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Labour and Employment Conditions in Export Processing Zones: A Socio-Legal Analysis on South Asia and South Pacific (Working Paper) [1998] JSPL 11; (1998) 2 Journal of South Pacific Law

Labour and Employment Conditions in Export Processing Zones: A Socio-Legal Analysis on South Asia and South Pacific*

by Mohammed Ahmadu
Lecturer

School of Law
University of the South Pacific

Introduction

The need for change from import-substitution-industry to export-led-industrialisation programmes particularly by developing countries, renders the establishment of export processing zones necessary. Export-processing zones are usually regarded as means of attracting transnational enterprises to invest in export manufacturing.

Establishing an export processing zone is often considered as a policy objective directed at enhancing a country's productive capacity in manufactured goods, especially for the world market. However, in most cases it is an isolated export effort by governments to achieve the best production and export results within the shortest possible time.

In addition, export processing zones are expected to assist in the attainment of a nation’s development objectives. These include creation of jobs, training of skilled workers, increase in foreign exchange earnings and probably technology transfer.

In an attempt to realise these objectives, quite a growing number of countries in South Asia and to a later extent South Pacific island nations (of recent Fiji), now provide or are expected to provide either export processing zones or similar facilities at individual off-shore facilities.

Although fewer countries operate export processing zones in Western Asia, and in the South Pacific, the number currently offering export processing conditions either nationally or at specific sites, together with specific incentives for export production is growing. ⁱ

Establishing an export-processing zone raises interesting questions pertaining to employment effects and labour conditions in the various spheres of activities. For instance, Asia accounts for a little more than half of all export processing zones employment throughout the developing world. Within the Asian sub-continent, the concentration of employment is in three countries. This represented about 57 per cent of the region's export processing zone employment. However, 94.5 per cent of this region's employment can nevertheless be found in only eight countries or areas. ⁱⁱ

Scope of the paper

The paper concentrates on employment effects and labour conditions in export processing zones in South Asia the South Pacific. In particular, it discusses how transnational enterprises generate direct or indirect employment in export processing zones, as well as, in other sectors of the economy. In addition, it examines the prevailing socio-economic and legal conditions of employment by looking at the structure of the labour-force in export processing zones.