The document discusses the importance of industrialization for economic development in developing countries like Bangladesh. It notes that Bangladesh has developed a large textile industry, particularly in ready-made garments, which accounts for 80% of exports and employs 3.5 million workers. While working conditions are not ideal, the industry provides economic opportunities for women and has contributed significantly to Bangladesh's economic growth. The government has worked to increase minimum wages in the industry in response to labor unrest.

1. It is obvious that industrialization is the backbone for economic advancement in any nation, be itcapitalist, socialist
or a mixed economy. This is so because it is through the establishment ofindustries, both small and large that a natio
n could produce most of the goods and services itspeople require. Economists from different schools of thought have
been unanimous that one ofthe parameters used to measure levels of development of any nation is the extent to whic
h thenation can provide its citizens with the basic goods and services required to maintain a good lifein the society.
Developing countries such as ours are today in dare need to industrialize because they want toattain economic self-
sufficiency. The only way to go about this is through the establishment ofsmall, medium and large scale industries. I
ndustries in developing countries can strivesuccessfully among otherthings, if enough funds are available for the tak
e-off and expansion.
Bangladesh's textile industry,which includes knitwear and ready-made garments (RMG) along with specialised
textile products,is the nation's number one export earner, accounting for $21.5 billion in 2013 – 80% of
Bangladesh's total exports of $27 billion.[32] Bangladesh is 2nd in world textile exports, behind China, which
exported $120.1 billion worth of textiles in 2009. The industry employs nearly 3.5 million workers. Current exports
have doubled since 2004. Wages in Bangladesh's textile industry were the lowest in the world as of 2010. The
country was considered the most formidable rival to China where wages were rapidly rising and currency was
appreciating.[33][34] As of2012 wages remained low for the 3 million people employed in the industry,but labour
unrest was increasing despite vigorous government action to enforce labour peace. Owners of textile firms and their
political allies were a powerful political influence in Bangladesh.
Readymade Garment Industry in Bangladesh
The urban garment industry has created more than one million formal sectorjobs for women, contributing to the
high female labour participation in Bangladesh.[36] While it can be argued that women working in the garment
industry are subjected to unsafe labour conditions and low wages, Dina M. Siddiqi argues that even though
conditions in Bangladesh garment factories "are by no means ideal," they still give women in Bangladesh the
opportunity to earn their own wages.[37] As evidence she points to the fear created by the passage ofthe 1993
Harkins Bill (Child Labor Deterrence Bill), which caused factory owners to dismiss "an estimated 50,000 children,
many of whom helped support their families, forcing them into a completely unregulated informal sector, in lower-
paying and much less secure occupations such as brick-breaking, domestic service and rickshaw pulling."[37]
Even though the working conditions in garment factories are not ideal, they tend to financially be more reliable than
other occupations and,"enhance women’s economic capabilities to spend,save and invest their incomes." [38] Both
married and unmarried women send money back to their families as remittances, but these earned wages have more
than just economic benefits. Many women in the garment industry are marrying later, have lower fertility rates, and
attain higher levels of education, then women employed elsewhere.[38]
After massive labour unrest in 2006[39] the government formed a Minimum Wage Board including business and
worker representatives which in 2006 set a minimum wage equivalent to 1,662.50 taka, $24 a month, up from
Tk950. In 2010, following widespread labour protests involving 60,000 workers in June, 2010,[40][41][42] a
controversial proposalwas being considered by the Board which would raise the monthly minimum to the
equivalent of $50 a month, still far below worker demands of 5,000 taka, $72, for entry level wages, but
unacceptably high according to textile manufacturers who are asking for a wage below $30.[34][43] On July 28, 2010
it was announced that the minimum entry level wage would be increased to 3,000 taka, about $43.[44]

