Social Science Research Council (SSRC) The Development Imperative: Toward a People-Centered Approach, New York: SSRC, 2005, 87-105. Executive Summary
This paper examines some of the issues raised by the new division
of labor that is now emerging. It is primarily concerned with
the rich economies of the North, in particular with the employment
impact of trade with low-wage economies. In view of current
protectionist sentiments in the North, this is an important
topic.The paper begins by describing what has already happened in
the manufacturing sector.This is followed by an examination of the
rapidly growing North-South trade in services, in particular the
development of “offshoring,” whereby service activities that were
previously performed at home are transferred to other countries.
The paper concludes with a brief case study which illustrates why
competition with low-wage economies is a subject of legitimate
concern in rich countries.
Copyright 2005 SSRC
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