Globalisation is slowly shaping the economic landscape and revealing wage disparities across the globe.
As we navigate the digital age, new agendas and challenges are emerging. Currently, globalisation is significantly influencing economic landscapes, presenting challenges and opportunities for developing nations, with multinationals playing a pivotal role in this transformation.
While the initial phases of economic integration often highlight contentious issues such as wage disparities, the long-term implications of these practices deserve a nuanced examination.
The intricate dance between exploitation and development, observed across various regions, illustrates a complex yet compelling narrative of economic evolution. Although working conditions may seem exploitative, they are often part of a larger, transformative process that can lead to substantial economic growth and development.
Multinationals, which have historically paid lower salaries in developing countries than their home nations, are increasingly acknowledging the impact of wage disparities. This pattern is often seen as a modern form of economic exploitation.
However, history has shown that many countries enduring low wages eventually experience significant economic growth. As local economies develop, wages increase, and the workforce becomes more skilled and demanding.
The economic trajectories of countries like South Korea and Taiwan, which transitioned from low-wage economies to global economic powerhouses, demonstrate that enduring low salaries can be a stepping stone to future prosperity.
In recent times, China and India have followed this pattern. The economic rise of China, transforming from a low-wage economy into a vibrant economic powerhouse, serves as a contemporary example of this progression.
Similarly, India’s tech industry evolved from humble beginnings in outsourcing, where workers were paid minimal wages, to developing competitive products and services recognised globally.
Unfortunately, well-paid civil society groups sometimes incite workers to quit their jobs without providing viable alternatives. Such actions, though often well-intentioned, can disrupt the delicate balance of economic progression that allows these countries to gradually elevate their living standards.
Instead of hastily advising workers to abandon their positions, it would be more constructive if these groups focused on advocating gradual wage improvements and better working terms. This approach would ensure a smoother transition for economies and workers alike, fostering sustainable growth and prosperity.
While some jobs may be undesirable or psychologically harmful, employees have the right to refuse such positions. It is imperative, however, to approach this issue with sensitivity and precision, ensuring that the discourse does not devolve into accusations of racial discrimination where none exists.
By focusing on the actual working conditions and advocating for betterment, we can address the root causes of workplace dissatisfaction without diverting into misleading narratives. This balanced approach will help create a more equitable and just work environments for all, fostering mutual respect and understanding in the global economic landscape.
On the other hand, the recent 60 Minutes episode highlighting the dissatisfaction of Kenyan youths with the remuneration for their services to tech companies is likely to result in the relocation of many of these outsourced jobs from Kenya to other countries that are more welcoming.
The true tragedy lies in the loss of opportunities to gain invaluable knowledge necessary for the development of our own artificial intelligence (AI) solutions. Machine learning skills are crucial for developing local language models of African languages, preserving our knowledge systems, and advancing our livelihoods as AI becomes integral to virtually every aspect of our lives.
Despite these challenges, Kenya still needs at least one million jobs annually to sustainably address the unemployment problem. We must be creative as we work towards prosperity. During my student days in the US, we did all manner of jobs and earned pittance just to raise college fees.
We continued to do the same even during job searches to become independent or raise enough capital to start small businesses. The $2 per hour pay, although small compared to US earnings, is higher than an entry-level officer’s salary in the public service.
Therefore, it is essential to navigate this process with careful consideration, fostering environments that advocate for gradual improvements in wages and working conditions. In doing so, we can ensure a balanced approach that uplifts economies and empowers workers.
Embracing this nuanced perspective will enable us to harness the full potential of globalisation, transforming it into a force for positive change that can ultimately lead to sustainable progress and prosperity for the future.
Professionals in the Philippines earn 70 percent to 90 percent less than their colleagues in the US while performing the same duties and tasks. This discrepancy in payment underscores the economic inequalities between countries and the cost advantages that many organizations gain by outsourcing work to the Philippines.
This is how it has been, and it will be until we find creative ways to move out of the disadvantages, we find ourselves in.
Therefore, it is essential to navigate this process with careful consideration, fostering environments that advocate for gradual improvements in wages and working conditions.
In doing so, we can ensure a balanced approach that uplifts economies and empowers workers.
Embracing this nuanced perspective will enable us to harness the full potential of globalisation, transforming it into a force for positive change that can ultimately lead to sustainable progress and prosperity for the future.
The writer is Kenya’s Ambassador to Belgium, Mission to the European Union, Organisation of African Caribbean and Pacific States and World Customs Organisation
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