#4398: Gill's case on textile industry is no case: Poincy replies

[Robert Corbett <bcorbett@netcom.com>]

From: Jean Poincy <caineve@idt.net>

I am wondering why Mark thinks that Ayiti's textile industry must
revolve around the international market? While, he is making a case for
stiff competition affecting the US local market, he says nothing in
regards to the Ayitian local market that is to be the focus of the
textile industry. I don't get the comparison between Ayiti and the US. 

Mark does not specify what aspect of competition that propels US firms
to move. I am sure he is referring to cheap labor (wrong or right?).
Controlling labor cost is one sure way to be competitive on the
international market. If cheap labor is what would make these companies
competitive, it makes good economic sense to seek for it. The wage
structure and labor movement in the US would reduce the competitive
advantage of any company willing to operate in the US. Cheap labor is
not a problem with Ayiti. 

However, if technology is what Mark is referring to, he has no argument
because the US has it. He would be right in Ayiti's case, because Ayiti
does not have it. Technological progress is considered and was discussed
in my previous posts.

The wage structure and the labor movement in the US make menial
production activities difficult to hold strong in the US. Even
Puerto-Rico which used to be the main recipient of US firms in search of
cheap labor got caught in the wage labor movement whirlpool in the US
due to its relationship with the latter. When US firms were fleeing
Puerto-Rico to avoid high wages and labor movement, Ayiti was elected as
a favorite recipient for its cheap labor. 

Another justification for relocating some forms of production is that
more complex and technical forms of production are considered the domain
of the First World while the menial activities are relegated to the
Third World.    

Mark keeps arguing that the international market is harsh without
proving the impossibility for Ayiti to be competitive one day. That's
beside the point since the local market is the target at the initial
stage and the Caribbean market at the subsequent stage. The
international market is to be considered last. I am speaking of the
graduation of the industry during which a load of experience will be
gained.

The sugar and the coffee industries are no textile industry. My comment
Coffee Vs. Textile explains why. Sugar is not immuned. 

I am sure that Mark does not think that my suggestion of a textile
industry would embrace the economic policy framework of today and
yesterday. 

As far as the physical constraint or limitation of Ayiti, Mark seems to
say that the land can never ever regain fertility. Do we know of any
part in nature that can never know revival under proper care after years
of depletion? If there is such a place, I would be glad to know the
geological factor making its "re-fertilization" impossible. Even if left
alone without the action of mankind, it will become fertile again.
Hiroshima, within weeks after the bomb, started to grow weed. Mark,
convince me.


Ayiti has lived, lives and will live
Mozeb