TEXTILES
design and production development in Bangladesh
Report from a visit to Dhaka, June 2003
1. Background
National Crafts Council of Bangladesh
National Crafts Council of Bangladesh (NCCB) contacted early in 2003 The Norwegian Embassy in Dhaka with plans for
the publication of a book on the major textiles traditions of Bangladesh, tracing their evolution from the trade for royal courts and luxury European demand to fine products for the contemporary marketplace
the presentation of an exhibition where it will be demonstrated how traditional artisans can interact with designers and craft developers to innovate and diversify their products
the organisation of workshops to explore the importance of developing institutional support for handloom textiles so as to ensure a high-value market and to develop future strategies for the promotion of the handloom sector
“Design without Borders” (DwB) was asked to see how our development program would be able to contribute in such a context.
The Development of the Jute Industry in Bangladesh
Norad has been responsible for the project “The Development of the Jute Industry in Bangladesh”, most often called the Norad jute project. The original project period was 1999-2002, but the project was prolonged into 2003. Participants have been two large jute mills and four smaller craft producers: two craft businesses and two NGOes. The project has succeeded in making a thinner jute thread and a new, soft jute fabric that can be used for clothing as well as home furnishings. Norad has expressed an interest in suggestions from DwB as to the further development of the project’s results.
Design and product development in Bangladesh
”Design without Borders” needed more information about the above-mentioned projects, as well as about Bangladesh in general; in order to make feasible suggestions and to see which role DwB might play in the development of design in textile production in Bangladesh. Our focus was on
(1) design and product development (textile crafts and jute fibre)
(2) design education
Both BNCC and the jute project focus on production for export. ”Design without Borders” has not earlier been involved in export-oriented projects and accordingly do not have marketing and export expertise.
This report is written by Trine Thommessen, crafts.no, who spent the time from 24th of May to June 8th 2003 in Dhaka, Bangladesh.
2. Introduction
Coming to Dhaka, the capital of Bangladesh, in the end of May, it is not only hot, it is more than anything, deeply fascinating. The humid air, the flowering trees, the overwhelming traffic, the buildings, - tall office buildings as well as tin-plated dwellings, and everywhere there are people, mostly dressed in traditional lungis, saris and shalwar-kameezes, all adding to the fascination.
My fascination grew deeper as I started on my talks with the elected leaders of the National Crafts Council of Bangladesh, the participants in Norad’s jute project, representatives from a couple of design institutions and other crafts or design organizations. All I have met have been most helpful and have also led me on to new contacts. I am very grateful for all the information I have been given. Should there be incorrect information in this report, this reflects on me and not on my sources.
This report has textiles as its theme. Obviously, it offers no comprehensive description of the overall situation for Bangladeshi textiles and textile production. That would not be possible after a two-week visit. There are certainly limitations to my knowledge. One important limitation is imposed by the programme profile of Design without Borders itself. Another limitation is the number of people I managed to talk to and the interests they were representing, and even if I managed to get hold of some interesting literature in Dhaka, I do not contend that this literature is covering the entire field.
After defining some of the terms used in the report, chapter 4 gives a short introduction to Bangladesh in order to give the Norwegian reader a little background information. Chapter 5 gives an overview of the textile and clothing industry, its importance to the Bangladeshi economy and the challenges it will meet after 2004. This chapter also covers the locally grown fibre, jute. Chapter 6 on the crafts businesses and NGOes gives an introduction to Bangladeshi textile crafts as well as a description of the handloom industry. In Chapter 7 on product design I try to describe some of the particular challenges of working with textile design in Bangladeshi, and also present a number of design models. Lastly, this chapter discusses the different markets available to Bangladeshi textiles. Design education is covered in chapter 8 while chapter 9 concentrates on suggestions for future involvement in the area of textile design and product development by Norwegian donors in Bangladesh. Chapter 10 presents the summary of the report.
Naturally, one cannot write a report on design development without running into dilemmas. The basic one is formulated by Jackie Corlett, woven textile designer, in her MA Thesis:
“Developing design skills would be wasted if used only to design new products for the richer nations…There are however a host of problems local to these designers that are in desperate need of design attention: waste disposal; educational equipment and toys; shelter; construction work; hospital equipment; work environments; etc.”
