Navigating the gig labyrinth
Across Bangladesh, smartphones buzz with activity—a testament to the digital revolution transforming landscapes and livelihoods. One consequence of this rapid change is the gig economy, a dynamic web of online platforms like Uber, Upwork, and their Bangladeshi counterparts, Chaldal and Pathao, connecting a growing pool of tech-savvy individuals with flexible work opportunities. From grocery delivery to website coding, these platforms offer the allure of being your own boss and setting your own schedule. However, the promise of freedom in this digital marketplace can mask a hidden reality—a gamble with financial security for those who enter the gig economy's ever-spinning roulette.
On the bright side, the gig economy empowers individuals. By dismantling geographical and time constraints, it opens the door for anyone with a smartphone and internet access to participate in the marketplace. Bangladesh boasts an estimated 650,000 active online freelancers, the second-highest number in South Asia. This translates to economic opportunities for a segment of the population often facing unemployment, particularly women and youth. A study by BRAC revealed that 57 percent of female gig workers reported increased financial autonomy, a testament to the inclusivity this model can offer. Moreover, another 2021 study by the International Labour Organization found that 70 percent of Bangladeshi gig workers are students, supplementing their education with income and gaining valuable work experience. The flexibility of gig work allows them to balance responsibilities and earn around existing commitments, fostering a sense of agency and control.
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However, the gig economy's siren song often drowns out the warnings of financial insecurity. Gig workers, unfortunately, are often classified as independent contractors, stripped of the safety net of traditional jobs. In Indonesia, for example, a recent study showed that only 5 percent of gig workers have access to social security. This leaves them vulnerable to income fluctuations, accidents, and illness. Similarly, a 2023 World Bank report found that only 12 percent of gig workers globally have health insurance. Here in Bangladesh, a Fairwork report revealed that over 40 percent of surveyed delivery riders suffered injuries while working, yet lacked accident insurance coverage.
Further complicating matters, the algorithms, that are essentially sets of rules that automate decision-making on these platforms, act as the invisible puppeteers, dictating work allocation and potentially perpetuating existing inequalities in this digital dance floor. A 2022 International Labour Organization report found a concerning trend: female gig workers in developing countries are 20 percent more likely to face algorithmic bias, receiving fewer tasks and lower pay. This digital discrimination deepens existing inequities.
To truly unlock the gig economy's potential, Bangladesh must walk a tightrope—maximising its benefits while minimising its pitfalls. A two-pronged approach is the only way to ensure the former. Firstly, regulatory frameworks must be established to ensure fair treatment and protect workers' rights. This includes setting minimum wage standards, providing access to social safety nets like micro-insurance schemes, and preventing algorithmic discrimination through platform transparency and accountability measures. Drawing inspiration from countries like India, which is considering introducing social security benefits for gig workers, Bangladesh can develop its own model for worker protection.
Additionally, Bangladesh can invest in upskilling and reskilling initiatives, to equip its gig workers to become confident choreographers of their own digital destinies. This includes training in areas like digital literacy, coding, and online marketing. Similar to Thailand's "Digital for Everyone" programme, which has equipped over 20 million citizens with digital skills and Indonesia's "Digital Talent Indonesia," which has trained over 100,000 individuals in high-demand digital fields. Bangladesh can invest in digital literacy training, particularly targeting rural areas and marginalised groups to bridge the digital divide to ensure that every worker has a chance to waltz with the gig economy's potential.
Nevertheless, it is also important to consider that the true merit of the gig economy lies in its potential to fuel the wider engine of Bangladesh's development. Considering a 2023 World Bank report, it is estimated that the gig economy contributed 5 percent to Bangladesh's GDP in 2020, a figure projected to double by 2025. This translates to not just improved livelihoods for individual workers, but a significant infusion of capital into the national economy. Moreover, this growth isn't limited to established platforms—a 2022 study by the Information and Communication Technology (ICT) Division revealed that over 1,000 new gig platforms emerged between 2020 and 2022, highlighting the dynamism and entrepreneurial spirit the gig economy fosters.
The gig economy isn't a magic solution, but it can be a powerful tool for Bangladesh's development if managed wisely. We must recognise both its benefits and drawbacks. To unlock its full potential, we need proactive solutions to address challenges, like skills training and fair regulations. By embracing both the promise and the perils, Bangladesh can transform the gig economy from a labyrinth of uncertainty into a well-lit path. Thus, it can be ensured that the gig economy isn't just a side hustle, but a potent catalyst for a force for inclusivity, empowerment, and national economic prosperity, lifting boats across the digital tide.
Nahian Rahman is research associate, Bangladesh Institute of Governance and Management (BIGM).
Views expressed in this article are the author's own.
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