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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 on their own websites. 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.

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

 

World Humanitarian Summit: three tests for success
Thomson Reuters Foundation
After months of feverish consultation, preparation and speculation, the first-ever World Humanitarian Summit (WHS) will finally kick off in Istanbul on May 23. The two-day Summit will convene 6,000 aid leaders to decide on how better to respond to today’s defining crises. So, what will mark the difference between an anti-climactic letdown and a rallying achievement? Here are my three measures of success.

World Employment and Social Outlook
ILO
Over the past two decades, significant progress has been made in reducing poverty in the majority of countries. In emerging and developing countries, taken as a whole, it is estimated that nearly 2 billion people live on less than $3.10 per day (adjusted for cost-of-living differences across countries). This represents around 36 per cent of the emerging and developing world’s population, which is nearly half the rate that was observed in 1990, when the initial international commitments to reduce poverty were undertaken. During the same period, extreme poverty – defined as people living on less than $1.90 per day – declined at an even faster rate to reach 15 per cent of the total population of emerging and developing countries in 2012, the latest available year

Improving compliance with minimum wage standards

Uma Rani's picture
Minimum wage standards have the force of law. Yet, establishing a legally binding minimum wage does not in itself mean that these are applied in practice. In reality, compliance is always less than perfect in both advanced and developing countries. Understanding which factors determine compliance is important. Our analysis shows that compliance is affected by both the level at which minimum wages are set relative to average wages, as well as by institutional factors.

Finding employment for young people of all abilities

Matt Hobson's picture
Young women from family with members with disabilities being taught to use a sewing machine.
India. Photo: © John Isaac / World Bank

Today is the International Day of Persons with Disabilities.
 
In every society globally, unemployment rates for persons with disabilities are higher than for people without disabilities. The International Labor Organization reports that, in some Asia-Pacific countries, the unemployment rate of people living with disabilities is over 80%. 

Weekly Wire: the Global Forum

Kalliope Kokolis's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

The Guardian
Youth unemployment: can mobile technology improve employability?

“Attention in the development sector has shifted sharply towards two areas over the past couple of years: youth and employment. While the huge increase in some countries' 15-24 year old population offers an opportunity for catalysing change and bringing in fresh ideas and new energy, many are grappling with the challenge of providing young people with meaningful work opportunities and concerned about the growing number of youth who are disillusioned about their futures.

The ILO reported that 74.8 million youth between 15 and 24 years were unemployed in 2011, an increase of more than 4 million since 2007. Globally, the youth unemployment rate is almost 13%, and youth are nearly three times as likely as adults to be unemployed. In some countries there are no jobs. In others, there is a skills mismatch and with some quality soft and hard skills training and support, young people could be ready for existing, unfilled jobs.”  READ MORE

ILO/World Bank Discussion on Jobs and Policy - Responses to the Financial and Economic Crisis

Arup Banerji's picture

The World Bank’s spring meetings this year have been all about “Closing the Gap”. And one of the gaps the world certainly needs to close is the one on jobs – between those whose jobs are productive and those who scrape by in low-return work, and between those who have them and those who don’t. The recent crises have brought this gap into even sharper focus, if that’s possible – with growth slowdowns meaning that in many countries unemployment rose.Governments in rich and developing countries alike reacted with a slew of public policy measures to try and redress the situation. But until now, we haven’t had a full understanding of what really happened in terms of the sweep of policies put in place by different countries, and how these differed among countries themselves.

Homework from the Seoul G-20: Measuring Skills

Ariel Fiszbein's picture

The Seoul G20 summit in November ended with some homework for the World Bank. We were asked to work with the ILO, OECD and UNESCO to develop internationally comparable indicators of skills that can help countries in their efforts to better match education and job training to market needs.  The G20 was right to make this a priority. 

In this post-financial crisis period, jobs play an important  role in recovery. Making sure that people have the right skills to get these jobs is the other side. Developing countries, especially, know that skills development is necessary if they are going to attract investment that will create decent jobs and raise productivity.