Posts Tagged ‘Supply Chain’

The virus and the world food supply chain

September 2, 2020

The fight against the coronavirus has resulted in collateral damage to world food supplies.  Or rather it has revealed underlying weaknesses in the world economic system.

The world produces enough food that no-one need go hungry.  An expert quoted by National Public Radio said average world food prices are lower than they were a century ago, despite the huge increase in world population.

The question is how to get the food to those who need it and who pays for it.  There is nothing in the nature of things that makes this impossible, but only the structure of the world economy.

LINKS

‘Instead of Coronoavirus, the Hunger Will Kill Us’; A Global Food Crisis Looms by Abdi Latif Dahir for the New York Times.

COVID-19 pandemic leads to huge spike in world hunger by Kevin Martinez for thr World Socialist Web Site.

COVID-19 risks to global food security by David Laborde, Will Martin, Johan Swinnen and Rob Vos for Science magazine.

Globalization and the world slave work force

October 23, 2013

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About two-thirds of the world’s estimated 29.8 million slaves are forced laborers, working for private employers to supply materials and components for products sold in world markets.

Tim Fernholtz of the Atlantic gave some examples.

This summer, an Australian man imprisoned in China reported that prisoners were making headphones for global airlines like Qantas and British Airways. Some 300,000 sets of the disposable headphones were made by uncompensated prisoners who were forced to work without pay and regularly beaten. The index says that there are about 3 million slaves in China, in state-run forced labor camps, at private industrial firms making electronics and designer bags, and in the brick-making industry.

Companies like Apple, Boeing and Intel—among thousands of others—have been under pressure to document that the tin, tantalum, tungsten, and gold they use aren’t being mined by slaves in the Democratic Republic of Congo, where a civil war has led armed groups seeking funding to force civilians to work. The U.S. Securities and Exchange Commission adopted a rule forcing American firms to trace the minerals they use to their origins, and while business lobbies have sued to overturn it, industry leaders have begun planning to file the first required reports in May 2014.

In the Asian seafood industry, migrant workers may become forced laborers who harvest and prepare mackerel, shrimp and squid bound for markets around the world.

Côte d’Ivoire is the world’s leading supplier of cocoa—some 40 percent of the global supply—and much of it is grown and harvested by some children engaged in forced labor. In 2010, Côte d’Ivoire said 30,000 children worked on cocoa farms, although Walk Free’s index estimates as many as 600,000 to 800,000. While this has been widely reported on since 2000, and the global response has been strong, compared to that of other allegations of forced labor, the problem has not really been solved. As of 2012, 97 percent of the country’s farmers have not participated in industry-sponsored campaigns against forced child labor. Mondelēz International, the world’s largest chocolate producer, which owns brands such as Milka, Toblerone and Cadbury, has struggled for years to take forced labor out of its supply chain. It committed $400 million to a program aimed at creating a sustainable cocoa economy last year, but its efforts have been ineffective so far.

The best way for us Americans and citizens of other wealthy countries to promote freedom and democracy is to stop our corporations and governments from supporting slavery and autocracy.   This seems do-able to me.

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U.S. corporate profits and Chinese sweatshops

September 17, 2013

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Costs and profits for Apple’s i-Phone

Defenders of sweatshop conditions in China say that low wages are the result of the impersonal workers of a hypothetical free market.  But a recent study (links are below) shows the real cause is the structure of the supply chain linking components producers such as Foxconn to customers such as Apple Computer.

When I hire a painter to paint my house, and he hires a helper, the free market works the way it ought to work because there is a rough equality of buying power.  But no such equality exists when individual workers are dealing not just with corporations, but with networks of corporations.

The corporate supply chain represents a concentration of power and a diffusion of responsibility.   When workers try to negotiate with Foxconn, managers can say that there is as limit to what they can do based on Apple’s requirements.   But Apple managers have no direct responsibility.  They can say there is a limit to what they can do based on their fiduciary responsibility to maximize return to stockholders.

You could say government should step in and set minimum wages and labor standards, but at the present time the governments of China and the USA are aligned with management, not workers.  Governments will not heed workers until they organize and create a base of power that governments must heed.  The workers of the world should unite.

Click on A Suicide Survivor: The Life of a Chinese Migrant Worker at Foxconn for a picture of working conditions at Foxconn by Jenny Chan.

Click on The politics of global production: Apple, Foxconn and China’s new working class for the text of the study by Jenny Chan, Ngai Punan and Mark Selden for their full paper.

Click on Apple et al create new working class for a duplicate copy of the study in Asia Times.  This is where I first came across the study.

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