Global Health Watch 1 in one file
Global Health Watch 1 in one file Global Health Watch 1 in one file
Health and globalization | A1 Even as labour income is stagnant or declining for many workers, their hours, workloads and work speed are rising rapidly, not only in Canada but in almost all OECD countries. Workplace stress, work-related mental health problems and physical illness are rising in parallel, as is the number of workers experiencing difficulty in managing both work and family life (Higgins et al. 2004). In ageing societies where social provision is being cut back, as in North America, increasing numbers of working people like Tom will have to meet the demands of elder care as well. The multiple dimensions of work-related insecurity are important sources of stress: workers are unsure not only about their present employment and income and prospects for the future, but also about the shrinking safety net of unemployment and welfare transfers (ILO 2004b). Canada’s contribution to labour market flexibility has been a massive 60% decline in spending on supports for unemployed workers, as a percentage of GDP, in 1991–9 (OECD 2004a). Cutbacks in the national unemployment insurance system were a major factor in the government’s ability to balance its budget after years of running deficits, but they made it much harder for Tom, and others like him, to collect benefits after they lost a job and to survive on them – reducing the percentage of unemployed workers eligible for benefits to levels not seen since the original legislation of the 1940s (Rice and Prince 2000). It is not a great leap to Tom’s accident from what the data tell us about the physical and mental health risks of part-time, insecure and precarious employment. In Canada the risks are increased by the post-NAFTA integration of North American labour markets. Above and beyond the ‘offshoring’ of jobs, Canada has increasing difficulty in setting social and labour market policies independently of the US. Especially in central Canada where Tom’s accident occurred, manufacturing industry is tightly linked to suppliers and customers in the US and the price tag of independence – measured in job losses, capital flight and forgone tax revenues – is high and almost certainly rising. Canadian trends and policy responses therefore bear watching as early warning indicators of the challenges globalization will present for high income countries. Conclusion The fundamental health challenges inherent in our contemporary global political economy – equity and sustainability – have been central to the struggle for health for the past century. Addressing them requires some form of market-correcting system of wealth redistribution between as well as within nations. Globalization, as we know it today, is fundamentally asymmetric. ‘In 40
its benefits and its risks, it works less well for the currently poor countries and for poor households within developing countries. Because markets at the national level are asymmetric, modern capitalist economies have social contracts, progressive tax systems, and laws and regulations to manage asymmetries and market failures. At the global level, there is no real equivalent to national governments to manage global markets, though they are bigger, deeper and if anything more asymmetric. They work better for the rich; and their risks and failures hurt the poor more’ (Birdsall 2002). The national and global are linked. Globalization’s present form limits the macroeconomic, development and health policy space in rich and poor nations alike. Liberalized capital markets ‘sanction deviations from orthodoxy’ (WCSDG 2004), that is, anything that limits the potential for profit, and have ‘added to the speed at which, and the drama with which, financial markets bring retribution on governments whose policies are not “credible”’ (Glyn 1995). Between nations, liberalized trade still benefits high- more than lowincome countries; and its rules-based system is frequently ignored or undermined by countries such as the US when its outcomes are not in their interests. Developing world debt is ‘perhaps the most efficient form of neocolonialism’ (Bullard 2004). And the wealthy world’s responses to disease crises sweeping many parts of the low-income world, while belatedly improving, are woefully inadequate and eclipsed by huge expenditures on attempts to make the world safer for the rich through increased militarization and decreased civil rights (Oloka-Onyango and Udugama 2003). The discussion of whether globalization and openness is good or bad for the poor should move on to a discussion of ‘the appropriate global social contract and appropriate global arrangements for minimising the asymmetric risks and costs of global market failure’ (Birdsall 2002). What should the contents of such a global social contract look like? In somewhat