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“The Collapsing reasons of Rana Plaza as well as
the effects and threats on Economy in Bangladesh”
Submitted To
MD. Sawkat Ali
Assistant Professor
Department Of Business Administration
Dhaka International University
Submitted By
MD. Nazmul Haque
Batch No: 14th
Reg No: 240283
Roll No: 33
Session: 2009-2010
BBA (Evening)
Major in Marketing
Dhaka International University
Date of submission: 30th
August,2013
Student’s Declaration
I am Md. Nazmul Haque student of Bachelor of Business Administration,
Dhaka International University, do hereby that project report “The Collapsing
Reasons of Rana Plaza as well as the Effects and Threats on Economy in
Bangladesh” presented to the department of Business Administration, Dhaka
International University is the outcome of the project report has been performed
by me under the supervision of Md. Sawkat Ali, Assistant Professor,
Department of Business Administration, Dhaka International University,
Bangladesh.
--------------------------
Md. Nazmul Haque
Batch No: 14th
Reg No: 240283
Roll No: 33
BBA (Major in Marketing)
Faculty of Business Studies
Dhaka International University
Supervisor’s Declaration
I hereby declare that the concerned report entitled “The Collapsing Reasons of
Rana Plaza as well as the Effects and Threats on Economy in Bangladesh”
is an original work which has been done by Md. Nazmul Haque Roll No:
33,Major in Marketing, Department of Business Administration, Dhaka
International University, Completed his project under my supervision and
submitted for the partial fulfillment of the requirement of the degree of Bachelor
of Business Administration at Dhaka International University, Bangladesh.
----------------------------
Md. Sawkat Ali
Assistant Professor
Department of Business Administration
Faculty of Business Studies
Dhaka International University
Letter of Transmittal
28th
August, 2013
Md. Sawkat Ali
Assistant Professor
Department Of Business Administration
Faculty of Business Studies
Dhaka International University
Subject: Submission of Project Report.
Dear sir,
I beg most respectfully to state that i have the pleasure to submit my dissertation
report. This Project focuses on “The Collapsing Reasons of Rana Plaza as
well as the Effects and Threats on Economy in Bangladesh”. It is the partial
requirement of my Bachelor of Business Administration program. To prepare
this report i have tried my best to make the project report meaningful and
informative. I am very glad to submit it as part of completion of my Internee
with you. I have tried my best in trying to put up a good project report with as
much information as i could gather during the short time allotted for writing the
project report.
Thanking you for your nice support and help throughout the Internee period. I
am grateful to you.
Your Sincerely
Md. Nazmul Haque
Batch No: 14th
Reg No: 240283
Roll No: 33
Bachelor of Business Administration
Major in Marketing
Dhaka International University
Acknowledgement
First of all I would like to pay my gratitude to Almighty Allah for giving me the
opportunity to prepare my Project Report
After that I would like to pay my gratitude to my honorable Supervisor
Assistant Professor Md. Sawkat Ali for his painstaking guidance, suggestion,
and all types of support and Supervision in preparing this Project Report. He
continuously reminded me for the preparation of this Project Report.
I would also like to thank them those people who had helped me much by
giving me much information regarding my Project Report.
I would like to thank my family members as well as friends for their continuous
support and inspiration throughout the whole period of this undertaking.
Your Sincerely
Md. Nazmul Haque
Batch No: 14th
Reg No: 240283
Roll No: 33
Bachelor of Business Administration
Major in Marketing
Dhaka International University
Executive Summary
Collapsing Rana Plaza has been considered at present to be the third largest
industrial destruction. In the world history as well as the deadliest accidental,
structural failure in modern human history. It is also considered as the greatest
industrial destruction in the national history of Bangladesh. The building had
collapsed from crack. 1,130 people are died and almost 2,500 people are
seriously injured. All level people took part in rescuing. The dead bodies are
buried at the Jurain graveyard in the capital. After rescuing injured people are
hospitalized for proper treatment at different hospital in Dhaka city. For
collapsing the owner of the building named Sohel Rana is responsible. He was
arrested by RAB on the 28th
April from Benapole, Jessore and his father was
also arrested on 29th
April. The government, BGMEA and many others private
organizations is provided financial aids both the death and injured families.
Besides, the government are trying to rehabitation. It is known to all that
Bangladeshi product has a great demand to the USA and EU. The Wages and
Salaries of the workers are so cheaper than the other country in the world. The
reasons of collapsing are using lower materials, unstable pillars, building
infrastructure, keep excess raw-materials on the floors, lack of recognition for
foundation, keep heavy machines etc. It may impacted and threatened on the
Economy in Bangladesh. Such as garments sectors can be abolished in future,
production, Foreign currency can be declined. It also can be happened in money
inflation. From the USA, the generalized system of preferences (GSP)
opportunity has been suspended. It can be hampered our national Economy. The
government should proper steps to stop such types of tragedy in future. Since
our country is fully depended on readymade garment industry at present. So the
government should provide proper opportunities for the garment workers. On
the other hands, our country will lag behind.
Title:- Page No.
Front page-----------------------------------------------------------------
Student’s declaration----------------------------------------------------
Supervisor’s declaration------------------------------------------------
Letter of Transmittal-----------------------------------------------------
Acknowledgement-------------------------------------------------------
Executive summery------------------------------------------------------
Table of contents---------------------------------------------------------
Chapter:- 1 Introduction.
1.1Introduction-----------------------------------------------------------
1.1.1 From crack to collapse------------------------------------
1.1.2 Miracle girl-------------------------------------------------
1.1.3 The operations to rescue Reshma-----------------------
1.1.4 The participation of arm forces as well as the
Public people----------------------------------------------
1.1.5 The Trance of the dead bodies----------------------------
1.2 Background------------------------------------------------------------
1.3 Objectives--------------------------------------------------------------
1.4 Study methodology---------------------------------------------------
1.4.1 Primary data-------------------------------------------------
1.4.2 Secondary data----------------------------------------------
1.5 Paradigms of the study-----------------------------------------------
1.6 Limitation of the study----------------------------------------------- 17
17
17
17
16
16
15
14
14
12-13
12
11
9-10
6-8
5
4
3
2
1
Type equation here.
Chapter-2 The profile of Sohel Rana and the Government
steps.
2.1 Owner as well as convicted persons------------------------------
2.2 The genealogy of Sohel Rana--------------------------------------
2.3 The operations of RAB---------------------------------------------
2.4 The Suspension of eight Govt. Personnel------------------------
2.5 The residential opportunity for the victims----------------------
Chapter-3 The compensation as well as Donations, Wages
and Salaries.
3.1 The Compensation of Government--------------------------------
3.2 The compensation of BGMEA-------------------------------------
3.3 Donors Supported "Rana Plaza Victims" Through CRP-------
3.3.1 3.3.1 At CRP, Savar---------------------------------------
3.3.2 At CRP, Mirpur--------------------------------------------
3.4 The Comparison of per hour’s Wages and Salaries------------
Chapter-4 The collapsing problems of Rana plaza as well
as the main environmental problems of Garment workers.
4.1 The reasons for collapsing the building--------------------------
4.2The main environmental problems of garments workers-------
Raw materials----------------------------------------------------
Unskilled workers-----------------------------------------------
Improper working environment-------------------------------
Lack of managerial knowledge--------------------------------
Gendered division of labour-----------------------------------
Wages-------------------------------------------------------------
Insufficient of loan----------------------------------------------
Unit labour cost-------------------------------------------------- 38
38
37-38
37
36
36
35
35
35
34
31-32
30
27-30
26
25-26
25
23
23
22
20-22
19
Working hours--------------------------------------------------
Poor accommodation facilities--------------------------------
Safety Problems-------------------------------------------------
Political crisis----------------------------------------------------
Price competitiveness-------------------------------------------
Lead time---------------------------------------------------------
Chapter-5 The Threats and Effects on Economy in
Bangladesh.
5.1 The Threats on Economy in Bangladesh------------------------
5.2 The Effects on Economy in Bangladesh------------------------
5.3 GSP opportunities--------------------------------------------------
Chapter-6 The SWOT analysis and Findings.
6.1SWOT analysis----------------------------------------------------
6.2 Findings------------------------------------------------------------
6.3 Questionnaires----------------------------------------------------
Chapter-7 Recommendation and conclusion.
7.1 Recommendation-----------------------------------------------
7.2 Conclusion-------------------------------------------------------
7.3 References------------------------------------------------------- 58
57
56
53-54
52
50-51
46-48
45
44-45
41-42
41
40-41
40
39
38-39
Introduction:-
 1.1Introduction
 1.1.1 From crack to collapse
 1.1.2 Miracle girl
 1.1.3 The operations to rescue Reshma
 1.1.4 The participation of arm forces as well as the
Public people
 1.1.5 The Trance of the dead bodies
 1.2 Background
 1.3 Objectives
 1.4 Study methodology
 1.4.1 Primary data
 1.4.2 Secondary data
 1.5 Paradigms of the study
 1.6 Limitation of the study
1.1 Introduction:-
It was the time of 24th
April 2013, Bangladesh standard time ,a quarter to 9:00
am. that means 8:45 am in the morning at Savar in Dhaka area, the capital of
Bangladesh. A eight storeyed commercial building is located near Savar bus
station as well as beside the Dhaka Aricha highway which named Rana Plaza is
fallen down a victim of collapsing. Some portion of the building collapsed on
the another building which building was located beside the collapsing building
The ground floor of the collapsing building had kept for cars parking. There
were many organizational offices as well as a Bank had contained in the first
floor and there were many shopping molls were in the second floor. Clothing
factories had contained from third floor to seventh floor. Above two floors had
vacant. It housed a number of separate garment factories employing around
5,000 people, several shops, and a bank. At-present the Saver tragedy has been
considered to be the third largest industrial destruction in the World history as
well as the deadliest accidental structural failure in modern human history. Its
also considered as the greatest industrial destruction among the industrial
destruction in the national history of Bangladesh.
The searching mission for the dead has ended on 13th
May with the death total
of 1,127. A rescued as well as wounded young lady named Anjuara who is
eighteen years old surviving a month has died last Friday, 24th
May, 2013 at a
private Hospital in Dhaka and same a young man named Asraful Islam who is
nineteen years old has died last Saturday 25th
May ,2013 at Dhaka Medical
College Hospital in Dhaka one has been also died at hospital in mid on August.
Now the total dead are 1,130 from 24th
April 2013 to 26th
May 2013. 996 bodies
are not found in the piles. According to the BGMEA, Among the total 1,130
838 dead bodies has been identified and for identifying the 291 dead bodies,
DNA has been submitted to the forensic division for identifying at Dhaka
Medical College Hospital. And there is a great probability to remain many dead
bodies there. As there is no possibility to fetch alive body and huge difficult to
rescue. the mission of rescuing has already ended. Approximately above 2,500
injured people were rescued from the building alive in time.
1.1.1 From crack to collapse:-
According to media reports workers at Rana Plaza saw the cracks in the huge
structure the day before the collapse but the authorities did not take
precautionary steps. The building owner sohel Rana allegedly told media on the
same day that the cracks were “nothing serious” and on 24th April, the day of
the deadly incident, workers were forced to work and threatened with a month’s
salary cut if they did not comply. All this in the country with the world’s lowest
minimum wage. Rana has been described as “the most hated Bangladesh”, but
an important detail has been missed in much of the reporting: Rana is not the
owner of the garment factories nor did he decide whether the garment factories
would remain open or not. Rana has been an easy scapegoat, as the building is
named after him, but what about the systemic failings behind the front man?
Industrial police had asked the garment factory owners at Rana Plaza to keep
the factories closed and only continue further operations after consulting with
expert structural engineers. The question that remains unaddressed is: why did
the factory owners and Rana work from the same playbook, and ignore this
crucial advice?
1.1.2 Miracle Girl:-
The news has come to not only for the Bangladeshis people but also for the
World’s people that a young lady named Reshma who was used to usually
working among the Garment workers and had also fallen the victim. After 17 or
391 hours struggling against death, she is rescued alive from the destructive
piles.“It’s good to see the light after so many days,” Reshma said in a feeble
voice, trying to smile at the jubilant rescuers and onlookers. After that she is
sent to military combined hospital (CMH). It is the one of the rare events in the
World’s history. Without food-stuff to alive is so difficult. Its was the grace of
only Almighty Creator. she has been completely come round from her physical
concerned now. Actually she is a miracle girl.
1.1.3 The Operations to rescue Reshma:-
Miracle girl named Reshma was rescued on 10th
May in the afternoon. The
operation to get Reshma out was carried out by five army personnel and eight
firemen. The rescue team was initially planning to get into the basement of the
building with their usual arsenal of heavy equipment but they found water in the
basement, said Major MM Moazzem Hossain, a team member.
“Around 3.25 pm, when were trying to locate the source of the water, standing
on the first floor of the collapsed building, we saw a movement of a stick,” he
told The Daily Star “We were five to six yards away from the moving stick,
which was short and thin,” he also said that they rushed to check what was
causing the movement and shouted asking if anyone was there. “We heard a
female voice say, Save me”.
Another rescuer , Warrant officer Abdur Razzaque, said after they had created a
hole, they saw a human face. “A voice reached my ears, Bhai amaki bachan
[Brother save me]” he said. Major Moazzem said, “I spoke to the girl. She told
me her name is Reshma…we told her that we will be with her and that we
would not leave without getting her out” Moazzem said then they started to
make the narrow hole bigger using hand drills and hammers. It took an hour to
make the hole 1.5 feet in diameter.
During this time, they gave Reshma juice and water. Moazzem said, “I went
inside as I was thinnest among the rescuers. I helped Reshma to get out through
the hole. She was skinny too and was able to get out with ease around 4.30 pm.”
He said Reshma was trapped in a pocket about 10 feet long and eight feet wide.
She was able to walk, sit and sleep on the floor.
