Thursday, August 16, 2007

Foreign Labour in Dubai - the less glamourous face of globalisation


The NYTimes published an article about foreign labour in Dubai - and, despite some good efforts, it wasn't a great article, but definitely worth a read and not too long, so read it!!!

Foreign labour meant here is the poor, primarily from the Indian subcontinent but also from other poor Arab countries, which works in construction or other handy jobs. No, not the people who sip their chococcinos (that’s hot chocolate and coffee) sitting in their fancy offices in the Emirates Towers, to go ‘home’ to their fancy hotels... (inside joke here, never mind).

It’s the guys who find themselves working outdoors in 50 degrees Celcius, sometimes mistreated, and most often disillusioned. Those who haven’t gone home in 3 years, either because they can’t afford to ‘waste’ the plane ticket money or because they’re illegally here and will be unable to get back in Dubai afterwards.

The article described the bad work conditions, from the day they pay $3000 to an ‘employment office’ in Delhi to get a job in Dubai, to their day to day struggle with difficult jobs, mediocre work conditions, missing their kids back home.

Some friends and I had an interesting discussion about it actually, which started with Patrick quoting this section of the article in an email:

“Faced with complaints about low wages and difficult work, Mr. Kaabi (Min. Of Labor) repeats a point often made here: Many workers face greater hardships at home for less pay. “We don’t force people to come to this country,” Mr. Kaabi said. “They’re building a whole new life for their families.” Some come from backgrounds so impoverished, he said, “they don’t know how to use the toilet; they will sit and do it on the ground.” But Ms. Whitson of Human Rights Watch said, “That’s what exploitation is — you take advantage of someone’s desperation.”


Patrick described the reply as ‘powerful’. I beg to differ.
First because the lady from HRW (an organisation I’m not very fond of, unlike Amnesty International) is mixing up concepts here.

True, very often the rights of these workers are often flouted. They are forced to work during the summer’s peak sun hours, when most of us dread the thought of waiting outside our air-conditioned buildings for 2 minutes to hail a taxi.

Second, because the Kaabi dude is partly right: for many workers - not those quoted in the NYTimes article, obviously, because if they interviewed them it would be good journalism... :-P being in Dubai is indeed a great opportunity. That’s what international movements of labour are all about: workers out, remittances in. A house, education for the kids, etc. We were living the same in Egypt (still are, to a certain extent, but far less than in the 80s and early 90s).

AND, let’s face it: that’s the way the markets work. Supply, demand, clearing price. True, it is a example where the market clears at an ugly price (low salaries) and this is indeed capitalism in its most extreme form. But that’s how the world works; THIS is not exploitation, sorry HRW. It’s business practices.

Real exploitation, however, comes with forcing workers to work in insane summer temperatures; packing them in lousy unsanitary houses; cheating them of their pay, in cutting corners on safety measures and helmets in work places. Now THAT is exploitation. It is illegal, and if it isn’t, it damn well should be.


So where do we, chococcino sippers in fancy neckties, fit in this picture?
For Taufiq, it starts with pausing ‘to ponder how many workers died to make our ascent possible’ as we ride an elevator in a tall building; to let ‘our minds wander to the
laborers forced to live in makeshift camps in the desert’ when we enjoy an air-conditioned restaurant.

Okay. Then what?
Corporate Social Responsibility, says Patrick - for the government to include safety measures and other such basic things in their standard work practices.
Now that sounds like a logical thing to do, and should actually be obtainable.

Revolting against low salaries and bad big businesses making money off the back of their poor workers is ineffective. Perhaps even counter-effective.

I actually wonder whether mixing up the basic Human Rights issues (mistreatment, safety procedures, etc) with those of extreme capitalism doesn’t weaken the first. Meaning, crusading for better salaries and better sanitation in the housing complexes can lead to a rejection of the complete lot of demands, even though the latter should be completely inarguable. I think we should separate what we argue for - whether we agree with the way markets settle other things or not.

Damn, I’m such a free-marketer. The Kennedy School will disavow me.


(PS: Photos from the NYTimes, same article. you didn't really think I took these, did you??
PPS: If I ever get deported, please dispatch a good lawyer.
PPPS: the previous sentence was a joke. (well, mostly).

7 comments:

Rachell said...

Mohamed, I am perplexed to read that you are such a "free-marketer", I wouldn't have imaged that from you. :(

I did liked the reply by Ms. Whitson because that is exactly what it is -- taking advantage of someones economic desperation. I was talking my with Econ professor this morning and he was telling me about a book he read about a doctor who works with economically disadvantaged people in Haiti and at the same time battling drugs companies (pricing and such). Well, my professor told me that he loved the book and he found the author's diatribe against economics to be rather humours. (My professor is a easy going guy) The reason for that is because as economics we always look at the demand/supply, cost, price, factors of production...etc and forget the "human face" of the problem. :) Yes, I understand how important if for labour workers to find jobs and be in Dubai working (the same can be said for immigrants here in the USA), but at least reasonable working conditions should be exercise.

