The ongoing geopolitical tensions in the region have severely impacted Jordan's garment industry, particularly following the Red Sea blockade initiated by Houthi attacks on November 19, 2023. This blockade disrupted crucial supply chains that the industry relies on for imports from Asia and exports to the US. In April 2024, Bangladeshi women working in Jordan's garment factories were forced to take leave due to empty warehouses, highlighting the immediate effects of the blockade on labor and production. [8f52ef65]
The garment industry in Jordan, which was established through US trade agreements following the 1994 peace accords, has proven vulnerable to external shocks. As the blockade continued, US brands began shifting their orders away from Jordan, exacerbating the crisis and leading to deteriorating working conditions for migrant workers. Reports of unpaid overtime and job insecurity have surfaced, reflecting the precarious nature of employment in this sector. [8f52ef65]
In Myanmar, the ongoing civil war has similarly devastated the garment industry, with workers like Wai Wai earning just over US$3 a day while producing for international brands such as Adidas and H&M. Since the military's takeover in 2021, rising food prices have forced many workers to skip meals to support their families. The apparel industry, which generated over US$3 billion in exports last year, faces significant challenges due to high operational costs and widespread rights abuses. Major brands like Zara have exited the market, while others like H&M are phasing out operations due to the deteriorating situation. [77e9491b]
The military's conscription law, enforced in February 2024, has heightened fears among workers, particularly women, who are now included in the draft. Reports indicate widespread violations of workers' rights since the coup, with union activities banned and leaders arrested. The situation for garment workers in Myanmar exemplifies the broader economic crisis, where the military junta's coercive control continues to stifle growth and exacerbate poverty. [77e9491b]
In Yemen, the conflict between Houthi rebels and the internationally recognized government over control of banks has compounded economic woes, leading to confusion over currency and eroding the value of the riyal. Yemenis in Houthi-controlled areas have been unable to withdraw money from bank savings accounts, leading to protests and further destabilizing the economy. [3252c9dc] [70f1b54c]
Meanwhile, in Misrata, Libya, businesspeople are struggling to obtain letters of bank credit, with funds suspended in the banking system despite the payment of required fees. The Head of the Misrata Chamber of Commerce has expressed concern and has demanded action from the Central Bank, threatening to escalate their actions if the situation does not improve. [3c320994] [17d81eb8]
The impact of the Gaza war on the Egyptian economy has also been significant, leading to a loss of tourism, reduced Suez Canal revenues, and rising wheat prices. The Egyptian currency has slipped against the US dollar, putting additional pressure on the economy. The International Monetary Fund (IMF) has provided a bailout loan to Egypt, but public frustration remains high due to the government's close ties with Israel and the ongoing economic challenges. [17d81eb8]