ABSTRACT

Capacity crashing describes how developed countries transfer their most hazardous industries and occupations to the countries that are least able to adequately protect their workers. Capacity crashing can also occur within a country when hazardous and polluting industries are located in communities least able to protect themselves. The practice is also referred to as risk transfer which is a common strategy to shift risk from one entity to another, in this case from corporations to vulnerable supply chains and communities. Three examples of capacity crashing or risk transfer are outlined using the garment industry, consumer electronics, and gold mining. Common conditions associated with capacity crashing are discussed. Approaches to resolve inequities created by risk transfer and capacity crashing include capacity building, empowering workers, verification/advocacy, education, and technology.