OVERVIEW OF THE BANGLADESHI ECONOMY:

Bangladesh is a tropical country in South Asia that is situated in the delta of two major rivers that flow down from the Himalayas (the Ganges and the Jamuna). The countrys land surface is therefore largely composed of alluvial silt, rendering the soil highly fertile. Historically, this has made Bangladesh an agricultural nation; although agriculture contributes only about a fifth of the national GDP, it employs three-fifths of the labor force (ADB, 2005). Bangladesh has an estimated population of 140 million (circa 2005), living in an area of about 55,000 square miles. It thus has the unwanted distinction of being the worlds most densely populated country, and this overpopulation is at the root of many of Bangladeshs socioeconomic problems. However, the population is largely homogeneous in terms of ethnicity, language, and religion, and this provides a valuable element of national cohesion. In spite of numerous constraints, the economy has been on a steady growth path for the last 15 years, mainly due to private sector dynamism. The constraints include pervasive political instability and violence, endemic corruption and disregard for the law, frequent natural disasters, inefficient state-owned enterprises that are hotbeds of trade unionism, lack of political will to carry through necessary economic reform, inadequate infrastructure at all levels (power generation, roads and highways, port facilities), etc. Nevertheless, the economy has proved to be resilient. Since 1990, it has grown at an average rate of 5% per year. The Asian Development Bank projects that real GDP growth will increase to 6% in 2006 and 2007 (ADB, 2005). Bangladeshs total GDP stood at $275 billion in 2004, and per capita GDP was $2,000 (adjusted for purchasing power).

Sectorally, services constitute the largest portion of GDP with 51.7%. Industry accounts for 27.1% and agriculture 21.2%. However, the distribution of the labor force is reversed, with most people still working in agriculture (61%), and followed by services (27%) and finally industry (12%). This imbalance between output and employment is indicative of a large amount of disguised unemployment and underemployment. Unemployment (including underemployment) is estimated to be about 40%. The poverty rate, as of 2004, is about 45%. As shown by the above table, merchandise exports have been growing strongly in recent years and this trend is set to continue. While imports also exhibit strong growth, it should be noted that the bulk of imports consists of inputs into the production process, e.g. machinery and equipment, fuel and petroleum products, chemicals, iron and steel, cement, fabric and accessories (for garments production), etc. The breakdown of various exports by sector is given in the table overleaf (Bangladesh Bank, 2005). The figures are for the 2003-2004 fiscal year.

Bangladesh textile industry:

While agriculture for domestic consumption is Bangladeshs largest employment sector, the money gained from exporting textiles is the single greatest source of economic growth in Bangladesh. Exports of textiles, clothing, and ready-made garments accounted for 77% of Bangladeshs total merchandise exports in 2002. Only 5% of textile factories are owned by foreign investors, with most of the production being controlled by families or Bangladeshi companies

Immediately after the founding of Bangladesh, tea and jute were the most export-oriented sectors. But with the constant threat of flooding, declining jute fiber prices and a significant decrease in world demand, the contribution of the jute sector to the countrys economy has deteriorated. The garment industry in Bangladesh became the main export sector and a major source of foreign exchange starting in 1980, and exported about $5 billion USD in 2002. The industry employs about 3 million workers of whom 90% are women. Two non-market factors have played a crucial role in ensuring the garment sectors continual success namely (a) quotas under Multi- Fibre Arrangement1 (MFA) in the North American market and (b) preferential market access to European markets.
Textiles have been an extremely important part of Bangladesh's economy for a very long time for a number of reasons. The textile industry is concerned with meeting the demand for clothing, which is a basic necessity of life. It is an industry that is more labor intensive than any other in Bangladesh, and thus plays a critical role in providing employment for people. Currently, the textile industry accounts for 45% of all industrial employment in the country and contributes 5% of the total national income. However, although the industry is one of the largest in Bangladesh and is still expanding, it faces serious problems, principally because the country does not produce enough of the raw materials necessary, unfavorable trade policies, and inadequate incentives for expansion. As a result, Bangladesh's textile industry relies heavily on imports, and the country does not earn as much foreign exchange from its textile industry as it should.

History of the Textile Industry in Bangladesh:

