Here’s a video I made explaining why.
Here’s a video I made explaining why.
British trains used to ‘slam doors’, metal slabs that swung outward, a latch on the outside. If the train was pulling into a station, passengers could reach out through the window, swing the door open and hop off without waiting the extra few seconds for the train to come to a full stop. During long delays, they could lean out, have a cigarette and shut it again when the train started moving.
The downside of the slam doors was the accidents. Every year, a few people fell off the back, pulled under the wheels. Passengers waiting at train platforms got bashed in the face by the doors as they swung open. The trains put up signs, of course, don’t open this, watch your step, but every year, the doors caused between 5 and 10 deaths, and dozens of injuries.
The need for replacing the doors seems obvious, but for decades, the UK stubbornly refused. Updating the doors would have required designing an automatic opening mechanism, then paying workers to replace each swinging door with a sliding one. With hundreds of trains, thousands of doors, the cost was in the billions. So Britain did nothing. It left the doors as they were, cleaned up the mess from the fatalities but did nothing to prevent them.
I spent last month in Seattle. The city has been in a decade-long debate about what to do about the Alaskan Way Viaduct, an elevated waterfront freeway, one of the city’s busiest north-south arterials. In 2001, an earthquake rattled the viaduct, weakened it. Even after the city added extra steel and sensors to all the weak points, everyone knows it’s not going to survive the next earthquake. As my friend, a Seattle city planner, puts it, ‘the next time someone sneezes on that thing, it’s coming down.’
And again, it seems obvious what the city should do. Close the viaduct, tear it down, build a safer one. But they haven’t. Fourteen years now, it simply remains, carrying just as many passengers as before. When the next earthquake happens—and in Seattle, it is indeed a when, not an if—a not-insignificant number of people will die in their cars, crushed by concrete and steel. There’s even a road underneath the viaduct, a popular tourist area, bike lanes, hot dog stands. Those people, if the earthquake is during the day, will probably die too.
Countries have a formula they apply to these sorts of problems, it’s called the value of preventing a fatality, of VPF. In Jonathan Wolff’s Ethics and Public Policy, where I read about the train doors, he notes that in the UK, the value of a human life is £1.4 million. In the United States, it’s apparently $6 million.
What that means is, since the train doors killed up to 10 people a year, Britain was willing to invest up to £14 million in retrofitting them. If the cost went over the VPF, it would leave them. It did, so it did. In Seattle, tearing down the viaduct, spending years rebuilding it, would interrupt the commute of millions of people, would cost billions in lost productivity. Whatever mayor or governor decided to do it would be voted out of office.
I’m not even sure I disagree with leaving the viaduct up. I biked beneath it almost every day in Seattle, I took that photo standing right under it. A small chance of, say, 60 people dying in exchange for keeping a major urban arterial might actually be a worthwhile trade-off.
What’s interesting to me isn’t that we make these choices, but that we are only allowed to make them invisibly. A politician who stood at a podium and said ‘saving 10 lives isn’t worth more than £14 million’ would be seen as a monster. Yet that is indeed the decision Britain’s politicians reached, and the one we live with intrinsically in things like our drinking age, our speed limits, our pharmaceutical regulations, our sentencing laws. At the population level, almost every decision means lives lost. Since 1979, 10 people have apparently been killed by Bic cigarette lighters. Is banning them worth the inconvenience of millions of people taking slightly longer to light their cigarettes? Meh, probably not.
This month, the international community will come together to sign the Sustainable Development Goals, an ambitious framework to end poverty, achieve gender equality and improve global health. As I’ve written before, it’s a mess, a soup of unmeasurable indicators and undefined targets, things like ‘halve per capita global food waste’ and ‘encourage companies … to adopt sustainable practices’
One of the reasons it’s so bad, I’m convinced, is that in development, we aren’t allowed to talk about these trade-offs, the kinds governments and citizens make every day. With the viaduct, with cigarette lighters, we traded a small risk of fatalities for the inconvenience of preventing them. With train doors, Britain decided there were more pressing risks to spend its resources on, more passengers it could save for its pounds elsewhere.
Yet in development, we never talk like this. One of the main criticisms of the Millennium Development Goals, the precursor to the Sustainable Development Goals, was that they neglected some development issues in favor of others. Domestic violence, human trafficking, corporate tax evasion, all of them got left behind.
I remember a meeting at my last human rights job. We were a department of four people, trying to plan our activities for the next year. We brought in a strategy consultant, he gave us each a matrix of organizational priorities, stuff like land resettlements in Africa, foreign direct investment in Myanmar, sexual harassment in the Middle East. He asked us to rank them in priority from high to low.
After a few minutes of scribbling, one of my colleagues reported that she had marked every issue as ‘high priority.’ The consultant looked confused. ‘Those are all really critical issues,’ she said, ‘with profound impacts on peoples’ lives. We should be working on all of them.’ I looked around, everyone else in the department was nodding.
It’s understandable, this. No one wants to argue that one development issue is more pressing than another, to stand up and declare ‘state surveillance of political dissidents affects fewer people, and less severely, than human trafficking. Lets prioritize the latter.’ No one wants to admit that working on one problem leaves all the other ones in place.
When you work at Nike, when you have to decide on launching an ad campaign for sandals instead of sneakers, you’re allowed to make arguments why one should take precedence over the other. But in development, lives on the line, you can’t. So we say yes to everything, we plan our years without differentiating between priorities, we stretch ourselves thin. And we fail, again and again.
I don’t know what’s going to happen with the Sustainable Development Goals. Maybe governments will pick the ones they want to reach, will defend the choice to leave others behind. Maybe they will be honest about the choices they make, we make, all the time, the trade-offs that come with resource constraints and political realities.
But I think, I fear, that they won’t. That the international community will fail to make the decisions that governments do every day, that we will give developing countries rules and principles, but no tools for choosing between them. That we will, once again, tell poor countries to replace their train doors and rebuild their viaducts all at once.
All year I’ve been trying to decide what I think about the Millennium Development Goals. You remember those, right? In 2000, 189 countries and 23 international organizations committed to eradicating poverty, promoting gender equality and improving global health by 2015.
As the deadline approaches, the internet has filled up with equally unconvincing arguments for and against the MDGs. Most of the ‘they’ve failed!’ condemnation is by people who think foreign aid shouldn’t exist at all, and most of the ‘they’ve succeeded!’ cheerleading is by people who were there for creating them.
So a few months ago, I started reading institutional and academic reports on the Goals. Their creation, their progress, their data, I wanted to know what the evidence, what the people gathering it, actually said.
I came away even more conflicted than when I started. Defenders of the Goals say they were great PR, an excuse for the global north to start sending money southward again. Critics of the Goals say they were unrealistic, a top-down tickbox exercise inflicted upon the developing world without their consent.
I think they’re both right! Here’s the arguments for and against the Millennium Development Goals, and why it’s so hard to pick a side.
Let’s start with the non-arguable stuff. In the mid-1990s, development aid was in crisis. The Cold War had just ended, and without communism-prevention giving rich countries a reason to give money to poor ones, the air was slowly leaking out of the field.
International organizations needed a big idea to shake governments out of their ennui, to inject enthusiasm—and more importantly, money—back into poverty reduction. After years of deliberations, they come up with the MDGs, eight quantitative(-ish) targets for the world to rally around. By 2015, they pledged, they would halve extreme poverty, cut maternal mortality by three quarters and reverse the spread of HIV/AIDS. Oh, and reduce hunger and battle child mortality and improve sanitation and provide safe water and achieve universal education.
Almost immediately, donations started increasing. Between 2000 and 2005, aid flows went from $60 billion per year to $120 billion. Health spending doubled; primary education spending tripled. Donor countries started coordinating their projects, rallying around specific outcomes and quantitative monitoring rather than the ad hoc before-and-afterism they used to work under. As one evaluation puts it, ‘a cascade of statistical and analytical work got underway once the MDGs gained currency.’
The MDGs increased donor commitments and coordination; that part’s undisputed. But just as fast as the new money came in, though, so did the question of whether it was actually making a difference.
Look, we’re not going to make the MDGs, not even close. I’m not going to go into a whole big thing where I talk about each Goal and how X number of countries are falling behind or whatever. Even a cursory glance at the Goals themselves shows that reaching them was never the point.
Take Goal 1, ‘eradicate extreme poverty and hunger.’ It’s split up into a few targets, components defining what reaching the Goal means in statistical terms. The first target for eradicating poverty and hunger is pretty reachable: Halve the proportion of people living on less than $1.25 a day. We did that years ago. Check.
But the next target under that Goal is ‘achieve full and productive employment and decent work for all.’ Oh is that it, MDGs? A job for every single person on the planet?
It’s like this going down the right down the list, reasonable targets alternating with utter fantasy. Goal 2 is ‘achieve universal primary education.’ Denmark doesn’t have universal primary education. The rest of the world was never going to get there with 15 years and a 60 extra billion dollars split 40 or so-odd ways. One analysis points out that 38 countries started the MDGs with enrolment rates below 80 percent. Achieving the goal by 2015 would have meant ‘improv[ing] enrolment at a rate that has not been achieved by a single country for which post-1960 data is available.’
This is why I’ve spent the first six months of this year rolling my eyes at op-eds gloating about how the aid community has ‘failed’ to reach most of the Goals. Of course we did! Half them are ridiculous!
I should also mention here, speaking of ridiculous, that many of the targets don’t have particularly trustworthy data behind them. Lots of the statistics are based on household surveys, dudes with clipboards wandering through villages, asking people about their kids’ birth weights and whether they use mosquito bednets. Only one African country, Mauritius, even registers births and deaths according to UN standards. Maternal mortality rates for the year 2000, the year the MDGs were signed, were estimated to be between 210 and 620 per 100,000 births. Reducing something by 66 percent gets a lot harder when the baseline has a margin of error of 300 percent.
But the real debate isn’t over whether the Goals, measured by their own science-fiction targets and fingers-crossed data, fail or succeed. It’s about whether they had a galvanizing effect, whether all those extra donations resulted in leaps forward for the indicators the international community decided to work on. It’s incontrovertible that nearly every indicator of human well-being—life expectancy, literacy, income, mortality—has improved in the years since the MDGs were adopted. The question is whether that would have happened without them.
By now, there’ve been a few studies on this, and it doesn’t look great for the MDGs. In 2010, an analysis found that only five indicators (out of 24) accelerated after the MDGs were adopted, and that was only in half to two-thirds of the countries where they were being applied. China, the greatest poverty-alleviation success story of the last generation—28 million Chinese people were lifted out of poverty every year between 1990 and 2008—barely participated in the MDGs. The latest MDGs Progress Report notes that when in 2000, only 6 percent of the world’s population had access to the internet. Now, it’s 43 percent. Considering all the technical and economic changes that have happened during that time, is anyone really going to argue that that it was a set of donor targets that were the critical factor in that rise?
That critique, though, only works when you look at the global picture. Zooming in, you find specific places, specific ways, where it seems like the MDGs have worked. The Center for Global Development’s Charles Kenny, for example, has shown that according to trends from before 2000, primary education rates in developing countries should have reached 76 percent by 2010. They actually reached 81 percent. Maternal mortality should have been 221 per 100,000 births; it ended up 203. That same analysis that found only 5 indicators improving globally post-2000 also found that, in Africa, 16 of them did.
But you can julienne the statistics however you want. The challenge of the MDGs, and why it’s so hard to make up my mind about them, is because the ways in which they’ve failed are so easy to measure, while the ways in which they’ve succeeded are so not. As Kenny and others have pointed out, coordinating donors around measurable goals, renewing the reasons for rich countries to invest in poverty reduction, these things matter. They’re just not as quantifiable as literacy rates or HIV prevalence. In the least developed countries, where aid makes up a significant percentage of the national budget, they may even have been decisive. The shittiness of the data, and the non-existence of the counterfactual, means we’ll never know for sure.
Another, slightly more convincing, criticism of the MDGs isn’t about whether we reached them, but whether they were worth reaching at all.
Remember Goal 2, ‘Achieve universal primary education’? The way the MDGs chose to measure this was through enrollment rates, how many kids attend school every day. By that measure, poor countries have made significant headway toward the Goal. By the measure of whether they actually learned anything, however, the evidence is less inspiring:
In many cases the rapid expansion of schools aimed to grant an increasing number of students access to primary schools had in many cases a deteriorating effect on the learning quality, first and foremost due to teacher shortages, resulting in single teacher schools with one teacher responsible for one multigrade classroom, or the hiring of so called para-teachers with considerable less educational qualification as regular teachers. … 130 million children completed primary education but without being able to read or write.
This, according to MDG skeptics, is their real weakness: They focus on inputs, the ability of a country to provide a service, rather than outcomes, whether those services are actually improving people’s lives. In doing so, they’ve encouraged governments to work on means and ignore ends. It’s like pledging to lose weight but never actually weighing yourself, just counting how many Cinnabons you eat.
I’m tempted to accept this critique—I’ve been bitching about measuring ‘gender equality’ by the percentage of women in national parliaments for years—but it’s worth pointing out some caveats in it too. Not all the indicators measure inputs. Some of them, like the target on providing access to HIV treatment, really do measure the outcome the MDGs are trying to reach.
And yes, enrollment rates are not a perfect measure of learning and women in government is not a perfect measure of gender equality. But what is? ‘Education’ and ‘equality’ are inherently qualitative concepts—so is ‘development’, while we’re at it. Maybe the Goals should have used test scores rather than enrollment rates to measure education, or the gender pay gap to measure equality, but those are just as jukable, just as subject to over-emphasis by logframes and donor tickboxes, as any other proxy. These are problems with quantification itself, the map versus the territory, not the MDGs in particular.
The MDGs might have been signed by a huge number of developing countries, but they were written almost entirely without them. The original idea, the Millennium Declaration, was developed by a country-club of rich development agencies in hotel conference centers throughout the 1990s. By the time the rest of the world was presented with the Goals, donors had already identified the problems they wanted to solve and the indicators they would use to measure them.
The result, condensing all the world’s development challenges into fewer than 10 goals, has encouraged countries to zero in on donor-approved problems, rather than solving the ones they actually have. Rwanda, according to one analysis, devoted 24 percent of its health spending to HIV/AIDS, even though only 1.6 percent of its population has it. Malaria might be a huge cause of death globally, but in Mongolia, one of the poorest countries in Asia, it doesn’t even register.
Again, it’s easy to say that donors picked too few goals, conducted too little consultation. But consider the opposite scenario, a set of Goals that included every development problem, that were perfectly applicable to every country in the world.
Actually, don’t. Just look at the sequel to the MDGs, the Sustainable Development Goals. Where the MDGs were primarily a tool for donors, the SDGs (stick with me on the acronyms here) have been the most inclusive, taking shape over a five-year, international consultation process that deliberately sought feedback from every institution with an incentive to push their pet issue onto the list.
The result is a jambalaya of impossible ambitions, utopian targets and unmeasurable indicators. Where the MDGs sharpened their attention down to 8 goals and 24 indicators, the SDGs leave no societal challenge behind, comprising 17 goals and 169 targets. Check out everything we, the world, will achieve before they’re finished:
In just sixteen years’ time we will have been able to end poverty in all its forms everywhere; achieve full and productive employment and decent work for all; end hunger and malnutrition; attained universal health coverage; wipe out AIDS, tuberculosis, malaria, and neglected tropical diseases; provide universal secondary education and universal access to tertiary education; end gender discrimination and eliminate all forms of violence against all women and girls; ensure adequate and affordable housing, water, sanitation, reliable modern energy, and communications technology access for all; and (strangely) both prevent and significantly reduce marine pollution of all kinds alongside preventing species loss. If that’s not enough, we will have also eliminated all discriminatory laws, policies, and practices.
This is why I have trouble dragging the MDGs for condensing development challenges down to just a few issues. The MDGs worked, to the extent they did, by coordinating donors around a discrete set of objectives, a consensus on what the world needed to fix and how. That necessarily meant leaving some development problems un-addressed, prioritizing some issues over others. It may sound crass in development, when you’re talking about letting people live with one disease while you work on curing another, but in every other area of human endeavor this is called having a strategy.
The closest thing I come to having a conclusion about the MDGs is that yes, they were bullshit. And yes, they were probably worthwhile.
But I’m not sure the next round of bullshit is going to be. During the 15 years we’ve spent debating the MDGs, the nature of the problem they set out to solve has changed. In 1990, the ostensible start date for the MDGs, 79 percent of the world’s poor lived in stable low-income countries. By 2010, only 13 percent of them did. These days, the vast majority of the world’s poor remain that way either because their countries are riven with conflict (Yemen, Syria, Somalia) or because they have political systems too captured or too gridlocked to be worthy of the term (Zimbabwe, Bangladesh).
In other words, the MDGs may—may—have been the right development initiative for the world of the late 1990s, but they are increasingly irrelevant to the one we have now. Only 1 in 10 poor countries get more than 20 percent of their budget from aid. Even in the poorest countries, domestic health and education are orders of magnitude greater than aid flows. Poor people in China are not poor because their country lacks to resources to make them not be. They are poor because their government would rather spend those resources on high-speed trains.
Maybe that’s a defensible decision for the long-term and maybe it’s not; we shall see. But what the MDGs never did, never could, was pressure governments to develop their own systems to solve their own problems. In 2030, only 8 percent of the world’s population will live in countries classified as “low-income.” Most of the world’s poor will live in cities; many of them will be employed. Informal employment, exploitative working conditions, dysfunctional education and healthcare, they will persist in other countries for same reasons they do in our own.
So did the Millennium Development Goals fail or succeed? I still don’t know. What I do know is that rallying around a set of utopian, un-enforced, top-down targets seems to have worked in the places where development agencies, where we, mattered. If we want to solve the next generation of global poverty, we should ask ourselves where we still do.
In 1913, Henry Ford started paying his workers $5 per day, a huge amount for the time and a more than 100% raise from what they were previously earning. It’s seen as a milestone in modern capitalism, the moment when employers realized that workers were also consumers, that raising their wages created a generation that would buy as well as work.
Last week in London I randomly read The Greatest Business Decisions of All Time, which has a chapter on Ford’s decision and some of the unsightly details of how he rolled it out.
It came with some strings attached. The headline pay was divided into two parts: wages (about $2.40 per day for an unskilled worker) and “profits” (about $2.60 per day). All workers received wages for their work at Highland Park, but they shared in the profits only if they were deemed worthy. Six months’ service was required to qualify.
Married men were eligible, as were men under the age of 22 who were supporting widowed mothers or brothers and sisters. All women supporting families also qualified. But unmarried women and men who were not supporting dependents were excluded.
Ford made it clear that a “clean, sober, and industrious life” was required to receive the higher pay. An employee had to demonstrate that he did not drink alcohol or abuse his family. Moreover, he had to make regular deposits in a savings account, maintain a clean home, and be of upstanding moral character.
Workers who accepted the new wage would also be subject to company rules about how to conduct themselves during off-hours. As Ford explained it, “The object was simply to better the financial and moral status of the men.”
To enforce his lifestyle dictates, Ford mobilized an army of investigators that at one point numbered 200. They were expected, Lacey writes, “to make at least a dozen house calls every day, checking off information about marital status, religion, citizenship, savings, health, hobbies, life insurance, and countless other questions.” To help them meet their quotas, Ford provided each inspector with a new Model T, a driver, and an interpreter for help in ethnic neighborhoods.
I know this sort of thing isn’t all that surprising, but it really does bum me the fuck out. This is exactly what people mean when they talk about privilege. Here was one of the best jobs, in one of the nation’s most economically dynamic cities, and it was only open to men who were the right religion, the right background, who passed the similarity test by their bosses.
I remember chatting with a retired government worker from Belfast at a conference a few years ago who told me that he had a set of interview questions to determine which candidates were Protestants and which ones were Catholics. What primary school did they attend? What neighborhood did they grow up in? What sort of work did their parents do?
It’s appalling, this, not to mention wasteful, and it makes me wonder the ways we do this now. As a gay person, I always feel a bit guilty about the fact that I’ve never experienced any discrimination directly. I’m pretty invisible; by the time people find out I’m gay I’m usually hired.
We talk a lot in this country about how quickly we’ve all made the turnaround on gay rights, and I wonder how much has to do with gay people’s ability to pass these little tests. We were already in the boardrooms and behind the judicial benches way before it was safe to do. Once it was, we had friends and colleagues who had a financial incentive in keeping us there. Most other marginalized groups never get that chance.
One of the weirdest things about my visit to the U.S. was all the comments I got on how I look. Once or twice a week, some random person would come up to me and ask me about my workout routine.
At the gym, 7 in the morning, this guy in his early 40s stops me as I’m leaving.
“Hey kid, I’ve got a question,” he says.
“Um, I’m 33…” I say.
“What do you do, or not do, to look like that?”
This happened other places too. A member of my rock climbing club invites me to dinner, asks me what—‘if anything’—I’m allowed to eat. A barista asks what diet I’m on, whether I do yoga. I order a drip coffee and he says ‘I guess you’re not allowed to drink Frappuccinos, huh?’
The first weird thing about these comments is that I’m not in very good shape. As I’ve chronicled here extensively, I don’t go to the gym with any kind of strategy or diligence. My eating habits are more Jurassic Park than Julia Child. Even with the dimmest of lighting, the generous-est of Instagram filters, I don’t even have one pack, much less six.
The second weird thing is how these compliments always came in the form of a question, as if I know something other people don’t. The guy at the gym that morning, he wanted to know exactly what my eating and exercise routine was, like there was some technique I had mastered or secret vegetable I was growing in my backyard. Even my friends, people I’ve known since I was 10, familiar with my indolence, my sitting-down tummyrolls, press me: “Come on, you’re drinking protein shakes, right?”
I never get comments like this when I’m in Europe. Ever. The obvious reason for this is because I’m closer to the median BMI there, plus so many standard deviations below the median height that no one even notices what kind of shape I’m in. But I’m convinced there’s something else going on too: Europeans aren’t marketed to as much as Americans.
