International labour standards a vital toolbox for Bangladesh’s sustainable development prospects

Bangladesh should leverage international labour standards to diversify its economy and negotiate for profitable international trade and investment agreements after graduating from the ‘Least Developed Country’ (LDC) status to a middle-income country, the International Labour Organisation (ILO)’s Senior Standards Policy Advisor, Tim De Meyer, said.

Bangladesh’s respect for international labour standards would position the country to negotiate greater access to international markets for its goods and services post-LDC graduation because trade agreements are increasingly being underpinned by international labour standards. 

“With LDC graduation, Bangladesh will be able to rebrand itself as an attractive destination for trade and investment, no longer having to rely exclusively on duty-free, quota-free access to export markets for its economic growth and development. This requires a drastic shift in mindset,” De Meyer told participants of a multi-stakeholder dialogue on how international labour standards could enhance the country’s trade and investment prospects. 

In a well-received presentation in Dhaka, De Meyer called on Bangladesh’s government and employers to recognize international labour standards as a strategic toolbox readily at their disposal for use to steer the country to attain its envisioned sustainable economic growth. 

“There’s need to change mindsets away from considering international labour standards mainly from the viewpoint of a tick-the-box reporting exercise in compliance with export markets requirements, to considering them as building blocks of institutions of inclusive labour market governance vital for sustainable trade and investment.”

As a middle-income country, Bangladesh will increasingly be expected to demonstrate that the country’s economic growth benefits all women and men. 

“There will be high expectations of making sure that graduation benefits not only trading partners but all people in the country. The advantages of LDC graduation must translate to better lives for everyone,” De Meyer said. “International trade within the context of sustainable development seeks equitable economic and social development that hinges on social justice.”

Speaking at the same event, UN Resident Coordinator Gwyn Lewis underscored the same point: “It is imperative to recognize that graduation from LDC status presents a double-edge sword. The challenges are often discussed such as the potential loss of certain trade preferences and benefits that come with LDC status, bit there are also other challenges that are focussed on ensuring that no one is left behind.”

She added: “Sustainable development is not just about economic growth but also about social progress and environmental sustainability. It is also about ensuring that the benefits of development are shared equitably among all segments of society. Having labour standards in place is essential for an effective transition.”

De Meyer said Bangladesh would do well to update its labour governance framework to reflect the realities of the work of work today, and proactively engage in genuine social dialogue around labour standards at all levels locally. 

“When one closely examines Bangladesh’s record of ratification of international labour conventions, it is interesting to note that quite a number of the current commitments hark back to the pre-independence era and have been superseded by newer standards that provide better tailored governance advice for a rapidly changing world of work,” De Meyer said.

He cited the need to build universal social protection, safe and healthy working environments, and the need for coordinated employment policies considering transformational changes brought on by automation, the emergence of the platform economy and agency work, climate change and changes in demographics. 

“International labour standards must proactively be part of Bangladesh’s LDC graduation strategy as they provide opportunity to fully tap into the trade and investment potential and promise offered by this historic transition,” De Meyer said.