Deputy Director Rezaul Karim of Fire Service and Civil Defence, who also took
part in the rescue operations, said, “After being taken out, Reshma was looking
around and said she was glad to see daylight.
It is hard to imagine the joy the rescuers felt the rescuers felt after pulling out
bodies from the rubble for weeks. Onlookers rushed into congratulation the
rescuers as Reshma was taken away in an ambulance.
1.1.4 The participation of arm forces as well as the public
people:-
Bangladeshi Cops, Army, RAB, Firefighter, take part in rescue operations of the
Collapsing building. Besides the arm forces, general people had played a
Unavoidable role in the rescue operations. Among the general public, Babu is a
unforgettable name in the history of Savar tragedy.He is rescued above 30 alive
people by ownself. Bangladesh armies also operated their mission for rescuing
with dogs squad.
1.1.5 The Trance of the dead bodies:-
The collapsing building those people has been died, they are buried at the Jurain
graveyard in the capital. According to various newspapers, at least thirty two
unidentified dead bodies are buried at the Jurain graveyard in the capital. The
bodies were recovered from the debris of Rana Plaza which collapsed on April
24, arranging the burial of the 32, as their identities were yet to be
established.80 graves are dug at Jurain for burial of unclaimed bodies of the
Rana Plaza victims. after the first namaz-e-janaza of the victims in front of the
Dhaka Medical College Hospital at around 2:00pm, 19 unclaimed bodies were
brought to the Jurain graveyard . Earlier, 21 bodies had been handed over to
their relatives from the hospital morgue as their identities could be established.
Another body of the 19 are, however, identified by the family members at
Jurain graveyard and Anjuman buried the rest 18 bodies received from DMCH
morgue, They are also buried 14 unclaimed bodies brought there from Mitford
Hospital morgue. that the DNA samples of the bodies are preserved so that their
identity could be established. It’s so sorrow able matter for the worlds people.
1.2 Background:-
The location of Savar, the site of the building collapse, in relation to Dhaka. The
building, Rana Plaza, was owned by Sohel Rana, allegedly leading member of
the local Jubo League, the youth wing of the ruling Awami League political
party. It housed a number of separate garment factories employing around 5,000
people, several shops, and a bank. The factories manufactured apparel for
brands including Benetton, Bonmarché, Cato Fashions, the Children's Place, El
Corte Inglés, Joe Fresh, Mango, Matalan, Monsoon, Primark, and Walmart.
The head of the Bangladesh Fire Service & Civil Defense, Ali Ahmed Khan,
said that the upper four floors had been built without a permit. Rana Plaza's
architect, Massood Reza, said the building was planned for shops and offices
but not factories. Other architects stressed the risks involved in placing factories
inside a building designed only for shops and offices, noting the structure was
potentially not strong enough to bear the weight and vibration of heavy
machinery.
Bangladeshi news media reported that inspectors had discovered cracks in the
building the day before and had requested evacuation and closure. The shops
and the bank on the lower floors immediately closed, but garment workers were
forced to return the following day, their supervisors declaring the building to be
safe. Managers at Ether Tex threatened to withhold a month's pay from workers
who refused to come to work.
1.3 Objectives:-
The objectives regarding Rana Plaza Collapsing analysis is very indispensable
matter not only for the betterment of the people of Bangladesh but also for our
national Economy. Everyone knows that Garments Sector plays an unavoidable
role in our national Economy. We also know that those people had died for
collapsing Rana plaza, most of the people are Garments workers among the
dead people. We also informed our Economy directly influenced by the
Garments Sectors. Our Government gets a large sum of foreign currency from
this industrialization.
To find out the reasons of collapsing Rana Plaza.
To find out the threats and effects on Economy in Bangladesh.
To know about the infrastructure.
To know the problems of Garments Industry.
The impacts of international relationship on International Trade.
1.4 Study methodology:-
This project report has been prepared on this basis of experimental gathered
during the period of the project report. For preparing this report I have to
investigate The Daily Stares, The Prothom Alo, BBC News, Bangladesh
Protidin, The internet Websites such as www.assignment.com,
www.wikipedia.com, etc for collecting data about the internship project report.
1.4.1 Primary data:-
From the local area of different people, I had gotten the information. To collect
the data, I also had to communicate many people of Savar those people are
dwelled adjacent to the collapsing place.
1.4.2 Secondary data:-
To prepare the project report, I use different Newspapers where are in the
secondary data particularly contained. I also visit various websites.
1.5 Paradigms of the Study:-
This study has focused upon the various problems regarding the collapsing
Rana Plaza at Savar. I have taken the data on the basis of the reasons of
collapsing, the problems of Garments Industry, threats and Economics effects in
Bangladesh.
1.6 Limitation of the study:-
This project report may encounter the following limitation:-
Lack of provisions.
The study will be included with long time.
Lack of necessary explanation of the project report by turns.
This circumstance was in the intolerable moment.
The profile of Sohel Rana and the
Government steps:-
 2.1 Owner as well as convicted persons
 2.2 The genealogy of Sohel Rana
 2.3 The operations of RAB
 2.4 The Suspension of eight Govt. personnel
 2.5 The residential opportunity for the victims
2.1 Owner as well as convicted persons:-
The building, Rana Plaza, was owned by Sohel Rana, allegedly leading member
of the local “Jubo League”, the youth wing of the ruling “Awami league”
political Party. The collapsing building was built in 2007 and before
constructing, a abandon area like rejected pond is dominated to Rana illegally.
Those people who are convicted regarding the destructive Tragedy, Shohel
Rana is one of them all the other convicted persons are remarked below:-
Shohel Rana (Owner of the building).
Bazlus Samad Adnan (New wave Buttons).
Mahabubur Rahman Taposh (Managing Director of New wave
Buttons).
Aminul Islam (Owner of Fantom Garments).
Imtamum Hossan (Technologist of Savar zilla area).
Ali Mia (Deputy Technologist of Savar zilla area).
Those people’s names are remarkable in the top of the line. They were basically
responsible for happening that tragedy at savar in Dhaka.
2.2 The genealogy of Sohel Rana:-
The people of Savar knew Sohel Rana as the person who became the
Juboleague Leader (Awami youth Wing) of Savar all of a sudden. He was the
son of Khaleq Kolu. His father’s was from the Singay Upozila of Joymondop
village in Manikganj District. Only two decades ago his penniless father Khaleq
Kolu left his home land in search of a better life in Namapara, at Savar. He
started a little business of making mustard oil by crushing mustard seeds
himself and later selling them to make enough money to feed the family. Rana
use to help his father with making the mustard oil. Rana left school in year 8
and grew up to be a very despicable young man by joining the local terrorist
group. Overnight Rana accumulated a huge mountain of black money from an
unseen power. He became well known as the illegal occupier of people’s lands.
Multi storey building started to grow one after another in his name. The 9
Storey Rana Plaza, 9 Storey Rana Tower and a 5 Storey Residence building for
himself were among a few of his assets.
He was the Ex-Secretary of Chatroleague (Awami student wing) in Savar before
his current position as the Juboleague convener for the city of Savar. He is very
closely associated with the Saver Awami League MP, Tawheed Jong Murad,
who has helped him to accumulate all this wealth. If you set foot in Savar
Bazar, the closeness of Savar MP and Sohel Rana can be seen in huge banners
where they are pictured welcoming each other. Rana used his vast wealth to
hide his dark past before the collapse of Savar Rana Plaza.
The land where Rana Plaza was illegally built, was originally owned by a Hindu
man by the name of Naryanchondro. He was later referred to as ‘pagla’ since he
became mad as a result of being thrown out of his lands. Even though no formal
complaint was made against Rana (as they were threatened with death). His
name was mentioned in three separate incidents of murder in Savar.
Among the murdered was his own brother in law (sister’s husband) whose only
crime was that he was a BNP supporter who married his sister in secret.
Another was his own party member who was bought into his basement for a
drink but later killed by Rana. The third innocent individual fell victim during a
dispute with Rana.
The collapse building owner of Rana made this claim to a journalist on the day
of the collapse “Bengalis make a big deal out of everything” referring to the
cracks in the wall of the building. Those journalists have a copy of his recorded
interview.
A couple of rescued survivors of the collapsed building said, on the day of the
event when they refused to enter the building, Rana told them that the building
was safe and the cracks was just a simple plastering issue.
Rana Plaza was rented out to 5 factory owners. Those factory owners utilized
Rana to inflict torture on their garments workers., including physical and mental
abuse. Even on the day of the accident the factory owners called Rana into force
the garment workers to entire the building. The names of the factories were,
New Buttons, Neway Style, Phantom Apparels, Pang tag Year Tang. After the
collapse of the Rana Plaza building, none of the careless factory owners
contacted the BGMEA (Bangladesh Garments Manufacturing Exporters
Association) an organization that looks out for the Garments owners. BGMEA
was trying to communicate with these owners.
The basement of Rana Plaza was also used for various other purposes. If was
used as a storage for drugs and Wine containers imported from bought through
the Indian border in Jessore.
2.3 The operations of RAB:-
Sohel Rana was arrested by RAB (Rapid action Battalion force) on the 28th
of
April with a huge possession of alcohol in Benapol, Jessore near the Indian
borders as he was fleeing to India. His arrest was made based on a simple
building construction code act which gives a maximum sentence of 5 years
imprisonment and a fine of TK 50,000 only. And like many others before him
he will be released back into society after his sentence has been served where he
will continue the corruption and exploitation of many normal, innocent people
of the country.
The members of Detective Branch (DB) of police arrested father of Sohel
Rana, owner of Rana Plaza, named Abdul Khalek Alias Kolu Khalek. A team of
Detective Branch police arrested Khalek from capital’s Moghbazar area on 29th
April noon.
2.4 The Suspension of eight Govt. personnel:-
The complain for giving the permission of the illegal building without proper
verification, eight employees has already been suspended preliminary by the
government. But one of the person has already been retired. Almost the step has
been taken after one and half months of the tragedy.
Inspite of it’s illegal setting up generators of various floors without any
permission by law, they don’t pay heed any time. From that it is considered
according to the report, they have been neglected to the duties and for their
negligence this tragedy could be happened. They do not also take necessary
observation and relevant verification. They had winked the illegal task in this
paradigms.
2.5 The residential opportunity for the
victims:-
Regarding the Rana plaza collapsing those people who are fallen the victims,
The Bangladesh government has declared for providing their residential
opportunity. With the passage of time, The government will acquire the land of
the collapsed Rana Plaza, which came crashing down on April 24, and take up a
long-term plan to rehabilitate the victims’ family members there. Jahangir Kabir
Nanak, state minister for local government, made these comments while talking
to reporters at the collapsed Rana Plaza site after a prayer service for the
victims.
The compensation as well as
Donations, Wages and Salaries:-
 3.1 The Compensation of Government
 3.2 The compensation of BGMEA
 3.3 Donors Supported "Rana Plaza Victims" Through CRP
 3.3.1 3.3.1 At CRP, Savar
 3.3.2 At CRP, Mirpur
 3.4 The Comparison of per hour’s Wages and Salaries
3.1 The Compensation of Government:-
Bangladesh government has been declared giving the compensation to the
victims people. Prime Minister Sheikh Hasina has been given the compensation
by turns five times those people are fallen down at the victims. Prime Minister
Sheikh Hasina gives the family accumulation papers to the 133 family members
those has been died and 18 family members those people are serious injured.
From 10 to 15 lac BDT has been given to the both family. Before that Prime
Minister Sheikh Hasina has been given the compensation to the 452 families by
tunes at four times one after another from her well-being funds.
3.2 The compensation of BGMEA:-
Bangladesh Garment Manufacturers Exporters Association (BGMEA) has
already paid the compensation to the victim people’s family members those are
died and seriously injured at Savar tragedy at Savar. This organization has paid
the compensation gradually to those people. They have given the compensation
money at first 325 by turns twice from at least 1 lac to 3 lac and which money
has been distributed by the prime minister Sheikh Hasina by her own hand.
Besides those people are seriously injured also has been taken interpretation for
their betterment as well as all medical allowance are borne by the organization.
In this regard BGMEA Vice-President has told that 838 dead bodies has been
identified and another 291 DNA has been given at the forensic division for
identifying at Dhaka Medical College Hospital. From this tragedy those bodies
has been identified at that time at Adhorchandro school playground, then 20,000
thousand taka had been distributed to the victims family.
And the residual’s families will be given the financial assistance very soon. All
the problems of every victims family is not the similar which has been delivered
this speech by him. He also adds those families of dead has contained only
parents, 1 lac will be given and another whose has not only parents but also wife
and children, 3 lac will be given on consideration. He also says that the all
medical expenses are borne by the organization (BGMEA). Expenses of some
special hospital at Dhaka are statistically found out that at Apollo hospital BDT
100,00,000/= has been spent as the treatment of those people. At Square
Hospital BDT 40,00,000/=, at United Hospital BDT 18,00,000/= has been given
as the expenses for the patients. Those has lost their limbs of their bodies from
the tragedy vocational aids from foreign countries will be taken for substituting.
Besides all expenses like residential expenses, transportation costs, food-stuffs,
wil be given for that’s moment to the relatives of victims people.
3.3 Donors Supported "Rana Plaza Victims"
Through CRP:
CRP Management is very pleased to announce that, many organisations and
individual donors from home and abroad wanted to support the victims of "Rana
Plaza"tragedy through CRP. We would like to thank them all for such noble
intentions. Many have already contributed. We would like to convey our
heartiest thanks to them. Following are a few of our donors contribution NGO
Service their support for Rana Plaza Victims to CRP management:
3.3.1 At CRP, Savar:
1. Epyllion Group: BDT 50,000 (27-04-13)
2. Syeda Sohana Parvin, Canada: BDT 44,329 (28-04-13)
3. Imon Chowdhury, Chittagong University: BDT 8,500 (29-04-13)
4. Hafiza Rahman: BDT 5,000 (29-04-13)
5. Johora Alam Eti: BDT 2,155 (29-04-13)
6. Mesbah Uddin Mishu: BDT 5,000 (30-04-13)
7. Saddam: 500 (30-04-13)
8. Asst. Director, Direct Employment & Manpower Office: 3,000 (30-04-13)
9. Dr. Joseph A. Rogario: IV Injections, medicines
10. Volunteer of CRP: BDT 14,385
11. Bangladesh University of Professional Literature Club: BDT 45,650 (02-05-13)
12. Dhira, Kaniz, Sonia, Sabrina: BDT 8,185 (02-05-13)
13. Lisa Ahmed: BDT 7,400
14. Epyllion Group: BDT 5,000 (02-05-13)
15. Jaki Mustofa Chowdhury, Engineer, WASA, Dhaka: BDT 12,000 (29-04-13)
16. A.B.M. Mashbah uddin (Mishu), Comilla: BDT 5,000
17. Bangladesh agriculture University Residential Campus Members & K.B School
& K.B. College: BDT 52,400 (29-04-13)
18. Dr. Ashraful Alam: BDT 50,000
19. Mr. Saddam: BDT 500
20. Dhira, Kaniz, Sonia and Sabrina: BDT 8,185
21. Shefa Islam: BDT 5,000 (04-05-13)
22. ACI Pharmaceuticals: Medicine
23. Ali Amjad Choudhury, ACA: BDT 10,000 (29-04-13)
24. Quazi Shairul Hassan: BDT 1,00,000 (30-04-13)
25. Shah Mohammad Mushfiqur Rahman: BDT 30,000 (02-05-13)
26. Tanha, Mymensingh Agriculture University: BDT 4,740 (29-04-13)
27. Prothom Alo trust: BDT 2,40,000 only for wheel chairs (02-05-13)
28. ARY’s Academy: BDT 35,500 (04-05-13)
29. FNT/AHL: BDT 100,000 (04-05-13)
30. Nursing Dept., CRP Savar: BDT 10,000 (05-05-13)
31. Farida Rahman: BDT 1,000 (06-05-13)
32. Md. Morshed Alam: BDT 1,000 (06-05-13)
33. Mrs. Tahmina Begum: BDT 2,100 (06-05-13)
34. Ashraful Alam: BDT 50,000 (04-05-13)
35. Kids Tutorial: BDT 88,916 (04-05-13)
36. Australian School: BDT 30,000 (04-05-13)
37. Shurid 18: BDT 1,00,000 for assistive devices, wheelchair, artificial limbs (07-05-
13)
38. Ferdous Ahmed Naser: BDT 1,00,000 (07-05-13)
39. Humayun Kabir: BDT 20,008 (07-05-13)
40. Mahmuda Begum: BDT 1,500 (08-05-13)
41. SABINCO: BDT 2,00,000 (08-05-13)
42. Md. M Hannan: BDT 25,000 (08-05-13)
43. Staffs, Mirpur-CRP: BDT 11,602 (11-05-13)
44. Sajib and Friends: BDT 29,000 (12-05-13)
45. Beautiful Mind: BDT 19,000 (12-05-13)
46. BDPC: BDT 12,200 (13-05-13)
47. Mrs. Rawshan Mobarak: BDT 3,000 (14-05-13)
48. Citibank N.A Bangladesh: BDT 10,00,000 (15-05-13)
49. Citibank Employees: BDT 6,37,719 (15-05-13)
50. Green Herald Int. School: BDT 2,45,240 (15-05-13)
51. Research & Development (Refrigerator) Walton Hi-Tech Ind.: BDT 15,300 (15-
05-13)
52. Technohaven Company Limited, Sanjoy Debnath: BDT 15,000
53. Consumark Limited - Habib Sattar (M.D), Nasreen Sattar, employees: BDT 50,000
54. Tarun Shanbadik Shomaj (TSS): BDT 7,000
55. People of Atikokan, Canada: BDT 1,00,000
56. Prothom Alo Trust: BDT5,00,000 (20-05-13)
57. Dr. Shahiduzzaman Khan: BDT 1,52,000 (02-05-13)
58. Md. Abdul Bari: BDT 1,02,000 (22-05-13)
59. Mr. Sujaul Islam, Senior Research Asst., ICDDRB: Medicine
60. Australian School, Dhaka, Campus-3, Mr. Azim: BDT 50,501
61. Jan & John Steffens: BDT 80,000 (18-05-13)
62. People of Atikokan, Canada: BDT 1,00,000 (18-05-13)
63. Inner Wheel District 328: BDT 1,00,000 (19-05-13)
64. Savar Tragedy Support Group, Sydney: Aus$17,224 (BDT 12,91,800), (24-05-13)
65. Capt. Md. Shafiul Azam, Bangladesh Navy: BDT 5,000 (25-05-13)
66. Shabana Ali: BDT 1,00,000
67. Aftabuzzaman: BDT 1,52,000 (28-05-13)
68. Probin Mohila Songothon (Hemontica): BDT 1,62,000 (27-05-13)
69. The Hongkong and Shanghai Banking Corporation Limited: BDT 21,76,254 (27-
05-13)
70. IBA, Dhaka University ( MBA-49D): BDT 38,500 (22-05-13)
71. Shaptabarna Sangshad: BDT 80,000 (22-05-13)
72. Ms. Shameema Ferdous: BDT 30,000 (22-05-13)
73. Ms. Nazifa: BDT 100 (26-05-13)
74. Lari Walton: BDT 40,350
75. Akij Group: BDT 12,00,000 (20-05-13)
76. Deepika Dewan: BDT 1,00,000 (20-05-13)
77. Fu Wang Ceramic Industries Limited: BDT 50,000 (20-05-13)
78. M.E.K Lutfullah BDT 53,593 (20-05-13)
79. Greater San Diego Bangladesh Associate: BDT 80,700 (20-05-13)
80. Md. Amirus Salam Rahel: BDT 25,000 (20-05-13)
81. Md. Abdul Basher: BDT 5,000 (20-05-13)
82. Md. Mushraf Hossain: BDT 46,043 (27-05-13)
83. Mrs. Mariam Sultana, Mohammodpur: BDT 5,000
84. Banani Society: BDT 3,00,000 (25-05-13)
85. Baridhara Society: BDT 2,00,000 (25-05-13)
86. Together For Justice(TFJ), Canada: BDT 1,10,000 (28-05-13)
87. Indesore: BDT 500,000 (29-05-13)
88. PIES CUAORADOS Ltd.: BDT 10,50,000 (29-05-13)
89. International Recreation Clubs Ltd.: BDT 13,57,500 (29-05-13)
90. VF Asia Ltd.: BDT 9,74,313 (29-05-13)
91. Nursing Dept. CRP- Mipur: BDT 900 (29-05-13)
92. Azra Faizi Ahmed: 2 stand fans (30-05-13)
93. Naiyer Ara Kabir: 2 stand fans (30-05-13)
94. Ishrat Afroze Akhter: 2 stand fans (30-05-13)
95. Ismat Afroze Kabir: 2 stand fans (30-05-13)
96. Rifat Abdullah: 2 stand fans (30-05-13)
97. ICF International, USA -$5000(16.05.2013)
98. Abdur Razzak BDT 67000/= (17.06.2013)
99. Baitul Aman Jame Mashjid-BDT-73,990 (01.06.2013)
100. World Bank Employees in Bangladesh- BDT-92,200.(30.05.2013)
101. Baridhara Cosmopolitan Club-BDT-1,14,000.(03.06.2013)
102. Milestone College-BDT-3,00,000.(03.06.2013)
103. Md. Rezwanur Rahman-BDT-5,000.(01.06.2013)
104. Regina-BDT-10,000.(09.06.2013)
105. Humayun Kabir- BDT-20,007.(14.05.2013)
106. Eastern Point Flat Owner’s Cooperative Society Ltd.-BDT-
51,565.(09.06.2013)
107. American International School, Dhaka (AISD) BDT 184832(11.06.2013)
108. Australian Residence BDT 50000/= (16.06.2013)
109. Rotary Club of Dhaka Buriganga BDT 377,000 (19.06.2013)
110. US Mission Bangladesh Employee Welfare Association BDT 150,000 (
19.05.2013)
3.3.2 At CRP, Mirpur
 DEA (Department of English Alumni), Dhaka Commerce
College: BDT 62,450
 Samiha Tasnim Khan: BDT 10,000 (29-05-13)
3.4 The Comparison of per hour’s Wages and
Salaries:
Bangladesh is the third largest exporter in the world of garments to the U.S. In
2009, Bangladesh shipped $3.41 billion worth of garments to the U.S. The
United States is not trying to steal garment jobs from Bangladesh. In fact, 97
percent of all garments purchased in the U.S. are imports--with Bangladesh as
the third largest supplier. So, the ratio of hourly wages and salaries of garment
workers are remark here.
Country
Hourly
Wages
United States $8.25-14.00
United
Kingdom
$7.58-9.11
Venezeula $2.73
Costa Rica $2.19
Guatemala $1.21
Colombia $1.20
Honduras $1.02
Philippines $0.94-1.00
China $0.93
Peru $0.92
El Salvador
$0.92
Jordan $0.74
Malaysia $0.73
Nicaragua $0.65
Bahrain $0.57
Thailand $0.56
India $0.55-0.68
Mauritius $0.55-0.65
Vietnam $0.52
Egypt $0.50-0.87
Mexico $0.50-0.53
Sri Lanka $0.46
Pakistan $0.37
Indonesia $0.35
Cambodia $0.24
Bangladesh $0.21
The collapsing problems of Rana
plaza as well as the main
environmental problems of Garment
workers:
 4.1 The reasons for collapsing the building.
 4.2 The main environmental problems of garments
workers.
 Raw materials.
 Unskilled workers.
 Improper working environment.
 Lack of managerial knowledge.
 Gendered division of labour.
 Wages.
 Insufficient of loan.
 Unit labour cost.
 Working hours.
 Poor accommodation facilities.
 Safety Problems.
 Political crisis.
 Price competitiveness.
 Lead time.
4.1 The reasons for collapsing the building:
Those problems are responsible for collapsing the Rana Plaza at Savar , they are
given below here:
 Using of lower level materials.
 Used unstable pillars use for the building.
 Using the lower pillars for constructing the building.
 The problems of building infrastructure.
 Keep heavy machines at the building.
 The instalment of generators not only on roof top but also the another
floors.
 Not to test the soil when was the building constructed.
 Do not use the proper drawing map when was the building constructed.
 Keep excess raw-materials in different floors at the building.
 Stay excess workers in different floors at the building.
 In spite of crashing the wall not to take proper steps.
 The over confidence of the owner of the building.
 Giving the error decision for foundation recognition.
 Using political extortion for constructing the building illegally.
 Not to build for facing earthquake
 Make the building on a abandon pond by filing soil.
 Lack of ethics to build the building.
4.2 The main environmental problems of
garments workers:
Which the main environmental problems of garment workers is become a
common phenomenon these are given below:
 Raw materials.
 Unskilled workers.
 Improper working environment.
 Lack of managerial knowledge.
 Gendered division of labour.
 Wages.
 Insufficient of loan.
 Unit labour cost.
 Working hours.
 Poor accommodation facilities.
 Safety Problems.
 Political crisis.
 Price competitiveness.
 Lead time.
 Raw materials:-
Bangladesh imports raw materials for garments like cotton, thread colour
etc. This dependence on raw materials hampers the development of
garments industry. Moreover, foreign suppliers often supply low quality
materials, which result in low quality products.
 Unskilled workers:-
Most of the illiterate women workers employed in garments are unskilled
and so their products often become lower in quality.
 Improper working environment:-
Taking the advantages of workers' poverty and ignorance the owners
forced them to work in unsafe and unhealthy work place overcrowded
with workers beyond capacity of the factory floor and improper
ventilation.
Most of the garment factories in our country lack the basic amenities
where our garment workers sweat their brows from morning to evening to
earn our countries the major portion of our foreign exchange. Anybody
visiting the factory the first impression he or she will have that these
workers are in a roost.
Improper ventilation, stuffy situation, filthy rooms are the characteristics
of the majority of our factories. The owners profit are the first priority
and this attitude has gone to such an extent that they do not care about
their lives.
 Lack of managerial knowledge:-
There are some other problems which are associated with this sector.
Those are- lack of marketing tactics, absence of easily on-hand middle
management, a small number of manufacturing methods, lack of training
organizations for industrial workers, supervisors and managers, autocratic
approach of nearly all the investors, fewer process units for textiles and
garments, sluggish backward or forward blending procedure, incompetent
ports, entry/exit complicated and loading/unloading takes much time,
time-consuming custom clearance etc.
 Gendered division of labour:-
In the garment industry in Bangladesh, tasks are allocated largely on the
basis of gender. This determines many of the working conditions of
women workers. All the workers in the sewing section are women, while
almost all those in the cutting, ironing and finishing sections are men.
Women workers are absorbed in a variety of occupations from cutting,
sewing, inserting buttons, making button holes, checking, cleaning the
threads, ironing, folding, packing and training to supervising.
Women work mainly as helpers, machinists and less frequently, as line
supervisors and quality controllers. There are no female cutting masters.
Men dominate the administrative and management level jobs. Women are
discriminated against in terms of access to higher-paid white collar and
management positions.
When asked why they prefer to employ women foe sewing, the owner
and managers gave several reasons. Most felt that sewing is traditionally
done by women and that women are more patient and more controllable
than men.
 Wages:-
The government of Bangladesh sets minimum wages for various
categories of workers. According of Minimum Wage Ordinance 1994,
apprentices’ helpers are to receive Tk500 and Tk930 per month
respectively. Apprentices are helpers who have been working in the
garment industry for less than three months. After three months,
Apprentices are appointed as helpers. Often female helpers are
discriminated against in terms of wages levels, and these wages are also
often fixed far below the minimum wage rate. A survey conducted in
1998 showed that 73% of female helpers, as opposed to 15% of their
male counterparts, did not receive even the minimum wage.
