72703 Fostering Women’s Economic Empowerment Through Special Economic Zones The Case of Bangladesh In Partnership with Canada and the World Bank Group Gender Action Plan THE WORLD BANK Fostering Women’s Economic Empowerment Through Special Economic Zones The Case of Bangladesh © 2011 The International Bank for Reconstruction and Development/The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org All rights reserved. A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclu- sions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Table of Contents Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v Foreword . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii Chapter 1: Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Chapter 2: The Business Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Chapter 3: Zone Programs in Bangladesh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 BEPZA Counselor Data Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Chapter 4: Obstacles to Women’s Economic Participation in Bangladesh. . . . . . . . . . . . . . . . 11 Legal Framework and Impact on Women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Social and Cultural Factors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Professional Advancement Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Opportunities and Challenges for Female Entrepreneurs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Chapter 5: Good-Practice Enablers of Women’s Economic Empowerment in Bangladesh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Zone Compliance Monitoring: BEPZA Counselors Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Women’s Health Program for Business Returns: Extending Service Delivery Program and ROI Study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Comprehensive Partnership Program, Chittagong EPZ. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Various Brand and Industry Association Programs Supporting Women’s Health, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Rights, and Literacy Chapter 6: Recommendations: Opportunities for Innovation in Bangladesh. . . . . . . . . . . . . . 31 Recommendation 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Recommendation 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Recommendation 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Recommendation 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Recommendation 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Chapter 7: Implications for Competitiveness. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Chapter 8: Resources: Key Implementers and Experts in Bangladesh . . . . . . . . . . . . . . . . . . . 59 Acknowledgments T his report has been produced by a team chapters were refereed by a panel of experts com- led by Narissa Haider and Sevi Simavi prising Thomas Farole (World Bank), Ganesh of IFC.The core team was comprised of Rasagam (World Bank), Tara Holeman (IFC) Martin Norman and Gokhan Akinci of IFC as and Naoko Otobe (ILO). In addition, the au- well as Ayesha Barenblat, Alison Colwell, and thors gratefully acknowledge the invaluable com- Racheal Yeager of Business for Social Responsi- ments received from industry and NGO repre- bility (BSR). The team gratefully acknowledges sentatives which included Carrefour, Gap, H&M, Monika Weber-Fahr, Cecilia Sager and Sumit Jabil, KappAhl, Levi Strauss, Li & Fung, Lindex, Manchanda of the World Bank Group for their Marks & Spencer, Nike, St. John’s Medical Col- intellectual contributions to the overall design of lege of Bangalore, Tesco and Wal-Mart. the study. The publication of this report was made possible Thoughtful comments and suggestions enhanced by the generous support of the World Bank Group the overall quality of this publication. Individual Gender Action Plan and Canadian International Development Agency. Foreword W omen are a powerful economic force. zone and enterprise competitiveness in developing For a country’s growth, they make im- countries. This report—“Fostering Women’s Eco- portant contributions as entrepreneurs nomic Empowerment Through Special Economic and employees. And they support development Zones”—summarizes their findings. more broadly, through the care and attention they bring to the welfare of their families. Studies show What is interesting: Most successful economic that opening economic options for women puts zone management approaches that also support poverty reduction on a faster track. Special Eco- women economic empowerment operate along nomic Zones—geographical regions with special three dimensions—fair employment and work- regulatory and legal regimes that aim to increase ing conditions for female employees, equal access domestic and foreign direct investment —offer to opportunities for professional advancement, an opportunity for countries to embark on such and investment opportunities for female entre- a path. preneurs. The report presents an excellent com- pendium of policies and practices, ranging from But how? Our teams have looked across the globe, laws, regulations, labor policies, gender-sensitive analyzing the influence special economic zones professional development programs, family sup- (SEZs) can have on promoting women’s economic port mechanisms and women’s health programs, empowerment while at the same time boosting through to supplier diversity and capacity-building viii Fostering Women’s Economic Empowerment through Special Economic Zones initiatives. Based on research from eight countries between better gender-adjusted labor practices around the world, we are sure you will find practi- and their performance. The experiences presented cal insights and recommendations here that also fit in this report will provide valuable lessons for us your situation! in systematically creating win-win options, open- ing up economic opportunities for women entre- The World Bank Group is committed to reducing preneurs and women employees that also result in gender based barriers in development, and with re- growing investments and more competitive indus- gard to our engagement with the private sector we tries. The report is the product of a two-year col- focus on investment climates, helping governments laboration between staff in the World Bank’s Fi- understand the gender dimensions of business re- nancial and Private Sector Development group and form and growth, and on firm-specific approaches, IFC’s Women in Business Team. We are grateful such as working with financial institutions on in- for the support and funding from the Canadian In- creasing access to finance for women entrepreneurs, ternational Development Agency (CIDA) which or with firms on understanding the relationship has made this important effort possible. Sujata Lamba Monika Weber-Fahr   Director Global Business Line Leader Competitive Industries Practice Sustainable Business Advisory Financial and Private Sector Development Advisory Services World Bank International Finance Corporation Chapter 1 Introduction T his study examines the role export process- improvement of policies and programs targeting ing zones (EPZs) can play to create ini- female workers to help boost competitiveness and tiatives that promote women’s economic promote zone investment growth, because of the participation as a way to boost trade-zone com- significant participation of women in the ready- petitiveness and generate sustainable jobs. Find- made garment (RMG) industry in the EPZs in ings are based on field research in eight countries, the country. as well as a global literature review. The study identifies opportunities to support Methodology women’s economic participation at three levels: This case study is based on findings from a com- MM Female workers’ working conditions, examin- bination of stakeholder organization interviews, ing legal and sociocultural factors; qualitative factory-based research, and desk re- MM Opportunities for upward mobility; and search. The primary research included 45 one-on- MM Female entrepreneurship investment opportu- one and group interviews with civil society groups, nities. workers’ organizations, government, and private- sector stakeholders (including international buyers The People’s Republic of Bangladesh (hereafter and factory managers). Bangladesh) presents fantastic opportunities for Stakeholder Type Number Objective of Engagement Civil Society 10 Determine challenges facing Bangladeshi women at work and at home, and learn about programs and policies seeking to address those challenges. Female Entrepreneurs 3 Identify general challenges facing female entrepreneurs and assess specific challenges to starting/owning a business in a zone. Identify recommendations to facilitate increased female entrepreneurship in zones. Worker Organizations 2 Identify labor rights issues unique to women, challenges to their resolution, and recommendations for the private sector. Government 4 Identify government’s priorities, limitations, and potential role in solution. Discuss regulatory systems in place. Private Sector 26 Identify drivers and challenges. Uncover perspective on female employees. Discuss existing or potential future programs or policies. 2 Fostering Women’s Economic Empowerment through Special Economic Zones To collect EPZ-relevant statistical data, BEPZA ports by counselors. The thirteen factories included counselors (see Good Practice Example 1, below) 7 garment, 2 ladies’ undergarment, 2 tent, 1 pant collected information on a randomized sample of (flat-knit), and 1 t-shirt (flat-knit) manufacturing factories and interviewed a sample of 395 work- facility. Of the factories included, the average size ers—208 female and 187 male. These activities was ~2,000 workers with approximately 62 percent were used to assess unique challenges and oppor- women and 38 percent men. tunities for female workers in EPZs. A significant body of literature exists on the RMG Using tools developed by the researchers, BEPZA sector in Bangladesh and the role of women within counselors conducted 41 group interviews with that sector. Primary research was augmented by a total of 395 workers. At least 2 women and 2 desk research, including twenty-four Bangladesh- men were interviewed at each facility. Thirteen specific reports, in addition to a review of related factories were randomly selected for detailed re- global research. Chapter 2 The Business Case W omen represent the majority of work- Another key area of business benefit is in risk ers in export processing zones in Ban- mitigation—preventing capital flight and sup- gladesh, and as such, any investment porting compliance with the law vis-à-vis women in this group will have far-reaching impacts, from workers’ rights. This is important to buyers, and as both business and social perspectives. women are among the most vulnerable employ- ees, their need for protection is heightened. In- Creating women-friendly working environments creasingly, multinational corporations (MNCs) has been shown to have measurable, positive effects are considering social and environmental perfor- on an enterprise’s bottom line, including: mance in addition to price, quality, and on-time delivery; gender-inclusive programs represent a MM Reduced absenteeism and turnover, increased key area of investment to prevent capital flight productivity, and enhanced worker loyalty; to other zones or enterprises with better social MM Legal compliance and risk mitigation; and programs. MM Improved worker satisfaction and worker- management communication. According to one company interviewed, the busi- ness benefits of investing in women go beyond one Investments have been shown to reduce absentee- factory or one international company; supporting ism and turnover in particular. For example, a 2007 female factory workers is directly tied to the sus- study conducted in one factory in Bangladesh tainability of the garment industry because of its found a 3:1 return on investment from a women’s dependence on millions of female workers.2 health initiative, with returns realized through fewer days lost to absenteeism and decreases in This study uncovered many examples of programs staff turnover.1 for which there is a clear business case for enter- prise investment. Quantitatively and qualitatively, factories and international buyers interviewed for this study agreed that there were business benefits from workplace programs targeting women, in the form of enhanced worker loyalty and skills, reduced ab- 1 Extending Service Delivery, “Effects of Workplace senteeism, and reduced turnover. The assumption health program on absenteeism, turnover, and worker can be made that these results also contribute to attitudes in a Bangladesh garment factory,” 2007. improved productivity and quality. 2 BSR Interview, June 2010. 4 Fostering Women’s Economic Empowerment through Special Economic Zones Absenteeism and Turnover Examples • In Bangladesh, China, Egypt, India, Pakistan, and Vietnam, HERproject (or Health Enables Returns)a teaches female workers about reproductive health, family planning, and how to care for themselves through a series of in-factory educational sessions. Those workers in turn counsel and educate their peers in the factory. The business benefits from the program include decreased health-related absenteeism and staff turnover, an increased female labor pool, and improved worker-management communication. • A garment factory in El Salvador offers in-factory health services in addition to those provided at the zone clinic and a “Future Mother’s Club” that offers prenatal and postnatal training and support. The factory also conducts investigations into health-related issues that contrib- ute to absenteeism and uses the results to determine the content of health training programs and/or health fairs. • The YoungOne Counselor Program, Bangladesh, helps workers and management address life and work problems before they create adverse effects on women at work. The factory has a total of 49 counselors (47 women) who act as the first point of contact for female workers to go to with family matters as well as workplace grievances. The system has helped YoungOne improve anticipation of potential absenteeism as well as develop better systems to explain and avoid absenteeism and turnover. • In China, the Yan Xie, Timberland, and Social Accountability International (SAI) worker committee program established an elected worker committee and informed and advised workers and management on rights and responsibility issues. Average employee tenure doubled from 12.6 months to 25 months over the course of the program.b This program does not target women only. a HERProject is a factory-based women’s health awareness raising program that has been implemented in China, Egypt, Mexico, India, Pakistan, and Vietnam. See   http://www.herproject.org/. b Ma, Martin et al, “From Words to Action: A Business Case for Implementing Workplace Standards”, Center for International Private Enterprise and Social Account-   ability International, 2009. Productivity Examples • A garment factory in El Salvador contracts 12 buses to provide free transportation to its employees. The company noted that the program has provided clear benefits for both workers and the company. Benefits for women workers include more reliable and safer transportation and more net income to provide for their families. Benefits for the company include less money spent on taxes and benefits—assuming that a transportation stipend would otherwise be paid to workers—and more reliable production schedules as a result of punctual shift changes. • Gap Inc.’s P.A.C.E. program provides professional development, literacy, and health education programs and general life-skills training to female workers in two garment factories in India. A program assessment by the International Center for Research on Women found that participating women reported higher efficiency at work, and greater ability to take on new and increased responsibilities.a • An anemia and intestinal worm treatment program and return-on-investment (ROI) study conducted in seven factories in Bangalore, India, provided drug treatment, dietary supplements, and awareness raising for women workers over a nine-month period. The program saw a reduction in workers who were anemic from 29.6 to 16.1 percent. Productivity rates for the anemic worker control group increased by 6–8 percent on average—with an average of 30 percent of factory workers testing anemic in the study, treatment programs could be expected to raise overall factory productivity by 2–3 percent.b a Impact Alliance/UNDP, “India – Gap Inc. P.A.C.E. Program for Women Garment Workers”, Case Story 70, http://www.impactalliance.org/ev_en.php?ID=49284_201&   ID2=DO_TOPIC (viewed April 1, 2011). b  Brown, D.K. et al., “Human Resource Management Technology Diffusion through Global Supply Chains: Buyer-directed Factory-based Health Care in India”, World Development (2009). Compliance and Risk-Mitigation Examples • The Friendly Environment for All program, Vietnam, was a rights and responsibilities program designed to improve a factory’s compli- ance performance by engaging workers more effectively on their rights. The program included management training and a “Worker Initiative Program” in which workers submitted ideas for factory improvements. The program improved worker-management communication, reduced turnover, and improved buyers’ relationship with the factory through increased trust.a • H&M Rights and Responsibilities Soap Operas introduce the concept of rights and responsibilities for workers through culturally sen- sitive and locally produced video dramas that can be shown during the factory lunch hour or other break periods. The soap opera format did not intentionally target female workers, yet the high percentage of women in the workplace was reflected in the films. The videos were made in 2008 and released in 2009, and cost approximately Tk 100,000 to produce, with additional resource investment by H&M staff in Bangladesh. H&M shares the videos with any company who demonstrates a clear commitment to improving its workers’ rights and responsibilities awareness.b a= BSR & Levi Strauss Foundation, “Moving the Needle: Protecting the Rights of Garment Factory Workers”, October 2009, http://www.bsr.org/reports/BSR_LeviS-   traussFoundation2009.pdf b   BSR Interview, H&M, February 2010. The Business Case 5 Improved Worker Satisfaction and Worker-Management Communication Examples • The Nordstrom Worker Professional Skills-Development Initiative, China, provides workers and midlevel management with train- ing on management, communication, and stress management. Within five participating factories in 2008–2010, 62 percent of participants were women (136 of 218). Management commented on benefits to the internal training system, the mitigation of stress and conflicts between workers and management, the reduction of turnover and recruitment costs, and the benefits of a participatory workplace. • The BSR Labor Relations Practitioners Project, China (2008–2010), provided training to supervisors and HR managers in communi- cation skills and employee relations management, labor-dispute prevention and handling, and workers’ participation and collective bargaining, addressing the communication gaps within the workplace and broader systems to supervisors and HR managers. The program organized training programs for over 1,500 factory representatives at a cost of approximately US$450 for each participant. Improved communication and management practices related to grievance handling can provide business benefits including risk management, improved worker satisfaction and loyalty, and increased productivity. Women also make critical contributions Therefore, increasing women’s economic empow- to their families and communities, and erment in SEZs, by reducing undernourishment in to national and global economies. children, will help decrease chronic infant sickness, Enhanced economic participation by women, cur- stunting, and impaired social and cognitive devel- rently underrepresented in the formal labor force opment. These shifts can contribute to a long-run in the majority of developing countries, can con- macroeconomic effect by improving human capital tribute to overall economic growth. When women and thus the labor productivity of a society.5 are free to seek an education or work outside the home, they become more able to contribute to their own development and that of their families, 3 Simavi et al., 2010 communities, and societies. In particular, greater 4 Blumberg, “Income under Female Versus Male Con- gender equality in education and income can en- trol,” Journal of Family Issues, 9(1), 1988; Desai and Johnson, “Women’s Decision-Making and Child hance a woman’s decision-making power within Health: Familial and Social Hierarchies,” Commis- the household. When men and women are able sioned by the Measure DHS project in Calverton, to take up jobs and occupations according to their Maryland, 2005. ability and preference rather than gender norms, 5 See, for example, Stephen Knowles, Paula Lorgelly, aggregate productivity may increase. And when and P. Dorian Owen, “Are Educational Gender Gaps countries are able to mobilize the equal participa- a Brake on Economic Development? Some Cross- Country Empirical Evidence,” Oxford Economic Papers tion of men and women in social and political life, 54 (1): 118–49; S. Klasen and F. Lamanna, “The Im- governments and policy–making bodies are likely pact of Gender Inequality in Education and Employ- to gain in diversity of views and voices. Finally, ment on Economic Growth in Developing Countries,” women entrepreneurs are more likely to generate Feminist Economics 15 (3): 91–132; B. Esteve-Volart, jobs for other women in the community and create “Gender Discrimination and Growth: Theory and Evi- cascading social and economic benefits of gender dence from India,” 1–68; A. Boschini, “The Impact of Gender Stereotypes on Economic Growth” (Depart- inclusion in the workplace.3 ment of Economics, University of Stockholm, 2003); T. Cavalcanti and J. Tavares, “The Output Cost of Gen- As women’s incomes rise and they expand their der Discrimination: A Model-Based Macroeconomic control over household spending decisions, their Estimate” (Universidade Nova de Lisboa and Center household resource allocation differs from that for Economic Policy Research, 2007). Matthias Busse of men. Studies have demonstrated, for example, and Peter Nunnenkamp, “Gender disparity in educa- tion and international competition for foreign direct that women dedicate higher monetary amounts investment.” Feminist Economics 15 (3): 61–90. Some to family health and nutrition, and to children’s skepticism remains about the reliability of results from education.4 Over the longer term, such shifts may cross-country growth regressions, in part because of reduce infant, maternal, and overall mortality rates. concern about simultaneity problems (between gross 6 Fostering Women’s Economic Empowerment through Special Economic Zones domestic product growth and gender equality). Two studies that address this problem, using 3SLS estima- tion techniques, are Baliamoune-Lutz, “Globalisation and Gender Inequality: Is Africa Different?” Journal of African Economies 16 (2): 301–348; and Stephanie Seguino and James Lovinsky, “The Impact of Religi- osity on Gender Attitudes and Outcomes” (UNRISD, 2009). Results from macroeconomic research on gender and growth, surveyed in Janet G. Stotsky, Gender and Its Relevance to Macroeconomic Policy: A Survey, (Interna- tional Monetary Fund, 2006) are consistent with the microeconomic research. Although causality is difficult to conclusively establish because of limited time series data, this combined body of work offers a convergence of evidence on the benefits of gender equality in edu- cation and, to a lesser extent, employment, for societal economic well-being. Chapter 3 Zone Programs in Bangladesh T he Bangladeshi zone program is publicly 16.5 percent (US$2,581.70m) of Bangladesh’s owned and regulated and includes a total total exports of US$15,565.19 million, implying of 8 export processing zones in Bangladesh. that there is remaining opportunity to grow EPZs’ Dhaka EPZ and Chittagong EPZ, the two largest share of exports.7 zones, were visited for this study. Chittagong EPZ is slightly larger than Dhaka EPZ, but the man- The largest percentages of zone investment come agement systems of the zones are identical. from South Korean investors, followed by inves- tors from Bangladesh, Japan, and China, includ- Zones in Bangladesh are regulated by the Bangla- ing Hong Kong. As of 2008, 65 percent of EPZ desh Export Processing Zones Authority (BEP- units make garments, textiles, and related prod- ZA), which is the government body tasked with ucts, and these sectors also account for 74.8 per- attracting foreign investment in EPZs, and with cent of zone investment and 86 percent of zone regulating practices within the zones. BEPZA employment. Furthermore, although the number regulates the EPZs through two main sets of leg- of garment factories in EPZs represents only 1 islation, Instructions 1&2 and the EPZ Workers’ percent of the total in the country, these facto- Association and Industrial Relations Act (2010). ries are much larger than those located outside The Bangladesh Labour Law does not apply in the of zones, and represent over 20 percent of total zones, except in instances where there is no specif- garment exports.8 ic BEPZA Instruction, in which case the National Labour Law may be followed. Trade unions are outlawed in EPZs in favor of worker-organized 6 BEPZA website data, taken October 2010, http:// “workers’ associations,” according to the act noted www.epzbangladesh.org.bd/bepza.php?id=YRINV 7 BEPZA Year Wise Export (http://www.epzbangla- above. desh.org.bd/bepza.php?id=Yrexport) and Year Wise Investment (http://www.epzbangladesh.org.bd/bepza. Dhaka and Chittagong EPZs are considered php?id=YRINV), viewed 06/22/10; BGMEA, “Com- commercially successful, with US$64.38 and parative Statement on Export of RMG and Total Ex- US$57.52 million in investment and US$1,216.49 port of Bangladesh”, http://www.bgmea.com.bd/home/ and US$1,333.53 million in exports, respectively, pages/TradeInformation, viewed 06/22/10. 