Problem & Prospect of Rmg in Bd
Presentation
Business Research Methodology
Sub: Problem & Prospect of the ready-made garment (RMG) industry of Bangladesh
Prepared by:
HAZRAT AHMED ALAMGIR
ID no.11120021
MBA (Evening), 20th Batch
Department of Accounting & Information Systems
University of Dhaka
Submitted to : Prof. Abdul Hakim
Department of Accounting & Information Systems
University of Dhaka
History
In the 1950s, labors in the Western World became highly organized; forming trade unions. This and other changes provided workers greater rights including higher pay; which resulted in higher cost of production. Retailers started searching for places where the cost of production was cheaper. Developing economies like Hong Kong, Taiwan and South Korea presented themselves as good destinations for relocations because they had open economic policies and had non-unionized and highly disciplined labor force that could produce high quality products at much cheaper costs.
In order to control the level of imported RMG products from developing countries into developed countries, Multi Fibre Agreement (MFA) was made in 1974. The MFA agreement imposed an export rate 6 percent increase every year from a developing country to a developed country. It also allowed developed countries to impose quotas on countries that exported at a higher rate than the bilateral agreements. In the face of such restrictions, producers started searching for countries that were outside the umbrella of quotas and had cheap labor. This is when Bangladesh started receiving investment in the RMG sector. In the early 1980s, some Bangladeshis received free training from Korean Daewoo Company. After these workers came back to Bangladesh, many of them broke ties with the factory they were working for and started their own factories.
ABSTRACT
The ready-made garment (RMG) industry of Bangladesh started in the late 1970s and became a prominent player in the
Business Research Methodology
Sub: Problem & Prospect of the ready-made garment (RMG) industry of Bangladesh
Prepared by:
HAZRAT AHMED ALAMGIR
ID no.11120021
MBA (Evening), 20th Batch
Department of Accounting & Information Systems
University of Dhaka
Submitted to : Prof. Abdul Hakim
Department of Accounting & Information Systems
University of Dhaka
History
In the 1950s, labors in the Western World became highly organized; forming trade unions. This and other changes provided workers greater rights including higher pay; which resulted in higher cost of production. Retailers started searching for places where the cost of production was cheaper. Developing economies like Hong Kong, Taiwan and South Korea presented themselves as good destinations for relocations because they had open economic policies and had non-unionized and highly disciplined labor force that could produce high quality products at much cheaper costs.
In order to control the level of imported RMG products from developing countries into developed countries, Multi Fibre Agreement (MFA) was made in 1974. The MFA agreement imposed an export rate 6 percent increase every year from a developing country to a developed country. It also allowed developed countries to impose quotas on countries that exported at a higher rate than the bilateral agreements. In the face of such restrictions, producers started searching for countries that were outside the umbrella of quotas and had cheap labor. This is when Bangladesh started receiving investment in the RMG sector. In the early 1980s, some Bangladeshis received free training from Korean Daewoo Company. After these workers came back to Bangladesh, many of them broke ties with the factory they were working for and started their own factories.
ABSTRACT
The ready-made garment (RMG) industry of Bangladesh started in the late 1970s and became a prominent player in the
References: Arvind, et. al. (1996). “The Emerging Global Trading Environment and Developing Asia.” Economic Staff Paper No. 55, The Asian Development Bank, Manila. Bhattacharya, D. (1999a) papers prepared in support of the themes discussed at the pre UNCTAD Expert Workshop on “Trade, Sustainable Development and Gender” Geneva, 12-13 July. p. 210. , (1999b) ibid. p. 209. Bhattacharya, D. & Rahman, M. (2000). Dialogue on “Implementation of WTO-ACT: Current Status and Implications for Bangladesh” (Draft), Sept. 30, Center for Policy Dialogue, Dhaka, p. 31. , ibid. p. 42. Cookson, Forrest E. and Ahmed, Syed Ershad (2000). “Chittagong Port: Problems and Solutions”, American Chamber of Commerce in Bangladesh. CPD (Centre for Policy Dialogue), 1997. “Crisis in Governance, A Review of Bangladeshis