Textiles from Swat valley: A strategy to make ROZ’s work

The idea of Reconstruction Opportunity Zones (ROZ's) was proposed by Mr. Obama in March 2009 to provide duty-free access for Pakistani textiles and apparel produced in certain remote areas bordering Afghanistan. At that time Pakistan's textile industry strongly opposed this idea because of the security situation and also because major export products were not included. No work has been done on ROZ's so far but now with the success of army operation in Swat, there is a good chance to bring about employment opportunities to the poor people who are most affected by terrorism.

Here is how it can be done:

Textile is a labor intensive business and by setting up small scale stitching units in Swat will help employ the poorest of the people especially the women. Yet another way to make this work is linking these stitching units with local schools where vocational training is provided to the children. In this way, the stitching units will be ensured a trained labor force. Also, by providing one time meals at schools, the female workforce will have an additional incentive to send their children to school.

Role of USAID:

USAID can play a very important role of facilitator, implementer and monitor in setting of ROZ's in Pakistan. As a facilitator, it can encourage joint ventures between US textile importers and Pakistani's textile manufacturers. As an implementer, USAID can offer ready-made projects to the joint venture companies. Also, by ensuring a registered workforce will speed up setting up of ROZ's. As a monitor, USAID can monitor and verify exports from ROZ's and also ensure that ROZ's are working according to the laws of International Labor Organization (ILO).

Marketing strategy:

Swat valley is now world famous as it was here that the march of Taliban was halted. Now a brand can be developed by the name "Textiles from Swat valley" and a marketing campaign can be devised for consumers who will buy these products knowing that their money will go to the people who are directly affected by terrorism.

This strategy can very well enhance ties between America and Pakistan and if successful, it can also be replicated in Afghanistan.