Regional integration and the dualism of economic and social policy : the dilemma for foreign direct investment and trade over occupational health and safety : a policy re-alignment for the Southern African Development Community [SADC]

Nkowani, ZP

Abstract

The central thesis of the study is that social and economic policy are
two sides of the same coin and that at the heart of any functional
regional integration is the recognition of this dualism. The study takes a
critical look at the debate vis-a-vis, trade, investment and labour and
its implication for occupational health and safety standards for
developing countries.
Regional integration among developing countries is part of a wider
strategy to promote equitable growth and not an end in itself. The
thesis contends that effective regional integration for SADC will
increase competition, reduce private transaction costs, and enable
firms to exploit economies of scale, encourage inward foreign direct
investment and facilitate macroeconomic policy coordination.
Through out the thesis the author maintains that regional groupings
must be open towards the world market in the sense of keeping tariffs
at a level that does not encourage trade diversion. They should not
attempt a form of regional autarky that has led to past failures. Open
regionalism complements unilateral liberalisation. Without regional
coherence, unilateral liberalisation may imply negative spill-over
effects. A regionally coherent liberalisation strategy will cushion the
shocks of adjustment to a global economy. The high adjustment cost of
unilateral liberalisation has been a cause of policy reversal in the region
in the past. The discussion is set against a background of possible tensions between
social and economic policy and priorities and attempts to indicate
that in real terms there is no conflict rather only complimentarity exists.
It submits that, it is the understanding of this relationship that is often
wanting. The study is set in the Southern African Development
Community (SADC). It traces SADC's social and economic policy in
historical context in an attempt to diagnose the problem. Although the
findings and conclusion of the study may not be representative of
developing countries generally and geographically specific, they do
illuminate some of the regulatory dilemmas developing countries face
in their endeavours to dock themselves to the global economy and the
task of complying with norms and standards obtaining therein.
The thesis proposes a policy formula that recognises the dualism of
social and economic policy in SADC's integration programme. This is
premised on the assertion that economic gains of integration are likely
to be wiped out by adverse social effects of economic integration if
the social considerations are subordinated to the economic concerns
for integration. A holistic approach to regulation, promotion and
reconciliation of potentially completing social and economic priorities
is proposed involving civil society and social partners (state, employers
and employees).
Background
Globalisation of the world trading system and economic order is
revolutionizing and redefining traditional legal borders and has raised
the need for sector specific legislation to respond to specific
complexities in particular areas, while on the whole the dynamic
nature of modern economic activities give way to a need for an
evolutionary regulatory system that could swiftly respond to changes in
the world of work.
It can not be disputed that general labour law could in a majority of
cases be unsuitable to the day to day occupational health and safety
problems. The same could be said of the health and safety law in
general, vis-d-vis, sector specific health and safety issues. This is not to
suggest that government should legislate for everything, as that would
be an impossible task. However as a starting point, there is need for a
framework legislation that would give guidance and leadership in as
far as health and safety management is concerned.
The process of globaliation 11 has brought another dimension to the
problem. There is a global dimension which demands a global or a
multifaceted approach to regulation of occupational health and
safety standards involving government and its social partners.
Unfortunately in most cases the law has not kept pace with socioeconomic
changes. In such a scenario, in pursuit of corporate profit
and foreign direct investment, worker welfare sufferes and
unscrupulous businessmen exploit state systems while governments do
little towards the welfare of the workforce.
Multinational corporations with sophisticated networks working in
developing countries and transitional economies have at times
managed to escape effective regulation with adverse consequences
for the workforce, the environment and the public in general. As the
opposition to linkage rages on, the quest for effective management of
health and safety standards remains a contentious issue.
What role can the economics of occupational health and safety
standards and practices play in SADC's regional integration and how
can economic forces can be brought to bear on the social regulation
of the market? Can SADC as a regional bloc press on with a social and
economic programme that makes it attractive as an investment
destination whilst minimizing adverse social effects of the process?
In view of the complex nature of the issues involved, the sheer scale of
financial and human capital required and the supranational nature of
the problem, a supranational approach to the problem is ideal.
This thesis advocates the dualism of social and economic policy and its
interplay in regional integration. The thesis finds that the problem in the
past has been a policy misconception. There was a misplaced hope.
that economic progress would naturally translate into social progress. In
this formula social policy was to evolve as a by-product ot economic
policy, which has proved to be wrong.
The study argues that social and economic policies are two sides of the
same coin. It displaces the World Trade Organisation's argument or
reluctance to link labour with trade and investment. The central
argument is that the international trading community can not only be
interested in 'products' and ignore the 'production process'. The
author uses SADC as a microcosm of the global political economy and
places the discussion in that context.

Citation

Nkowani, Z. Regional integration and the dualism of economic and social policy : the dilemma for foreign direct investment and trade over occupational health and safety : a policy re-alignment for the Southern African Development Community [SADC]. (Thesis). Salford : University of Salford

• Thesis Type: Thesis
• Deposit Date: Oct 3, 2012
• Additional Information: Additional Information : Vol.1
• Award Date: Jan 1, 2005