Macroeconomic Analysis of Bangladesh's Ready-Made Garments Industry The Ready-Made Garments (RMG) industry contributes to the Bangladesh economy in a distinctive manner. The last 20 years witnessed unparalleled growth in this sector, which is also the largest exporting industry in Bangladesh. It has attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. The industry plays a significant role in terms of employment generation. Nearly two million workers are directly and more than ten million inhabitants are indirectly associated with the industry. In addition to its economic contribution, the expansion of RMG industry has caused noticeable changes by bringing more than 1.12 million women into the workforce. Hence it is quite apparent that this sector has played a massive role in the economic development of the country. RMG’s contribution in terms of GDP is highly remarkable; it has reached 13 percent of GDP which was only about 3 percent in 1991. It also plays a pivotal role to promote the development of other key sectors of the economy like banking, insurance, shipping, hotel, tourism, road transportation, railway container services, etc. One of the key advantages of the RMG industry is its cheap labor force, which provides a competitive edge over its competitors. The sector has created employment opportunities for about two million people of which 70 percent are women who mostly come from rural areas. Thus the industry helps in the country’s social development, women empowerment and poverty alleviation. Currently RMG earns the lion's share of foreign exchange earnings. INDUSTRY ANALYSIS The Readymade Garment (RMG) industry of Bangladesh marked the leadership of private enterprise and the country’s successful transition to a major export-oriented economy. The key products of this industry are Knit and Woven Shirts and Blouses, Trousers, Skirts, Shorts, Jackets, Sweaters, Sportswear and many more casual and fashion apparels. RMG industry has enjoyed an impressive rise from less than 50 factories in 1983 to over 3600 in 2006. Garments sector’s continual success can be attributed to the following: Quotas under Multi-Fiber Arrangement (MFA) in the North American market Preferential market access to European markets The country has a small textile industry, but the volume and quality of its output are unable to fully meet the demand of the garments industry. Most of Bangladesh’s garments exports are made from imported textiles. RMG exports have grown rapidly after extensive trade and other economic reforms were undertaken in the early 1990s.
Jane Collins’ book Threads: Gender, Labor, and Power in the Global Apparel Industry is a presentation of the evolution of the industrial globalization of the apparel industry. Although the book presents some good information in regards to globalization of the apparel industry it is rather outdated now. However, this is due to the large number of campaigns bringing awareness to the problematic nature of sweatshops since this book was released. The book is heavily biased in regards to the presentation of the repressive nature of the apparel industry against women. This could have been the result of the expertise of the author making it hard to present a more balanced perception. However, the broad focus of the book makes it a good starting point for anyone who is looking to gain general knowledge into the apparel industry.
Linda Lim, a professor at the University of Michigan Business School, visited Vietnam and Indonesia in the summer of 2000 to obtain first-hand research on the impact of foreign-owned export factories (sweatshops) on the local economies. Lim found that in general, sweatshops pay above-average wages and conditions are no worse than the general alternatives: subsistence farming, domestic services, casual manual labor, prostitution, or unemployment. In the case of Vietnam in 1999, the minimum annual salary was 134 U.S. dollars while Nike workers in that country earned 670 U.S. dollars, the case is also the similar in Indonesia. Many times people in these countries are very surprised when they hear that American's boycott buying clothes that they make in the sweatshops. The simplest way to help many of these poor people that have to work in the sweatshops to support themselves and their families, would be to buy more products produced in the very sweatshops they detest.
The Global Apparel Manufacturing industry contains men’s, women’s, and children’s apparel. This industry includes manufacturers that purchase fabrics and make fabrics themselves with certain facilities. The key economic drivers of this industry are GDP of BRIC nations, Global per capita income, GDP, World price of cotton, and Global population. The industries that supply Global Apparel Manufacturing are Global Agriculture, Hunting, Forestry, and Fishing. The Demand Industries that feed off of Global Apparel Manufacturing are Global Wholesale and Retail Trade, Global Department Stores, and General Merchandise Stores. The main activities of the Global Apparel Manufacturing industry are winter clothes
“"Whoever Raises their Head Suffers the Most" | Workers' Rights in Bangladesh's Garment Factories.” Human Rights Watch, 18 Sept. 2017, www.hrw.org/report/2015/04/22/whoever-raises-their-head-suffers-most/workers-rights-bangladeshs-garment.
“Sweatshops Are the Norm in the Global Apparel Industry. We’re Standing up to Change That.” International Labor Rights Forum. N.p., n.d. Web. 6 Feb. 2014. .
