Bangladesh Garment Industry

Abstract

Defying overwhelming odds, Bangladesh has graduated from least developing to lower-middle-income country in 2015, 44 years after independence. One of the pillars of the transformation and development of the country is the contributions from the ready-made garment (RMG) industry. From less than a million dollar industry in the early 1980s, the Bangladesh RMG industry is now a $31 billion industry, accounting for 11% to GDP and 80% of exports of the country. The development of the garment industry has triggered a social change in Bangladesh by generating considerable female employment outside the family unit. In spite of these positive economic and social impacts, the RMG industry in Bangladesh is well known for its failure to ensure the safety of workers at workplaces, which was recently exposed in the Rana Plaza tragedy. The uncertainty of the future of the industry that emerged was tackled because of the installment of the transnational governance initiatives but the sector is still struggling with future of labor governance, impact of COVID-19 in the era of fast fashion business model and the continuous reduced prices from the buyers.