Does Inequality Matter? - CEPA

Good Practice in Poverty Measurement
TAMING THE CORPORATE BEAST: CULTIVATING SOCIAL
JUSTICE INITIATIVES FOR A MORE INCLUSIVE TRADING
FRAMEWORK TO FLOURISH
“…transnational corporations and other business enterprises, as organs of
society, are also responsible for promoting and securing the human rights
set forth in the Universal Declaration of Human Rights…” (UN Economic
and Social Council 2003)
1 Introduction
Countries in South Asia are entering into free trade agreements to build
their trade repertoires and access larger markets. However, large-scale
producers and Multi-National Corporations (MNCs) dominate global
markets, making it more difficult for small-scale farmers and producers
to determine the terms, conditions, and pricing of goods within their
countries’ trading system. Under the current neo-liberal market framework,
small-scale growers have difficulties accessing larger and export-oriented
markets. Constrained access further impedes their ability to demand a fair
price, and lack of a guaranteed fair pricing system compounds problems
of poor wages and labour conditions. To ensure that everyone benefits
from economic growth, present trade systems must offer space for
people, living in poverty or socially marginalised, to become part of the
decision-making processed that set the trajectory for positive, sustainable
development.
First, the paper discusses shortcomings of the current neo-liberal paradigm,
which underline the collapse of the World Trade Organisation (WTO) Doha
Development Round and the difficulties in achieving human development
objectives. This section also examines how the multilateral trading system
constrains policy space and impedes access to markets in the agricultural
sector for developing countries, contributing to poverty and vulnerable
livelihoods. It assesses the frenzy of free trade agreements and how
distorted support disadvantaged small-scale producers.
Next, examples from Bangladesh, Bhutan, India, Maldives, Nepal and Sri
Lanka explore ways that governments and non-state actors have tried to
facilitate a more social economically just framework that is participatory
and embodies fair trade, cooperativism and environmental sustainability
principles. CSR ethical consultation for resources and benefit-sharing are
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