Rutgers Model United Nations 2 - IDIA
Rutgers Model United Nations 15 ways of applying FDIs. 46 While the WTO simply manages multilateral negotiations among member states, NGOs such as Global Hand actively participate in streamlining trade on a grassroots level. NGOs provide the education, human resources, and logistical expertise that LDCs so often lack in setting up a self-sufficient trade network. While NGOs have little say in the reduction of tariffs and NTBTs, they are active advocates for trade liberalization. They often act as an information database; a database without which the WTO along with the LDC policy makers would not be able to implement relevant changes to the existing and future FTAs. An example of local integration is the work done by Feed the Nation-Uganda, an NGO focused on bringing the WTO's "aid for trade" strategy to the local communities of Uganda. 47 By setting up workshops that target women and local youth, the NGO introduces the importance of trade development in these impoverished communities. By instilling the fundamental benefits of free trade, and setting up fledgling regional trade networks, Feed the Nation- Uganda is actively promoting development in otherwise overlooked regions of the world. The focus of NGOs in LDCs is fostering cooperation and compromise between the local producers, government policy makers, and eventually consumers. Currently, NGOs face challenges in financing their operations, and are constantly under scrutiny of the governments they work with, who consider some of their actions as infringement on their national sovereignty. 48 Possible Causes Inexpensive Labor in LDCs Trade protection in both developed and developing nations can be attributed to the fact that LDCs tend to have, on average, a significantly lower cost of labor than in developed nations. This is a result of a multitude of factors, however the primary reasons 46 “Global Hand: About." Web. 29 Feb. 2012. . 47 “Feed the Nation : About." Welcome to Feed the Nation Uganda. 2011. Web. 29 Feb. 2012. . 48 "Non-Governmental Organizations (NGOs)." Funds for NGOs. Web. 29 Feb. 2012. .
Rutgers Model United Nations 16 are substandard employment conditions and unfairly low wages. 49 For example, according to the International Labor Organization (ILO), the average wage of workers officially employed in LDCs is roughly eight to nine times less than the wages of workers in comparable employment throughout the rest of the world. 50 Generally, the employment conditions for the workers are also below the appropriate standards set by the ILO. A prime example of these conditions is the infamous scandal of 1996 and 2008 during which the sportswear manufacturer Nike was accused of employing children for extended periods of time in hazardous conditions. 51 The low wages coupled with the poor working conditions allow multi-national corporations (MNCs) to drive down the costs of manufacturing goods in LDCs, as compared to developed nations. MNCs are able to offer their goods to consumers in developed nations at a lower price than their competitors, yet more often than not, the developed nation raises the price of the imported goods to one that is competitive with domestic merchandise. 52 Eventually, the LDCs see little of the profit from their competitively priced goods, and the MNCs along with the developed nations' governments reap the benefits of inflated prices. Along with manufactured goods, cheaper agricultural products play a key role in trade protection. A workforce that is willing to work for lower wages and for longer hours presents an inherent competitive advantage to the agricultural sector of LDCs. In order to protect their domestic agricultural sector, developed nations implement the aforementioned NTBTs and tariffs. In a hypothetical scenario, the revenue from the exported agricultural goods produced at a more competitive price than in developed 49 Krugman, Paul. "Bad Jobs at Bad Wages Are Better than No Jobs at All." Slate Magazine. Web. 07 Mar. 2012. . 50 "Free Trade Agreements and Labour Rights." ILO Statistics. Web. 07 Mar. 2012. . 51 “Oxfam Australia." Forced Labour by Nike Supplier. Web. 07 Mar. 2012. . 52 MNCs Impact on Labour Conditions in Developing Countries. University Of Applied Sciences. Web. 07 Mar. 2012. .