INTERNATIONAL TRADE IMPLICATIONS AND FUTURE OF READY-MADE GARMENTS SECTOR OF BANGLADESH
Abu Yousuf Md. Abdullah*
ABSTRACT
The hundred percent export-oriented RMG industry has experienced phenomenal growth during the last 15 years. Within a very short period of time, it has attained great importance in terms of its contribution to GDP, foreign exchange earnings and employment and also as a vehicle of social changes. The export earning data of Bangladesh, shows that in 19884-85, ready-made garment sector earned 12.39%( $116 million) of the total export. This was raised to 36.46%($471 million) in 1989-90. This share rapidly went up to 53.36%($1064 million) in 1991-92. Surprisingly, the share showed no increase for the last three years. Bangladesh garments products are facing various barriers and difficulties in the international market. Garments' contribution to the total export earning remained constant at around 52% for the last two years (52.84%) in 1994-95 and 52.63% in 1995-96. This stagnant situation demands immediate attention of the international market researcher and the government as well. This research therefore, attempts to assess the present status of the RMG sector and suggests strategies to overcome the present crises.
1. INTRODUCTION
The most youthful export sector in Bangladesh, the RMG industry, has been earning over 60% of the foreign currency for the country during the last few years. In 1995, it contributed 66% to the nations total earning from export. The membership of BGMEA, which started with 19 (Nineteen) in early 1983, has reached 2383, as on August 31, 1996, increasing by 25% each year. The growth of garment exports in dollar terms is in harmony with the ...