Political Economy of Southeast Asian Borderlands: Migration, Environment, and Developing Country Firms

Abstract

Borderland zones in Southeast Asia have become sites of increased economic investment for developing country firms, intra-regional and transnational corporations. As a result of deregulation, these investment opportunities have led to the exploitation of natural and human resources in an unsustainable and unjust way. This article argues that the flows of people and natural resources across borders are connected intimately and that this has been facilitated politically by the acceptance of the porosity of territorial boundaries by all governments in the region and the imperative to export environmentally degrading development projects into neighbouring countries where political mobilisation on environmental issues is much less effective. Conveyed through a series of cases studies (on resource extraction, dam and reservoir construction, and working conditions in apparel companies), this article explores how developing country companies comply with the codes of conduct on corporate responsibility on human rights, labour standards and environmental sustainability) within the context of the governance of the global supply chain.

Key Words:

• Developing country companies
• environmental sustainability
• corporate responsibility
• migration
• labour unions
• Global Compact

Notes

By “unsustainability,” we mean environmental deterioration that will inhibit opportunities for future generations to live a comparable life without infringing the entitlements and obligations of future generations.

Stakeholders are constituencies affected by the decision of a company but can exercise some leverage within the company, through deliberative engagement, i.e. stakeholders, as opposed to the wide range of the constituencies affected by the decisions of the company, are regarded as having legitimacy in corporate decision making (see Thompson, 2004).

The Thai abbreviation stands for “Project to Resettle Poor Villages in Degraded Forests.” Launched by the Thai government (Forest Department) and Army in 1991, this resettlement programme was aimed at reforesting degraded and encroached reserve forest land. According to Missingham (2003: 34), the programme, if implemented fully, would have affected 5.8 million villagers nation-wide. It ignited “rural mobilization and protest, especially among villagers and NGO activists in the Northeast” which was the first target area of the programme.

Exports to Vietnam are also planned, scheduled for 2012.

There are a significant number of small-scale projects to generate power involving private Thai companies engaged in surveying, design and construction but the scale of these projects is such that they are unlikely to deliver the energy needs of Thailand's modernization programme.

While Thai companies may negotiate with local tribal leaders, for the most part, this is informal and additional to their arrangements with the Burmese military. Some of the surveying work has been disrupted but it remains unclear exactly which groups are involved. The Thai companies involved have stressed that their activities are in accordance with agreements of all parties involved. We chose the word “compliance” carefully; compliance may not mean consent in call cases.

The million metre deal refers to a logging concession which would give a million square metres of timber to 20 Thai companies. The Cambodian government was sanctioned by the IMF for failure to disclose the sale leading then IMF Director Michel Camdessus to cut off $20 million in budgetary assistance that it planned to disburse in June 1996 (see Cousens et al., 2000: 106).

Trade among the five member countries of ACMECS – Thailand, Burma, Cambodia, Laos and Vietnam – is currently valued at $US2.5 billion (Bt102 billion) per year and is expect to increase (The Nation[Bangkok], 13 October 2005).

Many observers suggest the need for a more comprehensive analysis of ownership and management in Mae Sot factories.

In summer 2007, all FTI companies were claiming to now pay the minimum wage (135 baht), but this is yet to be established, even if they are there is still the problem of illegal deductions (communication from Kevin Hewison).