Overview of Bangladesh Garment Industry
Posted by: Sweater in Sweater Articles, tags: Bangladesh, Garment, Industry, OverviewAgriculture, as is the case of India, the backbone of the economy and the main source of income for the people of Bangladesh were awarded the lands of the municipalities. Government wants to achieve poverty is higher in agricultural productivity and reduce dependence on food production. Besides agriculture, the country is far more concerned about the growth of export department. Bangladesh has accelerated and has significantly changed its export from time to time. After Bangladesh becamebe, jute and tea were the export industries. However, with the constant danger of flooding, in the absence of jute prices and a sharp decline in world demand, the role of the jute sector in the country's economy deteriorated (Spinanger, 1986). After attention has shifted to the role of the production sector, especially in the garment industry.
The garment industry department of Bangladesh's main export and a major source of foreign currency for the last 25 have beenYears. The country currently generates about 5 billion U.S. $ worth of products every year with the export of garments. The sector employs about 3 million workers, of whom 90% are women. Two market factors have played an important role in confirming the garment industry and continued success, these elements are: (a) Arrangement1 quotas under MFA (MFA) in the North American market, and (b) special market access to European markets. The entire procedure is very strongly associated with theTendency to shift production.
The relocation of production in the garment industry
The world economy is controlled by the shift of production, where companies in developed countries, its momentum to the attention of developing countries. The new office is located in a center-periphery of the production system in the center, with a relatively small center of permanent employees dealing with finance, research and development, and modernization of technological equipment and peripheralsdependent elements of the production process. Reducing costs and increasing production are the main causes of this plant. They have found the easiest way to charge less than the production in a country where labor costs are lower production costs and cargo to move. Since developing countries have not implemented the areas, costs, such as degeneration of the environment, and protects this process, the developed countries against environmental problems and the law. The relocation of production in the Third Worldhas supported the expansion of the economies of these countries and accelerate the economy of developed nations.
Clothing industry is controlled by the shift of production. The globalization of the apparel industry has started earlier and has grown more than any other factory. The companies have moved their blue-collar production of high-wage areas, regions of low production costs in emerging economies. Improved communication and networkinghas played a key role in this development. The export-oriented production has some good yields in the industrialized countries of Asia and Latin America since the 1960s brought. The first movement of the clothing found in North America and Western Europe to Japan in 1950 and 1960. However, during 1965 and 1983 Japan changed its attention on profitable products, like cars, stereos and computers, and therefore 400,000 workers were dismissed by the Japanese textiles andGarment industry. Indeed, the rearrangement of the second garment industry of Japan to the Asian tigers - South Korea, Taiwan, Hong Kong and Singapore in the 1970s. But the tendency to transfer the manufacturing process. The rising costs of labor and free trade union activity in proportion to the improvement in the economies of the Asian tigers. The transfer of industry experience third of output in the decade from 1980 to 1990, the Asian tiger economies to other developing countries- Philippines, Malaysia, Thailand, Indonesia and China in particular. The 1990s were the last group led by exporters such as Bangladesh, Sri Lanka, Pakistan and Vietnam. But China is a leader in the trend of moving production to less than ten years (after 1980) China is nothing to become the largest manufacturer and exporter of garments.
Garment Sector of Bangladesh and global chains
The reason for this transfer can be solved by the wage structure in theApparel industry, worldwide. WORKWEAR hourly rate (salary and benefits in U.S. dollars) in the U.S. is 10,12, but only 0.30 in Bangladesh. This difference has accelerated the export of garments in the world of $ 3 billion in 1965, with developing countries, of which only 14 per cent of the total to $ 119 million in 1991, with developing countries development by 59 percent. In 1991, the number of workers in the garment industry in Bangladesh was 582,000 and grew to over 1,404,000 in 1998.In the U.S., but in 1991 the image was 1106.0 thousand workers in the garment sector and in 1998 returned to 765th 8 mil.
The information provided demonstrates that the trend of low labor costs the main reason for the transfer of the garment industry in Bangladesh. The practice began in the 1970s when Asian tiger nations were searching for tactics to avoid export quotas in Western countries. The garment units in Bangladesh are mainly based on the "tigers" Nationsraw materials. Mediators in the Asian Tiger to build a mediator between the textile units in their home country, where the spinning and weaving, and the units in Bangladesh, where the tissue is cut, sewn, ironed and packed in cardboard boxes export. The same representatives of the Tiger nations see the Bangladesh market in several countries of the North. Great company posted retail in the United States and Western Europe, most contracts provide for the garment industry in BangladeshProducts. Companies such as Marks and Spencer (UK) and C & A (Netherlands) Capital managed funds, in proportion to the capital of Bangladesh, which is owned by the patient. Shirts are manufactured in Bangladesh, are sold in developed nations for the price five to ten times their importation.
Working with local industry of private clothing, Desh Company, a Korean company, Daewoo is an important example of the international clothing chain that operates as one of the reasons for the expansion of the garmentIndustry in Bangladesh. Daewoo Corporation, South Korea, as part of its overall policy were interested in Bangladesh, where the chairman, Kim Woo-Choong offered an ambitious joint venture between the Government of Bangladesh for growth and the process of including tires, leather, cement and textile factories y. The Desh Daewoo alliance was crucial to the well in the global apparel market in significant time when the importation of the reform was taking place in this market after theSignature of the Ministry of Foreign Affairs in 1974. Daewoo, a major exporter of South Korea's clothing was in search of opportunities in nations that barely had used their quotas. The MFA quota restrictions that have limited export Korean Daewoo. Bangladesh exports of least developed countries the opportunity, without coercion and therefore Daewoo came with the use of Bangladesh for their markets. The purpose of this requirement was that Bangladesh would over Daewoo for the import of raw materials andDaewoo at the same time, the market could receive in Bangladesh. When the president of Daewoo's interests in Bangladesh, shows the country's president contacted the president of the Desh, a former official who was looking for more business.
To meet this request, Daewoo signed a cooperation agreement with Desh clothes for five years. The contract also includes the area of technical training, purchase of machinery and equipment, plant construction and commercialization ofIn exchange for a particular campaign, the Commission of all exports from Desh during the contract period. Daewoo also provides extensive practical training of Desh employees in the work environment of a multinational company. Daewoo Desh eagerly assisted in the purchase, machinery and textiles. Some technicians from Daewoo Desh Bangladesh establishing the facility. The end result of the association of the Desh-Daewoo was important. In the first six years of operations, 1980/81-86/87 ie export value Deshgrew at an average annual rate of 90% to over $ 5 million in 1986/87.
Desh is alleged that the Daewoo alliance is an important element for growth and achievement of the industry's total garment exports of Bangladesh. After they are connected with the Daewoo brand name and network marketing, foreign buyers went with the purchase of clothing companies, whatever their origin. Outside the building on the left Desh participating companies at different times of their own competenceClothing companies, worked as a way of knowing throughout the clothing industry.
It is important to pay the outcomes of the process of moving production from high to low wage countries identified for developing and developed countries. It is evident that most Third World countries are now on the road to industrialization. They are in the process, workers who work in adverse working conditions - minimum wages, hazardous work, lack of security, joblessWarranty, forced labor, etc.
The path of globalization is of high and low for developing countries. The transfer may be relatively mobile, blue-collar production of industrialized countries to developing countries, in some cases, have unfortunate consequences for social life - where the absence of efficient planning and discussions between the government and international organizations and or organizations in the host country - the transfer policies promoting urban relocation and its boundaryLength of stay is short. Another negative consequence is that the increase in employment and / or income are not expected to be satisfied with the scale and scope to reduce inequality. In connection with the negative results of relocation of production on employment in developed countries, we recognize that in a relatively blue collar industries, the increase of imports from developing countries to the inevitable losses in employment. It is argued that the development of trade with the South was an important reasondisindustrialisation employment in the north during the last decades.
After all employees who are constantly trying to support the weight in adverse circumstances. The work will be under the control of the garment sector in Bangladesh. Catastrophic Betriebsklima surfaced in the Bangladesh garment industry.
Scientific studies have shown that 90 percent of garment workers was due to illness or disease during the month preceding the interview. Headache, anemia,Diseases of fever, chest, stomach, eye and ear pain, cough and cold, diarrhea, dysentery, urinary tract infections and reproductive health problems were more common. Textile mills were bond of various diseases, staff of the work. In order to find a link between these diseases and industrial risks, health status of workers was assessed before and after coming to work in the garment industry. At the end of the investigation had not been that about 75 percent of the garmentStaff had good health before the textile factory in the. The decrease was due to health reasons, industrial hazards, poor working conditions and lack of staff facilities, inflexible working conditions, clothing, work pressure and low wages. Several papers related to threats and their impact on health forced employees to leave work after a few months after the accession of the factory, the average duration was only 4 years.
The garment sectorobjectionable by the fires that have allegedly caused more than 200 lives over the past two years, although exact figures are hard to find. A horrible example of the lack of safety in the workplace was a fire in November 2000 in which nearly 50 people were killed in existing Narsingdi as doors were closed.
From the above analysis of the working atmosphere of clothing we can see that the work environment of Third World countries, namely Bangladesh remind us of the firstProceedings of the garment industry in first world countries. The state of employment in many (not necessarily textiles) and clothing units in developing countries lead us back to the series in the nineteenth century in Europe and North America. The abuse of garment workers at the time of birth, the evolution of U.S. textile mills be checked more or less the same as we now see in the Bangladesh garment industry. Can we find that workers in the construction of the Third WorldNations in the 21st Century? Is it a conveyor belt back?
In a way, western societies are guilty of poor working climate in the textile industry. The developed countries want more profits, and thus compel developing countries to reduce production costs. To survive in the competition to select the unethical practices in development. With the introduction of rigid conditions in the economy, the economy has left fewAlternatives for developing countries.
At the appropriate time to make a decision
There are two alternatives, the challenge of global competition by the constant pressure of the global apparel chain in motion. One can continue in the competition for the traditional system of job or are immoral. But it is unclear how long it can continue to exist. In connection with the garment industry in Bangladesh, one can say that this is the right time is to keep a competitive edgeThe policy, improvement of quality. If you eliminate the potential of MFA, will be possible to maintain the competitiveness of low-wage women in the labor market or the largest reduction in women's wages? Maybe not. Since labor costs are so minimal that a wage of a worker can not, even a family of two members receive. The efficiency of workers is the only solution to increased competition. Proper training and a good education can contribute to these positiveResults. For the world market of Bangladesh usually has to come from low pay and low complexity output in the clothing industry. Bangladesh may increase the work effort through constant training, the use of better technology and better working environment. Bangladesh should have a strategy for promoting skills development project plan, the acceleration of technology and the level of improved productivity of workers.
Another method is the best system or adopt ethical framework. Companies responding toincreased competition, emphasizing quality, quick response by the customer, fair procedures for workers should have the most innovative methods. We now live in an era of competition in the production of better quality than the policy of cost reduction. The aim of efforts to change the workplace has changed over time - what the work of humans in the 1960s, job satisfaction and the 1970 edition to the quality and competitiveness in the 1980s. It is a necessary conditionCompanies with a policy of competitive quality, flexibility, innovation and customer service. If you are based on low costs falling wages of workers and other services, will be the survivors of workers for the dedication to work.
Strength
. For qualified Important / Keen available labor in low labor costs. The recommended minimum average salary (the travel allowance, housing rent, medical allowance, maternity benefits, festival bonus and overtime areThe benefit will be)) on the premises of the processing zones of Bangladesh (BEPZA as follows, on the other side, out of wages BEPZA approximately 40% lower:
. The energy at low prices
. Readily available infrastructure such as roads, sea, rail, river and air communications
. The accessibility of basic infrastructure, which will take place over 3 decades old, especially those of Korea, Taiwan and Hong Kong, Chinese industrialists.
. Foreign direct investment is permitted by law
. Moderatelyopen economy, especially in the areas of Export Promotion
. GSP under the EBA (Everything But Arms) for the Least Developed Countries applicable (tax-free in the EU)
. Improvement of GSP benefits in the context of regional Cumulative
. I hope over U.S. Duty Free are discussions on how encouraging and seem to be
. Investment guarantees under foreign private investment (Promotion and Protection) of 1980, which guarantees all foreign investment in Bangladesh
. OPIC (Overseas PrivateInvestment Corporation, USA) and financial insurance programs to use
. Bangladesh is a member of the Multilateral Investment Guarantee Agency (MIGA), under the protection and safety measures are available
. Service Award of the International Center for Settlement of Investment Disputes (ICSID) available
. Excellent tele-communication network e-mail, Internet, fax, ISD, NW and cellular services
. The currency's weakness against the dollar and the State will continuehelp exporters
. Bank interest @ 7% for export financing
. Desirability of duty free associated w / House
. Improving the preparation of the new units and build the infrastructure to meet output growth and rapid response to the circumstances of
Weakness
. The lack of marketing tactics
. The country is deficient in creativity
. The shortage of easy-to middle management
. A small number of manufacturing processes
. Low adoption: Ainternational pressure group to force local manufacturers to implement the Government and the social consent. The GSP SU may be canceled and the purchase of U.S. and the EU can significantly reduce the
. M / C further development is necessary. The machinery needed to evaluate, in a garment or increased competition Add missing in most industries.
. Lack of training organizations for industrial workers, supervisors and managers.
. Autocratic approach to almost all investors
. LessThe process units for textiles and clothing
. Process backwards or forwards slow mix
. Ports inept, entry / exit complicated and loading and unloading do not have time
. Speed money culture
. Time consumption of customs clearance
. Unreliable delivery reliability / GC / Product Knowledge
. Lack of communication created by the incomplete knowledge of the English Language
. Subject to natural disasters
Opportunity
. EU is ready for the industry as an institutiongreat as an option for China, especially of textiles, including sweaters
. Bangladesh is in the least developed countries which are committed to improving the U.S. export trade to include
. Sweaters are very economical, even with China and Bangladesh perspective
. If you have qualified technicians to teach, is a pledge organized an option, such as labor and energy costs are cheap.
. Ladies Clothing Foundation for the promise of direct foreign investment is important becauseboth technicians and advanced machines to improve performance and the importance of competition
. Japan to see how often buy hand-woven textiles, furniture and clothes. This section can be supported and expanded further progress in quality
Threat
. Exporters must prepare to harvest the benefits offered by the possibilities.
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