globalization and its effects on the bangladesh garment industry: who takes responsibility?

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A sociological perspective on the impacts of globalization in a fast paced developing country like Bangladesh. A lot of the interest resulted from the Rana Plaza Collapse (c. 2013). The paper focuses on the pros and cons, and the concept of responsibility for a disaster that caused the death of 1200++ lives.

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Page 1: Globalization and its effects on the Bangladesh Garment Industry: Who takes responsibility?

Naina F. Hussain

Dr. Deric Shannon

Sociology 101

8th December 2014

Globalization and Its Effects on the Bangladesh Garment Industry: Who takes

Responsibility?

The eight-story garment factory building collapse that occurred in Bangladesh in

April 2013 gave the world an insight into the harsh realities of one of the many

sweatshops that exist in today’s world. Rana Plaza was a garment factory building

located in Savar, Bangladesh right on the outskirts of Dhaka, the capital of the country. It

accommodated roughly 3600 workers, of whom 1129 people died while the rest were

injured (Report). Rana Plaza was an example of one of the many sweatshops operating in

Bangladesh at the moment. A sweatshop, known as a workplace that has poor working

conditions, long working hours and poses possible health risks to the workers, exists in

many different countries including the U.S. After the tragic incident occurred, there were

different debates regarding who was to blame for this tragedy; the garment factory

officials (both the garment association and the owner of the factory), the multinational

retailers who are the customers of the products made at the garment factories, or the

garment factory workers themselves.

The tragedy that led to the death of 1129 garment factory workers is a

representation of how globalization1 can lead to the misuse of resources of an economy,

usually the misuse of resources of developing nations by more developed nations. Free

1 Globalization can be defined as the cultural and economic changes that have occurred as a result of dramatically increased international trade and exchange (Ferris).

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Page 2: Globalization and its effects on the Bangladesh Garment Industry: Who takes responsibility?

trade that is endorsed by globalization can be defined as the import and export of goods

and services without any restrictions, and minimal government interference

(Encyclopaedia Britannica). Free trade has certain benefits, as well as drawbacks; while it

leads to specialization which incurs more efficient use of resources, lower wages, and

higher levels of employment across participating economies, it leads to intense

competition which in turn results in the exploitation of the working conditions of labor,

below average wages, as well as negligence of the basic human rights of workers.

The existing sweatshops in Bangladesh, most of them that operate under the

textile industry, contribute to a majority of the country’s annual income and development

rate. Globalization has played a key role in the development of the economy of

Bangladesh since the advancement of the garment industry of the country. According to a

study in John J. Macionis’ book “Sociology”, Bangladesh’s garment industry contributes

to 75% of its annual exports (Macionis). Well renowned multinational companies such as

Walmart, H&M, Ralph Lauren, Tommy Hilfiger, Armani, and Zara choose Bangladesh

as their main production unit due to its provision of cheap labor as compared to other

nations (Passariello, Lahiri and Sean).

While walking across a renowned multinational clothing store during Black

Friday this year, I could not stop thinking about the number of clothes that had a “Made

in Bangladesh” tag on them that cost at least $25. It frustrated me to think that something

that, according to a Wall Street Journal report, cost retailers about $1.5, were being sold

at such high prices (Passariello, Lahiri and Sean). Since most businesses are profit

oriented, my frustration was not because of the price the clothes were sold at, but rather

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Page 3: Globalization and its effects on the Bangladesh Garment Industry: Who takes responsibility?

because of the fact that they are taking advantage of garment workers who work about

eight hours every day and get paid $800 per year (McManus).