8 Murayama, Mayumi and Nobuko Yokota, “Revisiting in 2009–2010.6 The RMG sector as a whole gen- erated US$12,347.77 million in exports in 2008– Labor and Gender Issues in Export Processing Zones: The Cases of South Korea, Bangladesh, and India”, 2009, representing 79 percent of Bangladesh’s to- Institute of Developing Economies, Discussion Paper tal exports. Comparatively, EPZ exports represent No. 174, October 2008. 8 Fostering Women’s Economic Empowerment through Special Economic Zones Dhaka EPZ and Chittagong EPZ have a total of younger and single or, if married, are likely to have 257 active enterprises and 208,365 Bangladeshi fewer children than women in other industries. factory workers, 63 percent of whom are women. While both EPZs are significant employers of It is often common for women to work in specific women, these jobs tend to be concentrated at the types of factories (such as garment and electronics level of assembly line workers. As illustrated in manufacturers), while men are more common in Table 2, women’s participation drops significantly other types of factories (such as textile and knit- at the staff and officer levels. wear facilities).11 Jobs are often segregated by gen- der as well—for example, women often dominate Other relevant data points include percentages of the sewing floor, while men are more likely to do temporary versus contracted workers and percent- ironing and cutting.12 ages of technical and nontechnical officer-level staff. Women represent a higher percentage of per- manent workers than of total workers, which could 9 Center for Policy Dialogue (CPD) and World Bank indicate lower turnover rates and longer terms of (2007), Bangladesh’s Apparel Sector in Post-MFA Period: service among women. Women represent lower A benchmarking Study on the Ongoing Restructuring Pro- percentages of officer-level staff, though it is worth cess, Dhaka; Kabeer, Naila and Simeen Mahmud, Rags, noting the significant difference between Chit- Riches, and Women Workers: Export-oriented Garment tagong and Dhaka zones in this regard. It is also Manufacturing in Bangladesh, Report prepared for the Commonwealth Secretariat, London, 2004; Kabeer, worth noting that women with technical qualifica- Naila, and Simeen Mahmud (2004), Globalization, tions seem more likely to receive an officer-level Gender and Poverty: Bangladeshi Women Workers in Ex- job than those without. port and Local Markets, Journal of International Devel- opment, Volume 16. 10 Kabeer, Naila and Simeen Mahmud, Rags, Riches, and Export zones in Bangladesh are generally con- sidered to have better working conditions, higher Women Workers: Export-oriented Garment Manufactur- ing in Bangladesh, Report prepared for the Common- wages, and higher productivity than outside of the wealth Secretariat, London, 2004. zones. Zone workers are also more skilled and have 11 BSR Interviews with Chittagong EPZ Management higher levels of education than those outside the and factory management in Dhaka and Chittagong, zone—one study found that female workers in February 2010; Center for Policy Dialogue (CPD) and EPZs had an average of 8 years of education, com- World Bank (2007), Bangladesh’s Apparel Sector in Post- pared with 4 years for women working outside the MFA Period: A benchmarking Study on the Ongoing Re- structuring Process, Dhaka. zones.9 In addition, EPZ workers are more likely to 12 BSR Interviews with Chittagong EPZ Management come from land-owning, food-secure households.10 and factory management in Dhaka and Chittagong, And finally, women working in EPZs tend to be February 2010. TABLE 2  ■  Number and Percentage of Female Local Workers at Job Levels Local Worker Local Staff Local Officer (Executive Level) (minimum hourly wages) (higher hourly wages) (salary wages) Female as Female as Female as Zone Male Female % of Total Male Female % of Total Male Female % of Total CEPZ 46,842 92,451 66% 5,227 1,502 22% 6,735 1,802 21% DEPZ 30,512 38,560 56% 4,040 840 17% 2,959 291 9% Source: BEPZA Zone Data December, 2010. Zone Programs in Bangladesh 9 TABLE 3  ■  EPZ Employee Positions Male/Female Data Point (CEPZ + DEPZ) Male Female Female as % of Total # of Permanent (contracted) Workers 43,603 116,010 72% # of Casual (noncontracted) Workers 10,216 15,001 59% # at Technical Officer Level 3,978 1,302 25% # at Nontechnical Officer Level 5,716 791 12% Source: BEPZA Zone Data December, 2010. Within zones, all workers are eligible to use the The data above illustrate that while there is a high- BEPZA hospital facilities and are eligible to ap- er prevalence of women on average within the sur- ply for their children to attend a school within the veyed enterprises and women tend to have a similar Dhaka EPZ. In addition, the BEPZA hospital in length of service as men, they remain largely un- Dhaka EPZ provides prenatal examinations and derrepresented in terms of supervisory positions. In vaccinations for pregnant women working within addition, the counselor surveys found that simple the zone, and factory management within the zone investments in menstrual health and hygiene, nu- is required to release pregnant workers for these ex- trition and child care would dramatically improve aminations during working hours.13 In practice, it is female absenteeism and turnover rates within these not common for factory workers to send their chil- enterprises. dren to the Dhaka EPZ school as school fees are often prohibitive. Workers do use hospital services, During the same time period BEPZA counselors though women are often reluctant to take time off also conducted 395 worker interviews that found from work to receive prenatal care, particularly if similar trends (see Table 5 below). Worker inter- they are paid on a piece-rate basis and will lose wag- views also illustrated that men and women have a es by doing so. Stories of women hiding pregnancy similar length of service: on average, 8.6 and 8.1 from supervisors to avoid compulsory prenatal care years, respectively. However, women tend to be were heard in interviews with BEPZA counselors. underrepresented in worker committees and su- pervisory positions. Reasons for turnover were also markedly different by gender, with men leaving for BEPZA Counselor Data Summary better-paying jobs, often abroad, while women left BEZPA counselors collected data from 13 enter- prises across the Dhaka and Chittagong EPZs. BSR Interviews with BEPZA, Dhaka EPZ manage- 13 Some key takeaways from these factory reports are ment and Chittagong EPZ management, February included in Table 4 below. 2010. TABLE 4  ■  Key Findings, BEPZA Counselor Factory Reports, Collected March–April 2010 Data Point Male Female Female as % of Total # of Workers 763 1220 62% Absenteeism: Most Frequently Cited Reason Family/ personal illness Menstrual pain Length of Service in EPZ (years) 8.6 8.1 # of Line and Floor Supervisors 463 127 22% 10 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 5  ■  Key Findings, BEPZA Counselor Worker Interviews, Collected March–April 2010 Data Point Male Female Female as % of Total Total # of workers surveyed 187 208 53% Missed work in last 6 months 94% Frequently cited reasons for days missed Headache, poor nutrition Menstrual pain, sick child Aware of BEPZA hospital 100% Dissatisfied with hospital service 58% Housing: Want dorms 22% Child care: Not using or not available 92% Frequently cited reasons for leaving Better-paying job Child care and family Have established bank accounts 52% 48% Direct deposit of salary in bank account, 45% 7% DEPZ (out of workers with bank account) primarily to address family and child-care needs. absenteeism. Poor personal health has resulted in This illustrates that investment in certain gender over 94 percent of workers interviewed taking sick initiatives such as better child care could help days within the last 6 months. Although 44 per- zones retain female workers and thereby boost cent percent of female workers have bank accounts, competitiveness. a very low percentage of these workers have estab- lished direct deposit of their salary. In Chittagong Overall, support services for workers are underuti- EPZ, though percentages of women with bank ac- lized and underresourced. Most enterprise-based counts are higher, almost no women or men have child-care facilities are only set up to adhere to established direct deposit of salary.14 the law, providing a room but no child-care staff. As noted by one worker, “Child-care facilities are Providing zone-wide support for worker health, just set up for buyers to examine. They are badly child-care support, better nutrition, and access to lit, poorly ventilated, and have no actual providers banking and direct deposit options within enter- on staff.” prises will particularly help address absenteeism and turnover rates among female factory workers Many workers found BEPZA school fees to be pro- and boost overall zone competitiveness. hibitive (up to half of their salary per child), and a large majority (92 percent) did not use the schools. Legal and sociocultural challenges are explored in 58 percent of workers found the BEPZA hospital more detail in the section that follows, along with to be unsatisfactory because of inadequate medicine upward mobility and opportunities for female en- provided, not enough or poor-quality doctors, a long trepreneurs. wait for service, and expensive and substandard ser- vice (answers varied). Interviews also revealed poor personal health and nutrition, due to workers’ skip- ping breakfast, enterprises’ providing “poor-quality” 14 Bangladesh Institute of Development Studies, “Bank meals or no meals, and the common occurrence of account status of workers in factories of Dhaka and dehydration and weakness, which contributed to Chittagong EPZs”, March 2011. Chapter 4 Obstacles to Women’s Economic Participation in Bangladesh A country’s legal framework and cultural and living conditions can impact women’s abil- norms play a significant role in determin- ity to work and excel at work. ing women’s economic opportunities and MM Professional Advancement: Advancement fair employment status. In addition, key issues such opportunities for women are tied to education as education, health, and living conditions impact and skills development, and also influenced by women’s ability to excel and advance in the work- social and cultural factors. place. Finally, female entrepreneurship is an area of MM Entrepreneurship: Female entrepreneurs of- opportunity where women face unique challenges. ten lack access to capital, land, and business networks, and need training on business skills, This study sought to identify key barriers and en- management, and market identification. ablers within zones that impact women’s fair em- ployment, advancement, and entrepreneurial in- This study has also identified replicable good prac- vestment opportunities in Bangladesh. The study tices in Bangladesh, which are outlined in the sec- found several common factors across countries tion “Good-Practice Enablers of Women’s Eco- that can act as obstacles to or enablers of women’s nomic Empowerment in Bangladesh” that follows economic empowerment. Policies, initiatives, and on page 25. business practices can become enablers to spur women’s economic participation. Legal Framework and Impact on These themes are explored within Bangladesh spe- Women cifically around the following categories. The primary law affecting Bangladeshi workers is MM Legal Framework: International and local the Labor Act of 2006, which consolidated parts laws pertaining to female employees and their of 25 acts into one. The export processing zones enforcement. Women often lack access to em- are governed by a separate law, the EPZ Work- ployment opportunities in the formal sector, ers’ Association and Industrial Relations Act 2004 and require additional protections as employ- (amended October 2010), which forbids union ees, such as maternity leave and child care. membership but permits “workers’ associations” MM Social and Cultural Factors: Cultural norms that have collective bargaining rights. The estab- dictate women’s home responsibilities and can lishment and effectiveness of these workers’ asso- impact their economic participation, and social ciations varies widely, as they depend on the ini- factors including education, health, child care, tiative of the workers in an individual factory to 12 Fostering Women’s Economic Empowerment through Special Economic Zones establish an association and on the effectiveness Tables 6 and 7 summarize a few illustrative con- of the association members and executive leader- ventions and laws currently in place that affect ship.15 Some organizations, like Solidarity Cen- women. ter in Bangladesh, have created capacity-building programs for workers’ associations to help sup- Most laws related to women’s rights at work are port their effectiveness. However, survey results acceptable or even good on paper, but enforce- found that only 1 percent of women participated ment is largely ineffective. Weak enforcement in workers’ associations, suggesting that the asso- limits most laws’ positive impact on women, and ciations may not deliver benefits to female factory sometimes creates opportunities for unintended workers regardless of their effectiveness. negative consequences. The child-care law, for ex- ample, is mostly ineffective in Bangladesh, both The National Minimum Wage Board increased inside and outside of the EPZs. The language of the minimum wage of the RMG sector in 2010, the law is vague—it calls for a “room” but does following lengthy debate between the govern- not specify the requirement of a provider—and ment and labor organizations. The new mini- thus employers invest in the minimum required mum wage, which came into effect on Novem- by the law and women do not benefit from work- ber 1, 2010, is Tk 3,000 (US$43) per month, up place child care. Research found that 92 percent from the previous minimum wage of Tk 1,662 of workers surveyed were not using their facto- (US$25). Unrest followed the agreement, because ries’ child-care center or lacked access to a child- the minimum wage fell far short of labor unions’ care center. A focus group of BEPZA investors demands of Tk 5,000. The 2010 pay structure has seven grades, with the highest pay fixed at 15 US Department of State, Bureau of Democracy, Hu- Tk 9,300 (US$140).16 The EPZ law amendment man Rights, and Labor, Country Report on Human also included a minimum wage adjustment to Rights, March 2008. rates above the new national minimum wage (see 16 Asian Correspondent, 07/30/2010, “Bangladesh gar- Table 6, p 10 for details). The amendment also ment workers reject new wage rates”; BBC, 07/30/10, stipulated additional benefits including Convey- “Bangladesh garment workers protest in Dhaka over wages”; and others. ance Allowance, House Rent, Medical Allow- 17 BEPZA Website, “Labor Issues”, visited 12/06/10: ance, Maternity Benefit, Festival Bonus, Provi- http://www.epzbangladesh.org.bd/bepza.php?id=lab_ dent Fund, and Overtime.17 issues TABLE 6  ■  Ratification of ILO Core Conventions and CEDAW ILO Convention Ratified or Not 29 Forced Labor Ratified 87 Freedom of Association and Protection of the Right to Organize Ratified 98 Right to Organize and Collective Bargaining Ratified 100 Equal Remuneration Ratified 105 Abolition of Forced Labor Ratified 111 Discrimination (Employment and Occupation) Ratified 138 Minimum Age Convention Not Ratified 182 Elimination of the Worst Forms of Child Labor Ratified UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) With Reservations Obstacles to Women’s Economic Participation in Bangladesh 13 TABLE 7  ■  Illustrative Laws and Regulations Affecting Women’s Economic Opportunities National Law Law Description or Zone Maternity leave Leave of 16 weeks with pay. Both Section 46, Labor Provisions: Law 2006 • Worker shall not receive benefit unless she has served for minimum period of six months prior to notice of probability of delivery. • No maternity benefit shall be payable to any woman if at the time of her confinement she has two or more surviving children. Child care 1 “children’s room” required for every 40 female workers with children below 6 years of age. Both Section 94, Labor Provisions: The room is required to be of such an area that it can provide 600 square centimeters Law 2006 (previously 20 sq. ft.) of space for each child and the minimum height of such room shall not be less than 360 centimeters. Pregnancy testing No law prohibits testing workers for pregnancy prior to hire. Both Minimum wage $39/month Apprentice $48/month Helper $55/month Junior Operator Zone $61/month Operator $61/month Senior Operator $109/month High-Skilled Operator $35/month Apprentice $42/month Helper $49/month Junior Operator National $53/month Operator $58/month Senior Operator $102/month Master confirmed that child-care centers were underuti- banization and migration by young populations lized.18 Overall, women require additional legal seeking employment in industrial sectors. protection and better enforcement of existing positive provisions. Bangladesh is classified as a “Least-Developed Country” (LDC) and ranks 146th out of 182 coun- A strong government policy in support of child tries in UNDP’s Human Development Report care should take into account the potential nega- 2009. Since achieving independence from Pakistan tive impacts of such a policy, and so should sup- in 1971, Bangladesh remains one of the few democ- portive innovative and collaborative solutions to racies in the Muslim world. Bangladesh is rated as minimize the cost of compliance with legislation. “Partly Free” by Freedom House and has a Politi- Some governments, for example, offer grants to cal Rights Score of 3/7 (1=most free) and a Civil companies for the cost to set up a child-care center; Liberties Score of 4/7. Weak governance and cor- other governments provide subsidies to child-care ruption, widespread poverty, and high population centers near industrialized areas. A third option is density, as well as periodic flooding and drought, the establishment of a voucher system, whereby remain major challenges to economic development. employers pay for vouchers that can be redeemed at registered child-care centers. Economically, the export sector is dominated by the ready-made garment (RMG) industry, which rep- resents 75 percent of Bangladeshi exports.20 Other Social and Cultural Factors 18 BEPZA Counselor survey data, March–April 2010; Bangladesh has roughly 156 million residents19 BEPZA Investor Focus Group, May 31, 2010. and is one of the world’s poorest and most densely 19 CIA World Factbook, 2010. populated countries. It is a traditionally agricul- 20 Background Note: Bangladesh, US State Department, tural society, with an increasing trend toward ur- http://www.state.gov/r/pa/ei/bgn/3452.htm 14 Fostering Women’s Economic Empowerment through Special Economic Zones exports include jute, leather, shrimp, pharmaceuti- participation in leadership positions in the pub- cals, and ceramics. Agriculture, including produc- lic and private sectors remains low. Women re- tion of rice, maize, and vegetables, remains the most main unequal under the law, especially regarding important domestic industry. divorce, inheritance, and property rights. Rape, dowry-related assaults, acid throwing, and other As Table 8 (below) illustrates, Bangladesh’s per- violence are not uncommon, particularly in rural formance in gender equality remains mixed. areas, and are widely underreported and under- While some progress has been achieved in eco- prosecuted.21 nomic empowerment and education, women are still at a significant disadvantage in health, nu- trition, employment, and political participation. 