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Global Value Chains in East Asia WTO 6.03min jun 2011

Causes and Condition of Child/Youth Poverty: Comparing Canada and the DW (using some examples from India and Mexico). Global Value Chains in East Asia WTO 6.03min jun 2011 http://www.youtube.com/watch?v=9-1ht2OrG2Y Starbuck's Coffee: Commodity Chain 10 min 2011

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Global Value Chains in East Asia WTO 6.03min jun 2011

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  1. Causes and Condition of Child/Youth Poverty: Comparing Canada and the DW (using some examples from India and Mexico)

  2. Global Value Chains in East Asia WTO 6.03min jun 2011 http://www.youtube.com/watch?v=9-1ht2OrG2Y Starbuck's Coffee: Commodity Chain 10 min 2011 http://www.youtube.com/watch?v=osW9dfueb_4

  3. http://www.irows.ucr.edu/papers/irows13/irows13.htm (accessed jan11,07)

  4. Production and consumption interlinks • Core & Peripheries: • Global Commodity Chain • (NIKE) • Integration of Households • Children/youth • Women • * Nike's Globalization and Commodity Chain • http://maps.google.com/maps/ms?ie=UTF8&t=m&vpsrc=6&oe=UTF8&msa=0&msid=211065077841377470192.0004b3088ffc9f6ceb280 • Red: manuf Green markets yellow HQs and acquisitions

  5. Household in the Global Commodity Chain • (World System Theory): • Core or Peripheral states: • Households (non indigenous) • Classes: Upper & middle income • Low income & the Poor • Indigenous households: (Canada and • L Am) • Fourth World status • * Child labour 2006 BBC • http://www.youtube.com/watch?v=ruh0O_mj1v0 5.20 min • Nepal child labour 3min • http://www.youtube.com/watch?v=6zSLVhHEXtM • 8 Things You Really Need to Know About Child Slavery • http://www.takepart.com/photos/7-new-stats-show-progress-fight-against-child-labor/how-many-kids- (slides) 2013 data

  6. Value Chain: Geographically Dispersed Interlinks * Walmart Fire in Bangladesh 2012 (21.26min): http://www.youtube.com/watch?v=oLoW5Z9vhhg (watch 6 min or more)

  7. Globally pervasive child labour: Child labour uncovered in Apple's supply chain Internal audit reveals 106 children employed at 11 factories making Apple products in past year Juliette Garside, telecoms correspondent The Guardian, Friday 25 January 2013 19.22 GMT Apple store

  8. Core: Canada & children in poverty Affluent country Child benefits Social institutions & financial support for children Poorer countries Child poverty leads to child labour Basic needs not met Concepts Comparing on Children in poverty Periphery: Mexico & India: Child Poverty

  9. The Global Situation of Children in Poverty 3.10 min 2008 http://www.youtube.com/watch?v=jCXXgrL0Znk

  10. WST concepts that explain the reasons for the increase in child poverty in the Core and in the Peripheries: • Neoliberalism: • Declining role of the State • Deregulation results in Financial Meltdown (2008) • Global Commodity Chain (GCC)

  11. Neoliberalism & its result: GCC in Core: • Declining role of the State • Financial Deregulation • Dismantling of Social Welfare • Privatization of child care • Youth integration into GCC • Weakening of social policy towards children • State is unable to compensate the impact on • child poverty generated by the shocks • Declining funding for youth programs & educ. • Youth unemployment

  12. WST concepts that explain the reasons for the increase in child poverty in the Core and in the Peripheries: • Neoliberalism: • Declining role of the State • Deregulation resulted in Financial Meltdown (2008) • Global Commodity Chain (GCC)

  13. Neoliberalism & its result: GCC in Core: • Declining role of the State • Financial Deregulation • Dismantling of Social Welfare • Privatization of child care • Youth integration into GCC • Weakening of social policy towards children • State is unable to compensate the impact on • child poverty generated by the shocks • Declining funding for youth programs & educ. • Youth unemployment

