The tragedy of Rana Plaza occurred, in fact, 20 years after the extension of codes of conduct and social audits, triggered by the Nike scandal in 1996. The persistence of massive human rights violations in the workplace in countries involved in textile subcontracting demonstrates the failure of corporate social responsibility (CSR) policies. Interview Textile industry: “Every purchase is a political act!” Nayla Ajaltouni This model shows the limits of excessive specialization, spurred on by liberal globalization, for countries in low added-value sectors focused on exports. While the textile industry represented 45% of industrial jobs in 2012, it only contributed to 5% of the country’s national income. Encouraged by bilateral free trade agreements, Bangladesh based its comparative advantage on the cost of its workforce instead of instead of investing in an industry that creates gainful employment. The value of these countries’ development models is called into question by the tragedy of Rana Plaza. The country still has one of the lowest minimum wages in the world for the industry ($80 per month). With its extremely cheap workforce and a massive production capacity, the country stood out as the new El Dorado in the 2000s for international outsourcers (who place orders through subcontractors). The collapse of Rana Plaza in Bangladesh in 2013 stands out as a symbol of the textile industry’s broken promises. ![]() Widespread human rights violations in the workplace Regulated in particular by the conventions of the International Labor Organization (ILO), human rights in the workplace are the most-often violated. The end of the Multi-fiber Arrangement in 2005, brought about further liberalization to the sector and accelerated competition among workers and social dumping. This progress is indispensable because the widespread use of subcontracting in the textile sector has led to a huge decline in working conditions and a wage stagnation in producer countries. ![]() However, consumers and civil society both nationally and internationally have driven the rise of restrictive legislations which should eventually become the prerequisite for a responsible industry. ![]() Ongoing systemic violations of fundamental rights in the workplace have also been caused by a number of phenomena liberal globalization spurs on the extension of value chains, multinational corporations practice outsourcing to obtain the lowest possible production costs, there is a lack of regulation and too much trust being placed in the voluntary efforts of companies. While it has helped several million people rise out of extreme poverty and women make up 85% of the sector’s global workforce, these workers have joined the ranks of the working poor throughout the world. The textile industry is a major source of employment in developing countries.
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