1. ECO 501 Managerial Economics
Section:2

2. 12/07/2014
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ID Name
13264078 Shahriar Rawshon (Team Leader)
13264069 Anik Mondal
13264070 Shahreen Shabnam
13364058 Umama Akter
13164023 Pallab Kanti Das

3. Introduction
Objective of the Study
Limitation of the Study
Methodology
Contribution of RMG Sector in Economy
Economic Growth Analysis of RMG Sector Present and Past
Social Impacts of the RMG Sector
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4. Introduction
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5. To evaluate the
economic impacts of
RMG sector in
Bangladesh in terms of
GDP, GNP, National
income and Total
exports.
To evaluate the social
impacts of RMG sector
in Bangladesh in terms
of women
empowerment, savings,
child labor, population
control and
employment.
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6. The information gap between the different
sources of statistical and historical data,
Available data was poorly updated,
Lack of cooperation on sourcing data
from some important organizations.
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A Number of Limitation

7.  Secondary data analysis forms the basis of the
report
 Sources of secondary data:
 Literature review
 Case studies in other countries,
 Journals,
 Research articles,
 Thesis papers,
 Newspapers,
 Online news and survey reports,
 Different internship reports and
 Books and articles from libraries.
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8. GDP: US$ 112 billion (FY 2011-12)
Annual Average Growth Rate: 6.30 % (FY 2010-13)
Point to point Inflation rate of 2012-13 is 6.78%
Contribution of Manufacturing to GDP: 19.54%
Foreign Direct Investment (FDI) in 2012 : $1.3 billion
Sectoral Contribution of the Industry is 32.0 % (GDP Share
30.4%( FY 2009-13)
Export Growth is 10.7% in FY 2013 (July-May)
Foreign Exchange Reserve Growth: 47% (FY 2013)
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9. Agriculture
Manufacturing and industry
• RMG and Textiles
• Small and Medium Enterprises
• Export
Power and Energy Sector
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10. GDP Growth by sector
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11. 75.65%
4.22%
2.60%
2.19%
1.77%
1.21%
0.72%
0.06%
11.56%
Major Products Export From Bangladesh And
Contribution to GDP
RMG
Frozen Food
Jute Goods
Leather
Chemical Products
Raw Jute
Agri Products
Tea
Others
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12. Fiscal Year 2007 -08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Export as % of NI 9.6% 9.8% 9.1% - - - -
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0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2007 -08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Export as % of NI
Export as % of NI

13.  Export Earnings
 Major Player in the Exports
 Helping Industrialization
 Employment Generation
 Women Empowerment
 Contribution to the GDP
 Growth of Backward and Forward Linkage
Industries
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14.  15% cash subsidy of the fabric cost .
 Establishment of new textile/RMG mill in the private
sector
 Joint ventures with the existing textile/RMG mill
 Public sector textile mills that are being privatized
 Indirect investment through financial services and/or
leasing
 Introducing back to back LC
 Warehouse facilities
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15. 0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2007 2008 2009 2010 2011 2012 2013
22,193
10,730 9,200
26,566 26,174
14839
81667
Textiles and Apparels
Textiles and Apparels
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Source: DIPP

16.  The sector contributes 38% industrial value addition.
 Earns around 78% of total export earnings.
 Employs around 4.5 million workforce of which
majority is women
 Generates huge cliental base for Banking, Insurance,
Shipping,
 Transport, Hotel, Cosmetics, Toiletries and related
other economic activities.
 Provides indirect employment to 0.80 million
workforces in accessories industries related to
garments.
 Provides 0.2 million job to waste recycle industry
related to RMG sub- sector.
 Contributes 10.50% to GDP through RMG sub-sector.
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17. 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
EXPORT OF RMG (IN MILLION
US$)
9211.23 10699.8 12347.77 12496.72 17914.46 19089.69 21515.73
TOTAL EXPORT OF BANGLADESH
(IN MILLION US$)
12177.86 14110.8 15565.19 16204.65 22924.38 24287.66 27018.26
0
5000
10000
15000
20000
25000
30000
Value
Comparative Statement on Export Of RMG And Total Export Of
Bangladesh
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Source: Data Source Export Promotion Bureau Compiled by
BGMEA

18. Figure : Comparative Statement on
Export Growth Of RMG In Bangladesh
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0
75.64
75.83
79.33
77.12
78.15
78.6
79.63
% OF RMG'S TO TOTAL EXPORT
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13

19. Total Apparel Export In Mn.UD$ Total Apparel Export In Mn.Dz
9211.23
10699.8
12347.77
12496.72
17914.46
19089.73
21515.73
0
5000
10000
15000
20000
25000
TOTAL APPAREL
EXPORT IN MN.US$
WOVEN
TOTAL APPAREL
EXPORT IN MN.US$
KNIT
TOTAL APPAREL
EXPORT IN MN.US$
TOTAL
0
200
400
600
800
1000
1200
1400
1600
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
332.62
389.03
460.51
465.5
1345.4
1276.7
1487.11
TOTAL APPAREL
EXPORT IN MN.DZ
WOVEN
TOTAL APPAREL
EXPORT IN MN.DZ
KNIT
TOTAL APPAREL
EXPORT IN MN.DZ
TOTAL
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Source:DataSourceExportPromotionBureauCompiledby
BGMEA

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0
10
20
30
40
50
60
70
80
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Woven Knit Total
EU % of World 42.81 46.31 46.87 72.87 73.04 70.55 58.72 59.59 58.4
% of USA 41.58 36.61 35.02 11.8 10.69 10.8 25.82 23.73 23.22
% of Canada 5.48 4.93 4.69 4.57 4.24 4.41 4.99 4.58 4.56
Growthinworld
EXPORT growth to the World
Source: EPB, Compiled by: RDTI Cell, BGMEA

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2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Woven Knit Total
EU Growth% 23.18 16.35 0.27 6.67 8.13 10.45
USA Growth% 0.27 9.96 -9.39 11.53 -2.07 10.31
Canada Growth% 2.44 9.57 -7.18 14.97 -2.21 12.05
-15
-10
-5
0
5
10
15
20
25
Growth%
EXPORT Growth Trend
Source: EPB, Compiled by: RDTI Cell, BGMEA

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13.88
14.96
0.05
10.43
6.56
12.71
0
2
4
6
8
10
12
14
16
2010-11 2011-12 2012-13 2010-11 2011-12 2012-13 2010-11 2011-12 2012-13
Woven Knit Total
Total % Growth
% Growth
Source: EPB, Compiled by: RDTI Cell, BGMEA

23. 11,575.85
12,571.46
5,407.08
5,872.12
0.00 2,000.004,000.006,000.008,000.0010,000.0012,000.0014,000.00
Knitwear
Woven
Performance over Target of
RMG in 2013-2014
Performance Over Target 2013-14 (Jul-Dec)
Target (million USD) 2013-14
0
1000
2000
3000
4000
5000
6000
7000
8000
2011-12 2012-13
6928.69
7306.28
Value
FY Year
Region wise Export Performance FY
2011-12 & 2012-13
EU
USA & Canada
European Free
Trade
Association
Latin American
Integration
Association
Emerging
Markets
Others
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Source: Export Promotion Bureau, Bangladesh

24. Women
Empowerment
Savings
Child Labor
Population
Control
Employment
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Bangladesh India Pakistan Nepal Sri Lanka
90%
34%
10%
15%
87%
76%
13%
60%
38%
52%
Female Contrbution in South Asia
Percent of Female Percentage of Total Export

26. Regular earning
Workers investments on family pension schemes etc.
create savings.
15 years and above had their own bank accounts.
A higher proportion of workers (30 percent) had bank
accounts in the EPZ.
Women are on average better savers than men.
Women save about 7.6 percent of their otherwise small
income.
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27. In 2000 a second MOU was signed between BGMEA and ILO focused
•A fact-finding survey to determine the extent of child labor
in the garment industry;
•The establishment of an education program;
•The establishment of a monitoring and verification system;
•The provision of income compensation in the farm of a
monthly stipend of Tk. 300, the equivalent of (at that time)
US$ 7
ILO 2005 baseline survey on child labor in hazardous situations found
•The one sector where legal restrictions on use of child labor
showed to be successfully forced was the Ready-made
Garment industry, while around 532,000 child laborers were
working in hazardous situations in other industries.
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28. Employment opportunities especially for
women created positive impact on family
planning and population control in the country.
Independent working-women are getting more
conscious about the advantage of a small family.
Working adolescent girls tend to avoid early
marriage.
The mean age at marriage for girls working in
RMG factories tend to be higher than the
national average.
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Source: Bangladesh Garment Manufacturers and Exporters Association
(BGMEA)
2.2
2.4
2.8
3.5 3.6 3.6
2005-06 4220
Factory
2006-07 4490
Factory
2007-08
4743Factory
2008-09 4925
Factory
2009-10 5063
Factory
2010-11 5150
Factory
Employment (in million workers)
Employment (in million workers)

30. Conclusion
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