Demise Of A Goose

Lights go off in an RMG factory,
Leaving jobless and worry for industry.
Reasons unearthed for its demise,
Miss out the one,unpleasant to surmise.

Closure of one of Bangladesh's biggest RMG units augurs ill to the golden goose of Bangladesh economy. Already reeling from safety and poor conditions of work issues at the factory,Corona served further blow to the ailing industry that accounts two-third of the exports of the country. Following the repeated pleas from the exporters, government announced soft credit packages to get rid of Corona related difficulties. However,the assistance did little to help as many misused it by paying back old loans or laundering money abroad. Gravity of the matter even prompted Central Bank to warn the banks about misuse of Covid assistance package.

During the pandemic,one after another major brands in the West shut down their operations.Closure of Opex added another bad news. In its successful years,annual turnover reached $500 million. One of its factories is located at the neighbourhood I grew up and live. I witnessed first hand how such factories helped local economy. House rent ,grocery business and thriving kitchen market swelled the local economy. Nowadays, the brand made lots of headlines for workers' agitation. Angry workers often blocked the key Dhaka-Chattogram highway,lifeline of Bangladesh's economy. Many put forward the reasons behind the closure as housing the 45,000 workers at one place,successor issue,loosing orders,mismanagement etc. But it once again reveals the ugly truth that our conglomerates cannot stay long in the business. Lifespan of most of our conglomerates does not last long.

Few years ago I read a feature that revealed the top 10 companies of Bangladesh in each of the 4 decades. I discovered that companies dominated in a decade or better to say under a regime did not manage to continue the domination in the subsequent decades. Many just shrunk or wound down businesses in the face of odds. This shed some light on the prevailing business environment in Bangladesh.

Most of businesses started their journey under a favorable regime. In addition,the era of permit raj,quota,licence etc that involve lots of bureaucratic operations witnessed the crony businesses to grow. Later many of the groups splintered or dropped from the race when the tide turned against them.

Opex started its journey back in 1984.A former military officer hailing from a family that has a firm footing in myriad sectors set up the conglomerate. As it was the trend then many members of the family became MPs and ministers, and obviously the group gained a lot from the influences of the power grab. Quota was still in play and certain ministries were responsible for its distribution. And those close to the power corridors grabbed the opportunity.

I find some of the reasons put forward hard to swallow. Adverse situations that it faced over the last 10 years could also be a reason for its demise. Recurrence of workers agitation at factory premises that had reputation for clearing payments in line with the image of a top conglomerate not only hampered the operations of the factory but also strangulated Dhaka-Chattogram highway,lifeline of Bangladesh economy.

Furthermore, it is not clear whether it received ample government assistance to keep the factory floating. Many upstart and fake factory received assistance with little effort since this government assumed power. According to a news report,banks discontinue back-to-back LC facility sensing its troubles. A company with $500 million turnover a decade ago ended up in such a sorry state.

Look at the banks that invested here. A bad patch on a good company,once shined under a favorable regime, rendered their money bad. And closure of factory means wiping out of 45,000 jobs. Another example of what crony capitalism does to an economy.

Fate of Citycell,Opex is the inevitable flaws in industrialization and doing business in Bangladesh,pretty common where governance is weak,rule of law is subjective and business is mingled with politics. It is dead wrong to put forward only business and economic reasons as sole factors for demise of a factory.

Notes And References:

1 “Opex:Businesses Will Think Twice Before Building Such Large Factory Units”,Saddam Hossain, Dhaka Tribune,October 28,2021Link here

Winter Is Coming!

Showroom, school fill empty factory space,
Vans with sold-out machine rob smile from owner's face.
Vibrant street market becomes thinner.
Winter money making comes under scanner.

1.
The pockets of textile/garments zone of Dhaka have become quiet. I am a frequent visitor to one such pocket. I see rickshaw vans flank the key road of that textile zone. Vegetable vendors, fruit sellers, utensil sellers, snack vendor, mobile beautybox sellers shout cheap prices for their articles at the rushing column of garment workers going home in a hurry to prepare the meal before they go to bed.

Nowadays that column becomes thinner, so does the number of shouting vendor.But this time around the winter, factories are packed with workers to make sure owners deliver the goods in time to super stores and brands in western hemisphere.And the street I am talking about is abuzz with people giving an aura of village fair. That is gone. A subdued activity occupies the street instead. Something bad is happening.The virus attack is unleashing its ugly face on Bangladesh's hard earned currency.

Across the street, arrays of grocery shops also catch the sombre mood. Months after months, shop owners lent workers rice, lentils and other essentials, hoping in good time they would be able to clear the dues.But the good time is still at the far end of the tunnel. Many lost jobs. Many found it difficult to pay the rent of the room they coshared with others. Landlord's patience worn thin.Some vacated house and left for the village or the mofussil district. Vibrant street market goes quiet, it will be quieter in the weeks down the line.

