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Assessing The True Size Of The Garment Industry In Bangladesh

Assessing The True Size Of The Garment Industry In Bangladesh

In 2015 the NYU Stern Center for Business and Human Rights launched the findings of an 18-month study wanting on the actual measurement of the garment business in Bangladesh. The report concluded that there are more than 7,000 garment factories producing for the export market. The report revealed thousands of previously unacknowledged subcontracting factories in a country with chronic factory safety concerns.

A lately released comply with-up study from the BRAC University’s Centre for Entrepreneurship Development in Dhaka, confirms the NYU Stern Center’s findings. Utilizing an analogous methodology that combines analysis of a number of on-line databases and subject analysis the BRAC University Center discovered over 8,000 garment factories in Bangladesh (please see the comparability table below). Sponsored by the C&A Basis, this study reveals that over one third of the garment facilities recognized are subcontractors and most of these services aren't registered with any of the local Bangladesh business associations.

Why does this matter? What the findings of these two research reveal is that as many as 3 million workers are employed in workplaces that fall outside the scope of any current monitoring or remediation mechanisms. While many native suppliers say the trade has consolidated since 2015, the findings of these two parallel research clarify that a significant number of subcontracting factories continue to produce garments. These factories stay outside the scope of the most important worldwide factory safety initiatives that were created within the aftermath direct supplier of clothes the 2013 Rana Plaza tragedy. Among these initiatives are international umbrella organizations, the Bangladesh Accord, and the Alliance for Bangladesh Office Safety, each shaped by international manufacturers and retailers in 2013. Collectively these organizations embody over 200 international manufacturers and retailers, all of whom have made commitments to address factory issues of safety to be able to make Bangladesh’s garment sector secure and maintainable.


In April the NYU Stern Center assessed the progress reports of those organizations and found that less than a hundred factories had been fully remediated beneath the systems put in place by the Accord and Alliance. While some remediation efforts have begun to happen at hundreds of additional factories, it is clear that a lot stays to be done.

Seeking to the longer term the Bangladesh Accord not too long ago introduced an extension of its mandate until 2021 however this determination is being challenged by each the government of Bangladesh and by native manufactures by their trade affiliation, the BGMEA.

It is encouraging that BRAC, supported by the C&A Basis and endorsed by the BGMEA (Bangladesh’ largest trade trade association), has just introduced a second part of their mapping efforts, to follow their initial discovering of eight,000 facilities. Their plan is to use the identical area research methodology and digitally map the entire industry in Bangladesh. If they succeed in creating a map that includes each registered facilities and subcontractors, stakeholders can begin to have a more knowledgeable conversation about what it takes to upgrade the sector as an entire and the place to prioritize funds.

Understanding the true scope of the problem may additionally move the dialogue beyond remediating individual factories to addressing systemic points together with infrastructure challenges. For example, we now have identified that fixing an overstretched electrical grid will be essential for creating a maintainable and useful manufacturing industry. To address these systemic points, international finance establishments, the Bangladesh authorities, foreign donors and governments must contribute and work towards the implementation of a comprehensive factory security plan.