CGD in the News

Fast, Cheap, Dead: Shopping and the Bangladesh Factory Collapse (Time)

May 06, 2013

Senior Fellow Kimberley Ann Elliott's interview for the Washington Post is referenced in a Time piece on labor standards following the recent collapse of a factory in Bangladesh.

From the article:

The collapse of a factory building near Dhaka, Bangladesh, which killed at least 362 people, is almost certainly the worst accident in the history of the garment industry. It’s worse than the Triangle Shirtwaist Factory fire of 1911 that you learned about in American history class and which helped lead to legislation requiring improved factory safety standards. It’s worse than the 1993 Kader Toy Factory fire in Bangkok, which killed 188 people, nearly all of them women and teenage girls. It’s worse than the Ali Enterprises Factory fire in Karachi, which killed at least 262 people — and which I’m guessing nearly all of us had forgotten about, or never knew it occurred, even though the disaster happened only eight months ago.

Bangladesh is a lot poorer than the United States, and there are very good reasons for Bangladeshi people to make different choices in this regard than Americans. That’s true whether you’re talking about an individual calculus or a collective calculus. Safety rules that are appropriate for the United States would be unnecessarily immiserating in much poorer Bangladesh. Rules that are appropriate in Bangladesh would be far too flimsy for the richer and more risk-averse United States. Split the difference and you’ll get rules that are appropriate for nobody. The current system of letting different countries have different rules is working fine. American jobs have gotten much safer over the past 20 years, and Bangladesh has gotten a lot richer.

Yglesias was raked over the coals by, as he put it in a later piece, just about the entire Internet. (This one was particularly good.) Yglesias was guilty of, at the very least, bad taste — the economic wonkery can wait until the dead have been counted. He makes the neoliberal point, just as the sweatshop defenders did during the Nike Wars of the 1990s, that Bangladesh’s low, low cost of doing business has helped the country take needed textile jobs — including from China — and build an $18 billion manufacturing industry. But there’s a difference between accepting that workers are being paid sweatshop wages to make our incredibly inexpensive clothes — the minimum wage is $36.50 a month — and accepting that they must labor in deathtraps. And they do: according to the International Labor Rights Forum, an advocacy group in Washington, more than 1,000 Bangladeshi garment workers have died in fires and other disasters.

Even Yglesias backtracked later, emphasizing that there are on-the-ground improvements that can be made to labor standards in Bangladesh that could mean the difference between life and death. (See this interview with Kimberly Ann Elliott of the Center for Global Development for a few ideas.) And those improvements shouldn’t drastically increase the cost of clothes made in Bangladesh — which is a good thing, given our addiction to cheap and fast-changing fashion.

Read it here.