2.
More than a week ago, president of Bangladesh garments exporters' platform, BGMEA, wrote a letter to the government seeking moratorium on credit repayment. In the wake of COVID-19 crisis, government unveiled a Tk 50 billion credit package, which later rose to Tk 91.88 billion,for the garments sector to pay the salaries of the workers provided that six months later exporters would start repaying the instalment.In January, rebate on repayment ends. Since end of November,second wave of COVID-19 has been sweeping across the European and North American countries. First wave already cost 18% less export in the previous fiscal year, a news report claims. Current fiscal year started with optimism.However, some of the big retailers and brands that regularly imported clothes from abroad went bankrupt. The names include Primark and Debenhams. Local staffs of Debenhams Bangladesh even held press conference demanding their dues.

Major destinations of Bangladeshi exports also portray a grim picture: there is a surge in job cut in US in December; UK has gone into lockdown; France has shut all retail stores but the ones selling essential items; Germany has declared lockdown till 31st March. Shrinking income does not translate into buying more clothes. And social security benefits are never used in buying clothes. When uncertainty grips , people save money,slash consumption. More bad news and bad times coming for Bangladeshi exporters.

3.
In the first two quarters of current fiscal year,Bangladesh has exported $19.23 billion worth of goods, according to a news report. The sum is 36% lower than what it exported in the previous year. Lockdowns during the second wave will make further dent in the earnings. Since demand for Bangladeshi apparel items depends a lot on foreign household spending , significant reduction in foreign household income and consumption inevitably augurs ill for Bangladeshi apparel items.

Government support package so far is restricted to clearing the salaries of the workers. Even it is not controversy free. Sporadic protests were staged across the industrial areas, hinting irregularities in the salary payment through mobile financial service.

When it comes to supporting the initiative of creating demand for Bangladeshi apparel goods, government did little.In one of my earlier pieces, I elaborated how to create demand for Bangladeshi goods at home and abroad.Our annual development program (ADP), PM's relief fund could easily support development projects in other friendly countries. If our development program could accommodate uniform purchase program for police, school children in foreign countries or road building projects in other countries then demand for Bangladeshi goods will be created.By increasing the reach of our ADP program, we explore new markets where Bangladeshi goods have potential to enter.

By the same token, government can finance purchase of school dress for 50 million school children in Bangladesh. Or, it can provide incentives to government employees to buy Bangladeshi shirts. This indirect incentive will keep running the factories for at least couple of months and will help easing the employment crisis.

4.
Nowadays I catch sight of vans carrying sold-out electric sewing machines on far too many occasions. Orders are drying up. Factory owners, the ones work as subcontractors, are going out of business. They are selling their equipments. Empty factory buildings in some part of Dhaka are turning into school, private clinic or showroom for home appliances.Some remain empty.

For the winter vegetable sellers on that partly-dark, partly-bright street , there are not too many workers left to shout at. Cheap vegetables remain unsold.Bad time is really contagious. The industry that sustains the economy, logistics company and financial institutions is finally showing signs of weakness. In all these years, winters mean making money. Now, winter is really coming for Bangladeshi RMG industry!

La Semaine Dernière A Mes Yeux

(24 avril --- 01 mai)

Selon un reportage, une étude faite par Singapour prévoit que coronavirus peut disparaître depuis Bangladesh d’ici 19 mai. Les chercheurs estiment que 99% coronavirus va quitter le pays d’ici 30 mai.

Selon un reportage, coronavirus s’allonce mal aux magasins et supermarchés. Fermeture de magasins et supermarchés a coûté les magasins Tk 1200 milliards puisque personne ne fait les courses pour l’Aïd comme d’habitude.

Selon un reportage , personne ne respecte pas les mesures de confinement. Petit-à-petit le nombre de victims va atteindre le plateau. Les ouvriers reprennent le chantier pour atelier de confection puisque des ateliers redémarrent leur operation. À Gazipur, des ouvriers se sont insurgé contre licenciement. Là-bas, un atelier de fabriquant de masque sanitaire a utilisé ses salariés pour travailler dans le jour de travail. Les plateformes d’atelier confection se sont dit qu’ils ont perdu commande d’achat de $8 milliards depuis le début de pandemie. Rouverture d’atelier a fait pour ne pas perdre les commandes actuelles.

Selon un reportage , coronavirus a ciblé 300 restaurants bangladais en Angleterre.

