The export of hazardous industries to newly industrialized countries.

Abstract

The majority of investment in manufacturing industries in the newly industrialized countries come from foreign companies or investors. This vital source of new jobs and capital for the development of infrastructure brings with it some very significant longterm costs in environmental remediation and workers' compensation insurance that are seldom discussed with candor. These costs may be considered a necessary step on the road to industrialization by many developing countries. But the longterm costs may be high enough to sustain the relative poverty of the country. Moreover, the absence of value added in the process of manufacturing may insure the continued economic dependence on foreign interests. The inadequacy of international environmental law is of concern to a few important organizations. But the extent of environmental degradation in many newly industrialized countries warrants far more effort at regulation and enforcement. Likewise, the high levels of worker fatalities and injuries in developing countries remind us of the need for international cooperation and health and safety program development.