State of poverty and labor market

This chapter describes the reasons why there is poverty in the Muslim world and how it is related to the low wage rate. Most of the members of organization of Islamic conference (OIC) countries are producers of agricultural and mining products. Their industrial sector generally produces traditional commodities by using ancient technology. Members of OIC countries try to increase their earnings by increasing the skill and education of their workers. OIC countries also make efforts to reduce poverty through their human development program. Education provides a base for eliminating poverty, promoting jobs and growth. Education breaks the vicious cycle of poverty and saves the future generation from falling into poverty. Among the OIC countries, Bangladesh and Pakistan are exporters of garments. Their comparative advantage is due to the low wage rate. In Bangladesh, the minimum wage for an unskilled worker in the garment industry is less than US$70 per month.