United Nations Development Fund for Women (UNIFEM) East and Southeast Asia

[T]he ‘success’ of trade policies must be evaluated .... in terms of whether they further desired social outcomes such as equity, social inclusion, freedom from poverty, development of human capabilities, protection of human rights, democratic governance and environmental sustainability (Cagatay 2001: 3).

In 2005, quotas which have protected the garment sector will end and Cambodia will join the WTO. While predictions about the future of the garment industry vary it seems likely that some factories will close, while others will consolidate or move off-shore. Large-scale redundancies are predicted by some commentators, affecting up to 50,000 workers.

The garment sector is the main source of paid employment for Cambodian women with an estimated 180,000 female employees who support families of 4-9 people each. An estimated 1.5 million people are supported by the garment sector, including in informal sector jobs that support the industry. Most garment workers are young women from rural areas. Risks for women workers of changes in the industry differ to those faced by male employees, and include entry into sex work, migration within Cambodia and overseas, and lack of access to skilled employment as the sector restructures.

The RGC and donors have introduced large scale interventions designed to improve the competitiveness of the garment industry, including by reducing costs and increasing productivity. However, the extent and pace of these reforms is still uncertain.

In addition, some donor and NGO initiatives are in place to support workers affected by the changing trade environment, including pilot projects designed to support women workers through the transition period.

UNIFEM, through the Gender and MDG project, commissioned a paper to examine the gender specific impacts of trade liberalization in the garment sector, review current and planned interventions to determine what else might be needed to support women workers, and develop additional indicators under MDGs 1 and 6.

Desk research and consultations with key agencies identified that in a worst-case scenario, up to 50,000 workers and 20,000 households may be affected by changes in the garment sector. Income support and skill development is required to support women workers through the transition period, and enable those made redundant to gain employment in other sectors or in more skilled jobs in the garment industry if these open up.

There is considerable interest and activity among NGOs, donors and the RGC in the future of the industry, and in support for women workers. Initiatives targeting women workers include Government and donor projects designed to deliver skills training, create opportunities for alternative employment, develop income support and assist women to access micro-credit.

However, many current and planned initiatives targeting women garment workers are embryonic or small scale in nature. Critical gaps include industry-wide initiatives to deliver income support and social safety nets, access to training and accreditation of current skills for workers, and opportunities for alternative employment. Increased national investment in SME development for women, and in vocational education for working-age women is also required.

In addition, research is required to develop more accurate data about the size and composition of the informal sector that supports the garment industry. Other potential interventions include a joint initiative between the Ministry of Women and the Ministry of Labor and Vocational Training to create linkages between the WDCs and Provincial Training Centres and promote vocational education for working age women (for example by piloting recognized prior learning for women garment workers); a social marketing campaign to promote women’s economic contribution and counter the stigma attached to employment in the garment sector; and a project to re-train women workers to enter the tourist industry.

The impact of changes to the garment sector, and the way these are managed and any negative affects ameliorated will be a critical test case for Cambodia in poverty reduction, and gender equity. Specific indicators are required to track and evaluate the impact of these changes and any planned interventions to support female garment workers on gender and development and poverty reduction in Cambodia. Key indicators required to track and map these impacts include the exit destinations of garment workers and poverty levels of garment sector workers and their households; poverty levels of 15-24 year old women and their households, and their employment status; a more detailed breakdown of women in self-employment; female participation rates in formal and informal vocational education, and internal and external migration rates for women seeking work.

Further detail about suggested interventions and possible indicators is included in the body of this report.

Posted: 22 November 2004

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