Garment industry alleviated extreme poverty

The garment industry has had a huge positive impact on the country's social and economic indicators, analysts said yesterday.
Extreme poverty in Bangladesh would have been much higher had there been no garment sector, Melanne Verveer, professor of the US's Georgetown University, said, adding that the sector has had a multiplier effect on the economy and in people's lives.
Quoting a study report, Rachel Heath, another American academician, said the garment industry has changed the lives of women -- their marriage age and fertility -- over the years.
The comments came at a seminar styled 'Can RMG help Bangladesh become a middle-income country?' on the second day of Dhaka Apparel Summit organised by Bangladesh Garment Manufacturers and Exporters Association.
Bangladesh Bank Governor Atiur Rahman said the sector's $50 billion export target by 2021 is “quite realistic and attainable”.
There are challenges though, he said, citing rapid urban expansion, land use, safety and green output practices as examples.
Mustafizur Rahman, executive director of the Centre for Policy Dialogue, said $50 billion is in no way an ambitious figure.
“The target should be $60 billion -- even $70 billion is possible.”
The least-developed country status is very critical though: once the country graduates to the middle-income bracket, it will lose its zero tariff market access privilege.
Commerce Minister Tofail Ahmed disagreed with Rahman, stressing that there will be no problem if the country does not get duty-free market access.
“We don't want it [duty-free market access] -- we will go for free trade agreements,” Ahmed said.
Parliament Speaker Shirin Sharmin Chaudhury said the country is moving in the right direction.
Still, many things need to be done regarding energy, connectivity, red tape, skill development and labour welfare and so on.
She also mentioned political commitment, which will take the country forward.
Former commerce minister Amir Khosru Mahmud Chowdhury said the country should not brand itself as the cheapest apparel producer after 35 years in the industry.
He said the sector can meet even a $60 billion export target if there is political stability in the country.
Rubana Huq, managing director of Mohammadi Group, moderated the discussion. Jean Lambert, chair of the European Parliament's Delegation for Relations with Countries in South Asia, took part in it as well.