Social Capital and Its Impact on Socio-Economic Development and Vulnerability Reduction of Female Workers in Bangladesh: A Study on Readymade Garments Industry

Abstract

The Ready-Made Garments (RMG) sector plays a significant role in the socio-economic transformation of women in Bangladesh. This study examines the influence of social capital on socio-economic empowerment and vulnerability reduction among female garment workers. The research adopts a mixed-methods approach combining quantitative survey data, qualitative case studies, and Key Informant Interviews (KII) to provide a comprehensive understanding of structural, relational, and cognitive dimensions of social capital and their impacts on workers’ empowerment and vulnerability status. The quantitative findings reveal that structural social capital among female garment workers is strongly developed, particularly in terms of workplace communication, information sharing, and institutional connections. However, participation in formal organizations such as labour unions and welfare groups remains comparatively weak. Relational social capital shows high levels of trust, cooperation, and mutual support among workers, especially at the peer level, although trust in management varies across factories. Cognitive social capital reflects shared values, teamwork, and sense of belonging, but emotional attachment and organizational concern are comparatively less consistent. The quantitative results also indicate moderate to high socio-economic empowerment, particularly in income, mobility, decision-making ability, and social recognition. However, financial stability, savings, and long-term economic security remain limited. Vulnerability levels are generally low to moderate, although workload pressure, forced overtime, and job insecurity persist as major challenges. The qualitative case study findings further support the positive role of social capital in enhancing socio-economic empowerment. Structural social capital shows the strongest influence through workplace networks, participation, and access to support systems. Relational social capital contributes to trust, cooperation, and emotional support, while cognitive social capital strengthens shared understanding and teamwork. Despite these positive outcomes, empowerment remains uneven due to management practices, workload pressure, communication gaps, and limited recognition. Vulnerability reduction is partial, with improvements in workplace safety, communication, and support systems, but continued risks related to job insecurity and excessive workload. xiv | P a g e The Key Informant Interview (KII) findings also indicate moderate socio-economic empowerment among female workers. Improvements are observed in living conditions, healthcare access, educational support, skill development, and decision-making ability. However, challenges such as low wages, limited savings, poor housing conditions, and social stigma remain. The KII results further show that structural social capital demonstrates the highest positive influence, followed by relational social capital, while cognitive social capital remains comparatively weaker. In terms of vulnerability, improved safety measures, institutional support, and cooperative workplace relationships contribute to reduced risks. Nevertheless, heavy workload, verbal abuse, employment insecurity, and inconsistent management practices continue to affect workers’ wellbeing. Overall, the study concludes that social capital significantly contributes to the socio-economic empowerment and vulnerability reduction of female RMG workers in Bangladesh. Structural social capital plays the most prominent role, followed by relational and cognitive dimensions. While employment in the RMG sector enhances women’s income, confidence, mobility, and social status, full empowerment is constrained by economic instability and workplace pressures. Strengthening workplace relationships, improving management practices, expanding participation opportunities, and ensuring fair working conditions are essential for enhancing social capital and achieving sustainable empowerment and vulnerability reduction among female garment workers.