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Bridging the Gender Gap: Empowering India’s Female Entrepreneurs

Mabruk Kabir's picture

A quiet revolution has been sweeping the Indian political landscape. Last year, the reservation (quota) for women in panchayats — rural local self-government — was increased to at least 50 percent, bringing women into the political fold in vast numbers.

However, economic empowerment may not have kept pace with political empowerment. When it comes to female labor force participation, gender disparities remain deeply entrenched. The 2012 World Economic Forum's Gender Gap Index ranked India 123rd out of 135 countries on economic participation and opportunity.

What Does More and Better Jobs in South Asia Mean?

Pradeep Mitra's picture

The Track Record

Imagine adding the population of Sweden—somewhat under 10 million— to your labor force year after year for a decade. Insist that the wage workers among them earn increasing real wages and that poverty among the self-employed decline over time. What you have just described is not quite South Asia's record on the quantity and quality of job creation between 2000 and 2010. The region has done better.

Poverty has fallen, not only among the self-employed, but among all types of workers—casual laborers who are the poorest, regular wage and salary earners who are the richest and the self-employed who are in between. This hierarchy of poverty rates among the three employment types has endured over decades. Thus improvements in job quality have occurred predominantly within each employment type rather than through movement across types. The composition of the labor force among the employment types shows little change over time. The self-employed, many of whom are in farming, comprise the largest share, reflecting the predominance of agriculture in much of the region. Casual laborers make up the second largest share in rural areas.

How are Bangladeshi Migrants Who Fled the Libya Conflict Starting Afresh?

Naomi Ahmad's picture

Earlier this year, Mohammed Faruk Ahmed was one of 37,000 Bangladeshi migrant workers forced to flee the conflict in Libya.

Forsaking his job and only source of income, he returned home empty handed. Watch this video to know how returnee migrants like Ahmed, now have a chance to rebuild their life, thanks to a World Bank-sponsored initiative to repatriate and support Bangladeshi migrants from Libya.

Will Possible Labor Policies by Gulf Countries Affect Remittances to South Asia?

Ceren Ozer's picture

My entry last week gave a quick profile of the South Asian overseas workers and discussed the crucial role of remittances received from the Gulf Cooperation Council (GCC) countries (Saudi Arabia, the U.A.E, Kuwait, Qatar, Bahrain and Oman) for South Asian economies. Today I’d like to discuss whether changes in the labor market policies of the GCC countries could jeopardize job prospects for South Asian migrant workers.

Creating jobs for GCC citizens is already on the top of the agenda in some of these countries and is bound to gain more momentum with the youth bulge. Efforts to create jobs for nationals through the “nationalization of the labor market” have been further intensified as a response to the recent events in the Middle East. Across the GCC, additional policy measures are being announced highlighting the need to replace expats with nationals in private and public sector. These messages have been the strongest in Saudi Arabia, but also in the U.A.E. and Kuwait.

Will recent events in the Middle East Affect Remittance Flows to South Asia?

Ceren Ozer's picture

For countries with substantial numbers of workers in the Middle East, recent events have not only raised concerns for the repatriation and welfare of their citizens, but have also raised fears of a possible slowdown in remittances. Will remittance flows noticeably decrease due to recent events in Egypt, Libya, and Tunisia?

For South Asian countries, remittances are among the largest and most stable sources of foreign exchange and their developmental impact have been remarkable. For example, in Nepal national poverty level has come down from 42% to 31% during 1996 to 2004, and to 21% today, largely on the account of remittances which finance household consumption as well as education and health expenditures. Nepal, Bangladesh, and Sri Lanka, were among the top 15 remittance recipients in 2009—with inflows being equivalent to 24% of the GDP in Nepal, 12% in Bangladesh, 8% in Sri Lanka, 5% in Pakistan and 4% in India.

Gulf States employ more than 11 million expatriate workers, an estimated 8 million or more from South and East Asian countries. Saudi Arabia, the U.A.E, and Qatar are top destination for South Asian migrants and are main sources of remittance inflows. The table as well as the country profiles below demonstrates the sheer magnitude of migrant workers in the Arab Gulf countries and their contributions to the labor force; sometimes greater in overall numbers and proportion than the respective labor force in the countries.

Financing Living Wage in Bangladesh’s Garment Industry

Zahid Hussain's picture

The Wage Board on garments in Bangladesh nearly doubled minimum wages on July 29, 2010. The minimum wage at the entry level will be raised to Tk 3,000 a month (or about $43) from Tk 1,662.50 ($24). The new pay structure, proposed to be effective from November 1, maintains the existing seven grades with the highest pay fixed at Tk 9,300 ($140) per month. About 3.5 million Bangladeshis work in the garment industry, which accounts for 80 percent of the country’s exports. International companies like Wal-Mart, JC Penney, H&M, Zara, Tesco, Carrefour, Gap, Metro, Marks & Spencer, Kohl's, Levi Strauss and Tommy Hilfiger all import in bulk from Bangladesh.

Garment workers apparently are unhappy over their wages, even after the proposed increase. They protested by smashing vehicles and blocking traffic in various garment sites in Dhaka following the announcement of the wage increase. Why has the frequency of violence increased?

Let Good Sense Prevail in Bangladesh’s Garment Industry

Zahid Hussain's picture

The garment industry in Bangladesh has been subject to several tests of resilience in recent years—global recession, energy shortage, input price increases, and labor unrest. Of late, the labor unrest has escalated apparently triggered by disagreement over re-fixation of minimum wage. The workers, for quite some time now, have been pressing for adjustment in minimum wage that was last increased in 2006, after 12 years, from Tk. 930* (about $60 in PPP) per month to Tk. 1,662 (about $108 in PPP) per month. The government in April 2010 committed that a new pay-scale for the RMG workers will be announced before Ramadan, and formed a Wage Board for making the wage recommendations. For reasons not yet fully understood, the labor unrest was reignited recently without waiting to hear what the Wage Board’s recommendations are. However, it is abundantly clear that dissatisfaction with the nominal level of the minimum wage is at the center of the discord between garment owners and workers.

Universalizing Opportunities through Investing in Education in India

Joe Qian's picture

The World Bank released a report this week on the current state of the educational system in India and concluded that while investments and performance have improved at the primary and higher education levels, there remains a rather considerable gap in access, distribution, and achievement at the secondary level.

As India continuously develops and entrenches itself as a major player in the global knowledge economy, the majority of growth have been in the skilled services and manufacturing sectors. This requires that the 12 million young people who join the labor force every year have the necessary skills to access these more lucrative jobs and compete successfully in the global economy, especially as the IT sector has become an essential driver of the economy.

“Evidence from around the world suggests secondary education is critical to breaking the inter-generational transmission of poverty -— it enables youth to break out of the poverty trap.” Lead Education Specialist Sam Carlson said.

However, India's gross enrolment rate (GER) at the secondary level of 52% is lower than the GERs of countries like Sri Lanka (83%) and China (91%). However, I was quite surprised that the rate was also lower than countries with lesser GDP per capita such as Vietnam (72%) and Bangladesh (57%).