  14. Comparisons and Statistical Data

  15. Total Global/ Regional Children/Youth in ’000 (March 2012) Countries <18 <5 Africa 477,383 155,135 Middle East and North Africa 156,444 47,524 Asia 1,151,806 316,151 Latin America and Caribbean 195,713 53,461 Industrialized countries 203,008 57,212 Developing countries 1,953,940 563,545 Least developed countries 389,258 122,520 World 2,201,180 633,933 http://www.unicef.org/sowc2012/ accessed jan26,2013

  16. Contrasts between Canada & DW • Children’s poverty • in DW: 2004 • 250 million • Absolute poverty • Lack basic needs • Hunger and death • AIDS & blindness • Severe disabilities • Violence and orphans • Absolute poverty is the complete lack of resources to meet basic needs and sustain life • Children’s poverty • in Canada: 2005 • 1.2 million • Relative poverty • Generational welfare trap • Poverty cycle • Social Security • Publicly funded schools • Universal medical car • Relative PovertyThe level of poverty of children living in households where disposable income is less than half of the median in a given country

  17. Affluent Canada (2005): Child poverty 1.2 million children, or (1 in 6) children live in poverty. # in poverty- 20% rise (1989-2004) 41% users of food banks, are children Child Poverty in Canada: Why are 10 percent of kids poor? 1hr April 2010 http://www.youtube.com/watch?v=qt6s1maEMtw (2010) Income Inequality and Child Poverty in Canada: from Poor No More, a Canadian docu. 2.53min oct 2009 http://www.youtube.com/watch?v=GIWroI1wymg Peripheries or DW (2004) Child poverty : 674 million in poverty (2005) 70% poor in rural (agriculture) Gordon, D, et al (2003) "Child poverty in the developing world" Child labour (2004) 250 million working 120 million work full time 61% in Asia, 32 % in Africa, 7% in Latin Am http://www.hrw.org/children/labor.htm accessed oct 2010 Canada: http://www.campaign2000.ca/rc/rc04/04NationalReportCard.pdf accessed Jan 2010

  18. Canada (cont’d) (groups that are in worse situation) Child poverty rates for Aboriginal, immigrant & visible minority groups are more than double the average of that of all children At Least 50% of Aboriginal Children Live in Poverty in Canada 4 min https://www.youtube.com/watch?v=BEB8JEcoejo Support for First Nations' Children 2010 3 min 2010 http://www.youtube.com/watch?v=p2AqunAgY2A child poverty rate among children with disabilities is 28% Developing countries (cont’d) (work) work as domestics work in trade & services work in manufacturing & construction

  19. Canada: 2009 Child Poverty: • 639,000 children live in poverty • Poverty rate: 9.5% • Youth unemployment • 14.1% unemployment rate • Aged 15-24: 408,000 youth unemployed in Oct. 2011. • weekly wage $398.74 - $525.90 less than those aged 25 and over • 30% of these youth find themselves in precarious jobs REVISITING FAMILY SECURITY IN INSECURE TIMES 2011 Report Card on Child and Family Poverty in Canada DW (2011) Child poverty : • 1 out of 6 infants are born with a low birth weight in developing countries. • A third of all childhood death in sub-Saharan Africa is caused by hunger. • Every five seconds, a child dies from hunger-related diseases. • 22,000 children die each day due to conditions of poverty http://www.thp.org/learn_more/issues/know_your_world_facts_about_hunger_and_poverty Know Your World: Facts About Hunger and Poverty 2011

  20. Child poverty is defined in the 2011 Society report as “The proportion of children 17 years and under living in households where disposable income is less than half of the median in a given country.” Ref: 2011 Society report(2011). The Conference Board of Canada, Ottawa Child poverty in BC 2011 http://www.youtube.com/watch?v=xVXzsxc4ikY 1.37min 2011 .

