Outsourcing and the Dhaka Disaster
BY BRYAN WALSH
The collapse of a textile-factory building near Dhaka, Bangladesh, on April 24, which killed at least 400 people, is almost certainly the worst accident in the history of the global garment industry. But it's hardly the only one--especially in Bangladesh, which has capitalized on its ultra-low-cost labor force to build a $19 billion export industry. Just last November, a fire at another textile factory in Dhaka killed over 100 people--and was barely felt by the global clothing industry.
Will this time be any different? Bangladeshi workers hit the streets in force after the catastrophe, calling for the death penalty for the factory's owner, Mohammed Sohel Rana, who was arrested trying to flee the country on April 28. Rana's factory reportedly stayed open despite visible cracks in the building's foundation. Bangladeshi officials certainly deserve blame for not doing enough to enforce the country's labor and building standards, weak as they might be. But Western brands and consumers have benefited from cheap clothing made in Bangladesh, where the minimum wage is $36.50 a month, and they share some responsibility for the carnage. International retailers can and should do more to put pressure on the Bangladeshi government and local manufacturers to improve worker safety. Bangladesh has benefited enormously from the growth of its textile industry, which provides needed jobs, especially for rural migrants. But no job--and no $3 T-shirt--is worth dying for.
THE NETHERLANDS
'Well, at least one person got
a new job.'
INGE BOSMAN, a 38-year-old Amsterdam resident, after Willem-Alexander (right, with Queen Maxima) was crowned the Netherlands' first King since 1890; E.U. estimates put Dutch unemployment at 6.4%, up from 5% in March 2012
DATA
OBAMA'S GREATEST GIFTS
The U.S. President routinely receives luxe presents from foreign leaders, which are turned over to the National Archives. Here are some of the priciest from 2011, according to a just-released list by the State Department.
Daum blue mask sculpture, from Ali Bongo Ondimba, President of Gabon
EST. VALUE: $52,695
Large printed photograph by Vik Muniz, from Sergio Cabral, governor of Rio de Janeiro
EST. VALUE: $40,000
Bronze statue of Abraham Lincoln, from Hu Jintao, President of China
EST. VALUE: $9,800
Black golf-accessory bag made by Hermès, from Nicolas Sarkozy, President of France
EST. VALUE: $7,750
ENRICO LETTA
Four Biggest Challenges Facing
Italy's New Government
After two months of political stalemate, Italy's new Prime Minister, Enrico Letta, was finally sworn in on April 28. Here's what the anti-austerity leader is up against.
1. FRACTURED LEADERSHIP
Italy's two major parties have spent 18 years at war. Letta's Democrats--who disagree on crucial issues like how to reboot the economy--united only in order to beat Silvio Berlusconi's People of Freedom Party.
2. PRECARIOUS ALLIANCE