Hopefully we can contribute in a way that eventually will make Bangladeshi designers able to cope with this “host of problems”.
3. Definitions
Design
The word design has many meanings, one is “giving form”, another emphasizes “construction” and yet another, “product development”. In Bangladesh I often had the feeling that we used the word in different ways. My way of speaking about design is process and production oriented, while – I think – that some of my contacts used the word in the simpler sense of giving an object form.
Product development
As the word “design” is often used in the limited sense of “giving form”, I have chosen to also use the term “product development” in order to cover a wider scope of the design process. Norad, the Norwegian Development Agency, also uses both “design” and “product development” in their policy documents, so the use of the words in this report should then be consistent with this practice.
Clothing industry or garment industry?
Professor Sadequel Islam, Professor of Economics in Ontario, Canada, uses the term “the clothing industry” in his book about “The Textile and Clothing Industry of Bangladesh in a Changing World Economy” while for instance the BGMEA, Bangladesh Garment Manufacturers Export Association, talks of “the garment industry”. I have used “clothing” and “garment” as synonyms.
SME or Craft producer
The SME Department in the World Bank Group is currently working with the following definitions:
Micro enterprise - Up to 10 employees, total assets of up to $100,000 and total annual sales of up to $100,000
Small enterprise - Up to 50 employees, total assets of up to $3 million and total sales of up to $3 million
Medium enterprise - Up to 300 employees, total assets of up to $15 million, and total annual sales of up to $15 million[1]
The Bangladeshi Small and Cottage Industry Corporation, the BSCIC, talks about the small and cottage industries sector. Small industries are defined as those engaged in manufacturing or processing or service activities whose total fixed investment is limited to Taka 30 million (US$ 0.75 million), while cottage industries are those engaged in manufacturing or servicing and generally run by family members with a total investment limited to Taka 0.5 million (US$ 12,500) only.
I have, however, avoided the term SME, and even small and cottage, as I find the terms bewildering. Instead I am talking about crafts producers, including both crafts businesses and NGOes in the term.
4. About Bangladesh
Bangladesh is a poor, agricultural society with 130 million inhabitants on 144 000 sq. km. With app. 900 people per sq. km, the country is the most densely populated country in the world. The majority of the people are Bengali (98%), some 250 000 are Bihari and around one million are different tribal people. 88 % of the population are Muslim, 11 % Hindu, and 1 % have other religions. The People’s Republic of Bangladesh is headed by President Professor Dr. Iajuddin Ahmed. The present government is run by the BNP whose Prime Minister is Begum Khaleda Zia. The Awami League is the largest opposition party. The average age of living is 58 years for men and 59 years for women. 49 % of the adult men are illiterate as compared to 71 % of the adult women.[2] Bangla is the local language. Educated people also speak English, but taxi drivers i.e. often do not. The unit of currency is the Taka.
The country is mostly flat farmland divided by numerous rivers, the main ones being the delta of Ganges and Bramaputra, called the Padma and the Jamuna in Bangla. For Bangladesh, annual flooding is a way of life. Much of the flooding is regarded by farmers as beneficial, replenishing the worn soils with nutrients. The principal crops are rice, jute, tobacco, tea, sugarcane and vegetables. About 10% of the country is still forested. There are two hilly areas, one in the northeast and one in the southeast. Most of the tribal people live in these areas.
Preserving the environment is not as much a priority as human survival in Bangladesh. About half the population is living below the poverty line and most of them are extremely poor. In spite of the relatively high economical growth in the 90ies the reduction in poverty has only been 1 % per year. The gap between the poor and the wealthy sections of the population is increasing. The most important industries are jute manufactures, ready-made garments, cotton textiles, seafood processing, and pharmaceuticals.[3] The most important trade partners are EU, USA, Hong Kong, Japan, India, China and Singapore. The seaports of Chittagong and Mongla are instrumental for exports as are the airports in Dhaka, Chittagong and Sylhet.
