Globalization in Bangladesh - The History

Globalization invited itself into Bangladesh roughly 2 decades ago, in the 1990's. With it, globalization brought much opportunity for the economy of Bangladesh. Yet the results of globalization are less promising. After the emergence of globalization in Bangladesh, the country has experienced:

1. Radical social transformations
2. Economic transformations
3. Tension between tradition and technology
4. Dependence on other countries

Bangladesh Before Globalization
Between 1948 and 1971 Bangladesh was one in eight of the poorest countries in the world. To make matters worse, in November of 1970 a powerful hurricane hit Bangladesh killing over 500,000 people and leaving the country severely damaged.

In 1971, Bangladesh achieved independence from West Pakistan. After gaining its independence, the economy of Bangladesh grew for the first time in decades under its newly adopted socialist policy.

Between 1975 and 1990, the economy of Bangladesh was again diminishing. Countries such as the U.S. and Japan made great financial contributions to Bangladesh at this time. However, shortly after these contributions were made, another storm destroyed three-fourths of Bangladesh's countryside killing and injuring over 30 million people.

The Emergence of Globalization in Bangladesh
Between 1990 and 2000, Bangladesh experienced rapid growth in its economy. This growth was the result of an emergence of manufacturing industries in Bangladesh. The purpose of which was to export apparel overseas; thus beginning globalization in Bangladesh. The new industry increased daily earnings by up to 28 cents, which would appear to be a good thing; however, it increased the gap in income even farther between those citizens who chose to pursue a traditional career path in agriculture and fishing/shrimping and those who set out on a new path in manufacturing industries.

After the Emergence Of Globalization in Bangladesh
After globalization emerged in Bangladesh, the country was faced with several changes in a very brief period of time; radical social transformations, economic transformations, tension between tradition and technology, and Bangladesh's dependence on other countries to name a few.

1. Radical Social Transformations: Women working - Globalization provided new opportunities for Bangladesh and its citizens, especially women. The leading industry in Bangladesh quickly became apparel manufacturing and exporting. In this industry, women became the dominant work force employed. Yet, is this a good thing for these women? Some would say that allowing women a position in the working world is a positive progression. This could be true, especially in countries like the U.S. and Europe, however in Bangladesh it is not the case. Agreeing that working women in Bangladesh is a good step, would be a failure to recognize that women are being placed into this new labor category because they can be more easily controlled and manipulated. Women are also considered to be inferior and therefore should not deserve or receive the same pay or treatment as a man, so the apparel manufacturing industries make more profit by hiring female labor for the same job.
   
2. Economic Transformations: Third world country to a developing country - Bangladesh went from being one of the eight poorest countries in the world to a developing country with global trade in a relatively short period of time. As one can imagine, this brings with it significant economic changes. Bangladesh has encountered trade reforms, market-based competition, anti-monopoly policies, liberalization of foreign trade, and changes in the banking sector. The government has also attempted to control the country's annual inflation rates. Overall the result has been a significant decrease in poverty in Bangladesh over the past decade, yet there is a strong gap in individual financial status, leaving less than half of the population in Bangladesh in an impoverished state. Yet, according to the World Bank, which is predominantly run by wealthier countries and countries with more economic power, there is not much hope for the economy of Bangladesh to keep expanding as it has. Why? The country depends so much on exporting their apparel that it is at high risk of falling prey to more powerful countries who eventually gain the capability of dictating prices to developing countries like Bangladesh. If these countries, like Bangladesh, fail to meet the price demands requested of them, then the more powerful countries, such as the U.S., will discontinue purchasing their exports and Bangladesh's leading industry would be out of business. Although, this exploitation seems morally wrong, countries like the U.S., are the strongest supports of outsourcing, off-shoring, and purchasing merchandise from countries with cheaper labor.
   
3. Tensions Between Tradition and Technology: Old vs. New - With the rapid growth in the apparel manufacturing and exporting industry in Bangladesh many Bengali citizens are forced to make the decision to carry on with their traditional ways of life in rural farming with less pay or to sacrifice their traditions and hop on the apparel ban wagon to make more money and risk the potential of the uncertainties associated with the survival of the industry. The country is also forced to improve their technology to compete on a global scale; resulting in additional expenses. For example: Bangladesh is currently experiencing power outages that shut down apparel manufacturing plants for an hour or more at a time, hindering production. The country is now forced to look into implementing a new power policy. This new policy will require spending money on new and imported technology that is ONLY needed to compete in world trade.
4. Dependence on other Countries: Before globalization, Bangladesh was already dependent on other countries for financial support, however with the emergence of globalization in Bangladesh, the country became even more dependent on other countries to survive. According to an economics professor who also served as the former Minister of Finance and Planning for the Bangladesh government, Bangladesh must now rely on their cheap labor in producing apparel to attract other countries to buy from them, even if it means exploiting their women. In addition, Bangladesh must also rely on other countries for imported foods, due to the shift in labor resources from agriculture to apparel manufacturing. Is this fair? No, yet this should come as no surprise. More powerful countries have created economies to function in this way, giving themselves more power and control in the global economy.