I have no, like, data-data on this, but after living on both continents, I really notice how much more intermingled fitness and commerce are in the United States. In Copenhagen, everyone you see cycling has a modest, slightly rusted old bike. Men ride upright on ladybikes, women roll to work wearing jeans and high heels. In the U.S. it’s all titanium frames, spandex, shoes with those little clips on the toe. In Berlin, jogging is something you do in old sweatpants. In the U.S., it’s an activity that requires moisture-wicking pants and barefoot shoes.
It’s like this with diet too. Americans have entire categories of foods that Europeans don’t. Omega 3 energy bars, creatine powder, recovery drinks. Somehow we went straight from making these up to believing it was impossible to be in shape without them.
This, I feel like, is where the ‘what do you do, man?’ from baristas and fellow gymmers comes from. People think there’s a trick, a shortcut, a specific thing I’m eating or drinking or doing that keeps me (relatively) height-weight proportionate. Like I’m gonna say ‘asparagus water!’ and that will unlock the secret for everyone else.
That’s what marketing has sold us: Not a specific product, but the idea that there’s one we’re missing. Our bodies are set up to respond to our habits, the decisions we make 80 percent of the time. The economy, however, is set up to sell us something new every day, to feed us ‘superfoods‘, to sign us up for Crossfit, to tell us again and again that fit people don’t have better genes or routines, but make better purchases.
Like I said, I’m not in good enough shape to give out food or fitness advice, but what I told the Americans who asked me about my workout regime the last few weeks was that I try to eat lots of fruits and vegetables and do something exercisey that I like every day.
“Shit,” the guy at the gym said that morning. “I was afraid you were going to say that.”
I know I’m belaboring these now, but I’m learning a lot from all the people writing in to add points and arguments to my Myth of the Ethical Shopper article. Here’s one from Glen, a project manager at a contract manufacturer in Shenzhen:
Awareness is the first step, and this article does an excellent job of pointing out that contract manufacturing will always result in unfair labor practices. The smaller companies are the biggest offenders because their order sizes don’t warrant the attention of “golden factories”. Not that Apple and Wal-Mart are good examples, but their manufacturing is some of the cleanest out there… After working for a contract manufacturer in China for several years, I can give you a quick glimpse of how it looks in China in relation to this article:
1) Wal-Mart gets caught with unfair labor practices > people protest > Policy reform
These reforms are pushed on factories that really want to improve, but mostly they want the business. They reform simply to keep the business.
2) Factories conform to reforms > operation costs at factories go up > Factories lose money
Making these changes and being socially compliant come at a HUGE cost to the factory, but larger customers will not accept the increased costs to reflect in their orders. Suddenly, factories are losing a lot of money, but they can’t lose Wal-Mart as a customer. Most Wal-Mart-contracted factories operate at zero margins just for the business. They’ll use the molds to remake products under other brands to sell in China.
3) Factory finds cheaper factory to do their production
The original factory might do 20% of the order, but they’ll contract “shadow factories” to do the bulk. These are your “sweatshops”, they don’t exist on paper, but they make up easily 95% of the factories out there. Now, the large Wal-Mart orders can once again turn a profit, because costs are reduced by manufacturing at the shadow factories.
4) Factory becomes an audit mill.
Passing an audit is a big deal, especially the strict standards of Wal-Mart compliance. The factory can now make large sums of money fronting for other companies and factories. They will host audits on a regular basis, to give compliance to hundreds of other companies. A company might not even have a factory, but they’ll get compliance to make products. Now they can make products wherever they want, and when it comes time they can set up their front at the fake factory. Most companies do this.
5) No reason for factories to TRULY conform to regulations
Now that these workarounds are in place, it’s quite easy to get certified without even having a factory. So now that most factories are off the map, they have no incentive whatsoever to follow anything close to standards being set in the USA. Everyone is protected by the “golden factories” that are running fake audits and essentially covering for the ones doing real production runs. Foxconn is a golden factory. Their conditions are incredible compared to those of 99.9% of factories in China. In over 4 years working in China I have never set foot in a factory that is as clean and compliant as Foxconn.
6) Audit companies get in the game as well.
For MANY if not MOST inspection companies in China you can’t pass an audit unless you pay a bribe. Usually $1000/inspector is enough. Even if your factory really is perfect, you need to pay off inspectors to get the certification.
7) American companies have no control
US companies might know this is happening, or not…. it really doesn’t make a difference. Companies that are aware will distance themselves intentionally so that they’re not liable or seen as negligent. Companies that aren’t aware really truly believe that they are covering their bases.
8) The danger of trade companies passing an audit.
Our trade company passed the [Shoe Company Inc.] audit on a factory that doesn’t exist (we used the name of our company as the factory and the inspection took place at a factory we contracted specifically for a social compliance audit). Now that the trade company has passed this certification, we can make products ANYWHERE. It’s a step beyond the factory using contract manufacturers. Most trade companies are lying to their customers, so it’s incredibly difficult to know if you’re working with a trade company or a real factory. In my experience it’s almost always a trade company if you don’t have boots in the ground in China.
9) When a company issues a RFP (request for proposal), they are essentially GUARANTEEING that their products will be made in some of the nastiest ways possible.
This is very common for companies in our space, sports accessories. Companies like [Shoe Company Inc.] will essentially say some requirements for a product, and they’ll send that to all of their licensees. Those with licensing rights to the brand will contact their suppliers to have them compete for the best prices. Trade companies are typically the supplier they contact, and those trade companies will contact all of their connections for the best price. RFPs are are designed so that the companies like New Balance will get the best and cheapest deals for the required products they need. It’s a beautiful system for the brand, because they do no sourcing whatsoever, and they hold no responsibility whatsoever on how the product is being made.