Norway has been providing development assistance for Bangladesh since the country seceded from Pakistan in 1971. Since 1975, Bangladesh has been one of the main recipients of Norwegian development assistance and is now one of seven main partner countries. Norway focuses its efforts on education, economic development, improved governance and human rights. Despite sustained domestic and international efforts to improve economic and demographic prospects, Bangladesh remains a poor, overpopulated, and ill-governed nation. It is one of the so-called “least developed” countries. Major impediments to growth include frequent cyclone and floods, inefficient state-owned enterprises, inadequate port facilities, a rapidly growing labour force that cannot be absorbed by agriculture, delays in exploiting energy resources (natural gas), insufficient power supplies, and slow implementation of economic reforms. Economic reform is stalled in many instances by political infighting and corruption at all levels of government.[4]
5. THE TEXTILE AND CLOTHING INDUSTRY
International trade involving textiles and clothing represent a classic example of “managed trade”. During the 1974-94 period, international trade in textiles and clothing were negotiated bilaterally and governed by the rules of the Multifibre Agreement (MFA). On January 1, 1995, the Agreement on Textiles and Clothing (ATC) replaced the MFA and became part of the World Trade Organisation (WTO) agreements. The ATC provides for the complete integration of textiles and clothing into the WTO regime over a 10-year period ending on January 1, 2005. Quotas will be eliminated at the same time.
World trade in textiles normally divides the products into three separate categories:
Textile fibre
- natural fibres
- cellulosic fibres
- synthetic or non-cellulosic fibres
Yarn, fabrics and made-up articles
Apparel
International trade in textiles and clothing has changed substantially the last twenty-five years. Developed countries are increasingly relying on developing countries for exporting clothing.[5]
Textile production is relatively capital intensive while apparel production is relatively labour intensive. Bangladesh, being a labour-abundant country, started the process if industrialisation by concentrating on labour-intensive products such as clothing. Textiles and clothing account for about 85 % of total export earnings of Bangladesh, the clothing industry alone employing 180 000 managers and 1,5 million workers, of whom 1,2 million are women.[6] The country has become a significant exporter of clothing within a short period of time. The important question is whether Bangladesh will be able to maintain or improve its competitive position in clothing after the 10-year transition period of the world trade agreement, which comes to an end in 2005. In a liberalised trade regime, competition among textiles and clothing exporting countries is likely to become intense.
Implementation of the comprehensive world trade agreement involves:
abolition of quotas under the multifibre arrangement (MFA)
reduction of tariffs on textiles and clothing of 21 % for industrial countries and 14 % for developing countries
reduction of agricultural output subsidies by 20 % and export subsidies by 36 %
The impact of the world trade agreement is predicted to be growth of output of textiles to be negative in developed countries such as Australia, New Zealand, the European Union, North America, and also in Latin America. Output of textiles, in contrast, will grow substantially in Asean, China, the NIEs, South Asia and modestly in Japan. For a developing country such as Bangladesh, low relative labour costs may not be sufficient for improving the competitive position of the clothing industry. Greater competition from China and India, which both have a well-integrated textiles and clothing industry and even lower labour costs than Bangladesh, can be expected.
Productivity in apparel and other sub-sectors of Bangladesh are substantially lower than that in other developing countries, including India, Pakistan and Sri Lanka. It also appears that this productivity gap has widened. Professor S. Islam suggests in his book “The Textile and Clothing Industry of Bangladesh in a Changing World Economy” that the demand for South Asian clothing is quite sensitive to price changes. This is consistent with the fact that South Asian countries typically export standardised low-value-added apparel products. Low labour productivity in Bangladesh may be responsible for the relatively high unit labour costs compared to the major competitors. In countries were the share of wages is quite high, the apparel industries are concentrating on high-value-added products.
The clothing industry often produces in the way of production-sharing. The garments are for instance cut in one country and assembled in another. This trend may well be changing. Fully vertically integrated manufacturing seems to be a growing trend, meaning that the production of thread and yarn, fabrics, cutting and sewing the apparel is done in one place. This can be seen in Mexico i.e., due to the need of increasing the competitiveness relative to Asian competitors who all want a part of the large US market.