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Labor and Social Protection

Harnessing Stitches for Riches in South Asia

Gladys Lopez-Acevedo's picture
Stitches to Riches? The Potential of Apparel Manufacturing in South Asia

In the coming years and decades, China is expected to slowly relinquish its lead position in the global apparel market, opening the door to other competitors. This is a huge opportunity for South Asia to create at least 1.5 million jobs that are “good for development” – of which half a million would be for women – according to a new World Bank report Stitches to Riches?  But those numbers could be much higher if the region moves quickly to tackle existing impediments and foster growth in apparel, which will also yield dividends for other light manufacturers (like footwear and toys).
 
How South Asia fits in the global apparel market
Currently, China holds by far the largest share of global apparel trade – at 41 percent, up from 25 percent in 2000, with about 10 million workers. But as China continues to develop, it is likely to move up the global value chain into higher-value goods (like electronics, and out of apparel) or switch production among sectors in response to rising wages. A 2013 survey of leading global buyers in the United States and European Union (EU) found that 72 percent of respondents planned to decrease their share of sourcing from China over the next five years (2012-2016).
 
Already, the top four apparel producers in South Asia – Bangladesh, India, Pakistan, and Sri Lanka – have made big investments in world apparel trade, now accounting for 12 percent of global apparel exports (see figure). In terms of apparel export value, Bangladesh leads the pack (at $22.8 billion), followed by India ($12.5 billion), Sri Lanka ($4.4 billion), and Pakistan ($4.2 billion).
 
China dominates global apparel trade
(Country share of global apparel exports)


Source: Stitches to Riches?
 
Why apparel jobs are “good for development”
When we think of jobs that are “good for development,” the main yardstick is whether they will help translate growth into long-lasting poverty reduction and broad-based economic opportunities. Apparel fits the bill for numerous reasons. 

Bhutan's Gross National Happiness (GNH) and the World Bank

Genevieve Boyreau's picture
Photo Credit: Oliver Jammes

The concept of “Gross National Happiness” has been long discussed, debated, understated, overstated or seen as a gimmick. Now what is really Gross National Happiness? And how does the World Bank engagement fit in it? Let’s look into it together in an attempt to de-mystify the concept into what it really is, which is: a vision, broad policy directions trickling down to programs, a survey, a policy screening tool, and yes also, a foreign policy instrument and a brand.
                  
The visionary statement, “Gross National Happiness is more important than Gross Domestic Product” was first enunciated by His Majesty the Fourth King of Bhutan in the 1970s. In turn, the Fifth King declared: “Today, GNH has come to mean so many things to so many people but to me it signifies simply - Development with Values. Thus for my nation today GNH is the bridge between the fundamental values of kindness, equality and humanity and the necessary pursuit of economic growth.” Article 9-2 of the constitution directs the state “to promote those conditions that will enable the pursuit of Gross National Happiness”.
 
GNH is translated into broad policy directions that provide the Government’s overarching, long-term strategies and five-year plans. The four pillars of GNH philosophy are: sustainable development; preservation and promotion of cultural values (traditional and cultural heritage paramount  - its loss leads to a general weakening of society); conservation of the natural environment (Bhutan’s constitution: 60 percent forest coverage, green economy), establishment of good governance.

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.

Rural Nepal women empowered to maintain roads

Farhad Ahmed's picture
Bishnu Ghale, an RMG member from Khanigaon, works on the Nuwakot – Malabhanjyang road.

When the earthquake hit on the Saturday of 25th April last year, 35-year-old Bishnu Ghale was working in the fields near her house in Khanigaon VDC of Nuwakot district. The quake destroyed her house, but she was thankful her husband and three children were alive. She was thankful for a steady job, which meant she could quickly muster up the supplies to build a shelter and provide food for her family.

A month before the earthquake, Bishnu started working as a Road Maintenance Group worker, one of a group of 12 men and women who manage a 24 km stretch of rural road from Nuwakot to Malabhanjyang. She looked after the routine maintenance of the road, cleaned the drains, filled pits, cleared minor blockades and planted trees. Working 6 days a week, this earned her up to 11,000 Rupees a month, enough to keep her family going through the difficult months ahead.

Accelerating economic growth and job creation in Bangladesh

Sanjay Kathuria's picture
Instructor and Students at the Bangladesh Korea Technical Training Center, Chittagong
Instructor and Students at the Bangladesh Korea Technical Training Center, Chittagong.
Credit: Mahfuzul Hasan Bhuiyan

Bangladesh has a major opportunity to address one of its most pressing development challenges: creating 20 million new jobs over the next decade.  And the trade agenda will be a centerpiece of any strategy that seeks to address this challenge.
 
Join me for a Facebook Q/A chat on January 28 to discuss this and other findings from the recently released report Toward New Sources of Competitiveness in Bangladesh co-authored with Mariem Mezghenni Malouche.
 
Below are some 4 highlights from the report, which we will be discussing. I look forward to your questions and a vibrant discussion!
 

  1. Bangladesh will need to expand its linkages with neighboring countries such as China and India as well as other Asian countries like Japan and South Korea.  Not only are these very large markets, they are also potential sources of greater foreign direct investment.  What are the critical steps that will allow this to happen?  How can the recently signed Motor Vehicles Agreement between Bangladesh, Bhutan, India and Nepal help?  What are the barriers to Bangladesh’s venturing into new markets?

