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Public Sector and Governance

A new way to mitigate buyer risk in apparel

Mark Jones's picture
Bangladesh's share of the apparel market is increasing
The Alliance and Accord have been working over the past three years with more than 1,500 factories to help them meet new fire and building safety standards

The China sourcing conundrum
In conversations with U.S. and European retailers and brands, ELEVATE – a company formed in 2013 to support corporate social responsibility – finds that apparel buyers rate diversifying away from China as one of their top three sourcing goals.

This is not to suggest that there is a desire to exit China – which currently holds by far the largest share of global apparel trade, at 41 percent – but rather a need to significantly reduce dependence on product from China, owing to rising costs, factory closures, unenthusiastic second generation family ownership, new attitudes about working in factories, and a perception that China wants to move to higher-value manufacturing. Sourcing and procurement organizations feel uncertain, and uncertainty is not a friend of supply chains.

The problem is that for all its uncertainty, China still has a huge base of factories, a well-developed transport infrastructure, and a comprehensive eco-system that supplies cut-and-sew operations, and management that has matured with years of experience. Even if a buyer would like to give another country an opportunity, many corporate risk managers view certain countries or regions as quite challenging for doing business.

Stitches to Riches? The Potential of Apparel Manufacturing in South Asia


South Asia could seize this opportunity by better meeting requirements – besides competitive costs – that are vital to global buyers. These include: (i) quality, which is influenced by the raw materials used, skill level of the sewing machine operator, and thoroughness of the quality control team; (ii) lead time and reliability, which are greatly affected by the efficiency and availability of transportation networks and customs procedures; and (iii) social compliance and sustainability, which has become central to buyers’ sourcing decisions in response to pressure from corporate social responsibility campaigns by non-governmental organizations, compliance-conscious consumers, and, more recently, the increased number of safety incidents in apparel factories.

Surveys of global buyers show that East Asian apparel manufacturers rank well above South Asian firms along these key dimensions, as noted in a new World Bank report on apparel, jobs, trade, and economic development in South Asia, Stitches to Riches (see table). So, what can South Asia, which now accounts for only 12 percent of global apparel trade, do to become a bigger player? An encouraging recent development is that buyers have started collaborating to facilitate new sourcing possibilities – as the case of Bangladesh illustrates.

How Higher Education in Bangladesh Creates Opportunities

Tashmina Rahman's picture
Students hold a discussion. Improved quality of higher education provides an opportunity for better jobs.

A couple of months ago, I visited a few tertiary colleges affiliated with the National University in Bangladesh while preparing the College Education Development Project which aims to strengthen the strategic planning and management capacity of the college subsector and improve the teaching and learning environment of colleges. Almost two-thirds of all tertiary students in Bangladesh are enrolled in these colleges, making them the largest provider of higher education in the country.

World Bank report on education in Bangladesh

A recent World Bank report estimates that around 1.6 million tertiary students in Bangladesh are enrolled in around 1,700 government and non-government colleges affiliated under the National University. This piece of information underpins a huge economic opportunity in context with Bangladesh’s quest to become a middle-income country over the next few years. There is a strong demand for graduates with higher cognitive and non-cognitive skills and job-specific technical skills in the country. This requires an improvement in the quality and relevance of tertiary education to ensure graduates have more market relevant skills. The National University student enrolment size combined with its sheer number of colleges network all over the country make it the critical subsector for making a qualitative dent in the higher education system.

नेपालमा जवाफदेहीताको पहल : गाउँ–गाउँको अभियान

Franck Bessette's picture
Also available in: English
Program for accountability in Nepal
सार्वजनिक वित्तीय व्यवस्थापनमा उल्लेख्य तथा प्रशंसनीय सुधार आएको भए तापनि जिल्ला स्तरभन्दा बाहिर सार्वजनिक स्रोत तथा साधनहरुको संकलन तथा सार्वजनिक खर्चको निगरानी गर्न वा त्यस बारेमा थाहा पाउन अझै पनि कठिन छ । 


फ्र्याङ्क बेसेट

Tending to the most vulnerable in Bangladesh

Yoonyoung Cho's picture
Bus lift for persons with disabilities that I saw when I first arrived in Madison, Wisconsin.
Photo Credit: Ride Metro Bus

When I first visited the college town of Madison, Wisconsin (USA) in 2000, what first stood out wasn’t its beautiful university campus or its famous brat and beer combo. What caught my attention was a public bus which had the equipment to lift a wheelchair. “Beep, beep, beep,” a sound would signal as the bus would lower and extend a ramp to aid people in wheelchairs to board the bus.

At that time, I had never seen anything like this bus and thought, “Wow! Why can’t we have such services back in my country?” No such buses existed in Korea where I grew up. But more than just the bus, I remembered thinking that I rarely noticed people with special needs in Korea. In hindsight, the lack of support and consideration for people with disabilities and ignorant attitudes were also reasons why people with disabilities were rarely seen in public.

Addressing needs through action                                                                                 
In 2014, I became the task leader for Bangladesh’s Disability and Children at Risk (DCAR) project. The difficult situation faced by persons with disabilities in the country was a reminder of the contrast I had experienced in that college town. Accessible transportation was not the only service lacking for people with disabilities. There was a lack of access to health facilities for checkups and treatment along with a short supply of therapy equipment and wheelchairs. A lack of respect towards persons with disabilities by the wider public was also a challenge. Moreover, the project was not delivering the results that it expected to achieve.

Higher education for the 21st century in action

Joe Qian's picture
The graduating class of the University of Moratuwa’s Department of Textile and Clothing Technology. Photo Credit: Isuru Udara

Imagine a school that teaches knowledge and provides hands-on training. A place where students express confidence in their skills, and are excited to make a difference in their future jobs. A bastion of confidence and optimism, where 100% of graduating students have jobs lined up before graduation.
 
Sounds too good to be true? I found this haven at the University of Moratuwa’s Department of Textile and Clothing Technology, supported by the Higher Education for the 21st Century Project (HETC), which is designed to modernize education by its increasing its quality and relevance. 24-year-old Malaka Perera, who is graduating next month, told me how the program has helped him build a foundation for his career. “The program taught me how to deal with people, along with communications and problem solving skills that I used during my internship. As a result, finding a job was quite easy.”
 
Sri Lankans have enjoyed the benefits of broad education access for decades, which has allowed the country to build human capital to rise and become a middle income country. However, as a country with rising aspirations in an increasingly globalized world and competitive region, the quality and relevance of its education system is key for the country to maintain its edge and reach new heights.

Make in India: Which exports can drive the next wave of growth?

Saurabh Mishra's picture
Structural transformation depends not only on how much countries export but also on what they export and with whom they trade. In my new IMF working paper with Rahul Anand and Kalpana Kochhar, we break new grounds in analyzing India’s exports by the technological content, quality, sophistication, and complexity of India’s export basket. The paper can be found here. Here are few key pieces of evidence from our paper:
 
Technological content of India’s exports   

The evolution of Indian exports has not followed a “textbook” pattern. The pattern of evolution points to a dichotomy in the Indian economy – a well integrated, technologically advanced services sector and a relatively lagging manufacturing sector. The share of service exports in total exports has grown to over 32 percent in 2013 from 28 percent in 2000. On the other hand, the share of manufacturing exports in total export has declined to 67 percent from nearly 80 percent during 1990-2013.
 
The growth in service exports has been more rapid, resulting in the share of services exports in total exports to increase rapidly over the last decade. This can be explained by technological changes. Many services do not require face-to-face interaction, and can be stored and traded digitally. These services are called modern services. Modern services are the fastest growing sector of the global economy. This is particularly evident in India, where modern services exports account for nearly 70 percent of the total commercial services exports (compared to around 35 percent in EMs) (see Figure 1). 
      
