Garments Exports in Bangladesh: The Unexpected Success Story

The dramatic increase in exports of readymade garments (RMG) from Bangladesh is an impressive example of a labour-surplus country being able to put some of its labour reserves to use in a strategy of exportoriented labour-intensive industrialisation. On the surface it appears to be a straightforward illustration of the benefits of liberalising markets and orienting the economy towards manufactured goods exports. However, a closer analysis reveals that the reality is more complex, and that the success of Bangladesh garments exports relied greatly on certain special advantages specifically preferential market access= to developed countries. These could be exploited effectively because of the government’s industrial policies that encouraged and directed investments in this activity.