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    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
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/9342
    Metadata
    Show full item record
    Thumbnail
    adb-brief-102-bangladesh-leather-industry.pdf (844.0Kb)
    Author
    Hong, Soon Chan
    Theme
    Development
    Industry
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise