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Overview of Bangladesh Garment Industry
Agriculture, as the case in India, has been the economic backbone and the main source of income for the inhabitants of Bangladesh The country is made of villages. The government is determined to reduce the level of poverty by gaining the highest efficiency from agriculture and achieving independence in the production of food. Beyond agriculture, the country is much concerned about the development of the export division. Bangladesh have seen a rapid increase and a change in the way she exports her goods at times. In the years following Bangladesh was established in the early 1980s, tea and jute were the most export-oriented businesses. But with the continual perils of flooding, deteriorating the prices of jute fibres and a sharp decrease in global demand and the importance of the jute sector to the economy of Bangladesh has diminished (Spinanger, 1986). Since then, the focus has been turned to the function of manufacturing, specifically in manufacturing of garments. The garment industry of Bangladesh has been the key export division and a main source of foreign exchange over the last 25 years. As of now, the country generates about 5 billion dollars worth of merchandise annually through the export of garment. The sector employs about 3 million workers who are 90% women. Two non-market elements have performed a vital function in confirming the industry's continued success and that is (a) quotas under Multi- Fibre Arrangement1 (MFA) within MFA's North American market and (b) an exclusive market entry to European markets. This whole process is linked to the trend of shifts in production. Visit:- https://www.hipix.nl/ Displacement of Production in the Garment Industry The world's economy is managed through the shift of manufacturing where firms of developed countries swing their attention towards developing countries. The new representation is based on a system of core-periphery production, with a comparatively small number of permanent staff who are responsible for finance, research and development technology, modernisation and institution and a periphery that includes the production process's dependent components. Reduced costs and a rise in output are the main reasons of this decision. They've discovered that the most efficient method to lower the cost is to shift production to a nation where the cost of labour as well as production expenses are less. Since developing nations provide areas where there are no costs like environmental degeneration, this practice protects the advanced countries from the pitfalls of law and environment. The shift of production to Third World has helped the expansion of economy of these nations as well as speeding the economic growth of advanced nations. Garment production is controlled by it's transfer process. Globalization of production of clothes began earlier and has grown greater than any other factory. The companies have transferred their blue-collar production processes from high-wage areas to low-cost regions of manufacturing in industrialising countries. The advancement of the networks and communication has played an important role in this change. Export-oriented manufacturing has brought some excellent returns to the industrialising nations of Asia and Latin America since the 1960s. The first transfer of garment manufacturing occurred out of North America and Western Europe to Japan in the 1950s and in the early 1960s. But during the years 1965 and 1983, Japan changed its attention to more lucrative products such as cars, stereos and computers and therefore, 400,000 workers were dismissed by Japanese the clothing and textile industry. In effect, the second stock transfer of garment manufacturing took place from Japan in the Asian Tigers - South Korea, Taiwan, Hong Kong and Singapore in 1970s. However, the trend of transfer of manufacturing was not there. The rising cost of labor and the activity of trade unions were due to the improvement in the economy of the Asian Tigers. The industry saw an unintended third shift in manufacturing during the 1980s until the 1990s. This was from the Asian Tigers to other developing countries like Philippines, Malaysia, Thailand, Indonesia and China in particular. The 1990s were dominated by the group of exporters which included Bangladesh, Srilanka, Pakistan and Vietnam. But China was the main player in the current of the shifting as in just ten years (after the 1980s) China emerged from nowhere to become the world's major manufacturer and exporter of clothing. Bangladesh Garment Sector and Global ChainThe reason for this transfer can be clarified by the salary structure within the garment industry all over the world. Apparel labour charge per hour (wages along with fringe-benefits, USdollar) is in the USA is 10.12 however it's only 0.30 in Bangladesh. This disparity accelerated world apparel exports to $3 billion in 1965 with developing nations accounting for just 14 percent of the total up to $119 billion by 1991, with the developing countries contributing 59 percent. In 1991, the number of people employed in the ready-made garment industry in Bangladesh was 582,000. It grew up to 1,404,000 in 1998. In the USA, however, 1991-figure revealed 1,106.0 thousand people employed in the garment industry. In 1998, the figure was down to 765. 8 thousand. The information presented reveals that the trend towards low labour charges is the key reason behind the relocation of garment manufacturing in Bangladesh. The practice initiated in late 1970s when the Asian Tiger states were looking for ways to get around the export quotas of Western countries. The garment production units in Bangladesh are mostly dependent on the 'tiger' nations to source raw materials. Mediators in Asian Tiger nations build an intermediary between the textile factories in their own countries, in which the spinning and weaving continues as well as the Bangladeshi units where the cloth is cut, stitched then ironed before being packed into cartons to be shipped out. The same representatives from tiger nations discover the market for Bangladesh across several countries in the North. Large retail trading companies placed within both the United States and Western Europe provide the majority of orders for Bangladeshi garment products. Companies like Marks and Spencers (UK) and C&A (the Netherlands) control capital funds in proportion to which the capital of Bangladeshi owners is patience. T-shirts produced in Bangladesh are sold in developed nations for between five and ten times the price of imports. Collaboration of a national private industry of garments, Desh Company, with an Korean company called Daewoo is an important instance of an international garment chain that is one of the grounds of the expansion of garment industry in Bangladesh. Daewoo Corporation of South Korea, as part of its global policy was interested in Bangladesh when the Chairman, Kim Woo-Choong suggested a partnership to Bangladesh's Government of Bangladesh, which included the development and growth of tyre, leather goods and cement as well as garment factories. The Desh-Daewoo alliance was decisive in terms of gaining access to the world apparel market at a critical points in time, when reforming of imports was taking place in this market after the agreement of MFA at the time of 1974. Daewoo, a South Korean leading exporter of clothes, was looking for of potential markets in countries who had barely used their contingents. Because of the restriction on quotas for Korea following the MFA which was implemented, exports from Daewoo became limited. Bangladesh as an LDC was able to export without any constraint and for this cause Daewoo was concerned with the utilization of Bangladesh as their market. The motive behind this requirement was that Bangladesh could rely on Daewoo for importing raw materials, while at the same time Daewoo could gain access to the market in Bangladesh. When the chairman of Daewoo expressed interest in Bangladesh, the country's President connected him to the chairman of Desh Company, an ex-civil employee looking to pursue more entrepreneurial opportunities.

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