Friedman (2005) contends in his
book, The World Is Flat, that economic development in today’s
society is the embracing of globalisation to increase the financial status of
the country as a whole. The overall standard of living increases and corporations
are expecting higher revenues. As much as globalisation promises an increase in
opportunities and platforms for engagement, some argue that it leads to
exploitation in several developing countries, thus widening the income gap
between the rich and poor. However, several solutions have been proposed in the
recent years, from both the government and the society which include
alleviating corruption and garnering support from the community.
The rapid economic development
throughout the world catalysed by globalisation has resulted in income
inequality (IMF, 2007). Rich enterprises from
the developed countries have located their factories in developing countries to
reduce cost and increase productivity, especially in China and India where
labour cost is one of the lowest in the world. As such, the salaries of these
workers are also, at the very minimum. Tilly (2010) states that Nike, one of
the most well-known sportswear apparel, has been guilty of paying their workers
less than thirteen cents to twenty cents per hour, thus adding to a total of
about two dollars per day. They are forced to work long hours, ranging from
nine to thirteen hours per day and six days a week, and can be fired if their
performance is unsatisfactory. The workers do not have a reliable labour union
to request help from as most of them are managed by corrupted governments. Lu
(2000) suggested that corruption by graft is the most prevalent in China.
Officials in the local province accept gifts and fancy banquets invites from
corporations who want to set up factories. The government may return the favour
by dismissing the accusation on the abuse of labour that the company may alleges
in. These practices in China are rampant and are bringing harm to its people.
The recent change in the central government has brought a new era in combating
corruption as they are prepared to expose these corrupted
officials. Their determination can be seen from the recent corruption graft of
Bo Xilai, an ex-mayor of Dalian province, who was sentenced to life
imprisonment (BBC, 2013). The severity of the punishment acts as a deterrence
to other officials from committing such insidious act. Its effectiveness has
been questioned as reports suggesting that the central government takes at
least eight years to uncover a corruption plot in which evidences can be
destroyed in the process. The government must take a firm step into combating
corruption by directing ample resources to these areas which include establishing
an anti-corruption department to tackle these issues. They can learn from
countries with low corruption rates like Singapore and Denmark on the necessary
policies they can apply to eradicate corruptions. Furthermore, the government should
start by adjusting the salaries of their officials because The International
Business Times (2013) reveals that President Xi Jinping receives a mere monthly
salary of ten thousands yuan, or just nineteen thousands (USD) a year. Being
one of the lowest in Asia, the amount of salary may be the root cause of the
problem as the amount of bribe presented to them are substantial and it is not
easy to reject them. Therefore, it is justifiable to increase the salaries of
their officials to combat corruptions. These allow the people to better life because
they are being treated equally and fairly, and thus reducing the income gap
between the rich and the poor.
Another solution will be to
introduce the power of the Internet to stop the exploitation of the workers in
the developing countries (Action For Our Planet, 2013), since the Internet has
enabled easy access to news and report articles. Reports on locals being
exploited by these companies can be ‘shared’ on social media such as Facebook and
Twitter to boycott purchases. It is effective to a certain extent as the
bargaining power of the consumers cannot be neglected by the Multi-National Corporations
(MNCs). However, the ignorance of the public can be worrying. Even though
reports on Nike abusing the workers in China were uncovered, it is still one of
the top-selling companies in the world, thus showing that people still
prioritise their wants more than how the product is being manufactured. People
must have the determination to reach a firm stand and stop buying from them. In
addition, by setting up a website so that news and reports can be accessed easily
helps to raise awareness of the society and ensure unlawful companies are being
exposed of their illegal marketing gimmicks, provided that the reports are factual
and objective in nature.
In conclusion, the twin failures
of the state and the companies have resulted in the widening of income gap
between the rich and the poor. The state has more responsibilities than the
community in balancing capitalism and the welfare of its citizens by weighing the
pros and cons of its measure. Globalisation will then be ensured that it is
more of boon than bane to people.
References:
Friedman,
T. (2005). The World Is Flat. United
States.
IMF.
(2007). Chapter 4: Globalisation And
Inequality. Retrieved from http://www.imf.org/external/pubs/ft/weo/2007/02/pdf/c4.pdf
Tilly,
C. (2010). Confronting Globalisation:
Lessons From Puebla. Retrieved from
http://www.irle.ucla.edu/contact/pdfs/TillyCV-111.pdf
Lu,
Xiaobo. (2000). Cadres and Corruption.
Stanford University Press.
Song,
S. (2013). China’s President Xi Jinping
Makes Just $1, 600 A Month. Retrieved from http://www.ibtimes.com/chinas-president-xi-jinping-makes-just-1600-month-1180885
BBC. (2013). Bo Xilai
Scandal: Timeline. Retrieved from http://www.bbc.co.uk/news/world-asia-china-17673505
Action For Our Planet. (2013). Unethical Companies. Retrieved from http://www.actionforourplanet.com/#/unethical-companies/4540107786