10) Trade companies intentionally used as a buffer.
I don’t think this is news to you, but some companies with use trade companies because they understand the process. This will keep them legally exempt from issues and can blame the trade company for hoaxing them on their labor practices. A lot of companies know this and I’ve had several people tell me to just “do what we do” to make sure things work on our end.
11) The yoga mat industry in China is disgusting
Just a comment to add here. I did a sourcing project for a [Shoe Company Inc.] request for yoga mats. The factories I saw we’re disgusting. I literally saw a naked baby standing in a pool of water just yards away from where the finished goods were being stacked. These were all TPE yoga mats, and I found it ridiculous that in the factory they were printing logos that said “eco-friendly”. Anything that is so simple to make is going to eventually make its way to these kind of factories.
I chose not to use that factory and instead went with a better factory (still wouldn’t pass an audit, but who does?) for the proposal. We didn’t get the business, it was beyond their budget. Had I used the prior factory we would have fallen within their price target…
This is the current state of things. There isn’t an easy fix. There aren’t regulations to solve this. All I know is that with more awareness solutions will be worked out in the future. I know a lot of these points were made in the article, but I felt they needed repeating. These are truths that I wish all consumers could know and understand.
Go read Glen’s blog it’s hella good!
Six weeks ago, I changed my Grindr status to “Instead of ‘hey’, feel free to start by telling me something interesting about yourself!”
I got, shall we say, a variety of responses.
Some of them shared a little
Some of them shared a lot
Some of them were educational
Some of them wanted to get the icebreaker out of the way
Some of them diversified their portfolio
Some of them seem like we would be friends
Some of them went to Oberlin
Some of them could write a great blog
Some of them got meta
Some of them were having a stroke
Some of them taught me about my own shortcomings
Some of them have busy Christmases
Some of them needed a hug and hot cocoa
Some of them spoke in intriguing metaphors
Some of them had MBAs
Some of them sent dick pics
Some of them did better on their second attempt
Some of them required follow-ups
Some of them misunderstood the assignment
Some of them would have made fascinating conversation partners
Some of them humblebragged
Some of them confirmed negative stereotypes
Some of them read their horoscope every morning
One of them, at least, was husband material
In my Solutions Journalism network interview I said
I talked to someone at a well-known labor NGO about this and he said he has three staff members. The best way to stretch that into impact is to go after Apple, which can improve conditions for hundreds of thousands of employees with a snap of its fingers. Or at least that’s the perception. Individually it’s understandable. But collectively, it means no one is looking at where the worst violations are.
The next day I got an e-mail from Kevin Slaten, a Program Coordinator at China Labor Watch. He’s the guy I was talking about. Here’s what he said.
I did not say that we just focus on Apple, Michael. We focus on companies that have major buying influence in a given factory or industry supply chain–which includes Apple, among many other buyers which CLW has reported on over the past 15 years. Look at CLW’s report database for a list of reports by industry and related brand companies.
While I understand the general point you are making–lots of manufacturing takes place in small firms–you failed to mention the sectoral (or even broad economic) pull-on effect from raising the bar among large groups of workers: it changes the expectations and demands of other workers. We talked explicitly about this logic. (An additional academic paper bearing out this point.)
For example, ever since the Yue Yuen show factory strike in April 2014, in which as many as 60,000 workers demanded arrears on years of unpaid insurance, workers all around the region (and even throughout China) have increasing protested over this exact issue. Workers’ consciousness has been shifted.
Another example: when I did field work for my MA in NE China (on labor rights defense), workers in an industrial zone (with hundreds of thousands or millions of workers) from different companies would talk knowledgeably about their working conditions relative to the industry or region. This caused many people I interviewed to “vote with their feet” and find better work. It radicalized others to protest.
To put it in the terms you used: workers in smaller and more abusive plants are more likely to protest or find a new job (starving the poorer plants of labor) if those workers believe that there are better conditions elsewhere. In this interview (and in your article) you focus on the concept of increasing amounts of products going to countries whose consumers seem to “care less” about sweatshops. Putting aside the factual accuracy of this statement for now (there have been lots of anti-sweatshop protests in Taiwan, HK, and elsewhere in E. Asia), it ignores the power of improving working conditions at key locations within an industry.
Anyway, most of the above information is context. My reservation is with your characterization of our interview. Your description suggests that our organization just focuses on Apple; this is not an accurate characterization of the interview or CLW’s work.
Sorry to Slaten for mischaracterizing our interview. He’s right, their reports offer a lot of nuance I didn’t capture in my piece. Go read ’em!
Here’s another follow-up to my article, originally posted on the Huffington Post.
So on Wednesday I wrote this article for Highline arguing that consumer movements are never going to end sweatshops. The worst conditions are in sub-contractors, small workshops and factories producing for emerging markets. We can lean on multinational corporations all we want, they don’t have the information or the power to ensure decent factories, and neither do we.
Since the article came out, much of the reaction has been two covers of the same song. Either ‘Well I buy my T-shirt from sustainable brands’ or ‘Well I only buy local.’
Let me be super clear about this, in words I might have minced in the piece itself: that is impossible. And pretending it’s not is exactly what keeps sweatshops from being solved.
First, your T-shirt. Let’s say it really was produced by an American company, made in the USA, by people earning a living wage, and that wasn’t just a marketing ploy to get you to pay more for it.
Congratulations. But just because something was sewn together in the United States doesn’t mean that’s where it’s actually from. The vast majority of the world’s textiles are produced in India and China. For my article I asked a CSR manager of an international brand—you don’t wear it, but you’ve heard of it—how they monitor textile factories. ‘Oh we don’t,’ she said. ‘No one does.’
