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Re: ``globalization'' and poverty



On Fri, 4 May 2001, James R. Olson, jr. wrote:
> I have to wonder why textiles in particular were chosen as the
> industry of focus.

Well these things are always overdetermined of course,
but here is the justification given by the CRS at
  http://www.cnie.org/nle/econ-36.html
for lowering traditionally high US barriers to textiles for African
nations:

``The textile and apparel industries historically provide the first
step toward industrialization in many countries. This is because
production is relatively simple, can be done on a small scale, and
often uses locally abundant raw material (e.g. cotton). Most
importantly, apparel stitching is labor intensive, and low wages in
the developing countries confer a significant competitive advantage.
For these reasons, proponents of the strategy of "trade not aid"
believe a liberalization of textile and apparel trade is necessary, if
it is to be seriously pursued.''

Alan Isaac




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