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Bangladesh

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.

Some regions within countries are lagging behind. What can we do about it?

Sangmoo Kim's picture
Extremes of wealth and poverty in Dhaka, Bangladesh.  Photo by Laura Elizabeth Pohl / Bread for the World via Flickr CC
Extremes of wealth and poverty in Dhaka, Bangladesh.
(Photo by Laura Elizabeth Pohl / Bread for the World via
Flickr CC)
Many developing economies have experienced fast growth in recent years. With such growth comes an increasing spatial concentration of economic activity—as documented in the World Development Report—leading to rapid urbanization in those economies.

While some cities have grown, others still lag behind. Such inequalities in development are usually characterized by weak economic performance, low human development indicators, and high concentration of poverty. For example, Mexico achieved incredible growth as a nation, yet per capita income in the northern states is two or three times higher than in the southern states. Disparities in other social and infrastructure metrics are even more dramatic.

On the road to sustainable growth: measuring access for rural populations

Edie Purdie's picture


This is part of a series of blogs focused on the Sustainable Development Goals and data from the 2016 Edition of World Development Indicators.  This blog draws on data from the World Bank’s Rural Access Index and on results presented in the report Measuring Rural Access: using new technologies

In Nepal, 54 percent of the rural population lives within 2 kilometers of an all season road.

Nepal, Rural Access Index: 2015

Just over half of the rural population in Nepal lives within 2 kilometers of a road in good or fair condition as measured by the Rural Access Index (RAI) in 2015, leaving around 10.3 million rural residents without easy access. The map shows how the RAI varies across the country: in the southern lowlands, where both road and population density are high, the RAI is around 80 percent in some districts. In the more rugged northern regions, lower road density and poor road quality leave many disconnected, resulting in a low RAI figure – in many places less than 20 percent.

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 do you make aid programmes truly adaptive? New lessons from Bangladesh and Cambodia

Duncan Green's picture
Lisa DenneyDaniel HarrisLeni Wild

Following on from yesterday’s post on adaptive aid, a guest piece from Lisa Denney (far left), Daniel Harris (middle) and Leni Wild (near left), all of ODI.

A swelling chorus of the development community has been advocating for more flexible and adaptive programming that can respond to the twists and turns of political reform processes. They argue that in order to achieve better aid outcomes, we need to do development differently. As part of this agenda, ODI and The Asia Foundation, with the assistance of the Australian Department of Foreign Affairs and Trade, tracked and analysed three programmes in Bangladesh, Cambodia, and Mongolia. These programmes explicitly sought to work politically in practice, using a relatively small amount of money, a relatively short timeframe, and a focus on tangible changes. We followed attempts to achieve environmental compliance and increase exports in the leather sector in Bangladesh, and to improve solid waste management in Cambodia and Mongolia; issues identified for their potential to make important contributions (economic, health, environmental, etc.) to the wellbeing of citizens. Two of our case studies were released this month, telling the story of how the reforms unfolded and shifted strategy to better leverage the incentives of influential stakeholders, as well as the mechanics of how the Foundation supported adaptive ways of working.
 

How adaptation worked in practice

In each case, the programme teams (led by staff in the Foundation’s local office, and supported by a variety of contracted partners and a wider uncontracted reform network reaching both inside and outside of government) made significant changes to strategy during the implementation phase that helped to address difficult, multidimensional problems. In Cambodia, the team faced a complex and often opaque challenge in which waste collection is characterized by a single company with a long-term confidential contract that is difficult to monitor, a fee structure that does not encourage improved household waste collection, garbage collectors whose conditions do not incentivize performance, and communities that are difficult to access and do not always understand the importance of sanitary waste disposal. With a small Foundation team and limited funding, the approach relied on working with individuals selected as much for personal connections, disposition, and political know-how in working politically and flexibly, as for technical knowledge. The team began by cultivating relations between City Hall and the single contractor providing solid waste management services, then moved to work with the sole provider to improve their delivery, and finally, resolved to end the single contractor model in favour of competition.

Modernizing weather forecasts and disaster planning to save lives

Lisa Finneran's picture

© Angela Gentile/World Bank

Is it hot outside? Should I bring an umbrella?
 
Most of us don’t think much beyond these questions when we check the weather report on a typical day. But weather information plays a much more critical role than providing intel on whether to take an umbrella or use sunscreen. It can help manage the effects of climate change, prevent economic losses and save lives when extreme weather hits. 

Is South Asia ready for a Regional Motor Vehicles Agreement?

Sanjay Kathuria's picture
Trucks loading goods
Trucks waiting to unload their goods in Bangladesh. Photo By Erik Nora/World Bank

Judging by the number of views of the recent Facebook livestream event on intra-regional trade and investment in South Asia, there is significant interest in this topic. And there should be, given that there remain many important and untapped opportunities to use the power of trade and investment to enhance economic opportunities, including for lesser-skilled people and women in the region.

According to respondents of the Facebook poll conducted during the above event in May 2016, the most important policy to enhance intra-regional trade would be to invest in connectivity and border crossings.  Policy makers seem to realize this as well. Over the last two years, new efforts to deepen South Asian cooperation in trade have focused almost exclusively on trade facilitation issues. Let me elaborate.


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