Ridan Mahbub
Bangladesh is one of the global hubs of the world fast fashion industry.
The products its garment factories export stock the shelves at H&M, Gap, Zara and many more international brands’ fast fashion items. Over almost four decades, this has transformed the country from one of the world’s poorest to a lower-middle income nation.
Indeed, Bangladesh is known all around the world for its Readymade Garment (RMG) industry. Bangladesh’s apparel industry accounts for over 83% of the country’s exports and is widely accepted as the lifeline of the country’s economy. For decades, Bangladesh has thrived as a central hub in the global fast fashion industry, producing affordable clothing for brands like H&M, Gap, and Zara. This multi-billion-dollar garment industry has played a significant role in transforming Bangladesh from one of the poorest nations into a lower-middle-income economy. However, recent political and economic turmoil, which includes the resignation of Sheikh Hasina, the prime minister of Bangladesh for 15 years, amidst month-long protests, coupled with a reliance on this single industry, has left Bangladesh at a critical crossroads.
That’s no small amount when fast fashion exports account for 80% of Bangladesh’s export earnings. Even before the events of the past few months, Bangladesh’s garment industry – and its economy – were not in good health. Workers’ grievances and labour unrests, deadly accidents of the past and the Covid-19 shutdown had all taken their toll in the garment sector which is one of the main economic lifelines for Bangladesh.
Recent events “will impact the confidence level of brands”, Mohiuddin Rubel, a director at the country’s garments manufacturers and exporters association, BGMEA told to BBC. “And probably they might think – should we put all our eggs in one basket?” he says, noting rival garment-producing countries like Vietnam. Indeed, Kyaw Sein Thai, who has sourcing offices in both Bangladesh and the US, suggests the recent political unrest could result in a “10-20% drop in exports this year”. That’s no small amount when fast fashion exports account for 80% of Bangladesh’s export earnings.
Due to higher utility costs, workers’ increased salary, uncertain political situation, inefficient port management, corruption and mismanagement by tax officials, the cost of operation in Bangladesh has been soaring which actually affecting the “inexpensive – cheap manufacturing” appeal of the country. On the other hand, not only global demand on apparel products has declined but also competing countries have been working fiercely to get the business.
Fast Fashion and Political Unrest
In August 2024, weeks of mass protests led to the ousting of Prime Minister Sheikh Hasina, plunging Bangladesh into a state of unrest. The protests were primarily driven by student dissatisfaction over the controversial quota system for government jobs, which later became a mass movement which demanded the resignation of the autocratic government of Sheikh Hasina. The severe crackdown on the protests by the police and armed forces culminated in widespread violence, with hundreds of casualties and the destruction of several factories. A nationwide internet blackout further disrupted manufacturing, causing significant concern among international brands.
As a result, major apparel companies have begun reconsidering their reliance on Bangladesh as a key supplier. Industry leaders fear that political instability and protests could lead to a 10-20% drop in garment exports this year alone, a major blow for an economy already struggling with a decline in foreign reserves and increased production costs. Mohammad Hatem, President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) apprehends that Bangladesh garment industry might lose more than 20% orders in coming days if appropriate confidence building measures are taken.
Economic Challenges Beyond Garments
While the garment industry has created millions of jobs, many of them remain poorly paid, with wages falling well below the national minimum. Factory workers, some of whom earn barely enough to survive, have been at the forefront of recent protests demanding better pay and working conditions. Union leaders are calling for wage increases to reflect the rising cost of living, but even with such changes, the deeper issue of job scarcity for the country’s educated youth remains unresolved.
Bangladesh’s economic woes are exacerbated by excessive government spending on infrastructure projects and cronyism, particularly during Sheikh Hasina’s administration. The financial system has been further weakened by powerful businessmen with political connections failing to repay loans, a situation described by the country’s new central bank governor as a “designed robbery of the financial system.”
The Need for Diversification
Experts like Dr. Fahmida Khatun from the Centre for Policy Dialogue argue that Bangladesh must diversify its economy to reduce its dependence on fast fashion. Despite efforts on paper to branch out into sectors like technology, little progress has been made. For example, a disused technology park outside Dhaka serves as a symbol of the government’s failure to create meaningful, higher-paying jobs outside of the garment sector.
With the newly appointed interim leader, Nobel laureate Muhammad Yunus, there is renewed hope for significant economic reforms. Yunus, known for his pioneering work in microfinance, is expected to address corruption, streamline foreign investment processes, and improve job creation initiatives. However, with declining global demand, deteriorating relations with India, and the looming threat of climate change, the road to recovery is steep.
Conclusion
Fast fashion is controlled by demand. The industry needs to pump out clothing quickly so stores have the clothes in stock before the trend fades. American and European demand for Bangladesh to produce is constantly increasing, which creates lower wages, more precarious working conditions and detrimental environmental consequences.
Producing massive quantities of garment products has a huge environmental cost. According to CNN, 1/5 of water waste comes from fashion production. Fast fashion companies generally disregard the negative impact apparel production has on the environment, just as they disregard the wellbeing of their employees.
Various accounts have emerged of toxic clothing dyes and industrial waste being dumped into water bodies in Bangladesh. Dyes have polluted, capital Dhaka’s Buriganga river so extensively that it appears black for the most of the time of the year. Many factories also don’t dispose of their trash properly, causing a buildup of plastic in landfills, water sources, and even the streets of Bangladesh. According to the Bangladesh Department of Environment, 21,600 cubic meters of toxic waste and trash are released into the Buriganga River daily!
Bangladesh’s future depends on its ability to balance the importance of its garment industry with the need for economic diversification as well as environmental protections. While fast fashion played a vital role in its rise to lower-middle-income status, reliance on this single sector, combined with recent political and economic challenges, has exposed significant vulnerabilities. Only comprehensive reforms and long-term planning can steer the country toward sustainable growth in the face of mounting challenges.
(Ridan Mahbub is an ILOT scholarship receiver and student at the University of British Columbia (UBC), Vancouver, Canada. He has been pursuing a Bachelor of International Economics. He is also representative of The Apparel Digest for North America)
