Overview of Bangladesh Garment Industry
Agriculture, like in India is the mainstay of economic development and the main source of income for the population of Bangladesh which is a country comprised of villages. The government is determined to reduce the level of poverty by gaining the highest efficiency from agriculture and achieving the goal of self-reliance in food production. In addition to agriculture and food production, the country is worried about the expansion of exports. Bangladesh has seen an increase in and changes to the way she exports her goods at times. Since Bangladesh was established in the early 1980s, tea and jute were the two most export-oriented sectors. However, due to the constant dangers of flooding, the decline in prices for jute fibre and a significant decrease in global demand and the importance of the jute industry in the economy of Bangladesh has diminished (Spinanger, 1986). The focus has been switched towards the production , particularly in the clothing industry. The industry of garments in Bangladesh is the main export sector and the main exporter of foreign currency over the past 25 years. As of now, the country produces around $5 billion in goods every year through exports of garment. The industry employs approximately 3 million people of which 90% are women. Two non-market components have played an important role in confirming the industry's continued success These elements include (a) the quotas that are part of Multi- Fibre Arrangement1 (MFA) for MFA's North American market and (b) the special market entry into European markets. The entire process is connected to the current trend of shifting production. Visit:- https://www.hipix.nl/ Production is being displaced within the Garment Industry The world economy is currently managed through the shift of manufacturing, where companies from developed nations shift their focus to developing nations. The new model is based around a central-periphery model of production. It has a tiny central area of permanent workers who are responsible for research and development, finance technology, modernisation and institution and a peripheral area that houses the production process's dependent components. Lowering costs and increasing production are the primary reasons of this decision. They have found that the most effective method to reduce costs is to shift production to a location in which labour as well as production expenses are less. Because developing countries have areas which do not have costs such as environmental degradation This practice helps protect advanced countries from the pitfalls of law and environment. Transferring production into the Third World has helped the growth of the economy of these countries and has also helped speed the economic growth of developed countries. The garment industry is governed by transfers of manufacturing. Globalisation of production for garments began earlier and has grown faster than any other manufacturing facility. The firms have transferred their blue-collar manufacturing activities from high-wage regions to low-cost production regions in industrialising countries. The improvement of the communications and networking is a major factor in this growth. Export-oriented manufacturing has provided positive returns to the industrialized countries in Asia as well as Latin America since the 1960s. The first move of garment manufacturing occurred in North America and Western Europe to Japan in the 1950s and beginning of the 1960s. However, between the years 1965 and 1983, Japan switched its focus to more lucrative goods like computers, cars and stereos and , as a result, 400,000 employees were fired by the Japanese the clothing and textile industry. In the end, the second stock transfer in the garment industry occurred transferred from Japan into the Asian Tigers - South Korea, Taiwan, Hong Kong and Singapore in the 1970s. However, the trend of transfer of manufacturing was not there. The increase in the cost of labour and the activeness of trade unions was in line with the growth in the economies of the Asian Tigers. The industry experienced the third shift of manufacturing between the 1980s and 1990s, out of the Asian Tigers to other developing countries , including the Philippines, Malaysia, Thailand, Indonesia and China in particular. The 1990s were dominated by the last group of exporters, which includes Bangladesh, Srilanka, Pakistan and Vietnam. However, China was the leader in the present of the shifting as in just 10 years (after the 1980s) China emerged from nowhere to become the largest exporter and manufacturer of clothing. Bangladesh Garment Sector and Global ChainThe reason for this transfer is able to be explained through the structure of salaries in the garment industry, across the globe. Apparel labour cost per hour (wages as well as fringe benefit, USdollars) for USA is 10.12 however it's only 0.30 for Bangladesh. This disparity accelerated world apparel exports , which were 3 billion dollars in the year 1965, with developing countries accounting for only 14 percent of the total up to $119 billion by 1991, with the developing countries making up to 59 percent. In 1991, the number of people employed in the ready-made clothing industry in Bangladesh was 582,000, and increased to 1,404,000 by 1998. In the USA however, the figure for 1991 indicated 1,106.0 thousand people working in the clothing industry, and in 1998, it decreased to 765. 8 thousand. The information presented reveals that the trend of low costs of labor is the primary factor behind the decision to transfer garment production to Bangladesh. The process began in the late 1970s, when Asian Tiger countries were looking for ways to avoid export limits of Western nations. The garment factories of Bangladesh depend on the "tiger" nations for their raw materials. Mediators from Asian Tiger nations build an intermediary between the textile factories in their own countries, where weaving and spinning go on as well as the Bangladeshi units in which the fabric is cut, sewn then ironed before being packed into boxes for export. The same representatives from Tiger nations are able to discover markets for Bangladesh in a variety of countries in the North. Retail trading giants located within both the United States and Western Europe offer the largest orders for Bangladeshi clothing products. Companies such as Marks and Spencers (UK) and C&A (the Netherlands) control capital funds, according to the amount of capital owned by Bangladeshi owners is patient. The shirts made in Bangladesh are sold in countries with developed economies at five to ten times the price of imports. Collaboration between a local private industry of garments, Desh Company, with Daewoo Corporation, a Korean company called Daewoo is a significant instance of an international chain of clothing that is one of the reasons for the growth of the garment industry in Bangladesh. Daewoo Corporation of South Korea in the context of its global policy was interested in Bangladesh when its ChairmanKim Woo-Choong proposed a partnership to Bangladesh's Government of Bangladesh, which included the expansion and development of tyres, leather goods as well as cement and garment factories. The Desh-Daewoo alliance was pivotal in terms of gaining access to the world apparel market at a crucial points, as reforms to imports were taking place in this sector following the signing of the MFA during 1974. Daewoo is one of the South Korean leading exporter of clothing, was seeking of new markets in countries that had not used their contingents. Because of the restriction on quotas for Korea following the MFA and MFA, exports of Daewoo was limited. Bangladesh being an LDC was able to export with no restrictions and because of this, Daewoo was concerned about the potential use of Bangladesh as a market. The reason behind this concern was that Bangladesh could rely on Daewoo to import raw materials, and at the same time, Daewoo could gain access to the market in Bangladesh. When Daewoo's Chairman Daewoo expressed interest in Bangladesh and the President of Bangladesh got him in touch with the Chairman of Desh Company, an ex-civil employee who was looking for entrepreneurial opportunities.

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