Bangladesh’s meteoric rise as a global apparel manufacturing powerhouse has been a cornerstone of its economic development. The country’s textile industry, the lifeblood of its export-oriented economy, has propelled millions out of poverty. However, a series of student protests that erupted in recent months has cast a long shadow over this vital sector, threatening to derail years of progress.
Bangladesh’s textile industry is an economic behemoth. It accounts for a staggering portion of the country’s GDP and provides employment to millions. In recent years, the sector has witnessed robust growth, with exports surging to unprecedented heights.
As per data from the Export Promotion Bureau (EPB), Bangladesh earned US $47.39 billion in textiles and garments exports in 2023, an increase of $1.68 billion or 3.67 percent over 2022. Of these export earnings, woven apparel and knitwear exports stood at $46.99 billion, and home textile exports were 1.09 billion.
However, the idyllic scene has been shattered by the eruption of student protests. Bangladesh Prime Minister Sheikh Hasina has stepped down after 15 years in power, a tenure the opposition has labeled as “authoritarian rule.” Her resignation has ignited celebrations across the nation.
Hasina’s decision to resign followed weeks of escalating protests against government job quotas, which spiraled into widespread unrest. The government’s harsh crackdown on the demonstrations resulted in at least 280 deaths and thousands of injuries.
The textile industry bore the brunt of the disruptions. Factory closures, transportation bottlenecks, and supply chain disruptions became commonplace. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) reported that the protests led to production losses of [Insert Figure] billion taka in the first few weeks alone. Moreover, the industry faced challenges in meeting export deadlines, leading to order cancellations and penalties from international buyers.
The prolonged protests also eroded investor confidence. Foreign direct investment (FDI) into Bangladesh, already on a downward trajectory, took a further hit. Investors, wary of political instability and potential disruptions, adopted a cautious stance, delaying or canceling investment plans. This is particularly concerning given the industry’s reliance on foreign capital for technological upgrades and capacity expansion.
The adverse effects of the protests extend beyond the immediate economic losses. The negative publicity surrounding the unrest has damaged Bangladesh’s image as a stable and reliable investment destination. This could deter potential investors and buyers from considering the country for future business ventures.
Furthermore, the protests highlighted underlying structural issues in the textile industry. Workers’ rights, safety concerns, and environmental sustainability have been long-standing challenges. While the government has taken some steps to address these issues, the protests underscored the need for more comprehensive reforms. Failure to do so could lead to further disruptions and reputational damage.
To mitigate the impact of the protests and restore investor confidence, the government must prioritize stability and security. Effective measures to prevent future disruptions, coupled with transparent and accountable governance, are essential.
In parallel, the textile industry needs to enhance its resilience. Political stability, diversification of markets and product lines, as well as investments in research and development, can help reduce vulnerability to shocks. Additionally, the industry must accelerate efforts to improve working conditions, safety standards, and environmental performance.
Bangladesh’s textile industry has demonstrated remarkable resilience in the face of challenges in the past. With concerted efforts from the government, industry stakeholders, and the international community, the sector can overcome the current setbacks and regain its growth trajectory. However, the road to recovery will be arduous, and it is imperative to learn from the past and build a more sustainable and inclusive future for the industry.
The views expressed in this article are the author’s own and do not necessarily reflect Coverpage’s editorial stance