According to Emile Durkheim’s functionalist theory, “all aspects of society are

interdependent and contribute to the functioning and stability of the society” (Houghton

Mifflin Harcourt). From a functionalist’s perspective in this case, utilizing the low cost

labor and resources in the developing nations like Bangladesh, the economic inequalities

between more developed countries and developing countries promote social order (Ferris,

The Real World: An Introduction to Sociology). In general, from functionalist’s

perspective both economies participating in the free trade are being benefitted; wealthier

nations benefit from low costs, while developing nations benefit from higher employment

and greater economic development. However, some nations benefit more than others. The

wealthier nations are profiting more in this process since their benefits are resulting in the

subsequent exploitation of those working in sweatshops. There must be a fine line that

exists in determining how low customers like the multinational companies should pay for

their products and how much advantage can be taken of the lack of power some exporting

countries have, including Bangladesh. Due to competition within the market, the clothing

companies bargain to lower and lower prices until they are minimized. According to

Bakhtiar Uddin Ahmed, the general manager at Fakir Apparels (a garment factory in

Bangladesh), the company’s profit margin does not exceed 2.5%. Even though the orders

are increasing everyday, “customers are always pushing down costs” (Passariello, Lahiri

and Sean). What they fail to take into consideration is how low wages fall to when their

cost is lowered so extensively. At the moment, the minimum wage for garment factory

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Page 4: Globalization and its effects on the Bangladesh Garment Industry: Who takes responsibility?

workers is $68 per month, and some factories pay even less in order to produce more

clothes and receive more revenue from customers.

Given that Bangladesh is a developing nation, and much of its economy’s wealth

comes from exports of the textile industry, it would be extremely harmful for the

economy if buyers back out and stop importing goods from Bangladesh since there are

other countries that are willing to provide the same amount of goods for the same price.

According to a documentary by The Guardian, if a supplier fails to meet the deadline for

shipment of the clothes, the buyer has the power to deduct 5% of the payment for each

week of the delay (Poulton, Panetta and Burke). This is what was the main concern of the

owner of the garment factory as for which they did not want to stop production on that

day even with the knowledge that the building had large cracks on the walls that appeared

the day before. Even though the customers are responsible for making sure that their

suppliers maintain a certain level of health and safety regulations in the factories, none of

these customers were aware of the violations. Due to the fact that they continued to place

orders while not making note of the conditions the garment factory workers were

working in, the clients of the products made at the factory also shared a fair amount of

responsibility for the incident that could have been avoided otherwise. Therefore,

stratification works in two different levels in this scenario where there is global

stratification2 between the suppliers and the buyers, and where there is class stratification

between the employers and the employees. According to Karl Marx’s conflict theory, the

stratified labor market creates intergroup conflict and lack of power over decision-

making where the wealthier capitalists exploit the less powerful forces (whether that be

2 Stratification can be defined as the division of a group within society based on social, global and economic hierarchy (Ferris, The Real World: An Introduction to Sociology).

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Page 5: Globalization and its effects on the Bangladesh Garment Industry: Who takes responsibility?

the suppliers in an economic context, or the employees in the social context) (Ferris, The

Real World: An Introduction to Sociology).

When thinking about the sociological imagination, it is important to make sure

that all aspects of society are being taken into consideration while coming to a decision.

As a result, this study of Bangladeshi sweatshops and responsible authorities for tragedies

similar to the factory-building collapse would remain incomplete if the perspective of the

lawmakers in the country and the garment factory officials were not taken into account.

The owner of the building was well aware of the cracks, which appeared on the walls

prior to the incident and still kept the production of clothes undergoing. Many workers

refused to come to work that day, and their lives were saved because of that one decision.

However, many still chose to go to work since the factory owner threatened to lay them

off if they decided not to come to work. The factory owner was taking advantage of the

lack of power the workers had to achieve his goal. According to Karl Marx’s conflict

theory, social inequality creates intergroup conflict between the poor and rich since their

interests differ from each other and as a result, the poor “find themselves at odds as they

attempt to secure and protect these interests” (Ferris, The Real World: An Introduction to

Sociology). In this capitalistic system, the workers have to sell their labor at the cost of

their health and safety, fear of layoffs, and other forms of class stratification in hope for

earning below minimum wages that will help them support their family and earn them a

day’s income. The lack of autonomy in the workers’ lives during the Rana Plaza collapse

could then be blamed on the authorities of the garments factory, as they did not take

necessary measures to prevent and maintain the lives of the workers whom they were

responsible for.

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Page 6: Globalization and its effects on the Bangladesh Garment Industry: Who takes responsibility?

