Ten years ago, on 24 April 2013, a commercial eight-storey building that housed several textile factories in the suburbs of Dhaka (Bangladesh) collapsed. Rana Plaza collapsed on April 24, 2013, killing 1,134 and injuring 2,000 others, mostly women.
The worst industrial accident since 1984’s Bhopal gas leak, which killed over 3,000 people, was also the most deadly in modern textile history. The rubble trapped thousands of workers for days. Some died from dehydration or hunger while others were forced to drink urine.
It was built on top of a pond that had been filled in, using inferior materials. This meant it could not support heavy machinery. Four floors above ground were illegally added, further aggravating structural problems. Sohel Raa, the owner of the building, refused to change anything. Rana was under intense pressure from buyers who wanted to achieve delivery targets. He threatened to take away workers’ salaries (roughly 1300 baht a month) for failure to show up. The building collapsed in less than 90 seconds for those who were brave enough to enter.
Rana Plaza’s collapse is often dismissed as another case of corrupt governments and unregulated companies that the developing world faces. Western developed countries are just as guilty. Labels of top fashion and retail brands were scattered throughout the wreckage. Benetton Monsoon Mango Walmart Primark and other large retailers were identified to have purchased inventory at the building’s clothing factories.
If the dynamic of international trade didn’t fuel the desperate race for the bottom, as developing nations compete to attract foreign direct investment by multinational corporations, sweatshops like Rana Plaza wouldn’t exist. Lack of regulation in Bangladesh allows for low wages, exploitative conditions and working hours that can be compared to slavery.
Global supply chains that employ over 450 millions people in the world perpetuate this form of exploitation, and also help to hide its true nature. Multinational firms are able to evade labour standards by outsourcing their jobs to developing nations. They also deny workers the same rights and benefits as direct employees. This sleight-of-hand isn’t limited to developing countries. In the US, garment workers are also exploited. They can earn as little as US$1.58 an hour in Los Angeles. Amazon fulfillment centres are a prime example of precarious conditions at work and low wages in the tech sector.
The Rana Plaza collapse was widely condemned and morally outraged, including by Pope Francis. However, in the last ten years, very little has been accomplished to deal with the causes of this disaster.
Despite having more than 200 signed the 2018 renewal of the legally binding 2013 Accord in Bangladesh on Building and Fire Safety, Levi Strauss as well Gap, Walmart and Amazon have refused to join. In 2018, they chose to opt for the Alliance for Bangladesh Worker Safety. This was an alternative corporate option that is not legally binding.
Although the Rana Plaza Arrangement compensated the survivors and families of victims, it was similar to putting a scab on a gangrenous cut. Rana Plaza was not an isolated incident, but is a microcosmic example of abuse and exploitation inherent to global capitalism. In just a few years, countries in the Global South will be expected to break free from the colonial legacy and achieve centuries-long economic growth. Bangladesh’s economy has expanded dramatically since its independence in 1970, thanks to being the world’s second largest exporter of garments.
Adam Smith’s “invisible hand” must be regulated and redistributive policy implemented to achieve a more equitable distribution of resources and wealth. As a result of this power imbalance, the theory behind the global capitalist model is as insecure as a factory built on landfill. The system is beginning to crack, just as it did in the final days of Rana Plaza. Rising inequality and climate change are threatening the fragile foundation. Leonard Cohen once said, “There’s a crack everywhere.” This is how light enters. We will be wise if we do not overlook the cracks and see the light. ©2023 Project Syndicate