And that’s not the last layer. Most of the world’s cotton is bought and sold like oil, a commodity, consolidated in huge markets in Dubai, zig-zagging through middlemen. It’s hard to find out what country it comes from, much less how it was produced. As the Environmental Justice Foundation puts it, ‘six of the world’s top seven cotton producers have been reported to use children in the field.’
Then there’s how it got to you. Shipping is one of the least scrutinized industries in the world. Boats are in international waters, employees work around the clock, they dump weird stuff into the ocean. Who’s going to stop them?
But let’s pretend for a minute. Let’s say your T-shirt was produced in a decent factory, with decent textiles and decent cotton, that it came to you on a decent boat. Fine. That is one thing. Think of all of the stuff you buy. Your dental floss. Your furniture. That spatula you bought at the dollar store.
You can’t choose three or four products where’d like to avoid complicity in forced labor and low pay, and just decide not to worry about everything else. Your coffee might be fair trade, but what about the machine you’re brewing it in? Check the bottom, dude, I’ll bet five bucks it was made in China. Your car was welded together in Mexico, from iron ore mined in Brazil, smelted in Paraguay. The acetaminophen you take for a headache was produced by a company that keeps poor countries from producing generic medicines for its own people.
The point here is not to gloat, or to play the coastal-elite “I’m more ethical than you” game. The point is, you do not have the power or the information to implement your values. None of us want to promote sweatshops or poison tropical rivers. But we all do. No amount of label reading or better buying will escape this fundamental fact.
But that’s not the point either! The real question is, even we could buy ethical products, would that improve working conditions in the developing world?
In 1750, the Quakers concluded that slavery was an unjust institution and spent the next century advocating to abolish it. Imagine if, instead, they came up with a certification, a commitment that they wouldn’t buy clothes made from slave-picked cotton.
Think about what a gift that would have been to slave owners. All they had to do was rope off a section of their plantation, hire workers, then charge extra for ‘slave-free’ cotton. It would have been perfect: They make more money, get the Quakers off their back and, the best part, get to keep their slaves.
This is how we’ve spent the past 25 years: Instead of advocating to end the conditions that offend us, we’ve done exactly the thing that allows them to proliferate. Auditors told me that some factories in China are divided up with thick black curtains. Since brands only inspect the lines making their own products, suppliers can keep conditions however they want in the rest of their factories.
This is what you’re doing when you buy a fair trade T-shirt or an organic avocado: Concentrating your attention on the tiny corner of the global economy that is not shrouded to you. Instead of raising the floor, you’re raising the ceiling. Fair trade allows us to go around bad institutions and let the worst sweatshops remain, rather than take responsibility for the myriad ways in which we reward them.
“Many global actors assume there’s an institutional void, but there isn’t,” says MIT’s Matthew Amengual. “The state is involved. Positively or negatively, it’s there. Rather than transcending local institutions with global rules, we should be trying to work with them.”
What he means, and what I’ve seen again and again in the developing world, is that sweatshops don’t happen without the participation of their host governments, and they don’t get solved without them either.
One of the reasons India’s garment sector, to take just one example, is so exploitative is that only 2 percent of its textile factories use shuttle-less looms. Without equipment to make them more productive, the only way factories can compete is by extending shifts and keeping pay low. In China, 15 percent of textile factories have shuttle-less looms. The government provides loans and grants, it has deliberately invested in making small factories more productive. India’s own Ministry of Textiles boasts that its desperately poor workers are a competitive advantage: “Rising wages and cost of living in countries closely competing with India,” says the agency’s strategic plan, “provides a vast opportunity for India to capitalize.”
Domestic systems are decisive, and the lack of them can be devastating. Functioning courts, independent unions, empowered civil society, free media, this is the stuff that solves sweatshops, not companies with better CSR policies, not improving the performance of just a few factories. Comcast doesn’t treat you like shit because it’s an evil corporation, it does so because it’s a monopoly, because our government allows it to be one. Sweatshops happen for the same reasons.
Whenever I go on this little rant in front of my fair-tradey friends, they always give the same response: “Hey, it’s better than nothing.” I think that’s the worst argument ever, but for a second let’s entertain the possibility that it’s not. If that’s our only criteria, there’s a lot of other “better than nothing” stuff we could be doing instead. Give money to a NGO that helps register unions in the developing world. Sign a petition. Write your senator.
Our primary leverage over the developing world comes in the form of market access (bilateral trade agreements, TPP, the World Trade Organization) and financial instruments (the World Bank, the IMF, export credit). Companies lobby to protect their interests in these negotiations, and it’s about time we started doing it too.
These steps are small, slow, unlikely to leap us to instant improvements. But isn’t the argument of the boycotters “If everyone acted like me, things would get better”? Well if everyone put pressure on the institutions that can actually eradicate sweatshops, we might actually solve them. Otherwise, we’re just drawing the curtains.
I’m working on a longer follow-up to respond to some of the reader responses to my article, but for now, I’ll quote some people who know way more about this topic than me, on what my article got right and wrong.
