Impact of Garment Industries on the Economy of Bangladesh
Bangladesh is currently one of the 12 largest exporters of garments products in U.S.A and U.K. In spite of this, the real situation does not come in front of the world. That is they are not becoming influenced like before any more. We can see this by the price level of our garments products in the world market. The quantity we are exporting is huge but at a very low price. In the statistics the impact may be huge but the condition of Bangladesh is not improving at that satisfactory level. In the term paper we will try to define the cause why the real situation is like this. It is necessary because the sector is very promising in the environment of bbangladesh.
Purpose and Scope:
Bangladesh has a great comparative advantage in garments products that is low labor cost. Because of this advantage Bangladesh can produce products more easily than other countries. But labor is cheap here because people who are related to this sector are from very poor background. Most of them are unskilled, uneducated. But if some steps are taken to improve the quality of labor, the proper benefit of this comparative advantage can come out. The purpose of our term paper is to overcome this problem and other related problems like cost of raw materials, Insufficiency of loan in time, uncertainly of electricity, delay in getting materials, lack of communication, problem in taxes etc.
But in spite of these problems this can be the most profitable sector of Bangladesh if we try to take some steps as follows: • Production of sufficient raw materials in the country. • Imparting training to make skilled workers. • Reduction of VAT and taxes • assurance of safety, salary and other facilities of the workers • More advanced of EPZ • Proper advantage of water houses • Removal of export problems etc.
Bangladesh is a third world country. As other third world countries,