Question: rana plaze case: On April 2 4 , 2 0 1 3 , the Rana Plaza factory building collapsed in the Savar industrial district outside

rana plaze case: On April 24,2013, the Rana Plaza factory building collapsed in the Savar industrial district outside of Dhaka, the capital of Bangladesh. Over 1,100 people were killed in the worst industrial accident1 since 1984 when over 2,000 people were killed (and 150,000 injured) in the Union Carbide plant gas leak in Bhopal, India.2
Most of the victims worked for the five garment factories housed in Rana Plaza, whose primary clients were European, U.S., and Canadian firms. Export contracts to such firms had helped Bangladesh become the worlds second-largest clothing exporter.
international brand owners, domestic and foreign governments, labor unions, and non-governmental organizations (NGOs) began to discuss responsibilities for improving conditions for Bangladeshi garment workers.
The garment industry became a major force in Bangladesh after the Multi-Fiber Arrangement (MFA) was enacted in 1974. The MFA regulated the sale of garments and textiles from developing countries to First World countries. The MFA, which was in effect until 2004, imposed quotas on garment exports from Korea, China, Hong Kong, and India.4 No quotas were imposed on Bangladeshs garment exports, and its industry grew from $12,000 worth of exports in 1978 to over $21 billion in 2012. Even after the MFA expired, Bangladesh maintained export volume, thanks to its low labor costs. In 2012, Bangladesh was the second-largest garment exporter in the world, after China.5
The garment industry accounted for 13% of GDP
he industry employed 3.6 million people (and an additional 6 million, through indirect employment) or roughly 2% of the population.6
Workers in garment factories were paid approximately 13% more than workers in other industries.9 The vast majority of garment workers were women. In 2011, around 12% of Bangladeshi women between 15 and 30 years of age were employed in the garment industry.10
In 2013,2,000 of 5,000 garment factories had export contracts, with many of the remaining 3,000 factories working as subcontractors that provided additional capacity for the factories with international orders.
Nearly 90% of garments produced in Bangladesh were exported to the United States, Europe, and Canada. . In 2012, the U.S. alone received $4.9 billion worth of garment exports from Bangladesh
Brands with operations in Bangladesh included well-known global fast-fashion labels such as H&M, Inditex (Zara), and Loblaws (Joe Fresh), as well as other low- to mid-priced labels like Walmart, Gap, and PVH (Calvin Klein, Tommy Hilfiger, Timberland).
Low-cost production and large capacity were key incentives for multinational corporations (MNCs) to produce garments in Bangladesh. The minimum wage in 2012 was $37 per month and had only increased by $29 over the past 30 years.1
In comparison, China, the largest clothing exporter, had a minimum wage four times that of Bangladesh and saw its labor costs increase by 30% in 2011
More than 1,000 garment workers were thought to have died and 3,000 to have been injured working in Bangladeshs garment industry since 1990.15
The quick growth of the garment industry had resulted in fast construction of factories, often at the expense of adhering to building codes. The government feared foreign investment and export contracts would flow to other low-cost garment-producing countries if MNCs perceived Bangladeshs factory safety record and labor disputes as risks to their brands. In 2012, the U.S. ambassador to Bangladesh shared with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) details of a call he received from the U.S. CEO of one of Bangladeshs largest garment export customers. The CEO stated his concern that the tarnishing of the Bangladesh brand may be putting our companys reputation at risk.
The BGMEA claimed to regularly monitor member factories for safety compliance. However, it was unclear the extent to which compliance was enforced
Following the Tazreen garment factory fire caused by unsafe storage of flammable materials in November 2012, which killed over 100 workers, BGMEA inspectors were sent to member factories to check labor and safety compliance. Four of the buildings inspected, which belonged to BGMEA president Atiqul Islam, were found to have multiple violations.17
Numerous NGOs sought to improve labor and safety conditions for Bangladeshs garment workers. Care Bangladesh partnered with MNCs to create programs to help female garment workers develop leadership skills. The Global Womens Economic Empowerment Initiative, a partnership between Care Bangladesh and Walmart, helped nearly 24,000 female garment workers learn thei . Why did the tragedy occur and who (in your opinion) is responsible (i.e., how would you assign blame or responsibility for the tragedy?)
2. What are your recommendations going forward to prevent the reoccurrence of the tragedy? Your recommendations can be targeted to the various parties who have been assigned responsibility in Q1.

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