RMG\\\'s $50 billion \\\'Golden Jubilee\\\' export target

Targets, financial or otherwise, that are set by the government, do usually evoke scepticism. Failure to meet targets more often than not is to blame for this. The private sector players are not used to fixing sectoral or industry-wise targets since their performance remains confined to micro-level. However, a section of them -- the apparel exporters -- has ventured to take a bold move, perhaps as a departure from the old tradition, and set a sectoral target of earning $50 billion in gross export receipts by 2021-- the year that marks the Golden Jubilee of the country's independence. And they made their goal public at the first-ever Apparel Summit organised by the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) on December 7-8 last.  
The target, in comparison with the current level of export earning from apparels -- $25 billion -- might appear too big, on the face of it.  Yet none has come out in the open expressing his or her doubt. Relevant circles have a gut feeling that the apparel sector has acquired the strength needed to reach any height, provided the environment, both domestic and external, remains conducive to their business growth. The target does otherwise look "achievable", in terms of the share of Bangladesh's exports in the global apparel market from the current level of less than 5.0 per cent to about 8.0 per cent, as projected, by 2021. By that time, the size of the global apparel market, as estimated, will reach about $650 billion, from the current level of less than $500bn. Being now the second largest exporter to the global market after China that has a much larger share at over 37 per cent of global clothing exports, it is not an unachieveable target for the year 2021, for the Bangladesh apparel exporters, if they are in a position to consolidate further their existing strengths and also if the sector-wise current weaknesses through government's effective public policy actions are overcome. The country's apparel sector that had entered the global market with a paltry export order worth $2.4 million back in 1978 has achieved a near miracle. It has successfully overcome many odds, including phase-out of the multifibre agreement (MFA) on textiles, child labour issue and major industrial accidents.
Many had predicted doomsday for Bangladesh apparels after the MFA phase-out and the recent major industrial accidents, including the Tazreen Fashion fire and the collapse of the Rana Plaza. But in both the cases the predictions were proved wrong. In fact, the MFA phase-out had offered the industry to build a strong base and emerge as one of the major players in the international apparel market. The accidents, no doubt, had jolted severely both producers and international buyers. However, the latter, instead of turning their back to the Bangladesh RMG, extended their cooperation to help improve the workers' safety in factories here.
Stakeholders and economists, while appreciating the strengths and successes of the country's apparel sector, have, time and again, underlined the need for ensuring timely policy intervention, political stability, removing infrastructural constraints and fostering better employer-worker relationship to help the sector flourish further. The application of right kind of policies for the domestic producers, adoption of marketing strategies suiting to the needs of the buyers and making unrelenting efforts for upscaling into the higher value-added segment of the market are some of the key factors that the policymakers and businesses do need to keep in mind for ensuring sustained growth of the country's apparel sector.