Economy of Bangladesh

Bangladesh has one of the best sectors of the world which s Ready –Made Garments (RMG) sector. Economy of Bangladesh is largely dependent on that sector. Previously our country’s economy was totally dependent on agriculture. But passing over the time by getting opportunities, RMG sector has proved it’s potentiality to the world. It started to grow in our country at 1980’s. At that time, there were only few entrepreneurs who were eager to take this sector as a business. Beside this, there was no potential worker for garments sector. But In today, it’s making employment of 3.5 million people where significant number of people is women.  So there security and financially supporting activity from the industry is very demanding. In few cases and recent occurrences made our sector’s image negative and creates a negative impression to the world. In consequences, foreign buyers were denying to take products from us and other countries like china and Vietnam are rapidly grabbing the market. So if we wnt to hold our first position in the world, we have to provide security, financial solvency etc to the labor. In addition to that, we need to make the rules and laws strict for every law breakers.

Background of RMG

In 1950’s western world became so much conscious about labor rights and labor laws. They started demanding higher pay including security. At that time retailers started searching for cheap labor including lower shipping cost. That time Taiwan and Korea came in action. But after MFA agreement, developed countries were imposed to make a quota opportunity for Korea and Taiwan according to that agreement.  After that retailers again started searching for a country for cheap labor cost and shipping cost. At that time Bangladesh came in action and few people of our country who were trained by Korean people, started to establish their own manufacturer company for ready- made garments.

Our RMG Sector

Currently, in our RMG sector holds 4490 manufacturing units. Ready- Made Garments contributes 75% export earnings of our country. It contributes 13% of our GDP at 2012 where it was only 3% at 1991. In 2012, it earned 14.37 billion. The RMG industry is highly dependent on imported raw materials and accessories because Bangladesh does not have enough capacity to produce export quality fabrics and accessories. They buy spins from India, machineries from china and cottons from Taiwan. After that they actually bring all this on a process and produce final goods. USA is the largest importer of Bangladeshi RMG products and then Germany, UK, France and EU countries.