21 Freedom House, Freedom in the World: Bangladesh, Disparities in adult literacy persist, and women’s 2006 TABLE 8  ■  Socioeconomic Indicators: Bangladesh (various sources, 2005–2009) Total Adult Ratio, Female % Female / Indicator Population to Male Total % of population living on less than US$2 per day 81% Education (combined primary, secondary, tertiary) 1.01 Literacy (for ages 15+) 53.5% 0.82 48% Labor force participation 0.68 57.2% Unemployment 4.3% Women-held seats in parliament and women in government at ministerial level 6%, 8% Female legislators, senior officials, managers 10% Female professional and technical workers 22% Earned income (USD annually) $1,282 0.51 Women with unmet family planning needs 17% Births attended by skilled health professional 18% Maternal mortality rate (per 100,000 live births) 34041 Major Religions Muslim 88.5% Other Hindu 10.5%, Christian 0.3%, Buddhist 0.6% Gender Measures Gender-related development index (GDI)a 0.536, Rank 140/177 countries Gender empowerment measure (GEM) b 0.264, Rank 108/109 countries Source: Human Development Report, Bangladesh, HDI 2007, EPDC 2007, UN Country Profile, 2005, HDI, UNDP 2005, DHS, WHO, World Health Statistics, 2010, HDR. a “The gender-related development index (GDI), introduced in Human Development Report 1995, measures achievements in the same dimensions using the same   indicators as the HDI but captures inequalities in achievement between women and men. It is simply the HDI adjusted downward for gender inequality. The greater the gender disparity in basic human development, the lower is a country’s GDI relative to its HDI.” (source: http://hdrstats.undp.org/en/countries/country_fact_sheets/ cty_fs_BGD.html) Bangladesh’s GDI value, 0.536, should be compared to its HDI value of 0.543. Its GDI value is 98.7% of its HDI value. Out of the 155 countries with both HDI and GDI values, 100 countries have a better ratio than Bangladesh’s. b “The gender empowerment measure (GEM) reveals whether women take an active part in economic and political life. It tracks the share of seats in parliament held by   women; of female legislators, senior officials and managers; and of female professional and technical workers—and the gender disparity in earned income, reflect- ing economic independence. Differing from the GDI, the GEM exposes inequality in opportunities in selected areas.” (source: http://hdrstats.undp.org/en/countries/ country_fact_sheets/cty_fs_BGD.html) Obstacles to Women’s Economic Participation in Bangladesh 15 Major challenges for women entering or advanc- to obscene and sexually suggestive language in the ing within the formal workforce include access to workplace; others reported instances of physical education, vocational skills, health, finance and sexual abuse.28 None of the above studies were fo- housing, family responsibilities, transportation to cused on the EPZs, and as conditions within EPZs and from work, and rights awareness. are viewed as better than those outside, they may experience the above issues less frequently. Employment Surveys found that women face additional unique Women’s employment in Bangladesh has grown challenges regarding transport to and from the zone significantly in recent decades. From 1995 to 2003 and security concerns, a lack of access to in-factory women’s employment increased almost one and a child care, and limited representation in worker half times.22 A notable area of growth for this study, committees and supervisory roles, as well as inap- and for the Bangladeshi economy, has been in the propriate maternity leave and benefits.29 Female RMG industry, which has created hundreds of workers often suffer disproportionately because of thousands of jobs for women since the early 1990s. their greater likelihood of being hired at a lower level than male workers, their lack of representative Factory managers interviewed in Bangladesh female voices in unions and workers’ associations, commented on their preference for female work- their home responsibilities, their lower education ers because of their reduced likelihood of unrest, levels, and their vulnerability to sexual harassment. their smaller hands, which enable them to do more delicate and intricate work, and their higher pa- tience levels.23 One study identified a perception that women performed better than men, and that 22 World Bank (2008), Whispers to Voices: Gender and Social their “sincerity” and “law-abiding nature” made Transformation in Bangladesh, South Asia Sustainable them more desirable employees.24 Women’s entry Development Department, Bangladesh Development Series Paper No. 22, World Bank, Washington D.C. into the labor force in the RMG sector was fur- 23 BSR Interviews with factory management in Dhaka ther facilitated by the historical participation of and Chittagong, February and June 2010; Bangladeshi women in sewing and dressmaking at 24 Afsar, Rita (2000), “Gender Dimensions of labor mi- home. Thus, technically “unskilled” young women gration in Dhaka city’s formal manufacturing sector”, were seen as requiring only limited training. in Women’s Employment in the Textile Manufacturing Sectors of Bangladesh and Morocco, ed. By Carol Miller and Jessica Vivian, Geneva: The Institute, 2002. However, jobs in the RMG sector have not come 25 Asian Development Bank, “Country Briefing Paper: without challenges. A low minimum wage that does Women in Bangladesh”, August 2001. not meet living-wage standards,25 excessive over- 26 Ahmed, Erfan Fauzia (2001) The Rise of the Bangladesh time, incorrect payment of wages, and limited free- Garment Industry: Globalization, Women Workers, and dom of association are issues pervasive throughout Voice, Volume 16, Number 2, Summer 2004, pp. 34–45, the sector in Bangladesh. External studies have sim- Indiana University Press. 27 Paul-Majumder, Pratima (2008), Social, Economic and ilarly concluded that even where unions or workers’ Health insecurity affecting women’s participation in the la- associations are allowed, women often lack upward bor market and their labor productivity, Dhaka. mobility opportunities, remain unable or unwill- 28 Alam, Khorshed et al, “Fashion Victims: How UK re- ing to unionize, and have no representative voice tailers are keeping workers in poverty”, War on Want, in garment factories.26 A 2008 study of working December 2008. 29 FIDH, “Bangladesh: Labor Rights in the Supply Chain women found that 70 percent of “operators” and 78 and Corporate Responsibility”, June 2008; Chen, Mar- percent of “helpers” reported receiving verbal abuse tha, Joann Vanek, Francie Lund, and James Heintz with from supervisors and having a resulting fear of su- Renana Jhabvala and Christine Bonner (2005) p. 67–68 pervisors.27 Another study found that 60 percent of “Factory Workers in Bangladesh”, Progress of the World’s women workers interviewed reported being subject Women, UNICEF, New York. 16 Fostering Women’s Economic Empowerment through Special Economic Zones Wage discrimination, though against the law, still employment opportunities in both the formal occurs in the RMG sector, both inside zones and and informal sectors. This was seen as an effec- outside. A 2007 study of the RMG industry found tive means of reducing rural poverty and driving that women earn 15.9 percent less than men on economic growth. These shifting objectives corre- average. Job discrimination or “occupational sex sponded with the growth of the RMG sector and segregation” is also common.30 In addition, women the creation of millions of unskilled job opportuni- tend to be restricted to lower-paying industries ties for women. and lack access to higher-paying jobs (See the following section, Professional Advancement Women represent the majority of employees in Opportunities). The study concluded that educa- RMG, which is the country’s major export sector. tion reform and educational programs targeting Over time, it is expected that the FSP will increase women could reduce occupational segregation and the education and skills of the RMG sector’s work- improve women’s economic status.31 force. In the future, an educated female workforce could contribute to increased foreign investment in the RMG sector, and to potential investments Education in other higher-value sectors, such as electronics While Bangladesh has seen significant advances in parts assembly and IT services. gender equity in education due to targeted govern- ment policies to increase girls’ enrollment in pri- A study underway at Yale University, seeking to mary and secondary schools,32 a significant gender demonstrate the positive impact of women’s em- gap persists in terms of adult education and eco- ployment in the garment sector on their village nomic and political participation. communities, has found a correlation between women with jobs in the garment sector and The Female Stipend Program (FSP) was created 5-year-old girls attending school: If the number in 1982 in Bangladesh to help increase the enroll- of women with jobs in the garment sector doubles, ment and retention of girls in secondary schools, the likelihood of girls in schools increases by al- and to delay marriage and motherhood and sup- most 7 percent.34 port poverty reduction. This strategy was a re- sponse to the growing population and its impact on poverty. FSP provided a monetary stipend to 30 World Bank (2008), Whispers to Voices: Gender and Social rural girls entering secondary school, including a Transformation in Bangladesh, South Asia Sustainable Development Department, Bangladesh Development monthly sum ranging from Tk 25 in Class 6 to Series Paper No. 22, World Bank, Washington D.C. Tk 60 in Class 10 (US$0.37–$0.88 in July 2006), 31 Kapsos, Steven, “The gender wage gap in Bangladesh”, as well as additional support for books and exam ILO Asia-Pacific Working Paper Series, May 2008. fees. Continued receipt of the stipend is condi- 32 Universal Primary Education (UPE) program. The tional upon an individual’s attendance rate (min- government launched several initiatives to increase imum 75 percent), as well as a minimum exam enrollment: building new schools, establishing com- munity and satellite schools, improving teacher train- score of 45 percent. Participants are also required ing, and providing free tuition for female students. Tar- to abstain from marriage until after obtaining geting poor, underserved communities was central to their school certificate or turning 18. From the programs like the Food for Education Program, which introduction of the nationwide program in 1994 provided wheat or rice to poor families as an incentive through 2003, girls’ enrollment in secondary for children to attend school regularly. 33 Raynor, Janet, “The Girls’ Stipend Program in Bangla- school almost doubled, from roughly 240,000 to desh”, Journal of Education for International Develop- almost 450,000.33 ment 2.2, July 2006. 34 Bajaj, Vikas, “Garment Factories, Changing Women’s In the 1990s, the focus of FSP expanded beyond Roles in Poor Countries”, New York Times Economix, reducing fertility to include increasing women’s July 2010. Obstacles to Women’s Economic Participation in Bangladesh 17 Recent studies have noted that newer hires in Sanitation, access to water, and health taboos and zones tend to have higher education levels.35 Fe- prejudices impact women’s menstrual hygiene and male workers in EPZs also tend to have higher reproductive health.42 Reproductive-tract infec- education and skill levels than other female work- tions are common, and many women miss work ers. One study found that female workers in EPZs during their menstrual cycle because of pain and had an average of 8 years of education, compared embarrassment. In individual and focus-group with 4 years for women working outside the conversations with approximately 25 factory op- zones.36 However, many older women currently erations and human resources managers, the study working in Bangladesh’s zones likely left school found that the majority were familiar with the is- prior to the government reforms and have lower sue of menstrual hygiene because of its impacts on levels of formal education. Also, the perception their rates of absenteeism.43 among managers is that female workers are less educated; efforts must be made to change these Family planning products are for the most part perceptions. available to women (note the very low figure of 17 percent of women with unmet FP needs in Table 8), especially in urban areas, and are widely used by Health female garment workers. However, interviews also Female factory workers in Bangladesh are vulner- revealed common misuse of those products out of able to myriad of health issues, including malnu- trition, communicable diseases, pregnancy compli- cations, incorrect use of family planning materials, 35 Center for Policy Dialogue (CPD) and World Bank and reproductive infections and diseases. Key areas (2007), Bangladesh’s Apparel Sector in Post-MFA Period: of need included pre- and postnatal care, HIV/ A benchmarking Study on the Ongoing Restructuring Pro- AIDS, nutrition, family planning, early detection cess, Dhaka. 36 Center for Policy Dialogue (CPD) and World Bank of breast and cervical cancer, and occupational (2007), Bangladesh’s Apparel Sector in Post-MFA Period: safety and general health.37 In general, workers A benchmarking Study on the Ongoing Restructuring Pro- in EPZs are thought to be healthier than those cess, Dhaka; Kabeer, Naila and Simeen Mahmud, Rags, working outside, because of higher wages and bet- Riches, and Women Workers: Export-oriented Garment ter working conditions on average.38 Still, all the Manufacturing in Bangladesh, Report prepared for the challenges below likely apply to EPZ workers, but Commonwealth Secretariat, London, 2004; Kabeer, are less frequent. Naila, and Simeen Mahmud (2004), Globalization, Gender and Poverty: Bangladeshi Women Workers in Ex- port and Local Markets, Journal of International Devel- Priority issues include malnutrition and menstru- opment, Volume 16. al hygiene. “Women are more malnourished than 37 BSR, Women’s General and Reproductive Health in Global men at every stage of life but this phenomenon Supply Chains, October 2006. 38 Paul-Majumder, Pratima, “Health Status of the Gar- is more visible in the case of adolescent girls and pregnant mothers. A quarter of maternal deaths ment Workers in Bangladesh”, Bangladesh Institute of Development Studies, 2003. are associated with anemia and hemorrhage.”39 In 39 Asian Development Bank, “Country Briefing Paper: Bangladesh, 47 percent of preschool-age children Women in Bangladesh”, August 2001. and pregnant mothers are anemic, and 25 per- 40 World Bank, “Nutrition at a Glance: Bangladesh”, 2010. cent of pregnant women are deficient in vitamin 41 Paul-Majumder, Pratima, “Health Status of the Gar- A.40 A 2003 study by the Bangladesh Institute of ment Workers in Bangladesh”, Bangladesh Institute of Development Studies found that over 30 percent Development Studies, 2003. 42 Asian Development Bank, “Country Briefing Paper: of women had developed chronic illnesses such Women in Bangladesh”, August 2001. as gastrointestinal infections, urinary infections, 43 BSR Interviews with factory managers in Dhaka and and anemia since starting work in the garment Chittagong, February 2010 and June 2010; BEPZA sector.41 Investor Workshop, May 31, 2010. 18 Fostering Women’s Economic Empowerment through Special Economic Zones lack of awareness. For example, one NGO said that families through remittances, and reduced the many women take 2–3 types of oral and injected dowry in many areas of the country. These changes contraceptives at once.44 Such misuse can enhance have also corresponded with a significant increase rather than reduce risk of unplanned pregnancies in the availability and uptake of contraception— or other health risks to women. one study found that 99 percent of married women had access to contraceptives52—although inter- Though illegal,45 domestic violence and other views found remaining challenges in the proper violent acts against women are common, and are usage of contraceptives.53 closely related to women’s isolation and restricted movement, particularly in rural areas. The 2007 Women’s self-esteem and self-perception have also Bangladesh Demographic and Health Surveys changed because of new sets of social relationships by the National Institute for Population Research in all- or majority-female households and work and Training found that 49 percent of women who environments—as Sabrina Islam, president of the had ever been married had experienced violence Women Entrepreneurs’ Association, said, “Look in their current or most recent marriage. One in at how they hold themselves, with confidence.”54 four married women surveyed said they had ex- The acquisition of independent income has shifted perienced physical and/or sexual violence often or sometimes in the past year.46 44 BSR Interview, Awaj Foundation, June 2010. 45 Cruelty to Women (Deterrent Punishment) Ordinance Reported rape incidents also increased rapidly in (1983); Repression against Women and Children (Spe- the mid- to late 1990s, and reported sexual ex- cial Enactment) Act XVII (1995); Women and Chil- ploitation remained high as of 2004.47 Incidents dren Repression Act (2000, 2003). of physical sexual abuse in the workplace are per- 46 National Institute for Population Research and Train- haps less common, especially in export processing ing (2007), Bangladesh Demographic and Health Sur- zones, but findings did reveal higher levels of con- veys, Ministry of Health and Family Welfare, Dhaka 47 Asian Development Bank, “Country Briefing Paper: cern regarding security among female workers than Women in Bangladesh”, August 2001; Perman, Sarah et among males.48 Earning wages has also been dem- al, “Behind the Brand Names: Working conditions and onstrated to increase women’s status in the home, labour rights in export processing zones”, International and to help protect them from domestic violence.49 Confederation of Free Trade Unions, December 2004. 48 BEPZA Counselor survey data, March-April 2010; 49 Salway, Sarah, Sonia Jesmin, and Shahana Rahman (2005), Women’s Employment in Urban Bangladesh: A Religious-cultural Context Challenge to Gender Identity? Proshika Manobik Un- A 2008 World Bank study, Whispers to Voices: Gen- nayan Kendra, the London School of Hygiene and der and Social Transformation in Bangladesh, argues Tropical Medicine and the University of Bath that rural women migrating to urban areas for jobs 50 World Bank (2008), Whispers to Voices: Gender and Social in the RMG sector have participated in a social Transformation in Bangladesh, South Asia Sustainable revolution, softening the conservative culture by Development Department, Bangladesh Development Series Paper No. 22, World Bank, Washington D.C.; increasing women’s formal employment and free- BSR Interviews: Engender Health, War on Want, dom of movement. Individuals interviewed for WEA, February 2010 this study agreed.50 51 World Bank (2008), Whispers to Voices: Gender and Social Transformation in Bangladesh, South Asia Sustainable Female garment-factory workers are seen to “rep- Development Department, Bangladesh Development resent the new generation of women workers and Series Paper No. 22, World Bank, Washington D.C. 52 National Institute of Population Research and Train- perhaps the future trend setters” from a sociocul- ing, Dhaka, Bangladesh Demographic and Health Survey, tural perspective.51 Employment in the garment 2007. industry has increased the age of marriage, im- 53 BSR Interview, Awaj Foundation, June 2010. proved the financial condition of young women’s 54 BSR Interview, Sabrina Islam, WEA, February 2010. Obstacles to Women’s Economic Participation in Bangladesh 19 women’s status in their family and in society at houses (74 percent), pucca59 houses (24 percent), large, giving them personal purchasing power, ac- or thatched houses (2 percent). In the same study, cess to bank accounts, and the ability to support female workers expressed concerns about security their family financially.55 One study found that in and near their homes, and researchers found remittances from female garment workers had that access to pure drinking water and sanitary toi- contributed to an increase from 22 percent to 43 lets was limited.60 A 2000 study found bathrooms percent of families living in brick houses.56 “shared between 16–22 boarders, on average, and cooking gas burners or heaters shared between Other studies have found that women remain fi- 10–15 families.”61 nancially dependent, especially married women, even when they are earning income from jobs in A 2004 study identified that 100 percent of fe- the garment industry. Single women are more male workers in EPZs were living in rented ac- likely to feel empowered by their earnings, while commodations,62 likely in conditions similar to married women traditionally have tended to give those described above. However, the study also their earnings to the male heads of household, who identified that women working in EPZs were in turn give the women a monthly allowance,57 more likely than women working in other in- though there is some perception that this situation dustries or locations to live in a house made of is changing. Research for the study also revealed a strong need for improving female workers’ financial literacy and access to microsavings accounts—both 55 Pakistan Institute of Labour Education & Research and would enhance their financial independence and South Asia Alliance for Poverty Eradication, “Organiz- improve their ability to contribute to supporting ing for Labour Rights: Women Workers in Textile/ their families via safer remittance processes.58 Readymade Garments Sector in Pakistan and Bangla- desh, 2009. 56 Pakistan Institute of Labour Education & Research and South Asia Alliance for Poverty Eradication, “Or- Housing ganizing for Labour Rights: Women Workers in Tex- The substandard living conditions of most gar- tile/Readymade Garments Sector in Pakistan and Ban- ment workers create time, efficiency, health, and gladesh, 2009. safety concerns. For example, the lack of running 57 Ahmed, Erfan Fauzia (2001) The Rise of the Bangladesh water and electricity in slums means that women Garment Industry: Globalization, Women Workers, and often have to line up to use a shared gas burner Voice, Volume 16, Number 2, Summer 2004, pp. 34–45, Indiana University Press. to boil water. Similarly, they must stand in line to 58 BSR Interviews with BEPZA Counselors, Chittagong use shared bathrooms and showers. Finally, trans- EPZ, February 2010; BSR Interview, MAMATA, Feb- portation is often a challenge, if slums are located ruary 2010. far away from workplaces or in isolated areas. This 59 Pucca houses are made of brick and cement with iron study gathered reports of women needing to wake reinforcement. 60 Center for Policy Dialogue (CPD) and World Bank at 5am to be at work by 8am, for example, because (2007), Bangladesh’s Apparel Sector in Post-MFA Period: of these combined issues. A benchmarking Study on the Ongoing Restructuring Pro- cess, Dhaka. Land availability, for industry and residential zon- 61 Afsar, Rita (2000), “Gender Dimensions of labor mi- ing, is an enormous and growing challenge in Dha- gration in Dhaka city’s formal manufacturing sector”, ka and in the industrial areas of Chittagong. This in Women’s Employment in the Textile Manufacturing limits the availability of safe housing for young Sectors of Bangladesh and Morocco, ed. By Carol Miller and Jessica Vivian, Geneva: The Institute, 2002. women migrating to urban areas for work. 62 Kabeer, Naila and Simeen Mahmud (2004), Globaliza- tion, Gender and Poverty: Bangladeshi Women Workers in A 2007 study found that workers in the RMG sec- Export and Local Markets, Journal of International De- tor (both in EPZs and outside) lived in tin-roof velopment, Volume 16. 