60

“The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Embed Size (px)

Citation preview

Page 1: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”
Page 2: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

“The Collapsing reasons of Rana Plaza as well as

the effects and threats on Economy in Bangladesh”

Submitted To

MD. Sawkat Ali

Assistant Professor

Department Of Business Administration

Dhaka International University

Submitted By

MD. Nazmul Haque

Batch No: 14th

Reg No: 240283

Roll No: 33

Session: 2009-2010

BBA (Evening)

Major in Marketing

Dhaka International University

Date of submission: 30th

August,2013

Page 3: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Student’s Declaration

I am Md. Nazmul Haque student of Bachelor of Business Administration,

Dhaka International University, do hereby that project report “The Collapsing

Reasons of Rana Plaza as well as the Effects and Threats on Economy in

Bangladesh” presented to the department of Business Administration, Dhaka

International University is the outcome of the project report has been performed

by me under the supervision of Md. Sawkat Ali, Assistant Professor,

Department of Business Administration, Dhaka International University,

Bangladesh.

--------------------------

Md. Nazmul Haque

Batch No: 14th

Reg No: 240283

Roll No: 33

BBA (Major in Marketing)

Faculty of Business Studies

Dhaka International University

Page 4: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Supervisor’s Declaration

I hereby declare that the concerned report entitled “The Collapsing Reasons of

Rana Plaza as well as the Effects and Threats on Economy in Bangladesh”

is an original work which has been done by Md. Nazmul Haque Roll No:

33,Major in Marketing, Department of Business Administration, Dhaka

International University, Completed his project under my supervision and

submitted for the partial fulfillment of the requirement of the degree of Bachelor

of Business Administration at Dhaka International University, Bangladesh.

----------------------------

Md. Sawkat Ali

Assistant Professor

Department of Business Administration

Faculty of Business Studies

Dhaka International University

Page 5: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Letter of Transmittal

28th August, 2013

Md. Sawkat Ali

Assistant Professor

Department Of Business Administration

Faculty of Business Studies

Dhaka International University

Subject: Submission of Project Report.

Dear sir,

I beg most respectfully to state that i have the pleasure to submit my dissertation

report. This Project focuses on “The Collapsing Reasons of Rana Plaza as

well as the Effects and Threats on Economy in Bangladesh”. It is the partial

requirement of my Bachelor of Business Administration program. To prepare

this report i have tried my best to make the project report meaningful and

informative. I am very glad to submit it as part of completion of my Internee

with you. I have tried my best in trying to put up a good project report with as

much information as i could gather during the short time allotted for writing the

project report.

Thanking you for your nice support and help throughout the Internee period. I

am grateful to you.

Your Sincerely

Md. Nazmul Haque

Batch No: 14th

Reg No: 240283

Roll No: 33

Bachelor of Business Administration

Major in Marketing

Dhaka International University

Page 6: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Acknowledgement

First of all I would like to pay my gratitude to Almighty Allah for giving me the

opportunity to prepare my Project Report

After that I would like to pay my gratitude to my honorable Supervisor

Assistant Professor Md. Sawkat Ali for his painstaking guidance, suggestion,

and all types of support and Supervision in preparing this Project Report. He

continuously reminded me for the preparation of this Project Report.

I would also like to thank them those people who had helped me much by

giving me much information regarding my Project Report.

I would like to thank my family members as well as friends for their continuous

support and inspiration throughout the whole period of this undertaking.

Your Sincerely

Md. Nazmul Haque

Batch No: 14th

Reg No: 240283

Roll No: 33

Bachelor of Business Administration

Major in Marketing

Dhaka International University

Page 7: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Executive Summary

Collapsing Rana Plaza has been considered at present to be the third largest

industrial destruction. In the world history as well as the deadliest accidental,

structural failure in modern human history. It is also considered as the greatest

industrial destruction in the national history of Bangladesh. The building had

collapsed from crack. 1,130 people are died and almost 2,500 people are

seriously injured. All level people took part in rescuing. The dead bodies are

buried at the Jurain graveyard in the capital. After rescuing injured people are

hospitalized for proper treatment at different hospital in Dhaka city. For

collapsing the owner of the building named Sohel Rana is responsible. He was

arrested by RAB on the 28th April from Benapole, Jessore and his father was

also arrested on 29th April. The government, BGMEA and many others private

organizations is provided financial aids both the death and injured families.

Besides, the government are trying to rehabitation. It is known to all that

Bangladeshi product has a great demand to the USA and EU. The Wages and

Salaries of the workers are so cheaper than the other country in the world. The

reasons of collapsing are using lower materials, unstable pillars, building

infrastructure, keep excess raw-materials on the floors, lack of recognition for

foundation, keep heavy machines etc. It may impacted and threatened on the

Economy in Bangladesh. Such as garments sectors can be abolished in future,

production, Foreign currency can be declined. It also can be happened in money

inflation. From the USA, the generalized system of preferences (GSP)

opportunity has been suspended. It can be hampered our national Economy. The

government should proper steps to stop such types of tragedy in future. Since

our country is fully depended on readymade garment industry at present. So the

government should provide proper opportunities for the garment workers. On

the other hands, our country will lag behind.

Page 8: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Title:- Page No.

Front page-----------------------------------------------------------------

Student’s declaration----------------------------------------------------

Supervisor’s declaration------------------------------------------------

Letter of Transmittal-----------------------------------------------------

Acknowledgement-------------------------------------------------------

Executive summery------------------------------------------------------

Table of contents---------------------------------------------------------

Chapter:- 1 Introduction.

1.1Introduction-----------------------------------------------------------

1.1.1 From crack to collapse------------------------------------

1.1.2 Miracle girl-------------------------------------------------

1.1.3 The operations to rescue Reshma-----------------------

1.1.4 The participation of arm forces as well as the

Public people----------------------------------------------

1.1.5 The Trance of the dead bodies----------------------------

1.2 Background------------------------------------------------------------

1.3 Objectives--------------------------------------------------------------

1.4 Study methodology---------------------------------------------------

1.4.1 Primary data-------------------------------------------------

1.4.2 Secondary data----------------------------------------------

1.5 Paradigms of the study-----------------------------------------------

1.6 Limitation of the study-----------------------------------------------

17

17

17

17

16

16

15

14

14

12-13

12

11

9-10

6-8

5

4

3

2

1

Type equation here.

Page 9: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Chapter-2 The profile of Sohel Rana and the Government

steps.

2.1 Owner as well as convicted persons------------------------------

2.2 The genealogy of Sohel Rana--------------------------------------

2.3 The operations of RAB---------------------------------------------

2.4 The Suspension of eight Govt. Personnel------------------------

2.5 The residential opportunity for the victims----------------------

Chapter-3 The compensation as well as Donations, Wages

and Salaries.

3.1 The Compensation of Government--------------------------------

3.2 The compensation of BGMEA-------------------------------------

3.3 Donors Supported "Rana Plaza Victims" Through CRP-------

3.3.1 3.3.1 At CRP, Savar---------------------------------------

3.3.2 At CRP, Mirpur--------------------------------------------

3.4 The Comparison of per hour’s Wages and Salaries------------

Chapter-4 The collapsing problems of Rana plaza as well

as the main environmental problems of Garment workers.

