Friday, 31 May 2013

Americans’ dilatoriness on Bangladesh safety does them no credit. But they might still be right.

It’s irresistible to contrast the snail’s pace of American retailers’ approach to a Bangladesh safety plan with their “criticise first: plan later” attacks on their European colleagues. But that’s no reason for dismissing what they’re doing

Let’s have fun with the contrast first. They went out of their way to set themselves up for public ridicule, so it would be ungracious to turn down the invitation.

On May 15, America’s National Retail Federation (NRF) claimed that US “retailers are committed to a plan of action that is both workable and sustainable,” as it savaged the Accord on Fire & Building Safety in Bangladesh” (AFBSB). But no plan was revealed, and no US retailers appear to have publicly committed to the Safer Factories Initiative, which a number of US trade associations signed in mid May.

It now turns out that, whatever plan the NRF’s President and Chief Executive Matthew Shay thought some of his members were committed to, it doesn’t exist now. That didn’t stop him publicly attacking the judgement of NRF members who did sign the AFBSB. But when he went on to say that his group “has been working with stakeholders for a number of months to come up with a solution to address the safety issues”, he gave a pretty pathetic impression of American retailers’ ability to organise themselves. On May 30, the Bipartisan Policy Center (BPC), a Washington think tank, announced it was facilitating a process to be led by two former Senators, Democrat George Mitchell and Republican Olympia Snowe, that will seek to “develop and implement a new program to improve fire and safety regulations in the garment factories of Bangladesh”

The BPC said the ex-Senators, retailers and trade associations would seek to release their plan by early July.  Hardly an advertisement for the quality (or sense of urgency) of the “several months’ work” the NRF was boasting about a few weeks ago.

But some US retailers have been doing a lot more than “working with stakeholders” over the past few months. Gap and Walmart (widely assumed to be among the retailers participating in the BPC process) have been exemplary recently in the work they’ve done – and certainly in Gap’s case, in the money they’ve spent - to improve Bangladeshi factory safety. The test of that work doesn’t lie in what bits of paper they’ve signed, or which activist groups approve of them, but in the safety of people working in factories they use.

That doesn’t stop the usual suspects from pillorying US retailers for the crime of not signing the AFBSB. The attitude of unions is predictable. But another knee-jerk reaction is a more interesting one. Richard M. Locke, a political scientist at MIT’s Sloan School of Management said, “I don’t think it’s good to have competing initiatives.”

Why?

Let’s take retailers’ policies on unapproved suppliers. H&M have a policy of warning suppliers if they’re found using unapproved factories: Walmart now have a policy of instant firing. Which is right? I’ve got no idea. I think the better option is different in Bangladesh (where mass fatalities are a real risk, but demand is booming, so any staff losing their job can find an alternative quickly) from the better option in, say, Morocco: H&M’s policy probably works in Morocco, and I’m convinced Walmart’s is the better in Bangladesh. But I might be wrong. Neither policy is obviously preferable, and it makes no more sense to require every buyer to share a policy on this than on the colour of blouses a factory makes. One of the reasons MIT is a highly respected university is precisely that it’s physically close to Harvard and a number of other highly rated universities: having several different approaches to learning in Boston adds to the quality of education at all those institutions.

Believing in just one philosophy is the kind of dogmatism that caused the English king in the early 17th century to expel the Pilgrim Fathers, ultimately to near Boston, where those Fathers imposed a near-identical intolerance of any views other than their own for most of the following century. It’s depressing to find academics in Boston just as wedded to doctrinal orthodoxy as religious bigots four hundred years ago.

The BPC process starts off with a group of retailers and trade associations who want to see safer factories in Bangladesh. George Mitchell (or Sir George as some of us call him) happens to be a hero of mine:  his role in the Northern Irish peace process was a masterpiece of patient diplomacy, and I’m sure the BPC process will create a programme that will improve factory safety.

In much of the developing world, aid and development initiatives work best when channelled through competing organisations. Journalists love writing bitchy articles about how Oxfam (our local aid programme) does different things from CAFOD (the Catholic Church’s aid consortium) and both differ from what the Melinda and Bill Gates Foundation do. No doubt there are some disadvantages. But it’s precisely because the three (and often it’s closer to thirty-three) have different priorities and get their resources differently that aid can be targeted at different needs in different ways.

The most important single sentence for our industry in the past hundred years was Deng Xiaoping’s “do not care if the cat is black or white: what matters is how it catches mice", which ultimately caused the movement of basic manufacturing to Asia. A political scientist should recognise the principle applies as much to safety as to tolerating capitalism in China.

So should we all. Given their recent history, I wouldn’t bet on the US trade associations getting an agreement when they said they would. But Gap and Walmart will keep on making sure their factories get safer however long the talks go on. And the test of any eventual Plan isn’t what political scientists or union activists think about it.

It’s how many more people get to work in safe factories. And how many young Bangladeshis continue to find a better life for themselves and their families in safe, indoor work than they’ll ever find in the flood-prone subsistence farming they’re anxious to escape

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