Dynamics of the Garment Industry in Low-Income Countries: Experience of Asia and Africa
Edited by FUKUNISHI Takahiro
With a booming economy, other industrial sectors have emerged, and the garment industry is no longer the sector most favored by workers. Wage rates have been increasing, and a supplier’s ability to cope with this through successful upgrading has been the key determinant of whether it can further grow and flourish. Those who fail to cope are finding themselves in an increasingly difficult position.
This chapter looks at both the export- and domestic-oriented garment suppliers, and attempts to highlight how the industry can further develop by examining the bottlenecks that vary depending on the type of supplier. It suggests that in the long run, upgrading and value addition in the domestic market will be the key strategy.
We found that production and employment underwent a considerable drop in 2009. Production for export decreased by 30.7%, the number of jobs fell by 19.5%, and real wages for low-skilled jobs fell by 12.7%. While these changes indicate the adverse effects of the turmoil on the poor, they also incorporate the effect of the financial crisis. A full analysis incorporating the effect of suspension of duty-free access to the US since 2010 will be presented in the final version.