Preview

Bangladesh: in Search of Solution of Unrest in Garments Industry

Powerful Essays
Open Document
Open Document
3805 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Bangladesh: in Search of Solution of Unrest in Garments Industry
Bangladesh: In Search of Solution of Unrest in Garments Industry

Introduction :
Bangladesh is an underdeveloped country. Country’s major industry and its main foreign exchange earner sector is Ready Made Garments (RMG) industry. It accounted for about 80% of the total share of exports and earned $12.7 billion in 2008-09. This was about 14 % of the country's GDP. Since 2006 Bangladesh is suffering from
The industry owners and political leaders initially tried to sweep the grievance s of labour under the carpet by floating various conspiracy theories. But the problem has refused to die down as its roots lie within the industry and in the exploitation of labour.
Garment Industry of Bangladesh Bangladesh earns nearly $7 billion a year by exporting textile products, mainly to Europe and the United States. This is about 70 percent of total export earnings of the country. The RMG industry has around 4,500 units across the country. The wages of the 4 million RMG workers working in 4,500 factories - 85% are the majority of whom are young, poor and illiterate women - were recently confirmed as remaining the lowest salaries in the world. The factories employ about 40 per cent of the country's industrial workforce.
It employs around 2.5 million workers, 90 percent of whom are poor women. Whenever the country is criticized for its high level of corruption and confrontational politics, its garment industry is held up as a success story.
Dark Side of the Garment Industry
This most flourishing industry of Bangladesh has its dark side. A large number of the units are located in dilapidated buildings. The industry leaders unite together to get support and benefits from the government, but they are not equally willing to look after the welfare of workers. In the RMG industry in several places in Bangladesh workers are paid their salaries two months late. Overtime is imposed and in some cases not rewarded. The rising inflation has reduced the value of wages. But the

You May Also Find These Documents Helpful

  • Powerful Essays

    Sweatshops Case Study

    • 1353 Words
    • 6 Pages

    In US dollars, the minimum wage of Bangladesh is $38.57 a month. “Sweatshops are attractive to people in places with few employment options, a lack of social services, and impoverished living conditions” (Radin & Calkins, p. 265). Poor working conditions are apparent in sweatshops around the world. Working standards set in the United States are not adhered to in other countries due to their lenient labor regulations. This provides competition among the countries and forces the developing countries to lower their wages to remain…

    • 1353 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    The want to make clothes based on one thing…price. Several worldwide companies have taken advantage of Dhaka, which is the poorest city in the world, because the work and labour is extremely cheap. This included some of the most well-known companies such as: Kmart, Target, Rivers, Zara, Forever New and Benetton. Rivers employ their workers at wages less than three dollars a day or six thousand taka a month. This is far from enough to live on as room rent is one thousand seven hundred per month, fire wood is six hundred taka per month and one bag of rice is between one thousand six hundred to two thousand taka. This is not as low as it gets… workers at the Rosita factory, which makes clothes for Coles, pays their workers 22 cents per hour. Meanwhile Dhaka is not the only part of the world where cheap labour occurs. Some of the lowest paid workers are found in Saudi Arabia where there is no minimum wage. This allows of the factories to pay their workers for how fast they work which means most of the workers are paid for being ‘slow’. In one factory in China, majority of the workers have to stay overnight in the factories’ rented rooms because they cannot afford to stay anywhere else. In each small room there is around twelve to twenty people, can you imagine that?…

    • 857 Words
    • 2 Pages
    Good Essays
  • Good Essays

    As a conclusion, the reasons why Bangladesh took advantage from the shift to a free trade regime in the textile industry are beyond only low wage rates. Moreover, Bangladesh’s textile market may keep growing the next years because the trend to shift textile production away from China may continue as the wage rates are increasing fast.…

    • 899 Words
    • 3 Pages
    Good Essays
  • Good Essays

    A closer look at the globalization will show that it has both positive and negative impacts on the economy of Bangladesh. A thorough understanding of the effect of globalization is needed to maintain a sustained growth in the face of likely economic peril. It brings changes on the living condition, status of the poor and rural people. The garment sector opens the door of sufficiency to the people who previously lived in a hurdle condition. The most beneficiaries are the women who were deprived from the society but now they have power to earn. This economic revaluation is not only creates a skilled sector but also gradually decreased unemployment problem. This paper attempts to take a fresh look at the impact of…