 Insufficient of loan:-
Insufficiency of loan in time, uncertainly of electricity, delay in getting
materials, lack of communication, problem in taxes etc. Often obstruct
the industry. In the world market 115 to 120 items of dress are in demand
where as Bangladesh supplies only ten to twelve items of garments. India,
south Korea, Hong Kong, Singapore, Thailand, Taiwan etc, have made
remarkable progress in garments industries. Bangladesh is going to
challenge the garments of those countries in the world market.
 Unit labour cost:-
Bangladesh has the cheapest unit labour cost in South Asia. It costs only
11 cents to produce a shirt in Bangladesh, whereas it costs 79 cents in Sri
Lanka and 26 cents in India. Clearly, Bangladesh’s comparative
advantage lies in having the cheapest unit labour cost.
 Working hours:-
Though the wages are low, the working hours are very long. The RMG
factories claim to operate one eight-hour shift six days a week. The 1965
factory Act allows women to work delivery deadlines; however, women
are virtually compelled to work after 8 o’clock. Sometimes they work
until 3 o’clock in the morning and report back to start work again five
hours later at 8 o’clock. They are asked to work whole months at a time
the Factory Act, which stipulates that no employee should work more
than ten days consecutively without a break.
 Poor accommodation facilities:-
As most of the garment workers come from the poor family and comes
from the remote areas and they have to attend to the duties on time, these
workers have to hire a room near the factory where four to five huddle in
a room and spend life in sub human condition.
For four to five workers there is one common latrine and a kitchen for
which they have to pay from Tk=2000 to Tk=2500/-.They share this
amount among themselves to minimize the accommodation expense.
One cannot believe their eyes in what horrible condition they have to pass
out their time after almost whole day of hard work in the factory. After
laborious job they come into their roost, cook their food and have their
dinner or lunch in unhygienic floor or bed and sleep where they take their
food. They share the single bed or sleep on the floor.
The owners of these factories must not treat the workers as animals. The
owners of these factories who drive the most luxurious car and live in
most luxurious house do ever think that these are the workers who have
made their living so juicy. Will these selfish owners ever think of these
workers of their better living for the sake of humanity by providing better
accommodation for these workers in addition to providing with the job.
 Safety Problems:-
Because of the carelessness of the factory management and for their
arrogance factory doors used to be kept locked for security reason
defying act
Safety need for the worker is mandatory to maintain in all the
organization. But without the facility of this necessary product a lot of
accident is occur incurred every year in most of the company. Some
important cause of the accident are given below-
Machine layout is often staggered
Lack of signage for escape route
No provision for emergency lighting
Doors, opening along escape routes, are not fire resistant
Doors are not self-closing and often do not open along the
direction of escape
Adequate doors as well as adequate staircases are not provided to
aid quick exit
Fire exit or emergency staircase lacks proper maintenance
Lack of proper exit route to reach the place of safety
Parked vehicles, goods and rubbish on the outside of the building
obstruct exits to the open air
Fire in a Bangladesh factory is likely to spread quickly because the
principle of compartmentalization is practiced.
 Political crisis:-
Garments industries often pay dearly for political unrest, hartal and
terrorism etc.
The international market has withdrawn quota advantage over garments
export form Bangladesh since December 2005.
Bangladesh has to advance cautiously for getting better position of her
garments in the world market. Finally destruction of twin tower in 11
September 2001. invasion on Afghanistan and Iraq and depression in
world Economy have seriously affected the export trade of Bangladesh.
 Price competitiveness:-
China and some other competitors of Bangladesh have implemented
sharp price-cutting policies in exporting garment products over the last
few years, but Bangladesh has failed to respond effectively to such
policies. China was able to drop the export price of 29 garment categories
by 46 per cent on average in the United States within a year, from $6.23
per sq metre in December 2001 to $3.37 per sq metre in December 2002.
Bangladesh needs to respond to such price-cutting policies of its rivals in
order to remain competitive in the quota-free global market.
 Lead time:-
Lead time refers to the time required for supplying the ordered garment
products after the export order has been received.
In the 1980s, the usual lead time in the garment industry was 120-150
days for the main garment supplier countries of the world; it has been
reduced to 30-40 days in the current decade.
However, in this regard the Bangladesh RMG industry has improved
little; for example, the average lead time is 90-120 days for woven
garment firms and 60-80 days for knit garment firms. In China, the
average lead time is 40-60 days and 50-60 days for woven and knit
products respectively; in India, it is 50-70 days and 60-70 days for the
same products respectively.
Bangladesh should improve its average lead time to compete in the
international market.
The Threats and effects on Economy
in Bangladesh:
 5.1 The Threats on Economy in Bangladesh.
 5.2 The Effects on Economy in Bangladesh.
 5.3 GSP opportunities.
5.1 The Threats on Economy in Bangladesh.
It is known to all that Bangladesh is a developing country. So collapsing Rana
plaza is a massive threat for the Economy in Bangladesh. As the collapsing
building is interacted with garments industry so our national Economy can be
lag behind from the present circumstances. Which threats and effects can be
fallen on Economy in Bangladesh these are remarkable:-
 The image of Bangladesh can be destroyed.
 Foreign Buyers can be changed their opinion against
Bangladesh garment sector.
 Trustworthiness can be hampered.
 Demand of Bangladeshi Product can be minimized.
 Garments industry can be knocked at the destruction.
 Unemployment tendency can be increased.
 Garments industry can be demolished in future.
 The life style of public people of our country can be changed into
bad circumstances from this Economic effects.
 The improvement of our country can be stopped.
 The industrialization of our country can be fallen down by turns
such as an unexpectable tragedy.
 The international relation between our country between European
Union can be divided in differentiation.
 It Can be hampered to the universal brotherhood.
 It can be influenced Globalization.
 The reputation of our country can be hampered.
 it can be created political gap among the political parties.
 It can be allowed not stuck vehicles alerts.
 For such a tragedy striking probability of personnel of garment
industries can be increased.
5.2 The Effects on Economy in Bangladesh.
 The overall Socio-Economic condition of our country can be
damaged.
 Bangladesh can be deprived of GSP facilities from the USA.
 Production can be declined.
 Products good quality can be ruined.
 Foreign Currency can be declined.
 Revenue target can be missed.
 It Can be made loss that profit.
 Economic increasing velocity can be gradually declined.
 It can be money inflation
 GDP growth rate can be minimized.
 The tendency of poverty can be maximized day by day.
 Financial aids from reputed organizations like World Bank,(IMF)
International Monetary Fund can stop their aids to our Economy.
5.3 GSP opportunities:-
The Generalized System of Preferences (GSP) opportunities which is derived
from the United States of America and that is also exportable opportunity. GSP
opportunity has been stopped preliminary for the worlds stress. It is known to
all that GSP opportunity keeps a great contribution on the Economy of
Bangladesh. It has already impacted on our national Economy. For stopping the
GSP opportunity our Economy can be the running velocity than before.
Basically the United States has stopped the GSP opportunity not for containing
in our garment sectors such as, lack of better environment, lack of the proper
distribution of Wages and Salaries, want of sufficient vacation, forcing to work,
lack of allowances, lack of transaction facilities etc. are the main provisions
regarding GSP stopping. If the GSP opportunity is not get back it can
negative impact on our national Economy in Bangladesh. Our country will lag
behind in garment sectors. So it should be adopted proper step to resume back
the GSP opportunity.
The USA suspended the Generalized System of Preferences (GSP) facilities on
the entrance of Bangladeshi product into the US market which has created lack
drop in our economy. Because of this suspension each and every Bangladeshi is
very upset. The USA is our long outstanding partner of development. In fact,
there was no such kind of GSP facilities in garments sector in the USA.. It is
unfortunate that, they have brought into consideration the accident of Savar
Rana Plaza, Tazrin Fashion, unsolved case of Aminul murder case. Since 2007,
the biggest labor union of the USA, AFL- CIO has been persuading the USA to
stop the GSP facilities for Bangladesh. The New York Times (July 25, 2013)
writers "Bangladeshi garment industry`s trade group has seen its influence soar
as the country has become a global garment power". Meanwhile, US
congressman Sander Levin visited in Bangladesh to assess the progress of
workers safety and socio economic condition of the country.
Next GSP hearing will be on December as commented by USA envoy Dan W.
Mozena. On July 19, the US government made public an action plan outlining
measures to protect workers’ rights and address those in a meaningful way. On
the basis of this action plan, the United States looks forward to working on the
actions with Bangladesh it needs to take in relation to potential reinstatement of
GSP benefit.Eilen O’ Kane Tausher has been appointed as an independent
chair of the North American Alliance platform of US based retailers for
Bangladesh worker safety.
Though with the GSP facilities almost 4800 products of Bangladesh can enter
into the US market without paying duty, the garments sector does not enjoy this
facility. Recently, the man-made tragedy of Savar Rana Plaza is certainly an
unfortunate event for Bangladesh. We come to know about the ill interest of a
particular class of people ignoring the established rules and regulations. Due to
this tragedy, almost, 1130 people died a tragic death and almost 200 people got
severely injured. The tendency of ignoring the law of the country by some
particular class of people is responsible for Savar Rana Plaza tragedy. When a
country turns into a developed country from a developing country, there is
exploitation and deprivation of labor, although it is not accepted at all.History
showed in every country such type of incidents during the industrial reversal.
Not only Rana Plaza but also many buildings of every corner of Bangladesh
including Dhaka city have been built without following design, even those are
built without the permission of concerned authority, many people change and
expand the design of the buildings without feeling any hesitation.On the other
hand, according to the rule of load management, it is said that when a building
is made with 10,000 people load capacity; only 6000 people can work there.
The building must be checked by a structural engineer if any type of crack is
found. We can`t only depend on government only for that, rather we have to
take private initiatives and obey ethical values to avoid such type of
accidents.At the same time, I would like to invite NGOs to come forward for
rehabilitation of the victim workers. Bangladesh Army has done a praiseworthy
job finishing the rescue job skillfully. Certainly it can never be expected that
again and again the laborers will become the victims of such kind of accidents.
. If the GSP opportunity is not get back it can negative impact on our national
Economy in Bangladesh. Our country will lag behind in garment sectors. So it
should be adopted proper step to resume back the GSP opportunity. On the
other hands, it will be happen an unthinkable revolution in garment sectors. As
soon as possible the Government should take necessary steps so that our country
does not bereft of GSP opportunity from the United States.
The SWOT analysis and Findings:-
 6.1 SWOT analysis.
 6.2 Findings.
 6.3 Questionnaires.
6.1 SWOT Analysis:-
strengths:-
1. Suitable place for rescuing operations.
2. The unity of the all level people.
3. Capable to quick action taken
4. Rescuing operations by all people in a body.
Weaknesses:-
1. Using lower raw-Materials.
2. Keeping heavy machines at different floors at the building.
3. Lack of rescuing instrument.
4. Using unstable pillars.
5. Political instability.
Opportunities:-
1. The participation of various armed forces as well as the local people.
2. Location of collapsing building which is near the highway road.
3. The assistance from another country.
4. The assistance for rescuing instrument.
5. Good outlook to create awareness.
Threats:-
1. Strike hartal and political instability.
2. Economics slow down.
3. Growing doubt about the garment industries.
4. Changing buyers needs.
5. It can be destroyed the demand of Bangladeshi garment products.
6. People can be demotiveted.
7. The tendency of workers can be declined.
8. They can’t certainty.
6.2 Findings:-
1. The problems of building infrastructure.
2. Using of lower level law-materials.
3. Keep heavy machines at the building.
4. Using of unstable pillars for the building.
5. In spite of its legal foundation, it is constructed with several floors.
6. Keep excess raw-materials at the different floors.
7. Not to test the soil when the building was constructed.
8. Make the building on an abandon pond by filling soil
9. The installment of the generators had not only on the roof tops but also
the another floors.
10. Stay excess workers in different floors at the building.
11. Not to build for facing the earthquakes.
12. lack of ethics.
6.3 Questionnaires:-
1. Should the government take proper steps for stopping such types of tragedy ?.
 Yes
 No
2. Should the government as well as the BGMEA investigate about the tragedy
?.
 Yes
 No
3. Should we raise awareness among the whole people ?.
 Yes
 No
4. What should we do for the tragedy? Will we a vital role ?.
 Yes
 No
5. Besides the rescue aids, should we provide the food-stuffs for the victims ?
 Yes
 No
6. Ought the government to impose proper instruction by RAZUK for
constructing building ?.
 Yes
 No
7. As a large sum of foreign currency come from abroad, so should the
government as well as the BGMEA take proper steps for paying the proper
Wages and Salaries?.
 Yes
 No
8. Should the garments industries provide moderate atmosphere for the workers
?
 Yes
 No
9. Should the government as well as BGMEA provide the transportation, and
Others opportunities?.
 Yes
 No
10. Should the workers become self- fluent for getting their rights ?.
 Yes
 No
Recommendation and Conclusion
 7.1 Recommendation
 7.2 Conclusion
 7.3 References
7.1 Recommendations:-
01. Government should take an effective measures to stop such kind of
tragedy.
02. At present our countries economy is fully dependent on readymade
garment industry so the government should provide proper opportunity
for the garment workers.
03. The government should investigate on this matter so that such kind of
tragedy not to happen in future.
04. BGMEA should provide the proper wages and salaries to the garments
workers.
05. RAZUK should not approve such types of unplanned drawing building
structure.
06. By the government as well as the private sector (BGMEA) should take
proper steps to control such kind of tragedy.
07. The government and private sector (BGMEA) should develop
professional management especially for our garments industry.
08. The Government as well as the private sector (BGMEA) should also
provide the allowance opportunity for the garment workers.
09. As garment industry takes a unavoidable role in our national Economy
so the government should provide proper recognition as the workers.
10. If its become possible besides allowance opportunity, residential
opportunity, transportation opportunity, should be provided.