Figure 1. Rapid Growth in Modern Services from India

インド:防災面で広がる女性の役割

Malini Nambiar's picture
Also available in: English
Women community leaders
女性コミュニティーのリーダー達。 写真: World Bank


【概要】

3月8日は国際女性の日だ。インドにおいて女性は伝統的に家庭を守る立場であることから、防災面での役割は見過ごされてきた。しかし、インドの沿岸地域を バスで巡り、各地の防災プロジェクトを支援する「強靭性構築への道(Road to Resilience)」プログラムを通じ、防災面でいかに女性がリーダー的役割を果たしているかが見えてきた。

これは、世界銀行と防災グローバル・ファシリティ(GFDRR)が支援する、インド沿岸部地域の脆弱性改善と防災対策を目的とした、国立サイクロンリスク軽減プログラムと沿岸災害リスク軽減プログラムの成果のひとつである。

しかし、女性は家庭内役割を担うべきという見方がまだ根強く、女性の能力を生かすことは難しいのが実情だ。この旅を通じて、女性を意思決定に巻き込むことが、個人の災害対応力育成につながるだけではなく、女性の力を活かした地域全体の防災力向上につながると考えている。

 
Road2Resilienceプログラム: 復興への道 (英語) 

The growing role of women in disaster risk management

Malini Nambiar's picture
Also available in: 日本語
Women Community Leaders
Women community leaders. Photo Credit: World Bank


Women are seen in their traditional role of home-makers, but might their ability to take on managerial roles in disaster risk management be underestimated?
 
As part of the India Disaster Risk Management team, I travelled on the “Road2Resilience” bus journey along the entire coast of India. Along with the team’s mission to provide implementation support to the six coastal disaster management projects, I also focused on women’s participation in the mitigation activities of these projects.
 
Women’s participation in Disaster Risk Management in India has been sporadic. However, my interactions with the community - especially women - highlighted how women in coastal India are seriously taking disaster risk management into their own hands.

Emergency response in the Whatsapp era!

Deepak Malik's picture
Cyclone Hudhud.  Photo Credit: NASA Earth Observatory
On October 12, 2014, Cyclone Hudhud, a category 4 cyclone with wind speeds exceeding 220 km/hour bore down on to the city of Vishakhapatnam in the state of Andhra Pradesh on the eastern coast of India. The city, with a population of over 1.8 million people and neighboring districts suffered massive devastation. The World Bank’s South Asia Disaster Risk Management team jointly undertook a post-disaster damage and needs assessment with a team from the Asian Development Bank and with the Government of Andhra Pradesh with the support of Global Facility for Disaster Reduction and Recovery (GFDRR).

 
Whatsapp Messages
Whatsapp to help restore connectivity. 
During field visits, the assessment team interacted extensively with the community and local government officials.  The one story that seemed to resonate consistently was the efficiency in clearing roads blocked by fallen trees and debris to make sure connectivity was restored at the earliest. Following any major disaster, such as cyclone Hudhud, restoring connectivity is amongst the most challenging and critical activities. Restoring connectivity allows for more efficient flow of much-needed emergency relief, medical supplies and helps foster early recovery. We decided to dig deeper to find out what had been done differently here.
 
One evening, while returning from a field visit to Srikakulam district, we posed this question to Mr. V. Ramachandra, Superintendent Engineer of Public Works Department (PWD), what had been done differently. Mr. V. Ramachandra’s face lit up and he pulled out his smart phone. He showed us a “closed group” that the PWD engineers had created on Whatsapp.  For the first three days after cyclone Hudhud, there was no electricity and no mobile connectivity. As the connections were restored, the PWD closed group became functional and that acted as the main tool of communication for information sharing. For any breach of road, the Engineers shared information through the Whatsapp group with a clear location and a short explanation of the problem. The person responsible for the area responded with a message stating how long it would take to clear the block. Even requests for tools and JCBs were made on the group. This helped identify and access required resources. The action taken was narrated on the group discussion page once the problem was solved. An updated photo showing restored road connectivity was uploaded to the group.

No meetings and no discussions at the district headquarter level had to be organized. The District Magistrate joined the group and gave instruction to the department through the closed Whatsapp group. Most roads were functional within three to four days. The whole department worked to provide its services through a messaging system, without any meetings and formal orders.

Social media has become a part of our daily lives and is a very powerful tool for emergency management if used properly. Social media and pre-designed apps are effective when written reports and formal meetings are not required. It is important to learn from such experiences and institutionalize them for effective and efficient use during periods of early recovery and emergency response.

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