20 Fostering Women’s Economic Empowerment through Special Economic Zones durable materials with access to an independent Professional Advancement water supply.63 Opportunities These findings were confirmed in interviews with EPZs in Bangladesh provide significant and often BEPZA counselors and NGOs, including Awaj unique opportunities for women to enter the for- Foundation and NUK (the Centre for Women’s mal workforce. A remaining challenge is provid- Initiatives).64 Local NGOs also commented on the ing opportunities for female workers to advance complicated logistics of renting. BEPZA coun- beyond entry-level positions, which are often un- selors commented that most landlords require a skilled or low-skilled jobs. man to sign a lease, and most women working in the garment sector cannot afford to live on their This study found that though women tend to con- own.65 As a result, many women share cramped ac- stitute the majority of unskilled or low-skilled commodations with two or more women or a mar- workers in zones, the majority of supervisors re- ried couple. main male. For example, BEPZA Counselor re- ports on 13 randomly selected factories revealed Regarding cost of living, a 2000 report found that that on average 22 percent of supervisors are fe- women garment-factory workers spent 52 percent male, compared to 62 percent of workers.68 of their income on housing, compared to only 34 percent for their male colleagues. This implies one There are a variety of explanations for women’s of two things—that women tend to invest more failure to advance in the workplace in Bangladesh’s in housing than men or that there is a gender- EPZs. One explanation provided by both BEPZA based wage gap. The likely reality is a combination counselors and factory managers was that women of both factors, suggesting that women could in- didn’t want to be supervisors—the hours were too crease their savings and remittances if safe, low- long, the pay was salaried, which meant no over- er-cost housing options were made available to time, and they didn’t want the responsibility.69 them.66 BEPZA counselors emphasized the value of the government or the zone making gender- Other findings pointed to women’s lack of skills, segregated housing options available, particularly experience, and length of service. Lack of educa- for young female migrants.67 Taken together, the evidence demonstrates that 63 Kabeer, Naila and Simeen Mahmud (2004), Globaliza- tion, Gender and Poverty: Bangladeshi Women Workers in economic empowerment through jobs in Ban- Export and Local Markets, Journal of International De- gladesh EPZs offers significant opportunities to velopment, Volume 16. women to improve their education and skill levels, 64 BSR Interviews with Nazma Akhter, Awaj Founda- employability, health, living conditions, and sta- tion, June 1, 2010, and Mashuda Shefali, NUK, May tus within their family through increased income. 30, 2010. 65 BSR Interviews with BEPZA Counselors, Chittagong What’s more, increasing women’s access to em- EPZ, February 2010. ployment, upward mobility, and investment op- 66 Afsar, Rita (2000), “Gender Dimensions of labor mi- portunities will help Bangladesh continue to grow gration in Dhaka city’s formal manufacturing sector”, the export industry, which has been fueled to date in Women’s Employment in the Textile Manufacturing by young women workers. To achieve their contin- Sectors of Bangladesh and Morocco, ed. By Carol Miller ued economic empowerment, the challenges and and Jessica Vivian, Geneva: The Institute, 2002. 67 BSR Interview, BEPZA Counselors, Chittagong EPZ, opportunities above must be addressed by a variety February 16, 2010. of stakeholders, and be supported by legal regula- 68 BSR/BEPZA Counselor research, April-May 2010. tions and enforcement. 69 BEPZA Counselor Interviews, Chittagong and Dhaka EPZs, February 2010; Factory visits, Dhaka and Chit- tagong EPZ, February 2010. Obstacles to Women’s Economic Participation in Bangladesh 21 tion was the reason most frequently cited by fac- female supervisors—they cannot lead workers”. tory managers for women not being promoted Others said that women lacked critical manage- to line supervisor; the managers often explained ment skills—for example, that women are afraid of that they would prefer to promote female work- decision making and they find it difficult to com- ers if their education levels were higher.70 Overall, municate with others.73 women were found to be less likely to advance for the following reasons: The study also found instances of high numbers of female supervisors and managers who valued MM Skills gap: Lack of technical, life, communica- female over male supervisors. For example, of the tion, and management skills; 13 factories surveyed, the two with the highest MM Education gap: Higher rates of illiteracy and percentages of female supervisors had 71 and 45 innumeracy; percent, respectively.74 At a workshop with factory MM Limited training to enable low-wage women management in May 2010, representatives from workers to improve their skills and move up; one factory commented that they had over 90 per- MM Perception of women as short-term workers, cent female supervisors and that they felt women likely to leave when they marry; and made excellent managers.75 MM Inability to transfer length of service to new factories when women leave for marriage, ma- EPZ workers on average tend to have higher ed- ternity, or by choice for a new job. ucation levels and skills than workers outside of zones.76 This stronger knowledge base should be Perception and prejudice play a particularly large nurtured to help women advance professionally role in women’s lack of advancement. In-factory in- and boost EPZ competitiveness. In addition, a terviews and focus groups with BEPZA counselors developing trend is for women to marry male fac- confirmed a widely held perception among factory tory workers and remain in the city past marriage, managers of women, particularly young unmarried and sometimes after they have had children. It is girls, as temporary or transient workers who are ex- particularly common for both male and female pected to leave the factory after 2–3 years to get workers to want to keep jobs in EPZs, as these are married. This perception reduces factory manage- viewed as more desirable, because of higher pay ment’s willingness to invest in female workers for and better working conditions. Thus, the percep- long-term employment and up-skilling. tion of women as short-term employees may be increasingly irrelevant within the EPZ context. In fact, BEPZA Counselor reports and surveys Hopefully, this shift will be accompanied by an found that within EPZs, there was actually a neg- ligible difference in service length between men and women (8.6 years on average for men versus 8 years for women), and that some factory managers 70 BSR/BEPZA Counselor research, April–May 2010. noted less turnover and more loyalty in their female 71 BSR/BEPZA Counselor research, April–May 2010. 72 Kabeer, Naila and Simeen Mahmud, Rags, Riches, and worker cohort.71 Another external study also found Women Workers: Export-oriented Garment Manufactur- high proportions—between 40 and 50 percent—of ing in Bangladesh, Report prepared for the Common- married female workers within the RMG sector.72 wealth Secretariat, London, 2004. 73 BSR/BEPZA Counselor research, April–May 2010; Another widely held perception, among both BEPZA Investor Focus Group, May 31, 2010. 74 BSR/BEPZA Counselor research, April–May 2010. workers and management, was that women pos- 75 BEPZA Investor Focus Group, May 31, 2010. sess fewer leadership qualities than men. One 76 Center for Policy Dialogue (CPD) and World Bank manager said, “Many male workers prefer male (2007), Bangladesh’s Apparel Sector in Post-MFA Period: supervisors over female,” which corresponded to a A benchmarking Study on the Ongoing Restructuring Pro- similar comment by a male worker: “I do not like cess, Dhaka. 22 Fostering Women’s Economic Empowerment through Special Economic Zones increased investment in women’s management po- MM Location and distance of zones outside of cit- tential and promotion. ies (making it difficult to balance work with women’s responsibilities at home) MM Confinement to small businesses in female- Opportunities and Challenges for dominated sectors Female Entrepreneurs Administrative requirements for starting a formal The culture of female entrepreneurship is very business can be intimidating for women, particu- strong in Bangladesh, largely founded and sup- larly those with no formal business training. In ad- ported by the Grameen Foundation’s (and other dition, women creating businesses are as likely as organizations’) introduction of microfinance and, men to fall victim to corruption, such as demands in particular, small loans programs targeting wom- for bribery in exchange for a business license, and en. What’s more, the RMG industry has increased are often less adept at navigating their response to the population of women with expendable income, such situations.78 Organizations like the Women’s supporting the development of women’s entrepre- Chamber of Commerce are trying to minimize neurial opportunities to sell goods such as clothes, this disparity for female entrepreneurs through a jewelry, and food to a new generation of consumers. training program on principles of women’s rights and negotiation skills for female entrepreneurs. Within this climate, small female-owned business- es flourish with strong leadership from women’s Once they are able to start a business, many fe- business associations and female entrepreneurship male entrepreneurs remain confined to small busi- groups like the Bangladesh Federation of Women nesses in female-dominated sectors. According to Entrepreneurs (BFWE), the Bangladesh Women’s BFWE and WISE, many women they work with Chamber of Commerce and Industry (BWCCI), often resist expanding their business from small Women in Small Enterprise (WISE), and the to medium, because of either risk aversion, lack of Women Entrepreneurs’ Association (WEA). confidence, or lack of financial resources.79 Out- reach programs run by WEA, WISE, and BW- However, in Bangladesh, as in other countries vis- CCI are working to improve women’s confidence ited for this study, women struggle to create busi- and to enhance the existing entrepreneurial culture nesses in zones, or businesses that link to the ex- among Bangladeshi women. port market more generally.77 In addition to these general challenges, some Female entrepreneurs in Bangladesh face chal- zone-specific challenges exist. It may prove dif- lenges to investing in zones with regard to the fol- ficult to replicate the successful model of small, lowing areas: female-owned businesses, primarily in the service and retail sectors, within zones. Currently only MM Access to capital export-oriented companies are allowed in zones, MM Access to land beyond a few limited service organizations (banks, MM Skills and business-management knowledge post offices) that are located near BEPZA offices MM Identification of markets, marketing products, and export-specific knowledge MM Intimidating, time consuming, and bureau- 77 Interviews with female entrepreneurs, Bangladesh Feb- cratic administrative requirements for starting ruary 2010, Kenya May 2010. 78 BSR Interview with President, Women’s Chamber of a formal business Commerce and Industry, February 2010. MM Corruption or bribery in the system for obtain- 79 BSR Interview with President, Women in Small En- ing a business license terprise (WISE) and Bangladesh Federation of Wom- MM Access to a business network en Entrepreneurs (BFWE), 2010. Obstacles to Women’s Economic Participation in Bangladesh 23 to serve administrative officials. This status quo this deficit will require providing women with limits economic participation within zones to fac- training programs on international markets tory ownership, and there are currently very few and exporting, access to capital, and possibly female factory owners. ongoing technical assistance. 2. Supply-chain linkages to female-owned business- A final challenge for women is the location of es: According to WEA, BWCCI, and WISE, zones, which are often far from the city center. For many women are running small businesses example, Dhaka EPZ is located 1–2 hours outside that could offer supply-chain services to en- of the city center. Given their traditional role at terprises in zones, such as button or zipper home, women find it difficult to locate a business manufacturers. However, they generally lack so far away from their residence. To create realistic access to these companies or the know-how opportunities for female entrepreneurs in zones, to market their products to them.80 BEPZA any program or policy should first target local could play a role in creating opportunities for women who live within close proximity to zones. such businesses to market their services to BEPZA investors. 3. Female-owned small businesses within zones: Investment Opportunities for Female Small service and retail businesses in zones Entrepreneurs in Zones currently cater to the needs of investors and Although there is currently limited female entre- BEPZA. A collection of female-owned small preneurship in zones, the potential exists for wom- businesses seeded in could broaden this scope en business owners to participate economically in to also serve workers through cafes, small shops, zones in three ways: and services like laundries or privately run day- care centers. A partnership with WISE or 1. Women-owned factories: Currently, female in- WEA could identify female entrepreneurs and vestors are very uncommon in Bangladesh’s link to MIDAS, which provides small business zones. According to WEA, BWCCI, and loans to women. WISE, many women lack the formal busi- ness training in communications, marketing, and budgeting that might help them create BSR Interviews, Female entrepreneur organizations, 80 business opportunities in zones. Addressing February 2010. Chapter 5 Good-Practice Enablers of Women’s Economic Empowerment in Bangladesh T hrough fieldwork and other research in compliance improvement mitigates risks for Dhaka and Chittagong zones, this study investors and BEPZA; (3) Worker counseling identified policies, initiatives, and business aspect addresses concerns before they become practices that support economic opportunities for grievances; (4) Programs assist in reducing women and increase competitiveness for enterpris- worker unrest in the zones es and zones. The following programs represent good practices we identified in Bangladesh, which The BEPZA Counselors Program was introduced have the potential to be replicated in other zones as a zone-level monitoring system to assess com- or enterprises in Bangladesh, as well as in zones pliance with labor standards. The program cur- and enterprises in other countries. rently has 56 counselors: 38 men and 18 women. . Each Counselor is part of a 2-person team that is assigned to a zone and 5–10 individual factories, Zone Compliance Monitoring: which they are responsible for monitoring. Moni- BEPZA Counselors Program toring results are shared with BEPZA and kept confidential from factories and buyers. The Coun- MM Type: Program that covers labor and social selors also work as informal dispute arbitrators and compliance, including gender, environmental, help resolve grievances. and occupational health and safety issues, as well as providing informal dispute mediation Over the course of the 5-year program, BEPZA MM Who: BEPZA, IFC counselors contributed to significant improvements MM Where: In 300+ firms in all 8 EPZs in Ban- in the number of factories with proper grievance gladesh procedures, from 35 percent in 2005 to 90 percent MM Time frame: 2006-present (as of June 2011) in 2010. In addition, the number of factories with MM Cost: Approximately US$375,000 per year to effective disciplinary measures in place also rose cover 56 counselors’ salaries and benefits, as from 35 percent to 91 percent. As expected, the well as other program costs, such as materials increase in proper grievance procedures and disci- and impact measurement plinary measures helped to decrease filed grievances MM Benefit to women: Residual but significant, as over time: Filed grievances fell from approximately 64 percent of workers in the zones are women 2,500 in 2005 to approximately 400 in 2009.This MM Benefit to business: (1) Low-cost and neutral increase in grievance resolution shows a strong cor- monitoring mechanism supports level playing relation with increased disciplinary measures and field for BEPZA investors; (2) Continuous overall safety and security under the program. 26 Fostering Women’s Economic Empowerment through Special Economic Zones 1000 pliance among zone investors. This continuous 900 improvement helps BEPZA and BEPZA inves- 800 Number of grievances 700 tors mitigate risk and attract and retain foreign 600 investment. 500 400 300 200 Women’s Health Program for 100 Business Returns: Extending Service 0 Delivery Program and ROI Study 2006 2007 2008 2009 Delay in payment Procedure not followed properly Resignation Letter not easily received Physical abuse MM Type: Workers’ rights protection, health, and Show cause notice given without any reason well-being program MM Who: Extending Service Delivery Project (USAID), Investor, Health Solutions Partici- patory Development Appraisal (HSPDA) Several factors contribute to the effectiveness of MM Where: Chittagong garment factory this program for female workers. First, the ma- MM Time frame: 2005–2006 jority of workers in the zones are female. Second, MM Cost: US$47 per week for direct and indirect the majority of supervisors in the zones are male. costs for clinic staff and medicines and full pay And third, there are sufficient numbers of female to workers during clinic visits and scheduled counselors to allow most female workers access peer education sessions; ROI research study to them. As a result of the above factors, female costs were additional. workers take advantage of the program to report MM Benefit to women: Direct benefits through in- workplace grievances, sexual harassment, and oth- creasing female workers’ health awareness and er concerns to female counselors. This model, first their access to information and services both tested by YoungOne factory in Chittagong EPZ, within the factory clinic and through outside empowers the Counselor to help workers address referrals. both personal and professional concerns and avoid MM Benefit to business: Program delivered a $3:$1 unnecessary conflict. return on investment in the form of reduced absenteeism, reduced turnover, and increased Building on the success of the monitoring pro- productivity. gram, IFC and BEPZA have begun a new aware- ness-raising campaign for social management The participating Chittagong factory had 450 within zones. The campaign is being tested in employees, 84 percent of whom were women. A Dhaka EPZ and will later be rolled out in Ban- baseline assessment conducted by local partner gladesh’s other zones. The campaign will use the HSPDA in November 2004 found the availability existing monitoring forms, a needs assessment of of “health facilities at the factory” to be the high- current levels of awareness of social compliance est priority of workers at 66 percent, over a sub- issues, and a campaign to raise awareness among sidized cafeteria, transportation assistance, or new both workers and factory management of rights machinery (each at 33 percent). Fifty percent of and responsibilities through posters, booklets, managers agreed that there was a need for health and serial dramas to address the remaining gaps facilities. in awareness. HSPDA supported program implementation, Interviews with BEPZA counselors, IFC spe- which included funding a factory-based clinic op- cialists, and BEPZA zone staff confirmed that erating 3 days per week at a cost of approximately the program had contributed to improved com- US$47 per week. The health team comprised a doc- Good-Practice Enablers of Women’s Economic Empowerment in Bangladesh 27 tor (Ob/Gyn), a nurse-counselor, and an attendant. Comprehensive Partnership Over the 18 months of the program ( Jan. 2005– Program, Chittagong EPZ June 2006), the clinic recorded 1,145 consultations, which provided 2,263 treatments. MM Type: Workers’ skills, health, and financial in- clusion program The program also included a peer education pro- MM Who: CARE Bangladesh, Timberland, Young gram that sought to raise awareness among work- One, Mamata ers about the services available in the clinic and the MM Where: YoungOne facilities, Chittagong EPZ importance of utilizing the services. For visiting MM Benefit to women: Improved health awareness the clinic and receiving basic health services and and communication skills, and increased finan- information, including reproductive health and cial decision-making power. family planning products, workers paid a co-pay of MM Benefit to business: Improved worker-man- Tk 5 (or seven US cents) per visit—the equivalent agement communication, reduced turnover of the cost of a cup of tea or two bananas at a local and absenteeism. food vendor. The Comprehensive Partnership Program began In examining the business value of the program in 2002 with the objective of improving the skills, over 18 months, the study found the following: health, and financial stability of the more than 22,000 female workers in YoungOne factory in MM Audit Data: Chittagong EPZ. The program used a combina- XX Average of 18 percent fewer days lost to ab- tion of peer education, community-based educa- senteeism (from 867 to 712); tion, counseling, advocacy, and community mobi- XX A 46 percent decrease in staff turnover lization to achieve its objectives. (from 40 to 21) MM Worker Interviews: Whether or not they used Program contents included: the onsite clinic services, clinic availability made workers MM Awareness-raising about health and hygiene XX Less likely to be absent from work and rights and responsibilities through peer- XX More likely to stay in their current job to-peer education, community outreach, and XX More likely to have positive attitudes to- an information booth; ward factory management MM A street fair exploring “women’s vulnerability in the home and at the workplace”; The study quantified the monetary value of the MM An early childhood development training pro- return on investment in reduced absenteeism and gram for mothers and nursery staff, including turnover as US$3:$1 over the 18-month program schooling, growth monitoring, and parenting period. methods; MM Health education about hygiene, HIV/AIDS, Factors contributing to the program’s success in- immunization, and food and nutrition as well cluded (1) support from senior management and as referral to health services, including Mamata line supervisors for the creation of the onsite clinic and YoungOne clinics; and worker use of the clinic; (2) the needs-based MM Finance programs, including a savings account design of the program, which directly responded program and loans of Tk 3,000 to 25,000 with to workers’ expressed health needs; (3) the combi- monthly repayment. The savings account pro- nation of services with information sharing using a peer education model; and (4) the high compe- tency level of the clinic nurse.81 81 ESD, “Effects of a workplace health program on absen- teeism, turnover, and worker attitudes”, 2007 28 Fostering Women’s Economic Empowerment through Special Economic Zones gram has a 2 percent monthly service charge bilities for workers through culturally sensitive and yields 6 percent annual interest. Money is and locally produced video dramas that can be collected in the factory at booths set up on a shown during the factory lunch hour or other monthly basis. The financial program is cur- break periods. The soap opera format did not rently self-sustaining. intentionally target female workers, yet the high percentage of women in the workplace The program delivered multiple benefits for work- were reflected in the films. The videos were ers and YoungOne. For example, female workers made in 2008 and released in 2009, and cost improved their communication and decision-mak- approximately Tk 100,000 to produce, with ing skills, contributing to improved worker-man- additional resource investment by H&M staff agement communication. Incidence of sickness de- in Bangladesh. H&M shares the videos with creased and turnover in production units decreased. any company who demonstrates a clear com- In addition, the micro-savings and loan program mitment to improving its workers’ rights and was highly successful at increasing female work- responsibilities awareness.83 ers’ control over their income, and the program will MM Gap’s Literacy Program with CARE Bangladesh continue, funded by workers’ investments.82 provides basic literacy training to female gar- ment workers and other women in their commu- nities through community-based night schools. Various Brand and Industry Literacy centers are open to participation by any Association Programs Supporting women in the serviced communities.84 Women’s Health, Rights, and MM A partnership between Bangladesh Garment Literacy Manufacturers Employers’ Association (BG- MEA) and Smiling Suns Clinics arranges ro- MM Type: Programs, various tating doctor visits to garment factories with MM Who: International buyers, local NGO part- factory and BGMEA financial contributions. ners (various; see below) MM The Wal-Mart Literacy and Empowerment Pro- MM Where: Bangladesh, various locations gram with CARE Bangladesh provides work- MM Benefit to women: Improved awareness and place skills and literacy training. Education skills, and improved health sessions also address maternal and child health, MM Benefit to business: Improved garment-indus- nutrition, hygiene, and sanitation. Workplace try workforce, specific factory workforce, and skills training provide design, sewing, equip- more stable communities. ment handling, and other on-the-job skills.85 Because of the importance of Bangladesh as a These multinational companies and others feel that sourcing destination and the prevalence of women the business benefits from such programs are sig- within the factory workforce, many international nificant to both themselves and their supplier fac- companies have invested heavily in social pro- grams to benefit female factory workers in the country. Programs address women’s health chal- 82 BSR Interview, MAMATA and YoungOne, February lenges, rights awareness, and basic education. 