Developing the Leather Industry in Bangladesh
Hong, Soon Chan | November 2018
Abstract
The economy of Bangladesh grew at an average rate of 6.5% annually in the fiscal years (FY) from 2009 to 2018.1 In FY2016, the growth rate crossed the 7.0% mark, and the following 2 years saw even higher growth rates of 7.3% and 7.9%. Historically, exports and remittances have been the two key growth drivers for Bangladesh. However, one industry dominates exports, i.e., ready-made garments (RMG), accounting for over 80% of the annual export receipts. RMG also accounts for over 45% of gross value added in manufacturing. The overwhelming dependence on RMG as a source of export earnings leaves Bangladesh vulnerable to external shocks.2 The growth in RMG exports has been slowing over time, and since FY2013, the shares in the gross domestic product of both exports and remittances have been steadily declining (Figure 1).
To shift the country’s economy to a higher growth trajectory and sustain high economic growth, the manufacturing and export bases need to be diversified. Leather is one of the industries with considerable potential for development, using Bangladesh’s large supply of lowcost labor and raw material. The industry has the potential to participate in global value chains, enter a new market, and serve the growing domestic demand.
The leather industry has many similarities with RMG in strengths and weaknesses. With its abundance of labor and natural resources and successful development experiences in the RMG industry, Bangladesh is ideally suited for the production of leather such as high-value leather goods and footwear.
Citation
Hong, Soon Chan. 2018. Developing the Leather Industry in Bangladesh. © Asian Development Bank. http://hdl.handle.net/11540/9342. License: CC BY 3.0 IGO.PDF ISBN
978-92-9261-409-6
Print ISBN
978-92-9261-408-9
ISSN
2071-7202 (print)
2218-2675 (electronic)
Keywords
Aid And Development
Asian Development Bank
Comprehensive Development Framework
Development Cooperation
Development Management
Development Planning
Development Strategies
Development In East Asia
Development Planning
Development Research
Green revolution
Commerce and Industry
Intra-Industry Trade
Large Scale Industry
Labor
Textile Industry
Rayon Industry
Cotton Industry
Clothing Industry
Rural planning
Aid coordination
Industrial projects
Infrastructure projects
Natural resources policy
Educational development
Development strategy
Development models
Economic development
Industrialization
Industrial Economics
Industrial Development
Industrial Policy
Weaving
Textiles
Textile Workers
Wool Industry
Silk Industry
Small Scale Industry
Medium Scale Industry
Local Industry
Export Oriented Industries
Shoe Industry
Clothing
Hosiery Industry
Fur Industry
Leather Industry
Income Distribution
Demographic Indicators
Communication in rural development
Communication in community development
Economic development projects
Development banks
Economic forecasting
Environmental auditing
Cumulative effects assessment
Human rights and globalization
Market share
Labor
Work clothes industry
Women's clothing industry
Children's clothing industry
Uniforms industry
Underwear industry
T-shirt industry
Sweater industry
Suspender industry
Sport clothes industry
Sleepwear industry
Shirt industry
Shawl industry
Men's clothing industry
Leather garments industry
Textile industry and fabrics
Fabrics
Cloth
Wool-growing industry
Garment industry
Apparel industry
Leather industry
Belt industry
Glove industry
Footwear industry
Social change
Social accounting
Inequality of income
Economic growth
Quality of Life
Green Revolution
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