Garment factory workers also share a sense of responsibility in the occurrences of

tragedies like the Rana Plaza building collapse. Bangladesh garment workers have been

victims of extreme exploitation in workplaces ever since the emergence of the garment

industry in the country. Even after the several cases of factory fires and factory-building

collapses, the workers have failed to form strong labor unions to protect their rights and

bring upon change within the system. According to Max Weber’s modernization theory,

economic change is instilled through increased technological development where

traditional societies become more complex and more differentiated in that manner

(Margaret Anderson). Therefore, hard work, efficiency, and enterprises lead to economic

advancement. Moreover, the poor remain in poor conditions due to lack of proper

working habits, time management, gratification, and are not willing to take advantages of

opportunities such as education. As a result, the lack of workers’ interests to take

advantages of their large communities to form labor unions would be an irresponsible act

on the workers’ behalf, as they have not been taking sufficient responsibility for their

personal health and safety regulations.

From another point of view, it could be said that the reason why the workers at

the garments factory were not able to take advantages of the opportunities around them

was because of their life chances. Most of the garment factory workers in Bangladesh are

women, while most of the men that work at the garment factories do not have proper

education. Since these workers come from families with poor income and low education,

garment factories provide these workers with the jobs that they would have otherwise not

been able to get. If for instance they are dismissed from the garment factory, they would

not be able to get a better paid job elsewhere (Poulton, Panetta and Burke). The lack of

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Page 7: Globalization and its effects on the Bangladesh Garment Industry: Who takes responsibility?

life chances such as education (due to religious beliefs for most women and high

expenses for the rest), the status of women in society, and familial pressures (which

includes living expenses) affect the decisions made by garment factory workers in

Bangladesh. Mahmuda, a garment factory worker at Rana Plaza and a survivor of the

collapse, justified that the reason why she and her husband went to work that day was to

earn a day’s income. It was already near the end of the month, and it was crucial for them

to earn money for the upcoming month’s expenses or otherwise their wages would be

docked (Poulton, Panetta and Burke). As a result, what can be seen is that even though

the workers were hesitant to go work inside the factory on the day of the collapse, they

still decided to do so.

Moreover, the definition of “cheap labor” becomes culturally relevant as well.

According to Erving Goffman, the key to understanding ‘the self’ is how we present

different selves in different situations. (Ferris, The Real World: An Introduction to

Sociology) Therefore, Bangladesh’s “cheap labor” is a social construction that has been

created through interaction with other nations that also participate in agreeing to the

meaning of the self. The key institutions that play a role in the representation of this

image are the Bangladesh Garment Manufacturers & Exporters Association (BGMEA),

the government who determines the minimum wage levels and is also responsible for its

citizens, and the level of demand for employment the economy has. Looking at the

factory building collapse in Bangladesh from this perspective can indicate how the

government has a role in determining the price of labor attached to the pricing of the

export goods. The social construction, economic position, and the willingness to pay by

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Page 8: Globalization and its effects on the Bangladesh Garment Industry: Who takes responsibility?

the labor, and life chances of the workers at the garment factories of Bangladesh have

affected the amount of wages the labor receives.

According to a study by the International Centre for Trade and Sustainable

Development, China has been using subsidies for its textile industry, which rendered its

products inexpensive as compared to other exporting nations (International Centre for

Trade and Sustainable Development). From a sociological perspective, countries such as

China who use their social hierarchal powers to their own benefits without thinking about

the effect it has on other nations contributes to the decisions made by multinational

companies who choose to import the goods from developing countries. Therefore, due to

increased competition brought into the market through China’s unethical schemes, poorer

nations have to suffer by offering low wages and poorer working conditions.

In conclusion, from the Rana Plaza factory building collapse, the negative aspects

of globalization, free trade and capitalism came to focus. In this capitalistic system, the

structural forces with greater economic power are able to exploit the powerless such as

the developing nations, and their workers. According to Marx, workers in a capitalist

society are alienated from the process of work, their own productive work. Thus, in a

capitalistic system, the aim of the work ultimately becomes to find a means to satisfy

needs rather than to satisfy needs—by earning enough money to provide support to one’s

own family (Marx). By examining the structural forces that were directly and indirectly

involved in this tragedy, it becomes more and more unclear to find one single responsible

force. The formation of a capitalist system is such that profits are aimed at being

maximized by lowering production costs through minimal government intervention.

