We have discussed sweatshops and outsourcing in class in reference to labor markets and free trade. Of course trying to defend sweatshops is difficult, but one must look at the alternatives to see the benefits. Working in a sweatshop is often seen as climbing the ladder for many workers in developing nations. In fact NY Times columnist Nicholas D. Kristof makes the case that sweatshops may be the best hope for many people in developing nations. (Thanks to the Mankiw blog for the link)
The best way to help people in the poorest countries isn’t to campaign against sweatshops but to promote manufacturing there. One of the best things America could do for Africa would be to strengthen our program to encourage African imports, called AGOA, and nudge Europe to match it . . . among people who work in development, many strongly believe (but few dare say very loudly) that one of the best hopes for the poorest countries would be to build their manufacturing industries. But global campaigns against sweatshops make that less likely.
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