4.1 The reasons for collapsing the building--------------------------

4.2The main environmental problems of garments workers-------

Raw materials----------------------------------------------------

Unskilled workers-----------------------------------------------

Improper working environment-------------------------------

Lack of managerial knowledge--------------------------------

Gendered division of labour-----------------------------------

Wages-------------------------------------------------------------

Insufficient of loan----------------------------------------------

Unit labour cost-------------------------------------------------- 38

38

37-38

37

36

36

35

35

35

34

31-32

30

27-30

26

25-26

25

23

23

22

20-22

19

Page 10: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Working hours--------------------------------------------------

Poor accommodation facilities--------------------------------

Safety Problems-------------------------------------------------

Political crisis----------------------------------------------------

Price competitiveness-------------------------------------------

Lead time---------------------------------------------------------

Chapter-5 The Threats and Effects on Economy in

Bangladesh.

5.1 The Threats on Economy in Bangladesh------------------------

5.2 The Effects on Economy in Bangladesh------------------------

5.3 GSP opportunities--------------------------------------------------

Chapter-6 The SWOT analysis and Findings.

6.1SWOT analysis----------------------------------------------------

6.2 Findings------------------------------------------------------------

6.3 Questionnaires----------------------------------------------------

Chapter-7 Recommendation and conclusion.

7.1 Recommendation-----------------------------------------------

7.2 Conclusion-------------------------------------------------------

7.3 References-------------------------------------------------------

58

57

56

53-54

52

50-51

46-48

45

44-45

41-42

41

40-41

40

39

38-39

Page 11: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Introduction:-

1.1Introduction

1.1.1 From crack to collapse

1.1.2 Miracle girl

1.1.3 The operations to rescue Reshma

1.1.4 The participation of arm forces as well as the

Public people

1.1.5 The Trance of the dead bodies

1.2 Background

1.3 Objectives

1.4 Study methodology

1.4.1 Primary data

1.4.2 Secondary data

1.5 Paradigms of the study

1.6 Limitation of the study

Page 12: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

1.1 Introduction:-

It was the time of 24th April 2013, Bangladesh standard time ,a quarter to 9:00

am. that means 8:45 am in the morning at Savar in Dhaka area, the capital of

Bangladesh. A eight storeyed commercial building is located near Savar bus

station as well as beside the Dhaka Aricha highway which named Rana Plaza is

fallen down a victim of collapsing. Some portion of the building collapsed on

the another building which building was located beside the collapsing building

The ground floor of the collapsing building had kept for cars parking. There

were many organizational offices as well as a Bank had contained in the first

floor and there were many shopping molls were in the second floor. Clothing

factories had contained from third floor to seventh floor. Above two floors had

vacant. It housed a number of separate garment factories employing around

5,000 people, several shops, and a bank. At-present the Saver tragedy has been

considered to be the third largest industrial destruction in the World history as

well as the deadliest accidental structural failure in modern human history. Its

also considered as the greatest industrial destruction among the industrial

destruction in the national history of Bangladesh.

The searching mission for the dead has ended on 13th May with the death total

of 1,127. A rescued as well as wounded young lady named Anjuara who is

eighteen years old surviving a month has died last Friday, 24th May, 2013 at a

private Hospital in Dhaka and same a young man named Asraful Islam who is

nineteen years old has died last Saturday 25th May ,2013 at Dhaka Medical

College Hospital in Dhaka one has been also died at hospital in mid on August.

Now the total dead are 1,130 from 24th April 2013 to 26th May 2013. 996 bodies

are not found in the piles. According to the BGMEA, Among the total 1,130

838 dead bodies has been identified and for identifying the 291 dead bodies,

Page 13: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

DNA has been submitted to the forensic division for identifying at Dhaka

Medical College Hospital. And there is a great probability to remain many dead

bodies there. As there is no possibility to fetch alive body and huge difficult to

rescue. the mission of rescuing has already ended. Approximately above 2,500

injured people were rescued from the building alive in time.

1.1.1 From crack to collapse:-

According to media reports workers at Rana Plaza saw the cracks in the huge

structure the day before the collapse but the authorities did not take

precautionary steps. The building owner sohel Rana allegedly told media on the

same day that the cracks were “nothing serious” and on 24th April, the day of

the deadly incident, workers were forced to work and threatened with a month’s

salary cut if they did not comply. All this in the country with the world’s lowest

minimum wage. Rana has been described as “the most hated Bangladesh”, but

an important detail has been missed in much of the reporting: Rana is not the

owner of the garment factories nor did he decide whether the garment factories

would remain open or not. Rana has been an easy scapegoat, as the building is

named after him, but what about the systemic failings behind the front man?

Industrial police had asked the garment factory owners at Rana Plaza to keep

the factories closed and only continue further operations after consulting with

expert structural engineers. The question that remains unaddressed is: why did

the factory owners and Rana work from the same playbook, and ignore this

crucial advice?

Page 14: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

1.1.2 Miracle Girl:-

The news has come to not only for the Bangladeshis people but also for the

World’s people that a young lady named Reshma who was used to usually

working among the Garment workers and had also fallen the victim. After 17 or

391 hours struggling against death, she is rescued alive from the destructive

piles.“It’s good to see the light after so many days,” Reshma said in a feeble

voice, trying to smile at the jubilant rescuers and onlookers. After that she is

sent to military combined hospital (CMH). It is the one of the rare events in the

World’s history. Without food-stuff to alive is so difficult. Its was the grace of

only Almighty Creator. she has been completely come round from her physical

concerned now. Actually she is a miracle girl.

1.1.3 The Operations to rescue Reshma:-

Miracle girl named Reshma was rescued on 10th May in the afternoon. The

operation to get Reshma out was carried out by five army personnel and eight

firemen. The rescue team was initially planning to get into the basement of the

building with their usual arsenal of heavy equipment but they found water in the

basement, said Major MM Moazzem Hossain, a team member.

“Around 3.25 pm, when were trying to locate the source of the water, standing

on the first floor of the collapsed building, we saw a movement of a stick,” he

told The Daily Star “We were five to six yards away from the moving stick,

which was short and thin,” he also said that they rushed to check what was

causing the movement and shouted asking if anyone was there. “We heard a

female voice say, Save me”.

Page 15: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Another rescuer , Warrant officer Abdur Razzaque, said after they had created a

hole, they saw a human face. “A voice reached my ears, Bhai amaki bachan

[Brother save me]” he said. Major Moazzem said, “I spoke to the girl. She told

me her name is Reshma…we told her that we will be with her and that we

would not leave without getting her out” Moazzem said then they started to

make the narrow hole bigger using hand drills and hammers. It took an hour to

make the hole 1.5 feet in diameter.

During this time, they gave Reshma juice and water. Moazzem said, “I went

inside as I was thinnest among the rescuers. I helped Reshma to get out through

the hole. She was skinny too and was able to get out with ease around 4.30 pm.”

He said Reshma was trapped in a pocket about 10 feet long and eight feet wide.

She was able to walk, sit and sleep on the floor.

Deputy Director Rezaul Karim of Fire Service and Civil Defence, who also took

part in the rescue operations, said, “After being taken out, Reshma was looking

around and said she was glad to see daylight.

