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OXFORD REVIEW OF ECONOMIC POLICY, VOL. 20, NO. 1, PP. 85-104
© Oxford University Press and the Oxford Review of Economic Policy Limited 2004; all rights reserved.

Labour Standards and the ‘Race to the Bottom’: Rethinking Globalization and Workers' Rights from Developmental and Solidaristic Perspectives

Ajit Singh
University of Cambridge

Ann Zammit
Independent consultant, currently with UN Research Institute for Social Development1

Abstract

There is a protracted stalemate between rich (the North) and poor (the South) countries over the question of minimum labour standards in developing economies. This paper is a sequel to Singh and Zammit (2000). It considers afresh key issues in the controversy. While fully recognizing the moral, political, and philosophical dimensions of this complex issue, the paper concentrates on the central economic question of the ‘race to the bottom’. It emphasizes the difficulties of establishing labour standards in the vast informal sectors in developing countries and suggests that the ILO conventions 87 and 98 should be amended to reflect properly these concerns. It also argues that ILO core conventions should be broadened to include the right to a decent living. The overall conclusion is that labour standards are important indicators of economic development, but their promotion is best achieved in a non-coercive and supportive international environment such as that provided by the ILO.


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