Bangladesh, the promises of a changing country

Here, the textile industry is reinventing itself. Elegant buildings, modern workshops, and cutting-edge technology, the factories of the Bangladesh Export Import Company Limited (BEXIMCO) group shatter the stereotypes associated with Bangladesh's image. "Our company is one of the best in the world!" shouts the director, Imdadul Huq, amid the noise of the machines as his electric cart moves through an automated fabric factory.

From spinning to assembly, he travels through the industrial park located in Gazipur, on the outskirts of Dhaka. In this fast-fashion stronghold, 40,000 workers are busy putting together clothing destined for the West. Among BEXIMCO's clients, a conglomerate close to the government, are Zara, Bershka, Amazon, and Marks & Spencer. "We are contributing to the development of our country," proudly asserts Imdadul Huq.

The textile industry, an economic powerhouse

The national textile industry, the third largest in the world, is the economic lifeline of the country. It represents 84% of its annual exports totaling 51 billion euros. With 4,500 factories and 4 million employees, the industry is stable but remains dependent on textile fiber imports. It also struggles to create new jobs in a country of 171 million people where 2 million young people enter the job market every year. Minimum monthly wages, revised every five years, remain low. After protests in October, the amount was increased from 8,300 taka (69 €) to 12,500 taka (103 €), but it is still too low.

Nevertheless, the industry has improved since the tragedy of the Rana Plaza workshops ten years ago. In April 2013, the collapse of this factory claimed the lives of 1,130 workers and highlighted the deplorable working conditions of the workforce. "It led to a realization," says Imdadul Huq. Much effort has been made because manufacturers cannot afford to lose their Western clientele. Under pressure from buyers, security and transparency have improved significantly in the export sector.

Giant strides in sustainability

At BEXIMCO, giant strides have been made in ecological sustainability. Solar electricity, water conservation, material traceability, and waste recycling are multiplying with the support of technology. For example, jeans are ecologically washed using lasers. "Many people have preconceived ideas about Bangladesh," explains denim industry veteran Gordon Muir. "The future of sustainable and responsible fashion manufacturing is here."

Energized by its textile industry, Bangladesh has made tremendous progress since its inception in 1971. "Our history is also the impressive quest for economic freedom," says Atiur Rahman, former central bank governor. Once plagued by famines and cyclones, the country will graduate from the category of least developed countries (LDCs) in 2026. With an estimated annual per capita income of $2,688 (€2,450), it has quadrupled in 15 years. Bangladesh dreams of becoming a developed country by 2041, on the 70th anniversary of its independence.

Poverty is declining

One piece of good news is the decline in poverty, which affected 19% of the population in 2022 compared to 32% in 2010. "This spectacular decline will continue," comments Atiur Rahman. Households have become financially stronger, and businesses are more dynamic thanks to the digital revolution. By 2030, Bangladesh is expected to be the 9th largest consumer market in the world.

From average life expectancy to infant mortality, all social indicators have improved. In 15 years, access to water and toilets has doubled. Electricity is accessible to 99% of the population and will be bolstered by the Rooppur nuclear power plant and the development of solar energy. The landscapes are a sprawling construction site. Trains, highways, bridges, subways, airports, and ports are being built in this country surrounded by land and water, bathed in the strategic Gulf of Bengal.

Robust growth 

At the heart of this dynamism is robust economic growth, hovering around 6.5% for the past five years. "During the pandemic, our growth even surpassed India's for a while!" adds Atiur Rahman. However, the war in Ukraine and the global economic situation have brought about some challenging problems.

While Bangladesh's long-term trajectory is promising, the short term is burdened by rising imports, a 9.5% inflation rate, and a decline in foreign exchange reserves, despite remittances from the diaspora. The taka has depreciated by about 30% against the dollar. Bangladesh obtained a €4.7 billion loan from the IMF and is now trying to tighten its monetary policy.

However, the cost of living is keenly felt. Leaving the LDC category will also cost the country some advantages, including access to the Everything But Arms (EBA) program, which eliminates customs duties for European markets. "Furthermore, climate change remains the biggest obstacle to the future, constantly putting our economy at risk," warns Atiur Rahman.

Economic progress and democratic decline

While the economy has thrived under her authoritarian rule, democracy has declined. "Citizens mainly notice that they can now travel to Dhaka in two hours instead of eight, they have access to electricity, and their incomes have increased," comments Zafar Sobhan, editor-in-chief of the Dhaka Tribune. "Sheikh Hasina's political future will only be compromised if she fails to keep the economy under control."

At the helm of the country is the formidable leader, Prime Minister Sheikh Hasina, who boasts of the economic progress made since taking office in 2009. She is expected to be re-elected on January 7, in an election already suspected of irregularities. The opposition is boycotting the election amid concerns from Western countries about the conduct of free and fair elections. The Bangladesh Nationalist Party (BNP), the main opposition party, claims that over 16,000 of its members have been arrested, including several leaders, including the party's chief.

Another opposition figure, Nobel Peace Prize laureate Muhammad Yunus, a social entrepreneur, economist and civil society leader who spread the concept of microcredit with the Grameen Bank he founded, was sentenced to six months in prison on January 1 for violating labor laws, a verdict he considers "political."

Despite endemic corruption, business classes have adapted to the political climate. In the well-lit neighborhoods of Dhaka, affluent areas are prospering. "We wanted to venture in our country, while many go to work abroad," says Waseem Alim, co-founder of the ChalDal startup, a success story in food delivery that employs 2,300 people. Entrepreneurs have more confidence in themselves in a country seeking investors and partners. This change has been recognized by France, with President Emmanuel Macron's visit to Dhaka in September, advancing a project to sell ten Airbus A350 aircraft.

Today, the strategy for textile export markets is diversification. This is also the motto of Bangladesh, which is focusing on the development of pharmaceuticals, energy, and light industries. "Entrepreneurship is not always smooth sailing," smiles Waseem Alim. "What is certain is that opportunities exist here."