First up, here’s a note I got from one of the auditors I interviewed for the article:
One thing that I hear repeatedly nowadays is that we can’t forget the role of government. We focus on CSR and what companies should be doing but we can’t forget that companies are primarily acting on these issues because local governments are failing to uphold international obligations to protect human rights, to adhere to treaty obligations, and to enforce their own national legislation, which is often much stricter than anything in any buyer code of conduct.In addition, we can’t be prescriptive about solutions. The West doesn’t have superior solutions. If we want to know what needs to be done, we need to talk to the rights-holders themselves to understand what they want and what they need. In other words, participatory solutions are critical and much more valuable than anything we can dream up in isolation. When communities are engaged holistically in developing solutions, they own that process and it can impact the outcomes much more positively than anything being imposed from the top down.…
When considering the shift of consumer power away from the global North / West, we shouldn’t forget that there is still a lot of financial influence, via organizations such as the World Bank, regional development banks like ERDB, ADB, IADB, and of course investors like state funds and SRIs [socially responsible investors].If you look at the numbers, there are trillions of dollars backed by SRIs alone. But more than that, financing options for many of these institutions are linked to ESG commitments [environmental, social and governmental]. Loans are routinely linked to compliance with things like IFC Performance Standards covering issues from environment and labor to community impact. Funding can be suspended or terminated for non-compliance. Complaint mechanisms allow communities or activists to lodge complaints with ombudsman offices, like those in the IFC and OECD.Last year, I did an investigation into a land rights issue in Asia and found myself in the field alongside a regional investor who was also investigating the issue and working with their client to bring them into compliance.
What workers in the global South need is not better international labor standards, but rather the freedom to organize themselves and demand better standards for themselves. You point out that Foxconn in Indiana is not a sweatshop. It’s not just because the US has good institutions; it’s because the US had a strong labor movement that won basic things like safety laws, weekends, the minimum wage, etc.
I think we have to ask ourselves why these same movements and institutions don’t exist in the global South. And the reason, as far as I can tell, is that the governments of global South countries have been explicitly prevented from nourishing them. The history of structural adjustment from the 1980s onward was a process of actively dismantling state institutions, forcing domestic economies open to the flux of global markets, and rolling back wages and labor standards. If global South countries did otherwise (if they bolstered state institutions, increased wages, etc), they could be sanctioned by the IMF, and have loan capital withdrawn.
Today, this pressure comes mostly in the form of investor-state dispute mechanisms, which are written into free trade agreements. Through these mechanisms, multinational corporations have the power to sue sovereign states for introducing laws (like labor and safety laws) that compromise their expected future profits. And then of course there’s the Doing Business rankings, which also actively pressure global South countries to deregulate.
I think another way to approach the issue is to ask why workers in sweatshops are willing to take jobs that are so terrible. And the answer, of course, is that they have no other choice. And, as a result, they have very little bargaining power. Let’s go back to the US again. Workers were able to successfully bargain for better conditions in factories because they had a real alternative: they could pick up land in the midwest on the cheap, and become farmers (and, later, they had a passable welfare state that allowed them the option of not taking dangerous jobs and still surviving). If they didn’t have that option, chances are we wouldn’t have the weekend today. The same can be said of global South countries. The rise of sweatshops was preceded by a long process of dispossession, of actively kicking people off of their land (and then later dismantling what little welfare mechanisms existed). Without any other options for survival, people are forced to accept sweatshops jobs. This continues today in the form of land grabs; i.e., Fred Pearce’s book.
Voting power in the IMF and WB is still terribly, absurdly skewed [basically, rich countries get more voting power]. They keep making noises about changing this in response to outrage from developing countries, but the most they’ve managed is a little bit of window-dressing.
The WB still uses structural adjustment programs. In the 1990s, they had to rhetorically back down from them because of the riots and global outcry, but all they really did is change the name to Poverty Reduction Strategy Papers. The main difference is that PRSPs must be drafted by the loan recipient, as opposed to the WB, but of course everyone knows the papers have to include structural adjustment if the loan is to be granted. The brilliance is that this allows the WB to evade liability for any disasters that might ensue as a result of the policies, since the recipient country technically offered to adopt structural adjustment policies voluntarily.
As for the WTO: it’s stalled, and for good reason… because global South countries refuse to bargain on unfair terms any longer. But now bilateral trade agreements are proliferating as a way of getting around this.
And from a friend who works at an international institution working on private-sector human rights abuses:
You rightly criticise the auditing industry as fraught with design flaws and full of suppliers who have become highly adept at fooling the auditors. But at the same time, while it’s not a silver bullet, it is one of the best approaches a company has to the issue at the moment. Sure it doesn’t fix the extire global problem. But it fixes small corners of it, and it is those small corners that the company is most worried about, because its business touches upon them.
And yes, some things do get past auditors. But many violations are caught that way, and prevented too. I often compare it to checking my kids room after I’ve told them to clean it. Just the fact that they know it will be checked, means they do a sufficient job (although they still try to fool the auditor by kicking junk under the bed and stuffing it in the back of the closet).
So I wouldn’t be overly dismissive of supply-chain auditing, although I recognise it’s not a global solution, it’s just a band-aid. Because I want companies to keep doing it and to continue to try to perfect the practice (which today is more sophisticated, and includes supplier capacity building). This continued practice will help keep the pressure up, while at the same time, it will allow us to experiment at the micro-level with various good practices, which can then be exported into a global solution.
You are right in identifying the country-challenges in supply chains, like when you compared conditions in Mexico to China. But even those country-challenges can be changed by the pressure from big business. I remember speaking with [giant apparel company] about their experience in Pakistan. They told the Govt of Pakistan that they would not allow their suppliers or licencees to source from Pakistan because the labor conditions were so poor that [the company] couldn’t afford the risk.
So the Govt of Pakistan asked the ILO for help to improve their labor conditions so that they could attract the business. That’s definitely a dynamic we want to encourage with other big buyers. And it’s a dynamic which has a positive spill-over into the really critical aspect of the problem – those suppliers which are producing for the domestic market, rather than for the big Western buyers.
Also, if you’re interested in why Nike’s approach to its suppliers hasn’t improved conditions in them, check out this great Richard Locke lecture from a few years back.