2010. 83 BSR Interview, H&M, February 2010. Some examples of brand programs targeting wom- 84 BSR Interview, Gap, June 2010. 85 Retail in Asia (Wal-Mart press release), http:// en are highlighted below: www.retailinasia.com/article/sectors/department- stores/2010/06/walmart-and-care-launch-womens- MM H&M Rights and Responsibilities Soap Operas empowerment-initiative-bang, 06/19/2010 (visited introduce the concept of rights and responsi- 06/28/10). Good-Practice Enablers of Women’s Economic Empowerment in Bangladesh 29 tories. According to one company interviewed, the business benefits of investing in women go beyond one factory or one international company; support- ing female factory workers is directly tied to the sustainability of the garment industry as a whole.86 BSR Interview, June 2010. 86 Chapter 6 Recommendations: Opportunities for Innovation in Bangladesh W omen represent the majority of work- troduced below for consideration as opportunities ers in export processing zones in Ban- to address challenges in Bangladesh EPZs through gladesh, and as such, any investment investment and innovation. in this group will have far-reaching impacts, from both business and social perspectives. This study This study makes five recommendations for im- recommends giving women additional access to provement in Bangladesh: health information and services, improved nutri- tion, improved representation, training and profes- 1. Establish bank accounts for workers with di- sional advancement opportunities, and child care. rect wage deposit, and deliver financial literacy training to them. The recommended investments will deliver busi- 2. Create a zone-coordinated, government-subsi- ness benefits to BEPZA investors in the form of re- dized, and investor-funded vocational training duced absenteeism and turnover, improved worker program to provide work- and life-skills train- morale and worker-management communication, ing to workers and supervisors. improved productivity, and enhanced reputation. 3. Create women’s welfare subcommittees within The investments will also contribute to business workers’ associations to support women’s par- benefits for BEPZA through increased investor ticipation in associations, and to ensure the in- satisfaction, enhanced “one-stop” service provision, clusion of women’s perspectives and concerns and ideally, increased investment and employment in conversations with management. opportunities in BEPZA zones. 4. Support women’s health education and services and improve workers’ nutrition for the sake of In addition, there are opportunities for BEPZA health and business benefits. and BEPZA investors to demonstrate innovative 5. Create a zone-sponsored child-care center to in- leadership and forward thinking. For example, crease workers’ uptake of and benefit from fac- stakeholders can acknowledge that the current tory-level child-care services. system to provide child care under the law is not working, and suggest an alternative in the form of These recommendations are explored in detail in this high-quality, independently run BEPZA child- section through action plans, cost estimates, time care centers. This concept and three others are in- lines, and monitoring and evaluation indicators. 32 Fostering Women’s Economic Empowerment through Special Economic Zones Recommendation 1 Currently the majority of factories in Bangladesh EPZs continue to use a cash payroll. Throughout Investors should establish bank accounts with di- Bangladesh, an estimated 13 percent of the total rect wage deposit for workers and deliver financial population have bank accounts or are connected literacy training to them to the formal financial system. Based on research done by BEPZA counselors for this study, EPZ workers on average are more likely to have bank Summary This investment will support female work- accounts than the general population: 50 percent ers’ development of independent and formal of male and female workers surveyed reported mechanisms for financial management and savings. Programs can be supported through having bank accounts.87 Despite this fact, most partnerships with local and/or international workers have cash savings in their home and are financial services providers. Any program must using costly services via the post office or Western make sure that banking machines are readily available to workers, within the zone or near the Union to send remittances to their families. communities where workers live, to allow them to withdraw their deposits easily and safely. Worker interviews in Dhaka EPZ and Chittagong Business Business benefits will include reduced cash- EPZ revealed the following table. Impact payroll costs and logistical demands. Investors can communicate about the program with clients as a means of demonstrating streamlined on-time Worker responses demonstrate that (on average wage payment for workers. Additional savings between DEPZ and CEPZ) (a) lower percent- may be found in reduced security costs on pay- ages of women have bank accounts; (b) women day, if relevant. Finally, add-ons such as matched are more open-minded than men about establish- savings programs, potentially provided by the bank, or other unique benefits can support worker ing bank accounts; (c) when they have bank ac- satisfaction and retention. counts, women are less likely to link to their sal- Additionally, this study found a growing trend ary via direct deposit; and (4) women have limited among international buyers of requiring direct awareness of the benefits of direct deposit of their wage deposit by suppliers in countries other than Bangladesh. Direct wage deposit and ef- salary. More gender disparity was found in Dhaka, forts to increase worker savings may become a and greater need for direct deposit was found in competitive differentiator for buyers, or may help Chittagong. Both male and female respondents in investors meet buyers’ compliance expectations Chittagong were found to be more receptive to in the future. the value of having bank accounts than respon- Stakeholder IFC: Technical assistance to factories establishing Roles banking partnerships dents in Dhaka. Enterprises: Establish partnership with financial services provider; shift payment to direct deposit These findings indicate a strong need for improv- system; provide financial literacy training to ing female workers’ financial literacy and access to workers microsavings accounts—both would enhance their International Buyers: Encourage supplier financial independence and improve their ability participation in initiative, share best practices to contribute to supporting their families via safer from other countries, and provide limited financial cost-sharing where required remittance processes.88 They also indicate a strong need for building factories’ capacity to develop di- BEPZA: Facilitate construction of cash access points in zones if needed rect wage deposit systems. Financial Services Provider: Provide ac- counts; provide financial literacy information; facilitate direct deposit as relevant; build branches 87 Bangladesh Institute of Development Studies, “Bank or cash machine kiosks as relevant account status of workers in factories of Dhaka and Chittagong EPZs”, March 2011. 88 BSR Interviews with BEPZA Counselors, Chittagong EPZ, February 2010; BSR Interview, MAMATA, Feb- ruary 2010. Recommendations: Opportunities for Innovation in Bangladesh 33 Chittagong EPZ Dhaka EPZ Data Point Male Female Male Female Have Bank Account 49% 52% 55% 44% Don’t Have Account because Unnecessary 10% 9.52% 46% 31% Don’t Have Account because Not Enough Money 49% 60% 42% 32% Have Direct Deposit (among workers with bank account) <1% 0% 46% 7% Don’t Use Direct Deposit because Company Pays Cash or Cannot Support Direct 58% 74% 62% 36% Deposit Don’t Use Direct Deposit: No Response 18% 17% 0% 29% A 2005 study of employment in urban Bangla- Financial literacy training should be provided to desh found that working women were more likely workers, with separate training sessions for female than nonworking women to manage money and workers to discuss financial dependence issues, by accumulate personal assets, make household pur- either the enterprise or the bank. Costs for these chasing decisions, and move freely outside of the training programs should be minimal, and they home,89 suggesting long-term benefits to workers can be integrated into new-worker training, health and to their families and communities. training or other outreach. For example, a bank representative could provide information during the lunch hour to minimize time costs for worker Time and Cost Summary participation. Creating bank accounts and a direct wage deposit system should require minimal investment. The 89 Salway, Sarah, Sonia Jesmin, and Shahana Rahman majority of the costs would be in the form of the (2005), Women’s Employment in Urban Bangladesh: A time spent by an appointed human resources staff Challenge to Gender Identity? Proshika Manobik Un- person to meet with bank representatives and set nayan Kendra, the London School of Hygiene and up a partnership for services provision. Tropical Medicine and the University of Bath Action Item, Stakeholder Time Horizon Estimated Cost Worker Bank Accounts, • 1–3 months to set up • Negligible Enterprises • 3-month pilot program • Time: HR dept.—bank partnership preparation, • Ongoing paperwork and logistics Financial Literacy Training, • 1–3 months to set up • $1,000–$4,000 per enterprise or shared with Bank and/or Enterprises • 3-month pilot program bank • Should coincide with launch of bank accounts • Ongoing 34 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 9  ■  Action Plan Bank Accounts and Financial Literacy, Enterprises Action Plan Step Stakeholder Roles and Resources 1.  Investors investigate partnerships • IFC: Provide introductions to relevant financial services providers with local and international financial • BEPZA: Promote transfer to direct wage deposits into worker bank accounts by BEPZA investors services providers (1 month) • Investor: As described 2.  Investor(s) and bank(s) determine • IFC: Provide recommendation of NGO service provider if needed mechanism for providing financial • Investor: Assess options for financial literacy delivery literacy to workers (same month) • Buyer: Share tools and methodologies that have been successful in other countries/contexts. • Financial Services Provider: Present options and materials for financial literacy delivery 3.  Investor(s) and bank(s) determine ac- • IFC: Provide guidance for cost-sharing structure if new access points are needed cess points for workers and construct • BEPZA: Help financial services provider to locate cash access points in zones if needed new access points as needed (1–3 • Investor: Support worker survey or interviews to assess where they might access their bank months) account (e.g., in the community, on the way home, near workplace) • Financial Services Provider: Utilize networks to locate existing access points; advocate construction of new access points in or near zones to meet growing need 4.  Investors launch program with • BEPZA: Provide recognition to participating investors selected bank, roll out program to full • Investor: Support program launch, including providing financial services provider with access factory population (1–2 months) to workers and factory, and facilitating direct deposit as relevant. • Buyer: Share some financial literacy costs as appropriate. • Financial Services Provider: As described 5.  Track worker uptake of accounts, and • Investor: Read reports on worker uptake and user behavior and share results with IFC, BEPZA behavior/use of accounts (e.g., are • Financial Services Provider: Track and share indicators on worker uptake and user behavior. they saving?) (Ongoing) 6.  At 3 months from full factory popula- • IFC/BEPZA: Support use of counselors to evaluate enterprise programs tion access, BEPZA counselors • Service provider: Provide training to BEPZA counselors on what to evaluate and how, and evaluate uptake and satisfaction with create evaluation tools including metrics for health impacts and business impacts program (1 month) Gantt Chart Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Ongoing Communication & Commitment 1. Investors © Financial Services partner Planning 2. Determine training delivery method 3. Determine cash access point for workers Program Implementation 4. Program launch 5 . Program roll out to all workers Monitoring & Evaluation 6. Banks track usage 7. BEPZA Counselors measure satisfaction Recommendations: Opportunities for Innovation in Bangladesh 35 TABLE 10  ■  Monitoring and Evaluation Indicators Data Impacts Type Description Sample Data Source Frequency Increased national Output % of workers with bank accounts Factory Bank/factory records Month savings rate, Output % of female workers with bank accounts Factory Bank/factory records Month Increased school enrollment, Output Savings rate, average Zone Bank records Month Reduced infant Output # of financial literacy training sessions held Zone Service provider Quarter mortality, Job creation, Output % of workers received training Factory Service provider Quarter Increased GDP, Output % of female workers received training Factory Service provider Quarter Increased national competitiveness Outcome Average savings rate Zone Bank records Month Outcome % of workers with positive attitude toward banking Factory Factory survey Biannual Outcome % of women who feel control over financial decisions Factory Factory survey Biannual Outcome Cost reduction of cash payroll Factory Factory records Quarter Outcome Instances of reported harassment/robbery Factory Factory records Quarter TABLE 11  ■  Examples, Financial Services for Workers: Global Study Example: African One factory in this study had established a partnership with a Kenyan bank, KCB, to make checking and savings Apparels, Kenya accounts available to its workers through reduced deposit minimums. The factory established this system to address the high cost of security associated with the cash payroll—including a person to dispense cash, a guard Est. 2008, ongoing for cash transit, and police hired for payroll day—and to reduce the security risks encountered by workers when Cost: US$500/month carrying cash home. In all, the factory estimated US$300 per month in hard savings on insurance costs, as well as significant cost savings in reduced administrative burden and reduced risk. It now pays workers through direct deposit into their KCB accounts.a The program had been active for 3 years as of January 2010. To ensure that workers would take advantage of the program, the factory conducted outreach to workers to explain the benefits of banking. However, the program has still faced some challenges. Some workers complain that the bank charges for withdrawing cash are too high for them. The factory has worked in partnership with the bank to reduce charges for workers. The system also encounters some cultural barriers in delivering full benefits to female workers. In interviews, two married female factory workers told different stories: one withdrew her full paycheck and carried it in cash to the slums to turn over to her husband, while the other said the account enabled her to keep some finances separate from her husband, like those that she used for her children’s school fees and food for the family. The second woman also said that she was trying to use the account to save a small amount of money so she could someday buy a plot of land in the country. The group that appears to benefit the most from this system, however, is unmar- ried women, who are able to build savings before marriage and reduce dependence on their future husbands.b Example: Primark/Bank U.K. retailer Primark has partnered with the Bank of India and Indian NGO Gaia to provide bank accounts and of India/Gaia Program, cash access points to factory workers. Launched in 3 Primark supplier facilities in 2010, the program works India with factory management to provide a direct wage deposit option to workers, and allows them to sign up for a bank account within the factory. Est. 2010, ongoing Bank accounts are opened using fingerprint identification, to address a common challenge among migrant fac- tory workers: lack of necessary identification paperwork. The program has also set up cash access point kiosks in slums where workers live, at which workers and other community members can establish accounts and withdraw and deposit cash. Kiosk operators also serve as financial literacy providers, sharing information about savings and other financial management practices. In the first three months of the program, Bank of India has measured increased levels of savings in factory workers’ bank accounts, suggesting that workers are building trust in the system and saving some of their monthly income. a   Interviews, Factory management, Nairobi, May 18, 2010. b   Interviews, Female factory workers, Nairobi, May 18, 2010. 36 Fostering Women’s Economic Empowerment through Special Economic Zones Recommendation 2 BEPZA should coordinate and facilitate the cre- ation of a vocational education program supported BEPZA should create a zone-coordinated, gov- by appropriate government ministries, such as the ernment-subsidized, and investor-funded voca- Directorate of Technical Education within the tional training program to provide work- and life- Ministry of Education or the Manpower Employ- skills training to workers and supervisors ment and Training department. Lack of access to education and skills development The BEPZA vocational training program should remain a key barrier to women’s upward mobility. encompass 3–5 key modules to serve major indus- BEPZA Counselor surveys found that on average tries in the EPZs and different levels of workers 22 percent of supervisors are female, compared to within those industries—for example, entry-level 62 percent of workers.90 In addition to the chal- garment skills training, garment up-skilling train- lenge of low numbers of female supervisors, both ing, and garment supervisor training. The training male and female supervisors are commonly not will be for existing supervisors and also workers trained on basic managerial skills, including com- who have the potential to become supervisors. The munication and stress management. Given the high program should take advantage of existing resourc- ratio of male supervisors to female workers, gender- sensitivity training would contribute to improved management of female workers by male supervisors. BSR/BEPZA Counselor research, April-May 2010. 90 Summary The program should include a module on supervisor skills and gender-sensitivity training to improve working conditions and productivity, and reduce worker grievances. An additional module(s) should target professional development for women, both at the entry level and for promising female workers who could become supervisors. Investors should advocate the benefits of the program with BEPZA and should contribute to program contents to meet inves- tors’ real needs. Once the program has launched, investors should use the services provided and make required, and ideally subsidized, financial contributions. Business Studies demonstrate that investing in workers’ professional development and implementing transparent upward mobility Impact policies helps reduce turnover and increases loyalty.a In manufacturing, other business benefits include reduced turnover and improved quality and productivity. Additional business impacts from supervisor communication and sensitivity training may include improved worker morale and loyalty. BSR heard this assertion in multiple comments from workers and supervisors in various countries: for example, “I prefer to have a deduction from my salary than hear verbal insults from my line supervisor” (Female Worker, Egypt). BEPZA counselors noted that it is very common for female line workers to follow good supervisors when they move to a new factory, and that this practice is more common among women than men.b Stakeholder IFC: Provide technical assistance in training approach; facilitate dialogue between BEPZA and ministry and link to existing IFC Roles training programs and methodologies Enterprises: Provide fiscal and management support for program International Buyers: Encourage supplier participation in initiative, share materials used successfully in other countries, and provide limited financial cost-sharing where appropriate BEPZA: BEPZA counselors conduct a needs assessment for factories (external guidance for needs assessment may be required); determine fiscal incentives for factory programs; facilitate cost-sharing across enterprises; provide platform and facility for zone-wide trainings Ministry of Education, Bureau of Manpower, Employment, and Training, and Directorate of Technical Education: Subsidize portion of the training and potentially provide trainers for the program a  McKinsey, “Making a market in talent”, May 2006; All Business, “Measurable payoff: how employee engagement can boost performance and profits”, July 2004; Harvard Business School, Harvard Management Update, “Rethinking Company Loyalty”, September 2005. b2   BEPZA Counselor Interviews, Chittagong EPZ, February 2010. Recommendations: Opportunities for Innovation in Bangladesh 37 es, such as those in the Bureau of Manpower, Em- Time and Cost Summary ployment and Training in the Ministry of Expatri- This program can be funded by BEPZA, the ates’ Welfare and Overseas Employment. Ministry of Education and/or the Bureau of Manpower, Employment, and Training. Interna- The Bureau of Manpower, Employment, and tional buyers and/or donors could also contrib- Training (BMET), the Department of Youth De- ute to start-up costs for the training program. velopment, and the Bangladesh Garment Manu- Investors should partially subsidize the cost of facturers and Exporters Association (BGMEA) participation for their workers and supervisors run a training program for garment workers, cur- in the various program modules, though buyers rently being offered in 27 of BMET’s Technical could also sponsor this component, particularly Training Centers throughout the country. Pro- for female worker up-skilling, which may inter- grams and curricula include a Sweater Knitting est buyers. and Linking Training Lab, a Woven Machine Operating Course, and others. BMET also offers In Bangladesh, a vocational training program additional training courses titled “Dress Making/ would likely cost $4,000–$10,000 for a group of Garments,” “Pattern Maker,” “Cutting,” and “Mid- ~35 participants, depending on the length of the level Garments Supervisor for RMG Sector.” program (e.g., 4 hours, 8 hours, 16 hours, etc.). Factories could pay per participating worker, or In addition, the training program should be de- could buy a training package for a group of quali- veloped in line with the National Skills Develop- fied workers. BEPZA could consider subsidizing ment Policy,91 agreed in December 2009, and any this cost and developing partnerships to enable certificates of skills qualifications should meet the economies of scale and reduced cost per factory Bangladesh National Technical and Vocational through the zone-level vocational training pro- Qualifications Framework detailed in the policy. gram. Cost variations depend on the ability of a local provider to conduct the training versus a Finally, BEPZA should work with the minis- foreign provider. tries to identify potential growth industries in the EPZs—for example, electronics manufacturing— and create training programs to improve workers’ skills in these areas. Separate classes for women and men may encour- age more women to participate. If successful, such 91 Bangladesh Skills Development Policy, December a program would improve the overall skill of the 2009. Drafted by the Bangladesh Government, Min- workforce, and would reduce the risk of turnover istry of Education, in collaboration with the European commonly associated with worker training. Union and the International Labor Organization. Action Item, Stakeholder Time Horizon Estimated Cost Individual Training Programs, Immediate and ongoing following establishment of • $100–$500 per person Enterprises program (see below) • $4,000–$10,000 for factory-based training for all relevant staff Zone Program and Training • 6 months–2 years to set up, depending on Formal cost assessment required Facility, BEPZA government involvement/approvals • Ongoing training provision 38 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 12  ■  Action Plan Action Plan Step Stakeholder Roles and Resources BEPZA Vocational Training Program 1.  