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Labor and Social Protection

Complexities of reputation management and policy making in a globalized world: Bangladesh after Rana Plaza

Sonia Jawaid Shaikh's picture

On April 24, 2013, a building called Rana Plaza in Dhaka came crashing down on thousands of workers, killing more than 1,100 and injuring more than 2,500 individuals. Unlike any other building collapse, this received widespread international attention - and continues to do so - because the building housed factories that sewed garments for many European and American clothing brands. As a result, a chunk of blame for the collapse and deaths was placed on retailers and brands that outsourced their work to Bangladesh, and particularly Rana Plaza.

Since the tragedy, these retailers and companies, both big and small, utilized several brand reputation management strategies. This, in turn, impacted the policies of the garment industry in Bangladesh. Primarily, two retailer blocs, The Accord and The Alliance, emerged which have created their own local and international dynamics.

The Accord is a legally binding agreement that has been signed by many European and North American companies and allows for factories to be vetted and shut down in case of non-compliance with safety standards. The Alliance, signed by North American groups such as Walmart and JC Penny, however, does not guarantee any such protections and allows companies to use their own rules with any legal requirements.

Interestingly, many companies who are either part of The Alliance or The Accord, choose not to publicise their participation in such agreements. This allows them minimize any attention that could turn into criticism while still taking part in initiatives in case there ever is an inquiry from media, regulators, or other interested parties.

Combating poverty and building resilience through social protection

Michal Rutkowski's picture
Beneficiaries from a safety net program in Madagascar, most of them women, receive regular cash grants and training on nutrition, early childhood development and leadership skills. Photo by: Mohamad Al-Arief / World Bank

In the last few decades, we have seen an increase in the number of countries investing in social protection programs. These programs help individuals and families especially the poor and vulnerable cope with crises and shocks, invest in the health and education of their children, supporting young people by developing their skills and finding jobs, and protecting the aging population.

Moving from informal to formal sector and what it means for policymakers

Monami Dasgupta's picture
Moving workers from lower to higher productivity and work that provides better paying jobs can help poor families escape poverty. Photo: World Bank

Monami Dasgupta, guest blogger, is a Research Analyst at IFMR Finance Foundation

Some people are self-employed in the informal sector because they want to avoid registration and taxation. But many people work in the informal sector through necessity, not choice. Today, there are two features of the informal sector that are well-recognized. Firstly, much of the informal economy contributes greatly to the formal economy. Secondly, women constitute the majority of precarious, under-paid, informal workers.

The next generation of African scientists need a more sustainable career path

Rama George-Alleyne's picture
A professor teaching cell biology and biochemistry at a university in Africa. (Stephan Gladieu / World Bank)

Happy UN Day for South –South Cooperation!
 
Investment in skills is vital to economic growth and competitiveness and poverty reduction. I believe that there is no better way to do that than to educate young graduates with expertise in high-demand areas to help grow African economies, create jobs, and support research.

Can developing countries increase pension coverage to prepare for old age?

Gloria M. Grandolini's picture


While many of us work hard to postpone growing old, ageing populations as a whole are inevitable, predictable and something countries can prepare for.

As developing countries prosper, their citizens will live longer and, hopefully, healthier lives. By 2050, the number of people in the world 65 and older will have doubled from 10% to 20%. By then 80% of the world’s elderly –nearly 1.3 billion people - will live in low-income countries.
 
Are these countries set up to care for these forthcoming senior citizens and ensure they have the resources to live in dignity in old age? Will countries be able to ensure fairness between the generations and resources?
 
Current pensions systems leave many pockets of society uncovered:
  • As countries become more urbanized and families have fewer children, traditional family-based care for the elderly is breaking down, without adequate formal mechanisms to replace it.   
  • Traditional employment-based pensions systems don’t cover most informal sector workers in developing economies. In some regions, these workers account for two-thirds or more of the working age population. Even for those with formal sector jobs, pension coverage has been declining for people who’ve entered the workforce since 1990 in terms of years contributed over lifetime, according to World Bank Pensions Database. This has a major impact on the amount of retirement income they will eligible to receive.

The economic and social consequences of robotization

Harm Bandholz's picture
Harm Bandholz, guest blogger, is the Chief US Economist for the UniCredit Group
Worker in an industrial factory in India. Photo: World Bank

Robots are just one of the latest stages of technological progress. The number of robots being used by businesses to boost productivity has increased rapidly in recent years. And there is no reason to believe that this pace of robotization will begin to slow any time soon.

Is the declining pace of innovation lowering productivity & growth?

Vinaya Swaroop's picture

If you have been listening lately to Robert ‘Bob’ Gordon, an economics professor at Northwestern University, he will tell you that the days of great inventions are over. This in turn, has led to a significant slowdown in total factor productivity – a measure that economists use to measure innovation and technical progress. Falling productivity is one of the main reasons for growth shortfall in advanced economies like the United States.

Eager to know more about this seemingly worrisome and pessimistic thesis, which has attracted a lot of attention among economists and the media, we invited Gordon to give a talk at the World Bank.

Why ending violence is a development imperative

Ede Ijjasz-Vasquez's picture

Each year, about half a million people are killed by intentional homicide. That means one life is lost to violence per minute worldwide.

Latin America and Caribbean is among the hardest hit by chronic violence. Today, the region still sees an average rate of 24 homicides per 100,000 inhabitants—more than twice the World Health Organization (WHO)’s threshold for endemic violence.

If violence is an epidemic, youth are—by far—the largest risk group. In Latin America, the homicide rate for males aged 15-24 reaches 92 per 100,000, almost four times the regional average. Young people aged 25-29 years, predominately males, are also the main perpetrators of crime and violence, according to an upcoming World Bank report. 

Endemic violence also translates into less productivity, poorer health outcomes and high security costs. The cumulative cost of violence is staggering—up to 10% of GDP in some countries—with negative long-term consequences on human, social, economic, and sustainable development.

Ending violence is not only a must for law and justice, but also a development imperative.

The good news is that violence can be prevented. For example, cities like Medellin in Colombia and Diadema in Brazil have dramatically reduced homicide rate over the last few decades, thanks to tailored solutions backed by robust data analysis and a “whole-of-society” approach.  

In this video, we will discuss why violence is an important development issue, how countries and cities can effectively fight violence and crime, and what the World Bank and its partners are doing to ensure security and opportunity for all—especially youth and the urban poor. 

Related:
 

Toward a more durable form of globalization, beyond 'neoliberal' negligence

Christopher Colford's picture

“Globalization and technological change create huge challenges for modern economies, but they are not uncontrollable forces of nature. The economy we have is the economy we choose to build. It is time to make different choices, and show that capitalism can be remade.” — Prof. Mariana Mazzucato of the University of Sussex and Prof. Michael Jacobs of University College London, the editors of “Rethinking Capitalism.”

The shadows lengthen and the daylight shortens amid these elegiac end-of-summer evenings — but there’s a palpable feeling nowadays, in Washington and other capitals, that we’re approaching not just the sunset of a season, but the twilight of an era.

The sudden change in the policy discourse over the past year has shattered the familiar old contours of the globalization debate, with a “populist explosion” in the world’s developed economies forcing policymakers everywhere to reconsider the boundaries of “the art of the possible.” In many of the world's developed economies, a recalibration of globalization is under way.

In this insolite interim, the fraught phrase of Antonio Gramsci comes to mind: “The crisis consists precisely in the fact that the old is dying and the new cannot [yet] be born. In this interregnum, a great variety of morbid symptoms appear.”

Three incisive recent analyses illustrate the impassioned arguments that underscore this end-of-an-era feeling. Together, the analyses set the stage for the imminent publication of a new book of essays by a group of eminent economists, whose ideas may chart the way toward a more durable, more inclusive approach to globalization.

 
  • Second: Diagnosing how a phase of economic history may have run its course, Nobel Prize-winner Joseph Stiglitz (a former Chief Economist of the World Bank) in Project Syndicate asserts that the laissez-faire approach to globalization has reached its (il)logical conclusion: “The failure of globalization to deliver on the promises of mainstream politicians has surely undermined trust and confidence in the ‘establishment.’ . . . Neoliberals have opposed welfare measures that would have protected the losers [of globalization]. But they can’t have it both ways: If globalization is to benefit most members of society, strong social-protection measures must be in place. The Scandinavians figured this out long ago; it was part of [their] social contract. . . . Neoliberals elsewhere have not – and now, in elections in the US and Europe, they are having their comeuppance.”  
 
  • Third: A series of insightful columns by Martin Sandbu in The Financial Times – tracing an “insurrection [that] has been a long time coming” – explores the links among economic stress and social-class anxiety that provoked this year’s social eruption: “Over the past generation, the trajectory of the white working class has no doubt changed the most for the worse, compared with the previous generation.”


The history-minded reflections of Jacques, Stiglitz and Sandbu underscore the fact that many economists are still pondering how so many of their policy prescriptions went so badly wrong, opening the way for the global financial crisis.

Chart: Poverty is Driving Informal Work Among Foreign Service Providers to Democratic Republic of Congo

Erin Scronce's picture

A new report, From Hair Stylists and Teachers to Accountants and Doctors - The Unexplored Potential of Trade in Services in Africa, indicates that African countries are trading in services, often in unexpected ways. Africa’s export potential in traditional services, such as tourism, is clearly recognized, but the emerging success of exports of nontraditional services is often overlooked. Hairdressers, doctors, educators, and accountants are all examples of service providers who are moving across borders to take advantage of employment opportunities away from home. Many of these workers are finding opportunity in the informal sector, driven to other countries due to poverty and lack of opportunities at home. Read more in the feature story and report


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