High and Lows of Bangladesh Textile Industry Essay - 23

High and Lows of Bangladesh Textile Industry - Essay Example The move to join was seen by many as a setback to the economy, but this was not the case. The textile export in Bangladesh continued to grow while, in 2008, the rest of the country suffered economic recess, but Bangladesh enjoyed an export rise. The textile industries rose to 5000 factories that provided employment to about 3 million people (2). The developed countries underwent economic recess in 2008-2009 and were forced to import low- cost garments from Bangladesh to meet the demand of their customers who wanted low prices. These companies included Walmart and as a result, a Hong Kong manufacturing company- Li & Fung enjoyed a 25 % rise in 2009 as compared to China whose sales dropped by 5%. The underlying factors that triggered an increase in the exports were based on the fact that labor costs were low due to the presence of hourly rates of wages. The wages were low in Bangladesh with the minimum of $ 38 a month as compared to China that went up to $138 a month. Other factors included; few regulations that are equivalent to no rules at all, a good network of supplies which saved on transport costs, import duties and time. Bangladesh also benefited from not being China as the importer had become too independent on their imports and wanted an alternative. This came as a result of an increase in costs if the problem was no t addressed. All these factors favored Bangladesh, and it became the second largest to China garment exporter (2). Some of the main setbacks to economic development include power disruption, poor infrastructure since the government has underinvested as compared to China. Apart from these, Bangladesh underwent economic crisis after the collapse of the Rana Plaza building that hosted five garment factories. The collapse came as a result of not following construction procedures as the building could only hold five floors.