Will the world fiddle while Bangladesh burns?
Episode description
The People’s Republic of Bangladesh in Southeast Asia is the second-largest exporter of ready-made garments in the world. The ready-made garment sector employs 4.4 million workers, and 65 percent of them are women. 84 percent of the country’s exports are from this one sector.
The garment workers get a pay raise every five years, and the last five have not been particularly kind - with the impact of the pandemic, increased food and food and fuel prices thanks to Russia’s invasion of Ukraine, and soaring inflation: 9.5% overall and over 12.5% on food alone.
In late October, the workers decided they had had enough - and they pushed back in a forceful and destructive fashion. Tens of thousands of workers went on strike, factories were burned or damaged, and four people lost their lives. The country has reached an uneasy peace, but how long can it last?
In this week’s episode of Dial P for Procurement, I’ll walk you through this particular global supply chain in order to:
- Better understand the ready-made garment industry and where Bangladesh fits into the mix
- Look at the economics, including cost pressures that are rising thanks to global competition and increased automation
- Consider what notable retail brands are doing (and not doing) to support the workers in Bangladesh
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