7.2 Conclusion:-
The Rana plaza collapsing is the greatest tragedy in the national history of
Bangladesh. Now it is known to all the worlds people about what has happened
on that day. On that day there are many people died unexpectedly and about
2,500 injured people are rescued from the collapsing building. The armed forces
as well as the public local people participated to rescue those people alive. It
was the day which is intolerable. In fine it can be said that the government as
well as the private sector (BGMEA) Should take proper steps to control such
kind of tragedy.
7.3 References:-
 Websites:-
www.wikipedia.com
www.assignment.com
 Daily Newspapers:-
The Economist
BBC News
The Daily Stars

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“The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

  • 1.
  • 2. “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh” Submitted To MD. Sawkat Ali Assistant Professor Department Of Business Administration Dhaka International University Submitted By MD. Nazmul Haque Batch No: 14th Reg No: 240283 Roll No: 33 Session: 2009-2010 BBA (Evening) Major in Marketing Dhaka International University Date of submission: 30th August,2013
  • 3. Student’s Declaration I am Md. Nazmul Haque student of Bachelor of Business Administration, Dhaka International University, do hereby that project report “The Collapsing Reasons of Rana Plaza as well as the Effects and Threats on Economy in Bangladesh” presented to the department of Business Administration, Dhaka International University is the outcome of the project report has been performed by me under the supervision of Md. Sawkat Ali, Assistant Professor, Department of Business Administration, Dhaka International University, Bangladesh. -------------------------- Md. Nazmul Haque Batch No: 14th Reg No: 240283 Roll No: 33 BBA (Major in Marketing) Faculty of Business Studies Dhaka International University
  • 4. Supervisor’s Declaration I hereby declare that the concerned report entitled “The Collapsing Reasons of Rana Plaza as well as the Effects and Threats on Economy in Bangladesh” is an original work which has been done by Md. Nazmul Haque Roll No: 33,Major in Marketing, Department of Business Administration, Dhaka International University, Completed his project under my supervision and submitted for the partial fulfillment of the requirement of the degree of Bachelor of Business Administration at Dhaka International University, Bangladesh. ---------------------------- Md. Sawkat Ali Assistant Professor Department of Business Administration Faculty of Business Studies Dhaka International University
  • 5. Letter of Transmittal 28th August, 2013 Md. Sawkat Ali Assistant Professor Department Of Business Administration Faculty of Business Studies Dhaka International University Subject: Submission of Project Report. Dear sir, I beg most respectfully to state that i have the pleasure to submit my dissertation report. This Project focuses on “The Collapsing Reasons of Rana Plaza as well as the Effects and Threats on Economy in Bangladesh”. It is the partial requirement of my Bachelor of Business Administration program. To prepare this report i have tried my best to make the project report meaningful and informative. I am very glad to submit it as part of completion of my Internee with you. I have tried my best in trying to put up a good project report with as much information as i could gather during the short time allotted for writing the project report. Thanking you for your nice support and help throughout the Internee period. I am grateful to you. Your Sincerely Md. Nazmul Haque Batch No: 14th Reg No: 240283 Roll No: 33 Bachelor of Business Administration Major in Marketing Dhaka International University
  • 6. Acknowledgement First of all I would like to pay my gratitude to Almighty Allah for giving me the opportunity to prepare my Project Report After that I would like to pay my gratitude to my honorable Supervisor Assistant Professor Md. Sawkat Ali for his painstaking guidance, suggestion, and all types of support and Supervision in preparing this Project Report. He continuously reminded me for the preparation of this Project Report. I would also like to thank them those people who had helped me much by giving me much information regarding my Project Report. I would like to thank my family members as well as friends for their continuous support and inspiration throughout the whole period of this undertaking. Your Sincerely Md. Nazmul Haque Batch No: 14th Reg No: 240283 Roll No: 33 Bachelor of Business Administration Major in Marketing Dhaka International University
  • 7. Executive Summary Collapsing Rana Plaza has been considered at present to be the third largest industrial destruction. In the world history as well as the deadliest accidental, structural failure in modern human history. It is also considered as the greatest industrial destruction in the national history of Bangladesh. The building had collapsed from crack. 1,130 people are died and almost 2,500 people are seriously injured. All level people took part in rescuing. The dead bodies are buried at the Jurain graveyard in the capital. After rescuing injured people are hospitalized for proper treatment at different hospital in Dhaka city. For collapsing the owner of the building named Sohel Rana is responsible. He was arrested by RAB on the 28th April from Benapole, Jessore and his father was also arrested on 29th April. The government, BGMEA and many others private organizations is provided financial aids both the death and injured families. Besides, the government are trying to rehabitation. It is known to all that Bangladeshi product has a great demand to the USA and EU. The Wages and Salaries of the workers are so cheaper than the other country in the world. The reasons of collapsing are using lower materials, unstable pillars, building infrastructure, keep excess raw-materials on the floors, lack of recognition for foundation, keep heavy machines etc. It may impacted and threatened on the Economy in Bangladesh. Such as garments sectors can be abolished in future, production, Foreign currency can be declined. It also can be happened in money inflation. From the USA, the generalized system of preferences (GSP) opportunity has been suspended. It can be hampered our national Economy. The government should proper steps to stop such types of tragedy in future. Since our country is fully depended on readymade garment industry at present. So the government should provide proper opportunities for the garment workers. On the other hands, our country will lag behind.
  • 8. Title:- Page No. Front page----------------------------------------------------------------- Student’s declaration---------------------------------------------------- Supervisor’s declaration------------------------------------------------ Letter of Transmittal----------------------------------------------------- Acknowledgement------------------------------------------------------- Executive summery------------------------------------------------------ Table of contents--------------------------------------------------------- Chapter:- 1 Introduction. 1.1Introduction----------------------------------------------------------- 1.1.1 From crack to collapse------------------------------------ 1.1.2 Miracle girl------------------------------------------------- 1.1.3 The operations to rescue Reshma----------------------- 1.1.4 The participation of arm forces as well as the Public people---------------------------------------------- 1.1.5 The Trance of the dead bodies---------------------------- 1.2 Background------------------------------------------------------------ 1.3 Objectives-------------------------------------------------------------- 1.4 Study methodology--------------------------------------------------- 1.4.1 Primary data------------------------------------------------- 1.4.2 Secondary data---------------------------------------------- 1.5 Paradigms of the study----------------------------------------------- 1.6 Limitation of the study----------------------------------------------- 17 17 17 17 16 16 15 14 14 12-13 12 11 9-10 6-8 5 4 3 2 1 Type equation here.
  • 9. Chapter-2 The profile of Sohel Rana and the Government steps. 2.1 Owner as well as convicted persons------------------------------ 2.2 The genealogy of Sohel Rana-------------------------------------- 2.3 The operations of RAB--------------------------------------------- 2.4 The Suspension of eight Govt. Personnel------------------------ 2.5 The residential opportunity for the victims---------------------- Chapter-3 The compensation as well as Donations, Wages and Salaries. 3.1 The Compensation of Government-------------------------------- 3.2 The compensation of BGMEA------------------------------------- 3.3 Donors Supported "Rana Plaza Victims" Through CRP------- 3.3.1 3.3.1 At CRP, Savar--------------------------------------- 3.3.2 At CRP, Mirpur-------------------------------------------- 3.4 The Comparison of per hour’s Wages and Salaries------------ Chapter-4 The collapsing problems of Rana plaza as well as the main environmental problems of Garment workers. 4.1 The reasons for collapsing the building-------------------------- 4.2The main environmental problems of garments workers------- Raw materials---------------------------------------------------- Unskilled workers----------------------------------------------- Improper working environment------------------------------- Lack of managerial knowledge-------------------------------- Gendered division of labour----------------------------------- Wages------------------------------------------------------------- Insufficient of loan---------------------------------------------- Unit labour cost-------------------------------------------------- 38 38 37-38 37 36 36 35 35 35 34 31-32 30 27-30 26 25-26 25 23 23 22 20-22 19
  • 10. Working hours-------------------------------------------------- Poor accommodation facilities-------------------------------- Safety Problems------------------------------------------------- Political crisis---------------------------------------------------- Price competitiveness------------------------------------------- Lead time--------------------------------------------------------- Chapter-5 The Threats and Effects on Economy in Bangladesh. 5.1 The Threats on Economy in Bangladesh------------------------ 5.2 The Effects on Economy in Bangladesh------------------------ 5.3 GSP opportunities-------------------------------------------------- Chapter-6 The SWOT analysis and Findings. 6.1SWOT analysis---------------------------------------------------- 6.2 Findings------------------------------------------------------------ 6.3 Questionnaires---------------------------------------------------- Chapter-7 Recommendation and conclusion. 7.1 Recommendation----------------------------------------------- 7.2 Conclusion------------------------------------------------------- 7.3 References------------------------------------------------------- 58 57 56 53-54 52 50-51 46-48 45 44-45 41-42 41 40-41 40 39 38-39
  • 11. Introduction:-  1.1Introduction  1.1.1 From crack to collapse  1.1.2 Miracle girl  1.1.3 The operations to rescue Reshma  1.1.4 The participation of arm forces as well as the Public people  1.1.5 The Trance of the dead bodies  1.2 Background  1.3 Objectives  1.4 Study methodology  1.4.1 Primary data  1.4.2 Secondary data  1.5 Paradigms of the study  1.6 Limitation of the study
  • 12. 1.1 Introduction:- It was the time of 24th April 2013, Bangladesh standard time ,a quarter to 9:00 am. that means 8:45 am in the morning at Savar in Dhaka area, the capital of Bangladesh. A eight storeyed commercial building is located near Savar bus station as well as beside the Dhaka Aricha highway which named Rana Plaza is fallen down a victim of collapsing. Some portion of the building collapsed on the another building which building was located beside the collapsing building The ground floor of the collapsing building had kept for cars parking. There were many organizational offices as well as a Bank had contained in the first floor and there were many shopping molls were in the second floor. Clothing factories had contained from third floor to seventh floor. Above two floors had vacant. It housed a number of separate garment factories employing around 5,000 people, several shops, and a bank. At-present the Saver tragedy has been considered to be the third largest industrial destruction in the World history as well as the deadliest accidental structural failure in modern human history. Its also considered as the greatest industrial destruction among the industrial destruction in the national history of Bangladesh. The searching mission for the dead has ended on 13th May with the death total of 1,127. A rescued as well as wounded young lady named Anjuara who is eighteen years old surviving a month has died last Friday, 24th May, 2013 at a private Hospital in Dhaka and same a young man named Asraful Islam who is nineteen years old has died last Saturday 25th May ,2013 at Dhaka Medical College Hospital in Dhaka one has been also died at hospital in mid on August. Now the total dead are 1,130 from 24th April 2013 to 26th May 2013. 996 bodies are not found in the piles. According to the BGMEA, Among the total 1,130 838 dead bodies has been identified and for identifying the 291 dead bodies,
  • 13. DNA has been submitted to the forensic division for identifying at Dhaka Medical College Hospital. And there is a great probability to remain many dead bodies there. As there is no possibility to fetch alive body and huge difficult to rescue. the mission of rescuing has already ended. Approximately above 2,500 injured people were rescued from the building alive in time. 1.1.1 From crack to collapse:- According to media reports workers at Rana Plaza saw the cracks in the huge structure the day before the collapse but the authorities did not take precautionary steps. The building owner sohel Rana allegedly told media on the same day that the cracks were “nothing serious” and on 24th April, the day of the deadly incident, workers were forced to work and threatened with a month’s salary cut if they did not comply. All this in the country with the world’s lowest minimum wage. Rana has been described as “the most hated Bangladesh”, but an important detail has been missed in much of the reporting: Rana is not the owner of the garment factories nor did he decide whether the garment factories would remain open or not. Rana has been an easy scapegoat, as the building is named after him, but what about the systemic failings behind the front man? Industrial police had asked the garment factory owners at Rana Plaza to keep the factories closed and only continue further operations after consulting with expert structural engineers. The question that remains unaddressed is: why did the factory owners and Rana work from the same playbook, and ignore this crucial advice?
  • 14. 1.1.2 Miracle Girl:- The news has come to not only for the Bangladeshis people but also for the World’s people that a young lady named Reshma who was used to usually working among the Garment workers and had also fallen the victim. After 17 or 391 hours struggling against death, she is rescued alive from the destructive piles.“It’s good to see the light after so many days,” Reshma said in a feeble voice, trying to smile at the jubilant rescuers and onlookers. After that she is sent to military combined hospital (CMH). It is the one of the rare events in the World’s history. Without food-stuff to alive is so difficult. Its was the grace of only Almighty Creator. she has been completely come round from her physical concerned now. Actually she is a miracle girl. 1.1.3 The Operations to rescue Reshma:- Miracle girl named Reshma was rescued on 10th May in the afternoon. The operation to get Reshma out was carried out by five army personnel and eight firemen. The rescue team was initially planning to get into the basement of the building with their usual arsenal of heavy equipment but they found water in the basement, said Major MM Moazzem Hossain, a team member. “Around 3.25 pm, when were trying to locate the source of the water, standing on the first floor of the collapsed building, we saw a movement of a stick,” he told The Daily Star “We were five to six yards away from the moving stick, which was short and thin,” he also said that they rushed to check what was causing the movement and shouted asking if anyone was there. “We heard a female voice say, Save me”.
  • 15. Another rescuer , Warrant officer Abdur Razzaque, said after they had created a hole, they saw a human face. “A voice reached my ears, Bhai amaki bachan [Brother save me]” he said. Major Moazzem said, “I spoke to the girl. She told me her name is Reshma…we told her that we will be with her and that we would not leave without getting her out” Moazzem said then they started to make the narrow hole bigger using hand drills and hammers. It took an hour to make the hole 1.5 feet in diameter. During this time, they gave Reshma juice and water. Moazzem said, “I went inside as I was thinnest among the rescuers. I helped Reshma to get out through the hole. She was skinny too and was able to get out with ease around 4.30 pm.” He said Reshma was trapped in a pocket about 10 feet long and eight feet wide. She was able to walk, sit and sleep on the floor. Deputy Director Rezaul Karim of Fire Service and Civil Defence, who also took part in the rescue operations, said, “After being taken out, Reshma was looking around and said she was glad to see daylight. It is hard to imagine the joy the rescuers felt the rescuers felt after pulling out bodies from the rubble for weeks. Onlookers rushed into congratulation the rescuers as Reshma was taken away in an ambulance.
  • 16. 1.1.4 The participation of arm forces as well as the public people:- Bangladeshi Cops, Army, RAB, Firefighter, take part in rescue operations of the Collapsing building. Besides the arm forces, general people had played a Unavoidable role in the rescue operations. Among the general public, Babu is a unforgettable name in the history of Savar tragedy.He is rescued above 30 alive people by ownself. Bangladesh armies also operated their mission for rescuing with dogs squad. 1.1.5 The Trance of the dead bodies:- The collapsing building those people has been died, they are buried at the Jurain graveyard in the capital. According to various newspapers, at least thirty two unidentified dead bodies are buried at the Jurain graveyard in the capital. The bodies were recovered from the debris of Rana Plaza which collapsed on April 24, arranging the burial of the 32, as their identities were yet to be established.80 graves are dug at Jurain for burial of unclaimed bodies of the Rana Plaza victims. after the first namaz-e-janaza of the victims in front of the Dhaka Medical College Hospital at around 2:00pm, 19 unclaimed bodies were brought to the Jurain graveyard . Earlier, 21 bodies had been handed over to their relatives from the hospital morgue as their identities could be established. Another body of the 19 are, however, identified by the family members at Jurain graveyard and Anjuman buried the rest 18 bodies received from DMCH morgue, They are also buried 14 unclaimed bodies brought there from Mitford Hospital morgue. that the DNA samples of the bodies are preserved so that their identity could be established. It’s so sorrow able matter for the worlds people.
  • 17. 1.2 Background:- The location of Savar, the site of the building collapse, in relation to Dhaka. The building, Rana Plaza, was owned by Sohel Rana, allegedly leading member of the local Jubo League, the youth wing of the ruling Awami League political party. It housed a number of separate garment factories employing around 5,000 people, several shops, and a bank. The factories manufactured apparel for brands including Benetton, Bonmarché, Cato Fashions, the Children's Place, El Corte Inglés, Joe Fresh, Mango, Matalan, Monsoon, Primark, and Walmart. The head of the Bangladesh Fire Service & Civil Defense, Ali Ahmed Khan, said that the upper four floors had been built without a permit. Rana Plaza's architect, Massood Reza, said the building was planned for shops and offices but not factories. Other architects stressed the risks involved in placing factories inside a building designed only for shops and offices, noting the structure was potentially not strong enough to bear the weight and vibration of heavy machinery. Bangladeshi news media reported that inspectors had discovered cracks in the building the day before and had requested evacuation and closure. The shops and the bank on the lower floors immediately closed, but garment workers were forced to return the following day, their supervisors declaring the building to be safe. Managers at Ether Tex threatened to withhold a month's pay from workers who refused to come to work.
  • 18. 1.3 Objectives:- The objectives regarding Rana Plaza Collapsing analysis is very indispensable matter not only for the betterment of the people of Bangladesh but also for our national Economy. Everyone knows that Garments Sector plays an unavoidable role in our national Economy. We also know that those people had died for collapsing Rana plaza, most of the people are Garments workers among the dead people. We also informed our Economy directly influenced by the Garments Sectors. Our Government gets a large sum of foreign currency from this industrialization. To find out the reasons of collapsing Rana Plaza. To find out the threats and effects on Economy in Bangladesh. To know about the infrastructure. To know the problems of Garments Industry. The impacts of international relationship on International Trade. 1.4 Study methodology:- This project report has been prepared on this basis of experimental gathered during the period of the project report. For preparing this report I have to investigate The Daily Stares, The Prothom Alo, BBC News, Bangladesh Protidin, The internet Websites such as www.assignment.com, www.wikipedia.com, etc for collecting data about the internship project report.
  • 19. 1.4.1 Primary data:- From the local area of different people, I had gotten the information. To collect the data, I also had to communicate many people of Savar those people are dwelled adjacent to the collapsing place. 1.4.2 Secondary data:- To prepare the project report, I use different Newspapers where are in the secondary data particularly contained. I also visit various websites. 1.5 Paradigms of the Study:- This study has focused upon the various problems regarding the collapsing Rana Plaza at Savar. I have taken the data on the basis of the reasons of collapsing, the problems of Garments Industry, threats and Economics effects in Bangladesh. 1.6 Limitation of the study:- This project report may encounter the following limitation:- Lack of provisions. The study will be included with long time. Lack of necessary explanation of the project report by turns. This circumstance was in the intolerable moment.
  • 20. The profile of Sohel Rana and the Government steps:-  2.1 Owner as well as convicted persons  2.2 The genealogy of Sohel Rana  2.3 The operations of RAB  2.4 The Suspension of eight Govt. personnel  2.5 The residential opportunity for the victims
  • 21. 2.1 Owner as well as convicted persons:- The building, Rana Plaza, was owned by Sohel Rana, allegedly leading member of the local “Jubo League”, the youth wing of the ruling “Awami league” political Party. The collapsing building was built in 2007 and before constructing, a abandon area like rejected pond is dominated to Rana illegally. Those people who are convicted regarding the destructive Tragedy, Shohel Rana is one of them all the other convicted persons are remarked below:- Shohel Rana (Owner of the building). Bazlus Samad Adnan (New wave Buttons). Mahabubur Rahman Taposh (Managing Director of New wave Buttons). Aminul Islam (Owner of Fantom Garments). Imtamum Hossan (Technologist of Savar zilla area). Ali Mia (Deputy Technologist of Savar zilla area). Those people’s names are remarkable in the top of the line. They were basically responsible for happening that tragedy at savar in Dhaka.
  • 22. 2.2 The genealogy of Sohel Rana:- The people of Savar knew Sohel Rana as the person who became the Juboleague Leader (Awami youth Wing) of Savar all of a sudden. He was the son of Khaleq Kolu. His father’s was from the Singay Upozila of Joymondop village in Manikganj District. Only two decades ago his penniless father Khaleq Kolu left his home land in search of a better life in Namapara, at Savar. He started a little business of making mustard oil by crushing mustard seeds himself and later selling them to make enough money to feed the family. Rana use to help his father with making the mustard oil. Rana left school in year 8 and grew up to be a very despicable young man by joining the local terrorist group. Overnight Rana accumulated a huge mountain of black money from an unseen power. He became well known as the illegal occupier of people’s lands. Multi storey building started to grow one after another in his name. The 9 Storey Rana Plaza, 9 Storey Rana Tower and a 5 Storey Residence building for himself were among a few of his assets. He was the Ex-Secretary of Chatroleague (Awami student wing) in Savar before his current position as the Juboleague convener for the city of Savar. He is very closely associated with the Saver Awami League MP, Tawheed Jong Murad, who has helped him to accumulate all this wealth. If you set foot in Savar Bazar, the closeness of Savar MP and Sohel Rana can be seen in huge banners where they are pictured welcoming each other. Rana used his vast wealth to hide his dark past before the collapse of Savar Rana Plaza. The land where Rana Plaza was illegally built, was originally owned by a Hindu man by the name of Naryanchondro. He was later referred to as ‘pagla’ since he
  • 23. became mad as a result of being thrown out of his lands. Even though no formal complaint was made against Rana (as they were threatened with death). His name was mentioned in three separate incidents of murder in Savar. Among the murdered was his own brother in law (sister’s husband) whose only crime was that he was a BNP supporter who married his sister in secret. Another was his own party member who was bought into his basement for a drink but later killed by Rana. The third innocent individual fell victim during a dispute with Rana. The collapse building owner of Rana made this claim to a journalist on the day of the collapse “Bengalis make a big deal out of everything” referring to the cracks in the wall of the building. Those journalists have a copy of his recorded interview. A couple of rescued survivors of the collapsed building said, on the day of the event when they refused to enter the building, Rana told them that the building was safe and the cracks was just a simple plastering issue. Rana Plaza was rented out to 5 factory owners. Those factory owners utilized Rana to inflict torture on their garments workers., including physical and mental abuse. Even on the day of the accident the factory owners called Rana into force the garment workers to entire the building. The names of the factories were, New Buttons, Neway Style, Phantom Apparels, Pang tag Year Tang. After the collapse of the Rana Plaza building, none of the careless factory owners
  • 24. contacted the BGMEA (Bangladesh Garments Manufacturing Exporters Association) an organization that looks out for the Garments owners. BGMEA was trying to communicate with these owners. The basement of Rana Plaza was also used for various other purposes. If was used as a storage for drugs and Wine containers imported from bought through the Indian border in Jessore. 2.3 The operations of RAB:- Sohel Rana was arrested by RAB (Rapid action Battalion force) on the 28th of April with a huge possession of alcohol in Benapol, Jessore near the Indian borders as he was fleeing to India. His arrest was made based on a simple building construction code act which gives a maximum sentence of 5 years imprisonment and a fine of TK 50,000 only. And like many others before him he will be released back into society after his sentence has been served where he will continue the corruption and exploitation of many normal, innocent people of the country. The members of Detective Branch (DB) of police arrested father of Sohel Rana, owner of Rana Plaza, named Abdul Khalek Alias Kolu Khalek. A team of Detective Branch police arrested Khalek from capital’s Moghbazar area on 29th April noon.
  • 25. 2.4 The Suspension of eight Govt. personnel:- The complain for giving the permission of the illegal building without proper verification, eight employees has already been suspended preliminary by the government. But one of the person has already been retired. Almost the step has been taken after one and half months of the tragedy. Inspite of it’s illegal setting up generators of various floors without any permission by law, they don’t pay heed any time. From that it is considered according to the report, they have been neglected to the duties and for their negligence this tragedy could be happened. They do not also take necessary observation and relevant verification. They had winked the illegal task in this paradigms. 2.5 The residential opportunity for the victims:- Regarding the Rana plaza collapsing those people who are fallen the victims, The Bangladesh government has declared for providing their residential opportunity. With the passage of time, The government will acquire the land of the collapsed Rana Plaza, which came crashing down on April 24, and take up a long-term plan to rehabilitate the victims’ family members there. Jahangir Kabir Nanak, state minister for local government, made these comments while talking to reporters at the collapsed Rana Plaza site after a prayer service for the victims.
