Enhancing Decent Work and Productivity on the Textile and Garment Supply Chains for Nepal’s LDC Graduation Project

Background

Nepal is set to graduate from Least Developed Country (LDC) status in 2026. While this transition will bring opportunities, the country is likely to face several challenges in the short term, including increased competition in international markets, a decline in aid flows, and the loss of international support measures (ISM). This could result in a 4.2% loss in exports (concentrated in textile and garment industries, where women represent most workers), and put at risk around 132,000 jobs by 2030. These risks affect women workers disproportionally (49% of losses), who are already largely in vulnerable employment in the informal economy and home-based work.

This could result in a 4.2% loss in exports, primarily in the textile and garment industries, where women make up the majority of the workforce. By 2030, around 132,000 jobs could be at risk. These risks disproportionately affect women workers, who account for 49% of the potential losses. Many of these women are already employed in vulnerable conditions within the informal economy and home-based work.

Objectives

The project enhances tripartite constituents' capacity to promote decent work, improve productivity in textile and garment supply chains, and address labour issues in trade and investment policies, supporting a smooth LDC graduation.

Outcomes and Outputs

Outcome 1: Constituents develop an integrated approach for decent work in the textile and garment supply chains (SCs) and have improved capacity to consider labour issues in Nepal’s trade and investment policies and agreements and prepare for LDC Graduation.

Output: 1.1 Constituents conducted and validated diagnostics studies of the opportunities and challenges for workers and economic units in the selected SCs, including the identification of the nature, causes and drivers of decent work deficits

Output: 1.2 Constituents designed and adopted an integrated action plan for decent work promotion on selected SCs.

Output: 1.3 Improved capacity of constituents on LDC graduation, trade-investment-employment nexus and their implications.

Output: 1.4 Trade and labour conditions monitoring systems enhanced.

Output: 1.5 Constituents conducted and validated diagnostics studies of the opportunities and challenges for enterprises in the selected SCs, including the identification of the barriers to growth, productivity-enhancing opportunities, and export capacity, particularly for women-led Small and medium-sized enterprises (SMEs).

Outcome 2: Constituents and market actors implement an integrated approach to promote decent work in the textile and garment supply chains, with a particular focus on the lower tiers of the supply chains and home-based workers.

Output: 2. Tripartite constituents implemented key actions from the integrated action plan to promote decent work in selected supply chains.

Outcome 3: Constituents have improved capacity to support the formalization of economic units and their workers in the textile and garment supply chains.

Output: 3. 1 Tripartite constituents’ implemented key actions to promote formalization in selected supply chains.

For further information please contact:

Prakash Sharma

National Project Coordinator

E: [email protected]