Table of Contents

Leading Issues in Competition, Regulation and Development

Leading Issues in Competition, Regulation and Development

The CRC Series on Competition, Regulation and Development

Edited by Paul Cook, Colin Kirkpatrick, Martin Minogue and David Parker

The book draws together contributions from leading experts across a range of disciplines including economics, law, politics and governance, public management and business management. The authors begin with an extensive overview of the issues of regulation and competition in developing countries, and carefully illustrate the important themes and concepts involved. Using a variety of country and sector case studies, they move on to focus on the problems of applicability and adaptation that are experienced in the process of transferring best practice policy models from developed to developing countries. The book presents a clear agenda for further empirical research and is notable for its rigorous exploration of the links between theory and practice.

Chapter 10: Ethical trade: issues in the regulation of global supply chains

Richard Heeks and Richard Duncombe

Subjects: development studies, development economics, law and development, economics and finance, competition policy, development economics, law - academic, law and development, politics and public policy, regulation and governance


Richard Heeks and Richard Duncombe INTRODUCTION The growth of globalisation, including international trade, is typically regarded as a two-sided coin; bringing both benefits and problems. Implicit within many commentaries on problems is an assumption of market failure: that, left to their own devices, global production and international trade will fail to adequately reward and protect workers and their communities in the South. Put another way, the assumption is of failure to deliver public goods, such as good wages and working conditions; and of success in delivering ‘public bads’, such as pollution (Lee 1997). Ethical trade can be defined as regulatory initiatives that seek to improve the social and environmental impacts of global supply chains. By definition, then, ethical trade can be seen as an attempted solution to a perceived problem of market failure, and it represents a growing form of regulation. Despite the name, trade per se is typically not the main preoccupation of such initiatives. The focus has been more on the conditions and impacts of production. For example, there has been a concern with International Labour Organisation core labour standards: freedom of association and right to collective bargaining, abolition of forced labour, elimination of child labour, and elimination of employment discrimination (ILO 1998). Code SA8000 includes all these, and adds health and safety, disciplinary procedures, remuneration, working hours, and management systems (SAI 2001). These issues of labour standards are the typical fare of ethical trade, but there has recently been recognition of the overlaps with, and value of...

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