  21. Child Poverty in Canada LIC: Low income cut-off LIM: low income measure http://www.statcan.gc.ca/pub/75f0002m/2012002/lico-sfr-eng.htm 2011 Report Card on Child and Family Poverty in Canada

  22. Canada’s Children in Poverty http://www.campaign2000.ca/reportCards/national/2011EnglishRreportCard.pdf

  23. http://www.campaign2000.ca/reportCards/national/2011EnglishRreportCard.pdfhttp://www.campaign2000.ca/reportCards/national/2011EnglishRreportCard.pdf

  24. Source: Statistics Canada, 2006, 2001 & 1996 Censuses through the Toronto Social Research and Community Data Consortium (2006) and the Community Social Data Strategy (1996-2001). LICO Before-Tax.

  25. Canada: Source: http://dsp-psd.tpsgc.gc.ca/Collection-R/LoPBdP/CIR/824-e.htm 2003 data

  26. Thesis on children/youth: • Increasing global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. • Most children/youth in the Core help extract a major share of surpluses (corporate profits) through their consumption within a stable political economy. Thus, a majority of the children/youth in the affluent Canada (Core) have been transformed into conspicuous consumersor service sector commodities, whilea minority of them (1 in 10 (circa 2010)) live in poverty

  27. Thesis (cont’d) • In contrast, through poorly paid or unpaid household labour children/youth in the Peripheries are exploited through surplus extraction for profit for and consumption in the Core. In the Periphery, those children/youth who are from the rich and middle classes, become comprador consumers. But most of the peripheral countries’ children are absolutely poor and must work for their livelihood. Thus they become labour commodities

  28. Comparative arguments using WST: Global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. Most children/youth in the Core help extract a major share of surpluses (corporate profits) through their consumption within a stable political economy. Thus, a majority of the children/youth in the affluent Canada (Core) have been transformed into conspicuous consumersor service sector commodities, whilea minority of them (1 in 10 (circa 2010)) live in poverty In contrast, through poorly paid or unpaid household labour children/youth in the Peripheries are exploited through surplus extraction for profit for and consumption in the Core. In the Periphery, those children/youth who are from the rich and middle classes become comprador consumers. But most of the DWs’ children are absolutely poor and must work for their livelihood. Thus they become labour commodities

  29. Global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. CHILD LABOR/SLAVERY: NIKE, APPLE, GAP, MICROSOFT -- CHINA, INDIA, PAK http://www.youtube.com/watch?v=57v_v6oSGZI 2010 4min

  30. Single division of labor: core accumulates capital as periphery supplies labour

  31. WST & Global Commodity Chain (GCC): • Commodity Chain Research HD • http://www.youtube.com/watch?v=bs65dIcRKXE 4 min • Core: Capital rich • MNCs’ corporate Head Office: • R&D • Product design • Customization • Market distribution • Products • Retail • Ads

  32. Inequitable Impacts of global Commodity Chains on workers in Canada (Core): Wilma A. Dunaway, Wealth & Capital Concentration In Commodity Production, lower wages for the workers Low Remuneration for Non-Wage Labor (e.g. household work) Economic Costs Conspicuous Consumption Devaluation of Arts & Humanities Commodification of Youth, child, women as Ads, Logo Educational & cultural costs Health Civic freedoms Discrimination: gender & Age Human rights Law & Order (prejudice against the poor) Critical individual costs

  33. GCC • Peripheries: Labour surplus • Production process: • Vertically integrated • GCC

  34. Vertically integrated Model: MNCs’ GCC Foreign subsidiary or Subcontracting local company Manufacturing factories or Sweatshops Extract raw materials from resource rich areas Extract surplus from labour Household labour of the poor (low/no wage or slavery): Men, Women, Youth & Children

