Bangladesh, Compliance and ethical trading

Investment for a better Bangladesh RMG Industry

Everyone agrees, to sustainably improve the RMG industry increasing investment is necessary to deliver improvements in  productivity and safety.With plenty of multi stakeholder activty on compensation and safety, there is reason to suppose that the case for more investment will grow. http://www.dhakatribune.com/2014/feb/19/when-will-value-bangladeshi-life-go              According to the Economist, buyers have strong economic arguments for investing in such initiatives to improve the RMG sector in Bangladesh  http://www.economist.com/news/business/21588393-workers-continue-die-unsafe-factories-industry-keeps-booming-bursting-seams

There is certainly still good reason to suppose that cutting and running to competitor nations will not remove risks for brands and buyers of poor standards in supply chains. One worry for Bangladeshi businesses and workers however, is that restructuring may pull the ladder for improvement away from smaller factories – even though the nature of the industry and short lead times often builds in a lot of sub-contracting. Squaring this circle is a global problem for the garment sector and one which deserves to be followed with close interest. http://www.thedailystar.net/op-ed/urgency-for-rmg-sector-restructuring-12531

One intriguing post Rana development is growing interest from investment funds in the sector. How this pans out may make a huge postive difference over the next few years  http://www.theguardian.com/sustainable-business/supply-chain-tau-investment-management-regulations-cheap-labor-clothing

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