CEBAI will help materialise Vision 2021 for RMG
Reaz-Bin-Mahmood | Monday, 8 December 2014
Economic growth, in other words, industrialisation has been playing a major role in employment generation, poverty alleviation and empowering women in the industrial sector. Presently the ready-made garment (RMG) sector in Bangladesh employs 4.0 million workers out of which 3.5 million are female. Despite experiencing a lot of problems the sector has secured the second position in the world in export, achieved a steadfast figure of US$ 24.5 billion in the fiscal year 2013-2014, accounting for more than 81.6 per cent of total export earnings of the country. The apparel industry is a labour-intensive industry which will create jobs for 2.5 million more people in the next five years.
In 2013 an international study reported that the export of Bangladesh RMG will double by 2015 and triple by 2021. This means there will be a big demand for multi-dimensional skilled workforces to achieve the export target of Vision 2021. A significant progress has been made towards achieving Middle Income Country (MIC) status by FY 2021. Policy planners are searching for policy interventions to attain the export target and also the status of MIC. The structure of employment and human development index have to be improved to attain these goals. It is now the time to consider the demographic surplus of Bangladesh as a major strength. The potential and capacity of a large population can be turned into the power through a set of quality skills which can contribute to the social and economic development in contemporary Bangladesh.
There is an ample scope for Bangladesh RMG to grow further leaving behind Vietnam. A study shows the performance of Bangladesh RMG export is lower than Vietnam's - the former earns US$ 21.5 billion with an active workforce of 4.0 million while the latter earns US$ 17 billion with only 1.3 million workers. The reason for such performance of Bangladesh RMG is the shortage of skilled manpower. Moreover, the mid-level management of our factories also lacks efficiency in productivity. Therefore, due attention should be given to set a productivity benchmark for Bangladesh apparel industry and enumerate the potential of productivity enhancement through skill upgradation.
In the Vision 2021 for Bangladesh RMG, the target of export earnings from apparels has been set at US$50 billion through cooperative and interactive approach of the government and private stakeholders, donors' support, involvement of brands and other unions. To realise the vision, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has established the Centre of Excellence for Bangladesh Apparel Industry (CEBAI) in association with the International Labour Organisation (ILO) and the financing partnership with Hennes & Mauritz (H&M) and Swedish International Development Agency (SIDA). BGMEA envisions to make the CEBAI a high-profile entity that would not only respond to demand-driven skills development initiatives, but also concentrate on research and development for the sector to turn the best ideas and thoughts into a strategic development agenda. ILO, besides its endeavour to improve working conditions and safety issues, has been pivotal in facilitating the creation of sustainable skills development initiatives that are market responsive and demand-driven.
A question may arise as to why we established CEBAI. Considering the fast growing industry and envisaging the potential expansion of RMG market in the next 5-10 years, we need such a platform which can demonstrate and implement the initiatives and can make the best practices for the industry in terms of skill development and research strategy.
In the context of recent skills development initiative, CEBAI is the training implementation wing as well as a knowledge-based organisation for a particular industry and would be driven by the Industrial Skill Council (ISC), a formal committee of National Skill Development Council (NSDC) comprising BGMEA, BKMEA, BTMA and other key stakeholders. The ISC devises strategic guidance policy inputs, and coordinates on skill issues that help bridge the skills gap, boost productivity and foresee a path of development with an ultimate equilibrium scenario. Representatives of ISC have participated in skills standards development for priority occupations (like machine operator, supervisor etc.) through the Standards and Curriculum Development Committee (SCDC). To cater to the heavy need of the market, competency-based training (CBT) would also help workers get a qualification certificate as per national technical and vocational qualification framework (NTVQF) which will offer them a career path. This would certainly enhance productivity at workplace. BGMEA, through the CEBAI, would promote NTVQF under the total mechanism of standard respectively.
The CEBAI has been established as a replicable model to ensure development of all sorts of skills that are required for the RMG industry. This will effectively increase employability and income of the working poor. This will contribute to poverty alleviation. CEBAI will also deliver training and certification for Instructors, Industry Trainers and Assessors and Owners of enterprises. To cater to the future progress of the industry, supervisors and managers will also be trained and certified in key leadership skills and responsibilities that will focus on Occupational Safety and Health (OSH), disability inclusion and workers' rights and responsibilities. Consistent with employment in the industry, the majority of beneficiaries will be women and there is a target of 5.0 per cent for people with disabilities. Furthermore, the skills level of 800 existing workers from the RMG sector will be assessed through Recognition of Prior Learning (RPL) and certified as the basis for improved wages. CEBAI has been established as higher platform of BGMEA, ensuring commitment for workers' dignity, safety, rights and economic independence. From national perspective, sustainable approach will be established through urban mobility and poverty alleviation. Last but not least, CEBAI will also develop a research strategy for the RMG sector on core areas of enabling environment for trade barriers, cross-border investment, technology transfer, value-added products, policy support and sustainability.
The success of this project rests with the commitment from the RMG industry, development partners as well as from the Government of Bangladesh. Once in place, the Centre of Excellence will serve as 'Think Tank' facilitating enabling environment for trade barriers, wage negotiations, cross-border investment, technology transfer, value-added products, policy support and sustainability. The International Labour Organisation (ILO) also believes that "the efforts to enhance skills of the workforce of RMG Sector signals a paradigm shift for the industry in Bangladesh. The reason why ILO has come up and helped BGMEA to implement such initiative is to transforming the workforce by introducing competency based training linked to nationally recognized training standards, which will be aimed at increasing productivity of the workers and creating a basis for better wages as well. The objective of ILO and BGMEA is same as both organisations are working for the betterment of the workers of Bangladesh and also to ensure that the employers and the industry benefits from a mutually beneficial relationship."
The writer is Vice President (Finance) of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).