Globalization is often held up as a dream for lifting the world's poor. So far that dream has not materialized, but it's not too late for globalization to work. To a great extent, its destiny lies is the hands of global corporations. Will they introduce equitable practices to benefit ordinary citizens wherever they operate in the globe?

Gap, Inc. launched a landmark initiative last year to help displaced factory workers in El Salvador. The company announced plans to buy shirts from a factory called Just Garments, making the factory the first clothing-export plant in El Salvador to operate under a fully independent union-labor agreement. Many of Just Garments? workers lost their jobs in 2002 when Taiwanese owners - who also were Gap subcontractors ? shut down two factories.

In the past, anti-sweatshop activists have accused U.S. garment retailers of casually throwing off workers in foreign-contract factories, and Gap was often at the top of the list of alleged offenders. The company, which does $16 billion in annual sales with its Old Navy, Banana Republic and Gap outlets, buys from about 3000 factories in 50 countries.

Given that Gap is a trend-setter in the garment industry, the accord is seen as having potential ramifications for thousands, if not millions, more workers in El Salvador and beyond.

Gap did not only trumpet its achievements in 2004. Weeks after announcing its accord with Just Garments, the company released its first "social responsibility" report. With unusual candor, Gap conceded that its labor track-record overseas has been anything but stellar. Among the most blatant sins: substandard pay at dozens of plants around the world and serious safety violations.

"...We're a much more transparent company than we used to be," chairman Robert Fisher said in an interview after the shareholder meeting. "I think the image of the brands is an integral part of why consumers buy our products."

The globalization of labor is a matter of fierce debate. As happens in many debates, the extremes grab the spotlight: unrestricted free contract versus sweatshop exploitation. Fortunately, a vanguard of corporations is showing how positive, long-term partnerships can be built with workers in foreign lands to mutual advantage.

{moscomment}