It is hard to imagine the joy the rescuers felt the rescuers felt after pulling out

bodies from the rubble for weeks. Onlookers rushed into congratulation the

rescuers as Reshma was taken away in an ambulance.

Page 16: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

1.1.4 The participation of arm forces as well as the public

people:-

Bangladeshi Cops, Army, RAB, Firefighter, take part in rescue operations of the

Collapsing building. Besides the arm forces, general people had played a

Unavoidable role in the rescue operations. Among the general public, Babu is a

unforgettable name in the history of Savar tragedy.He is rescued above 30 alive

people by ownself. Bangladesh armies also operated their mission for rescuing

with dogs squad.

1.1.5 The Trance of the dead bodies:-

The collapsing building those people has been died, they are buried at the Jurain

graveyard in the capital. According to various newspapers, at least thirty two

unidentified dead bodies are buried at the Jurain graveyard in the capital. The

bodies were recovered from the debris of Rana Plaza which collapsed on April

24, arranging the burial of the 32, as their identities were yet to be

established.80 graves are dug at Jurain for burial of unclaimed bodies of the

Rana Plaza victims. after the first namaz-e-janaza of the victims in front of the

Dhaka Medical College Hospital at around 2:00pm, 19 unclaimed bodies were

brought to the Jurain graveyard . Earlier, 21 bodies had been handed over to

their relatives from the hospital morgue as their identities could be established.

Another body of the 19 are, however, identified by the family members at

Jurain graveyard and Anjuman buried the rest 18 bodies received from DMCH

morgue, They are also buried 14 unclaimed bodies brought there from Mitford

Hospital morgue. that the DNA samples of the bodies are preserved so that their

identity could be established. It’s so sorrow able matter for the worlds people.

Page 17: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

1.2 Background:-

The location of Savar, the site of the building collapse, in relation to Dhaka. The

building, Rana Plaza, was owned by Sohel Rana, allegedly leading member of

the local Jubo League, the youth wing of the ruling Awami League political

party. It housed a number of separate garment factories employing around 5,000

people, several shops, and a bank. The factories manufactured apparel for

brands including Benetton, Bonmarché, Cato Fashions, the Children's Place, El

Corte Inglés, Joe Fresh, Mango, Matalan, Monsoon, Primark, and Walmart.

The head of the Bangladesh Fire Service & Civil Defense, Ali Ahmed Khan,

said that the upper four floors had been built without a permit. Rana Plaza's

architect, Massood Reza, said the building was planned for shops and offices

but not factories. Other architects stressed the risks involved in placing factories

inside a building designed only for shops and offices, noting the structure was

potentially not strong enough to bear the weight and vibration of heavy

machinery.

Bangladeshi news media reported that inspectors had discovered cracks in the

building the day before and had requested evacuation and closure. The shops

and the bank on the lower floors immediately closed, but garment workers were

forced to return the following day, their supervisors declaring the building to be

safe. Managers at Ether Tex threatened to withhold a month's pay from workers

who refused to come to work.

Page 18: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

1.3 Objectives:-

The objectives regarding Rana Plaza Collapsing analysis is very indispensable

matter not only for the betterment of the people of Bangladesh but also for our

national Economy. Everyone knows that Garments Sector plays an unavoidable

role in our national Economy. We also know that those people had died for

collapsing Rana plaza, most of the people are Garments workers among the

dead people. We also informed our Economy directly influenced by the

Garments Sectors. Our Government gets a large sum of foreign currency from

this industrialization.

To find out the reasons of collapsing Rana Plaza.

To find out the threats and effects on Economy in Bangladesh.

To know about the infrastructure.

To know the problems of Garments Industry.

The impacts of international relationship on International Trade.

1.4 Study methodology:-

This project report has been prepared on this basis of experimental gathered

during the period of the project report. For preparing this report I have to

investigate The Daily Stares, The Prothom Alo, BBC News, Bangladesh

Protidin, The internet Websites such as www.assignment.com,

www.wikipedia.com, etc for collecting data about the internship project report.

Page 19: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

1.4.1 Primary data:-

From the local area of different people, I had gotten the information. To collect

the data, I also had to communicate many people of Savar those people are

dwelled adjacent to the collapsing place.

1.4.2 Secondary data:-

To prepare the project report, I use different Newspapers where are in the

secondary data particularly contained. I also visit various websites.

1.5 Paradigms of the Study:-

This study has focused upon the various problems regarding the collapsing

Rana Plaza at Savar. I have taken the data on the basis of the reasons of

collapsing, the problems of Garments Industry, threats and Economics effects in

Bangladesh.

1.6 Limitation of the study:-

This project report may encounter the following limitation:-

Lack of provisions.

The study will be included with long time.

Lack of necessary explanation of the project report by turns.

This circumstance was in the intolerable moment.

Page 20: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

The profile of Sohel Rana and the

Government steps:-

2.1 Owner as well as convicted persons

2.2 The genealogy of Sohel Rana

2.3 The operations of RAB

2.4 The Suspension of eight Govt. personnel

2.5 The residential opportunity for the victims

Page 21: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

2.1 Owner as well as convicted persons:-

The building, Rana Plaza, was owned by Sohel Rana, allegedly leading member

of the local “Jubo League”, the youth wing of the ruling “Awami league”

political Party. The collapsing building was built in 2007 and before

constructing, a abandon area like rejected pond is dominated to Rana illegally.

Those people who are convicted regarding the destructive Tragedy, Shohel

Rana is one of them all the other convicted persons are remarked below:-

Shohel Rana (Owner of the building).

Bazlus Samad Adnan (New wave Buttons).

Mahabubur Rahman Taposh (Managing Director of New wave

Buttons).

Aminul Islam (Owner of Fantom Garments).

Imtamum Hossan (Technologist of Savar zilla area).

Ali Mia (Deputy Technologist of Savar zilla area).

Those people’s names are remarkable in the top of the line. They were basically

responsible for happening that tragedy at savar in Dhaka.

Page 22: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

2.2 The genealogy of Sohel Rana:-

The people of Savar knew Sohel Rana as the person who became the

Juboleague Leader (Awami youth Wing) of Savar all of a sudden. He was the

son of Khaleq Kolu. His father’s was from the Singay Upozila of Joymondop

village in Manikganj District. Only two decades ago his penniless father Khaleq

Kolu left his home land in search of a better life in Namapara, at Savar. He

started a little business of making mustard oil by crushing mustard seeds

himself and later selling them to make enough money to feed the family. Rana

use to help his father with making the mustard oil. Rana left school in year 8

and grew up to be a very despicable young man by joining the local terrorist

group. Overnight Rana accumulated a huge mountain of black money from an

unseen power. He became well known as the illegal occupier of people’s lands.

Multi storey building started to grow one after another in his name. The 9

Storey Rana Plaza, 9 Storey Rana Tower and a 5 Storey Residence building for

himself were among a few of his assets.

He was the Ex-Secretary of Chatroleague (Awami student wing) in Savar before

his current position as the Juboleague convener for the city of Savar. He is very

closely associated with the Saver Awami League MP, Tawheed Jong Murad,

who has helped him to accumulate all this wealth. If you set foot in Savar

Bazar, the closeness of Savar MP and Sohel Rana can be seen in huge banners

where they are pictured welcoming each other. Rana used his vast wealth to

hide his dark past before the collapse of Savar Rana Plaza.

