Sicily Garments

Current Scenario of the Bangladesh Garment Industry

The significant success of readymade garment exports has played a vital role in social and economic developments in Bangladesh. With over one and a half million women workers employed in semi-skilled and skilled jobs producing clothing for exports, the development of the apparel export industry has had far-reaching implications for the society and economy of Bangladesh. The establishment of more than 3000 garment factories yields about 74% of the country’s foreign currency earnings. More than 15 million people work in related industries among which 85%are women from the rural areas. The export oriented garment industry first appeared in Bangladesh in 1977-78 generating only 1 million export earnings and now it is increased to US $5.2 billion.

Role of MFA and the Quota System

In the year1974, MFA was introduced as a short term protection measure for the textile and clothing industries in developed countries against the fierce competitions and trade imbalances created by the low-priced apparel manufactured in developing countries. As developed countries around the world has the strong financial back-up, modern technologies and good quality of products; they have created a trade imbalance. MFA has introduced quota system for the developing and under-developed countries. MFA gives a chance to the developing and under-developed countries to make their position in the global apparel market by imposing a quota system.

Quota of MFA creates limits for the rich, industrialized, developed countries so that the other countries can sell their products and can actually get a share in the international market. It helps the overall economy and helps in maintaining balance. It gives an opportunity to all the developing and under-developed. Usually, the developed countries act as a buyer and under-developed countries work as the producers and sellers of the RMG. MFA has made Asia a good exporting zone of RMG with the...