Maquiladora Industry and Environmental Degradation - Essay Example

Avril Ampudia Moreno English 103 April 9, Maquiladora Industry and Environmental Degradation Introduction Maquiladoras industries atthe border of the Mexico-U.S. region are regarded as one of the most dynamic and complex industries in the World. The area is characterized by rapid population growth, urbanization and industrialization. This rapid escalation in population, urbanization and industrialization is influenced by political and economic changes. The Maquiladoras industries are the key players in the economic development and are the chief economic activities at the border region. For instance, within the period of 1993-1998, export from the region accounted for 41.5% of Mexican export volumes (Edward & Andrew 319). Nevertheless, Maquiladora industrial activities have received criticism for their negative impacts on the environment and the criticism is based on impacts from population pressure, traffic and industrial activities (Dietz et al 281). For instance, the water shortage on both sides of the U.S. and Mexico borders are associated with inadequate management of natural resources such as the location of industries as well as the rapid population growth in the region (Edward & Andrew 329). Most researchers concur that some measures not to be taken to curb the environmental degradation that is occurring along this border region industrial zones. Despite these criticisms, the Maquiladoras industries are believed to perform better than non-maquiladoras industries in relation to direct environmental externalities. This is evidenced by the structure of the sector-presence of transforming intermediate goods rather than using primary materials (EPA 89). In addition, these border region industrial zones have offered employment and economic opportunities to groups that were previously marginalized by the Latin American economic system; in some cases this has even resulted in the shifting of gender roles within these communities. However, industrial development as a desired generator of prosperity in terms of job creation and tax revenues often generate negative impacts on the environmental goods and services such as water and assimilation of emissions respectively (Hawken 169). This essay considers both the economic impact the maquiladora communities have created, as well as the environmental degradation that is in great part proportional to this economic stimulation. Rather than prognosticate on the relative moral claims of environmentalists, or the argue towards the need for capitalist expansion within Mexico; through the examination of a number of competing perspectives the essay presents a pragmatic means by which diverse strands of political thought – embodied in the environmental and economic perspectives -- can unite in an efficient and progressive means forward. Maquiladoras Industry and Environmental Degradation While the maquiladora industries have brought a much needed economic influx to Mexico, there has been a disproportionate level of environmental degradation that has occurred as a result of this industry. Mexico, being one of the peripheral states, has faced poverty resulting from political pressure, debt as well as SAP pressure from IMF and World Bank. Poor agricultural performance and the world system that marginalized them economically and politically, have also contributed to such a situation within the country. This led the state to pursue policies that were export oriented in order to attract industries from the core region. The desire to become industrialized and cope with economic problems such as increased unemployment, Mexico agreed to accept any industry that was in offer regardless of whether the industry was hazardous or not (Edward & Andrew 323). Availability of cheap labor in Mexico, lax regulation, and generous tax incentives led to the dramatic expansion of Maquiladoras industries in the mid 1990s increasing from 1,818 in 1990 to 3,486 in 2000 (Edward & Andrew 324). The Maquiladoras plants produce hazardous wastes and other substances, which are not managed effectively resulting in water, air, and soil contamination as well as jeopardizing the health of workers and other people in the neighborhood. The environmental damage and human health risk associated with Maquiladoras industries have led to numerous social and economic consequences such as staggering economic costs, unequal costs and benefits distribution (Edward & Andrew 329). In many respects the economic influx that Mexico has experienced as a direct result of the maquiladora industry has resulted in improved human rights conditions and a progressive shifting of gender roles. In The Farthest Frontier, journalist Martha Brant (1998) uses the Mexican town of Ciudad Juarez to illustrate the shifting nature of gender roles in contemporary maquiladoras. The border location of the maquilas allows them to develop progressive gender reforms that other Mexican cities lag. “Like their American sisters, these women are finding that economic independence -- and gradual cultural change -- are leading to new attitudes about everything from housework to marriage to sexuality” (Brant, pg. 1). Brant discusses the evolution of the Maquilera workers in 1980 from lowly paid and under regarded to their current status as supervisors and sometimes engineers. Clearly drawing a distinction between wealth and social privilege, she argue that the societal shift in wealth that these women have experienced has allowed them more rights and respect as citizens. “As for Arrieta, the 24 men directly reporting to her today dont seem to begrudge her seniority. ‘The culture is a little more open now,’ she