The land where Rana Plaza was illegally built, was originally owned by a Hindu

man by the name of Naryanchondro. He was later referred to as ‘pagla’ since he

Page 23: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

became mad as a result of being thrown out of his lands. Even though no formal

complaint was made against Rana (as they were threatened with death). His

name was mentioned in three separate incidents of murder in Savar.

Among the murdered was his own brother in law (sister’s husband) whose only

crime was that he was a BNP supporter who married his sister in secret.

Another was his own party member who was bought into his basement for a

drink but later killed by Rana. The third innocent individual fell victim during a

dispute with Rana.

The collapse building owner of Rana made this claim to a journalist on the day

of the collapse “Bengalis make a big deal out of everything” referring to the

cracks in the wall of the building. Those journalists have a copy of his recorded

interview.

A couple of rescued survivors of the collapsed building said, on the day of the

event when they refused to enter the building, Rana told them that the building

was safe and the cracks was just a simple plastering issue.

Rana Plaza was rented out to 5 factory owners. Those factory owners utilized

Rana to inflict torture on their garments workers., including physical and mental

abuse. Even on the day of the accident the factory owners called Rana into force

the garment workers to entire the building. The names of the factories were,

New Buttons, Neway Style, Phantom Apparels, Pang tag Year Tang. After the

collapse of the Rana Plaza building, none of the careless factory owners

Page 24: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

contacted the BGMEA (Bangladesh Garments Manufacturing Exporters

Association) an organization that looks out for the Garments owners. BGMEA

was trying to communicate with these owners.

The basement of Rana Plaza was also used for various other purposes. If was

used as a storage for drugs and Wine containers imported from bought through

the Indian border in Jessore.

2.3 The operations of RAB:-

Sohel Rana was arrested by RAB (Rapid action Battalion force) on the 28th of

April with a huge possession of alcohol in Benapol, Jessore near the Indian

borders as he was fleeing to India. His arrest was made based on a simple

building construction code act which gives a maximum sentence of 5 years

imprisonment and a fine of TK 50,000 only. And like many others before him

he will be released back into society after his sentence has been served where he

will continue the corruption and exploitation of many normal, innocent people

of the country.

The members of Detective Branch (DB) of police arrested father of Sohel

Rana, owner of Rana Plaza, named Abdul Khalek Alias Kolu Khalek. A team of

Detective Branch police arrested Khalek from capital’s Moghbazar area on 29th

April noon.

Page 25: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

2.4 The Suspension of eight Govt. personnel:-

The complain for giving the permission of the illegal building without proper

verification, eight employees has already been suspended preliminary by the

government. But one of the person has already been retired. Almost the step has

been taken after one and half months of the tragedy.

Inspite of it’s illegal setting up generators of various floors without any

permission by law, they don’t pay heed any time. From that it is considered

according to the report, they have been neglected to the duties and for their

negligence this tragedy could be happened. They do not also take necessary

observation and relevant verification. They had winked the illegal task in this

paradigms.

2.5 The residential opportunity for the

victims:-

Regarding the Rana plaza collapsing those people who are fallen the victims,

The Bangladesh government has declared for providing their residential

opportunity. With the passage of time, The government will acquire the land of

the collapsed Rana Plaza, which came crashing down on April 24, and take up a

long-term plan to rehabilitate the victims’ family members there. Jahangir Kabir

Nanak, state minister for local government, made these comments while talking

to reporters at the collapsed Rana Plaza site after a prayer service for the

victims.

Page 26: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

The compensation as well as

Donations, Wages and Salaries:-

3.1 The Compensation of Government

3.2 The compensation of BGMEA

3.3 Donors Supported "Rana Plaza Victims" Through CRP

3.3.1 3.3.1 At CRP, Savar

3.3.2 At CRP, Mirpur

3.4 The Comparison of per hour’s Wages and Salaries

Page 27: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

3.1 The Compensation of Government:-

Bangladesh government has been declared giving the compensation to the

victims people. Prime Minister Sheikh Hasina has been given the compensation

by turns five times those people are fallen down at the victims. Prime Minister

Sheikh Hasina gives the family accumulation papers to the 133 family members

those has been died and 18 family members those people are serious injured.

From 10 to 15 lac BDT has been given to the both family. Before that Prime

Minister Sheikh Hasina has been given the compensation to the 452 families by

tunes at four times one after another from her well-being funds.

3.2 The compensation of BGMEA:-

Bangladesh Garment Manufacturers Exporters Association (BGMEA) has

already paid the compensation to the victim people’s family members those are

died and seriously injured at Savar tragedy at Savar. This organization has paid

the compensation gradually to those people. They have given the compensation

money at first 325 by turns twice from at least 1 lac to 3 lac and which money

has been distributed by the prime minister Sheikh Hasina by her own hand.

Besides those people are seriously injured also has been taken interpretation for

their betterment as well as all medical allowance are borne by the organization.

In this regard BGMEA Vice-President has told that 838 dead bodies has been

identified and another 291 DNA has been given at the forensic division for

identifying at Dhaka Medical College Hospital. From this tragedy those bodies

has been identified at that time at Adhorchandro school playground, then 20,000

thousand taka had been distributed to the victims family.

And the residual’s families will be given the financial assistance very soon. All

the problems of every victims family is not the similar which has been delivered

Page 28: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

this speech by him. He also adds those families of dead has contained only

parents, 1 lac will be given and another whose has not only parents but also wife

and children, 3 lac will be given on consideration. He also says that the all

medical expenses are borne by the organization (BGMEA). Expenses of some

special hospital at Dhaka are statistically found out that at Apollo hospital BDT

100,00,000/= has been spent as the treatment of those people. At Square

Hospital BDT 40,00,000/=, at United Hospital BDT 18,00,000/= has been given

as the expenses for the patients. Those has lost their limbs of their bodies from

the tragedy vocational aids from foreign countries will be taken for substituting.

Besides all expenses like residential expenses, transportation costs, food-stuffs,

wil be given for that’s moment to the relatives of victims people.