BEPZA and investors agree on and commit to public-private • IFC: Provide workshops to BEPZA investors and zone management to partnership for a zone-focused training program. Investors build support for participation communicate need for zone-level training program to BEPZA • BEPZA: Promote value of vocational training program to investors (1 month) • Investor: Participate in workshops, express support and commitment to have employees participate in vocational training program and to pay portion of costs • Buyer: Participate in program design discussion to demonstrate support 2.  Investors identify skills needs of workers and supervisors, • BEPZA/IFC: Allow BEPZA counselors to conduct interviews and focus and develop mechanism for annual feedback on skills needs groups in participating factories, with investor, human resources manag- (such as annual focus groups conducted by BEPZA coun- ers, workers, and supervisors selors with workers and supervisors), creating a system for • Investor: Encourage employees to participate honestly in interviews and annual skills needs assessments (1–2 months) focus groups 3.  BEPZA coordinates with relevant ministries to ensure that • IFC: Facilitate relationship between BEPZA and ministry, identify relevant training program takes advantage of existing programs and existing IFC content content • BEPZA: Conduct meetings with relevant ministries and departments • Buyer: Share tools and methodologies that have been successfully used in other countries • Ministry of Education, Directorate of Technical Education, Bureau of Manpower, Employment, and Training (BMET): Subsidize portion of the training and potentially provide trainers for the program 4.  BEPZA, investors, government, and IFC identify implement- • Potential service providers ing organization (2 months) • Swiss Contact, Bangladesh • Sheva 5.  BEPZA, IFC work with implementing organization to design • IFC: Facilitate use of existing IFC training programs and methodologies, program-implementation plan based on needs assessments such as the SEDF materials (1 month) • BEPZA: Support training organization planning and program design by providing input and necessary approvals; determine fiscal incentives for investor participation • Government: If partnering with BEPZA on the program, provide similar support to program design and approvals • Service provider: Design module curriculum for supervisors based on needs assessment Pilot EPZ training program in Dhaka EPZ (1 month) 6.  • Investor: Pay portion of cost and support the participation of line supervisors in training • BEPZA: Organize training; pay for portion of training; provide facility for training • Government: Share costs with BEPZA and investors as relevant • Service provider: Conduct training 7.  Develop monitoring and evaluation and feedback mecha- • IFC/BEPZA: Support use of counselors to conduct relevant interviews nisms (1 month) and report to factory management, BEPZA, and workers’ association members • Service provider: Develop monitoring and evaluation and feedback mechanisms (including metrics for health impacts and business im- pacts) and train BEPZA counselors on how to conduct M&E 8.  Employ mechanism to enhance and expand BEPZA voca- • BEPZA/IFC/Government: Explore expanding program in Chittagong tional training program (ongoing) EPZ and/or replicating program in Dhaka EPZ based on success • Service provider: Continue to deliver training Recommendations: Opportunities for Innovation in Bangladesh 39 Gantt Chart Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Ongoing Communication & Commitment 1. Investors © BEPZA Needs Assessment 2. Investors, BEPZA Counselors assess needs Planning 3. Collaborate with Ministries 4. Identify Training org Materials Development 5. Selected partner develops tools Training Program 6. Pilot launch in Chittagong Monitoring & Evaluation 7. Develop mechanism 8. Ongoing feedback TABLE 13  ■  Monitoring and Evaluation Indicators Impacts Type Description Data Sample Data Source Frequency Decreased unemployment Output % of workers trained Zone Training center records Quarter rate, Output % of female workers trained Zone Training center records Quarter Decreased poverty rate, Increased literacy, Output % of management trained Zone Training center records Quarter Increased investment in Output % of female management trained Zone Training center records Quarter higher-skilled industries, Increased GDP, Output # of training hours per factory Zone Training center records Quarter Increased total exports, Output Total # of workers trained Zone Training center records Quarter Increased national com- petitiveness Outcome Knowledge of training topic Zone Survey Biannual Outcome Job competency Zone Survey Biannual Outcome Internal promotion rate Factory Factory records Year Outcome Worker turnover Factory Factory records Year Outcome Supervisor turnover Factory Factory records Year Outcome Worker satisfaction with factory Factory Survey Biannual Outcome Supervisor satisfaction with factory Factory Survey Biannual Outcome Grievance rate Factory Factory records Year Outcome Productivity Factory Factory records Year 40 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 14  ■  Examples, Vocational Training: Global Study Example: Supervisor The China Training Institute (CTI), started in 2004, helps companies and their Chinese suppliers improve CSR per- Training, China Train- formance and overall competitiveness through a wide range of training programs, roundtables, salons, and long-term ing Institute (CTI) training programs. CTI offers supervisor training relevant to the needs of supervisors, such as communication and supervisory skills and stress management. Est. 2004, ongoing • The communication training workshop provides skills and advice for starting constructive dialogue between Cost: US$8,500 per facil- supervisors and employees. It helps to enhance the communication efficiency of the team. The workshop provides ity inclusive of travel cost supervisors with hands-on experience in team communication and coaching skills. • The supervisory skills-training course teaches trainees how to build leadership competencies such as com- munication, authorization, and coaching and motivating subordinates. It also focuses on the common issues that supervisors face and solutions to address these issues. • The stress-management training workshop focuses managing stress and identifying ways to mitigate stress. The course will start by identifying the symptoms and signals of stress and then provide good practices for better stress management. A factor contributing to the success of the program is that it demonstrates to management that as workers’ manage- ment skills are improved, their professional satisfaction also often improves. Another success factor is the participatory methodology used in trainings, which helps trainees internalize messages and support peer-to-peer learning after the training. The main challenges faced by the program are related to the timing of training around the tight schedule of manage- ment teams inside factories, especially during the peak season. To address this challenge, CTI trainers work to gain commitment at the senior management level, and enlist senior management to communicate the value proposition to participating middle managers. CTI further encourages participating factories to incentivize worker participation with promotion opportunities on completion of training programs. Costa Rica: National The Costa Rican government’s National Learning Institute (INA) offers free specialized technical training to workers in Learning Institute zones. To identify the skills training desired by investors, the Costa Rica Investment Promotion Agency (CINDE) facili- tates a working group of companies in free zones, consisting of general managers and human resource managers who Est. 1965, ongoing meet quarterly with the purpose of providing companies a channel to communicate their concerns and needs, including desired skills in the labor force, which are communicated to INA to inform its curriculum. Additionally, some investors work directly in partnership with INA to design training programs. As a result, companies have skilled workers and are able to have policies to “promote from within.” A worker spoken with at one company had been there 8 years, working her way up from operator, to supervisor, to supervisor of the most complex production line. Additionally, the Costa Rican government is committed to ensuring that university and technical institutes include cur- riculum that matches the needs of the desired workforce of companies in free zones. Egypt: Ministry of The Egyptian government’s Ministry of Trade and Industry offers a subsidized skills-training program for factories. Trade and Industry Factories apply and pay 10–20 percent of the training costs, while the ministry pays 80–90 percent and provides an Training Program onsite trainer.a Training programs are run by three nongovernmental organizations: Ongoing 1.  ITC / IMC (website: www.itc-egypt.org) 2.  TVET program 3.  Productivity and Vocational Training program Workers who participate in the program develop improved skills and managerial abilities and increase their opportuni- ties for promotion. In turn, this enables factories to promote from within, extending workers’ tenure rather than hiring from the outside. (Continues on next page) Recommendations: Opportunities for Innovation in Bangladesh 41 TABLE 14  ■  Examples, Vocational Training: Global Study (Continued) Philippines: The Department of Labor and Employment (DOLE) has worked with companies, including some in special economic Improving Women’ zones, to provide livelihood programs for female workers. The program seeks to help women to learn additional skills Life Skills such as marketing and managing a small business, in order to support their ability to earn an extra income for the household. The program addresses the ongoing challenge among businesses of retaining skilled workers during Ongoing production downtimes. The Technical Education and Skills Development Authority (TESDA) provides company-level livelihood training to workers according to their interests, and DOLE provides the necessary capital to help women start their small business. Women employees who are interested in learning some livelihood skills can choose a topic of interest, such as choco- late making, fish processing, or packaging, with training provided jointly by DOLE and TESDA. In one of the companies visited, after obtaining such skills women employees are selling their homemade chocolates to colleagues and even to workers in other companies in the zone. Employees at another company visited gather during breaks to make and package detergents that are sold to their own company. These products are then given out to high-performing workers as a token of appreciation from the company. These programs are good examples of public-private partnership whereby the government provides the necessary capital and skills training to workers and their companies also provide some resources to support the programs, which allow them to retain workers even during economic downtimes and reduces the negative impact on workers’ income. a   Interview: Ashraf Dowidar, Internal Trade Development Authority, May 4, 2010. Recommendation 3 BEPZA investors as well as Solidarity Center, an international NGO that helps build workers’ ca- Investors should allow and encourage the creation pacity for collective bargaining and has assisted of women’s welfare committees within workers’ as- BEPZA in building the workers’ association pro- sociations gram, confirmed that female participation at the leadership level is very low.92 Currently, female workers in Bangladesh EPZs are underrepresented on workers’ association (WA) executive committees. This study found less than 1 92 Interview, Solidarity Center, June 10, 2010; BEPZA percent participation by women in WA leadership. Investor Focus Group, May 31, 2010. Summary Women’s welfare subcommittees will help support women’s participation in workers’ associations, and will ensure the inclusion of women’s perspectives and concerns in conversations with management. As female workers’ concerns are often different from men’s, or the reasons behind their concerns are different, this may support the creation of innovative solutions with benefits for both workers and management. Business Business benefits may include productivity and quality improvements, lower turnover, an improved reputation and enhanced Impact risk management. A BSR study conducted for the Levi Strauss Foundation, for example, saw a 3 percent drop in turnover, and factory management attested to productivity gains.a Stakeholder IFC: Ongoing support and innovation of BEPZA Counselors Program to promote women’s participation in workers’ associa- Roles tions through women’s welfare subcommittees, with potential participation of female counselors in their factories’ committees. Enterprises: Allow and encourage the creation of women’s welfare subcommittees within workers’ associations. Allow participation of committee members in zone capacity-building program. International Buyers: Encourage suppliers to create women’s committees and provide limited financial cost-sharing where appropriate. BEPZA: Support BEPZA counselors’ rights-awareness pilot program in Dhaka EPZ. Support capacity-building program for women’s welfare committee members from zone enterprises. a   BSR, “Moving the Needle: Protecting the Rights of Garment Factory Workers”, October 2009. 42 Fostering Women’s Economic Empowerment through Special Economic Zones Current rights-focused activities are mainly Time and Cost Summary driven by buyers at the enterprise level, with the Creating a women’s welfare committee should not exception of the BEPZA Counselors program, come at great cost to zone investors. In fact, the ma- which focuses on rights and responsibilities jority of the costs would likely be borne by workers awareness of workers and managers at the zone and the existing workers’ association, in the form of level. To encourage women’s engagement and workers’ time spent on participating in the commit- development of leadership roles within workers’ tee and small costs covered by WA member dues. associations, this study recommends the creation of women’s welfare subcommittees with women- The cost to the enterprise will include the time only membership, and with representation on the of its human resources officers spent on support- executive committees. This will allow women to ing the creation of the committee as needed, and address not only their rights, but also other con- the cost of a capacity-building course for the cerns, such as child care, harassment, or upward committee members. The approximate costs for mobility. It may also create opportunities for fac- such a capacity-building program would likely be tory management to learn about issues they were $2,000–$5,000 per enterprise. BEPZA’s facilita- not aware of previously. tion of capacity building for ~10 pilot enterprises might help reduce costs per enterprise. Action Item, Stakeholder Time Horizon Estimated Cost Women’-s Welfare • 1–3 months to set up • $2,000–$5,000 cash/enterprise Committee, • 6-month pilot program • In-kind: Room for use by committee on a monthly basis, committee elections costs Enterprise • Ongoing • Time: 1 hour/month for committee members, time for elections TABLE 15  ■  Action Plans with Stakeholder Roles Action Plan Step Stakeholder Roles and Resources Women’s Welfare Committee, Enterprise 1.  IFC and BEPZA communicate findings and recommendations • IFC: Provide workshops to BEPZA investors and zone management to to BEPZA investors (1 month) build support for participation • BEPZA: Promote women’s associations through workshops and other outreach to investors • Investor: Participate in workshops, agree to allow workers to cre- ate women’s committees that are appropriate and relevant for their enterprise(s) • Buyer: Help make the business case to investors • Workers’ Association: Determine that women’s committee will be relevant and contribute to success of the workers’ association as a whole 2.  Factory human resources team, assigned BEPZA counselors, • BEPZA/IFC: Allow counselors to support outreach to workers, provide and WA executive committee meet and discuss findings from training to counselors to lead workshop for management and workers global study and Bangladesh study about the unique needs of • Investor: Allow human resources teams and others to coordinate with female workers, to vet the idea of a women’s welfare subcom- workers’ association and counselors on this issue mittee (2 weeks) • Workers’ Association: Determine that women’s committee will be relevant and contribute to success of the workers’ association as a whole (Continues on next page) Recommendations: Opportunities for Innovation in Bangladesh 43 TABLE 15  ■  Action Plans with Stakeholder Roles (Continued) Action Plan Step Stakeholder Roles and Resources 3.  WA executive committee facilitates a vote regarding a women’s • Workers’ Association: Organize and conduct vote on issue welfare committee (2 weeks) 4.  If results of the vote are favorable, workers’ association, human • Workers’ Association: Organize and conduct election resources department, and BEPZA counselors disseminate • BEPZA Counselors: Assist WA in conducting election information for election of women’s welfare subcommittee • Investor: Allow human resources department to support WA election members (1 month) of women’s welfare committee 5.  Election of women’s welfare subcommittee members held and • Women’s Welfare Committee Members: Elect head to serve on members selected; new subcommittee members elect head to WA executive committee serve on WA executive committee (1 month) 6.  Investor and workers’ association enlist mutually accept- • Investor and WA: Hold meetings with potential service providers to able NGO to provide capacity training to new subcommittee vet and select one members (2 months) • Potential Service Providers: • Solidarity Center, Bangladesh • Sheva 7.  Subcommittee meets regularly and discusses and advocates • Women’s Welfare Committee: Hold regular meetings for issues critical to female factory workers (Ongoing) 8.  At three and six months after the election, BEPZA counselors • IFC/BEPZA: Support use of counselors to conduct relevant interviews interview subcommittee members and assess effectiveness of and report to factory management, BEPZA, and workers’ association subcommittee for workers and company (2 weeks) members • Service provider: Provide training to BEPZA counselors on what to evaluate and how, and create evaluation tools including metrics for health impacts and business impacts 9.  