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Incentivising Pro-Labour Reforms

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  • Alice Evans

    (Center for International Development at Harvard University)

Abstract

This paper shows that countries may reduce labour repression if they perceive this as conducive to export growth. This paper traces what happened before, in the presence of, and then following the withdrawal of international economic incentives for pro-labour reforms in Vietnam and Bangladesh. The Government of Vietnam announced it would allow independent trade unions, in order to join the Trans-Pacific Partnership (TPP) and increase market access. Similarly, the Government of Bangladesh rescinded restrictions on unions, following global condemnation of Rana Plaza and fear of buyers leaving en masse. Both governments reduced labour repression to promote export growth. With high-level authorisation, Vietnamese and Bangladeshi activists and reformists became less fearful, and mobilised for substantive change. However, these economic incentives were short-lived: after Trump’s election, the USA withdrew from TPP; buyers continued to source from Bangladesh, and squeezed prices (without requiring labour reforms). Both governments then amped up labour repression - notwithstanding private regulation, economic upgrading, industry growth, and mass strikes.

Suggested Citation

  • Alice Evans, 2019. "Incentivising Pro-Labour Reforms," CID Working Papers 349, Center for International Development at Harvard University.
    • Handle: RePEc:cid:wpfacu:349
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    File URL: https://bsc.cid.harvard.edu/files/bsc/files/2019-03-cid-wp-349-incentivising-labor-reforms.pdf
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    References listed on IDEAS

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    Cited by:

    1. Sandra Polaski, 2022. "The strategy and politics of linking trade and labor standards: an overview of issues and approaches," Chapters, in: Handbook on Globalisation and Labour Standards, chapter 11, pages 203-225, Edward Elgar Publishing.

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