Rethinking employment reform: Can Bangladesh learn from global blueprints?

In recent months, two key players have emerged with a strong focus on addressing Bangladesh's employment crisis: the current interim government and the Bangladesh Nationalist Party (BNP). The interim government has recently rolled out an ambitious plan to improve employment opportunities and labour rights. Aspiring to take over the baton from the interim is the Bangladesh Nationalist Party (BNP), which has also eagerly campaigned to tackle the many woes of Bangladesh's labour force.

Having previously written on employment and economic development policy, it's intriguing to witness this renewed interest in the topic, with fresh ideas and proposals potentially revitalising the nation's economy after years of stagnant governance. 

Yet much is left to the imagination behind the interim government and the BNP's plans.

Comprehensive legislation is crucial for the success of Bangladesh's workers. While the current interim government cannot pass laws, it has focused on creating a favourable fiscal environment to support future employment legislation. 

Chief Adviser Yunus has made commendable strides in this regard, working to stabilise the nation's monetary institutions, engaging with business leaders to boost investments, and advocating for improved labour rights, particularly for garment workers.

On the other hand, the BNP's 'Vision 2030' platform offers a glimpse into their reform agenda. The party's proposals include an unemployment allowance, expansion of the tourism industry, tax credits for small businesses, and increased vocational training. 

A significant emphasis is placed on 'human resource development,' which focuses on enhancing individuals' skills, capacities, and employment potential. This approach is compelling, and if the BNP aims to adopt a human resources-driven strategy for economic development, it could draw inspiration from the United States, a global leader in this field.

As both entities push forward with their plans, the success of their initiatives will depend on clear, actionable strategies and a commitment to addressing the root causes of unemployment and labour rights issues in Bangladesh. The coming months will reveal whether these efforts can translate into meaningful change for the nation's workforce.

The Workforce Innovation and Opportunity Act (WIOA) is the principal workforce and employment legislation in the US, championed by both the Republican and Democratic parties. WIOA was passed by President Barack Obama as the replacement of the older Workforce Investment Act of 1998 instated by Bill Clinton, who utilised human resources strategies in order to improve productivity and opportunities for job seekers.

WIOA prioritises investments into youth job training in emerging fields such as tech or renewable energy, higher secondary certificates, and additional support services. The measures have greatly increased the competitiveness of job seekers and filled labour shortages across all industries. Laws like WIOA can serve as a model policy for political parties to run on to address the chronic understaffing problem that employers in Bangladesh face as well. 

Beyond legislation, there exist entities such as the US Small Business Administration, which provides affordable loans for new entrepreneurs, and economic development corporations (akin to the Bangladesh Investment Development Authority), which oversee private-public sector partnerships. 

The BNP administration during 2001 to 2006 did undertake some similar schemes through the expansion of vocational training programs, an increase in women-owned small businesses, and the passage of the Labour Act of 2006. 

The party certainly has the experience; the shortfall lies in the incremental gains from those accomplishments and the lack of long-term consensus building like we see with WIOA in the US. In addition, the BNP's larger historical commitment to privatisation and deregulation poses scepticism for their willingness to pivot to demand-centred policies that Vision 2030 so prominently displays.

For Bangladesh to replicate the success of WIOA, a sustained, bipartisan approach to workforce development—coupled with robust institutional support—will be essential. The challenge lies not only in crafting effective policies but also in fostering long-term collaboration and ensuring that initiatives translate into tangible, widespread benefits for the workforce.

Both the interim government and the BNP are steadfast in their principled approaches to employment reform, but their reluctance to embrace a more open-minded perspective is limiting their potential impact. 

While they focus heavily on industries like manufacturing and hospitality, they are overlooking the growing importance of the professional sector, which is increasingly attracting young job seekers. This narrow focus has left Bangladesh struggling to modernise its workforce, despite the availability of proven blueprints and successful labour market initiatives from around the world.

There is a wealth of innovative job-creating strategies and policies—such as the US's Workforce Innovation and Opportunity Act (WIOA)—that could serve as valuable models. Yet, neither the interim government nor the BNP seems to be drawing from these examples or prioritising them in their agendas. This missed opportunity is holding back the country's ability to address its employment challenges effectively.

The current momentum toward revamping Bangladesh's employment and labour policies is promising, but both the interim government and political parties must do more to design and communicate their plans effectively to the public. The labour market has undergone significant changes over the past two decades, and addressing today's challenges requires forward-thinking, proactive, and creative policymakers who understand the evolving landscape.

Sketch: TBS

Aamer Tahseen is a New York-based writer and columnist who has previously published for The Business Standard, The Fordham Undergraduate Research Journal, and Amendo.com. He holds a BA from Fordham University. 

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.