Question: Write 8 pages of background on this case below: Export concentration is not a new phenomenon for Bangladesh. Bangladeshs export performance so far presents signs
Write 8 pages of background on this case below:
Export concentration is not a new phenomenon for Bangladesh. Bangladeshs export performance so far presents signs of strength in its export basket (Sattar, 2015). Bangladesh has been the one of the biggest export trade country of RMG and Apparel in the world market. The industry has grown dramatically over the past 40 years, and today accounts for 82% of Bangladeshs total exports. Table A (In appendix) shows that, Export of RMG in 2015-16 were (in US$) 28094.16 million dollars which were 82.01% of total export (34257.18 Million dollars) of Bangladesh (BGMEA, 2015-16).In terms of core economic consideration RMG holds almost 14.07 percent of the GDP of Bangladesh (Islam et al., 2016). Rahman (2002) described that the growth of RMG exports has undoubtedly positive effects on macroeconomic balances. It has helped maintain a sustainable trade deficit. This industry has not just contributed through the dollars earning but also in socioeconomic prospects, creating a huge number of employment opportunities mostly for the poor illiterate workforce of the country (Adnan et al., 2015). Table A (in Appendix) shows that, there are now 4,825 garment factories in Bangladesh employing over four million people (BGMEA, 2015-16). Insufficient salary, discrimination, unhealthy work environment, frequent work accidents and hazards are commonly seen incidents in RMG sector in Bangladesh (Aslam et al., 2011; Adbin, 2008; Berik & Rodger, 2008; Hossan et al., 2012a; Hossan et al., 2012b). Besides that poor working conditions and work practices (like irregular pay) in the factories and a lack of social compliance are serious concerns in RMG sector, as these lead to frequent labor unrest (Hossan, et al., 2012a; Muqtada et al., 2002). Fortunately the ready-made garments (RMG) sector opens a big window for women as a means of employment. This industry has provided the largest employment opportunities for women in the industrial sector where more than 90 percent of the production workers are women (BKMEA, 2015). Women participation in RMG industry in Bangladesh is the highest among all South Asian countries. All other countries are lagging far behind Bangladesh, except Sri Lanka which is a little closer to Bangladesh and amounts to 81 percent women participation (Appendix: Table B). The numbers of workers have increased at faster rates and reached to 4 million in 2012-2013 fiscal year. During the following year however, the employment level remained stagnant. Out of these total labor force almost 90 percent are women. In fact, a large supply of cheap women labor remained the key success factor in the initial stages of this the countrys flagship export-oriented industry (Bhattacharya & Rahman, 1999). Emergence of RMG sector is seen as the best thing happened in Bangladeshi economy by not only its contribution through the export earning but also the creation of generous employment opportunity for labor force specially bringing women to the mainstream of economy (Islam, 2013). Women workers are not normally in decision making position in RMG sector. Women work merely as helpers and less frequently as line supervisors (Kabeer1991:135). In fact, a large supply of cheap and flexible women labor was used to be the key success factors in the initial stage of the countrys flagship export-oriented industry (Bhattacharya & Rahman, 1999). The most frequently used definition of job satisfaction has been given by Locke (1976), who defined it as a pleasurable or positive emotional state resulting from the appraisal of ones job or job experiences. Job satisfaction by definition is employees sense of achievement and success that is directly linked to productivity and personal wellbeing (Ahamed, 2014; Miller & Rosse, 2002). Employees are the key source of competitive advantage for business organization and as innovative and committed workers they can make dramatic changes in business performance and sustainability (Agarwala, 2011; Nankervis & Compton, 2002). Job satisfaction is such a tool that improves the motivation and commitment of workers which consequently leads to higher growth and productivity (Rubel & Kee, 2013; Shabnam & Sarker, 2012). Without satisfied employees, no organization can achieve their business target as unhappy workers will never work for progress and prosperity. On the other hand, job dissatisfaction raises workers voice and creates unrest (Hossan et al., 2012a; Noe et al., 2007). Dissatisfied RMG workers in Bangladesh are creating unrest and raising voice in recent time. Due to labor unrest, RMG sectors are losing its market as unrest disrupts production functions and passes the message to the buyers regarding employee discrimination (Ahamed, 2014; Chowdhury, et al, 2006). Therefore, job satisfaction is essential to enhance peace and harmony at work place as well as to ensure higher productivity. In order to stimulate rapid economic growth of the country, particularly through industrialization, the government has adopted an 'Open Door Policy' i.e EPZ. In view of the growing need of attracting foreign and local investment, the concept of Export Processing Zones (EPZs) established to enhance investment, employment, export, to transfer technology and earn foreign exchanges. It also argues that developing countries can take advantage of the opportunities provided by EPZs for the acquisition of superior technology, upgrading of labor and managerial skills, and greater access to foreign markets. There are eight EPZs located in Dhaka, Chittagong, Karnaphuli, Adamjee, Comilla, Mongla, Ishwardi and Uttara, employing around 382000 workers across the country, out of which an estimated number of 300000 workers belong to the garment factories. EPZs contribute to poverty reduction. Contribution of EPZs to new job creation has increased from 17,540 in 2013-14 to 32,967 in 2014-15 with an annual increase of 87.95% (Yunus, M., Mondal, 2015). EPZs are contributing a huge impact in the economy of Bangladesh. In 2015-16 fiscal years, BEPZAs contribution to the total national export was 18.30 percent in 2013-2014, but it reached to 19.58 percent in the 2015-2016 fiscal year. During 1999-00/2014-15 period the EPZs contributed Tk. 4.5 billion in the form of income taxes. BEPZA contributed Tk.1.8 billion in the form of DSL during 1992- 93/2014-15 period. In 2013-14 fiscal year, goods worth US$ 5525.31 million were exported from the operating industries of EPZs. In 2015-16 fiscal year, exported goods worth US$ 6113.49 million from the enterprises of eight EPZs from Bangladesh and rest are from rest of the world.
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