    • 328 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    I. Introduction GDP growth of Bangladesh has been 5 per cent and above in the past decade or so with increasing exports, imports and remittance. Ratio of total trade (exports plus imports) to GDP rose from 17.6 percent in 1990 to around 29.4 percent in 2002 (World Bank, 2005). Export growth is often considered to be a principal determinant of production and employment growth in an economy. It is also argued that foreign currency made available through export earnings facilitates import of capital goods, which in turn increases production potential of an economy.…

    • 5304 Words
    • 22 Pages
    Powerful Essays
  • Good Essays

    Export Trend in Bangladesh

    • 2215 Words
    • 9 Pages

    Like many other third-world developing countries, Bangladesh relies quite heavily on exports to provide for the needs of its densely populated nation. Today the economy of Bangladesh has largely depends on the export position of the country. Before the independence and after the independence the main source of budget fund came from the export revenue and till now it is the major indicator of countries growth and economic stability for its principle role in exchange rate determination and GDP. In over three decades, Bangladesh has witnessed substantial growth in its export of goods and services. The volume of export, the no of exporting countries and as well as the range of exporting goods have widen substantially. Bangladesh has experienced not only a substantial increase in the volume of exports but also important changes in the composition of those exports; moving away from traditional items such as jute and jute products and towards new manufactured…

    • 2215 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    BUSINESS IA HL IB

    • 4065 Words
    • 17 Pages

    Bibliography: Bangladesh Garment Manufacturers and Exporters Association. “Growth of RMG Industry and Employment.” Bangladesh Garment Manufacturers and Exporters Association Annual Report. 2008 ed. 105.…

    • 4065 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Multinational companies like Walmart,Mango,etc are now in dilemma about terminating their contracts with Bangladeshi manufacturing industries after the building collapse in Savar. The eight-storeyed building Rana Plaza was one of hundreds of buildings in the crowded streets of Savar, an industrial suburb of Bangladesh's capital and the center of the country's $20 billion garment industry. If Bangladesh remains one of the world's poorest nations, it is no longer a complete economic cripple. Instead, it turned its poverty to its advantage, heralding workers who make some of the world's lowest wages and attracting some of the world's leading brands.But this same economic miracle has plunged Bangladesh into a vicious descending spiral of keeping down costs, as major retailers compete for customers who want ever cheaper clothes. On one hand,the multinational companies do not want to leave Bangladesh because of cheap labour cost.On the other hand,they are feeling pressure from consumers to leave Bangladesh if the working condition do not improve. In this case study,we have analyzed the problems that multinational companies are facing and offering solutions for the major and minor problems they are facing.…

    • 2285 Words
    • 10 Pages
    Good Essays
  • Satisfactory Essays

    Morshed, M Monjur, A study on labour rights implementation in readymade garment (RMG) industry in Bangladesh: bridging the gap between theory and practice, MSocChgDev-Res thesis, Centre for Asia Pacific Social Transformation Studies, University of Wollongong, 2007. http://ro.uow.edu.au/theses/40…

    • 2895 Words
    • 12 Pages
    Satisfactory Essays
  • Powerful Essays

    Bangladesh recorded a trade deficit of 643.50 USD Million in August of 2013. Balance of Trade in Bangladesh is reported by the Bangladesh Bank. From 1995 until 2013, Bangladesh Balance of Trade averaged -1105.0 USD Million reaching an all-time high of -32.3 USD Million in July of 2013 and a record low of -5370.6 USD Million in June of 2008. Bangladesh exports mainly ready-made garments including knit wear and hosiery (75% of exports revenue). Others include: Shrimps,…

    • 6815 Words
    • 28 Pages
    Powerful Essays
  • Better Essays

    Bangladesh is one of the leading garments manufacturers in Bangladesh. It is done due to the dedication to this industry. Good quality within cheap price attracts the leading fashion clothing’s of the world to Bangladesh. Therefore it becomes the largest exporting industry in Bangladesh. But do we really think of them whose dedication leads Bangladesh to this place? Most of the time we say- ensure the safety of the garments labors in their workplace or follow the minimum salary instruction ordained by Government. Most of the cases, it confines within the paper documents only. Nobody cares the loss of thousand lives or nobody hears behind the story of sweating. Only prefers profit as capitalism never thinks of them who builds the backbone. In this case, women labors are more deprived. They have to nourish kids, family and husband beside the tormenting environment of their workplace. They are also victim of sexual harassment.…

