Uncertainty over \\\'garment village\\\'

The response from the manufacturers of apparels to the move for relocation of units to the proposed 'garment village' at Bausia in Munshiganj should not come as a surprise to the policymakers who have completed a significant portion of groundwork for the project. No matter what was their initial positive reaction to the government move to build the village, it was more likely that the apparel unit owners would seek both time and government support for settling payments against acquisition of land for the proposed village and building necessary infrastructure there.  

The government reportedly asked the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) to deposit Tk 7.7 billion by February last as the price of the land area, measuring 500 acres, selected for building the village. But both the associations reportedly have sought time to settle the payment in question on the ground that the apparel units are going through an uncertain time because of their safety-related challenges. A good number of units might be required to spend a substantial amount on 'remediation' or 'retrofitting' to be suggested by the Accord team and the official review committee on the basis of their inspection of garment factories.

It does appear that a government move, largely supported by the apparel industry owners, to accommodate a large number of garment units in one place, having all the necessary safety measures and a proper work environment, is facing an uncertain situation like many other similar past initiatives to house pharmaceutical industries, tanneries and information technology (IT) firms. The government might have been slow in some matters, but the relevant industries, too, have been lukewarm towards the need for relocating their units since such relocation does involve both costs and hassles. Most owners are highly unwilling to face those. All these combined have resulted in the slow implementation of these positive initiatives.

The earlier response from the relevant owners to the official move to accommodate apparel units in the proposed garment village was tremendously positive despite the fact the proposed relocation would take a toll, financial or otherwise, on them. The number of plots sought by the apparel owners, reportedly, is twice the government has actually offered to them. It might not be possible for most apparel units to bear all the expenses involving land and other infrastructure. But the government, too, does not have enough resources to extend any major support to them in this connection.

Being aware of the limitation of both sides, the apparel industry owners are trying to arrange foreign funding for developing the garment village and a Chinese firm has reportedly shown interest in the project. But securing fund for such types of projects is not an easy job. The financier would seek sovereign guarantee and providing it could prove to be a tricky issue for the government. But there has to be a way out. Otherwise, a meaningful and positive move might end in futility. The relocation of production units particularly of a couple of industries--- tanneries and readymade garments--- in specific zones outside Dhaka has become a necessity, not just for their own safety and security but also for ridding the capital city of a host of problems, physical or otherwise.