Inclusive growth: Gender equality and economic development in Bangladesh’s RMG sector - why aren’t there enough women in leadership?

Flip through any magazine or coverage of Bangladesh's RMG sector, and you'll inevitably spot a smiling woman—representing the heart and soul of the industry. Yet, the lived experiences of these women tell a different story—one where their representation on factory floors and in leadership roles is steadily shrinking.

The ready-made garments (RMG) sector has been the driving force behind Bangladesh's economic rise, propelling the country to become the world's second-largest garment exporter. Women have been at the heart of this success, making up 80% of the workforce in the 1980s. Fast forward to today, and that figure has dropped to just 53.65% (Jenns, 2023). The situation is even more concerning in leadership, with only 9% of managerial roles held by women between 2010 and 2018 (Uddin, 2021).

This raises a crucial question: Why, after contributing so much to the sector's growth, are women still not moving up the ladder? Societal norms, family expectations, and organizational barriers have created a glass ceiling, preventing women from reaching their full potential. To truly unlock the sector's power, we need to break down these barriers and open the door for women to step into leadership roles.

The double burden of work and home

We are accustomed to seeing women step away from their careers due to societal and familial expectations that confine them to homemaker or caregiver roles. This reality is even more pronounced for women in Bangladesh's RMG sector, where many come from challenging socio-economic backgrounds, making it harder for them to break free from these traditional constraints. Cultural norms emphasise women's responsibilities within the household, making it difficult for them to maintain formal employment.

Factors like family size, young children, or elderly dependents, as well as household resources, heavily influence women's labor market participation. They are often tasked with balancing full-time jobs with domestic duties, which limits their ability to work longer hours or pursue career advancement. Power dynamics within households further compound these challenges, with husbands often holding decision-making authority over their wives' employment and mobility choices. A study titled Unpaid Care Work: Perspectives of Employers and Workers in the RMG Sector found that 79% of female workers who left the apparel sector did so to care for their families (The Business Standard, 2023).

Additionally, women in supervisory roles face the challenge of working longer hours without receiving overtime pay, leading many to prioritize family over career advancement. Many workers retire early, transitioning to roles like household help or cleaners. (LightCastle Partners, 2024). As societal expectations place caregiving responsibilities firmly on women, they often perceive a comparative advantage in fulfilling these roles rather than investing time and energy in career progression. This choice is largely driven by the lack of financial incentives for additional work hours, further solidifying the perception that meeting family and social expectations outweighs pursuing professional growth.

Workplace challenges: Where gender dictates roles

The RMG sector in Bangladesh is deeply entrenched in gender biases that continue to perpetuate systemic inequality. Women are often given roles that society deems "appropriate" for their gender, like sewing and quality control, while higher-paying, skill-intensive positions such as cutting and finishing are predominantly reserved for men. This isn't just tradition but a reflection of systemic practices that undervalue women's potential.

Ironically, technological advancements, which could level the playing field, have only widened the gap. A 2023 GIZ study highlights this, with one respondent noting, "Women are falling behind not because they can't use new technologies, but because they are denied the opportunity to learn the skills." Domestic responsibilities and workplace structures that don't support women's growth are key contributors to this lack of access. On top of that, societal perceptions often view women as less capable of mastering technology—an attitude also prevalent among factory managers. Instead of seeing technology as a tool for empowerment, it's seen as an obstacle to women's progress.

Biased Promotion practices only reinforce these biases. Despite proving themselves capable—or even superior—women are often passed over for leadership roles in favor of men, who are seen as natural leaders. The ripple effect of these biases is profound. By denying women access to higher-skilled, better-paying roles, the sector misses out on diverse perspectives and fresh ideas, while reinforcing a cycle of economic inequality and limiting women's upward mobility.

Health and safety: A compounding barrier

The integration of AI and automation, as projected by McKinsey, is expected to disrupt about 15% of the global workforce, replacing low-cost labor with superior precision and efficiency. In the garment industry, this technological transformation is further complicated by global pressures for sustainability and improved worker welfare. For women in the Ready-Made Garment (RMG) sector, these challenges intersect with systemic barriers like societal expectations and workplace biases, creating a multi-layered crisis.

The harsh realities faced by female workers in Bangladesh's garment sector go far beyond the physical demands of their jobs. Many endure verbal abuse, harassment, and grueling hours, often without sufficient breaks or access to clean facilities. These poor working conditions exacerbate existing inequalities, pushing women further into marginalization. The lack of maternity leave and healthcare services forces many to retire early or transition into informal, lower-paying jobs. The physical toll of long shifts in poorly ventilated, brightly lit factories contributes to chronic health issues like anemia, reproductive health problems, and persistent fatigue. With little access to nutritious meals, clean water, or proper breaks, many women face severe health risks, which limit both their professional growth and their ability to sustain employment in the sector.

Pregnant workers are particularly vulnerable, often facing dismissal or being pushed into unpaid leave, exacerbating the challenges they face. The lack of support for menstrual and maternal health further hinders their ability to continue working. In addition to these physical strains, female workers are frequently subjected to verbal abuse and harassment from supervisors and male colleagues. One respondent recounted, "One day, I came to the factory half an hour late. My supervisor was mad and shoved me. He even lifted his hand to hit me" (Datta, 2024). Such incidents highlight the systemic power imbalances and the hostile work environment that undermine women's confidence and prevent them from advancing in their careers. Until these issues are addressed, the potential of female workers in the garment sector will remain stifled.

