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Bangladesh - Belgium

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D.11. GTZ brokered dialogue within the Promotion of Social<br />

Environmental and Production Standards in the Ready<br />

Made Garment Sector (PROGRESS)<br />

I: Profile of the Intervention<br />

Issue<br />

Details<br />

1. Donor agency GTZ<br />

2. Partners / Implementing Self implemented ( as a technical assistance organisation<br />

agency/ies<br />

GTZ can implement its own projects) but part of project with<br />

3. Objectives : regarding<br />

CVA and wider objectives in<br />

case CVA is component of<br />

broader intervention<br />

4. Main CVA and other<br />

activities<br />

Ministry of Commerce<br />

PROGRESS original objective was to improve the<br />

competitiveness of small and medium sized enterprises.<br />

Since 2006 it has narrowed its focus on compliance<br />

standards and corporate responsibility..<br />

Round table discussions to develop uniform system of social<br />

standards and new labour law<br />

5. Target<br />

nistry of Commerce, business associations, buyers, suppliers,<br />

Group/Beneficiaries workers organisations, NGOs and civil society groups<br />

6. Key linkages of<br />

intervention with other<br />

programmes<br />

7. Duration Periodic (needs based)<br />

8. Starting date 2004<br />

9. Total budget Flexible and needs based but 2 years funding of the Multistakeholder<br />

Forum <strong>Bangladesh</strong> was funded with Euro<br />

150,000 including GTZ TA time<br />

II: Overall Assessment of Intervention using DAC Criteria<br />

Relevance<br />

There was great concern about the future of <strong>Bangladesh</strong>’s garment industry in the run up to<br />

the end of Multi-fibre agreement (2005)and withdrawal of quotas. The predicted crisis did<br />

not materialise. However, the emergent situation means that the garments industry must<br />

become more competitive and thus address increasing pressure to meet international social<br />

compliance standards. The highly published death of 64 workers in a factory collapse in<br />

April 2005 and a subsequent series of factory fires highlighted the hazardous conditions<br />

which workers face. Workers mounted violent protests in May 2006 demanding increased<br />

minimum wage, the right to unionisation, appointment letters, weekly holidays, overtime pay<br />

and maternity leave.<br />

GTZ sponsored round table discussions to make recommendations for new labour law<br />

(2006) and to develop a uniform system of social compliance<br />

Efficiency<br />

GTZ has the flexibility to draw down funds as needed. There is no project framework to work<br />

to, only an overarching objective to facilitate information flow and build capacity in the ready<br />

made garments sector. It is impact and results oriented, investing money when and where<br />

it believes results will be significant. GTZ is now a ‘private firm’ owned by the German<br />

Government which allows it flexibility and avoids budgeting constraints which apply to other<br />

public institutions. This ‘commercialisation’ means that it has to prove its worth and ensure<br />

transparency and accountability.<br />

This flexibility was put to the test when the programme originally designed to address the<br />

predicted fall out from the cessation of the Multi Fibre Agreement was no longer needed as<br />

the crisis never materialised. GTZ was able to immediately respond to the Ministry of<br />

Commerce’s request for help with the newly emerging challenge of meeting international<br />

social and environmental compliance standards. GTZ sees this as a comparative advantage<br />

over other donors because they can engage with processes and adapt as they go along.<br />

As far as possible GTZ claims to use local expertise (efficient in terms of cost and ‘need for<br />

local synergy’) GTZ staff directly engage in projects and since they are working with<br />

159

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