Threats of consumer backlash and criticism from unions and the media have sensitised many Western companies to pay greater attention to how their Bangladesh suppliers operate. But that's only a starting point, as many have been aseerting. So, what next?
This subject has been explored by Motoko Aizawa and Salil Tripathi of the Institute of Human Rights and Business (IHRB) in a paper titled 'Beyond Rana Plaza: Next steps for the global garment industry and Bangladeshi manufacturers' in Business and Human Rights Journal, published by the Cambridge University Press in January this year.
The authors point out that Bangladeshi factories operate on high volume and thing margins, and for changes to take place, "Bangladesh will need many more better-trained incorruptible inspectors and independent unions that can negotiate without fear." This, they believe, will take time.
- Develop new financing mechanisms
- Improve supervision
- Fix the factory ownership problem
- Establish domestically-owned and domestically-driven multistakeholder processes
- Empower workers
- Innovative financial models to fund factory improvements
The process has to be continual, but a number of steps towards this can be immediate, and perhaps need to be implemented as well. But for all that, the context itself cannot be ignored. Aizawa and Tripathi write, "Garment exports will remain a critically important sector for Bangladesh for many more years. Any damage to the sector—through sanctions or consumer boycotts—will have catastrophic impact on some of the most vulnerable and poor workers in global supply chains. Bangladeshi union leaders have stressed that they are against boycotts."
The first step the authors point out is the need to develop new financing mechanisms. They talk of William Wilberforce and other campaigners in Victorian England who created a moral climate against the scourge of slavery, and parliamentarians, many of them slave-owners or traders themselves, who voted to outlaw slavery. The authors put their point across, "Rules that require parliamentarians to recuse themselves from voting on legislation where there is a clear conflict of interest are necessary, with proper oversight mechanisms."
Aizawa and Tripathi argue that ultimately it will have to be Bangladesh which will have to take ownership of the (safety and rights) issues. "For initiatives like the Accord and the Alliance to succeed in the long run, local ownership and genuine local participation are needed. These initiatives should not be perceived as paternalistic foreign intrusions and need to engage local industry in a more equitable relationship."
Precious little can be achieved without proper monitoring, especially given the fact that besides the 4,296 factories that are exporters to major markets in the West, there are around 2,500-3,000 factories that produce exclusively for the domestic market. "Government inspectors are unable to monitor all factories. Supervisors sometimes overlook infractions, partly due to bribery. It is critical for the government to increase the number of supervisors, improve their salaries, and ensure that supervisions are consistent and regular."
The problem at hand is huge, and there will have to be multiple finding mechanisms to tackle the problem at hand. The question also arises if Bangladeshi itself is ready. Aizawa and Tripathi point out, "The capacity of recipients to absorb such funds is a major issue, and it will be necessary to develop mechanisms to ensure sensible distribution of funds to avoid potential inflation or corruption. Stakeholders would have to agree to specific social outcomes (which could include a compensation fund, a trust fund to pay for factory improvements, and so on) that must be achieved and to administer the funds effectively and efficiently."
The London-based Institute for Human Rights and Business is dedicated to being a global centre of excellence and expertise on the relationship between business and internationally proclaimed human rights standards. IHRB undertakes cutting edge research and analysis on key thematic issues at the interface of human rights and private sector activity. The institute works towards raising corporate standards and strengthening public policy to ensure that the activities of companies do not contribute to human rights abuses, and in fact lead to positive outcomes. Aizawa is the institute's Managing Director, and Tripathi a Senior Advisor (Global Issues).
