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Begin New Search Topic Labor Issues Political Geography Madagascar

1. Working Conditions in Madagascar’s Apparel Industry: Comparing Export and Domestic Market Firms

Author:
Kristoffer Marslev and Lindsay Whitfield
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Centre for Business and Development Studies (CBDS), Copenhagen Business School
Abstract:
The apparel export industry in Madagascar is one of the largest in Sub-Saharan Africa, yet limited data exists on the conditions of its 180,000 predominantly female workers. This paper draws on new ILO quantitative and qualitative data generated in 2021 and 2022 to provide a systematic mapping of wages and working conditions in Madagascar’s apparel industry. The analysis shows important variations by end market. While workers in export firms are more likely to do excessive overtime and have inadequate rest time, they earn higher wages and enjoy better social protections such as paid leave, insurance, pension, and maternity. In contrast, nearly half of workers in firms producing for the domestic market earn incomes below the national minimum wage and have limited social benefits. These findings point to a paradox in which workers in export firms are more exploited in terms of their labor power but better off in terms of wages and benefits. The paper attributes these differences to the governance dynamics of global apparel supply chains, in which buyers on the one hand require suppliers to meet certain social standards and to comply with domestic labor laws, but on the other hand impose high flexibility demands that incentivize excessive overtime and work intensification. In both export and domestic market firms, however, wages fall severely below living wage benchmarks. In the context of high levels of absolute poverty in Madagascar and even lower incomes in agriculture, there is not much upwards pressure on wages and working conditions from the labor market.
Topic:
Labor Issues, Global Value Chains, Labor Market, Wages, Garment Industry, Work, and Apparel
Political Geography:
Africa and Madagascar

2. Exporting out of China or out of Africa? Automation versus Relocation in the Global Clothing Industry

Author:
Tilman Altenburg, Xiao Chen, Wilfried Lütkenhorst, Cornelia Staritz, and Lindsay Whitfield
Publication Date:
01-2020
Content Type:
Special Report
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The Discussion Paper examines the opportunities that the rising industrial wages in China will bring for Africa. China has been the industrial workbench of the global economy for decades. However, its competitive advantages are waning, particularly for labour-intensive assembly activities in the clothing, shoe, electronics and toy industries. The Chinese government estimates that up to 81 million low-cost industrial jobs are at risk of relocation to other countries - unless China can keep the companies in the country through automation. Against this background, three complementary studies were carried out. The first examines where the automation technology for clothing and footwear production stands today; the second, how clothing companies in China deal with the cost pressure: to what extent they automate, relocate within China or abroad and how great is the interest in Africa as a production location. The third part is devoted to Africa’s competitiveness in clothing assemly, with empirical findings from Ethiopia and Madagascar. The Discussion Paper shows that the manufacture of clothing can already be robotized today, but that for sewing, robotization will probably remain more expensive than manual labor in the next 15-20 years. China’s companies are investing heavily in the automation of all other production processes and at the same time shifting production to neighbouring Asian countries. In Africa, only Ethiopia is currently competitive in the manufacture of clothing, and here too there are significant institutional difficulties in absorbing large amounts of direct investment.
Topic:
Industrial Policy, Labor Issues, Foreign Direct Investment, Exports, and Automation
Political Geography:
Africa, Europe, Germany, Ethiopia, and Madagascar

3. Six ways to enable women’s economic empowerment

Author:
Fenohasina Rakotondrazaka Maret, Ammar A. Malik, Nan Marie Astone, and H. Elizabeth Peters
Publication Date:
11-2016
Content Type:
Commentary and Analysis
Institution:
Urban Institute
Abstract:
Worldwide, only about one in two women work, compared with three in four men. In some low-income countries, such as Zimbabwe and Madagascar, the labor force participation rate for women has reached 90 percent, but these women are often underemployed. Hard economic circumstances often force them to be self-employed or work in small enterprises that are unregulated and unregistered. About 83 percent of all domestic workers in the world are women, most of whom work in precarious conditions. Women also do much more unpaid work than men, including caring for children, the elderly, and people with disabilities; contributing to family farms or businesses; and performing household chores such as collecting water or gathering firewood. Improving women’s livelihoods constitutes basic human rights protection. But could including more women in the labor force also stimulate economic growth, enhance business competitiveness, and improve well-being? We recently conducted a review of evidence to answer that question and found that reducing the gender pay gap and equalizing access to economic opportunities and resources are good for economic, social, and business development. For example, some firms that purposefully reduced gender discrimination and supported family-friendly policies attracted more talented workers, improved retention rates, and decreased employee stress, resulting in enhanced productivity.
Topic:
Gender Issues, Labor Issues, Women, and Economic Development
Political Geography:
Africa, Zimbabwe, and Madagascar