2. The government also seems to believe some change is necessary.On September 21, 2006 then ex-Prime
Minister Khaleda Zia called on textile firms to ensure the safety of workers by complying with international labour
law at a speech inaugurating the Bangladesh Apparel & Textile Exposition (BATEXPO).
Shipbuilding and ship breaking[edit]
Main article: Shipbuilding in Bangladesh
Ships in shipyard at Buriganga River
Shipbuilding is a growing industry in Bangladesh with great potentials.[45][46] The potentials of shipbuilding in
Bangladesh has made the country to be compared with countries like China, Japan and South Korea.[47] Referring to
the growing amount of export deals secured by the shipbuilding companies as well as the low cost labour available
in the country, experts suggest that Bangladesh could emerge as a major competitor in the global market of small to
medium ocean-going vessels.[48]
Bangladesh also has the world's largest ship breaking industry which employs over 200,000 Bangladeshis and
accounts for half of all the steelin Bangladesh.[49] Chittagong Ship Breaking Yard is world's second-largest ship
breaking area.
Khulna Shipyard Limited (KSY) with over five decades of reputation has been leading the Bangladesh Shipbuilding
industry and had built a wide spectrumof ships for domestic and international clients. KSY built ships for
Bangladesh Navy, Bangladesh Army and Bangladesh Coast Guard underthe contract of ministry of defense.
INTRODUCTION
The shift from a rural/agro based economy to an urban/industrial economy is an essential part of the process of
economic development. Although policymakers in the least developed countries (LDCs) have, at various times,
attempted to make agriculture the primary engine of economic growth and employment generation, this approach
has not worked, not least because of the contributions of the Green Revolution, which has had the dual effect of
increasing agricultural productivity in the LDCs and displacing the rural labor force at the same time.
Led by the example of the East Asian economies, most LDCs now accept the need for greater industrialization as
the fastest path to economic growth. In particular, countries such as Japan, Taiwan and South Korea have
demonstrated that an export-oriented industrial strategy can not only raise per capita income and living standards
in a relatively short time; it can also play a vital role in modernizing the economy and integrating it with the
global economic system.
Bangladesh, one of the representatives ofLDCs, has also been following the same direction for the last 25 years.
New rules had come to govern the international trade in textiles and apparel, allowing low-cost suppliers to gain
a grasp in American and European markets. Assisted by foreign partners, and largely unaided by the government,
entrepreneurs seized the opportunity and exploited it to the fullest.
Over a period of 25 years, the garments export sectorhas grown into a $6 billion industry that employs over a
million people. In the process,it has boosted the overall economic growth of the country and raised the viability
of other export-oriented sectors.
LITERATURE REVIEW
Several authors have analyzed aspects ofthe garment industry in Bangladesh. Of the various aspects of the
industry,the problems and the working conditions of female workers have received the greatest attention.
A study by Md. Salim Uddin and Mohammed Abu Jahed (2007) revealed that how the RMG sectoris
contributing as prime mover of the socio economic development of Bangladesh. According to them, the garments
industry has been leading the Bangladesh economy since the early 1990s. Garments are the country’s biggest
export making up about three quarters of total exports, and the industry is a symbol of the country’s dynamism in
the world economy. The industry is also the main non-farm formal sector creating employment opportunities for

3. the poor. The greater part of the workforce is female, less educated, and has migrated from rural areas. Thus, the
garment industry is seen as contributing to poverty reduction in Bangladesh by providing employment
opportunities with higher wages for the poor who would otherwise be engaged in low-wage economic activities
in rural areas. There was much discussion about the survival of Bangladesh’s garment industry prior to the final
phase out of the Multi-Fiber Agreement (MFA) from 1 January 2005 which was expected to greatly intensify
competition in the international garment market. One of the most influential forecasts was that only China and
India would gain from the MFA phase out and that Bangladesh and other smaller suppliers of garments would
lose out. Fortunately, there was no immediate major adverse effect in Bangladesh. Garment exports to the United
States grew over the whole of 2005, while those to EU declined only slightly. However, the prospects for the
industry in Bangladesh are not certain and the future trend in garment exports needs to be watched.
Factors that impede the development of industry :
Interest Rates
Interest rates can impact the growth of an industry in several ways. In large-ticket industries such as vehicle
manufacturers or cruise companies, an increase in interest rates can prevent customers from borrowing to finance the
purchase of these types of products and services.High interest rates also deter companies from investing in new
capital and expansion. On the otherhand, falling interest rates can stimulate industries to grow, which can lead to
innovation and higher employment levels.
Currency Strength
The value of the U.S. dollar compared to otherforeign currencies such as the yuan, yen and the pound is important
even for companies that do not import or export goods.Consumers have a choice to purchase goods or services
originating in the United States or in other countries. If the U.S. dollar strengthens,companies in the industry that
purchase inputs from other countries are able to be more competitive in pricing. In industries that are heavily reliant
on foreign raw materials and processing,such as the clothing industry, the entire sectorcan be lifted or depressed
with a strengthening or weakening of the dollar.
Related Reading: What Are Indicators of Economic Development?
Government Intervention
Many industries are regulated by the government in one form or another.Government agencies such as the
Environmental Protection Agency,the Food & Drug Administration or the U.S. Department of Agriculture
maintain standards that all operators in an industry must follow for the safety of consumers, employees, or natural
resources.Some industries are more heavily regulated than others and new laws and rules can shake up an entire
industry and depress growth.For example, new child toy safety laws implemented under the Consumer Product
Safety Improvement Act in 2009 threatened to wipe out many small toy producers as the requirements to test and
certify the toys were cost-prohibitive to all but large toy manufacturers. Proposed changes to the Act may help
alleviate the burden on small manufacturers and resellers.
Environmental Impact
Economic growth in an industry can be impacted not only by the environmental effect the products orservices have
but also by consumers' perceptions of that impact. For example, the market for fur apparel declined drastically over
the course of a few years in the 1990s when consumers perceived that raising and killing small animals for their fur
was both inhumane and a poor use of land. Although the industry is once again picking up with international
demand, the number of fur farmers in the country has substantially declined. If the public views an industry's
products or services as being harmful or unsafe, most companies within the sectorcan experience a marked decline
in sales quickly.
Overall Economic Health
The economic state of the country and consumer confidence can also spurgrowth and development or harm it. In
recessionary times, consumers begin limiting their purchases to the essentials,foregoing luxury or big-ticket items.
Companies also scale back production,hiring and the development of new products and services to ensure that their
finances can weather the storm. In periods of overall economic growth, these companies once again expand. The
opposite is true in industries that deal in basic consumer goods that everyone needs regardless of the economy: food,
diapers, and staple goods.Demand picks up for these necessities as consumers stock up on them and substitute basic
goods for luxury goods (example: people buy more groceries to eat in rather than go to a restaurant). In inflationary
times, the demand for staple goods declines as consumers can afford more luxury substitutes.