ofoutside markets makes these countries economies
promoting economic development and securing politicaland ways of life susceptible to changes in the demand
liberty. Standard neoliberalism policy includes cuttingfor their products in the foreign market as well as to
back on taxes and government social spending;the strict contractual demands of maquiladora owners.
eliminating tariffs and other barriers to free trade;Environmental and class changes similar to the ones in
reducing regulations of labor markets, financial markets,Youngstown, USA took place during maquiladora
and the environment; and focusing macroeconomicproduction in the frontier region of Mexico (and other
policies on controlling inflation rather than stimulating theCentral American countries); one of the many
growth of jobs. It promotes low wages and highalternative labor sites for US and Western European
inequality through tactics such as anti-unionism.based companies. However, unlike the Youngstown
Dominant groups grounding of globalization andexample, Central American workers negotiation for
development in theories of neo-liberalism encouragesbetter conditions and increased wages has been
this relationship of power and control. Neo-liberalismlimited. Central American workers were limited by their
makes present economic growth more important thanlack of a protective government. In this instance,
long-term development of infrastructure. Thisfactories could simply fire the striking workers and hire
interpretation of neo-liberalism ignores the developmentnew employees. Without the influential support of
of necessary infrastructure for a country or region topowerful governments, workers took to militant
sustain itself. The illusion of progress and growth inunionization to demand their rights to secure jobs and
concentrated areas masks large-scale economicbenefits. While these unions did win their fight, it was at
frustrations and income gaps.the expense of pay and benefits, both of which
Capitalist industrialization and associated factorydecreased.
production severely alters the natural environment ofThis dependence on foreign market consumerism still
any place it encounters. Through this environmentalexists today. The United States and other dominant
alteration, we are able to determine a number of thingsWestern countries have the advantage of being able
about the community, such as, the importance of work,to find other areas to cultivate their products and
and even class divisions. In Youngstown, Ohio, USA,countries to produce a labor force. In addition, today's
steel mills and mines were erected over the once richproducers must now combat trade laws making it
natural farming land. As the environment changes fromharder for them to sell in foreign markets. Fluxes in the
one that is natural to one that is manmade, class levelsmarket and changes in trade policies of various
are constructed through division of labor based on skill.countries dramatically affect smaller nations who can
These classes further divide when individuals are ableno longer rely on their traditional form of subsistence. In
to afford to live in alternative areas. In 1937, themany places where factory work could count for up
workers embarked on a strike to improve and regulateto 1/3 of the jobs, fluxes could have dramatic affects
working conditions. This strike required them all to workon the economy and well-being of the people.
together as agents in history. Despite losing the strike,As larger companies continue to outsource smaller
a 1942 committee, voted in support of the workerslocally owned farms, the population is becoming
rights. This committee acted on behalf of a then liberalincreasingly more reliant on selling labor to the
government seeking to be recognized as a resourcecompanies rather than goods buyers. The result of this
for the working populations of America. This liberal ideachange, to me, almost seems like a reversion to
of a government for the people is at the root of othercolonial era product production, with third world laborers
countries acceptance of the circumstances leading toproviding work at little to no cost to their western
globalization.markets. In order to stop this seemingly endless cycle
These same mills were subsequently evacuated andof dependence and destruction in the Third World, a
destroyed when cheaper labor could be found outsidecombination of actions is necessary from both
of the United States.consumer and producer. Many activists today highlight
Third world need for revenue and the United States'consumer purchasing of 'ethical products' as a method
desire for cheap labor facilitated the shift in locationof resolving the current problem, consumers need to
and unfavorable working conditions from the Unitedknow how the products they buy are created and
States to places, such as, Mexico and Centralthen they need to demand the proper condition
America. As third world countries, like Mexico, soughtthrough their purchase or boycott of associated
to release themselves from debt, they turned toproducts.