Editorial
Trade liberalisation facilities
Are the benefits reaching workers?
We take note of the fact that Bangladesh is allowed zero tariff facilities by various developed countries on consideration that such benefits would ultimately help reduce poverty and contribute to national development. To be more specific, these countries are offering duty-free access to some of our exportable items with the sole aim to raise the income level and living standards of the poor populace and workers who are struggling to survive with an earning of US dollar 30 to 40 a month. This no-tariff regime has come following trade liberalisation that was adopted to remove barriers to free trade and reach benefits to the poor in least developed and developing countries.
But, the question is whether this is happening in real life. Are the business houses getting the benefits actually share their profits with the workers who toil day and night to produce goods? Are the workers aware of such benefits at all?
The issues were pertinently raised by the Centre for Policy Dialogue (CPD) in a two-day regional seminar on Mainstreaming International Trade into National Development from South Asian Perspective. One of the papers suggested that in Bangladesh, both readymade garments and remittances have contributed to a drop in poverty by 2.6 percentage points between 2000 and 2005. But, it was clearly pointed out that Bangladesh could not make a second round adjustment in wages for workers in the name of competition. We understand, because of this inability to make adjustments, workers remain least benefited no matter how much profit the owners make. It was further noted that although incomes from the garment and textile industry have increased, social and health security issues of about 2 million workers have remained unresolved. There is no doubt that opportunities should be created for the workers to help them take part in the value addition process and that the trading system should be reorganised so that it works for the poor.
We believe a nation can make overall progress only when the government can ensure equitable distribution of wealth among its population. When tariff facilities are offered by the developed economies to help increase the wage rate of the poor workers, the owners of enterprises should announce the profits earned and distribute them among the beneficiaries. Such practice would not only help improve the standard of living of the workers, it would also help create a productive bond between them and the employers as well.
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