The New Nation - Internet Edition

BANGLADESH Garment Manufacturers and Exporters Association (BGMEA) is reported to have proposed to the government not to allow setting up of new factories in the sector during next three years. One of the thoughts that prompted them to put such a proposal is that due to lack of skilled workers and mid-management personnel 25 percent of the factory capacity remains unutilised. At least three years will be required to fully utilise the capacity. They hoped that this would help increase export price and bring stability and enable the sector to earn as much as US$18 billion. However, some former leaders of BGMEA and experts termed this proposal illegal and strongly opposed it as an attempt at forming a cartel. This would have negative impact on investment which brings new ideas and efficiency.

The proposal does not seem to be set on solid grounds. The critics of the proposal have the right to say that neither the government nor any business organisation has the right to restrict investment. Such a moratorium would simply be disastrous for the country. This proposal, if implemented, would further aggravate the unemployment situation. This is also likely to go against the achievement of the millennium development goals of eradicating poverty and hunger. Contractionary measures would reduce foreign exchange earnings. Moreover, this proposal goes against the spirit of free trade being practiced by garment owners themselves. They cannot close the doors of the sector to new investors. The entrepreneurs of the readymade garment sector have rendered good services to the national economy. Closure of the door of the sector would affect themselves adversely.