Project Notice |
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| PNR | 309 |
| Project Name | Promotion of social and environmental standards in the industry |
| Project Detail | The ready made garment (RMG) industry in Bangladesh now exports over USD 17.91 billion worth of garments and is the country’s major source of foreign exchange earnings. It has radically changed the lives of millions of Bangladeshis. Garment factories directly employ more than 3.5 million people — most of them poor women, for whom 30 years ago the formal sector provided no employment — and indirectly support millions more. The industry’s success derives from the 1974 Multi Fibre Arrangement (MFA). The first factories in Bangladesh were set up in the late 1970s as subcontractors for Hong Kong, Korean, and other East Asian companies seeking to circumvent export quotas imposed on their home countries. MFA quotas created a lucrative niche for the Bangladesh industry, which local entrepreneurs quickly moved to fill. Large, modern factories were built on the outskirts of Dhaka and Chittagong, and in the government’s export promotion zones. The sector expanded and profits grew. At first, issues such as safety, workers’ rights, environmental pollution and productivity were neglected. More recently, however, as the RMG industry has grown, so too has the need for producers and buyers to comply with international standards in order to maintain their position in the market. The German and Bangladesh governments began working together in 2005, to encourage compliance. The most recent phase of this cooperation began in 2009 with the start of the programme ‘Promotion of social and environmental standards in industry’. It now also receives support from the European Union (EU). Productivity and compliance with international social standards are high. Garments are produced in an environmentally sustainable manner, which contributes to the further development of the RMG industry and national economic growth. Approach The programme is developing practical, workable solutions in collaboration with several ministries and the inclusion of all the major players. Local suppliers, international buyers, non-governmental organisations, industry associations and the relevant members of the government are all working together to improve social and environmental standards. The programme provides capacity building measures and encourages innovation. It runs training courses for compliance inspectors with the Ministry of Labour and Employment, the Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA), and the Bangladesh Garment Manufacturers & Exporters Association (BGMEA). The professional associations and the state inspectors are also addressing occupational health and safety issues, for instance through the assessment of noise levels and air pollution in factories. Other courses have been held for master trainers of social compliance, who now work as consultants with various stakeholders in the industry. GIZ is also supporting NGOs active in the field of workers rights, such as the Awaj Foundation and Karmajibi Nari in Dhaka, and OWDEB and Agrajatra in Chittagong. These NGOs have set up women’s cafés where the textile workers can drink tea and get legal advice, for instance about labour disputes and workers’ rights (the duration of maternity leave etc.), or about domestic violence. The programme trains environmental auditors, qualifying them to issue ISO 14001 certification to firms that meet environmental standards. It is working directly with dyeing and washing plants in Bangladesh to help them improve their chemical management processes to fulfil international requirements, and introduce environmental management systems. It also trains energy auditors, and provides advice to factories on energy efficiency. The project is working with the Department of Environment at the Ministry of Environment and Forests (MoEF) to draft guidelines and standards on the disposal of textile sludge — the residues from treated wastewater after the washing and dyeing processes, which can contain hazardous substances. The guidelines and standards will be incorporated into the environmental legislation of Bangladesh. Through development partnerships with the private sector, the programme is cooperating locally with a number of major retailers, in order to improve the working conditions within their supplier firms. In another joint project with the private sector, it is also assisting BKMEA and BGMEA to open up new and emerging export markets. Results achieved so far 1. Social compliance The social compliance status has improved in around 2,000 factories employing 1.5 million workers. Some 35,000 workers have benefited from legal empowerment measures, enabling them to claim their rights through peaceful means. Relations between workers and management have improved in nearly 70 factories, and 5,000 labour disputes have been peacefully and fairly resolved. 2. Promotion of environmental standards and ecological efficiency Chemical and environmental management systems have significantly reduced environmental pollution. The better management has also improved conditions in the workplace. More local consultants are now qualified, and are employed to promote cleaner, greener production In a number of factories, teams have been established for chemical management (14 factories), energy saving (34), and environment management (9). Five key energy saving measures have been introduced, bringing energy savings of up to 40% in the factories. Some 33 auditors and 178 energy managers have completed training and are now supplying auditing and energy efficiency services in the market. 3. Skills development for higher productivity and quality Ten training institutes are now able to provide market-oriented training. After completing training, around 660 formerly unskilled workers now have better prospects of employment and higher incomes. The number of managers who have learned to apply lean management techniques has risen from 100 to around 270, while the number of factories practising such techniques has increased from 10 to 40. In these factories, the lean management methods have increased labour productivity by 80% and lowered production costs by 40%. 4. New and emerging markets for garment exports The rate of growth in exports to non-traditional markets more than doubled between 2005 and 2011, to 15.5%. Important new markets included Brazil, Mexico, Chile, Japan, Hong Kong and South Africa. In three separate missions between 2009 and 2010, BKMEA attracted almost 90 buyers and exporters from Hong Kong to explore new opportunities. As of April 2011, the Government of Japan simplified and relaxed its rules of origin for imported Bangladeshi kknitwear. In 2010, two representatives of BGMEA and BKMEA attended a course in Cambodia entitled ‘Working with Stakeholder Dialogues’, thereby improving their services. |
| Funded By | Deutsche Gesellschaft f?r Internationale Zusammenarbeit (GIZ) |
| Sector | Environment |
| Country | Ghana , Western Africa |
| Project Value | Plz Refer Document |
Contact Information |
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| Company Name | German Federal Ministry for Economic Cooperation and Development (BMZ) |
| Address | Postfach 12 03 22, 53045 Bonn, Germany, Tel: +49 / 228 / 9 95 35-0, Fax: +49 / 228 / 9 95 35-35 00. |
| Web Site | http://www.bmz.de/ |
