Personal document: Offshoring in Bangladesh

Document: Offshoring in Bangladesh, flaws and advantages.

The Bangladeshi garment sector is a leading garment manufacturing industry in the world that
has been growing constantly during the last decades. Today the garment sector represent
the 80% of the national export and counts USD 19 billions revenues; these numbers describe
the sector as the most important manufacturing industry in Bangladesh. The numbers are also
outstanding when it comes to number of workers employed, about five millions, and number
of factories about five thousands of different sizes. The cheap labour cost attracted many
international brands that chose the Bangladeshi factories to produce their products for the
European and US markets that take up to the 60% and 20% of the total export.

Despite the impressive numbers presented, the level of working conditions cannot be
described with the same positive attitude. In fact to an increasing level of profit and continuous
expansion, the new wealth has not been equally distributed and workers are employed in
factories that too often can be categorised as sweatshops. The working conditions do not
allow a decent level of living for garment workers that are exploited and forced to meet
exhausting production quota for very little level of wage and very low social security. The
situation is even more worsened by the very low power that unions have and their limited
activities that cannot ensure a proper protection of workers’ rights.

I.Description

This is an extract from Riccardo David Mariani’s Master thesis for his Master of Science in Engineering and Policy Analysis. He decided to present the working condition in the bangladeshi garment sector. This excerpt mainly deals with the positive aspect and the downside of offshoring textile industry in Bangladesh.

As economic globalization becomes an increasing movement in modern society, it is not abnormal to see a greater frequency of multinational corporation leading their business to a variety of countries mainly situated in developing regions.

However,  we can ask us if offshoring jobs and profits can ever be a positive approach to economic growth and a fair, ethical and respectful business for employees and employers at the same time?

1. The astonishing rising of economy.

In the last three decades, the garment sector of Bangladesh has raised to be the most important industry of Bangladesh in terms of exports. the speed at which it has grown is astonishing: from 384 factories employing 120 thousand people to 5400 factories employing, around 4 million people and representing almost 80% of Bangladeshi total export.

This makes Bangladesh’s economy increase radically. Offshoring jobs enable poor or uneducated people to have access to work and to own a wage at the end of the Month and without any diploma neither a specific formation.

Besides being beneficial for the particulier, it strengthens the country’s economy and the cheap Labor attracts more and more CEO to offshore their factory and production in bangladesh. The country is becoming the biggest threat to China’s clothing sector when it comes to exports.

Besides, cotton comes from Bangladesh or India, which reduces considerably the cost of the transport of raw materials. Everything is made in low cost Labor country, which are at the same time developing countries, it helps their economy to raise and it helps developed countries to save money.

European or American textile company don’t need to pay their employees a high wages or to support their employee’s demonstration anymore. they found people who are satisfied to work for a low wage and to produce more in term of quantity.

It’s evident that the presence of these factories does affect the growth of the country and it’s beneficial for the development of the nation on a global scale.

II. Questioning the ethical part of offshoring jobs.

However, we can’t deny that workers are not always well-treated. Unfortunately, exploitation it’s a well known fact, such as child labour and it’s sad to say that it’s widespread in the garment sector.  

Unfortunately, a lot of families can‘t afford tp live with only 2 small wages, that’s why they decide to send their children to the factory.

From the cotton harvest to the production of the clothes, Around 5 millions children are exploited. It’s quite clear that sending the youths to the factory or to the field is direct violation of the law. Even if international norm for worker’s right do exist, sadly enough they are very often not respected.

Labor union are very weak in Bangladesh and they are not powerful enough to provide security neither the respect of worker’s right.

Left to their own devices, employees are more likely to be exploited. workers are often uneducated or illiterate, which put them in a vulnerable situation. Chiefs take advantage of this weakness and they reinforce pressure on them, given that this job is the only opportunity for employees to survive, they minimise their wages or they let them wait for months until they paid them.

Moreover, we can add a lack of security, awareness and sometimes hygiene which can lead to disasters. In 2013 the building of production settled in Rana plaza collapse and more than a thousand workers died.

Conclusion:

I would like to conclude by pointing out that the flaws and consequences of relocation such as exploitation or child Labor is not a treatment reserved to Bangladesh or to the garment sector. A lot of other low cost developing countries selling their workforce are likely to fall prey to the attractive offers and proposal of developed countries.

Unfortunately, capitalism runs the world and it’s what motivates companies and CEO. it’s true that People tends to make benefits whenever they have the opportunity to do it, even if it can have an impact on humanity, that’s why employees must beware.

Personal Opinion:

I’m convinced that we can find an "in-between" and we can still offshore to developing region to help them rising. However, international norms have to be respected and workers as well. Word such as "exploitation" should not take part of our vocabulary in 2018. We have to provide a brighter future for each corner of our planet and every single person.