La Semaine Dernière A Mes Yeux

(03 avril --- 10 avril)

Selon un reportage, le plateforme des ateliers de confection, BGMEA, a fermé tous les ateliers après avoir fait polémique en rappellant les ouvriers à Dacca quand l’épidemie propage. En dépit de clôtures, Presque 100 ateliers opèrent à travers du pays. Dirigeants des ouvriers ont dit à la presse, beaucoup d’ateliers n’imposent pas les mesures sanitaires dans atelier.

Selon un reportage, Presque 52 quartiers de Dacca, Tangail et Mymensingh ont fait sujet de mesures de confinement.

Selon un reportage, 200 Bangladais au Singapour sont tombés victims de Coronavirus. Tolarbagh et Bashabo à Dacca, Shibchar à Madaripur, Narayanganj et Sadullapur à Gaibandha ont été declares groupes de lieux plus affectés.

Selon un reportage, 424 Bangladais ont été trouvés avec Coronavirus positive et 27 personnes sont mortes jusqu’au vendredi matin. À l’étranger, environ 140 Bangladais sont morts, don’t 100 péri aux États-Unis.

La Semaine Dernière A Mes Yeux

(20 mars ---- 27 mars)

Selon un reportage, le gouvernement a décrété les measures de confinement à Gaibandha après une femme rt un homme ont été détectés avec coronavirus positive. 27 personnes ont été détectées avec le virus tueur. A Mirpur, deux personnes ont péri. 5 Bangladais ont aussi péri à l’étranger.

Selon un reportage, la plateforme de hypermarché a ordonné de fermer tous les magasins et hypermarchés à compter de 25 mar4s jusqu’à 31 mars.

Selon un reportage, une université privée à demander explications depuis un chercheur après une etude, où il a contribute , avait trouvé que propagation de coronavirus pouvait tuer Presque 500.000 Bangladais. Dans un communiqué, l’université s’est dit qu’elle n’avait jamais commissionné une etude comme ça.

Selon un reportage, BGMEA, plateforme d’ateliers de confection, s’est dit que les acheteurs étrangers ont annulé commande de $1,68 milliards jusqu’au mercredi.

Selon un reportage, gouvernement a déployé police et l’armée de la terre à traverse de pays pour effectuer les measures de confinement du 26 mars au 4 avril. Dans quelques parts , les policies ont battu des gens qui marchaient en donnant aucune raison satisfaisante. Le chef de la Police a appelé Police de montrer retenue remarquable.

Selon un reportage, l’ambassade de l’Angleterre a impose alerte de voyage et conseillé à ses ressortissants de quitter Bangladesh dès que possible.

La Semaine Dernière A Mes Yeux

[Je vous prie de faire un don à 01732678905 par bKash pour maintenir ce site.Votre petit don sera apprécié beaucoup. Merci.]
(1 novembre --- 8 novembre)

Selon un reportage, police a appréhendé la femme de chambre, coupable d' avoir tué deux femmes dans un appartement à Dhanmondi.

Selon un reportage, effondrement d'un bâtiment à Narayanganj a tué un garçon.

Selon un reportage, la destruction de chez BGMEA a été  reporté à cause d'opposition par l'agence responsable pour le démanteler.

Selon un reportage, tamponnement entre un bateau et une croisière a resulté par naufrage de bateau. 3 personnes sont mortes et 12 restent disparues.

Selon un reportage, Amnesty International dans un rapport se dit que plus de 400 personnes ont été tuées dans la guerre contre drogue au cours. Beaucoup de victimes sont innocents.

La Semaine Dernière A Mes Yeux

(11 janvier --- 18 janvier)
Mon site https://rezaulhoque.wordpress.com est encore bloqué au Bangladesh. Le 16 janvier pour 4 heures le blocage a été enlevé. A partir de minuit, le 17 janvier , mon site est bloqué pour deuxième fois. WordPress m'a répondu que mon site était bloqué au Bangladesh. Il n'avait pas de difficultés à voir mon site hors de mon pays.
Selon un reportage , TIB a détecté fraude électorale dans l'élection générale en 2018. Le Tsar de l'Anti Corruption a fait une étude à ce propos. Scrutin dans 47 conscription a été mis en question.
Selon un reportage, des ouvriers bangladais au Koweït ont assiégé l'ambassade de Bangladesh au Koweït en signe de protestation contre escroquerie par leur l'agence de recrutement.
Selon un reportage, 832 Rohingyas, dont 39 % sont des enfants âgés moins de 5 ans, sont tombés victimes de varicelle.
Selon un reportage, le gouvernement et patrons ont mis en fin la protestation par les ouvriers de confection. Des ateliers de confection ont licencié des ouvriers qui participaient à la protestation. Le plateforme de patrons BGMEA a préparé une base donné des ouvriers militants. Il se peut qu'ils ne trouvent pas de boulot dans atelier de confection.