Threads of Despair: An Argument for the Public Option in Garment Governance

Two consortia of multinational apparel companies, the Accord and the Alliance, have created a new governance system designed to ensure basic safety measures for Bangladeshi factories. The new system involves audits by the consortia, enforced remediation of substandard factories, and training of workers and management. I argue, however, that the new system is already showing weaknesses, and will not resolve safety issues. In order to find solutions, I explore alternative perspectives, including market adjustments, the promotion of labour rights through legal reforms by the International Labour Organisation and non-governmental organisations, and the development of new corporate codes to change global supply chains. Both a private-sector and mixed model of governance are found wanting. In the long run, the solution lies in public sector leadership, as was the case with labour standards in the West. However, political obstacles abound in Bangladesh, from the strength of textile factory owners to the weakness of unions. I conclude with a suggestion for a new governance model that addresses such issues.