MADE IN BANGLADESH: BETWEEN GLOBAL GARMENT RETAILERS AND WORKERS WELFARE

By Dennis Aribido | twitter: @dennisaribido

The April 24, 2013 factory building collapse in Bangladesh with almost 3,500 garment workers, mostly teenagers, housing five garment factories, drawn the world’s  attention again to the  greatest lost of lives in the history of garment industry in that country after a garment factory fire out-break which occurred earlier in the year. About 1,127 workers lost their lives in this latest incident.

The garment industry accounted for about 70% of the country’s exports generating $20 billion in revenue annually. The sector serves the major global garment retailers like – Zara, H&M, Wal-Mart, Mango, Primark, GAP, JC Penny, Marks & Spencer and others. The fact that the industry employs about 80% women, yet it four million garment workers earn an average of 10 - 30 cent an hour as wages and work in mostly unsafe buildings under deplorable conditions are indication of low level of poverty. Bangladesh is one of the poorest countries in the world with most people living on less than $2 a day.

Following the incident, Civil Society and International Rights Organisations raised concerns about the safety and unethical standards, poor working conditions, child labour issues, low wages, corruption and non-compliance with international labour laws. The big retailers in US and Europe have been called to show accountability and responsibility toward their transactional deals with the manufacturers as well as commitment to implementing global best safety practices. This will ameliorate the current crises rocking the industry.

In the wake of these calls, the Industrial Global Union of Geneva, Switzerland set a deadline for global retailers that source products from Bangladesh factories to sign agreement ensuring workers safety. About 24 large global retailers have now signed the multi-stakeholder responsibility accord – a 5 years plan - to work closely with the manufacturers and the government to ensure better safety and working condition. According to a report in Knowledge@Wharton Today, under the legally enforceable agreement, retailers will finance independent factory safety inspections and mandatory repairs and renovations, make reports public, allow workers a say in safety conditions and stop sourcing from those factories that do not meet specifications. Retailer like Wal-Mart has already blacklisted close to 250 factories it found unsafe. The United Nations is also expected to push the government to carrying-out reforms in the sector through extensive collaboration with International Labour Organisation (ILO) to recommend standards in the country’s garment industry.

The Bangladeshi government needs to show greater commitment towards policy reforms, better regulatory framework and collaboration with labour unions, global retailers, and international bodies to fight corruption while ensuring punitive measures and tougher sanctions on violators. The Foreign Minister speaking at the UN said, the country welcome the new development and looking forward to collaborating with the stakeholders in working out best strategies to improve the sector.

The incident in Bangladesh should serve as a great lesson to other parts of the world mostly the emerging markets with similar or even worst situations to reform their labour policies, improve on workers welfare and safety and also implement global best practices. They need not wait for the inevitable but rather proactively optimize the safety standards and put in place adaptive measures to prevent the inevitable from happening. Also, it is a wake-up call to the international watchdogs to galvanize the needed resources and the use of various channels to compel all stakeholders to show accountability, commitment and responsibility.

POPE BENEDICT XVI RESIGNATION: A LESSON FOR NIGERIA

By Dennis Aribido

The sudden resignation notice of Pope Benedict XVI (85) on Monday 11^th February, 2013 was a surprise to the catholic community and the world. He stated failing health due to old age as the reason for his decision to abdicate on the 28^th of February, 2013. He will be the first Pope to resign his position since over 600 years. The charismatic Pope John Paul II suffering a period of ill health and his inability to perform his papal functions died in May 2005. After his demise,Cardinal Joseph Ratzinger (as was then known) was appointed Pope  to succeed him.

Although resignation is rear in Catholicism and viewed in some quarters as to the extreme, but the step is a honorable one and most welcome. It shows that the Pope is a mortal and definitely with some limitations. By accepting his health limitation and setting a path to a successful succession process, he has shown his true love for the Holy See and won the admiration of the world. As stated by the Vatican spokesman, Fr. Federico Lombardi, the conclave would elect a new Pope before the Easter season.

A Lesson for Nigeria

Africa remains the emerging market for the world’s goods and services. Most African nations had experienced long autocratic rule. Nigeria as the most populous nation in the Sub-Sahara Africa had witnessed military interregnum and political instability since her independence in 1960, up until 1999 when a new democratic dispensation was birthed. In Nigeria, leaders do not resign their position as a result of ill health, scandal or corruption - which has become endemic- they are rather sacked or die in the position. Over twelve years of democratic rule, we have seen people in authority abused power, looted the nation’s treasury, and paraded their ill-gotten wealth around for the poor and starving Nigerians. This may have brought about the high crime rate and insecurity in the country of 160 million people with the majority unemployed, leaving on less than a dollar per day.

The nation once had a president with the plan to extend his rule beyond the constitutional term limit. This move failed woefully as the people’s assembly vehemently opposed the idea of tenure elongation.

With a sit-tight-syndrome (STS) also bedeviling the succeeding administration of Yar’adua, the state of his health was managed with utmost secrecy. While in Saudi Arabia for treatment of an undisclosed ailment, the governance was left with his cronies, thereby abandoning the constitutional process of handing over to his deputy. This led to a constitutional crisis and the nation was on the path of anarchy before the intervention of good-spirited Nigerians and the Assembly that restored constitutional order. He never resigned even when he was brought back to the country, until his death.

Recently, Dutch Queen Beatrix announced her plan to abdicate the throne to her son Prince Willem-Alexander, after three decades of rule. This is a monarch that has the liberty of a lifetime rule. But as mortals, we all have our limitations in respective of cultural order, creed or belief. The former South African president Nelson Mandela having fought to end Apartheid and was imprison for 27 years, only served as president for five years and handed over power. He had opportunity to perpetuate himself in power but rather took the path of honor. He had since retired from public life due to his age and failing health and remains a cynosure of the world. There is indeed honor in moral sacrifice not in immoral show of thirst for power and corruption.

Our leaders need to learn how to make impact and leave the stage when the need arises ( i.e when it  is obvious they cannot perform or deliver on their mandates) and do that with honor and dignity. This will engender institutional sustainability and build confidence in the polity.

The Pope is well loved by people all over the world and will be remembered for his conservative approach to the church reforms and teachings of love and harmonious co-existence among various religious groups.

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Aung San Suu Kyi Victory, a Ray of Democratic Hope in Myanmar

By Dennis Aribido

The recent by-election in Burma into some parliamentary seats that led to the victory of the country’s pro-democracy leader Aung San Suu Kyi winning a seat to represent her constituency was a beacon of hope for the impoverished nation. Burma also know as Myanmar having been under military junta for long, conducted election 2010 that saw several retired members of the junta emerging into various seats in the parliament as well as the presidency. Though the election was largely seen as a coronation – mere representation of the military junta and their cronies – it was marred with irregularities and electoral malpractices. Suu Kyi’s National League for Democracy party (NLD) boycotted the election due to wide spread threat and intimidation to party members and supporters.

A surrogate of the junta, President Thein Sein surprised the world when he extended an invitation to Suu Kyi last year to discuss the future of the country. He released dozens of political prisoners and initiated pockets of reform. This action was well received by the international community leading to the visit of the US Secretary of State, Hillary Clinton to Burma in 2011 to further push for more commitment to freedom, rule of law and possibly considering lifting decades of sanctions that have crippled the nation’s economy.

Aung San Suu Kyi (66) a Nobel Peace Laureate whose party won the 1990 national election in a landslide victory, saw the election annulled and spent much of the two and the half decades under house arrest imposed by the junta. This action witnessed international condemnation and multiple impositions of sanction to force the repressive regime in releasing the laureate and all other political prisoners.

The victory of Suu Kyi at the poll last Sunday is a testimony of her popularity and the hope embedded in her personality. This ray of hope is what Suu Kyi said encouraged her and has no regret in participating in the election. Even with the overwhelming victory of the party at the last poll and her presence in parliament, expectations are very high.  A visible change – the economy, finance, press freedom, development, and institutional reforms – might take a bit of time to happen with the ruling junta’s party still forming the majority.

To Aung San Suu Kyi, her victory is a gain to democracy and a ray of hope in Burma. Naypyidaw should be encouraged to do more in demonstrating to the world that the commitment to reform, releasing of all the political prisoners and putting the country on the part of economic and infrastructure development is on course. 

World Bank Presidency: Meritocracy or Hypocrisy?

By Dennis Aribido

About a couple of weeks ago, since the news of likely successor of the incumbent World Bank president Robert Zoellick broke, several names have been bandied around and three renowned personality were eventually nominated. Amongst, were Nigeria’s Finance Minister Dr. Ngozi Okonjo-Iweala , Colombia’s José Antonio Ocampo and America’s health expert, Professor Jim Yong Kim  whose nomination was announced by President Obama.

The current state of the World Bank requires a leadership who is well grounded in the global finance, economy and development affairs. In appointing the next leader of the bank therefore, the world requires a very high sense of responsibility, transparent process – void of stereotypes but base on merit – in taking that decision. Otherwise, it will be like the hypocritical preacher with a sermon of “do as I say and not as I do” which would neither help the institution nor its purpose.

In reviewing the CV of the three nominees, it is evident that Dr. Ngozi Okonjo-Iweala has the most impressive work experience and excellent background in finance, development and economy having worked with the bank for over two decades rising through the ladder to become the bank’s Managing Director in 2007. In between, she served as Nigeria’s finance minister (2003 – 2007) during which period she secured the country’s multi-billion dollars debt cancellation from Paris Club (group of creditors). The economy also recorded a very significant growth with profound institutional reforms in key sectors and transparency in public finance. In 2011, she was again re-appointed to the cabinet as Nigeria’s Coordinating Minister of the Economy and Finance Minister by President Goodluck Jonathan. Since her resumption, the Sovereign Wealth Fund (SWF) has been established with an initial seed capital of $1billion. Fiscal discipline is being restored with a cut in annual budget spending to reduce deficit.

Ocampo’s experience as Colombia’s Finance Minister and the UN can be seen as plus. However, according to The Economist, his CV is of the international bureaucrat.

The news of Kim’s nomination was received with mixed feelings, having a chronicle experience in health care – with a global HIV/AIDS and his Partners in Health initiative – which would have been considered to head the world’s health body (WHO) rather than the bank. Since the end of World War II, the position of the World Bank president has been the exclusive of the Americans. However, his nomination by the US may be seen as mere imposition on the world body without a clear merit.

The world watches with great attention with a hope that, President Obama will eschew the old order and allow the current global realities to prevail in the process of appointing the next bank’s President. Let us abhor hypocrisy and let MERITOCRACY be enthroned!