3.3 Donors Supported "Rana Plaza Victims"

Through CRP:

CRP Management is very pleased to announce that, many organisations and

individual donors from home and abroad wanted to support the victims of "Rana

Plaza"tragedy through CRP. We would like to thank them all for such noble

intentions. Many have already contributed. We would like to convey our

heartiest thanks to them. Following are a few of our donors contribution NGO

Service their support for Rana Plaza Victims to CRP management:

Page 29: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

3.3.1 At CRP, Savar:

1. Epyllion Group: BDT 50,000 (27-04-13)

2. Syeda Sohana Parvin, Canada: BDT 44,329 (28-04-13)

3. Imon Chowdhury, Chittagong University: BDT 8,500 (29-04-13)

4. Hafiza Rahman: BDT 5,000 (29-04-13)

5. Johora Alam Eti: BDT 2,155 (29-04-13)

6. Mesbah Uddin Mishu: BDT 5,000 (30-04-13)

7. Saddam: 500 (30-04-13)

8. Asst. Director, Direct Employment & Manpower Office: 3,000 (30-04-13)

9. Dr. Joseph A. Rogario: IV Injections, medicines

10. Volunteer of CRP: BDT 14,385

11. Bangladesh University of Professional Literature Club: BDT 45,650 (02-05-13)

12. Dhira, Kaniz, Sonia, Sabrina: BDT 8,185 (02-05-13)

13. Lisa Ahmed: BDT 7,400

14. Epyllion Group: BDT 5,000 (02-05-13)

15. Jaki Mustofa Chowdhury, Engineer, WASA, Dhaka: BDT 12,000 (29-04-13)

16. A.B.M. Mashbah uddin (Mishu), Comilla: BDT 5,000

17. Bangladesh agriculture University Residential Campus Members & K.B School

& K.B. College: BDT 52,400 (29-04-13)

18. Dr. Ashraful Alam: BDT 50,000

19. Mr. Saddam: BDT 500

20. Dhira, Kaniz, Sonia and Sabrina: BDT 8,185

21. Shefa Islam: BDT 5,000 (04-05-13)

22. ACI Pharmaceuticals: Medicine

23. Ali Amjad Choudhury, ACA: BDT 10,000 (29-04-13)

24. Quazi Shairul Hassan: BDT 1,00,000 (30-04-13)

25. Shah Mohammad Mushfiqur Rahman: BDT 30,000 (02-05-13)

26. Tanha, Mymensingh Agriculture University: BDT 4,740 (29-04-13)

27. Prothom Alo trust: BDT 2,40,000 only for wheel chairs (02-05-13)

28. ARY’s Academy: BDT 35,500 (04-05-13)

29. FNT/AHL: BDT 100,000 (04-05-13)

30. Nursing Dept., CRP Savar: BDT 10,000 (05-05-13)

Page 30: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

31. Farida Rahman: BDT 1,000 (06-05-13)

32. Md. Morshed Alam: BDT 1,000 (06-05-13)

33. Mrs. Tahmina Begum: BDT 2,100 (06-05-13)

34. Ashraful Alam: BDT 50,000 (04-05-13)

35. Kids Tutorial: BDT 88,916 (04-05-13)

36. Australian School: BDT 30,000 (04-05-13)

37. Shurid 18: BDT 1,00,000 for assistive devices, wheelchair, artificial limbs (07-05-

13)

38. Ferdous Ahmed Naser: BDT 1,00,000 (07-05-13)

39. Humayun Kabir: BDT 20,008 (07-05-13)

40. Mahmuda Begum: BDT 1,500 (08-05-13)

41. SABINCO: BDT 2,00,000 (08-05-13)

42. Md. M Hannan: BDT 25,000 (08-05-13)

43. Staffs, Mirpur-CRP: BDT 11,602 (11-05-13)

44. Sajib and Friends: BDT 29,000 (12-05-13)

45. Beautiful Mind: BDT 19,000 (12-05-13)

46. BDPC: BDT 12,200 (13-05-13)

47. Mrs. Rawshan Mobarak: BDT 3,000 (14-05-13)

48. Citibank N.A Bangladesh: BDT 10,00,000 (15-05-13)

49. Citibank Employees: BDT 6,37,719 (15-05-13)

50. Green Herald Int. School: BDT 2,45,240 (15-05-13)

51. Research & Development (Refrigerator) Walton Hi-Tech Ind.: BDT 15,300 (15-

05-13)

52. Technohaven Company Limited, Sanjoy Debnath: BDT 15,000

53. Consumark Limited - Habib Sattar (M.D), Nasreen Sattar, employees: BDT 50,000

54. Tarun Shanbadik Shomaj (TSS): BDT 7,000

55. People of Atikokan, Canada: BDT 1,00,000

56. Prothom Alo Trust: BDT5,00,000 (20-05-13)

57. Dr. Shahiduzzaman Khan: BDT 1,52,000 (02-05-13)

58. Md. Abdul Bari: BDT 1,02,000 (22-05-13)

59. Mr. Sujaul Islam, Senior Research Asst., ICDDRB: Medicine

60. Australian School, Dhaka, Campus-3, Mr. Azim: BDT 50,501

61. Jan & John Steffens: BDT 80,000 (18-05-13)

62. People of Atikokan, Canada: BDT 1,00,000 (18-05-13)

Page 31: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

63. Inner Wheel District 328: BDT 1,00,000 (19-05-13)

64. Savar Tragedy Support Group, Sydney: Aus$17,224 (BDT 12,91,800), (24-05-13)

65. Capt. Md. Shafiul Azam, Bangladesh Navy: BDT 5,000 (25-05-13)

66. Shabana Ali: BDT 1,00,000

67. Aftabuzzaman: BDT 1,52,000 (28-05-13)

68. Probin Mohila Songothon (Hemontica): BDT 1,62,000 (27-05-13)

69. The Hongkong and Shanghai Banking Corporation Limited: BDT 21,76,254 (27-

05-13)

70. IBA, Dhaka University ( MBA-49D): BDT 38,500 (22-05-13)

71. Shaptabarna Sangshad: BDT 80,000 (22-05-13)

72. Ms. Shameema Ferdous: BDT 30,000 (22-05-13)

73. Ms. Nazifa: BDT 100 (26-05-13)

74. Lari Walton: BDT 40,350

75. Akij Group: BDT 12,00,000 (20-05-13)

76. Deepika Dewan: BDT 1,00,000 (20-05-13)

77. Fu Wang Ceramic Industries Limited: BDT 50,000 (20-05-13)

78. M.E.K Lutfullah BDT 53,593 (20-05-13)

79. Greater San Diego Bangladesh Associate: BDT 80,700 (20-05-13)

80. Md. Amirus Salam Rahel: BDT 25,000 (20-05-13)

81. Md. Abdul Basher: BDT 5,000 (20-05-13)

82. Md. Mushraf Hossain: BDT 46,043 (27-05-13)

83. Mrs. Mariam Sultana, Mohammodpur: BDT 5,000

84. Banani Society: BDT 3,00,000 (25-05-13)

85. Baridhara Society: BDT 2,00,000 (25-05-13)

86. Together For Justice(TFJ), Canada: BDT 1,10,000 (28-05-13)

87. Indesore: BDT 500,000 (29-05-13)

88. PIES CUAORADOS Ltd.: BDT 10,50,000 (29-05-13)

89. International Recreation Clubs Ltd.: BDT 13,57,500 (29-05-13)

90. VF Asia Ltd.: BDT 9,74,313 (29-05-13)

91. Nursing Dept. CRP- Mipur: BDT 900 (29-05-13)

92. Azra Faizi Ahmed: 2 stand fans (30-05-13)

93. Naiyer Ara Kabir: 2 stand fans (30-05-13)

94. Ishrat Afroze Akhter: 2 stand fans (30-05-13)

95. Ismat Afroze Kabir: 2 stand fans (30-05-13)

Page 32: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

96. Rifat Abdullah: 2 stand fans (30-05-13)

97. ICF International, USA -$5000(16.05.2013)

98. Abdur Razzak BDT 67000/= (17.06.2013)

99. Baitul Aman Jame Mashjid-BDT-73,990 (01.06.2013)

100. World Bank Employees in Bangladesh- BDT-92,200.(30.05.2013)

101. Baridhara Cosmopolitan Club-BDT-1,14,000.(03.06.2013)

102. Milestone College-BDT-3,00,000.(03.06.2013)

103. Md. Rezwanur Rahman-BDT-5,000.(01.06.2013)

104. Regina-BDT-10,000.(09.06.2013)

105. Humayun Kabir- BDT-20,007.(14.05.2013)

106. Eastern Point Flat Owner’s Cooperative Society Ltd.-BDT-

51,565.(09.06.2013)

