Impacts of Rmg Sector in Bangladesh National Economy Sample Essay
At independency in 1971. most perceivers of the freshly emerged state took a pessimistic position about the developmental chance of Bangladesh. Many thought that the state would stay for good locked in a ‘below poorness degree equilibrium trap’ . Although there is small room for complacence Bangladesh has come a long manner from at that place. About two-fifths of the economic system is now connected with the planetary economic system through exports. imports. factor and trade good markets ; the grade of openness of the economic system presently stands at 40 % .
Bangladesh can now truly claim that she has graduated from a preponderantly assistance having state to a trading state.
The export-oriented RMG sector has made important part to this abovementioned transmutation of the Bangladesh economic system. The function of our RMG enterpriser. domestic financial and fiscal. institutional policy support and inducements put in topographic point by consecutive authoritiess. significant RMG-supportive linkage activities within the domestic economic system and planetary market chances combined to make a narrative which is.
to be honorable and true. unparallel in the underdeveloped universe. When jute and jute goods were losing their traditional markets. with the chance of drastic autumn in for antique net incomes it is the RMG sector which came in first to replace it. and so to catch it. While traditional export sector could non give expected consequences. the RMG sector bit by bit injected dynamism in the export every bit good as in the domestic economic system though backward and forward linkage economic activities.
The export-oriented readymade garments ( RMG ) sector in Bangladesh. started its journey in late seventiess as a little non-traditional sector of export. Bangladesh exported RMG worth merely US $ 69 1000 when Reaz Garments exported its first cargo to USA in 1978. ByFY2002. within a span of about two decennaries exports have gone up to US $ 4. 5 billion. Over the past decennary entirely. the sector registered a phenomenal growing rate of 15 per centum per annum. which is impressive by any criterion. In fact. this was an exceptionally high growing rate for an emerging industry anyplace in the universe. The industrial base which sustained such high growings besides enjoyed a robust enlargement. from less than 50 mills in 1983 to more than 3. 400 in 2002. with the figure of RMG workers making about 1. 5million.
Despite many troubles faced by the sector over the past old ages. it continued to demo robust public presentation. competitory strength and. of no less importance. societal committedness. RMG’s part to Bangladesh economic system is well-known. well-appreciated and well-respected. However. frequently times the magnitude of its multiplier impact and deductions will warrant the support that this sector has been given over the past old ages and besides the up port it is presently seeking from the authorities. In FY2002 Bangladesh exported RMG merchandises deserving 4. 5 billion US dollars. Her portion in entire US imports of dresss was 3. 2 % ; in EU it was 3. 3 % and in Canada it was 3. 0 % . Bangladesh is known in these states as a little state with a strong presence.
Everywhere. RMG serves as a flagship merchandise of our state. bring oning people’s involvement in Bangladesh both as a tourer and investing finish. These are the impacts which are hard to quantify. yet without which the state possibly would non hold been able to project itself to a flight of high growing and higher criterions of life. Therefore. RMG’s part to Bangladesh. both direct and indirect. demands to be recognized for what it is. In the undermentioned pages. an effort is made to quantify the cardinal function that RMG has come to play in the economic system of Bangladesh. The RMG sector has besides played a important function in the societal metabolism in a broader context. This paper attempts to measure up facets such as adult females authorization. population control. instruction. environmental consciousness. riddance of kid labor which contributed to overall betterment in the HDI ( Human Development Index ) Indicators. It should be noted that the survey is non thorough. and can be farther improved upon.
Contribution in GDP. Export Earnings and Local Currency Retention and Foreign Exchange Net incomes by the Sector The Bangladesh RMG industry. with its woven and knit sub-components. is a pre-dominantly export oriented sector. with 95 per centum of the woven and 90 per centum of the knit exports being directed to foreign markets. The cumulative foreign currency net incomes by the sector. since 1978. when first export was registered. is estimated at 36. 6 billion dollars. Bangladesh’s RMG export gaining stood at 4. 58 billion US dollars in FY2002. In2002 this sector contributed 76. 6 % of the entire Bangladesh export of 5. 9 billion dollars in the same twelvemonth. RMG export in FY2002 was tantamount to 9. 5 % of Bangladesh’s GDP over the corresponding twelvemonth. At present the local value add-on by the RMG sector is estimated to be 45 % . Accordingly. local value add-on by the sector in 2002 was about2. 1 billion US dollars which was tantamount to 4. 3 % of GDP for the same twelvemonth. The value add-on created by the sector itself is estimated at 25 % of entire RMG export net incomes which amounted to about 1. 2 billion dollars or equivalent to 2. 4 % of GDP