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Garments Business in Bangladesh

In: Business and Management

Submitted By Companion
Words 21242
Pages 85
1. Introduction

After independence in 1971, Bangladesh moved to a private sector led export oriented economy in late 1970’s from a highly protected government led economy in search of prosperity and growth. Even though there was little growth and development in the country as a whole; one particular sector, the Readymade Garment (RMG) industry was the beneficiary of privatization. From 0.2 percent in 1980’s, it came to 75 percent in 2004-05 of country’s total export. This industry employs 1.8 million people of whom 90 percent are women. Trade liberalization as a form of globalization followed by the imposition of quotas by US was the key input while entrepreneurs played the anchor role to take advantage of these conditions. Government also came forward with favourable policies for further growth.

However, the quota oriented worldwide apparel trade came to an end on December 2004. What is going to happen in the Bangladesh apparel industry, which was predicted to lose its stake in an open market? This dissertation aims to discover the condition of the apparel industry as a whole at present and how the firms adjust to the situation with their internal rearrangement. Additionally, issues considered as vital for industry’s growth, such as infrastructure, information technology in the form of database, internet and software, and capacity building will be discussed.

The dissertation starts with the global picture of apparel trade, and with a brief description how this trade was ruled by Multi-Fibre Arrangement (MFA) from 1974 to 1994 as designed by USA and later by Agreement on Textile and Clothing (ATC) under World Trade Organization (WTO) rule. This section also describes the importance of apparel industry in the context of Bangladesh, its market and product concentration and its contribution to the greater society and the major events that took place in

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