BEPZA examines results of pilot, and considers making gender • IFC: Provide examples of similar policies as needed committees compulsory for enterprises located within the zone • BEPZA: Articulate and implement policy with more than a certain percentage of female workers. • BEPZA Counselors: Monitor adherence to policy Gantt Chart Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Ongoing Dialogue 1. IFC & BEPZA © investors findings & recommendations 2. Human resource, counselors & worker association discuss findings Committee 3. Executive committee vote re women’s welfare committee 4. Disseminate information about the election of subcommittee members 5. Elections of members and head Training & Meetings 6. NGO provides capacity training 7. Regular meetings Evaluation 8. Counselors interview sub committee members to assess effectiveness 44 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 16  ■  Monitoring and Evaluation Indicators Data Impacts Type Description Sample Data Source Frequency Increased zone Output Active women’s committee Factory Survey Quarter and factory Output % of committee members trained on rights and responsibilities Factory Factory records Quarter compliance, Reduced labor Output # of committee meetings per year Factory Factory records Quarter unrest Output Committee turnover rate Factory Factory records Quarter Outcome % of women on WA executive committee Factory Factory records Quarter Outcome Policies/programs targeting women established Factory Factory records Biannual Outcome % of women workers with positive attitude toward management Factory Factory survey Biannual Outcome Turnover rate Factory Factory records Year TABLE 17  ■  Examples, Women’s Committees: Global Study Example: Flower This cut-flower farm in Kenya’s Naivasha region has established an innovative system of gender committees, Farm, Kenya subcommittees of their already established workers’ associations. The gender committees enable the farm’s human resources department to monitor and address women-specific issues by working directly with female Est. 2007, ongoing workers on the committees. The farm established the committees in response to a growing awareness among Cost: Minimal cost of management of unplanned pregnancies, HIV/AIDS infection, and sexual harassment being experienced by initial training female workers. These challenges were recognized by management as a serious risk to stability, safety, and productivity in the workplace, and yet the workers’ association (dominated by men at the time) seemed unable to identify or address the issues. When the committees were first established in 2004, the company faced some challenges in getting them set up. The biggest challenge was a lack of understanding among committee members of their proper roles and responsibilities, which resulted in some initial conflicts with supervisors. To address this, the company invested in capacity-building training to help the committee members understand their roles and responsibilities, and to ensure effective management of each role. Examples of training topics include communication, running effec- tive meetings, leadership, rights and responsibilities, HR policies and procedures, challenges women face in management, and others. Another challenge was a misunderstanding by the workers of what the gender committees should be responsible for—many inappropriate issues were brought in front of the committees in the beginning, so the proper role of the committees needed to be communicated to the workers as well. A final challenge was encouraging women to take up positions as committee members, made difficult by a cultural view of women as inferior and incapable of taking up positions of authority, according to a company HR manager. Addressing these challenges and making the committees successful required a lot of patience and guidance from more senior HR staff. Another lesson learned was that after this initial hand-holding period, workers became highly capable of addressing the issues assigned to them with minimal supervision. Encouraging this sense of ownership by worker committee members will help make such committees successful. Since establishing the gender committees, the farm has seen a reduction in unplanned pregnancies, an increase in HIV/AIDS awareness, an increase in condom use, and a reduction of workplace sexual harassment, as well as active worker participation in developing a workplace sexual harassment prevention policy.a (Continues on next page) Recommendations: Opportunities for Innovation in Bangladesh 45 TABLE 17  ■  Examples, Women’s Committees: Global Study (Continued) Example: Sime Darby In response to a criterion for certification by the Roundtable on Sustainable Palm Oil (RSPO), Sime Darby Planta- Palm Oil Plantation, tion enlisted Tenaganita, a women’s rights and health NGO to help it develop and implement a gender policy. RSPO Malaysia Criterion 6.9 requires that a policy to prevent sexual harassment and violence against women, and to protect their reproductive rights, be developed. The criterion also requires that a specific committee be established to address Est. 2008, ongoing women’s concerns in plantations. This committee ensures women’s participation and representation and helps to implement and monitor the gender policy. The program began with bottom-up consultation of workers, formal release of the policy in 2008, and training of managers on the policy following the launch. In consultation, women raised a number of issues that, combined, re- vealed subjugation by management and wages lower than a living wage. Health challenges, gender-based violence, and family responsibilities, particularly of single mothers, were also raised. Gender committees gave female workers a venue in which to raise these issues with management, and to identify solutions. Women in the committees were also given leadership training to maximize their effectiveness as commit- tee members and leaders. The project also created a group of women responsible for empowering their colleagues and families, focused on sharing information on health and violence. The committee and management training resulted in some immediate benefits: • Overtime wages are being paid fairly • Management is taking gender into consideration for selected field operations: • Women are no longer made to spray chemicals. • Workers are allowed to work in teams to split up jobs; for example, heavy bags of fertilizers are carried by men and fertilizer application is done by women. • Improvements have been made in company housing conditions • Additional aid is provided for foodstuffs and in other nonmonetary forms, like transport for school children a   Interview and site visit, Flower Farm, May 19, 2010. Recommendation 4 In addition to opportunities for raising awareness and improving policies, there is also an opportu- BEPZA and BEPZA investors should support nity to improve existing services within the zones. women’s health education and services and im- For example, BEPZA should enhance the women’s prove workers’ nutrition health services provided via the hospital in Dhaka EPZ, and should explore the potential for opening BEPZA Counselor surveys found that 94 percent a women’s clinic within Chittagong EPZ (where of both male and female workers had missed work there is no hospital). Enterprises could similarly in the past 6 months because of illness. The average explore enhancing their existing provision of fac- length of absence ranged from one to eleven days. tory clinics, nurses, and visiting doctors (where ap- Male workers’ most frequently cited reasons were plicable), to better serve women’s health needs. headache and poor nutrition, while women’s were menstrual pain and a sick child.93 Some programs currently exist that address women workers’ unique Time and Cost Summary health awareness and services needs. Enterprise-level women’s health programs, in- cluding hot-meal provision, can be funded by In regard to nutrition, about half of the EPZ fac- the enterprise itself, with potential support from tories provide hot meals to workers, while the rest the enterprise’s key international clients (buyers). provide monetary compensation for meals. Ac- BEPZA-level facility or services improvements cording to BEPZA counselors, workers receiving monetary compensation usually save the money and do not eat an adequate meal. 93 BEPZA Counselor research, April–May 2010. 46 Fostering Women’s Economic Empowerment through Special Economic Zones Summary Investors can improve provision of hot meals to workers, and can implement women’s health education programs in their factories. BEPZA can enhance the women’s health services that are available within zones through partnerships with the Ministry of Health and/or international donors. Business Women’s health challenges have disproportionate business impacts for factories; for example, poor menstrual hygiene increases Impact absenteeism and anemia caused by malnutrition reduces productivity. Studies have demonstrated the positive business impacts of workplace women’s health programs, including a 2007 study in Bangladesh that found a $3:$1 return on investment from a women’s health program in the form of reduced absenteeism and turnover.a Another study in 2000 argued that workers’ poor health and occupational health challenges were significantly reducing productiv- ity in the RMG sector in Bangladesh. The study recommended that companies invest in health insurance programs, supplying iron and vitamin tablets, creating health clinics in factories, and running awareness-raising campaigns on hygiene and occupa- tional health and safety issues.b BEPZA should help publicize the business case for investments in women’s health and nutrition. BEPZA can also provide guid- ance to new and existing investors regarding potential policies, and possible NGO partners and programs. Stakeholder IFC: Facilitate relationship between BEPZA and ministry Roles Enterprises: Explore providing hot meals to workers; enhance factory-based clinic services to support women’s health needs better; invest in women’s health awareness-raising program International Buyers: Encourage suppliers to participate in women’s health initiatives; share successful methodologies from other countries; provide limited financial cost-sharing where appropriate BEPZA: Promote women’s health education programs; support improvement of hospitals and nurse-training services and work- ers’ access to them Ministry of Health: Partner with BEPZA to improve hospital services in DEPZ and develop services in CEPZ to serve female workers’ preventative health needs. a   ESD, “Effects of a workplace health program on absenteeism, turnover, and worker attitudes”, 2007. b   Paul-Majumder, Pratima and Binayak Sen (2000), Growth of ferment industry in Bangladesh: Economic and Social Dimensions, Oxfam GB, Bangladesh. can be funded by the Bangladeshi government, Provision of a nutritious midday meal may cost ap- sponsored by a group of international buyers, and/ proximately Tk 1,700–2,000 per worker per year,94 or supported by international aid organizations if but workers could pay ~2–3 taka per day (covering additional funding is needed. between 30 and 50 percent of the meal cost). The approximate costs for a 12-month awareness- raising program may range from US$3,000 to 94 Approximate costs based on a school meal program of $12,000 per factory. Facility improvement costs may the UN World Food Program, with money added to ac- vary, but for example, an enterprise could have its count for the additional amount of food eaten by adults. nurse trained quite reasonably, and then could seek Data from http://www.examiner.com/x-16819-Glob- donated or subsidized products such as sanitary pads al-Hunger-Examiner~y2009m7d17-School-meals- or family planning products that workers could buy. in-Bangladesh-fight-hunger (viewed 08/01/10). Action Item, Stakeholder Time Horizon Estimated Cost Health Training, Enterprises • 1–3 months to set up $4,000–$8,000 per enterprise, including in-kind • 12-month pilot program expenditures • Ongoing training Hot Meal Provision, Enterprises • 1–4 months to set up • Meal cost estimates require investor input • Ongoing • $25,000 for ROI study Zone Women’s Health Services, • 6 months–2 years to set up Formal cost assessment required BEPZA • Ongoing services provision Recommendations: Opportunities for Innovation in Bangladesh 47 TABLE 18  ■  Action Plans with Stakeholder Roles Action Plan Step Stakeholder Roles and Resources Health Training, Enterprises 1.  IFC, BEPZA conduct outreach to investors about the • IFC: Provide workshops to BEPZA investors and zone management to build value of investing in workers’ health and nutrition. support for participation Investors agree and commit to providing health pro- • BEPZA: Promote women’s health education programs through workshops, grams in their factories or participating in zone-wide outreach to investors initiatives (1 month) • Investor: Participate in workshops, agree to invest in programs that are ap- propriate and relevant for their enterprise(s) • Buyer: Help make the business case to zone investors (their suppliers) 2.  nvestors explore funding partnerships with buyers • IFC: Facilitate buyer-investor forum on topic (1 month) • BEPZA: Provide facility for forum • Investor: • Contact individual buyers to support program • Determine program contents—e.g., women’s health education program and/ or enhancing factory-based women’s health services clinic and counseling • Buyer: Consider investor funding requests 3.  Investors select NGO partner(s) (1–2 months) Potential Service Providers (alphabetically): • BSR HERproject • CARE Bangladesh • CSR Health Solutions • Mamata 4.  NGO partners implement health education training • Service Provider 1: Implement program program for workers and train factory nurses to pro- • BEPZA: Grant service provider access to zone vide better care for female workers (At 3–4 months, • Investor: Allow service provider access to factory and workers, encourage hu- duration 12 months) man resources and production teams to support and/or participate in program 5.  At 6 months and 12 months, BEPZA counselors evalu- • IFC/BEPZA: Support use of counselors to evaluate enterprise programs ate health and business impacts of health education • Service Provider 2: Provide training to BEPZA counselors on what to evalu- programs in select factories and report to BEPZA, IFC ate and how, and create evaluation tools including metrics for health impacts (1 month) and business impacts Nutritious Hot Meal Provision, Enterprises 1.  IFC, BEPZA conduct outreach to investors about the • IFC: Provide workshops to BEPZA Investors and zone management to build value of investing in workers’ health and nutrition. support for participation Investors agree and commit to providing health pro- • BEPZA: Promote hot meal provision as opposed to meal subsidies through grams in their factories or participating in zone-wide workshops, outreach to investors; explore formal policy initiatives (1 month) • Investor: Participate in workshops, agree to invest in programs that are ap- propriate and relevant for their enterprise(s) • Buyer: Help make the business case to investors 2.  Investors conduct cost analysis of hot food provision • IFC: Facilitate forum with investors on costs and benefits of hot food provision or improvements to food (1 month) with qualified trainer/nutritionist • BEPZA: Facilitate information sharing between investors as appropriate • Investor: Assess current costs (subsidy or no subsidy) 3.  Investors make changes to food provision • Investor: Cover costs of new program (1–2 months) 4.  Conduct ROI study in 3–4 selected factories to • IFC: Select service provider to conduct ROI study and cover costs of study demonstrate business benefits of nutritious hot food • Investor: Supply required data for ROI study on hot meal provision costs vs. provision (1 month) previous costs, absenteeism, turnover, and productivity • Service Provider: Conduct ROI study—may require baseline analysis at start of meal provision (Continues on next page) 48 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 18  ■  Action Plans with Stakeholder Roles (Continued) Action Plan Step Stakeholder Roles and Resources Zone Women’s Health Services, BEPZA 1  BEPZA explores partnership opportunities with • IFC: Facilitate relationship between BEPZA and ministry. If external funding is government and/or alternative funding options with needed, provide assistance identifying potential donors. assistance from IFC (3 months) • BEPZA: Conduct outreach to government and donor contacts • Investors: Make case to BEPZA and ministry for support for improvements, benefits to business through IFC-organized workshop • Ministry of Health: Explore potential to deploy services provision in zone; build women’s clinic in CEPZ or create mobile clinic to provide women’s health services in CEPZ • Potential International Donors: • International Buyers • GTZ, Swedish SIDA, USAID, Danish DANIDA, Canadian CIDA 2.  Map out proposed program development for CEPZ • BEPZA and All Contributing Stakeholders: Hold collaborative workshop (2 months) to determine course • Investors: Provide feedback to BEPZA on most useful services • BEPZA Counselors: Gather feedback from workers on most useful services and mode of service delivery Build out services (4–6 months) 3.  • Service Provider: Contribute to services development • Ministry of Health/Donor: Provide needed assistance • BEPZA: Provide needed assistance, facility 4.  Build in M&E to demonstrate uptake of services, key • IFC/BEPZA: Support use of counselors to evaluate enterprise programs areas of need, remaining challenges to uptake • Investors: Keep records of worker uptake of services (1 month, ongoing use) Gantt Chart Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Ongoing Outreach & Commitment 1. IFC & BEPZA © Investors commitment Planning 2. Investors explore internal needs, costs 3. BEPZA explore partnerships, funding 4. Investors select NGO partner Implementation 5. NGO partner, investor implement program(s) 6. BEPZA, partners build out services Evaluation 7. BEPZA Counselors evaluate health and business impacts of investor programs 8. M&E indicators track usage and feedback of BEPZA health services Recommendations: Opportunities for Innovation in Bangladesh 49 TABLE 19  ■  Monitoring and Evaluation Indicators Impacts Type Description Data Sample Data Source Frequency Factory and Zone services Increased female labor force Output % of workers with access to a hospital Zone Survey Biannual participation, Increased Output Average distance traveled to hospital Zone Survey Biannual life expectancy, Decreased maternal mortality rates, Output Average distance traveled to women’s Zone Survey Biannual More births attended by health services skilled health professional, Output # of zone-wide clinics Zone Zone records Quarter Increased GDP, Increased national competitiveness Output Women’s health services offered at Zone Zone records Quarter zone-wide clinics Output # of factories that contribute financially Zone Zone records Quarter to zone-wide clinics Output % of female workers using zone Zone Zone records Quarter clinics Output % of female workers using zone Zone Zone records Quarter clinics’ women’s health services Output % of factory clinics providing women’s Factory Factory records Quarter health services Output % of workers using factory clinics Factory Factory records Quarter Output % of female workers using factory Factory Survey Biannual clinics Output # of enterprises providing maternity Zone Zone records Quarter and nursing leave Outcome Health-related absenteeism rate Factory Factory records Year Outcome Employee loyalty (turnover) Factory Factory records Year Outcome Employee satisfaction Factory Survey Year Outcome Productivity Factory Factory records Year Factory Health Education Impacts Output # of factory-provided health clubs/ Zone Zone records Quarter Increased female labor force health fairs participation, Increased Output % of factories providing women’s Factory Factory records Quarter life expectancy, Decreased health education training maternal mortality rates, More births attended by Output % of factory workers trained Factory Factory records Quarter skilled health professional, Output # of training hours Factory Factory records Quarter Increased GDP, Increased national competitiveness Output Total # of workers trained Factory Factory records Quarter Outcome Level of understanding among workers Factory Survey Biannual of general and reproductive health Outcome % of female workers using factory Factory Survey Biannual clinics Outcome Health-related absenteeism rate Factory Factory records Year Outcome Employee loyalty (turnover) Factory Factory records Year Outcome Employee satisfaction Factory Survey Year Outcome Productivity Factory Factory records Year (Continues on next page) 50 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 19  ■  Monitoring and Evaluation Indicators (Continued) Impacts Type Description Data Sample Data Source Frequency Hot Meals and Nutrition Impacts Output % of factories providing hot meals Zone Zone records Quarter Increased life expectancy, Output % of factories providing lunch allowance Zone Zone records Quarter Decreased maternal Output % of factories with nutritionist Zone Zone records Quarter mortality rates, Increased GDP, Increased national Output % of workers eating hot meal daily Factory Survey Biannual competitiveness Outcome Health-related absenteeism rate Factory Factory records Year Outcome Employee loyalty (turnover) Factory Factory records Year Outcome Employee satisfaction Factory Survey Year Outcome Productivity Factory Factory records Year TABLE 20  ■  Examples, Women’s Health: Global Study Example: HERproject was launched to address low levels of health awareness among female factory workersa as well as to HERproject Egypt demonstrate the benefits to businesses of factory-based health programs.b An initiative of the Center for Development Services (CDS), in partnership with BSR and the Extending Service Delivery Project (USAID), HERproject was imple- Dates: 2009–2010 mented in three garment factories in Egypt over the period 2009–2011. The model included identifying peer educators Cost: US$8,000 / in each factory, delivering monthly training sessions to the peer educators on women’s health topics, and then encour- factory for health aging the peer educators to spread their learning to peers and be available to counsel female workers while at work. education program; At completion, the program was found to have improved improved women’s health knowledge on key topics includ- Return-on-investment ing family planning, menstrual hygiene, pre- and postnatal care, and sexually transmitted infections and blood-borne study carries additional diseases. Health behavior and attitudes also improved with regard to hygiene, nutrition, a healthy lifestyle, and female costs genital mutilation. By investing in women’s health education, the participating factories have also benefited and in- creased their competitiveness. Specific business benefits include: • Reduced health-related absenteeism: One factory saw a reduction from 13.5 to 9.5 percent, the other from 15 to 10 percent; • Reduced requests for early leave, particularly for reasons related to menstrual pain; • Increased employee loyalty, especially among women workers: One factory saw a 5+ percent difference between the turnover rates of women and men at the end of the project; • Improved productivity; • Improvement worker-management relations; • Improved worker concentration; and • Increased leadership and communication skills among workers. Challenges encountered during the program included limitations on time for training within the factory, mostly tied to production peaks; resistance from some factory managers; turnover of key program staff such as peer educators, nurses, and HERproject trainers; and cultural challenges in addressing sensitive women’s health topics. Challenges were addressed throughout the project using collaboration, training methods for new recruits and peer educators, and training materials formulated for dealing with sensitive issues. A key factor in the program’s success was the focus on factory nurses’ involvement, development, and leadership. Nurses’ roles and performance expectations were also expanded in some factories, to include counseling and factory- based presence—their role was made more proactive and focused on preventative care, rather than reactive and focused on basic treatment for accidents and emergencies. This program has the potential to be rolled out to factories operating in zones around the world. It is currently being successfully implemented in more than seventy factories in Bangladesh, China, India, Mexico, Pakistan, and Vietnam. (Continues on next page) Recommendations: Opportunities for Innovation in Bangladesh 51 TABLE 20  ■  Examples, Women’s Health: Global Study (Continued) Example: Future In 1998, a garment factory established a “Club Futura Mamá” (Future Mothers’ Club) in addition to the gynecological Mothers’ Club, El and pediatric services offered by the zones in which it operates (Export Salva and AIP). The club focuses on ensuring Salvador better health for women employees who are pregnant or have recently given birth and their children. Prenatal activi- ties include training on nutrition and care of infants, and postnatal activities include counseling and assistance in