External Barriers – Part – 03

Costly Accessories –

Profit margins on the export of RMG items will erode further as the prices of garment accessories have increased both in local and international markets. Prices of accessories on the world market increased more than 50% over the last one year. Prices increased 30% on the local market in the same period. In fiscal 2007-08 Bangladesh earned $10.69 billion from RMG exports. Bangladesh spent almost a third of export value for importing accessories, raw materials, capital machinery, dyes, chemicals, fabrics, yarn and cotton.    

Globalisation –

The opponents of globalisation claim that globalisation is the name given to the process of ‘recolonisation’ of the Third World by the developed countries and in this mission, the IMF, the World Bank, the WTO, the UNO, the regional banks like ADB, AFDB and the IADB have all been playing the roles of powerful tools of the world’s lone superpower, the USA, and other major developed countries belonging to G-8. The WTO has four main functions: a) rule making; b) policy orientation and monitoring; c) negotiations; and d) dispute settlement between or among member countries and thus the WTO Legal System has been impacting the Bangladesh economy.