“Bangladesh’s Economy Struggles as Fast Fashion Takes Over: The Need for Change” 

BBCBangladesh is the beating heart of the global fast fashion business.The clothes its factories export stock the shelves at H&M, Gap and Zara. Over three decades, this has transformed the country from one of the world’s poorest to a lower-middle income nation.But its garment industry, worth $55bn (£42bn) a year, is now facing an unsettled future after weeks of protests toppled the government of Sheikh Hasina in August. Hundreds of people were killed in the unrest.At least four factories were set alight, while manufacturers struggled to operate under a nationwide internet blackout. Already, some big brands have looked elsewhere for next season’s clothes, three firms that help supply to companies such as Disney, US supermarket chain Walmart and other global apparel companies told the BBC. The disruption is continuing. From Thursday, some 60 factories outside Dhaka are expected to be closed because of worker unrest. Staff have been protesting with various demands, including for better wages.ReutersRecent events “will impact the confidence level of brands”, says Mohiuddin Rubel, a director at the country’s garments manufacturers and exporters association.“And probably they might think – should we put all our eggs in one basket?” he says, noting rival garment-producing countries like Vietnam.Indeed, Kyaw Sein Thai, who has sourcing offices in both Bangladesh and the US, suggests the recent political unrest could result in a “10-20% drop in exports this year”. That’s no small amount when fast fashion exports account for 80% of Bangladesh’s export earnings.Even before the events of the past few months, Bangladesh’s garment industry – and its economy – were not in good health. Child labour scandals, deadly accidents and the Covid-19 shutdown had all taken their toll.Soaring prices had made manufacturing more expensive – but slowing demand meant you couldn’t sell for as much. This was especially bad for Bangladesh, which relies heavily on exports. As profits from exports shrank, so did foreign currency reserves.There were other problems too: excessive spending on showpiece infrastructure projects had drained the government’s coffers. And rampant cronyism weakened its banks, as powerful businessmen with links to former Prime Minister Sheikh Hasina’s Awami League party failed to repay loans.“It wasn’t benign neglect but a designed robbery of the financial system,” the country’s new central bank governor, Dr Ahsan Mansur, told the BBC in a recent exclusive interview.Fixing this, Dr Mansur said, was his top priority, but he warned it would take years and the country would need more financial support, including another IMF bailout.“We are in a difficult spot and we want to remain fully compliant in terms of servicing our foreign obligations, every penny of it. But we need some additional cushion for now,” said Dr Mansur.Mahaburbur Rahman, whose family founded clothing manufacturing firm Sonia Group two decades