Bangladesh Private Sector Assessment A Preliminary Scoping Study The primary objective of the study is to provide a broad-based overview of the private sector in Bangladesh as a stakeholder in combating modern slavery in the country PB The Mekong Club Bangladesh Private Sector Assessment The Mekong Club Bangladesh Private Sector Assessment 1 The Mekong Club 1. Contents The Mekong Club is a catalyst 2. Objectives of the Study 4 7.2.6. Beximco Group 19 for change – engaging, inspiring and supporting the private 7.2.7. Square Group 20 sector to eradicate slavery from 3. Definition of Terms 5 7.2.8. City Group their business. Given that the 20 majority of modern-day slavery 4. Demographic Overview & Key Social Trends 6 7.2.9. Partex Group 20 exists in the private sector, these companies are ideally placed to 4.1. Population Distribution 6 7.2.10. Ananda Group 20 help turn the tide of this global epidemic. 4.2. Social Indicators 8 7.3. Top 200 Companies 20 4.2.1. Human Development Index (HDI) 8 7.4. Transparency 21 The only organisation of its kind, The Mekong Club steers away 4.2.2. GINI Coefficient 9 from the approach taken by other 4.2.3. Poverty Rate 8. The Mekong Club Target Sectors 22 players in this space, which is to 9 ‘name and shame’ companies – 8.1. Agriculture 22 ousting bad behaviour or issues 5. The Labour force 10 8.1.1. General related to this subject. Instead, 22 5.1. Employment and Income 10 we believe in starting and ending 8.1.2. The Shrimp and Fishing Industries 24 with collaboration. 5.1.1. Employment Distribution 10 8.2. FMCG Retail 24 5.1.2. Informal employment In fact, The Mekong Club 13 originally formed as a direct 5.1.3. Unemployment 13 8.3. Manufacturing 25 response to the growing 5.1.4. Income 14 8.3.1. General 25 number of companies looking to develop strategies to address 5.2. Gender Gap 15 8.3.2. Garment and Textile Industry 28 forced labour risk through a 5.3. Comparative Minimum Wage 15 8.3.3. Major Players 28 professional forum. Divided into industry-specific working groups, 5.4. Migrant Labour 16 8.4. Banking Industry 31 these networks meet regularly to learn, share best practices, 6. Political Risk Assessment 17 and network with other like- 9. Modern Slavery in Bangladesh 33 minded professionals. Member 9.1. Overview 33 companies also work together 7. The Private Sector 18 to achieve an annual deliverable 7.1. Overview 18 9.2. Highlights from US Trafficking Report 2017 34 which will work towards producing tangible results in the 7.2. Top 10 Conglomerates in the Private Sector 18 9.2.1. General 34 fight against forced labour. 7.2.1. PRAN-RFL Group 18 9.2.2. Migrant Labour 34 7.2.2. ACI Group 19 9.2.3. Rohingya Crises 35 7.2.3. Navana Group 19 9.3. Child Labour 35 7.2.4. Abul Khair Group 19 7.2.5. Bashundhara Group 19 2 The Mekong Club Bangladesh Private Sector Assessment The Mekong Club Bangladesh Private Sector Assessment 3 2. Objectives of the Study 3. Definition of Terms The primary objective of the study is to provide a broad- Throughout the report the following definitions will apply to the use of the terms based overview of the private sector as a stakeholder in human trafficking, forced labour, bonded labour and contract slavery, as specified by combating modern slavery in the country. More specifically The Mekong Club. the study aims to generate a knowledge base from which The Mekong Club can approach the private sector in order FORCED BONDED LABOUR HUMAN TRAFFICKING to create awareness and offer cooperative solutions for the LABOUR AND CONTRACT SLAVERY eradication of modern slavery in corporate supply chains; the core focus of the Mekong Club’s mission. An act (1) carried out by a All work or service which is Bonded labour begins when a third party, through different extracted from any person worker borrows money from The following secondary objectives specify the details of means (2), for the purpose of underthe menace of any an employer and commits the data that need to be gathered in order to fulfil the exploitation (3). penalty and for which the themselves to work person has not offered for the employer in return. For children under age 18 it is scope of the study: themselves voluntarily. sufficient to demonstrate Contract slavery involves the act of moving a child for deceiving or illegal contracts the purpose of exploitation. signed by victims who cannot understand them,and used to justify forced labour. 