Abstract:
An innovative policy experiment in Cambodia links improvement of workers' rights with increased orders and market access for the products of the country's garment factories. The policy originated with the US-Cambodia Textile Agreement, which awarded Cambodia higher garment export quotas into the US market in return for improved working conditions and labor regulations. It has continued even after the expiration of the global garment quota system at the end of 2004. The agreement's effectiveness has depended on the International Labor Organization, acting as a compliance monitor and government intervention, preventing some apparel producers from free-riding on others' improvements.