Globalization in Saipan

Almost all major corporations use a strategic globalized strategy. These corporate businesses use underdeveloped countries as the locations for their manufacturing plants. I've talked briefly in my earlier blogs about various negative effects that are found within a globalized market. The focus of this blog will help support these indications, as I examine the effects global markets have on the island of Saipan. Saipan is the capital of a United States common wealth on the Northern Mariana islands located off the coast of Japan. Many American corporations have established factories within Saipan. These corporate businesses take advantage of Saipan's tariffs, tax incentives, and minimum wage regulation the US territory has to offer. These large businesses exploit the already weak regulations as they violate many human and labor rights.

The labor force in Saipan is made up of almost all non-resident alien workers, the majority of these workers are women. In order to be hired, workers must pay recruiting fees extending between $2,000 and $3,500 hundred dollars. Many foreigners pay this large fee with the illusion that they will be offered U.S. standards of labor but in actuality the American territory has exemptions from American federal duties allowing them to abuse labor and wageregulations. Minimum wage is only $3.05 and health benefits are minimal if they are offered at all. Women are taken advantage of by the corporations who place their factories in Saipan. In a documentary called "Behind the labels: Garment workers of US Saipan" many of the women who were interviewed reported that managers often held months of their pay. This made it very difficult to pay off their large recruiting fee and profit. After paying the large recruiting fee, working for free for months, and low wages it is almost impossible to make any kind of profit.


In addition to the horrible working conditions and minimal if any pay, they are subject to the harsh rules and regulations of the corporate compound. These rules consist of curfews, forced overtime work without the legal compensation or sometimes even pay, restrictions on certain social behaviors, and rules against becoming sick or pregnant. Disobeying these codes and regulations often leads to suspension or termination. The large recruiting fee leads thousands of individuals to fall into thousands of dollars in debt, creating an influx of crime, health, and social problems within the infrastructure in Saipan. Some women pay these large recruitment fees to sign contracts as waitresses but upon arrival find themselves forced into sexual slavery.

Past employees of the infamous Antonio Benavente fought back against being neglected compensation for their work. Workers sued for 1 billion dollars and won making Benavente the first businessman in Saipan to be convicted for human and labor rights violations, however. This victory against the negative impacts of globalization was bittersweet, as thousand of these workers were never compensated for their back wages totaling over hundreds of thousands of dollars since Benavente fled Saipan immediately after the verdict.

The example of Saipan shows how gobalization is effecting communites and societies negatively, as workers are exploited for basic human and labor rights. We can see the use of our American flag being used unethically to garner interest and trust, as employers promise fair wages, and good housing benefits. These lies only help to harness the increase of crime and poverty as globilzation is becoming a leading economic force.



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www.thegateway.org/browse/2483
www.humanrightsproject.org/vid_detail.php?film_id=1
www.globalexchange.org/economy/