Thus, the root of the problem goes to the buyers of the products who determine how

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Page 9: Globalization and its effects on the Bangladesh Garment Industry: Who takes responsibility?

much they will pay the producers for their products. The producers also have the power

to determine how much they are willing to cut productions costs to. Lastly, the workers

have the power to render their skills more expensive through opportunities they can

possess such as education. As a result, in my opinion, all of the structures involved in the

Rana Plaza collapse were responsible in some form or another for a tragedy that could

have otherwise been avoided. However, in my opinion I deem the multinational clothing

companies such as Walmart, JCPenney and Primark most responsible because they are

the root of the process. They are the ones who outsource their production to developing

nations like Bangladesh. As a result of their economic hierarchy they play a major role in

determining the price of the products—they are always pushing down costs in order to

make higher profits in the market. Since economies and countries participating in free

trade have become excessively profit oriented, it is extremely important that in a world of

globalization, individual forces start taking their own responsibilities and solving them in

order to make sure that incidents such as the garment factory building collapse do not

happen again. Several different organizations such as the International Labor

Organization (ILO) and the Bangladesh Garment Manufacturers & Exporters Association

(BGMEA) have stepped in to make sure that factories provide safer working conditions

for garment factory employees. Thus, more frequent interaction between the different

social, economic and global structures will help bring social cohesion within society and

thus, excessive conflict can be further avoided.

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Page 10: Globalization and its effects on the Bangladesh Garment Industry: Who takes responsibility?

Works CitedEncyclopaedia Britannica, Inc. Free trade. 2014. Britannica. 5 December 2014

<http://www.britannica.com/EBchecked/topic/218403/free-trade>.Ferris, Kerry. The Real World: An Introduction to Sociology. Vol. 4. New York; London:

W. W. Norton & Company Ltd. , 2014. 4 vols.Houghton Mifflin Harcourt. What is the functionalist perspective in Sociology? 2014. 5

December 2014 <http://www.cliffsnotes.com/cliffsnotes/sciences/what-is-the-functionalist-perspective-in-sociology>.

International Centre for Trade and Sustainable Development. Bridges: Mexico Challenges China over Subsidized Clothing, Textiles. Bridges. Vol. 16. International, n.d. 35 vols.

Macionis, John J. Macionis, John J. Sociology. Vol. Illustrated. Granite Hill Publishers, 2007. 708.

Margaret Anderson, Howard Taylor. Sociology: Understanding a Diverse Soceity, Updated. Vol. 4. Cengage Learning , 2007.

Marx, Karl. Selected Writings. Ed. David McLellan. Oxford: Oxford University Press, 2001.

McManus, Doyle. Bangladesh's sweatshops: A boycott is not the answer. 22 April 2014. LA Times. 5 December 2014 <http://www.latimes.com/opinion/op-ed/la-oe-mcmanus-column-bangladesh-garment-fire-20140423-column.html>.

Passariello, CHRISTINA, Tripti Lahiri and McLain Sean. What do Armani, Ralph Lauren, and Hugo Boss have in Common? Bangladesh. 1 July 2013. 5 December 2014 <http://online.wsj.com/articles/SB10001424127887323998604578567522527553976>.

Poulton, Lindsay, et al. The shirt on your back: the human cost of the Bangladeshi garment industry. 16 April 2014. 5 December 2014 <http://www.theguardian.com/world/ng-interactive/2014/apr/bangladesh-shirt-on-your-backhttp://www.theguardian.com/world/ng-interactive/2014/apr/bangladesh-shirt-on-your-back>.Report, Tribune Online. Savar death toll reaches 1129. 25 May 2013. 5 December 2014

<http://www.dhakatribune.com/bangladesh/2013/may/25/savar-death-toll-reaches-1129>.

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