IGCSE Global Perspectives

Individual Report

Candidate Name: Mitchelle Noreen

Centre Name: The Winchester

School

Centre Number: AE086

Candidate Number: 0549

Topic: Trade and Aid

Research Question: Is the promotion

of fair trade a solution to the
economic growth of developing
countries?
 Introduction
Fair trade can be best defined as the provision of ethical
and manageable conditions under which secondary sector
factory workers are able to produce products belonging to
multinational (corporation that owns or controls goods
production or sales in countries other than its own)
companies.

I chose to research on fair trade and its contribution to the

economic growth of developing countries due to my
recent exposure to unfair worker conditions and the
blatant violations of worker laws I’ve been witnessing.

I’ve dedicated this report to providing sufficient research

and arguments to decide whether or not the promotion of
fair trade is a solution to the economic growth of
developing countries.
 Main Issue
Economic growth refers to the incline in a country’s GDP
(gross domestic product). This research supports a global
dimension because it connects multinational capitalist
corporations exploiting workers in third world countries
in a range of ways whether due to the exchange rate or the
obvious exclusion of workers from labor laws or even,
corrupt governments.

Worker’s rights can be classified as a global issue due to

the 65% of countries that have excluded divisions of
workers from labor laws (International trade union
federation index report 2018), meaning, these workers are
not granted protection under these laws. The International
Trade Union Federation found that in 2019, workers
experienced violence in 52 countries including the murder
of trade unionists in countries such as the Philippines,
Turkey, Pakistan and Italy. The Middle East and North
Africa continued to be the worst region for worker’s
rights with the major use of the Kafala system being the
largest cause. The Kafala system is best defined as an
exploitative system that denies the migrant worker the
right to the freedom of movement. A credible example of
this dismissal of human rights would be the secret
execution of an Indonesian worker in Saudi Arabia.

But the question we are here to discuss today is the

economic growth of developing countries and if fair trade
can be a dependable contributor. It’s an evident fact that
almost all of these violations have been happening in
developing countries where its apparent that the
governments are behind this. It is only smart to assume
this is for financial gain which would present the
argument that fair trade would rather hurt the economic
growth of these countries. But how?

It could be suggested that there is some sort of

preconceived agreement between these developing
countries and multinational companies as trade partners
 which is mutually beneficial. The benefit to the
developing countries would be dire connection these
nations need to gain access to the global market which
consistently garners the most capitalist gain. This would
be evident in more developed or commercial nations like
the North Americas or richer parts of the European union.
In short, developing countries with otherwise struggling
economies need an in to the wealthiest markets in order to
secure the most amount of unfair monetary gain they can.
This in turn affects the workers who are given the short
end of the stick because they are the ones who will be
doing the actual hard work. LEDCs are sacrificing their
workers to capitalist corporations. This ensures the fastest
and easiest path to enhancing the country’s wealth even
though the individual citizens are suffering or virtually
pushed into poverty with their only dependability being
their horribly unfair jobs.
 Global Perspective
In order to further investigate this issue, I decided to focus
on 3 countries where worker’s rights are most ignored.
Saudi Arabia which is under the Kafala system,
Colombia, found to be the most dangerous country for
trade unionists in 2018, and Zimbabwe where workers are
being put on trial as a way to repress their stance.

Saudi Arabia
Saudi Arabia is considered to be a wealthy and
economically developed country due to their rapidly
growing GDP. Also under the Kafala system and reaping
the unequal benefits. The Saudi Arabian labor force is
encompassed of roughly 7.12 million workers (Nations
Encyclopedia) with little to no freedom in their work life
with several laws restricting and silencing their demands.

Still, the Saudi Arabian economy has been flourishing.

Why? Mostly because the rights the Saudi Arabian
 Government is actively subduing belong to foreign
workers. Those who are so extremely marginalized some
say they were subjected to mental and physical abuse
(The Guardian, 2011) from their employers that thousands
flee Saudi every year.

Saudi Arabia patently and repeatedly supports the

interests of capitalist businesses rather than the safety of
the foreign workers it retains simply because of the
monetary incentive they attain with the trust of these
corporations. It largely benefits the government to
basically supply these companies with dispensable
workers. The taxes recollected are reasonably higher due
to their deductibles being reasonably lower. On the other
hand, companies also mutually profit as it costs them less
this way.
 Colombia
With over 2220 violations against trade unionists
recorded by the ENS (Escuela Nacional Sindical)
including 143 murders, in 2018, Colombia was found to
be the most dangerous country for trade unionists by the
ITUC. Due to the rising number or gangs and their power
its no secret that the Colombian government is weakened
and unable to really do anything to help their citizens as
they are forced to side with these companies for a
sufficient income for the government.

A developing country with an emerging economy the

ENS reported that 64% of cases reported for violence
against workers came from the economic sectors of
education, mining and agriculture (ENS Anti-union
violence report 2018). The Colombian government is still
desperately trying to grow their economy so there is clear
reason as to why they are forced to side with corporate
rather than factory workers and the rise of gangs and gang
 killings doesn’t aid them in solving their workers’ rights
issues.

