Study of the growth and stagnation of the garments manufacturing industries of Bangladesh

Abstract

The economy of Bangladesh wos mainly based on agriculture for a long time. The post independence Government tried to develop industries by laking the policy of nafionolimtion which could not =ntribute an expected result. Then after 1975,when the r;x>liticalscenario of Bangladesh wos changed, then the government shifted to emphosize on privatlzalkm and took different favorable policies. Thisattracted the country's entrepreneurs to estabnshinduslries. At the same time some international framework under different agreement helped us in industrial development especially in Reodymode Garments. Bangladesh slarted exporting RMG in a smoll scole in the year 1978.But nOW the total export in this seelor isoboul4.5 billion US$per year. II contributes around 76% of the total export of the country. The contribution in GOP is about 4.3%. Now obout 1.6 million iobors ore working in mort thon 3500 gorments industries. Among them almost 80%are women. This sector contributes in nationol economy by direct foreign currency eorning os well os indirectly by creating the scope of establishing backward Iinkoge industries, banks, insurance. ports, hotels & tourism, transport telecommunicotion etc. It also affecls positively in increasing the purchasing power of the people and that helps to expand our consumer market. Although Bangladesh's RMG sector enjoys different quota 'y,tem and other facilities under international policies and got roam of facilities by the govemment as well in export. But in the changed condition of international policies as well as post WTO environment Bangladesh is facing a challenge in this ,ector from early nineties. The paper discussed about the growth in the garment sector during the 80's and 90's and related technological. socio-economical and fiscal policies. The changing situation of highly competitive market arisen due to introduction of wro, globalization, SA8000 multi fiber act. generalized system of preference, labor market. micro-macro environment etc has somewhat leod to the stagnation and erosion in the sector. The reasons for such stagnation have been identified and suggestion, ore mode for overcoming all the related extemal ond intemal constraints. The external constrains includes duly free access, the integrated framework for lechnical assistance, compliance with non-tariff bamers, market diversification etc. The internal constroints such as reducing the lead lime. backword linkage, port locilities, infrastructurel problems. enhancing productivity, strengthening the efficiency, training, improving industrial relation etc ore included and suggestion were made for the covering the slagnalion loward achieving Ihe growlh.