A Poor Country Clothing the Rich Countries: Case of Garment Trade in Bangladesh

Authors

  • Muhammad Mahboob Ali Daffodil International University; Presidency University
  • Anita Medhekar Central Queensland University

DOI:

https://doi.org/10.17059/2016-4-19

Keywords:

Bangladesh, Rana Plaza, garment industry, women labour, textile, trade, multinational, brands, wage, safety, sustainable business

Abstract

The ready-made garment industry of Bangladesh is one of the largest formal manufacturing sectors. It has played a key role in the country’s process of industrialisation, empowerment of women, export oriented development and growth. Workers from poor socio-economic backgrounds are working in the garment industry. Their health, safety and working conditions are very poor and not protected. There is a lack of regular inspection and compliance with local law in buildings and factories. This led to the collapse of the eight story Rana Plaza building in the capital Dhaka on the 24th of April 2013, “killing 1,100 workers and 2,500 injured”2. The main aim of the study is to assess the impact of Rana Plaza Tragedy, where RMG workers make garments for multinational brands of Australia, Europe and USA, and the advantage which took these companies of the absence of labour laws, workplace health and safety standards, building standards, long working hours and low wages in Bangladesh. The study used both primary and secondary data including related case studies. The practical application of the study is to develop formal ethical, labour-law, health and safety standards for a factory worker; construction; institutions and courts for monitoring the supplier’s behaviour onshore and large multinational firms offshore. The study recommends to protect the rights of women workers who are sowing garments for the fashion conscious consumers from the developed countries. Future research will explore inclusive growth for workers and how to stimulate inclusive sustainable business for export led garment industry.

Author Biographies

Muhammad Mahboob Ali, Daffodil International University; Presidency University

PhD in Economics, Professor, Daffodil International University; Former Vice Chancellor, Presidency University (Bangladesh, 1207, Dhanmondi 102, Shukrabad; Dhaka; e-mail: pipulbd@gmail.com).

Anita Medhekar, Central Queensland University

Master of Economics, PhD (Researcher), Senior Lecturer in Economics, School of Business and Law, Central Queensland University (Building 34/2.13, Off Bruce Highway, 4702, Rockhampton, 443256, Australia; e-mail: a.medhekar@cqu.edu.au).

References

Ahmed, F. E. (2004). The Rise of the Bangladesh Garment Industry: Globalisation, Women Workers, and Voice. NWSA Journal, 16(2), 34–45.

Rhee, Y. W. (1990). The catalyst model of development: lessons from Bangladesh’s success with garment exports. World Development, 18(2), 333–346.

National Human Rights Commission, Bangladesh. (2013, June). Security and Safety Net of Garments workers: Need for Amendment of Labour Law, 18.

Ahmed, S. R. M., & Islam, N. (2013). Labour Unrest in the Ready-Made Garment Industry of Bangladesh. International Journal of Business and Management. Canadian Centre of Science and Education, 8(15), 68–79.

Berget, A. (2011). Bangladesh’s ready-made garments landscape: The challenge of growth. McKinsey & Company Report, 4–19.

Alam, M. S. (2016). Dialogue on Sustainable Workforce and Supply Chain Reforms for Vision 2021. Conference on ‘Ethics, Efficiency and Productivity in the RMG sector: Towards $50 billion Exports 2021’ Organized by University of Dhaka, Monash University, and University of Warwick, UK, 1–24.

Kabeer, N. (2001). Conflicts over credit: re-evaluating the empowerment potential of loans to women in rural Bangladesh. World Development, 29(1), 63–84.

Unnayan, O. (2014). State of Unemployment and Poverty. Bangladesh Economic Update, 5(5), 13–23.

Salway, S., Rahman, S., & Jesmin, S. (2004). A profile of women’s work participation among the urban poor of Dhaka, World Development, 31(5), 881–901.

Schregel, J. (1976). Workers’ participation in decision making within undertakings. International Labour Review, 113(1), 1–24.

Rahman, R. I., & Khandker, S. R. (1994). Role of targeted credit programs in promoting employment and productivity of the poor in Bangladesh. Bangladesh Journal of Development Studies, 22(2/3), 49–92.

Kabeer, N., & Mahmud. S. (2004). Globalisation, gender and poverty: Bangladeshi women workers in export and local markets. Journal of International Development, 16, 93–109.

Kabeer, N. (2003). Mainstreaming Gender in Poverty Eradication and the Millennium Development Goals. Commonwealth Secretariat and IDRC: London and Ottawa, 3, 1–17.

Ahmed, N., & Dev. N. (2014, May). Improving wages and working conditions in the Bangladeshi garment sector: the role of horizontal and vertical relations. Capturing the Gains, Working Paper, 40, 1–21.

Sohail, A., & Alam, Q. (2016). How to develop a sustainable workplace and 5Es. Paper presented at a seminar titled ‘Ethics, Efficiency and Productivity in the RMG sector: Towards $50 billion Exports by 2021’ jointly organized by University of Dhaka, Monash University, Australia & University of Warwick, UK, 1–18.

Sinkovics, N., Hoque, S. F. & Sinkovics, R. (2016). Rana Plaza collapse aftermath: is CSR compliance and auditing pressures effective? Accounting, Auditing & Accountability Journal, 29(4), 617–649.

Chandran, R. (2016). Case 3: Three years after Rana Plaza disaster, has anything changed? Retrieved from: http://www.reuters.com/article/us-bangladesh-garments-lessons-analysis-idUSKCN0XJ02G, 21. (date of access: 23 April, 2016).

Huda, M. N., Shamsur, A. & Shahjada, A. M. (2016). The role of stakeholders in preventing irregularities and corruption prevailing in the supply chain of the RMG sector. Transparency International Bangladesh (TIB), 1–56.

Saxena, S. B. (2010, July). Competitiveness in the Garment and Textiles Industry: Creating a supportive environment. A Case Study of Bangladesh, Occasional Paper No. 1. The Asia Foundation, 6–35.

Stiglitz, J. (2002, September). Developing policies in a world of globalization. Paper presented at the seminar “New International Trends for Economic Development” on the occasion of the fiftieth anniversary of the Brazilian Economic and Social Development Bank (BNDES), Rio Janeiro, 12–13, 1–25.

Downloads

Published

28.12.2016

How to Cite

Ali, M. M., & Medhekar, A. (2016). A Poor Country Clothing the Rich Countries: Case of Garment Trade in Bangladesh. Economy of Regions, 12(4), 1178–1193. https://doi.org/10.17059/2016-4-19

Issue

Section

Research articles