  • 26. The compensation as well as Donations, Wages and Salaries:-  3.1 The Compensation of Government  3.2 The compensation of BGMEA  3.3 Donors Supported "Rana Plaza Victims" Through CRP  3.3.1 3.3.1 At CRP, Savar  3.3.2 At CRP, Mirpur  3.4 The Comparison of per hour’s Wages and Salaries
  • 27. 3.1 The Compensation of Government:- Bangladesh government has been declared giving the compensation to the victims people. Prime Minister Sheikh Hasina has been given the compensation by turns five times those people are fallen down at the victims. Prime Minister Sheikh Hasina gives the family accumulation papers to the 133 family members those has been died and 18 family members those people are serious injured. From 10 to 15 lac BDT has been given to the both family. Before that Prime Minister Sheikh Hasina has been given the compensation to the 452 families by tunes at four times one after another from her well-being funds. 3.2 The compensation of BGMEA:- Bangladesh Garment Manufacturers Exporters Association (BGMEA) has already paid the compensation to the victim people’s family members those are died and seriously injured at Savar tragedy at Savar. This organization has paid the compensation gradually to those people. They have given the compensation money at first 325 by turns twice from at least 1 lac to 3 lac and which money has been distributed by the prime minister Sheikh Hasina by her own hand. Besides those people are seriously injured also has been taken interpretation for their betterment as well as all medical allowance are borne by the organization. In this regard BGMEA Vice-President has told that 838 dead bodies has been identified and another 291 DNA has been given at the forensic division for identifying at Dhaka Medical College Hospital. From this tragedy those bodies has been identified at that time at Adhorchandro school playground, then 20,000 thousand taka had been distributed to the victims family. And the residual’s families will be given the financial assistance very soon. All the problems of every victims family is not the similar which has been delivered
  • 28. this speech by him. He also adds those families of dead has contained only parents, 1 lac will be given and another whose has not only parents but also wife and children, 3 lac will be given on consideration. He also says that the all medical expenses are borne by the organization (BGMEA). Expenses of some special hospital at Dhaka are statistically found out that at Apollo hospital BDT 100,00,000/= has been spent as the treatment of those people. At Square Hospital BDT 40,00,000/=, at United Hospital BDT 18,00,000/= has been given as the expenses for the patients. Those has lost their limbs of their bodies from the tragedy vocational aids from foreign countries will be taken for substituting. Besides all expenses like residential expenses, transportation costs, food-stuffs, wil be given for that’s moment to the relatives of victims people. 3.3 Donors Supported "Rana Plaza Victims" Through CRP: CRP Management is very pleased to announce that, many organisations and individual donors from home and abroad wanted to support the victims of "Rana Plaza"tragedy through CRP. We would like to thank them all for such noble intentions. Many have already contributed. We would like to convey our heartiest thanks to them. Following are a few of our donors contribution NGO Service their support for Rana Plaza Victims to CRP management:
  • 29. 3.3.1 At CRP, Savar: 1. Epyllion Group: BDT 50,000 (27-04-13) 2. Syeda Sohana Parvin, Canada: BDT 44,329 (28-04-13) 3. Imon Chowdhury, Chittagong University: BDT 8,500 (29-04-13) 4. Hafiza Rahman: BDT 5,000 (29-04-13) 5. Johora Alam Eti: BDT 2,155 (29-04-13) 6. Mesbah Uddin Mishu: BDT 5,000 (30-04-13) 7. Saddam: 500 (30-04-13) 8. Asst. Director, Direct Employment & Manpower Office: 3,000 (30-04-13) 9. Dr. Joseph A. Rogario: IV Injections, medicines 10. Volunteer of CRP: BDT 14,385 11. Bangladesh University of Professional Literature Club: BDT 45,650 (02-05-13) 12. Dhira, Kaniz, Sonia, Sabrina: BDT 8,185 (02-05-13) 13. Lisa Ahmed: BDT 7,400 14. Epyllion Group: BDT 5,000 (02-05-13) 15. Jaki Mustofa Chowdhury, Engineer, WASA, Dhaka: BDT 12,000 (29-04-13) 16. A.B.M. Mashbah uddin (Mishu), Comilla: BDT 5,000 17. Bangladesh agriculture University Residential Campus Members & K.B School & K.B. College: BDT 52,400 (29-04-13) 18. Dr. Ashraful Alam: BDT 50,000 19. Mr. Saddam: BDT 500 20. Dhira, Kaniz, Sonia and Sabrina: BDT 8,185 21. Shefa Islam: BDT 5,000 (04-05-13) 22. ACI Pharmaceuticals: Medicine 23. Ali Amjad Choudhury, ACA: BDT 10,000 (29-04-13) 24. Quazi Shairul Hassan: BDT 1,00,000 (30-04-13) 25. Shah Mohammad Mushfiqur Rahman: BDT 30,000 (02-05-13) 26. Tanha, Mymensingh Agriculture University: BDT 4,740 (29-04-13) 27. Prothom Alo trust: BDT 2,40,000 only for wheel chairs (02-05-13) 28. ARY’s Academy: BDT 35,500 (04-05-13) 29. FNT/AHL: BDT 100,000 (04-05-13) 30. Nursing Dept., CRP Savar: BDT 10,000 (05-05-13)
  • 30. 31. Farida Rahman: BDT 1,000 (06-05-13) 32. Md. Morshed Alam: BDT 1,000 (06-05-13) 33. Mrs. Tahmina Begum: BDT 2,100 (06-05-13) 34. Ashraful Alam: BDT 50,000 (04-05-13) 35. Kids Tutorial: BDT 88,916 (04-05-13) 36. Australian School: BDT 30,000 (04-05-13) 37. Shurid 18: BDT 1,00,000 for assistive devices, wheelchair, artificial limbs (07-05- 13) 38. Ferdous Ahmed Naser: BDT 1,00,000 (07-05-13) 39. Humayun Kabir: BDT 20,008 (07-05-13) 40. Mahmuda Begum: BDT 1,500 (08-05-13) 41. SABINCO: BDT 2,00,000 (08-05-13) 42. Md. M Hannan: BDT 25,000 (08-05-13) 43. Staffs, Mirpur-CRP: BDT 11,602 (11-05-13) 44. Sajib and Friends: BDT 29,000 (12-05-13) 45. Beautiful Mind: BDT 19,000 (12-05-13) 46. BDPC: BDT 12,200 (13-05-13) 47. Mrs. Rawshan Mobarak: BDT 3,000 (14-05-13) 48. Citibank N.A Bangladesh: BDT 10,00,000 (15-05-13) 49. Citibank Employees: BDT 6,37,719 (15-05-13) 50. Green Herald Int. School: BDT 2,45,240 (15-05-13) 51. Research & Development (Refrigerator) Walton Hi-Tech Ind.: BDT 15,300 (15- 05-13) 52. Technohaven Company Limited, Sanjoy Debnath: BDT 15,000 53. Consumark Limited - Habib Sattar (M.D), Nasreen Sattar, employees: BDT 50,000 54. Tarun Shanbadik Shomaj (TSS): BDT 7,000 55. People of Atikokan, Canada: BDT 1,00,000 56. Prothom Alo Trust: BDT5,00,000 (20-05-13) 57. Dr. Shahiduzzaman Khan: BDT 1,52,000 (02-05-13) 58. Md. Abdul Bari: BDT 1,02,000 (22-05-13) 59. Mr. Sujaul Islam, Senior Research Asst., ICDDRB: Medicine 60. Australian School, Dhaka, Campus-3, Mr. Azim: BDT 50,501 61. Jan & John Steffens: BDT 80,000 (18-05-13) 62. People of Atikokan, Canada: BDT 1,00,000 (18-05-13)
  • 31. 63. Inner Wheel District 328: BDT 1,00,000 (19-05-13) 64. Savar Tragedy Support Group, Sydney: Aus$17,224 (BDT 12,91,800), (24-05-13) 65. Capt. Md. Shafiul Azam, Bangladesh Navy: BDT 5,000 (25-05-13) 66. Shabana Ali: BDT 1,00,000 67. Aftabuzzaman: BDT 1,52,000 (28-05-13) 68. Probin Mohila Songothon (Hemontica): BDT 1,62,000 (27-05-13) 69. The Hongkong and Shanghai Banking Corporation Limited: BDT 21,76,254 (27- 05-13) 70. IBA, Dhaka University ( MBA-49D): BDT 38,500 (22-05-13) 71. Shaptabarna Sangshad: BDT 80,000 (22-05-13) 72. Ms. Shameema Ferdous: BDT 30,000 (22-05-13) 73. Ms. Nazifa: BDT 100 (26-05-13) 74. Lari Walton: BDT 40,350 75. Akij Group: BDT 12,00,000 (20-05-13) 76. Deepika Dewan: BDT 1,00,000 (20-05-13) 77. Fu Wang Ceramic Industries Limited: BDT 50,000 (20-05-13) 78. M.E.K Lutfullah BDT 53,593 (20-05-13) 79. Greater San Diego Bangladesh Associate: BDT 80,700 (20-05-13) 80. Md. Amirus Salam Rahel: BDT 25,000 (20-05-13) 81. Md. Abdul Basher: BDT 5,000 (20-05-13) 82. Md. Mushraf Hossain: BDT 46,043 (27-05-13) 83. Mrs. Mariam Sultana, Mohammodpur: BDT 5,000 84. Banani Society: BDT 3,00,000 (25-05-13) 85. Baridhara Society: BDT 2,00,000 (25-05-13) 86. Together For Justice(TFJ), Canada: BDT 1,10,000 (28-05-13) 87. Indesore: BDT 500,000 (29-05-13) 88. PIES CUAORADOS Ltd.: BDT 10,50,000 (29-05-13) 89. International Recreation Clubs Ltd.: BDT 13,57,500 (29-05-13) 90. VF Asia Ltd.: BDT 9,74,313 (29-05-13) 91. Nursing Dept. CRP- Mipur: BDT 900 (29-05-13) 92. Azra Faizi Ahmed: 2 stand fans (30-05-13) 93. Naiyer Ara Kabir: 2 stand fans (30-05-13) 94. Ishrat Afroze Akhter: 2 stand fans (30-05-13) 95. Ismat Afroze Kabir: 2 stand fans (30-05-13)
  • 32. 96. Rifat Abdullah: 2 stand fans (30-05-13) 97. ICF International, USA -$5000(16.05.2013) 98. Abdur Razzak BDT 67000/= (17.06.2013) 99. Baitul Aman Jame Mashjid-BDT-73,990 (01.06.2013) 100. World Bank Employees in Bangladesh- BDT-92,200.(30.05.2013) 101. Baridhara Cosmopolitan Club-BDT-1,14,000.(03.06.2013) 102. Milestone College-BDT-3,00,000.(03.06.2013) 103. Md. Rezwanur Rahman-BDT-5,000.(01.06.2013) 104. Regina-BDT-10,000.(09.06.2013) 105. Humayun Kabir- BDT-20,007.(14.05.2013) 106. Eastern Point Flat Owner’s Cooperative Society Ltd.-BDT- 51,565.(09.06.2013) 107. American International School, Dhaka (AISD) BDT 184832(11.06.2013) 108. Australian Residence BDT 50000/= (16.06.2013) 109. Rotary Club of Dhaka Buriganga BDT 377,000 (19.06.2013) 110. US Mission Bangladesh Employee Welfare Association BDT 150,000 ( 19.05.2013) 3.3.2 At CRP, Mirpur  DEA (Department of English Alumni), Dhaka Commerce College: BDT 62,450  Samiha Tasnim Khan: BDT 10,000 (29-05-13)
  • 33. 3.4 The Comparison of per hour’s Wages and Salaries: Bangladesh is the third largest exporter in the world of garments to the U.S. In 2009, Bangladesh shipped $3.41 billion worth of garments to the U.S. The United States is not trying to steal garment jobs from Bangladesh. In fact, 97 percent of all garments purchased in the U.S. are imports--with Bangladesh as the third largest supplier. So, the ratio of hourly wages and salaries of garment workers are remark here. Country Hourly Wages United States $8.25-14.00 United Kingdom $7.58-9.11 Venezeula $2.73 Costa Rica $2.19 Guatemala $1.21 Colombia $1.20 Honduras $1.02 Philippines $0.94-1.00 China $0.93 Peru $0.92 El Salvador $0.92
  • 34. Jordan $0.74 Malaysia $0.73 Nicaragua $0.65 Bahrain $0.57 Thailand $0.56 India $0.55-0.68 Mauritius $0.55-0.65 Vietnam $0.52 Egypt $0.50-0.87 Mexico $0.50-0.53 Sri Lanka $0.46 Pakistan $0.37 Indonesia $0.35 Cambodia $0.24 Bangladesh $0.21
  • 35. The collapsing problems of Rana plaza as well as the main environmental problems of Garment workers:  4.1 The reasons for collapsing the building.  4.2 The main environmental problems of garments workers.  Raw materials.  Unskilled workers.  Improper working environment.  Lack of managerial knowledge.  Gendered division of labour.  Wages.  Insufficient of loan.  Unit labour cost.  Working hours.  Poor accommodation facilities.  Safety Problems.  Political crisis.  Price competitiveness.  Lead time.
  • 36. 4.1 The reasons for collapsing the building: Those problems are responsible for collapsing the Rana Plaza at Savar , they are given below here:  Using of lower level materials.  Used unstable pillars use for the building.  Using the lower pillars for constructing the building.  The problems of building infrastructure.  Keep heavy machines at the building.  The instalment of generators not only on roof top but also the another floors.  Not to test the soil when was the building constructed.  Do not use the proper drawing map when was the building constructed.  Keep excess raw-materials in different floors at the building.  Stay excess workers in different floors at the building.  In spite of crashing the wall not to take proper steps.  The over confidence of the owner of the building.  Giving the error decision for foundation recognition.  Using political extortion for constructing the building illegally.  Not to build for facing earthquake  Make the building on a abandon pond by filing soil.  Lack of ethics to build the building.
  • 37. 4.2 The main environmental problems of garments workers: Which the main environmental problems of garment workers is become a common phenomenon these are given below:  Raw materials.  Unskilled workers.  Improper working environment.  Lack of managerial knowledge.  Gendered division of labour.  Wages.  Insufficient of loan.  Unit labour cost.  Working hours.  Poor accommodation facilities.  Safety Problems.  Political crisis.  Price competitiveness.  Lead time.  Raw materials:- Bangladesh imports raw materials for garments like cotton, thread colour etc. This dependence on raw materials hampers the development of garments industry. Moreover, foreign suppliers often supply low quality materials, which result in low quality products.  Unskilled workers:- Most of the illiterate women workers employed in garments are unskilled and so their products often become lower in quality.
  • 38.  Improper working environment:- Taking the advantages of workers' poverty and ignorance the owners forced them to work in unsafe and unhealthy work place overcrowded with workers beyond capacity of the factory floor and improper ventilation. Most of the garment factories in our country lack the basic amenities where our garment workers sweat their brows from morning to evening to earn our countries the major portion of our foreign exchange. Anybody visiting the factory the first impression he or she will have that these workers are in a roost. Improper ventilation, stuffy situation, filthy rooms are the characteristics of the majority of our factories. The owners profit are the first priority and this attitude has gone to such an extent that they do not care about their lives.  Lack of managerial knowledge:- There are some other problems which are associated with this sector. Those are- lack of marketing tactics, absence of easily on-hand middle management, a small number of manufacturing methods, lack of training organizations for industrial workers, supervisors and managers, autocratic approach of nearly all the investors, fewer process units for textiles and garments, sluggish backward or forward blending procedure, incompetent ports, entry/exit complicated and loading/unloading takes much time, time-consuming custom clearance etc.
