RMG sector In Bangladesh
Growth of RMG Sector in Bangladesh
Prepared by
Tasnia Tajin 12364046
Tasnim Khanam Alis 12364048
Course Name: Managerial Economics (Microeconomics)
Course ID: ECO 501
Submitted to
Dr. Sayera Younus
Date: 14. 12. 2012
Contents
1. Abstract
2. Introduction
3. History
4. An Overview of the Bangladesh Ready Made Garment Industry
5. Growth of RMG industry in Bangladesh
6. Reasons behind the Growth of RMG Industry in Bangladesh
7. Challenges faced by the RMG sector in Bangladesh
8. Market overview
9. Conclusion
10. Recommendations
11. References
Abstract
The inception of ready-made garment (RMG) industry in Bangladesh goes back to the late 1970s and soon became a key player in the economy of Bangladesh. Ever since its rise, the industry has contributed to export earnings, foreign exchange earnings, employment creation, poverty alleviation and the empowerment of women in Bangladesh. The two main reasons behind the success of the industry can be attributed to the export-quota system and the availability of cheap labor in the country. Although the growth of the RMG sector has remained steady over the years, it is not without any challenges. In our paper we delve into the factors that have made RMG such a powerful economic sector in our country and the challenges faced by the industry and try to provide recommendations to overcome those hurdles from an economic perspective.
Introduction
The RMG industry of Bangladesh has seen fast growth over the past three decades. Until the 1970s the jute industry reined the industrial sector of Bangladesh but the RMG industry progressively replaced the jute industry since the early 1980s. In the decade of the 1980s, Bangladesh’s exports doubled from US$0.9 billion to US$1.8 billion, which in the next decade increased to just over US$ 5 billion on its way to reach US$10 billion by the end of the fiscal year 2005-06 an went to increasing up till 2012
Prepared by
Tasnia Tajin 12364046
Tasnim Khanam Alis 12364048
Course Name: Managerial Economics (Microeconomics)
Course ID: ECO 501
Submitted to
Dr. Sayera Younus
Date: 14. 12. 2012
Contents
1. Abstract
2. Introduction
3. History
4. An Overview of the Bangladesh Ready Made Garment Industry
5. Growth of RMG industry in Bangladesh
6. Reasons behind the Growth of RMG Industry in Bangladesh
7. Challenges faced by the RMG sector in Bangladesh
8. Market overview
9. Conclusion
10. Recommendations
11. References
Abstract
The inception of ready-made garment (RMG) industry in Bangladesh goes back to the late 1970s and soon became a key player in the economy of Bangladesh. Ever since its rise, the industry has contributed to export earnings, foreign exchange earnings, employment creation, poverty alleviation and the empowerment of women in Bangladesh. The two main reasons behind the success of the industry can be attributed to the export-quota system and the availability of cheap labor in the country. Although the growth of the RMG sector has remained steady over the years, it is not without any challenges. In our paper we delve into the factors that have made RMG such a powerful economic sector in our country and the challenges faced by the industry and try to provide recommendations to overcome those hurdles from an economic perspective.
Introduction
The RMG industry of Bangladesh has seen fast growth over the past three decades. Until the 1970s the jute industry reined the industrial sector of Bangladesh but the RMG industry progressively replaced the jute industry since the early 1980s. In the decade of the 1980s, Bangladesh’s exports doubled from US$0.9 billion to US$1.8 billion, which in the next decade increased to just over US$ 5 billion on its way to reach US$10 billion by the end of the fiscal year 2005-06 an went to increasing up till 2012
References: End of MFA Quotas: Key Issues and Strategic Options for Bangladesh Readymade Garment Industry, Bangladesh Development Series – paper no 2 The World Bank Office, Dhaka December 2005 Abdur Razzaue, Abu Eusuf Trade, Development and Poverty Linkage:A Case Study of Ready Made Garment Industry in Bangladesh, April 2007 http://www.cuts-citee.org MOHAMMED ALI RASHID: RISE OF READYMADE GARMENTS INDUSTRY IN BANGLADESH: ENTREPRENEURIAL INGENUITY OR PUBLIC POLICY, November 2006 Ananya Raihan, Debapriya Bhattacharya, Mustafizur Rahman : Contribution of the RMG Sector to the Bangladesh Economy, October 2002 http://cpd.org.bd Dailystar.net # # #