The missing infrastructure: Daycare facilities

Childcare remains a significant barrier for working mothers in Bangladesh's garment sector. While the Bangladesh Labour Act of 2006 mandates daycare facilities in factories employing 40 or more female workers, only 23% of factories comply (The Business Standard, 2021). This lack of infrastructure forces women into difficult choices—either leave their children in unsafe conditions or exit the workforce altogether. As Nazma Akter, Executive Director of Awaj Foundation, highlighted, many working mothers are forced to send their children to villages after the breastfeeding stage, depriving them of proper nutrition and increasing their risk of abuse (The Business Standard, 2021).

This disruption severely hampers early childhood development, as children miss out on the essential care and nurturing for their cognitive growth during this vital stage. The absence of daycare options not only endangers the welfare of children but also significantly limits women's career opportunities. By pushing capable workers out of the workforce, the sector diminishes its own talent pool and stunts its potential growth.

RMG under women's leadership

Bangladesh's ready-made garments (RMG) sector is underutilizing a vital resource—women in leadership roles. Since women have long been the backbone of the industry, their leadership could significantly enhance its potential. They possess a deep understanding of the sector and have relied on it for their livelihoods, giving them unique insights and a vested interest in its success. Studies have repeatedly shown the measurable benefits of gender diversity in leadership. For instance, a McKinsey & Company report reveals that a 10% increase in gender diversity is linked to a 3.5% rise in earnings before interest and taxes (EBIT), highlighting the tangible financial advantages of inclusive leadership. Women's leadership brings unique traits and perspectives that are particularly valuable for the RMG sector.

Research suggests that women leaders often champion issues such as gender equality, the elimination of workplace harassment, and the provision of parental leave and childcare, all of which can foster more equitable and supportive workplaces (Oxford Academic, 2022). These traits are essential in addressing systemic challenges in the sector, such as gender discrimination, limited skill development opportunities, and poor working conditions.

From a broader perspective, women's economic empowerment drives transformative societal change. According to the United Nations Development Programme (UNDP), when women gain access to paid work, it boosts household well-being and catalyzes national economic growth, contributing to improved Human Development Index (HDI) outcomes in education, healthcare, and living standards (Klasen, 2018). Similarly, UN Women underscores the multiplier effect of gender-equitable income distribution, noting that when women control financial resources, they are more likely to invest in their families' education and health, creating long-term developmental benefits (UN Women, 2021).

It is evident that the Bangladesh RMG sector stands to benefit greatly by breaking gender stereotypes and fostering an environment that supports women in leadership roles. Addressing the systemic barriers women face and embracing inclusive leadership will not only boost the sector's economic performance but also contribute significantly to sustainable development and societal progress. These changes are long overdue, and the potential for impact is immense.

Promoting gender equity in the apparel sector

Women's active participation in the workforce, including in the apparel sector, has contributed to positive socioeconomic outcomes, highlighting the need for policymakers to take affirmative action. The recent decline in women's participation in apparel manufacturing demands urgent attention, particularly as automation becomes more prevalent in production processes. Increased technology adoption has been identified as a key factor contributing to this decline in women's participation in the sector, warranting targeted interventions to address the issue.

The role of buyers

Buyers have a significant role to play in promoting gender equity in the apparel sector. Encouraging partner factories to increase women's participation—both at the worker and managerial levels—can create systemic change. Mechanisms to reward gender-inclusive factories, such as allocating higher order volumes or offering better prices, can incentivize factories to prioritize gender equity.

Affirmative actions by factory owners

Apparel factory owners must adopt proactive measures to promote women to supervisory and managerial roles. Rethinking workplace culture to attract talented women at the mid-management level is essential. Partnerships with academic institutions such as the Asian University for Women (AUW), BUFT, and BUTEX can ensure a steady pipeline of women talent at entry levels. Additionally, strong-performing women supervisors can be supported through scholarships for higher education and inclusion in leadership development programs. These efforts can be further structured and formalized through collaboration with trade associations and with support from development partners.

Government interventions

The government should prioritise providing healthcare and social safety net programs for apparel workers. Young mothers in the workforce often lack adequate healthcare and childcare support, leading to premature dropouts. Reducing this attrition through enhanced support systems, such as childcare facilities and social safety nets like pensions, can ensure financial stability for workers exiting the workforce. Furthermore, providing sanitary products to women workers can improve their well-being. Factories with higher participation of women in both worker and management roles could be incentivized through tax rebates and formal recognition programs.

Sustainable financing for gender equity

Commercial banks, with active support from the central bank, can design customized sustainable financing solutions to encourage factories to adopt gender-inclusive practices alongside green production methods. A notable example is a leading multinational bank's Gender Equity Index Loan, which offered reduced interest rates to DBL Group based on its commitment to increasing the number of women supervisors. Scaling up such innovative financing solutions, coupled with active central bank policy support, can significantly promote gender equity across the apparel sector.

By combining efforts from policymakers, buyers, factory owners, financial institutions, and development partners, the apparel sector can achieve greater gender inclusivity, thereby driving socio-economic progress while addressing the challenges posed by automation and shifting workforce dynamics.

From left: Zahedul Amin, Anika Tahsin Haque Katha and Md Mostafa Sorower. Photo: Collected

Zahedul Amin, co-founder & director at LightCastle Partners; Md Mostafa Sorower, Thematic Working Groups Lead at The Asia Foundation, Anika Tahsin Haque Katha, Communication and Outreach Intern at The Asia Foundation