Bangladesh's garment industry reopens amid political upheaval

By Juliette Tafreschi, August 21th, 2024

After weeks of violent protests that led to the resignation of Prime Minister Sheikh Hasina, Bangladesh's most vital industrial sector, the garment industry, has reopened. The sector, which is responsible for around 90% of the country's exports and supplies major western brands such as H&M, Zara and Carrefour had been forced to shut under curfews.

The protests, which began in early July with university students demanding the reform of quotas for public sector jobs, quickly grew into a broader anti-government movement. Clashes between protesters, police and pro-government groups killed more than 650 people, including at least 90 deaths in a single day, the highest single-day death toll in recent history according to the BBC. The violence prompted the government to impose a nationwide curfew and internet blackout. 

Garment factories, which employ over four million people and supply major global brands, were badly affected by the violence and subsequent curfews. With the interim government now in place, industry leaders are hoping for a swift resumption of operations. According to the news agency Reuters, H&M has indicated that it will support its suppliers in Bangladesh during the recovery period despite the disruptions. 

Factory managers have reported to Reuters that there has been minimal material damage but significant financial losses due to disruption in production. The reopening is seen as a crucial step towards stabilizing the economy, which is heavily dependent on the ready-to- wear industry. However, there are concerns about the long-term impact on trade. 

Representatives of the Bangladesh Army Task Force and garment factories, including BGMEA directors Asif Ashraf and Shovon Islam, met on 12 August to ensure improvement in safety and public order in the garment industry. The aim is to focus on increasing safety in the factories and that of the workers, establishing zone-based community policing and tackling criminal activities to create a safe production environment. 

Hasina resigned on 5 August and fled to India, ending her 15-year reign. Her resignation came after a particularly violent day when a large crowd stormed her official residence in Dhaka, leading to looting and unrest in the capital. The interim government, led by Nobel Laureate Muhammad Yunus, is working to stabilize the nation. Yunus has named a cabinet that includes student activists and senior civil society leaders and has already ordered the release of jailed former Prime Minister Khaleda Zia and student protesters. 

In a separate meeting, a BGMEA delegation led by Acting President Khandoker Rafiqul Islam met with Chief Adviser Dr. Muhammad Yunus. Dr. Yunus acknowledged the garment industry's contributions and expressed optimism about achieving $100 billion in exports by 2030. The BGMEA requested Yunus’ advocacy for increased apparel purchases from Bangladesh, along with proposing a taskforce to address industry issues. Dr. Yunus committed to necessary reforms, taskforce formation, and international promotion of Bangladesh's apparel industry.

Sources:
https://www.bbc.com/news/articles/cq5xye1d285o
https://www.reuters.com/world/asia-pacific/bangladesh-garment-factories-reopen-after-
sheikh-hasinas-flight-2024-08-07/
https://www.dw.com/en/bangladesh-sheikh-hasina-gives-first-statement-since-ouster/a-
69931931
https://www.france24.com/en/asia-pacific/20240804-more-than-50-dead-bangladesh-
protest-calling-prime-minister-resignation-sheikh-hasina
https://bgmea.com.bd/page/BGMEA_delegation_meets_Chief_Adviser
https://bgmea.com.bd/page/Army_task_force,_factory_representatives_meet_to_discuss_l
aw_and_order_situation_in_Gazipur


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