says.” The government has even stepped in with progressive reforms, as this summer the Mexican congress will consider reforms to end hiring discrimination based on pregnancy. It’s clear that to some extent the gender roles have shifted because of the economic advantages the maquilas offer. While there has been a progressive shifting of gender roles brought on by the maquiladora border regions, these industrial communities have also functioned as a safe haven of United States companies looking to escape strict environmental laws and costly labor. Sklair (1989) notes that environmental pollution has plagued maquiladora communities for an extensive period of time. Indeed, the United States Geological Survey, the state of California, and the Imperial County Health department all state that the New River which runs along the Mexicali border and ends up in the Salton Sea in California is the “dirtiest river in the United States” (Sklair, pg. 95). The major sources of pollution are raw sewage and industrial wastes. These sources of pollution have been estimated to run into the thousands of gallons, constituting major disregard for environmental concerns and standards. While the pollution indelibly seeps its way into the United States and impacts the environment as well as tax-payer dollars, as evidenced in the New River example, researchers note that the problem is not entirely of Mexico’s doing (Fatemi 1999). A number of United States maquiladora industrial areas have contributed greatly to the population and to the regulatory environment that has disregarded environmental concerns for industrial progress. In fact, a portion of the maquiladora environment problem has been attributed to the extremely strict environmental laws that have been enacted in California, driving many of these industries south of the border. There is also the added benefit of lower labor costs for companies willing to relocate to these border communities. While there is an undeniable economic boom that has occurred among these border regions the question of whether the maquiladora industry is as economically advantageous for the entire Mexican state is debatable. Indeed, there is a fundamental dichotomy that underlines the maquiladora industry that isn’t merely restricted to progressive environmental or human rights reforms but is central to the question of what is best for the Mexico republic. The rapid industrialization that has occurred in these maquilla border regions has resulted in a significant population shift within Mexico, as many unemployed citizens have relocated to these border communities (Kamel 1999). While the traditionally economically dominant groups have gained continued prosperity more marginalized groups have developed into what has been termed by researchers as the “emerging regional bourgeoisie” (Sklair, pg. 96). However, in the rest of Mexico worker wages are in a state of decline, and the shifting of Mexican worker populations toward the border areas might place the economic emphasis in more interrelation with the United States than is prosperous for long-term Mexican development and economic independence. Theorists have argued that the level of environmental degradation is such that the overall well-being of the population is compromised, even when considering the economic boom the maquiladora region supplies. Hawken argues that restoring an economy calls for a rethinking of the fundamental purposes of a business. He says that business should not be limited to making money or to producing and trading goods as well services, but rather should be directed at increasing the general welfare of people by providing services, creating invention and ethical philosophy. He also emphasizes that there is the capacity to develop a very different type of economy that can regenerate and restore the ecology as well as protect the environment while bringing forth innovation, wealth, and true security. Believing that this is not achievable is as a result of the assumption we make that economic forces only exploit and destroy. This is not the inherent characteristic of the economy or the inevitable result of free market systems. It is the outcome of the current commercial system’s framework and use. Commerce has three issues to address, i.e. what it takes, what it makes and what it wastes. This will lead to developing systems that fit the basic ecological principles (Hawken 171). As Hawken (174) observes in his book The Ecology of Commerce the planet has a distinct population to support in terms of goods and services known as earth carrying capacity. The realization of the inability of the natural resource to support sustainably the population and industrial activities should urge the concerned party to quickly find an integration of our wants as exhibited and served by commerce with the capacity of the environment to meet them. Apart from water shortage, the Maquiladoras industry has led to rapid urbanization on the borderland. This has led to more environmental problem such as improper garbage management, inadequate and poor sewerage services, as well as overstretched physical infrastructure (Edward & Andrew 319). The entire environment cannot absorb waste generated by the increasing population and from the many industries. This eventually leads to pollution of soil through soil contamination, ground water pollution, and contamination of rivers, air pollution. It threatens the plant and damages peoples health. While it’s clear that changes needs to be made in regards to enforcing environmental regulations, the means by which this should occur is an area of great difficulty. The location selection and high growth rate of Maquiladora industry has presented