Date sent: Tue, 18 May 1999 15:38:39 -0400 Send reply to: Forum on Labor in the Global Economy <[EMAIL PROTECTED]> From: Charles Brown <[EMAIL PROTECTED]> Subject: maquiladoras To: [EMAIL PROTECTED] > A forward > > CB > ((((((((((((( > Christopher Parkes on the problems resulting from the rapid growth of > the maquiladora industrial zone > > The need for economic development, long neglected in favour of raw > economic growth and often ignored because of urgent short-term demands, > is more pressing than ever in the cities strung out along the US-Mexico > border. Expansion of the maquiladora industries to the south shows no > sign of slowing, while population growth continues on both sides, > threatening the region with infrastructural and environmental crisis. > Although Mexico's maquilas - which pay no tariffs on imported goods and > components destined for re-export - are due to lose this key competitive > advantage in less than two years, their numbers and payrolls are > continuing to increase. According to Jim Gerber, an economics professor > at San Diego State University, the rise in the number of businesses in > most Mexican border communities has exceeded historic rates for the past > two years. The average number of employees has increased from 240 in > 1993, when the North American Free Trade Agreement was enacted and the > end of the tariff waivers was fixed for January 1 2001, to 330 at the > end of last year. The companies have also grown more sophisticated, > having graduated from unskilled assembly plants to integrated operations > with design and research facilities. As Mr Gerber notes in a new study, > the pattern is not that of a sector dependent for its survival on > customs concessions. Noting that the number of maquiladora > establishments is growing even faster in areas far from the border, Mr > Gerber suggests the sector is becoming incorporated into the mainstream > of Mexican manufacturing. Although the maquiladoras will, technically, > no longer exist after the withdrawal of their incentives, their legacy > will last. Thanks to foreign investment of capital and expertise, he > says, one result could be "a profound modernisation of the entire > manufacturing sectors". Another element will be dynamic growth in the > north of Mexico, where there were 3,051 factories at the end of last > year - a third more than when Nafta took effect. While this spells > relative prosperity for northern Mexico, it will also bring strains both > north and south of the border. According to a paper presented at a > cross-border meeting of US and Mexican government officials this week, > the population of the border region is likely to balloon by 2020 to 25m > people from 11m today. Even in the "best case" scenario, a further 5m > people will join those already clustered in cross-border communities > such as San Diego/Tijuana and Calexico/Mexicali. Mexican numbers will > increase faster, driven by migration and a higher birth rate, while > growth from the US side is expected to continue to be driven by the > steady drift into the Sun Belt states. The trends "portend serious > problems for border communities in terms of infrastructure deficits, > availability of water and energy, and negative environmental impacts on > water, air and natural areas," says the paper from the Southwest Center > for Environmental Research and Policy. "Most border communities are not > prepared to deal with even the best case scenario." Although both sides > have seen substantial job growth, unemployment in some parts in the US > is routinely in double figures, and low wages (prosperous San Diego is > the main exception) mean that many workers require substantial public > assistance. "Thus, many of these jobs require a public subsidy and > consume more taxes than they generate," the report says. In most places, > the inhabitants also consume more water than nature provides. In an > essentially arid-to-desert environment, San Diego imports 90 per cent of > its water, and Tijuana 95 per cent. At Sierra Vista near the border > between Arizona and Sonora, the aquifer has been pumped to such an > extent that the land above has subsided. As for policy solutions, the > Southwest Center touches a sensitive spot with the suggestion for > co-operation such as that seen in Europe, where "anchored by the > European Community and focused on a common purpose by the expanding > single market, this region has experienced a great increase in > trans-border planning efforts and projects." However, while economic > disparities have blurred in Europe, they could not be starker than at > the Mexican border. Even though the southern regions of California, > Arizona, New Mexico and Texas are the poorest part of the US, pay rates > and quality of life are still substantially higher than next door in > Mexico, where the national average hourly compensation in wages and > benefits for a production worker is $1.75, according to federal data. It > will take an injection of more political will than has been evident in > the past, and substantial capital investment, to ensure that development > catches up with growth. One starting point, hinted at in the Southwest > Center report, is a closer alliance between the public, private, local, > regional and federal cross-border agencies in four states now struggling > to overcome the area's deficiencies. A single voice could be helpful in > raising their common cause to a level where it is recognised as an issue > to be addressed as a priority in Washington DC and Mexico City. In the > US, California alone, which expects its population to increase a mere 30 > per cent by 2020, said it needed $100bn in new infrastructure > investment. Down on the border, a recent United Nations report > concluded, the development of the maquila industry "continues to > maintain a rhythm of appreciable growth". Whether it is sustainable is > an issue the UN did not address. Whither the Maquiladora? Working paper > E-99-1, by Jim Gerber, SDSU The US-Mexican Border Environment, a Road > Map to a Sustainable 2020. Co-sponsors: SCERP, Environmental Protection > Agency, Border Trade Alliance ********************************************************************** Jose Marcos-Sanchez Vice-Presidente Programa Laboral de Desarrollo (PLADES) Miembro del Comite Ejecutivo de IFWEA/FIAET Administrador - Lista "Mundo Sindical" Suscribase a: [EMAIL PROTECTED] con el mensaje subscribe sindical ---------------------------------------------------------------------- Av. General Cordova N� 1198 | e-mail: [EMAIL PROTECTED] Jesus Maria - Lima 11 Peru | Telf. (+51) 1 / 470 - 09.54 P.O Box 14-0362 - Lima 14 | Fax (+51) 1 / 471 - 56.42 Peru | **********************************************************************
