I have a comment on the ethics angle. As a South African this very same issue has a constant presence in our own country. The question I have to ask myself regularly is:

“is it ethical to employ a labourer at $100 a month?”

Well no, I suppose not. But what is the alternative? The economics of our country do not allow us to pay more and still make money (and there are no jobs without profit). As with outsourcing, maybe we should find an alternative and not exploit these poor people.

Here is the problem. Countries like South Africa, India etc. usually do not have social support of any substance. It’s earn a way to feed yourself, turn to crime (a whole other subject here) or starve. Your conscious is clear if you decide not to support the exploitation by outsourcing work at $5 an hour. On the other side of the world the reality is somebody goes hungry.

I think first world dwellers are also oblivious to some other facts. Five dollars US buys a cup of coffee at Starbucks (maybe) in the US. Here in Africa it buys nutrition for a person for a month. A place to live is usually free in the third world (tribal system of land here in SA). We also have free education for the poor, no income tax, free health care etc. etc. Here a person earning $100 per month only needs to put food on the table and $100 goes a long way.

Finally, bear in mind that in the third world one economically active person is usually supporting between 5 and 10 other people, and they can do that on very little. By taking the “high road” on the ethics of “exploiting the third world” people are going to starve.