true challenges to decision makers. This is compounded by the fragile characteristics of the region caused by climatic conditions and the topography disadvantage, which is vulnerable to erosion, landslide and flooding (Ojeda 47). According to EPA (94), the environmental effect takes the form of increased demand for space, water, energy, high traffic and traffic congestion, generating hazardous waste and demand for its management and disposal, air pollution and environmental accidents. Furthermore, if nothing is done to curb the environmental degradation there could be long term economic consequences. Dense presence of Maquiladoras industries in the border of Mexico-U.S. has resulted in the rapid population growth and its urbanization. Lots of people have migrated from the central and southern Mexico in order to make a better living. Potential job opportunities in the industries describe the pull factor allowing migration to the borderland. This population growth has had indirect impact on the environment (EPA 96). A significant effect is water shortage in the region. The burgeoning population and the increasing number of industries have led to an increased demand for water resources resulting in higher demand than its supply. The water shortage in the borderland could be an indication of overstretched resource demand that the fragile ecology could not support. Apart from the burgeoning population and urbanization, industrial activities have played a significant role in degrading the environment. Both water and air pollution has been common as the industrial wastewater is hardly treated before it is discharged into water bodies. This has been made possible by less stringent environmental standard in Mexico. Sulfur dioxide, carbon monoxide, and nitrogen dioxide threaten ozone layer depletion. The Maquiladoras also releases untreated solvent such as trichloroethylene, heavy metals, namely, lead, paints, resins, and plastic into the environment (Edward & Andrew 329). The environmental harm caused by these industrial activities, is in the long term experienced by the society in terms of associated health concerns such as cancers, respiratory problems, and neurobehavioral problems among other threats. The health concerns posed by the Maquiladora industry are so severe such that the Council on Scientific Affairs highlighted that environmental monitoring and disease occurrence data exhibited that the public and environmental health was rapidly deteriorating and severely impacting health and future vitality (Sklair 1989). The reason behind such severe health effect from industrial activities is the lack of the environmental costs evaluation and benefits accruing from the industrial activities. The difficulty associated with such evaluation is the fact that health, safety, environmental and social effects are not part and parcel of commodities that can be traded at market places and, therefore, it is hard to monetize them which leads to costs externalizing (Dietz et al 2001 & Edward & Andrew 333). This sentiment is echoed by Hawken (170) where he points the market failure is in tabulating the costs of damage to the environment by commerce. Markets determine commodities prices by considering the cost of productions only; however, other costs are considered external or spillover effects. Conclusion Failing to address the environmental concerns by coordinating industrial activities and natural resource capacity endangers the long-term sustainability in the borderland. While there are immediate economic gains, as well as progressive social reforms, the long-term sustainability of the maquiladora industrial areas is highly questionable. Though a difference of efficiency measure is evident between economists and ecologists, whereby economist measure it in terms of money and ecologists in terms of thermodynamics and resources conservation, a convergence exists where reducing inefficiency results in lower costs and less waste. As Hawken (179) observes, efficiency should be the pivot between economics and ecology providing a bridge to a restorative economy. Though carrying capacity of the Earth is not known, it is essential to point out that it has a finite capacity to support the population and absorb waste. Therefore, commerce can be designed within the planets carrying capacity. Ultimately, then, it’s necessary for Mexico, as well as the United States companies that have established industry in the border regions to be held accountable for the rampant environmental degradation that continues to occur. Without a reasonable solution, there will undeniably be long term economic and environmental consequences. Works Cited Brant, Martha (1998). ‘The Farthest Frontier’, Newsweek (Atlantic Edition), Vol. 132, Issue 16 Council on Scientific Affairs. Permanent US-Mexico Border Environmental Health commission. Journal of the American Medical association 253:3319-3321, 1990. Dietz, Thomas, Scott, Frey, & Eugene, Rosa. Risk Assessment and Management. The environment and society reader pp272-299, 2001. Edward, Kick and Andrew Jorgenson. Globalization and Environment. Journal of world systems research 9:317-355, 2003. EPA. Protecting the Environment of the Us-Mexico Border Area. Environment Protection Agency, 2000. Fatemi, Khosrow. The Maquiladora Industry. Praeger Publishers. 1999. Hawken Paul. The Ecology of Commerce. New York, Harper business, 1994. Kamel, Rachel. The Maquiladora Reader. American Friends Service Committee. 1999 Ojeda, Lina. Land Use and the Conservation of Natural Resource in the Tijuana. University of California, 2000. Sklair, Leslie. Assembling for Development: the Maquila Industry in the United States and Mexico. Unwin Hyman. 1989 Read More