the slides are prepared for the purpose of the final project of a course named Trading for Development in the Age of Global Value Chain- WDR 2020.course conducted by the World Bank Group via edX platform.

1. Value Chain and RMG sector
of Bangladesh

2. Target Audience
The policy makers of Bangladesh
Trade experts
Global Brands

3. What is GVC?
 A global value chain (GVC) is the series of stages in
the production of a product or service for sale to
consumers. Each stage adds value, and at least two
stages are in different countries.

4. Share of RMG sector in total export of
Bangladesh
 In 1983 it was 3.89% of RMG’s to total export , while in 2019 it is 83%.
 In 2020 amount of RMG export is 27949.19 ( US million dollar)
 Figure :Bangladeshi clothing exports 1989–2013 ($ms).
 Source: ITC Trade Map. Mirror data

5. Effects of RMG dominated GVC in Bangladesh
economy
 RMG Sector has emerged as the single most
important contributor towards employment
generation, income and foreign earning, and growth
of Bangladeshi economy.
 country’s ready-made garment industry employs 3.6
million people, 53 percent of whom are women.

6. Effects of RMG dominated GVC in Bangladesh
economy
 In fiscal year (FY) 2017-2018, the percentage of
ready-made garments (RMG) contribution to gross
domestic product (GDP) is 12.26% but it was only
2.74% in FY 1990-199.
 The share of people in extreme poverty from 44
percent to 15 percent in 2016

7. Effects of RMG dominated GVC in Bangladesh
economy

8. Major destination of RMG exports from Bangladesh in
2018

9. Challenges of RMG sector in
Bangladesh
Unskilled worker
and unrest
among workers
regarding wages
Insufficient
infrastructure
Safety issue
Raw materials Energy crisis

10. policy suggestions
 To develop productivity and efficiency level,
capacity building training for employers and
workers in RMG sector should be undertaken.
 The government should increase minimum wage
level.
 Global brands have a moral and ethical
responsibility to exercise their collective power to
that effect and to improve labor conditions and
broader governance of the factories with whom
they have commercial relationships.

11. Policy suggestions
 RMG owners must pay adequate attention to
workers welfare, safety, and health, and the buyers
should help to increase the supply chain’s efficiency
through investment in backward industry.
 Multi-modal transport facilities, sound infrastructure
facilities including consistent supply of energy
through public-private initiatives is to be set up.

12. References
o World Bank Report 2020: Trading for Development in the age of
Global value chains.
o Islam, M.S., Rakib, M.A. and Adnan, A., 2016. Ready-made
garments sector of Bangladesh: Its contribution and challenges
towards development. Stud, 5(2).
o Mia,S.,Akter,M.,2019. Ready-Made Garments Sector of
Bangladesh: Its Growth, Contribution and Challenges .
o Islam, M.S., 2020. Ready-made garments exports earning and
its contribution to economic growth in Bangladesh. GeoJournal,
pp.1-9. Uramoto, Y. and Nachum Prof, L., 2018. Corporate
Governance & Sustainability of the Global Value Chain:
Bangladesh Ready-Made Garment Industry Post-Rana Plaza
investigation into fairness of value appropriation by global
apparel brands, manufacturers and labour.

13. Thank you 