107. American International School, Dhaka (AISD) BDT 184832(11.06.2013)

108. Australian Residence BDT 50000/= (16.06.2013)

109. Rotary Club of Dhaka Buriganga BDT 377,000 (19.06.2013)

110. US Mission Bangladesh Employee Welfare Association BDT 150,000 (

19.05.2013)

3.3.2 At CRP, Mirpur

DEA (Department of English Alumni), Dhaka Commerce

College: BDT 62,450

Samiha Tasnim Khan: BDT 10,000 (29-05-13)

Page 33: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

3.4 The Comparison of per hour’s Wages and

Salaries:

Bangladesh is the third largest exporter in the world of garments to the U.S. In

2009, Bangladesh shipped $3.41 billion worth of garments to the U.S. The

United States is not trying to steal garment jobs from Bangladesh. In fact, 97

percent of all garments purchased in the U.S. are imports--with Bangladesh as

the third largest supplier. So, the ratio of hourly wages and salaries of garment

workers are remark here.

Country Hourly

Wages

United States $8.25-14.00

United

Kingdom $7.58-9.11

Venezeula $2.73

Costa Rica $2.19

Guatemala $1.21

Colombia $1.20

Honduras $1.02

Philippines $0.94-1.00

China $0.93

Peru $0.92

El Salvador

$0.92

Page 34: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Jordan $0.74

Malaysia $0.73

Nicaragua $0.65

Bahrain $0.57

Thailand $0.56

India $0.55-0.68

Mauritius $0.55-0.65

Vietnam $0.52

Egypt $0.50-0.87

Mexico $0.50-0.53

Sri Lanka $0.46

Pakistan $0.37

Indonesia $0.35

Cambodia $0.24

Bangladesh $0.21

Page 35: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

The collapsing problems of Rana

plaza as well as the main

environmental problems of Garment

workers:

4.1 The reasons for collapsing the building.

4.2 The main environmental problems of garments

workers.

Raw materials.

Unskilled workers.

Improper working environment.

Lack of managerial knowledge.

Gendered division of labour.

Wages.

Insufficient of loan.

Unit labour cost.

Working hours.

Poor accommodation facilities.

Safety Problems.

Political crisis.

Price competitiveness.

Lead time.

Page 36: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

4.1 The reasons for collapsing the building:

Those problems are responsible for collapsing the Rana Plaza at Savar , they are

given below here:

Using of lower level materials.

Used unstable pillars use for the building.

Using the lower pillars for constructing the building.

The problems of building infrastructure.

Keep heavy machines at the building.

The instalment of generators not only on roof top but also the another

floors.

Not to test the soil when was the building constructed.

Do not use the proper drawing map when was the building constructed.

Keep excess raw-materials in different floors at the building.

Stay excess workers in different floors at the building.

In spite of crashing the wall not to take proper steps.

The over confidence of the owner of the building.

Giving the error decision for foundation recognition.

Using political extortion for constructing the building illegally.

Not to build for facing earthquake

Make the building on a abandon pond by filing soil.

Lack of ethics to build the building.

Page 37: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

4.2 The main environmental problems of

garments workers:

Which the main environmental problems of garment workers is become a

common phenomenon these are given below:

Raw materials.

Unskilled workers.

Improper working environment.

Lack of managerial knowledge.

Gendered division of labour.

Wages.

Insufficient of loan.

Unit labour cost.

Working hours.

Poor accommodation facilities.

Safety Problems.

Political crisis.

Price competitiveness.

Lead time.

Raw materials:-

Bangladesh imports raw materials for garments like cotton, thread colour

etc. This dependence on raw materials hampers the development of

garments industry. Moreover, foreign suppliers often supply low quality

materials, which result in low quality products.

Unskilled workers:-

Most of the illiterate women workers employed in garments are unskilled

and so their products often become lower in quality.

Page 38: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Improper working environment:-

Taking the advantages of workers' poverty and ignorance the owners

forced them to work in unsafe and unhealthy work place overcrowded

with workers beyond capacity of the factory floor and improper

ventilation.

Most of the garment factories in our country lack the basic amenities

where our garment workers sweat their brows from morning to evening to

earn our countries the major portion of our foreign exchange. Anybody

visiting the factory the first impression he or she will have that these

workers are in a roost.

Improper ventilation, stuffy situation, filthy rooms are the characteristics

of the majority of our factories. The owners profit are the first priority

and this attitude has gone to such an extent that they do not care about

their lives.

Lack of managerial knowledge:-

There are some other problems which are associated with this sector.

Those are- lack of marketing tactics, absence of easily on-hand middle

management, a small number of manufacturing methods, lack of training

organizations for industrial workers, supervisors and managers, autocratic

approach of nearly all the investors, fewer process units for textiles and

garments, sluggish backward or forward blending procedure, incompetent

ports, entry/exit complicated and loading/unloading takes much time,

time-consuming custom clearance etc.

Page 39: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Gendered division of labour:-

In the garment industry in Bangladesh, tasks are allocated largely on the

basis of gender. This determines many of the working conditions of

women workers. All the workers in the sewing section are women, while

almost all those in the cutting, ironing and finishing sections are men.

Women workers are absorbed in a variety of occupations from cutting,

sewing, inserting buttons, making button holes, checking, cleaning the

threads, ironing, folding, packing and training to supervising.

Women work mainly as helpers, machinists and less frequently, as line

supervisors and quality controllers. There are no female cutting masters.

Men dominate the administrative and management level jobs. Women are

discriminated against in terms of access to higher-paid white collar and

management positions.

When asked why they prefer to employ women foe sewing, the owner

and managers gave several reasons. Most felt that sewing is traditionally

done by women and that women are more patient and more controllable

than men.

Wages:-

The government of Bangladesh sets minimum wages for various

categories of workers. According of Minimum Wage Ordinance 1994,

apprentices’ helpers are to receive Tk500 and Tk930 per month

respectively. Apprentices are helpers who have been working in the

garment industry for less than three months. After three months,

Apprentices are appointed as helpers. Often female helpers are

discriminated against in terms of wages levels, and these wages are also

Page 40: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

often fixed far below the minimum wage rate. A survey conducted in

1998 showed that 73% of female helpers, as opposed to 15% of their

male counterparts, did not receive even the minimum wage.

Insufficient of loan:-

Insufficiency of loan in time, uncertainly of electricity, delay in getting

materials, lack of communication, problem in taxes etc. Often obstruct

the industry. In the world market 115 to 120 items of dress are in demand

where as Bangladesh supplies only ten to twelve items of garments. India,

south Korea, Hong Kong, Singapore, Thailand, Taiwan etc, have made

remarkable progress in garments industries. Bangladesh is going to

challenge the garments of those countries in the world market.

