ILO report: Sustainable growth is a must for Bangladesh

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ILO report: Sustainable growth is a must for Bangladesh

Improving working conditions in Bangladesh’s ready-made garment (RMG) industry is crucial for achieving sustainable growth in the country, says a new report by ILO. According to the report, Bangladesh experienced relatively high economic growth over the past two decades, mainly due to garment exports. The country accounted for 4.8 per cent of global apparel exports in 2011, compared with only 0.6 per cent in 1990.

But unregulated industry growth has contributed to poor working conditions in that sector, which have acted as an obstacle to sustainable development and, moreover, resulted in some of the worst industrial disasters on record. The workers in this region receive the lowest wages, according to the report. While some other countries revise their minimum wages on regular basis, Bangladesh has adjusted the RMG minimum wage only three times since it was first set in 1985 – with the last revision dating back to 2010.

The report warns that unless a comprehensive set of labor market and social policies are introduced, Bangladesh will be unable to maintain its economic momentum and improve living standards in a sustainable way. And while the RMG sector is central to the economy, new measures need to be far-reaching. “The Ready-Made Garment Sector program launched by the ILO and the Government of Bangladesh last month will lead to lasting improvements in working conditions and safety for the tens of thousands of garment factory workers in Bangladesh,” ILO Deputy Director-General for Field Operations and Partnerships, Gilbert Houngbo, said.

According to Houngbo, the next challenge will be to coordinate the ILO-sponsored RMG program, the Sustainability Compact adopted by the European Union and private sector initiatives like the Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety.