Macroeconomic Analysis of Bangladesh's Ready-Made Garments Industry The Ready-Made Garments (RMG) industry contributes to the Bangladesh economy in a distinctive manner. The last 20 years witnessed unparalleled growth in this sector, which is also the largest exporting industry in Bangladesh. It has attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. The industry plays a significant role in terms of employment generation. Nearly two million workers are directly and more than ten million inhabitants are indirectly associated with the industry.
By bringing a large number of manufacturers and consumers together at a single point, retailers make it possible to sell the products and to do their business. India's retail and logistics industry gives employment opportunities to 40 million Indians which amounts to 3.3 per cent of the total Indian population. Worth of Indian Retail Industry is USD 270 billion and it is growing at the rate 13 per cent per annum. Among this, organized retail share is 4.6 per cent which amounts to USD 12.42 billion. Notable fact is that 85 per cent of the India’s urban retail market is focused
In our world some of the largest companies and businesses are producing their products in sweatshops. Wal-Mart, JC Penney, Sears, and Nike are just a few of the big name companies that use sweatshops. Sweatshops are work establishments where employees are forced to work extremely hard in poor conditions for low wages. These companies and businesses that have sweatshops are taking advantage of their workers from overseas countries and it is unfair for them (Background). Therefore, something certainly has to be done and they need to be put to a stop.
In recent years; the readymade garment sector has witnessed vertical growth. It accounted for nearly Rs. 20,000 crore which shows a growth rate of 20 % .The biggest group of the readymade garments includes the age group of 16-35, which is very brand conscious and gives main concern to high quality branded readymade garments. This sector only covers the 21% of the readymade garment industry. Apparel manufacturing industry has various product ranges.
Today H&M is the second most successful international clothing retailer. H&M is available to 54 countries with 3,200 different stores worldwide. H&M provides jobs for 116,000 people globally and plans to improve their living situations by increasing their living wages in the near future. H&M is known for its inexpensive quality “in style” clothing. H&M’s prices makes it for a regular income family to buy “chic” clothing for the whole family.
They hired workers for low wages and long hours on a work when needed basis. Americans began to object to this almost right away, as early as the 1830’s. In 1880, large numbers of immigrants began to come to America, and the problem became serious. The owners of sweatshops took advantage of the immigrants’ ignorance and poverty to get them to work for low wages. During the 1900’s, many states began to pass laws prohibiting products from being manufactured under sweatshop conditions.
Balko also uses the argument that the workers willingly work in the current environments. Some of the arguments against sweatshops raised by Americans is the they take jobs away from the American people. In the job force it is becoming harder to find an open position any where. Instead of keeping the factories here the companies are shipped over seas, causing millions of job opportunities for Americans to be lost. Some arguments raised by the United Students Against Sweatshops (USAS) are the poor working conditions, low wages, long hours, and children in the factories.
One might think, "Yeah, that's in the past, but we fixed that right?” This assumption is wrong. Through globalization, workers in third world countries have underwent these horrible conditions. In the mid to late 1990's the anti-sweatshop movement took hold when people discovered that most of their clothes were made in these types of places. New laws and codes have been implemented but some companies like The Gap and Benetton's were discovered violating them in 2013, after their factory collapsed and killed thousands. Many multinational companies defend themselves under the pretext that sweatshops help the impoverished people by employing them and are just a side effect to globalization that is necessary to stay competitive in the world market.
Third World Sweatshops Large corporations such as Nike, Gap, and Reebok and many others from the United States have moved their factories to undeveloped nations; barely pay their employees enough to live on. Countries such as China, Indonesia, and Haiti have readily abundant cheap labor. There should be labor laws or an obligation of respecting workers to provide decent working conditions, fair wages, and safety standards. To begin with, improve their working conditions. Promulgated mental and physical abuses sweatshops don’t delivered alleviate poverty.
The garments industry, which is responsible for 80% of the national export earnings is mainly located in Dhaka. Dhaka megacity contributes to about 13% of the country’s total GDP (Zaman, 2010). Alongside the formal opportunities for employment, there is a vast range of informal employment opportunities which is also a major contributor to the overall national economic