Unit labour cost:-

Bangladesh has the cheapest unit labour cost in South Asia. It costs only

11 cents to produce a shirt in Bangladesh, whereas it costs 79 cents in Sri

Lanka and 26 cents in India. Clearly, Bangladesh’s comparative

advantage lies in having the cheapest unit labour cost.

Working hours:-

Though the wages are low, the working hours are very long. The RMG

factories claim to operate one eight-hour shift six days a week. The 1965

factory Act allows women to work delivery deadlines; however, women

are virtually compelled to work after 8 o’clock. Sometimes they work

until 3 o’clock in the morning and report back to start work again five

hours later at 8 o’clock. They are asked to work whole months at a time

Page 41: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

the Factory Act, which stipulates that no employee should work more

than ten days consecutively without a break.

Poor accommodation facilities:-

As most of the garment workers come from the poor family and comes

from the remote areas and they have to attend to the duties on time, these

workers have to hire a room near the factory where four to five huddle in

a room and spend life in sub human condition.

For four to five workers there is one common latrine and a kitchen for

which they have to pay from Tk=2000 to Tk=2500/-.They share this

amount among themselves to minimize the accommodation expense.

One cannot believe their eyes in what horrible condition they have to pass

out their time after almost whole day of hard work in the factory. After

laborious job they come into their roost, cook their food and have their

dinner or lunch in unhygienic floor or bed and sleep where they take their

food. They share the single bed or sleep on the floor.

The owners of these factories must not treat the workers as animals. The

owners of these factories who drive the most luxurious car and live in

most luxurious house do ever think that these are the workers who have

made their living so juicy. Will these selfish owners ever think of these

workers of their better living for the sake of humanity by providing better

accommodation for these workers in addition to providing with the job.

Page 42: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Safety Problems:-

Because of the carelessness of the factory management and for their

arrogance factory doors used to be kept locked for security reason

defying act

Safety need for the worker is mandatory to maintain in all the

organization. But without the facility of this necessary product a lot of

accident is occur incurred every year in most of the company. Some

important cause of the accident are given below-

Machine layout is often staggered

Lack of signage for escape route

No provision for emergency lighting

Doors, opening along escape routes, are not fire resistant

Doors are not self-closing and often do not open along the

direction of escape

Adequate doors as well as adequate staircases are not provided to

aid quick exit

Fire exit or emergency staircase lacks proper maintenance

Lack of proper exit route to reach the place of safety

Parked vehicles, goods and rubbish on the outside of the building

obstruct exits to the open air

Fire in a Bangladesh factory is likely to spread quickly because the

principle of compartmentalization is practiced.

Political crisis:-

Garments industries often pay dearly for political unrest, hartal and

terrorism etc.

The international market has withdrawn quota advantage over garments

export form Bangladesh since December 2005.

Page 43: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Bangladesh has to advance cautiously for getting better position of her

garments in the world market. Finally destruction of twin tower in 11

September 2001. invasion on Afghanistan and Iraq and depression in

world Economy have seriously affected the export trade of Bangladesh.

Price competitiveness:-

China and some other competitors of Bangladesh have implemented

sharp price-cutting policies in exporting garment products over the last

few years, but Bangladesh has failed to respond effectively to such

policies. China was able to drop the export price of 29 garment categories

by 46 per cent on average in the United States within a year, from $6.23

per sq metre in December 2001 to $3.37 per sq metre in December 2002.

Bangladesh needs to respond to such price-cutting policies of its rivals in

order to remain competitive in the quota-free global market.

Lead time:-

Lead time refers to the time required for supplying the ordered garment

products after the export order has been received.

In the 1980s, the usual lead time in the garment industry was 120-150

days for the main garment supplier countries of the world; it has been

reduced to 30-40 days in the current decade.

However, in this regard the Bangladesh RMG industry has improved

little; for example, the average lead time is 90-120 days for woven

Page 44: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

garment firms and 60-80 days for knit garment firms. In China, the

average lead time is 40-60 days and 50-60 days for woven and knit

products respectively; in India, it is 50-70 days and 60-70 days for the

same products respectively.

Bangladesh should improve its average lead time to compete in the

international market.

Page 45: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

The Threats and effects on Economy

in Bangladesh:

5.1 The Threats on Economy in Bangladesh.

5.2 The Effects on Economy in Bangladesh.

5.3 GSP opportunities.

Page 46: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

5.1 The Threats on Economy in Bangladesh.

It is known to all that Bangladesh is a developing country. So collapsing Rana

plaza is a massive threat for the Economy in Bangladesh. As the collapsing

building is interacted with garments industry so our national Economy can be

lag behind from the present circumstances. Which threats and effects can be

fallen on Economy in Bangladesh these are remarkable:-

The image of Bangladesh can be destroyed.

Foreign Buyers can be changed their opinion against

Bangladesh garment sector.

Trustworthiness can be hampered.

Demand of Bangladeshi Product can be minimized.

Garments industry can be knocked at the destruction.

Unemployment tendency can be increased.

Garments industry can be demolished in future.

The life style of public people of our country can be changed into

bad circumstances from this Economic effects.

The improvement of our country can be stopped.

The industrialization of our country can be fallen down by turns

such as an unexpectable tragedy.

The international relation between our country between European

Union can be divided in differentiation.

It Can be hampered to the universal brotherhood.

It can be influenced Globalization.

The reputation of our country can be hampered.

it can be created political gap among the political parties.

It can be allowed not stuck vehicles alerts.

Page 47: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

For such a tragedy striking probability of personnel of garment

industries can be increased.

5.2 The Effects on Economy in Bangladesh.

The overall Socio-Economic condition of our country can be

damaged.

Bangladesh can be deprived of GSP facilities from the USA.

Production can be declined.

Products good quality can be ruined.

Foreign Currency can be declined.

Revenue target can be missed.

It Can be made loss that profit.

Economic increasing velocity can be gradually declined.

It can be money inflation

GDP growth rate can be minimized.

The tendency of poverty can be maximized day by day.

Financial aids from reputed organizations like World Bank,(IMF)

International Monetary Fund can stop their aids to our Economy.

Page 48: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

5.3 GSP opportunities:-

The Generalized System of Preferences (GSP) opportunities which is derived

from the United States of America and that is also exportable opportunity. GSP

opportunity has been stopped preliminary for the worlds stress. It is known to

all that GSP opportunity keeps a great contribution on the Economy of

Bangladesh. It has already impacted on our national Economy. For stopping the

GSP opportunity our Economy can be the running velocity than before.

Basically the United States has stopped the GSP opportunity not for containing

in our garment sectors such as, lack of better environment, lack of the proper

distribution of Wages and Salaries, want of sufficient vacation, forcing to work,

lack of allowances, lack of transaction facilities etc. are the main provisions

regarding GSP stopping. If the GSP opportunity is not get back it can

negative impact on our national Economy in Bangladesh. Our country will lag

behind in garment sectors. So it should be adopted proper step to resume back

the GSP opportunity.

