Drivers of and Obstacles to Urban Competitiveness from the Perspective of the Garment Sector
36
30
25
20 10
10
Ci ty Ru ra ar l p ea e s o ri-u f D rb ha an ka Ur ba ar n p ea e s o ri-u f D rb ha an ka Ch itt ag on g Ci ty
0
Dh
50
50 41
40
43
30 20 10 0
ty
40
66
60
Ru r ar al p ea e s o ri-u f D rb ha an ka Ur ba ar n p ea e s o ri-u f D rb ha an ka Ch itt ag on g Ci ty
50
70
Ci
60
80
ak a
76
70
Figure 5.10 Percentage of Garment Workers with Regular Access to Piped Water, by Location
Dh
80
ak a
Share of garment workers with regular access to power supply (percent)
Figure 5.9 Percentage of Garment Workers with Regular Access to Power Supply, by Location
Share of garment workers with regular access to piped water (percent)
74
Source: Garment Firm Survey 2011. Note: Dhaka City refers to the Dhaka City Corporation. Dhaka refers to the Dhaka metropolitan area. Chittagong City refers to the Chittagong City Corporation.
2008). Relative to garment workers in Chittagong City, garment workers in Dhaka City live in a deteriorating urban environment, characterized by crime and violence, overcrowding, and significantly lower access to housing and services. About 36 percent of garment workers have regular access to power supply in Dhaka City, compared with 76 percent in Chittagong City. Only 41 percent of garment workers have regular access to piped water supply, compared with 66 percent in Chittagong City. The overcrowding index for garment workers in Dhaka City is 3.1 people per room, compared with 2.6 in Chittagong (figures 5.9–5.11). Dhaka City is also perceived as the least safe of the surveyed locations—a perception that is consistent with recent statistics (World Bank 2007). The high level of crime and violence in Dhaka City imposes considerable economic costs, including loss of productivity as a result of injuries and direct financial costs from the collection of “tolls” (that is, illegal payments, bribes). Annual employee turnover in the garment industry in Bangladesh (18 percent) is higher than in many other Asian countries (figure 5.12). When it is related to healthy competition among employers, a certain level of turnover is considered a sign of industry dynamism. High turnover can raise costs, however. The surveyed firms indicate their willingness to pay an additional Tk 20,000 a year to workers with one year of experience. The incremental salary is a proxy for the costs of training newly recruited workers and can be considered a lower-bound estimate of the cost of worker separation. Dhaka City has the highest level of urban-related inefficient turnover (defined as separations caused by an inefficient urban environment rather than by more competitive job offers), primarily because of the shortage of affordable housing and the high cost of living (figures 5.13 and 5.14). The overall cost of Bangladesh • http://dx.doi.org/10.1596/978-0-8213-9859-3