Tales from the Development Frontier Part 1

Page 407

Textiles and Apparel

of labor for production. Openness to foreign investment was a key to success, and the investments helped alleviate domestic financing constraints. Zambia's apparel industry was adversely affected by the government's macro and industrial policies. Currently, the three main constraints on Zambia’s competitiveness in apparel are poor trade logistics, low labor efficiency, and high input costs. In addition to Zambia’s great distance from ports, other cost-inflating factors include delays at intermediate borders, high fuel prices, and poor-quality roads. An absence of competitive input industries in Zambia raises the input costs for apparel producers. While the country produces highquality cotton, this does not translate into lower input costs for local producers because Zambia exports all its cotton, the price of cotton is high, and the spinning and textile industries are weak.

Apparel Production, Bangladesh The garment industry has been a source of economic growth in Bangladesh. From modest beginnings, it is now world renowned, accounting for 5 percent of the country’s gross domestic product (GDP) and close to 50 percent of industrial employment. Over 2007–11, the industry doubled its export volume to $17.5 billion, close to 80 percent of the total exports of the country. Its output has remained strong despite myriad obstacles. Ready-made garments and knitwear have accounted for more than 70 percent of manufacturing investments over the last two decades. The industry began with the production of final goods before advancing to more complex production, including intermediate goods. The industry has grown dramatically under the guidance of the Bangladesh Garment Manufacturers and Exporters Association, from about 30 factories in the early 1980s to an estimated 5,100 in 2011. The sector employs 3.6 million people, 80 percent of them women. As wages in China rise, there will be pressures on Chinese factories to move to Bangladesh to take advantage of the combination of price competitiveness and quality. The garment industry has put Bangladesh on the international industrial map. The country is the fourth-largest garment exporter among

381


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.