  35. GCC (contd.) • Peripheries: Labour surplus • Production process: • Vertically integrated • GCC

  36. Hidden Inputs of the Peripheries’ child & women in the global Commodity Chain Typical Production Node of a Capitalist Commodity Chain Cheap Labor Capitalist Costs that are Externalized to Households Working class child & women subsidize the Production Process Inequitable Impacts on children & women Economic Costs to the Periphery Surplus extraction from labour: No-wage, Unpaid & Low-wage subsidize commodity production State Subsidies: in providing societal Infrastructure of maintaining stable social order State Subsidies to Capitalist Enterprises External costs: http://www.youtube.com/watch?v=yC5R9WPId0s (7.39min)

  37. Inequitable Impacts of global Commodity Chains on Children/youth workers: in the Periphery: Wilma A. Dunaway, • Economic costs: • Negative impact of loss of education years on a country’s development • Country loses skill development in its future population • Health costs • Children in hazardous work: Life span, health and welfare irrecoverably affected • Social costs • Cycle of Poverty – destitution becomes endemic

  38. Comparative conceptual arguments: Global corporatization has integrated children/ youth in the Core and Peripheral countries into a global commodity chain. Most children/youth in the Core help extract a major share of surpluses (corporate profits) through their consumption within a stable political economy. Thus, a majority of the children/youth in the affluent Canada (Core) have been transformed into conspicuous consumersor service sector commodities, whilea minority of them (1 in 10 (circa 2010)) live in poverty In contrast, through poorly paid or unpaid household labour children/youth in the Peripheries are exploited through surplus extraction for profit for and consumption in the Core. In the Periphery, those children/youth who are from the rich and middle classes become comprador consumers. But most of the DWs’ children are absolutely poor and must work for their livelihood. Thus they become labour commodities

  39. Canada: Core country’s children/youth: • Most are higher or middle income classes (80% all children in Canada): • Children at school • Youth at school/work • Consumers: Conspicuous Consumption

  40. Canada: Child/youth are transformed into: • Conspicuous consumers (endless consumption) • Service sector commodities

  41. Conspicuous consumers • Rich Kids for Romney http://www.youtube.com/watch?v=fit79MQwyeY 50sec 2012 • Creation of artificial wants • Persuaded to consume endlessly • Ads & Peer pressure lure the young

  42. Core’s Child/ Youth conspicuous consumption: • manufactured and manipulated by: • Adult-led army of advertisers • Marketing consultants • Youth researchers

  43. Child/youth in the Core transformed into: • Conspicuous consumers (endless consumption) • Commodified in the Service sector

  44. Core: youth work is: • Low-end service work • Low in status, value and skill • Not “real” work • Corporations view youth work as hobby

  45. Consumerism - Commodification Link: • Circularity in youth employment • Service sector employers: • Hire young workers because ‘youth’ • sells product • Youth/child often isthe real product being sold • e.g.: Ads of child/youth in jeans or t-shirts, sneakers or snowboards, soft drinks or CDs • Youth as consumers

  46. http://www.time.com/time/magazine/article/0,9171,1587254,00.htmlhttp://www.time.com/time/magazine/article/0,9171,1587254,00.html

  47. http://www.globalissues.org/article/26/poverty-facts-and-statshttp://www.globalissues.org/article/26/poverty-facts-and-stats

  48. e.g.: Retail stores and food service companies: • Exploit the sexuality of young workers (esp. women) to attract customers and increase sales • Staffing stores by hiring youth as workers with the right “look” • Hire by screening for an appearance, attitude and demeanor based on age, gender, race and class

  49. The company hires “brand representatives”: • Not cashiers or clerks • Exhibiting the “A&F Look” (to experience Abercrombie & Fitch stores) • Selling an experience for customer to experience again and again through the Brand

  50. Commodification of Youth • Youth workers: • wear brand name perfumes as directed. • But, in Starbucks: no colognes and perfumes – only the “romance of coffee” aroma • Faces freshly scrubbed with Body Shop Blue Corn Mask • Apartments furnished with Ikea self-assembled bookcases and coffee tables

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