International Economics: IB Economics

I've 'scooped' this not so much for the theory but because it could make for an excellent starter activity: can students identify all the economic issues illustrated in this photo essay about gold mining in the Democratic Republic of the Congo.

There are so many things that merit attention: from elasticities, to development, to externalities, to development and lots of areas for discussion, developing the notion of 'value added' and miners' pay, workers' rights, and questions about fairness in society.

Another article about workers' rights and protectionism. It's an interesting call to effectively embargo the products of one company because of allegations of forced labour - particularly, in an ally and a relatively well-established democracy - and it would be interesting to see the evidence that the US Customs and Border Protection (CBP) has.

It raises wider questions about whether this is a genuine issue, or whether it's a covert form of protectionism. Equally, you might ask whether we should expect developing nations to have the same standards of workers' rights and environmental protections that we'd expect in developed countries. 

In short: we shouldn't. These things are 'luxury goods' and would remove a large part of the competitive advantage that these nations have; similarly, it would also conveniently ignore the fact that we previously got rich as a result of being able to exploit these lower standards .  

An unusual angle on trade, with the news that the EU is putting pressure on Cambodia to increase political freedoms and show more respect for human rights, by threatening the country's current tariff-free status. That could have adverse implications for both development and the living standards of individuals.

Of course, we're still happy to buy our oil from the Middle East, however...

Another fascinating IMF clip looking at how having different levels of workers' rights has impacted on the fortunes of workers during, and after, the coronavirus pandemic. 

There's a particular focus on inequality, and the clip also highlights the differences between the formal and informal sectors of the economy. 

And the Guardian editorial on the issue...

Whilst it's easy to agree with the sentiment associated with this article, as an economist, it also raises some harder questions. 

No one doubts that workers' rights are important, but is it appropriate to ask for universal workers' rights - not that I'm arguing that the article argues for this. However, what are the appropriate rights? 

Pete Pattisson highlights some aspects of working conditions that are clearly poor, but I'm not convinced by the assertion that "forced labour...is commonplace" in Malaysia. And if you think that the majority of Samsung workers are engaging in a mutually beneficial exchange, then it's harder to justify some of the impassioned rhetoric deployed.