1. Act of: Threat of penalty Common features of Bonded • Give an overview of the demographic landscape • Recruitment • Physical and/or sexual Labour and economic conditions in Bangladesh • Transportation violence. • Transfer • Imprisonment or physical • The employer manipulates • Harbouring confinement. interest rates or charges • Detail the characteristics of the labour force in • Receipt • Withholding of wages, excessive rates. Bangladesh by looking at factors such as size, unreasonable fees or financial • The employer imposes average income, distribution, key issues 2. By means of: penalties. high charges for • Threat • Withholding of identity food, accommodation, • Provide a detailed analysis of the private sector • Force or coercion documents. transportation, or tools. • Abduction • Unfair dismissal or exclusion • The employer charges in terms of size of industries, number of workers • Fraud from future employment. workers for shortfalls in and key players • Deception • Deprivation of food or shelter. business output or days • Abuse of power • Exclusion from community, missed due to worker • Provide in-depth reports on the Banking/finance, • Abuse of vulnerability social life or denunciation to sickness. Manufacturing, Agriculture and Retail community/family. 3. For the purpose of: • Intimidation and other threats. Common features of Contract • Exploitation Slavery • Identify the current state of modern slavery in • Slavery or similar practices Lack of Valid Consent • Contracts are in a language Bangladesh • Servitude • Worker deceived about the the victim does not • Prostitution wages they would receive. understand. • Removal of organs • Worker cannot leave • Contracts are presented to • Forced labour and service employment as they must victims who cannot read. remain for an undefined period • Victim is told fines and to repay debts to employer. penalties will follow if he • Worker made to work by breaks the contract. family. • Deception or fraud during recruitment stages. HUMAN TRAFFICKING FORCED LABOUR BONDED LABOUR emphasizes the movement of is often a consequence victims of human trafficking and CONTRACT SLAVERY emphasizes are two forms of forced labour the exploitative condition the victim suffers 4 The Mekong Club Bangladesh Private Sector Assessment The Mekong Club Bangladesh Private Sector Assessment 5 4. Demographic Overview & Key Social Trends 4.1 Population Distribution The last official census in Bangladesh was conducted in 2011 and according to the Statistical Yearbook 2016 the total population of the country was estimated at 144,043,6971 in that year. The World Bank estimated the population at 162,95 million in 20162. The population is evenly split between males and females. The rural population constituted 64.95% of the total population in 2016, down from 76.41% in 20003 The age distribution of the Bangladeshi population is skewed to the youth, with more than 50% of the population being under the age of 30 years6 Population Distribution by Gender and location in 2016 2016 Total 162,951,560 Male 50.06% Population Pyramid 2016 Female 49.94% Male Female 100+ 0.0% 0.0% Rural 64.95% 95-99 0.0% 0.0% 90-94 0.1% 0.1% 85-89 0.1% 0.2% 80-84 0.3% 0.3% At 1237 people per sq. Km (in 2015)4 Bangladesh is one of the most densely populated countries 75-79 0.5% 0.5% in the world. The population is distributed regionally as follows: 70-74 0.7% 0.7% 65-69 0.9% 0.8% Population Distribution by Province in 20115 60-64 1.1% 1.1% 55-59 1.8% 1.7% 50-54 2.4% 2.4% Total Population 144,043,697 45-49 2.8% 2.8% 40-44 3.2% 3.2% Barisal Division 8,325.666 35-39 3.7% 3.9% 30-34 4.1% 4.3% Chittagong Division 28,423,019 25-29 4.4% 4.5% 20-24 4.8% 4.6% Dhaka Division 47.424,418 15-19 5.0% 4.8% 10-14 5.0% 4.8% Dhaka City (12,043,977) 5-9 4.8% 4.6% 0-4 4.7% 4.5% Sherpur (13,583,225) 10% 8% 6% 4% 2% 0% 2% 4% 6% 8% 10% Khulna Division 15,687,759 Rajshahi Division 18,484,858 Rangpur Division 15,787,758 Sylhet Division 9,910,219 1. http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/b2db8758_8497_412c_a9ec_6bb299f8b3ab/ 4. https://tradingeconomics.com/bangladesh/population-density-people-per-sq-km-wb-data.html StatisticalYearBookFinal2016.pdf 5. http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/b2db8758_8497_412c_a9ec_6bb299f8b3ab/ 2. https://data.worldbank.org/country/bangladesh?view=chart StatisticalYearBookFinal2016.pdf 3. https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS?locations=BD 6. https://www.populationpyramid.net/bangladesh/2017/ 6 The Mekong Club Bangladesh Private Sector Assessment The Mekong Club Bangladesh Private Sector Assessment 7 4.2. Social Indicators Bangladesh’s HDI Value and component measures compared to countries in the SEA region 11 4.2.1. Human Development Index (HDI) According to the UNDP Human Development Report of 20167, “Bangladesh’s HDI value for 2015 is HDI HDI Life Expected Mean GNI Per IHDI 0.579— which put the country in the medium human development category—positioning it at 139 out Expectancy years of Years of Capita Value Rank at birth schooling Schooling (PPP USD) Value of 188 countries and territories.”The Human Development Index (HDI) is a statistic measuring human 8 development based on life expectancy, education, and per capita income indicators .