History

Look, the concept of corporate exploitation can be seen coming from a multitude of angles. On December 27, 1945 the IMF and World Bank were established to help in assisting poor nations and overseeing the “global financial system(1).” Power in these organizations is distributed on the bases of monetary contribution, meaning the powerful stay in control and the poor just take it. If a country were to sign up for help, they would have to concede to the structural adjustment programs which promote an export economy. While they promote this export economy, for cash crop of course, they try to increase foreign investment by lowering strains on tariffs. Seem fishy?

These two organizations are headed by economist and financial lawyers. Just to make it clear, Ben Bernanke (Head of US Federal Reserve), is the alternate governor for the membership on the IMF board for the United States. Fiscal policy makers are running the inequitable system. No wonder when a poor nation, assigned under the IMF, economy begins to weaken they raise income taxes to increase governmental revenues and balance the budget deficit (1).

In the late 1970’s the real incomes of capitalistic nations increased, and with that the unemployment and underemployment of these same nations(2). In the 1980’s manufacturing jobs increased in areas such as, Korea, Taiwan, and Malaysia(2). It is obvious that the movement of corporations outside major capitalistic economies to small low wage economies was a better way of creating this brand of globalization and the consumer image.

While the IMF, World Bank, NAFTA, and other global organizations undercut the humanitarian views eloped in fiscal policy, trade agreements, and investments into poorer economies they continue in believing in a far fetched trickle down theory. In essence we are all prone to feeling the effects of structural adjustment programs imposed on impoverished nations and outsourcing imposed on america.

1. IMF. Wikipedia.org. 3 Feb 2008.

2.Grunberg, Isabelle. 1998. Perspectives on Globalization and Employment. New York, NY: UNDP, pp. 50-66.

Another angle:

By the late 1980’s many manufacturing jobs have been shipped overseas to increase operational effeciency. Around this time as well, the stock market has experienced a crash, mutual funds and many corporations within those funds are searching for ways to save what is left. The cost cutting strategy of offshoring and outscouring became a major benefit to all corporations. The dollar compared to other overseas countries was at this time very strong. There was yet to be a euro and many unsettled conflicts that gave way to questionable foreign investment.

This cost cutting measure evitually spread to other sectors of business. From manufacturing to service and now technology; outsourcing became the future for the global economy, and a new fad for the ’80s. In 2008 there are lobbyist, sentors, congressmen and women, state supreme courts making the future decisions concerning the unregulated levels of outsourcing. It is also becoming a problem for many business people as well. With the proposal that the United States will very soon (within the next decade) move from American Accounting to International standard accounting, there will have to be a move to disclose the difference within the domestic and outsource revenue. When this information is made available-if at all- what will this information call for?