Abstract

Globalization has helped countries to accelerate its growth and reduce poverty rate, particularly Bangladesh and Indonesia. Both countries started to reduce trade barrier and open up to globalization in around 1980s to 1990s and has enjoyed impressive growth since then. However, this impressive growth does not come without risks. Globalization has forced labors to meet the production target while neglecting safety measure, causing high work-related accidents in both countries. Statistics show an increase in the number of work-related accident year by year in both countries. In addition to the labor welfare condition, studies also show how actually even with decrease of global poverty rate, globalization increases inequalities. This paper analyzes globalization effect to labor welfare and inequality in Bangladesh and Indonesia by using comparative study approach. This paper also aims to provide solutions in minimizing inequality and enhancing labor welfare through the provision of decent work in accordance to Sustainable Development Goals (SDGs).

Highlights

  • Globalization is proven successful in enhancing economic growth, especially in Bangladesh and Indonesia

  • This paper aims to develop decent work as solutions to inequality and labor welfare, in work-related accidents case, in accordance to Sustainable Development Goals (SDGs)

  • Globalization promotes global capitalism which competes in making production cost as efficient as possible to win market competition

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Summary

Introduction

Globalization is proven successful in enhancing economic growth, especially in Bangladesh and Indonesia. In Bangladesh case, it experienced rapid economic growth since it liberalized and integrated its markets to global economy in 1990s. Manufacturing sector or fast fashion industry is one of the sectors that contributes most to the GDP of Bangladesh [1]. The contribution of manufacturing industry to Bangladesh’s GDP was rising from 13.4 percent in 1990, to 15.2 percent in 2000, and 17.4 percent in 2014 [2]. Fast fashion industry produced $28billion-a-year worth of garment export, making Bangladesh as the second biggest exporter of garment after China in the world. Fast fashion industry accommodates job for about 4 million labors in Bangladesh [3]

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