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6093: Re: Re: 6076: On low-paying factory jobs (fwd): Poincy comments (fwd)

From: mark gill <doctorgill@clas.net>

Jean Poincy wrote:
> To sum up, the sound economic argument is not about the presence or
> absence of the sweatshops in Ayiti and the low wages. It revolves
> instead around the non/existence of linkages between the factories and
> other economic sectors in the production process. This is a basic
> economic logic when speaking of economic development. The failure to
> address it through these lenses makes all arguments hollow and
> fruitless.

***we have discussed before whether the manufacturing jobs that existed
actually contributed to economic development, and we concluded that, in
fact, they did not.  however, it seems the question now is not whether such
jobs would or would not make a real contribution to development, but whether
Haiti can attract foreign investment of any kind.  i think it safe to
conclude that until the impasse of the last few years is settled, until
stability is ushered in and maintained, all the talk about whether a
particular type of job is "good" or "bad" for Haiti is moot.  there are any
number of issues that must be settled before any new investment, of any
kind, comes to Haiti.

and, regardless of our opinions, we can rest assured that any new
investment, even if made due to cheap labor, will be allowed in Haiti, with
the usual tax incentives, etc.  as i recall Preval some months ago making an
investment pitch in New Orleans, cheap labor costs was one of the "features"
of the presentations, along with tax incentives, etc....from all that i
gather, when possible investors are "wined and dined", the low labor costs
are a offered as an incentive in order to get the investment.

m gill