Fairness in International Trade (The International Society of Business, Economics, and Ethics Book Series, 1)

This book arises out of papers delivered at the World Congress of the International Society of Business, Economics and Ethics (ISBEE) held in Cape Town in 2008. There are two sections. First, a number of key papers provide an insight into global business, wealth creation and welfare issues with particular reference to the African continent - appropriate for a Congress that was based in South Africa and drew wide participation from African scholars. Second, it provides the output from a global research project on "Fairness in International Trade" which ran over the two years prior to the Congress. This project drew together the work of scholars in five regions across the globe and is the first time that such a global perspective has been attempted. This book is aimed at academics working in the area of international trade or development economics particularly those who have an interest in the ethical dimensions of trade. It will also be of interest to students of development economics and business ethics particularly at Masters and Doctoral level. Contents Contributors Introduction to Fairness in International Trade Part I: Economic Development, Wealth Creation and Africa Part II: Fairness in International Trade A Global Perspective Part I Economic Development, Wealth Creation and Africa 1 The Bottom Billion and What We Can Do to Help 1.1 Introduction 1.2 Paul Collier References 2 A Rich Concept of Wealth Creation Beyond Profit Maximization and Adding Value 2.1 Need for a Fresh Look at the Creation of Wealth 2.1.1 Winners and Losers in the Process of Wealth Creation Over the Last 50 Years 2.1.2 Wealth Creation: A Blind Spot of CSR? 2.1.3 What Is the Economic Underpinning of ''Maximizing Shareholder Value'' and ''Adding Value''? 2.2 Conceptual Clarifications: What Is the Creation of Wealth? 2.3 Challenges for Business Ethics 2.4 Conclusion References 3 Cultural Values, Economic Growth and Development 3.1 Introductory Background 3.2 The Issues at Stake 3.3 Making Sense of the Neo-liberals Claim 3.4 Questioning the Link Between Self-Interest and Economic Growth 3.5 Viewing the Principle of Self-Interest Against Its Historico-cultural Background 3.5.1 Human Sovereignty 3.5.2 Individual Sovereignty 3.5.3 Freedom 3.5.4 Private Property 3.5.5 Materialism 3.5.6 Reason 3.6 Cultural Values, Economic Growth and Development: The Necessary Link 3.7 Linking African Cultural Values to Africas Economic Growth and Development 3.8 Conclusion References 4 Black Economic Empowerment and the Post-Apartheid South African Quest for the Domestication of Western Capitalism 4.1 Lay Peoples Discussion on South African Black Economic Empowerment (BEE) 4.2 Introduction 4.3 BEE/Ingidenisation/Africanisation and the Colonial Heritage 4.4 BEE/Indigenisation/Africanisation and the Problem of Emulation 4.5 BEE/Indigenisation/Africanisation as Mistaken Policies 4.6 BEE/Indigenisation/Africanisation and Global Capitalism 4.7 Conclusion References 5 Ethical Sourcing and Moral Responsibility in Global Business: Is the Common Good the Missing Factor? The Case of the Cut Flower Industry in Kenya 5.1 Introduction 5.2 Kenya Floriculture in Global Business 5.3 The Concept of Ethical Sourcing and Social Responsibility in Global Business: The Problematic of Its Application in the Kenya Cut Flower Industry 5.3.1 Flower Labelling Program (FLP) 5.3.2 The Ethical Sourcing Audits 5.3.3 Business Management Models, Ethical Sourcing and Social Responsibility 5.3.4 'Ethical Sourcing' Under the Agency Model of Business Management 5.3.5 'Ethical Sourcing' Under the Stakeholder Model of Business Management 5.3.6 The Betrayal of MSP-Generated Base Codes in Kenya Cut Flower 'Ethical Sourcing' Audits 5.3.7 Exploitation: A 'Grassroots' Experience in the Cut Flower Industry in Kenya 5.4 Common Good: The Missing Factor in Ethical Sourcing and Social Responsibility in Global Business 5.4.1 Globalization and Ethics 5.4.2 Ethical Sourcing and Social Responsibility from a Common Good Perspective 5.5 Conclusion and Recommendations 5.5.1 The Role of Global Business 5.5.1.1 The Principle of Human Dignity 5.5.1.2 The Principles of Beneficence and Non-maleficence 5.5.1.3 The Principle of Justice 5.5.2 The Role of International Bodies 5.5.3 The Role of Political Authorities