Globalization and industrialization contribute to the existence of sweatshops, which are where garments are made cheaply, because they are moving production and consumption of those cheap goods. Industrialization has enabled for global distribution, to exchange those goods around the world. They can also set apart the circumstances of consumption and production, which Western countries as mass consumers, are protected from of producers in less developed countries. These factories are usually located in less developed countries and face worker exploitation and changes in social structures. Technological innovation allows for machines to take the place of workers and do all the dirty work instead of workers doing hours of hard work by hand.
The correlation of expansion in Footwear International fell within the same time constraints as Bangladesh’s political history. As power transferred in 1971, the Manager Director of the company was recognized as being an integral part of the independence movement of Bangladesh. Two years following President Ershad gaining office, Footwear Bangladesh seen as the number one growth potential within Footwear International’s strategic plan. Sales were in excess of 10,000,000 pairs of footwear and gave the company 15% of the national market (L...
Did you know that many penurious children and families suffer from many things that America takes for granted? “The Real Cost of Cheap Fashion,” by Laura Anastasia and “The Real Cost of Your Phone,” by Rebecca Zissou show many readers how terribly many people are affected by this, and what a hinderance it is on their lives, but also what can be done to fix it.
Garment factories in the collapsed building are not H&M’s suppliers. But H&M is one of the largest buyers of garments from Bangladesh, owning 166 suppliers. After the disaster, global retailors, especially H&M, joined the safety plan as well as government pledged to raise wages for garment workers and
The shift to a free trade regime in the textile industry was good for Bangladesh. Bangladesh prospered when other economies were not t doing so well. The textile industry greatly increased causing it to become a major reason as to why the economic has continued to increase. Increasingly bring in billions and billions from exports between 2006 to 2012 like the book mentions.
From 2005 the textile segment has been made up of 2 companies, transforming raw materials into fabrics, from spinning to finishing and ennobling. Handicraft product quality and technological research development characterize this business segment which works with internationally recognized names of the apparel and fashion industry.
First is labour costs are low, even lower than in China. Obviously low hourly wages rates explain it but not only. Investments by textile manufacturers in productivity-boosting technology lowered the labour costs in Bangladesh making it one of the world’s low-cost producers. Indeed, this was an advantage during the Recession because big importers increased their purchases at low prices. Second is strong network of supporting industries. Thus, garments Manufacturers save transport and storage costs, import duties which boost their productivity.
The fourth largest sector in the Indian economy is all set for 16% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector will touch around Rs. 140000 crores by 2015 (33.4B$).
Globalization is basically about attempting to make things global and expanding products and companies over seas to countries all around the world. It can also be classified as the process of creating languages, services, and products that apply not just to an individual neighborhood or city or country, but to the whole world. Canadians have experienced many benefits that globalization has brought to their lives including the availability to products and services from all around the world. However, at the same time on the other side of the world it has had many pessimistic or negative effects on workers in developing countries. As Globalization began to boom, the number of sweatshops also increased greatly and its effects were most definitely harming in many ways to the individuals employed by them; mainly women and children. Out of all the industries that have become globalized, the textile and garment industries are amongst the most. Mutually the textile and garment industries make up one of the largest sources of industrial employment in the world. In virtually every country around the world clothing is being produced but being sold somewhere else. Around 30 million people are making clothes and textiles around the globe and out of those thirty million, most of them are women. Around the world women and children are suffering because of the introduction of sweatshops, low wages, unsafe working environments, free trade zones, foreign control, sub contracting and abuses of human and worker rights.
Sustainable fashion offers various benefits to both the consumer and the entire environment. For instance, it is noted that the entire process of sustainable fashion is worthy for the globe. In most cases, the fashion industry leaves behind a huge environmental imprint ranging from the pesticides in growing cotton to the landfill impact of clothes that wear out and the energy needed to manufacture every piece. Therefore, deciding on organic fibers or sustainable fabrics made from bamboo can also reduce the quantity of carbon emitted and chemicals brought into people`s lives. This shows how sustainable fashion if embraced can bring benefits to the consumer, the producer, and to the environment, which is very vital for future generations. Selecting clothes that contain the label “fair trade act,” during purchase emphasizes on sustainability in numerous ways. The first thing is that, it guarantees that the product was produced under safe working conditions. Further, it signifies that the person who produced it earned a fair wage since it is sweatshop free (Hethorn 123). The act of purchasing clothes considered as “fair trade” confirms that individuals and places mean more than the organization`s fundamental reason for its