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The Effects of Consumer Bliss on Welfare Economics
Authors:William A Barnett
Abstract:Some developed countries have sought to counteract what they see as unfair competition faced by their domestic industries arising from the employment of child labor in the production of consumer goods in developing countries by including a "social clause" in the World Trade Organization (WTO) charter. Many people and civil society organizations in developed countries are also genuinely concerned with child labor employment purely on humanitarian grounds. In this paper we have argued that a more appropriate approach to tackle the child labor problem would be to facilitate acceleration of growth in developing countries through greater, not less, integration of these countries into the world trading system. We have also argued that directing development assistance for improving institutions and social infrastructure would be more effective than trade sanctions.
Keywords:labor standards  child labor  WTO rules  trade sanctions  South Asia
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