bangladesh textile industry

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Bangladesh Textile Industry Kwstaninidi Violeta Laimou Xristina Loukopoulos Giwrgos Bellou Electra

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Bangladesh Textile Industry

Kwstaninidi VioletaLaimou Xristina

Loukopoulos Giwrgos Bellou Electra

What is the Textile Industry

Associated with the design and production of cloth goods

Involves importing and exporting natural and man-made fabrics

Role of Textile Industry in the Economy of Bangladesh

Textile industry in Bangladesh accounts for 45 percent of all industrial employment

Contributes 5 percent to the total national Income

Bangladesh Export

78% of the country’s export earnings come from textiles and apparel

Bangladesh exports its apparel products worth nearly $5 billion per year

Country April 2013* Aprin 2014* %Change

China 11,412 11,49 0,68

Vietnam 2,667 3,081 15,51

India 2,215 2,347 5,96

Indonesia 1,917 1,838 -4,11

Bangladesh 1,781 1,778 -0,21

Mexico 1,473 1,487 0,97

Pakistan 982 1,006 2,44

Cambodia 873 891 2,12

Honduras 725 745 2,87

Salvador 544 568 4,31

WORLD 31,864 32,894 3,23

TOP 10 TEXTILE EXPORTERS TO THE US IN JAN-APRIL 2014

Labor costs are low, investment by textile manufactures in productivity- boosting technology lowered the labor costs in Bangladesh making one of the world’s low-cost producers

The advantage is that big importers increased their purchases at low prices

Strong network of supporting industries Many Western importers looking to diversify their supply

sources

From an economic perspective, was the shift to a free trade regime in the textile industry good for

Bangladesh?

Applying in a strictly economic calculus, the following seems to be the case: Benefit of Western retailers because they get a low cost source

apparel Benefit of Western consumers gain because they get low priced

clothing Benefit of textile companies in Bangladesh gain from the

increased demand for their output Benefit of textile companies in Bangladesh gain because they

get employment opportunities

Economically who benefit when retailers in Europe and the US source textiles from low-wage

countries such as Bangladesh?

The losers in this process are textile manufactures in other countries, who have lost business and jobs to Bangladesh

It would seem in aggregate that the gains outweigh the losses, and indeed, that is the standard prediction of economic theory regarding free trade

Who might lose? Do the gains outweigh the losses?

What are the causes of the weak safety record of the Bangladesh garment industry?

No safety standards in place to protect the employees Conversion of many old, ill equipped buildings into

factories

Do Western companies that import garments from Bangladesh bear any responsibility for what happened at the Rana Plaza

and other workplace accidents?

RESPONSIBILITY OF BANGLADESH

GOVERNMENT

The government has a duty to protect

Bangladesh people against the human right abuses by third parties

RESPONSIBILITY OF WESTERN COMPANIES

AND PEOPLE

Western companies continue to demand

large amounts of clothing with low

price

Western people still buy clothes of this companies without care if people die

Do you think the legally binding agreement signed by H&M, Zara, Tesco, and others will make a difference? Does it go far enough?

What else might be done? First significant effort to acquire a moderate improvement in the

working conditions, compared to the current scheme, may be a start of an international motivation to inspect these conditions. Although a common plan is needed

In order the agreement to go far enough, a supervision of the International Judicial Communities (such as the International Court of Human Rights) per year should be included

The agreement could include the reference of strong penalties in both manufactures and the local authorities who do not apply the rules or remain tolerant to the trespassing of the law

What do you think about Walt Disney’s decision not to purchase merchandise from Bangladesh? Is

this an appropriate way to dealing with the problem?

The decision was right because this was the appropriate response to a lack of governmental labor enforcement. "After much thought and discussion we felt this was the most responsible way to manage the challenges associated with our supply chain", said Bob Chapek, president of Disney Consumer Products.

What do you think of Walmart’s approach to this problem? Is the company doing enough?

What else could it do? Walmart said that it would hire an outside auditor to inspect

279 Bangladesh factories and publish result on its website by June 1, 2013

Forced factory owner to make necessary renovations

With this action Walmart helps to improve workers labor standards

Walmart must commitments the suppliers to meet strict safety standards and must measure how well suppliers are meeting Walmart’s expectations.

THANK YOU FOR YOUR ATTENTION