Azerbaijan, Baku, Aug. 7 /Trend/
Director of the Institute of Global Economic Problems Natig Shirinzade specifically for Trend
Cheap labor force has performed the economic miracle in China. Local workers are employed for the money, which are only a small part of the amount their American colleagues gain. During the crisis, particularly last year, nearly 130 million internal migrants worked in the Chinese cities, monthly gaining an average of 1,348 yuan (about $197). This the twentieth of the average monthly wage in America, but 17 percent more than a year earlier. The salaries began to grow as China's economy once again began its rapid growth. On the coast, where the production for Chinese export is concentrated, the factories no longer have the patience. A wave of strikes, wetting the company, puts a stick in the work of "the wheels of the world economy."
It becomes more difficult to find and keep employees. There are still about 70 million potential domestic migrants in the Chinese villages. Others would prefer to work closer to home at the many factories, which begin moving from the coast far inland. But the stock of strong backs and skillful hands isn't endless even in China. The number of Chinese people aged between 15 and 29 will drop in the country beginning from 2011. Although young locals' salary continues to grow, their ambitions are still in progress. They are less willing to "have a bitter taste," as the Chinese say, without a complaint.
In fact, Chinese workers have never been as humble as they are usually portrayed. But the frequency of the recent strikes still surprises. For instance, the Guangdong Province on the country's southern coast has witnessed at least 36 strikes in 48 days. Their duration and above all, goals are uncommon: the protests are directed against foreign multinational companies.
China much depends on foreign investment and too little on consumer costs. Mainly because too small piece of the national pie - only 53 percent (according to 2007), which is less than in 1990 (61 percent), goes to local workers. Therefore, if the Chinese' wages rise at the expense of foreign companies, then the workers will be able to better enjoy the fruits of their labor.
Increase in the Chinese' wages will also be in favor of the West. On the face of it, it looks strange, as rich states depend on cheap Chinese labor. Thus, trade with China adds $1,000 a year to every American family's wallet thanks to cheaper goods on the shelves of the U.S. stores and tougher competition in the U.S. markets. Growth of the global workforce by a quarter due to cheap Chinese workers helps to beat down the prices in the West, and increase in salaries in China will give the green light to inflation export, too. Furthermore, the world's workforce is the same resource, as oil or land. And the reduction of this resource evidently will not be profitable for global economy just like drying up oil wells anywhere in Saudi Arabia.