Industrial accidents can be devastating to the people and communities involved. In addition to the immediate loss of life, such accidents can leave a lasting mark. For example, residents and victims of the 1984 Bhopal gas leak incident in India still live with the environmental damage created by Union Carbide, and protest yearly to publicize their continuing efforts to obtain financial compensation for damages as well as justice for the remaining perpetrators. Scientists are still trying to determine the long-term effects of the 2010 BP oil spill in the Gulf of Mexico.
One Cost of Increased Globalization: More Industrial Accidents
Industrial accidents can be devastating to the people and communities involved. However, little systematic research has explored the underlying causes of such accidents. A recent study examines one crucial, yet overlooked, factor: globalization. Looking at data on economic interactions and trade policies from 137 countries over 42 years, results suggest that economic globalization substantially increases the likelihood of industrial accidents. An increase of one standard deviation in pro-globalization policies increases the probability of an industrial accident by about 54%. A similar shift in the level of international economic interactions raises the probability of an industrial accident by about 14%. And this is after controlling for several other predictors of industrial accidents such as a country’s level of economic wealth and political corruption.