idealist tones, the World Commission on the Social Dimensions of Globalization urged a rights-based approach in which the eradication of poverty and the attainment of the MDGs should be seen as the first steps towards a socioeconomic ‘floor’ for the global economy, requiring in part a more democratic governance of globalization (WCSDG 2004). Its recommended reforms to move the global political economy in this direction resemble those that have been proffered for at least the past 20 years, as follows: • Increases in untied development assistance to the long-standing, albeit non-binding UN target of 0.7% of rich countries’ gross national income, along with efforts to mobilize additional sources of funding. Health for all in a ‘borderless world’? 41
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<strong>Health</strong> and globalization | A1<br />
Even as labour <strong>in</strong>come is stagnant or decl<strong>in</strong><strong>in</strong>g for many workers, their<br />
hours, workloads and work speed are ris<strong>in</strong>g rapidly, not only <strong>in</strong> Canada but<br />
<strong>in</strong> almost all OECD countries. Workplace stress, work-related mental health<br />
problems and physical illness are ris<strong>in</strong>g <strong>in</strong> parallel, as is the number of workers<br />
experienc<strong>in</strong>g difficulty <strong>in</strong> manag<strong>in</strong>g both work and family life (Higg<strong>in</strong>s et al.<br />
2004). In age<strong>in</strong>g societies where social provision is be<strong>in</strong>g cut back, as <strong>in</strong> North<br />
America, <strong>in</strong>creas<strong>in</strong>g numbers of work<strong>in</strong>g people like Tom will have to meet<br />
the demands of elder care as well. The multiple dimensions of work-related<br />
<strong>in</strong>security are important sources of stress: workers are unsure not only about<br />
their present employment and <strong>in</strong>come and prospects for the future, but also<br />
about the shr<strong>in</strong>k<strong>in</strong>g safety net of unemployment and welfare transfers (ILO<br />
2004b). Canada’s contribution to labour market flexibility has been a massive<br />
60% decl<strong>in</strong>e <strong>in</strong> spend<strong>in</strong>g on supports for unemployed workers, as a percentage<br />
of GDP, <strong>in</strong> 1991–9 (OECD 2004a). Cutbacks <strong>in</strong> the national unemployment<br />
<strong>in</strong>surance system were a major factor <strong>in</strong> the government’s ability to balance its<br />
budget after years of runn<strong>in</strong>g deficits, but they made it much harder for Tom,<br />
and others like him, to collect benefits after they lost a job and to survive on<br />
them – reduc<strong>in</strong>g the percentage of unemployed workers eligible for benefits<br />
to levels not seen s<strong>in</strong>ce the orig<strong>in</strong>al legislation of the 1940s (Rice and Pr<strong>in</strong>ce<br />
2000).<br />
It is not a great leap to Tom’s accident from what the data tell us about<br />
the physical and mental health risks of part-time, <strong>in</strong>secure and precarious<br />
employment. In Canada the risks are <strong>in</strong>creased by the post-NAFTA <strong>in</strong>tegration<br />
of North American labour markets. Above and beyond the ‘offshor<strong>in</strong>g’<br />
of jobs, Canada has <strong>in</strong>creas<strong>in</strong>g difficulty <strong>in</strong> sett<strong>in</strong>g social and labour market<br />
policies <strong>in</strong>dependently of the US. Especially <strong>in</strong> central Canada where Tom’s<br />
accident occurred, manufactur<strong>in</strong>g <strong>in</strong>dustry is tightly l<strong>in</strong>ked to suppliers and<br />
customers <strong>in</strong> the US and the price tag of <strong>in</strong>dependence – measured <strong>in</strong> job<br />
losses, capital flight and forg<strong>one</strong> tax revenues – is high and almost certa<strong>in</strong>ly<br />
ris<strong>in</strong>g. Canadian trends and policy responses therefore bear watch<strong>in</strong>g as<br />
early warn<strong>in</strong>g <strong>in</strong>dicators of the challenges globalization will present for high<br />
<strong>in</strong>come countries.<br />
Conclusion<br />
The fundamental health challenges <strong>in</strong>herent <strong>in</strong> our contemporary global<br />
political economy – equity and susta<strong>in</strong>ability – have been central to the struggle<br />
for health for the past century. Address<strong>in</strong>g them requires some form of<br />
market-correct<strong>in</strong>g system of wealth redistribution between as well as with<strong>in</strong><br />
nations. <strong>Global</strong>ization, as we know it today, is fundamentally asymmetric. ‘In<br />
40