I found your comment to be interesting: "I think we should separate what we argue for - whether we agree with the way markets settle other things or not." Do you mean that we should fight for labour rights separated from the ills that causes those abuses?

Mohamed said...

Hey Rach!!
Well, what I meant was that we need to focus on arguing for Human Rights - breaks, safety standards, no extra long shifts or work in direct sunlight for extended periods of time, etc.
However we shouldn't go crusading on the account that the salaries are lower than what the workers expected - of course they are. It's sad, but it's demand/supply, as you said.

I think exploitation is taking advantage of people when they have no other option. In the case of your professor, battling unfair pricing of medicine, yes, that is indeed exploitation. But the fact that foreign labour keeps trickling into Dubai, even at the low salaries, I'm not sure this qualifies as exploitation.

You know, normally I'm a fan of minimum/subsistence salaries regulations. but what would the minimum salary be in this case then? why do we assume it'd be more than the salaries offered?

Anonymous said...

Hi,

I know this is a bit off topic, but since you had the opportunity to travel quite a bit I'd like to ask you for a personal ranking of the cities you've seen...so let's say, can you rank Damascus, Amman, Beirut and Dubai...
I know they each have their own feel, but overall which one do you prefer the most after accounting for everything ?

Rachell said...

I see what you mean now. :) Do you see the UAE government complying with basic labour standard? Or do you wish to answer that question after you have leave the country? *smile*

I have another questions for you Mohamed, slightly off topic. My econ professor is making the syllabus for this "global economic" class (with freshmen students). He wants to teach about one country per continent to diversify the content of the class. He asked me to give him suggestion about one Middle Eastern country to teach. Keeping in mind the three components that drives Middle Eastern economics (1. No agrarian land 2. Oil 3. Growing population), I told him a couple of countries...Saudi Arabia, Iran, or UAE. What is your opinion?

Mohamed said...

Oooooh, people asking about my opinion. I'm honoured.

Rachell: a) for the record, one economy per continent or per region? because 'the middle east' is split on africa and asia (well, and europe if you want to consider turkey.. kinda.) Just being picky, sorry.

Seems to me that you're looking into a Gulf Economy rather than a Middle Eastern one. So if you're looking into a typical Gulf economy I wouldn't go for Iran -- it's too large (70m people), too diversified (large services sector), etc. In a word, it's too interesting and too much 'developing country'-like to be your typical Gulf country, if your purpose is to showcase this very specific stype of economy.

UAE: interesting because it's actually a functioning federal state, but also because it is your huge oil rentier country (with a nice GDP per cap of 28000 USD...), with the emirate of Abu Dhabi as the leader in this; in the same time, next door Dubai is almost deprived of oil extracts but is booming as a financial and business location. So that's interesting.

KSA (that's shorthand for Kingdom of Saudi Arabia): It couldn't get more typical than that. The largest oil producer of the globe, huge desert countries that doesn't grow much, little population, some services (religious tourism, etc), government controls most of everything.

So there you go. Most interesting would be Iran, most eyebrow-raising would be UAE, most typical would be KSA.
Hope that helps.

Mohamed said...

Anonymous:
Very tough one :) Prefer for what, Visiting? Backpacking? Working? living and raising children?

I know you said 'after accounting for everything' but it's just so damn hard to answer... Here's an attempt.

Damascus is maybe the most beautiful. Even the streets are pretty. I think I could just.. walk around in the streets of Damascus for days!

Amman seems to manage to make you feel at home in a second. You just don't want to leave! And it's very scenic too, with the houses built on the hills of Amman making a incredible view right at the heart of the city.

Beirut: Beirut is kinda addictive I'd say!! It's really, really fun - there's always something to do, the people are really cool, it's an incredibly 'alive' city..

Dubai: well, it's a hybrid between a giant financial district and a giant shopping mall. It has some nice aspects, and once you get used to it you can really enjoy its cosmopolitanism and the event going on around. But an another level, i think it's a Gulf city that aspires to become London - and it's never going to get there.

I guess my favourite would either be Beirut or Amman.

Are you planning on offering me a free ticket to my favourite destination or something? I this case I'll say it's St-Petersburg. (no, never been there but would absolutely love to...)

Rachell said...

Thanks for answering my question. I did meant region, not continent. Sorry if that wasn't clear. I did told my professor that AEU would be most interesting due to its rapid development so, we will see if he does with that one! :)