The USA suspended the Generalized System of Preferences (GSP) facilities on

the entrance of Bangladeshi product into the US market which has created lack

drop in our economy. Because of this suspension each and every Bangladeshi is

very upset. The USA is our long outstanding partner of development. In fact,

there was no such kind of GSP facilities in garments sector in the USA.. It is

unfortunate that, they have brought into consideration the accident of Savar

Rana Plaza, Tazrin Fashion, unsolved case of Aminul murder case. Since 2007,

the biggest labor union of the USA, AFL- CIO has been persuading the USA to

stop the GSP facilities for Bangladesh. The New York Times (July 25, 2013)

writers "Bangladeshi garment industry`s trade group has seen its influence soar

as the country has become a global garment power". Meanwhile, US

congressman Sander Levin visited in Bangladesh to assess the progress of

Page 49: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

workers safety and socio economic condition of the country.

Next GSP hearing will be on December as commented by USA envoy Dan W.

Mozena. On July 19, the US government made public an action plan outlining

measures to protect workers’ rights and address those in a meaningful way. On

the basis of this action plan, the United States looks forward to working on the

actions with Bangladesh it needs to take in relation to potential reinstatement of

GSP benefit.Eilen O’ Kane Tausher has been appointed as an independent

chair of the North American Alliance platform of US based retailers for

Bangladesh worker safety.

Though with the GSP facilities almost 4800 products of Bangladesh can enter

into the US market without paying duty, the garments sector does not enjoy this

facility. Recently, the man-made tragedy of Savar Rana Plaza is certainly an

unfortunate event for Bangladesh. We come to know about the ill interest of a

particular class of people ignoring the established rules and regulations. Due to

this tragedy, almost, 1130 people died a tragic death and almost 200 people got

severely injured. The tendency of ignoring the law of the country by some

particular class of people is responsible for Savar Rana Plaza tragedy. When a

country turns into a developed country from a developing country, there is

exploitation and deprivation of labor, although it is not accepted at all.History

showed in every country such type of incidents during the industrial reversal.

Not only Rana Plaza but also many buildings of every corner of Bangladesh

including Dhaka city have been built without following design, even those are

built without the permission of concerned authority, many people change and

expand the design of the buildings without feeling any hesitation.On the other

hand, according to the rule of load management, it is said that when a building

is made with 10,000 people load capacity; only 6000 people can work there.

Page 50: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

The building must be checked by a structural engineer if any type of crack is

found. We can`t only depend on government only for that, rather we have to

take private initiatives and obey ethical values to avoid such type of

accidents.At the same time, I would like to invite NGOs to come forward for

rehabilitation of the victim workers. Bangladesh Army has done a praiseworthy

job finishing the rescue job skillfully. Certainly it can never be expected that

again and again the laborers will become the victims of such kind of accidents.

. If the GSP opportunity is not get back it can negative impact on our national

Economy in Bangladesh. Our country will lag behind in garment sectors. So it

should be adopted proper step to resume back the GSP opportunity. On the

other hands, it will be happen an unthinkable revolution in garment sectors. As

soon as possible the Government should take necessary steps so that our country

does not bereft of GSP opportunity from the United States.

Page 51: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

The SWOT analysis and Findings:-

6.1 SWOT analysis.

6.2 Findings.

6.3 Questionnaires.

Page 52: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

6.1 SWOT Analysis:-

strengths:-

1. Suitable place for rescuing operations.

2. The unity of the all level people.

3. Capable to quick action taken

4. Rescuing operations by all people in a body.

Weaknesses:-

1. Using lower raw-Materials.

2. Keeping heavy machines at different floors at the building.

3. Lack of rescuing instrument.

4. Using unstable pillars.

5. Political instability.

Opportunities:-

1. The participation of various armed forces as well as the local people.

2. Location of collapsing building which is near the highway road.

3. The assistance from another country.

4. The assistance for rescuing instrument.

5. Good outlook to create awareness.

Page 53: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Threats:-

1. Strike hartal and political instability.

2. Economics slow down.

3. Growing doubt about the garment industries.

4. Changing buyers needs.

5. It can be destroyed the demand of Bangladeshi garment products.

6. People can be demotiveted.

7. The tendency of workers can be declined.

8. They can’t certainty.

Page 54: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

6.2 Findings:-

1. The problems of building infrastructure.

2. Using of lower level law-materials.

3. Keep heavy machines at the building.

4. Using of unstable pillars for the building.

5. In spite of its legal foundation, it is constructed with several floors.

6. Keep excess raw-materials at the different floors.

7. Not to test the soil when the building was constructed.

8. Make the building on an abandon pond by filling soil

9. The installment of the generators had not only on the roof tops but also

the another floors.

10. Stay excess workers in different floors at the building.

11. Not to build for facing the earthquakes.

12. lack of ethics.

Page 55: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

6.3 Questionnaires:-

1. Should the government take proper steps for stopping such types of tragedy ?.

Yes

No

2. Should the government as well as the BGMEA investigate about the tragedy

?.

Yes

No

3. Should we raise awareness among the whole people ?.

Yes

No

4. What should we do for the tragedy? Will we a vital role ?.

Yes

No

5. Besides the rescue aids, should we provide the food-stuffs for the victims ?

Yes

No

6. Ought the government to impose proper instruction by RAZUK for

constructing building ?.

Yes

No

7. As a large sum of foreign currency come from abroad, so should the

government as well as the BGMEA take proper steps for paying the proper

Wages and Salaries?.

Page 56: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

Yes

No

8. Should the garments industries provide moderate atmosphere for the workers

?

Yes

No

9. Should the government as well as BGMEA provide the transportation, and

Others opportunities?.

Yes

No

10. Should the workers become self- fluent for getting their rights ?.

Yes

No

Page 57: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

\

Recommendation and Conclusion

7.1 Recommendation

7.2 Conclusion

7.3 References

Page 58: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

7.1 Recommendations:-

01. Government should take an effective measures to stop such kind of

tragedy.

02. At present our countries economy is fully dependent on readymade

garment industry so the government should provide proper opportunity

for the garment workers.

03. The government should investigate on this matter so that such kind of

tragedy not to happen in future.

04. BGMEA should provide the proper wages and salaries to the garments

workers.

05. RAZUK should not approve such types of unplanned drawing building

structure.

06. By the government as well as the private sector (BGMEA) should take

proper steps to control such kind of tragedy.

07. The government and private sector (BGMEA) should develop

professional management especially for our garments industry.

08. The Government as well as the private sector (BGMEA) should also

provide the allowance opportunity for the garment workers.

09. As garment industry takes a unavoidable role in our national Economy

so the government should provide proper recognition as the workers.

10. If its become possible besides allowance opportunity, residential

opportunity, transportation opportunity, should be provided.

Page 59: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

7.2 Conclusion:-

The Rana plaza collapsing is the greatest tragedy in the national history of

Bangladesh. Now it is known to all the worlds people about what has happened

on that day. On that day there are many people died unexpectedly and about

2,500 injured people are rescued from the collapsing building. The armed forces

as well as the public local people participated to rescue those people alive. It

was the day which is intolerable. In fine it can be said that the government as

well as the private sector (BGMEA) Should take proper steps to control such

kind of tragedy.

Page 60: “The Collapsing reasons of Rana Plaza as well as the effects and threats on Economy in Bangladesh”

7.3 References:-

Websites:-

www.wikipedia.com

www.assignment.com

Daily Newspapers:-

The Economist

BBC News

The Daily Stars