2010 and Beyond

Whenever I engage in intellectual discussions with cotton and textile experts around the world, I invariably face a question how did it happen? Obviously the question is how the textile sector in Bangladesh has shown a phenomenal growth through last decade? I recall a similar discussion with Dr. Terry Townsend of ICAC a couple of years ago. After discussing a number of world issues on cotton and textiles, our discussion boiled down to Bangladesh textile industry. Terry raised a thought provoking question, what did Bangladesh do differently that triggered the textile boom? Well the question is very simple but the answer requires deep thoughts. This article is making an attempt to answer this well posed question. There are three synergic and intrinsic factors that triggered the textile boom in Bangladesh. They are resources, opportunities and policy decision. The resources include abundant labor forces, low cost energy and natural gas. Abundance in labor forces provides Bangladesh textile industry with a competitive advantage in producing labor intensive goods. Self-sustained domestic market of 140 million with a growth rate of 3% is also a great support for the industry. In recent years Bangladesh has shown a reasonable increase in per capita income and improved life styles for middle class. Above all the dedicated and sincere work force, who are eager to work extended work hour when needed to meet the production target is the key element to the success of Bangladesh textile industry. Bangladesh had had a tremendous opportunity to gain access to European and the U.S. market through MFA and GSM agreements for its Ready Made Garments (RMG). Bangladeshi entrepreneurs successfully took this opportunity to the fullest extent to expand and secure their markets. The policy decision made by the Government basically buoyed the textile growth. The Government policy of liberalization of the economy encouraged private sector investments.