ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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NICARAGUA-Making the Economy Scream

November 5-12, 1983 The foregoing brief review of the different sectors of the rayon industry leaves little room for doubt that the unfair competition offered by massive imports at almost throw-away prices, much below cost of production, has resulted in large under utilisation of domestic capacities, accumulation of inventories and financial losses. The policy of liberal imports under OGL, aimed at increasing exports through improving raw material availabilty to the weaving industry, has done incalculable harm without helping in any way NICARAGUA the cause of exports. Exports of viscose filament yarn fabrics have, in fact, showed a declining trend over the past three years. If the government wishes well of the rayon industry and wants it to play its legitimate role in meeting the textile industry's expanding fibre needs, the policy in regard to imports as well as fiscal levies will have to be suitably modified at the earliest. Liberal imports in face of large idle capacities at home accord ill with the government's increasing emphasis an exports to shore up foreign exchange reserves.

WORLD ECONOMY- Contracting Poverty

WORLD ECONOMY Contracting Poverty John Cavanagh Joy Hackel OVER the past fifteen years, corporations have diversified their strategies, for multinational expansion. Through what has become known as international sub-contracting, manufacturers based in developed countries contract out the mast labour intensive phases of production to lower wage developing countries. There it is primarily the Third World women's lot to perform the sewing, piecing together and other marginal forms of1 tedious assembly work. Once assembled, the goods tire re-imported under generous tariff exemptions by the multinational to be marketed in the developed country. The developing country subcontractor is either a multinational subsidary, a non-affiliated firm, an agent who further subcontracts the assembly work to sweatshops. or women who work in their homes.

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