  2. Bangladesh will need to gradually diversify its export base into new product areas while also strengthening its position as the second-largest garment producer in the world (after China).  Our report explores the critical challenges that could allow this to happen.  In your view, what challenges lie ahead if Bangladesh tries to diversify its exports?  Can you name some prospective industries (for diversification)? What will be the role of foreign direct investment in this diversification?  What kind of reforms are needed to attract more domestic as well as foreign direct investment?

  3.  

Local elections in Pakistan: A chance to improve public services

Ming Zhang's picture
Discussing public services in Pakistan
Discussing public services in Pakistan. Credit: GSP/MDTF/2013
I arrived in Pakistan right after the third round of local elections held in most provinces on December 5.

​This was the first local election in 10 years in most places of the country. Voters elected council members of three tiers of local governments: district, urban councils, and union council/ward.

How will these elections impact the lives of average citizens?

International experiences have shown that the main benefit of elected local bodies is their closeness to citizens, which allows them to be much more responsive – although with sustained hard work -- to improving local services such as waste, water, sewerage and transportation.

In a report about managing spatial transformation in South Asia launched at the 3rd Pakistan Urban Forum, we highlighted that passing reforms aimed at revitalizing urban governance is critical to make South Asia cities more livable and prosperous (see chapter 3 of the report).

To that end, we identified three closely related "deficits" -- empowerment, resource, and accountability -- which, if tackled properly, could lead to improved local urban governance.

The recent local elections in Pakistan are important steps toward reducing these three deficits. The new local government laws, which were enacted in most provinces in 2013, started to re-empower local governments after the expiration of the earlier 2001 Local Government Act.
 

4,100 Pakistanis share their aspirations — and ambitions — for their country

Yann Doignon's picture
Pakistan: Window of opportunity

​Economic and social development should not be left to economists and specialists only.

This message is manifested in “Window of Opportunity,” a video highlighting the ambitions and goals of the World Bank’s 2015-19 Country Partnership Strategy in Pakistan.  
 
Truck drivers, entrepreneurs, doctors, teachers and thousands of other citizens from Pakistan shared their ideas and helped identify opportunities and challenges to guide future policies and action areas.
 
These individuals come from a myriad different backgrounds but are united by a common drive to open up windows of opportunities for Pakistan.

What will it take to realize Pakistan’s potential?

Sri Mulyani Indrawati's picture
Sri Mulyani Indrawati meeting beneficiaries
Meeting with beneficiaries of the Benazir Income Support Programme in Lahore, Pakistan.

As Pakistan readies to celebrate its independence day, we can all feel satisfied about progress in restoring macroeconomic stability, but should also realise that the country can and should do much better. Pakistan has many assets, of which it can make better use — from its vast water and river endowment, to its coastline and cities, to its natural resources. And there are upsides: a growing middle class, a lively informal economy and a strong influx of remittances. Pakistan can also be proud of the first peaceful transfer of power between two civilian governments. But to reach its full potential, Pakistan needs to focus on two critical areas, both obvious and urgent. It needs to ensure that its people have the means to fully participate in and contribute to the economy. And it needs to integrate itself more, globally and regionally.

The first challenge is demographic. As a result of rapid population growth, 1.5 million youngsters reach the working age each year. The question is, will the private sector be able to provide the jobs they need and want? And will the youth have the skills to get good jobs? Pakistan must do far better in education. Primary school net enrollment is about 57 per cent, well below other South Asian countries. Enrollment drops by half in middle school, with much lower levels for girls and children from poor families. This is not a good foundation to build on.

It is not surprising then that Pakistan also struggles to give all its citizens the opportunity to participate in building better lives for themselves. Only 25 per cent of women participate in the labour force, compared to 50 and 80 per cent in most developing countries. Women and girls deserve better. Research shows that girls with little or no education are far more likely to be married as children, suffer domestic violence, and live in poverty. This harms not only them, but also their children, their communities and the economy. Greater gender equality can enhance productivity and improve development outcomes for the next generation. It is smart economics.

Pakistan has taken steps to empower women. The Benazir Income Support Program, supported by the World Bank, has provided millions of women with national ID cards and makes direct payments to them, strengthening their ability to take decisions and move out of poverty.

Public spaces - not a “nice to have” but a basic need for cities

Sangmoo Kim's picture
The benefits of public spaces in the poorest parts of the world
Source: World Bank Staff

We often think of amenities such as quality streets, squares, waterfronts, public buildings, and other well-designed public spaces as luxury amenities for affluent communities. However, research increasingly suggests that they are even more critical to well-being of the poor and the development of their communities, who often do not have spacious homes and gardens to retreat to.

Living in a confined room without adequate space and sunlight increases the likelihood of health problems, restricts interaction and other productive activities. Public spaces are the living rooms, gardens and corridors of urban areas. They serve to extend small living spaces and providing areas for social interaction and economic activities, which improves the development and desirability of a community. This increases productivity and attracts human capital while providing an improved quality of life as highlighted in the upcoming Urbanization in South Asia report.

Despite their importance, public spaces are often poorly integrated or neglected in planning and urban development. However, more and more research suggests that investing in them can create prosperous, livable, and equitable cities in developing countries. UN-Habitat has studied the contribution of streets as public spaces on the prosperity of cities, which finds a correlation between expansive street grids and prosperity as well as developing a public space toolkit.

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