Originally posted in The Business Standard on 22 February 2022
There are scopes for the government to play a crucial role in this regard
With more than 15% contribution to the export earnings, Germany is Bangladesh’s second largest single country export destination. If Bangladesh gets blacklisted due to any sanction or a new law by Germany, it could have a negative impact on export earnings.
The European Union and its member states have been emphasising labour rights protection, factory safety and elimination of child labour for the last couple of years.
Although there are many labour rules and regulations, European business communities and governments of those countries have not given much importance to compliance for the sake of their own business.
But things have changed a lot at government-level in Europe in recent times in the wake of increasing consumer awareness. The consumers and taxpayers are pressurising the governments in different ways.
Whether out of self-awareness or under consumer pressure, it is true that European countries are now pushing for labour interests. Apart from this, they are prioritising human rights, climate issues and sustainable production.
In my opinion, such a new German law would cause a temporary risk to Bangladesh’s export earnings. But in the long run, the law will serve as a signal to the country’s production system.
There is no guarantee that other western buyers will not follow Germany’s lead tomorrow. I think other European countries will follow the suit.
Considering this, we should take the signal into account seriously and give special attention to developing the industrial atmosphere. Human rights, environmental protection and labour rights should get more attention even for the sake of retaining the foreign markets.
There are scopes for the government to play a crucial role in this regard. Effective initiatives must be taken up now to ensure factory inspection and supervision ultimately leading to a disciplined industrial sector.
CPD Distinguished Fellow Prof Mustafizur Rahman talked to The Business Standard Senior Reporter Jahidul Islam over the phone Tuesday