References Part II Fairness in International TradeA Global Perspective 6 Fair Global Trade: A Perspective from Africa 6.1 Introduction 6.1.1 Personal and Hermeneutical Limitation 6.1.2 The Complex Notion of ''Africa'' and Its Dire Socio-economic Development Needs 6.2 Historical Background to the Current Debates About Fair Global Trade 6.2.1 The Slave Trade 6.2.2 Colonialism13 and Post-colonial Africa 6.2.3 The Evolution of the Contemporary Monetary and Trade Regime 6.3 Africas Expectations of the WTO and Doha Trade Negotiations 6.3.1 Values 6.3.2 Participation 6.3.3 Agenda 6.3.4 Trade Liberalization and ''Aid for Trade'' 6.3.5 African Union Initiatives and the Question of Identity 6.4 Differential Treatment and Prioritarian Justice 6.5 Ubuntu as Guiding Philosophy for a New Trade Regime? References 7 Fairness in International Trade and Investment: Latin American Challenges 7.1 Introduction 7.2 Fairness in International Trade 7.3 Perception of Fairness in Workings and Outcomes of the WTO in Latin America 7.4 Ethical Issues Regarding the WTO in Latin America 7.4.1 Protectionism and Barriers Suffered by Latin American Countries 7.4.2 Sustainable Development and the Environment 7.4.3 Moral Norms Framework 7.5 Developments in Latin America to Address the Ethical Issues 7.6 Final Considerations References 8 Fairness in International Trade and Business Ethics: A Japanese Perspective 8.1 Introduction 8.2 Formal Position of the Japanese Government on the WTO 8.2.1 Free Trade and the WTO Are Indispensable for Development 8.2.2 Provisions on Exemptions Are Necessary 8.2.3 List of Annexes 8.3 From the WTO-Centered to the Bilateral EPA Approach 8.3.1 Shifting to Bilateral Economic Partnership Agreements 8.3.2 Five Characteristics of Japan's EPAs 8.3.3 Is the WTO Effective and Fair? 8.3.4 Is the Outcome of Japan's EPAs Fair? 8.3.5 Is the Process of Japan's EPAs Fair? 8.4 A Typical Ethical Issue for Japan: Protecting Rice Farming 8.4.1 Issues of Agriculture 8.4.2 High Tariff Rates on Agricultural Products 8.4.3 Mutli-functionality 8.4.4 Food Security 8.4.5 Other Factors: Environmental Impact and Food Safety 8.4.6 Protecting Rice Farming 8.5 Reconsideration of Globalization and the WTO: Poverty Reduction 8.5.1 The Ultimate Purpose of Globalization in the Original Position 8.5.2 Criticism Against the WTO 8.5.3 The Ultimate Purpose of the WTO 8.5.4 How to Make Use of Globalization 8.6 Initiatives by the Japanese Government: TICAD and MDGs 8.6.1 World Food Crisis and TICAD IV 8.6.2 Boosting Rice Production in Africa 8.6.3 Sustainable Management of Water Resources 8.6.4 Major Initiatives Related to Millennium Development Goals (MDGs) 8.6.5 Mobilizing Private Sector and Japan's ODA Policy 8.6.6 Establishing Economic Infrastructure in the TICAD Process 8.6.7 MDG Initiatives in the TICAD Process 8.7 Initiatives by Leading Japanese Corporations: Education and Basic Infrastructure 8.7.1 Contributions Corporations Can Make 8.7.2 Improvement of Educational Environment 8.7.3 Improvement of Basic Infrastructure 8.8 Summary and Closing Remarks 8.8.1 Answering the First Question 8.8.2 Answering the Second Question 8.8.3 Answering the Third Question (1): Protecting Rice Farming 8.8.4 Answering the Third Question (2): Poverty Reduction 8.8.5 Remaining Issues References 9 Fairness in International Trade and Investment: North American Perspectives 9.1 Introduction 9.2 Bilateral and Multilateral Trade Relations in North America: Recent Developments 9.2.1 Three Asymmetries 9.2.2 North America and the WTO 9.3 Several North American Normative Perspectives on Fairness in International Trade and Investment 9.3.1 Protectionism and the Prevailing Liberal Views of Fair Play 9.3.2 The Liberal Search for Distributive Justice 9.3.3 Questions, Criticisms, and Dissent from Non-liberal Perspectives 9.4 Open Political Processes and Fundamental Considerations 9.5 Fairness and Transfer Pricing 9.6 Conclusion References 10 Fairness in International Trade: The Case of Economic Partnership Agreements 10.1 Introduction 10.2 The Background to EUACP International Trade Relations 10.3 Economic Partnership Agreements and Their Predicted Effects and Associated Issues 10.4 The Stop EPAs Campaign 10.5 EPAs The Current Situation 10.6 Assessing Fairness in International Trade 10.7 An Assessment of the Fairness of EPAs 10.8 Conclusion 10.9 Appendix 1 10.9 Appendix 2 References Index