    • 899 Words
    • 4 Pages
    Better Essays
  • Good Essays

    A Garment Worker

    • 836 Words
    • 4 Pages

    The garments workers, who are mostly women, and earns 76% of total foreign exchange,are ill paid and lead substandard life. These workers genuine problems are often over looked by the employers even after their repeated demands to look into their genuine demands and create an atmosphere so that they can have their minimum wages and other facilities like medical allowance, festival bonuses and others, so that they can put their best efforts to produce quality products and compete with countries like China and India .Mentionable that export of Bangladesh garments products remains still strong, while many countries have gone down. Unfortunately enough that the owners of many garment factories are yet to wake up to their call calling for unnecessary chaotic condition in the factory which leads to layoff of the factory, destruction of the factory and loss of lives of many who sometimes becomes unruly incurring huge loss of money. To sustain the momentum gained by our garment industries the owners of the garment factories must think seriously and meet their demands which are very negligible to what they themselves earn. And save the industry for the greater interest of the country.…

    • 836 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Term Paper

    • 2242 Words
    • 9 Pages

    We are very glad to let you know that, we have already completed the report that you assigned us as a partial fulfillment of the course of macroeconomics. During the preparation of the report we tried our best to make it reach covering the all concerning matter’s. We believe that the report will at least give you overall idea about supply & demand on RMG sector in Bangladesh. Now we humbly request you to accept the report for your favorite solicitation. In this regard, we once again like to show our deepest gratitude to you to provide the opportunity of preparing the report. Thank you very much.…

    • 2242 Words
    • 9 Pages
    Better Essays
  • Satisfactory Essays

    Market Diversification

    • 352 Words
    • 2 Pages

    Bangladeshi RMG products are mainly destined to the US and EU. Back in 1996-97,Bangladesh was the 7th and 5th largest apparel exporter to the USA and European Unionrespectively. The industry was successful in exploring the opportunities in markets awayfrom EU and US. In FY07, a successful turnaround was observed in exports to thirdcountries, which having a negative growth in FY06 rose three-fold in FY07, whichhelped to record 23.1 percent overall export growth in the RMG sector. It is anticipatedthat the trend of market diversification will continue and this will help to maintain thegrowth momentum of export earnings. At the same time a recent WTO review points outthat Bangladesh has not been able to exploit fully the duty free access to EU that itenjoys. While this is pointed out to be due to stringent rules of origin (ROO) criteria, therelative stagnation in exports to EU requires further analysis.…

    • 352 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Democracy in Bangladesh

    • 1741 Words
    • 7 Pages

    How can the lives and conditions of women garment workers in Bangladesh be improved? Naila Kabeer questions whether the workers themselves benefit from the campaigning approach of Anita Roddick and the National Labor Committee. Anita Roddick writes on openDemocracy with passionate anger about the conditions of women workers in the export garment sector based on testimonies of workers she met on her visit to Bangladesh. Her account is supported by the United States-based National Labor Committee (NLC) which has been active in the country on this issue. Farida Khan, citing the World Bank country director in Bangladesh, offers a different perspective on the garment industry’s importance in the national economy and to Bangladeshi workers, one that partly counters Anita Roddick’s and the NLC’s views. I have been engaged in research on different aspects of gender equality in Bangladesh, including the economic, for many years now; I have been particularly interested in how women themselves view their choices and life options. In contributing to this discussion, I will emphasise the issues that seem to me to be especially important in assessing the experience of women garment workers in Bangladesh, and where the best possibilities for improvement in their conditions might lie. Bangladesh in transformation Bangladesh, like much of south Asia, has always been a strongly patriarchal country. There are strict restrictions on women’s ability to participate in the public domain – whether to earn an income, attend school, or take part in politics. It remains one of the world’s poorer countries, classified by the United Nations as among its forty -eight least-developed economies. However, Bangladesh is also undergoing major social transformation. Poverty has been declining slowly but consistently over the past decade. The country moved,…

    • 1741 Words
    • 7 Pages
    Powerful Essays