Est. 1998, ongoing caring for the child. The company brings in outside service providers for some of this work. By ensuring that its women workers understand how to properly care for themselves and their children, the company creates business value through a more satisfied workforce and reduced absenteeism and turnover. This service is particularly impactful since many of the workers come from rural areas where science-based reproductive health education is limited. Club activities are ongoing in all factories with no set end-date; the program will end when and if needs have been met. Example: ESD The program was implemented in a factory in Chittagong, Bangladesh. The factory had 450 employees, 85 percent Program, of whom were women. HSPDA supported program implementation, which included funding a factory-based clinic Bangladesh operating 3 days per week at a cost of approximately US$47 per week. The health team comprised a doctor (Ob/Gyn), a nurse-counselor, and an attendant. Over the 18 months of the program (Jan. 2005–June 2006), the clinic recorded Dates: 2005–2006 1,145 consultations, which provided 2,263 treatments. Cost: US$47 per week The program also included a peer education program that sought to raise awareness among workers about the for direct and indirect services available in the clinic and the importance of utilizing the services. For visiting the clinic and receiving costs for clinic staff basic health services and information, including reproductive health and family planning products, workers paid and medicines and a co-pay of Tk 5 (or seven US cents) per visit—the equivalent of the cost of a cup of tea or two bananas at a local full pay to workers food vendor. during clinic visits and scheduled peer In examining the business value of the program over 18-months, the study found the following: education sessions • Audit Data: • Average of 18 percent fewer days lost to absenteeism (from 867 to 712); • A 46 percent decrease in staff turnover (from 40 to 21) • Worker Interviews: whether or not they used the onsite clinic services, their availability made workers • Less likely to be absent from work • More likely to stay in their current job • More likely to have positive attitudes toward factory management The study quantified the monetary value of the return on investment in reduced absenteeism and turnover as US$3:$1 over the 18-month program period. Example: Jordan Factory clinics provide basic services (most only have a doctor for a few hours per week) and the clinics are often zone-wide clinic ill equipped to address female heath issues. Given the limited capacity of factory clinics, the General Trade Union of with women’s Workers in Textile Garment & Clothing Industries, with financial support from the Japanese government, has estab- health services lished and manages two zone-wide general medical clinics in Irbid and Al Dulayl. Factories can pay the union a fee to treat their workers at the union clinic, which has more advanced medical services than factory clinics and provides Est. 2000 and 2002, women’s health care services (gynecology, obstetrics, ultrasound). The clinics provide service to more than 70,000 ongoing workers annually. Cost: US$92,000 per A major challenge was convincing employers to allow their workers to use the clinics. One tactic used was to sign clinic (2) to equip, medical agreements with zone-based companies for the clinics to cover the cost of treatment, medical examina- launch, and maintain tions, and initial tests. This was successful, particularly because Jordanian law requires factories to provide a facilities; Workers us- doctor, and the clinics made it easier for factories to meet this requirement. A remaining challenge is securing ing the clinics pay no updated medical instruments and tools, and obtaining medicine for dispensing, because companies do not cover fee for service these costs. One major success of the clinic project was to put in place a system of medical check-ups for hearing and lung health, as these are key occupational health issues in the garment sector. This model was so successful that it was adopted by the Jordanian Ministry of Health and Labor Ministry for use by all factories and nearby hospitals, both inside and out of qualified industrial zones. a  BSR, Women’s General & Reproductive Health in Global Supply Chains, October 2006. b   ESD, “Effects of a workplace health program on absenteeism, turnover, and worker attitudes”, 2007. 52 Fostering Women’s Economic Empowerment through Special Economic Zones Recommendation 5 MM There is a cultural preference to leave children with a relative or trusted elder near home BEPZA should create a zone-sponsored child-care center or group of centers to increase workers’ uptake An opportunity exists for BEPZA to create shared of and benefit from factory-level child-care services. and zone-managed child-care centers for use by all workers in the Dhaka and Chittagong zones. Such The child-care system that currently exists in fac- a center will help BEPZA investors meet compli- tories is required by law, but is not being imple- ance requirements without having to manage a mented effectively. Workers are not using the fa- child-care center internally. This would improve cilities because they are inadequate, inaccessible, or the attractiveness of locating a business in the zone culturally unacceptable. Meanwhile, investors are by reducing the financial burden on any one fac- still paying for inadequate or underused services. tory, while ensuring that all factories operating in the zone are in compliance with Bangladeshi law. Specific reasons given to BEPZA counselors for It would also ensure that all women working in the underutilization: zone have a reliable child-care resource, and there- fore would potentially reduce absenteeism—or the MM 84 percent do not use child-care services be- likelihood of women missing work because their cause they are not secure or oversight is poor95 child-care provider is unavailable or sick, which MM 16 percent said the center is too small or poorly was frequently cited as a reason for absenteeism ventilated96 in the worker-based surveys. Investors confirmed MM 16 percent said transporting children to zones that this solution would be acceptable to most of is a challenge97 them and preferable to the majority.98 MM Many centers simply comply with the literal law and offer a room without child-care pro- viders, or the child-care providers are under- 95 BSR/BEPZA Counselor research, April-May 2010. qualified 96 BSR/BEPZA Counselor research, April-May 2010. MM Factories place limits on use of child-care cen- 97 BSR/BEPZA Counselor research, April-May 2010. ters, such as age or number of children 98 BEPZA Investor Focus Group, May 31, 2010. Summary Most female workers are dissatisfied with or underserved by existing factory-level child-care services. A zone-managed facility will relieve factories of the burden of provision and will facilitate improved legal compliance and easier compliance monitoring. Investors should advocate the creation of the center to BEPZA, explaining their current challenges and the benefits of this solution. Investors will contribute required fees to allow their workers to use the center once established, and they should modify their transportation policies to allow children under five to travel with their parents to the center. Business Women often miss work to care for their children; a center would reduce such absenteeism by allowing women to have their Impact children close by. High-quality child care is a strong nonfiscal incentive for women to remain in their job. For example, in Kenya, female factory workers are paying almost 3 times their cost in rent for good child-care services, and opt to live in the slums in order to afford these services. Stakeholder IFC: Facilitate relationship between BEPZA and ministries. Roles Enterprises: Pay into zone-wide child care; modify transportation policy to allow access to workers’ children under 5 years of age. International Buyers: Encourage suppliers to utilize the child-care center; acknowledge participation in the center in audit- ing protocol; provide limited financial cost-sharing where appropriate. BEPZA: Conduct feasibility study of zone-wide child-care center (study may require external assistance); identify spaces for child-care center; manage center; fund outreach and awareness-raising by local NGO to drive uptake of child-care center. Ministries of Women and Children/Education: Partially subsidize child-care/preschool services for women working in zones. Recommendations: Opportunities for Innovation in Bangladesh 53 However, some problems with this solution remain Assuming that a usable structure(s) exists, Phulki (a and would need to be explored ahead of full-scale qualified NGO with existing child-care programs implementation. Both investors interviewed in in factories) has provided cost estimates for estab- May 2010 and international buyers interviewed in lishing a program. The program components would November 2010 questioned the viability of a shared include a training program for child-care providers center. For example, some questioned whether su- as well as an outreach program to female workers pervisors would allow women to leave the factory to encourage use of the facility in ten pilot facto- premises during the working day to breastfeed ries. Phulki estimates the costs of the program at Tk their babies. Second, the issue of safe transporta- 598,720 for one year, or approximately US$8,650. tion was raised—factories and/or BEPZA would This cost excludes equipment and furniture costs, need to create policies and systems that support which would be assessed based on existing materials. women bringing their babies from home to the child-care center. This issue may make community- Under the program design above, the ten pilot based child-care centers more appropriate.99 factories would pay into the center to allow their workers to use it. These costs could cover a por- tion of the worker outreach program as well as the Time and Cost Summary caregivers’ salaries. If a bricks-and-mortar structure needs to be built to house a child-care center or multiple centers, one-time funding can be sought from internation- BEPZA Investor Focus Group, May 31, 2010. IFC 99 al donors for this purpose. Buyer Focus Groups, November 8 & 9, 2010. Action Item, Stakeholder Time Horizon Estimated Cost Childcare Center Immediate and ongoing following • $10–$15 per female worker user per month, or, alternatively, Utilization, Enterprises establishment of center (see below) • Payscale based on total number of female workers rather than use Zone Child-Care Center, • 6 months–2 years to set up, Formal cost assessment required BEPZA dependent on need for construction • Ongoing services provision TABLE 21  ■  Action Plan Action Plan Step Stakeholder Roles and Resources BEPZA Child-Care Center(s) 1.  Investors communicate need for EPZ-level child-care • IFC: Provide workshops to BEPZA investors and zone management to build center(s) to BEPZA. BEPZA and investors agree on and support for participation commit to child-care center(s) (1 month) • BEPZA: Promote value of quality child-care to investors • Investor: Participate in workshops; express support for and commitment to zone-wide child-care center • Buyer: Provide support of outreach as relevant 2.  If needed, BEPZA and IFC explore funding options for • IFC: Provide funding map of potential donors; arrange introductions to construction with government ministries and international BEPZA, investors donors (2 months) • BEPZA: Conduct feasibility study of zone-wide child-care center • Potential International Donors: • GTZ • DFID • Canadian CIDA • Swedish SIDA (Continues on next page) 54 Fostering Women’s Economic Empowerment through Special Economic Zones TABLE 21  ■  Action Plan (Continued) Action Plan Step Stakeholder Roles and Resources 3.  BEPZA, investors, and IFC identify implementing Potential service providers: organization via formal proposal-solicitation process • Phulki, Dhaka (2 months) • MAMATA, Chittagong 4.  Investors apply to participate in pilot program, and pay • Investors: Pay into zone-wide child care; modify transportation policy to determined cost per % of female workers (2 months) allow access to workers’ children under 5 • BEPZA/IFC/Service Provider: Accept factories for participation in the pilot program 5.  Selected implementing organization implements training • Service Provider: Design training content and conduct child-care program for participating investors’ child-care providers provider training and external child-care providers as needed (1 month) 6.  Implementing organization runs awareness-raising • Investor: Support human resources departments’ participation in outreach campaign within zone to encourage women to use new • Service Provider: Design outreach plan and conduct outreach in partici- center(s); participating investors’ human resources staff pating factories support outreach to workers (3 months) 7. Center opens • Service Provider: Monitor child-care providers continuously for first 3 months 8.  At six months, external evaluation examines uptake and Potential External Evaluators: quality of center (3 months) • Bangladesh Institute of Development Studies (BIDS) • BEPZA counselors, following training by qualified M&E service provider • Other Gantt Chart Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Ongoing Outreach & Commitment 1. Investors © BEPZA Planning 2. Explore funding options 3. BEPZA, Investors, & IFC Identify implementing org 4. Investors commit to participate Implementation 5. Selected partner implements training program 6. Partner runs awareness campaign 7. Childcare center opens Evaluation 8. Evaluation of uptake and quality Recommendations: Opportunities for Innovation in Bangladesh 55 TABLE 22  ■  Monitoring and Evaluation Indicators Impacts Type Description Data Sample Data Source Frequency Lower unemployment Output # of women with enrolled children Zone Center records Quarter rate, Increased Output % of mothers (children under 6) in Factory Factory records Quarter female labor force participating factories with enrolled children participation rate, Increased GDP Output Average factory contribution Zone Center records Quarter Output # of factories contributing to facility Factory Center records Quarter Output Factory worker satisfaction rate with child-care Zone Survey Biannual facility Output Alternative methods of child care Zone Survey Biannual Output % of mothers (children under 6) using Zone Survey Biannual alternative methods of child care Output Average distance traveled to child-care facility Factory Survey Biannual Outcome Absenteeism rate Factory Factory records Biannual Outcome Productivity Factory Factory records Biannual Outcome Worker satisfaction with factory Factory Survey Biannual Outcome Turnover Factory Factory survey Biannual TABLE 23  ■  Examples, Child Care: Global Study Example: Phulki is an NGO that specializes in providing support for working women, and is considered an expert in Phulki Day-Care Program, workplace child-care centers in particular. One of Phulki’s child-care programs establishes and sometimes Bangladesh manages day-care centers in factories. Phulki manages about 30 day-care facilities in factories and has helped factories set up approximately 100 others. Phulki also runs more than 30 community day-care Ongoing programs centers. Phulki is in the process of creating a franchise model to train NGOs to run the same program in other parts of the country. In its work with factories, Phulki has found that factory management often would prefer to pay Phulki to manage the day-care centers that are required by law than have to run the centers themselves. Example: Crèche, India Golkadas Images Private Limited has sixteen factories employing approximately 13,500 people in and near Bangalore, India. 85 percent of Golkadas Images’ employees are women. The company established Dates: 2001–2002 systems a workplace “crèche” (child-care center) in one factory in Bangalore in response to a demonstrated need development, crèche ongoing among workers, as well as a national law requiring such services. The crèche is available for worker’s children age 6 months and up, and there is no waiting list or restrictions on usage. Since creating the crèche, Golkadas Images’ management has observed improved productivity and attendance at work by female workers with children. Example: Collaborative The crèche cares for over 500 children of workers at over 60 factories in Ambattur, near Chennai, India. Each Crèche, India factory pays into the costs of the center. Unfortunately this study was unable to acquire additional details regarding this program. Dates: Unknown Chapter 7 Implications for Competitiveness M ost current programs specifically target- MM Zones in Bangladesh currently have the rep- ing women in Bangladesh are conducted utation of providing generally better pay and at the enterprise level, but there is great working conditions than factories outside of the potential to expand the positive business impact of zones. This reputation can be further enhanced enterprise-level programs at the zone level. by announcing a renewed focus on women working in EPZ factories. In addition, the ben- Examining the business case for programs target- efits of legal compliance and greater ability to ing women in Bangladesh from three different meet buyers’ standards within the zones rather angles, we find the following: than outside can help Bangladesh’s EPZs grow their share of the export market. Though legal Enterprise: Do programs and policies targeting compliance is not specific to women, improved women reduce turnover and absenteeism and/or compliance will disproportionately impact increase profitability? women through compliance with policies pro- viding protections such as child care and ma- MM Quantitatively and qualitatively, factories and ternity leave. international buyers have found benefits to MM If BEPZA develops some zone-level policies businesses from workplace programs targeting or programs targeting women, it can also use women, in the form of enhanced worker loyal- findings on the enterprise-level business ben- ty and skills, reduced absenteeism, and reduced efit to encourage investors to locate in the zone. turnover. It can be assumed that the above re- sults also contribute to improved productivity National Economy: Do programs and policies and quality. targeting women contribute to job creation and MM The second area of business benefit is in risk mit- increase foreign investment and GDP? There is igation, preventing capital flight and supporting less evidence of this type of impact; however, a few compliance with the law vis-à-vis women work- assumptions might be made: ers’ rights. This is important to buyers, and, as women are among the most vulnerable employ- MM Improving the working conditions and liv- ees, their need for protection is heightened. ing standards of female factory workers in the EPZs will contribute to an improved percep- Zones and BEPZA: Do programs and policies tion of Bangladesh as a sourcing destination targeting women increase the likelihood that busi- for international buyers, which may lead to in- nesses will locate in the zone? creased foreign investment. 58 Fostering Women’s Economic Empowerment through Special Economic Zones MM Increasing the skill level of the female workforce RMG industry. It may also support the growth through enterprise- and zone-level programs of higher-skilled manufacturing industries, will also contribute to enhancing Bangladesh’s such as electronics. competitiveness for foreign investment in the Chapter 8 Resources Key Implementers and Experts in Bangladesh Organization Name Location Focus Area Awaj Foundation Dhaka Workers’ rights, workplace programs, living wage, women’s rights, women’s health Bangladesh Federation of Women Dhaka Various programs to support women entrepreneurs: Advocacy, training, exchange Entrepreneurs programs, mini-mart startups, mentoring Bangladesh Institute of Labour Dhaka NGO promoting workers’ rights and human rights. Specific program targeting Studies (BILS) women workers, Common Demand for Women Workers, includes advocacy, leadership training programs, women’s committees within trade unions. Bangladesh Legal Aid and Services Dhaka Legal aid NGO Trust (BLAST) Bangladesh Mahila Parishad Dhaka Women’s legal aid and advocacy organization Bangladesh National Women Dhaka Women’s legal aid and advocacy organization Lawyer’s Association Bangladesh Women’s Chamber of Chittagong Women’s business association. Runs trainings for female business owners. Commerce and Industry BRAC Various Poverty-alleviation programs including education, health, knowledge and skills training, social enterprise, and human rights and legal services. CARE Bangladesh Dhaka Programs focused on women’s health and empowerment. Some workplace programs, working with local organizations such as Mamata and Sheva. Chittagong Women’s Chamber of Chittagong Women’s business association. Commerce and Industry Engender Health Various Women’s health experts. Provide trainings to doctors and nurses, work mostly in rural areas. GTZ Dhaka German government donor supporting development programs. Progress Program promotes social and environmental production standards in the RMG industry. Joint program of Bangladesh Ministry of Commerce and the German Federal Ministry of Economic Cooperation and Development (BMZ), implemented by GTZ and partners. INCIDIN Dhaka Community and Industrial Development Initiative in Bangladesh. Conducts research and implements programs serving vulnerable populations. Karmojibi Nari Dhaka Organization of women workers, striving to establish rights, dignity, and authority of women workers as well as women and laborers. (Continues on next page) 60 Fostering Women’s Economic Empowerment through Special Economic Zones (Continued) Organization Name Location Focus Area Mamata Chittagong Workers’ empowerment, women’s empowerment, access to finance, women’s health, literacy, community outreach Marie Stopes International, Various Women’s health experts and implementers. Have train-the-trainer programs for Bangladesh social compliance, offerings on women’s health and life skills, also factory-nurse training programs. NUK (Centre for Women’s Initiatives) Dhaka Gender equality and women’s rights organization. Large social audit program. Phulki Dhaka Child care, services for working women, women’s health. Programs training Partners in factory child-care providers and raising awareness of providers among mothers. Chittagong Sheva Dhaka Social compliance monitoring, workers’ rights and empowerment Smiling Suns Clinics Dhaka Community health clinics. Recently signed agreement with BGMEA to provide factory doctor visits. Solidarity Center, Bangladesh Dhaka Workers’ rights education and community engagement. Worker association leadership training programs. Swiss Contact, Bangladesh Dhaka Vocational training and social auditing UBINIG Dhaka Policy research for development alternatives Women Entrepreneurs’ Association Dhaka Membership organization for female entrepreneurs and prospective entrepreneurs. (WEA) Runs business, management, skills training for members. Women in Small Enterprise (WISE) Dhaka Connects female entrepreneurs, mostly in small business, with microfinance loans from MIDAS bank Office of the World Bank-IFC Vice President for the Private Sector Development and Office of the Chief Economist, IFC Tel: (202) 458-7777 Fax: (202) 522-3480 Email: rru@worldbank.org THE WORLD BANK