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IFC and ILO Team Up to Support Jordanian Clothing Exports Through Improved Labor Standards

Submitted by: International Finance Corporation

Categories: Socially Responsible Investing, Finance

Posted: Feb 07, 2008 – 01:05 PM EST

 

WASHINGTON D.C. - February 7, 2008 — Jordan's Minister of Labor, Basem Khalil Al-Salem, today announced the launch of Better Work Jordan, a project designed by the International Labour Organization and IFC, a member of the World Bank Group, that will help improve working conditions for more than 54,000 workers in the country's apparel industry and boost the sector’s international competitiveness.

Al-Salem gave a presentation entitled Labor Administration and Compliance in Jordan: A Multi-stakeholder Collaboration, at the Center for Global Development event. He outlined actions by the Jordanian government to improve labor administration and compliance, which include the Better Work Jordan project. He said, "The Jordanian government is proud to be supporting the Better Work initiative. The strength of this initiative is based on our shared values and the principle that providing decent working conditions and producing quality products at competitive prices go hand-in-hand."

Better Work Jordan is the first of a number of country-level projects to be launched by the global Better Work Program of the ILO and IFC, which combines ILO expertise in labor standards with that of IFC in private sector development and brings together local enterprises, international buyers, governments, and workers' organizations to improve labor standards and competitiveness in global supply chains. The program develops global tools and country projects.

The $4.7 million project in Jordan is financed by U.S. Agency for International Development, the Jordanian Ministry of Labor, and some of the largest international buyers of apparel produced in Jordan.

Daniel Rubinstein, U.S. Charge d'Affaires, praised the inclusion of private sector stakeholders in the discussions. He said, "Through sustained and coordinated efforts we can ensure that Better Work will be successful, and that Jordan will achieve its goals of meeting the highest standards of labor welfare for local and migrant workers."

Mike Essex, IFC Director for the Middle East and North Africa, said, "We are excited about the Better Work program in Jordan. IFC's experience shows that there is a clear and strong business case for companies to manage their environmental and social risks effectively. The project is an opportunity to demonstrate that responsible labor practices have the potential to open export markets."

In 2007, the global Better Work team held a series of consultative meetings in Amman to design the Jordan project. Nada Al Nashif, ILO Regional Director for Arab States, said, "Through the project, stakeholders are working together to find solutions for challenges in the country's export apparel industry. We are confident that we will see significant and sustainable improvements in labor standards, as well as a positive impact on the industry’s economic performance."

A recent IFC survey shows that international apparel buyers rate labor standards as one of the most important business environment factors in selecting a supplier country or factory.

Better Work Jordan combines independent enterprise assessments with advisory and training services to support practical improvements through workplace cooperation. It is a voluntary, industry-based scheme designed to work at the enterprise level. The main components are independent enterprise, training and capacity building, and stakeholder engagement and sustainability.

Better Work Jordan will initially be managed by ILO, and a new Jordanian entity will take over its operations within five years.

For more information, visit www.betterwork.org, or contact:

About IFC

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.

About the ILO

The International Labour Organization (ILO) was established in 1919 by the Treaty of Versailles and became the first specialized agency of the United Nations system in 1946. Its work in setting and monitoring international labor standards has provided the framework for national labor law and practice in virtually all countries. The ILO's total budget for 2006-2007 was just over $900 million, including a regular budget of $594 million, plus $306 million in extra-budgetary funds associated with special technical cooperation projects. For more information, visit www.ilo.org

For more information, please contact:

Katia Theriault International Finance Corporation
Phone: 202-458-9704
Website: www.ifc.org
Wafa' M. Aranki IFC PEP MENA
Phone: 962-6-5678050 ext.263
Lucie Giraud International Finance Corporation
Phone: 202 458 4662
Phone: 41 22 799 7912

For more from this organization:

International Finance Corporation

 

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