Mitigating the ready-made garment sector’s Covid-19 crisis in Bangladesh: Protecting workers or the interests of the industry?

Abstract

Bangladesh’s ready-made garments (RMG) sector is the country’s primary export industry and the largest source of foreign currency, employing around 2.59 million workers. However, its exposure to global volatility and crises was vividly demonstrated during the COVID-19 pandemic. Faced with order cancellations, factory closures, and widespread unemployment, the government swiftly responded with a financial stimulus package to cover workers’ wages. Despite these efforts, RMG workers experienced job losses, reduced incomes, health risks, and various other insecurities. We take a political economy lens to explore the interests, incentives, and relative power of various stakeholders. The chapter seeks to understand the allocation and implementation of the financial stimulus packages, examining who gained and who lost, and why. It discusses health and livelihood risks confronting workers and the challenges of retaining employment, safeguarding earnings, and having their voices heard. We undertake an analysis of policy responses and their accomplishments and challenges. The chapter draws upon interview data, ongoing media monitoring, and secondary literature related to labour rights and the RMG sector. It concludes with a discussion of the implications for workers’ welfare and rights in the post-pandemic economic landscape, where Bangladesh, much like other South Asian economies, remains susceptible to potential global economic downturns.