|
Currently, the United Nations Environment Program is working in places like Chile, Uganda, the Philippines, Romania and Bangladesh to keep trade liberalization in place, but improve the profitability and sustainability of resources through policy initiatives. In a recent report, they stated, "UNEP believes that the potential for negative impacts of trade on the environment can be minimized, if not avoided entirely, by integrating environmental considerations - that complement rather than inhibit trade - into development planning."
In Chile, copper mining represents 41% of the country's total exports, but only 2% of national employment. The UNEP study found that most foreign investors preferred hiring contract workers rather than employees to offset the costs of technology associated with mining and land-clearing in the difficult terrain. Job security was low and the benefits to the common man were minimal, while companies saw large increases in profit. Additionally, the environment saw considerable damage with air and water pollution, soil contamination, land and species damage. In this particular case, trade liberalization is not so much the root of the problem -- but rather, the global business standards must be put in place and enforced by governing nations. Globalization challenges for Chile include: developing cost-effective technology, negotiating fair worker contracts and fining polluters, in addition to creating programs aimed at reducing environmental damage.
A 1998 survey in the Philippines showed that 67% of domestic water users were prepared to pay an additional three cents per cubic meter of water on their monthly bills. Commercial users were less willing to pay their share, so a "one-time contribution" approach was favored for large users. The funding derived from this method could produce up to $101,062 to cover the costs of watershed protection. Prior to recent developments, there was a charge for the use of the Makiling Botanical Gardens, but most of the other recreational locations charged nothing and the required consumer contributions were mandated far too low (less than half of what people were willing to pay). Trade liberalization was not so much the problem in this case. Rather, local economics were in need of assessment.
A similar instance occurred in Romania, when water demand increased fifteen-fold and it was discovered that the national raw water price was a mere 25% of the full economic value. Ninety-percent of respondents in urban Romania agreed that water should be priced to reflect service, administration costs and value of a natural resource. Ninety-eight percent of those surveyed favored a new trade strategy and government trade liberalization, rather than local privatization.
In conclusion, there are positive and negative effects of globalization and trade liberalization. Developing nations can only thrive by participation in the world market, technological advancements, educational training, employment for the common man and cultivating their environments. Foreign investment capital and intervention can help in all of these areas, but must be regulated to conform to the same stringent standards they face in their own countries, instead of using free trade as a free-for-all cash-grab at the expense of a foreign populace.
Click here for more information.
|