  • 39.  Gendered division of labour:- In the garment industry in Bangladesh, tasks are allocated largely on the basis of gender. This determines many of the working conditions of women workers. All the workers in the sewing section are women, while almost all those in the cutting, ironing and finishing sections are men. Women workers are absorbed in a variety of occupations from cutting, sewing, inserting buttons, making button holes, checking, cleaning the threads, ironing, folding, packing and training to supervising. Women work mainly as helpers, machinists and less frequently, as line supervisors and quality controllers. There are no female cutting masters. Men dominate the administrative and management level jobs. Women are discriminated against in terms of access to higher-paid white collar and management positions. When asked why they prefer to employ women foe sewing, the owner and managers gave several reasons. Most felt that sewing is traditionally done by women and that women are more patient and more controllable than men.  Wages:- The government of Bangladesh sets minimum wages for various categories of workers. According of Minimum Wage Ordinance 1994, apprentices’ helpers are to receive Tk500 and Tk930 per month respectively. Apprentices are helpers who have been working in the garment industry for less than three months. After three months, Apprentices are appointed as helpers. Often female helpers are discriminated against in terms of wages levels, and these wages are also
  • 40. often fixed far below the minimum wage rate. A survey conducted in 1998 showed that 73% of female helpers, as opposed to 15% of their male counterparts, did not receive even the minimum wage.  Insufficient of loan:- Insufficiency of loan in time, uncertainly of electricity, delay in getting materials, lack of communication, problem in taxes etc. Often obstruct the industry. In the world market 115 to 120 items of dress are in demand where as Bangladesh supplies only ten to twelve items of garments. India, south Korea, Hong Kong, Singapore, Thailand, Taiwan etc, have made remarkable progress in garments industries. Bangladesh is going to challenge the garments of those countries in the world market.  Unit labour cost:- Bangladesh has the cheapest unit labour cost in South Asia. It costs only 11 cents to produce a shirt in Bangladesh, whereas it costs 79 cents in Sri Lanka and 26 cents in India. Clearly, Bangladesh’s comparative advantage lies in having the cheapest unit labour cost.  Working hours:- Though the wages are low, the working hours are very long. The RMG factories claim to operate one eight-hour shift six days a week. The 1965 factory Act allows women to work delivery deadlines; however, women are virtually compelled to work after 8 o’clock. Sometimes they work until 3 o’clock in the morning and report back to start work again five hours later at 8 o’clock. They are asked to work whole months at a time
  • 41. the Factory Act, which stipulates that no employee should work more than ten days consecutively without a break.  Poor accommodation facilities:- As most of the garment workers come from the poor family and comes from the remote areas and they have to attend to the duties on time, these workers have to hire a room near the factory where four to five huddle in a room and spend life in sub human condition. For four to five workers there is one common latrine and a kitchen for which they have to pay from Tk=2000 to Tk=2500/-.They share this amount among themselves to minimize the accommodation expense. One cannot believe their eyes in what horrible condition they have to pass out their time after almost whole day of hard work in the factory. After laborious job they come into their roost, cook their food and have their dinner or lunch in unhygienic floor or bed and sleep where they take their food. They share the single bed or sleep on the floor. The owners of these factories must not treat the workers as animals. The owners of these factories who drive the most luxurious car and live in most luxurious house do ever think that these are the workers who have made their living so juicy. Will these selfish owners ever think of these workers of their better living for the sake of humanity by providing better accommodation for these workers in addition to providing with the job.
  • 42.  Safety Problems:- Because of the carelessness of the factory management and for their arrogance factory doors used to be kept locked for security reason defying act Safety need for the worker is mandatory to maintain in all the organization. But without the facility of this necessary product a lot of accident is occur incurred every year in most of the company. Some important cause of the accident are given below- Machine layout is often staggered Lack of signage for escape route No provision for emergency lighting Doors, opening along escape routes, are not fire resistant Doors are not self-closing and often do not open along the direction of escape Adequate doors as well as adequate staircases are not provided to aid quick exit Fire exit or emergency staircase lacks proper maintenance Lack of proper exit route to reach the place of safety Parked vehicles, goods and rubbish on the outside of the building obstruct exits to the open air Fire in a Bangladesh factory is likely to spread quickly because the principle of compartmentalization is practiced.  Political crisis:- Garments industries often pay dearly for political unrest, hartal and terrorism etc. The international market has withdrawn quota advantage over garments export form Bangladesh since December 2005.
  • 43. Bangladesh has to advance cautiously for getting better position of her garments in the world market. Finally destruction of twin tower in 11 September 2001. invasion on Afghanistan and Iraq and depression in world Economy have seriously affected the export trade of Bangladesh.  Price competitiveness:- China and some other competitors of Bangladesh have implemented sharp price-cutting policies in exporting garment products over the last few years, but Bangladesh has failed to respond effectively to such policies. China was able to drop the export price of 29 garment categories by 46 per cent on average in the United States within a year, from $6.23 per sq metre in December 2001 to $3.37 per sq metre in December 2002. Bangladesh needs to respond to such price-cutting policies of its rivals in order to remain competitive in the quota-free global market.  Lead time:- Lead time refers to the time required for supplying the ordered garment products after the export order has been received. In the 1980s, the usual lead time in the garment industry was 120-150 days for the main garment supplier countries of the world; it has been reduced to 30-40 days in the current decade. However, in this regard the Bangladesh RMG industry has improved little; for example, the average lead time is 90-120 days for woven
  • 44. garment firms and 60-80 days for knit garment firms. In China, the average lead time is 40-60 days and 50-60 days for woven and knit products respectively; in India, it is 50-70 days and 60-70 days for the same products respectively. Bangladesh should improve its average lead time to compete in the international market.
  • 45. The Threats and effects on Economy in Bangladesh:  5.1 The Threats on Economy in Bangladesh.  5.2 The Effects on Economy in Bangladesh.  5.3 GSP opportunities.
  • 46. 5.1 The Threats on Economy in Bangladesh. It is known to all that Bangladesh is a developing country. So collapsing Rana plaza is a massive threat for the Economy in Bangladesh. As the collapsing building is interacted with garments industry so our national Economy can be lag behind from the present circumstances. Which threats and effects can be fallen on Economy in Bangladesh these are remarkable:-  The image of Bangladesh can be destroyed.  Foreign Buyers can be changed their opinion against Bangladesh garment sector.  Trustworthiness can be hampered.  Demand of Bangladeshi Product can be minimized.  Garments industry can be knocked at the destruction.  Unemployment tendency can be increased.  Garments industry can be demolished in future.  The life style of public people of our country can be changed into bad circumstances from this Economic effects.  The improvement of our country can be stopped.  The industrialization of our country can be fallen down by turns such as an unexpectable tragedy.  The international relation between our country between European Union can be divided in differentiation.  It Can be hampered to the universal brotherhood.  It can be influenced Globalization.  The reputation of our country can be hampered.  it can be created political gap among the political parties.  It can be allowed not stuck vehicles alerts.
  • 47.  For such a tragedy striking probability of personnel of garment industries can be increased. 5.2 The Effects on Economy in Bangladesh.  The overall Socio-Economic condition of our country can be damaged.  Bangladesh can be deprived of GSP facilities from the USA.  Production can be declined.  Products good quality can be ruined.  Foreign Currency can be declined.  Revenue target can be missed.  It Can be made loss that profit.  Economic increasing velocity can be gradually declined.  It can be money inflation  GDP growth rate can be minimized.  The tendency of poverty can be maximized day by day.  Financial aids from reputed organizations like World Bank,(IMF) International Monetary Fund can stop their aids to our Economy.
  • 48. 5.3 GSP opportunities:- The Generalized System of Preferences (GSP) opportunities which is derived from the United States of America and that is also exportable opportunity. GSP opportunity has been stopped preliminary for the worlds stress. It is known to all that GSP opportunity keeps a great contribution on the Economy of Bangladesh. It has already impacted on our national Economy. For stopping the GSP opportunity our Economy can be the running velocity than before. Basically the United States has stopped the GSP opportunity not for containing in our garment sectors such as, lack of better environment, lack of the proper distribution of Wages and Salaries, want of sufficient vacation, forcing to work, lack of allowances, lack of transaction facilities etc. are the main provisions regarding GSP stopping. If the GSP opportunity is not get back it can negative impact on our national Economy in Bangladesh. Our country will lag behind in garment sectors. So it should be adopted proper step to resume back the GSP opportunity. The USA suspended the Generalized System of Preferences (GSP) facilities on the entrance of Bangladeshi product into the US market which has created lack drop in our economy. Because of this suspension each and every Bangladeshi is very upset. The USA is our long outstanding partner of development. In fact, there was no such kind of GSP facilities in garments sector in the USA.. It is unfortunate that, they have brought into consideration the accident of Savar Rana Plaza, Tazrin Fashion, unsolved case of Aminul murder case. Since 2007, the biggest labor union of the USA, AFL- CIO has been persuading the USA to stop the GSP facilities for Bangladesh. The New York Times (July 25, 2013) writers "Bangladeshi garment industry`s trade group has seen its influence soar as the country has become a global garment power". Meanwhile, US congressman Sander Levin visited in Bangladesh to assess the progress of
  • 49. workers safety and socio economic condition of the country. Next GSP hearing will be on December as commented by USA envoy Dan W. Mozena. On July 19, the US government made public an action plan outlining measures to protect workers’ rights and address those in a meaningful way. On the basis of this action plan, the United States looks forward to working on the actions with Bangladesh it needs to take in relation to potential reinstatement of GSP benefit.Eilen O’ Kane Tausher has been appointed as an independent chair of the North American Alliance platform of US based retailers for Bangladesh worker safety. Though with the GSP facilities almost 4800 products of Bangladesh can enter into the US market without paying duty, the garments sector does not enjoy this facility. Recently, the man-made tragedy of Savar Rana Plaza is certainly an unfortunate event for Bangladesh. We come to know about the ill interest of a particular class of people ignoring the established rules and regulations. Due to this tragedy, almost, 1130 people died a tragic death and almost 200 people got severely injured. The tendency of ignoring the law of the country by some particular class of people is responsible for Savar Rana Plaza tragedy. When a country turns into a developed country from a developing country, there is exploitation and deprivation of labor, although it is not accepted at all.History showed in every country such type of incidents during the industrial reversal. Not only Rana Plaza but also many buildings of every corner of Bangladesh including Dhaka city have been built without following design, even those are built without the permission of concerned authority, many people change and expand the design of the buildings without feeling any hesitation.On the other hand, according to the rule of load management, it is said that when a building is made with 10,000 people load capacity; only 6000 people can work there.
  • 50. The building must be checked by a structural engineer if any type of crack is found. We can`t only depend on government only for that, rather we have to take private initiatives and obey ethical values to avoid such type of accidents.At the same time, I would like to invite NGOs to come forward for rehabilitation of the victim workers. Bangladesh Army has done a praiseworthy job finishing the rescue job skillfully. Certainly it can never be expected that again and again the laborers will become the victims of such kind of accidents. . If the GSP opportunity is not get back it can negative impact on our national Economy in Bangladesh. Our country will lag behind in garment sectors. So it should be adopted proper step to resume back the GSP opportunity. On the other hands, it will be happen an unthinkable revolution in garment sectors. As soon as possible the Government should take necessary steps so that our country does not bereft of GSP opportunity from the United States.
  • 51. The SWOT analysis and Findings:-  6.1 SWOT analysis.  6.2 Findings.  6.3 Questionnaires.
  • 52. 6.1 SWOT Analysis:- strengths:- 1. Suitable place for rescuing operations. 2. The unity of the all level people. 3. Capable to quick action taken 4. Rescuing operations by all people in a body. Weaknesses:- 1. Using lower raw-Materials. 2. Keeping heavy machines at different floors at the building. 3. Lack of rescuing instrument. 4. Using unstable pillars. 5. Political instability. Opportunities:- 1. The participation of various armed forces as well as the local people. 2. Location of collapsing building which is near the highway road. 3. The assistance from another country. 4. The assistance for rescuing instrument. 5. Good outlook to create awareness.
  • 53. Threats:- 1. Strike hartal and political instability. 2. Economics slow down. 3. Growing doubt about the garment industries. 4. Changing buyers needs. 5. It can be destroyed the demand of Bangladeshi garment products. 6. People can be demotiveted. 7. The tendency of workers can be declined. 8. They can’t certainty.
  • 54. 6.2 Findings:- 1. The problems of building infrastructure. 2. Using of lower level law-materials. 3. Keep heavy machines at the building. 4. Using of unstable pillars for the building. 5. In spite of its legal foundation, it is constructed with several floors. 6. Keep excess raw-materials at the different floors. 7. Not to test the soil when the building was constructed. 8. Make the building on an abandon pond by filling soil 9. The installment of the generators had not only on the roof tops but also the another floors. 10. Stay excess workers in different floors at the building. 11. Not to build for facing the earthquakes. 12. lack of ethics.
  • 55. 6.3 Questionnaires:- 1. Should the government take proper steps for stopping such types of tragedy ?.  Yes  No 2. Should the government as well as the BGMEA investigate about the tragedy ?.  Yes  No 3. Should we raise awareness among the whole people ?.  Yes  No 4. What should we do for the tragedy? Will we a vital role ?.  Yes  No 5. Besides the rescue aids, should we provide the food-stuffs for the victims ?  Yes  No 6. Ought the government to impose proper instruction by RAZUK for constructing building ?.  Yes  No 7. As a large sum of foreign currency come from abroad, so should the government as well as the BGMEA take proper steps for paying the proper Wages and Salaries?.
  • 56.  Yes  No 8. Should the garments industries provide moderate atmosphere for the workers ?  Yes  No 9. Should the government as well as BGMEA provide the transportation, and Others opportunities?.  Yes  No 10. Should the workers become self- fluent for getting their rights ?.  Yes  No
  • 57. Recommendation and Conclusion  7.1 Recommendation  7.2 Conclusion  7.3 References
  • 58. 7.1 Recommendations:- 01. Government should take an effective measures to stop such kind of tragedy. 02. At present our countries economy is fully dependent on readymade garment industry so the government should provide proper opportunity for the garment workers. 03. The government should investigate on this matter so that such kind of tragedy not to happen in future. 04. BGMEA should provide the proper wages and salaries to the garments workers. 05. RAZUK should not approve such types of unplanned drawing building structure. 06. By the government as well as the private sector (BGMEA) should take proper steps to control such kind of tragedy. 07. The government and private sector (BGMEA) should develop professional management especially for our garments industry. 08. The Government as well as the private sector (BGMEA) should also provide the allowance opportunity for the garment workers. 09. As garment industry takes a unavoidable role in our national Economy so the government should provide proper recognition as the workers. 10. If its become possible besides allowance opportunity, residential opportunity, transportation opportunity, should be provided.
  • 59. 7.2 Conclusion:- The Rana plaza collapsing is the greatest tragedy in the national history of Bangladesh. Now it is known to all the worlds people about what has happened on that day. On that day there are many people died unexpectedly and about 2,500 injured people are rescued from the collapsing building. The armed forces as well as the public local people participated to rescue those people alive. It was the day which is intolerable. In fine it can be said that the government as well as the private sector (BGMEA) Should take proper steps to control such kind of tragedy.
  • 60. 7.3 References:-  Websites:- www.wikipedia.com www.assignment.com  Daily Newspapers:- The Economist BBC News The Daily Stars