Global industries and local development: labour in the Malagasy garment industry

Abstract

This paper examines some of the challenges and opportunities for development in Africa presented by the globalization of production through a qualitative-historical case study analysis of the condition of labour in the garment industry in Madagascar. It argues that this case demonstrates that attempts to incorporate national economies into the global economy on the basis of a comparative advantage in low-value added, labour intensive industries are unlikely to lead to significant development benefits. The paper first develops a historical overview of the development of the Malagasy export garment industry. It is situated within global and local trends towards economic liberalization, the re-orientation of development finance towards foreign direct investment, and the globalization of garment production. Three main structural features of the Malagasy Zone Franche garment industry are emphasized: the centrality of low cost labour, the dominance of low value added labour intensive activities, and reliance on access to markets in the industrialized north. These structural conditions are reinforced by the fluidity and volatility of the sector. The final section considers the impacts of these structures on labour relations in the garment industry. It argues that these structural conditions have kept wages and working conditions chronically poor. This failure to improve the condition of work is indicative of the weak structural position of peripheral economies and the challenges this poses to private sector-led development.

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