Zimbabwe
Zimbabwe is a developing country by all rights. The
nation is not flexible with their economic activities and
resorting to aggression whilst dealing with workers’ rights
defenders as reported by solidarity center in 2019. An
example of this would be the disappearance of Peter
Magombeyi, a member of the Zimbabwe Congress of
Trade unions (ZCTU) which is following a string of
violent threats and attacks to other members of this civil
rights group.

Along with this is an economic crisis for Zimbabwe

which has led to high inflation rates (NPR 2019) which
has disadvantaged these workers even more. All this
leaves researchers like myself to believe that now more
than ever, the Zimbabwean government will be cracking
down on workers by securing more deals with companies
in order to boost their economy and gain some stability.

National Perspective
The UAE is roughly 80% comprised of migrants who
make up 90% of the workforce. The UAE also under the
Kafala (visa-sponsorship) System, migrant workers,
especially domestic workers are reportedly subjected to a
range of abuses (human rights watch 2019) however in
2017, in an effort to reduce these rates, the President
signed a bill that grants domestic workers reasonable
rights that require employers to grant to their employees.

It is clear that these workers do not make up a big part of

UAE’s budding economy so really there aren’t any
pressing requirements for UAE to rely on these workers
so the Kafala system is an easy route to manage these
migrant workers.
 Personal Perspective
I am a secondary school student with plans to migrate to
the UK and be employed in the tertiary sector so in my
ideal world I don’t see myself servicing the secondary
sector anytime soon. Furthermore, none of my immediate
family is in the secondary sector that I know of. In my
perspective, I can’t really relate to this issue that well
since being in the UAE, a fairly developed country with a
rapidly growing economy doesn’t give me true insight.
However, being a Sociology student as well along with a
passionate interest in human rights and global news, I had
taken a sudden liking to this topic because it seems to be
one that has been around for decades with no true
representation in mainstream media which has led me to
believe that societies around the world consider complete
violations of workers’ rights is the new norm.

My only relation to these workers is buying and using the

products manufactured by these industries and I know
 most consumers around the world are dangerously
ignorant when it comes to fair trade matters. Myself
included. In a world where trade unionists and defenders
of workers’ rights are being slaughtered, kidnapped and
abducted, it is up to the consumers to wake up, put aside
their ignorance and fight for the people who create their
products in harsh, unsafe, debilitating conditions.

Possible Scenarios
With an issue like this that affects millions of people
around the world with virtually conventional
representation or aid, there are bound to be some
consequences.

First possible scenario could be the continuous exclusion

of workers from labor laws, this could lead to an ongoing
reticent pattern of violence and major suppression to
innocent people who are tied to their jobs at the risk of
unemployment, lucrative trials and executions will
 escalate into what is now exploitative labor, to modern
day slavery.

Another scenario could be the possible engagement of fair

trade into strict and stringent laws or bills that require
employers to treat workers with fairmindedness. This
would surely benefit these marginalized laborers who
have been underprivileged for so long however the
governments who grant these wishes would then be
deprived of the money they could receive as tax from
companies.

Possible Courses of Action

There are solutions and ways that would help rectify this
situation despite of how out of control it has gotten.

The first solution would be for the governments to

provide these companies with a proper minimum wage
levels and safety precaution standards for them to apply to
their factories in order to help these workers achieve their
 full potential without leaving their lives at risk. This,
evidently won’t hurt company budgets, just encourage
them to incur costs more ethically and efficiently.

Another course of action would be the introduction of

federations of workers’ rights defense. Although countries
like Zimbabwe already have Congress of Trade Unions, it
would be more beneficial to employ them in many of the
54 countries around the world who violate labor laws
(ITUC 2019). A legal unit to represent all workers is a
step towards resolving this human rights disaster.

Moreover, concerning the middle east’s visa-sponsorship

system named Kafala, in my opinion is outdated and
heavily manipulative. This system can be improved and
devoid of migrant abuse in so many ways. For example,
workers under the Kafala system are required to take
permission from their boss before they can leave the
country, and this cannot be disputed at all. Perhaps, if
workers were allowed to prove their need to leave or even
 step up against federal court and prove their abuse, they
could be granted some freedom.

Personal Response
Over the course of researching, writing and gaining
perspective into this issue I have realized how much of an
ignorant consumer I am and everyone around me as well.

I will now stop and consider how much work has gone
into any product that I will likely use for about an hour
and then throw away. The pain and terror behind this.

Which is why from now on I will choose to be an

ethically conscious consumer and search for fair trade
products with this symbol (figure 1.1) on it which will tell
me that the worker who produced this able to reach their
full potential as they have helped me to reach mine.

Figure 1.1
 References
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www.globalmediainsight.com/blog/uae-population-statistics/.

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content/uploads/2018/02/2018-02-ENS-Anti-UnionViolence-

Colombia.pdf.

3. Fair Trade - In or Against the Market ?,

www.threefolding.org/essays/2007-01-001.html.

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crisis-with-175-inflation-drives-discontent.

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 www.theguardian.com/world/2011/jun/25/saudi-arabia-migrant-

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12. “What Exactly Is Fair Trade, And Why Should We Care?” Forbes,

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fair-trade-and-why-should-we-care/#1fb5349e7894.

13. “What Fairtrade Does.” Fairtrade Foundation,

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17. “Zimbabwe: Abductions Targeting Worker Rights

Defenders.” Solidarity Center, 18 Sept. 2019,

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rights-defenders/.