Rivoli Part II

The fluctuation in the central location of the cotton industry illustrates how the global economy is ever changing. Considering that success in the cotton industry is highly dependent on a cheap and sustainable labor force, this fact is not surprising. A country is not able to compete unless it is willing to take advantage of desperate workers, i.e. Asia, or if the country is able to lower costs through unfair trade practices that are supported by the government, i.e. the United States.

My beliefs on the matter of industrialization are best outlined by pg. 119 of Rivoli's book, "The countries that have lost the race to the bottom are some of the most advanced economies in the world today, but they share a common heritage in the cotton mill and the sweatshop as the ignition switch for the urbanization, industrialization, and economic diversification that followed, as well as for the economic and social liberation of women from the farm." Industrialization is a necessary evil in the world today. Yes, it has its downsides such as pollution and the exploitation of workers in some countries, but through industrialization comes innovation and in turn a better world for the country as a whole. Additionally, through the implementation of a strong, central government (with these ideals in mind) it is possible to eliminate much of the pollution associated with industrialization, which is why the level of pollution is much higher in countries such as China than it is here in the United States. Although it is not reasonable to think that a country will always choose the more righteous path of being "greener", the sheer possibility furthers the case for industrializations benefits outweighing its costs.


The passage that was most interesting to me was when Rivoli raises this interesting point, "The argument that the economic development and income gains that result from trade will lead to better outcomes for labor and for the environment relies first on the assumption that higher incomes will lead citizens to demand these greater protections--a reasonable assumption that had empirical support. But it also relies on the assumption that someone is listening to the citizens’ demands. In brief, without some way of making their voices heard, that is, in the absence of democracy, it is more difficult for citizen demands, whether for cleaner water or minimum wage, to work their way into law”. This point that he raises directly connects to my belief that as long as their is a strong central role by a relatively uncorrupt government in the implication of these restrictions and guidelines, the potential gain from industrialization is far greater than the potential cost.