Traditionally, artisans working in small groups, in what are often referred to as cottage industries, produced most of the textile in the sub-continent. There were many such artisans in the area that was to become Bangladesh. In fact, from prehistoric times until the Industrial Revolution in the eighteenth century, East Bengal was self-sufficient in textiles. Its people produced Muslin, Jamdani, and various cotton and silk fabrics. These were all well regarded even beyond the region as they were manufactured by very skilled craftsmen. The material produced by the artisans of Bengal started facing vigorous competition beginning in the eighteenth century after the growth of mechanized textile mills in the English Midlands. This eventually led to a great decline in the number of Bengali workers skilled enough to produce such high quality fabrics. According to popularly held beliefs, as the region's spinners and weavers meant competition for their emerging textile industry, the British imperialists responded by trying to force the artisans to stop production. They were said to have sometimes used methods as harsh as cutting off the thumbs of the craftsmen so they would never be able to spin or weave again. Not only were huge amounts of fabric produced in Bengal, the area was also a prime producer of the indigo plant, from which the indigo dye was extracted. This natural dye was widely used before the advent of chemical dyes in the nineteenth century. In fact, the rich blue color provided by the dye is still sometimes used for dyeing denim. Bengali dye masters had special recipes for producing the desired colors, just as chefs have recipes for achieving desired flavors. However, as was the case with the traditional handloom fabrics, indigo dye production also gradually declined. The problems of the indigo industry were principally a result of two factors. First, because indigo was a cash crop, the British administrators in this part of the empire forced farmers to grow the indigo plant in order to increase the administrators' profits. Unfortunately, the indigo plant is nitrogen depleting and thus exhausted the soil very quickly. The farmers received little real income from the crop since the British kept most of the profits, and in times of economic hardship, such as when the indigo price fell, they were unable to survive by eating their produce, unlike farmers who grew staples such as rice or wheat. Another reason for indigo's gradual disappearance as a dye stuff was the unpredictable nature of the plant. Sometimes one farmer would have a good harvest, while his neighbor would not be able to produce anything. The combination of poor yields and the unpredictability of the crop gradually led farmers to cease growing the plant and moving on to other, more profitable crops. The fabric produced and dyed in British factories flooded the Indian markets. In time, its importation became one of the points of contention in the growing Independence Movement of the Sub-Continent. As separation from Great Britain was becoming a foreseeable reality and local production again profitable, the textile industry was reorganized as new methods of production were adopted. Water, a necessity for the chemical processes involved in processing the modern dyes now used, was abundant in East Bengal. This contributed to the establishment of mechanized textile factories in the area. However, after 1947 and the partition of East and West Pakistan from India, most of the capital and resources of Pakistan came under the control of West Pakistanis. The textile industry thus stagnated in East Pakistan as momentum for development shifted from the eastern part of the country to the west. The west also grew more cotton than the east, which was used as a plea for developing the industry in the west instead of in the east. The majority of all industries in the east were also owned by West Pakistani industrialists. When Bangladesh gained its independence from Pakistan in 1971, the new government nationalized the

textile industry, as it did with many other businesses in which West Pakistanis had been the principal owners. Although there were some Bangladeshi industrialists, they did not form a large or politically powerful group and thus had to surrender control of their factories to the government as well. All of the country's textile factories were then nationalized and organized under the Bangladesh Textile Mills Corporation, or BTMC. The industry remained under the control of the BTMC until 1982-83. Bureaucratic obstacles combined with other problems such as low productivity in the labor force, lack of planning, indiscipline, lack of accountability, and poor machine maintenance and operation resulted in a lack of profits. The government thus gradually denationalized the production of textiles. Factories were privatized, beginning with the dyeing and weaving units. Since that time, much of the industry has been privatized through auctions and other means. The textile industry has been the catalyst for industrialization in numerous countries. For example, in England, the Industrial Revolution with the new development in coal and steel led to the establishment of a mass textile industry, which catalyzed the industrialization process in the eighteenth century. Similarly textiles played a major role in the industrialization of Japan, South Korea, Taiwan, Hong Kong, and Indonesia. The same has been true to a certain degree in this country. After privatization, the quality of the fabrics produced improved significantly, leading to a great increase in the demand for Bangladeshi textiles in both the international market, as well as the export oriented garment industry of Bangladesh. This launched the industry into a period of rapid growth that is continuing at present.

The Current Position of the Textile Industry in Bangladesh:

Today, the textile industry of Bangladesh can be divided into the three main categories: the public sector, handloom sector, and the organized private sector. Each of these sectors has its advantages and disadvantages. Currently, the organized private sector dominates, and is also expanding at the fastest rate. Public Sector: The public sector is that portion of the industry controlled by organizations that are part of the government. The factories in the public sector enjoy certain privileges such as government funding. However, in Bangladesh, factories in the public sector are not well supervised. There are frequent changes in officers, and many of these officials do not have a personal interest in the factory for which they are responsible. In addition, the equipment in this sector is not well maintained, as much of the money allocated for this purpose is not spent as planned, but is wasted through corruption and poor accounting.

Handloom Sector:

The rural group of textile producers includes operators of handlooms and a number of organizations which employ rural women, such as BRAC, or the Bangladesh Rural Advancement Committee. The Handloom industry provides employment for a large segment of the population of Bangladesh. The industry also supplies a large portion of the fabric required by the local market. Factories in this sector are usually well looked after by the owners and are quite productive, considering the equipment available. However, the inferiority of their machinery, mostly due to their narrow width, means that the fabric production is slow, and usually falls short of the quality needed for export.

Private Sector: The most productive of the three categories is the private sector. This, as the term suggests, is made up of those factories owned by companies or entrepreneurs. Since the owners of such factories are directly affected by their performance, they take an active part in planning, decision making, and management. Most of these factories also have machinery that is superior to those in the two other sectors because the owners are well aware of the connection between their equipment and their profits.

LAW REGARDING WELFARE MEASURES:

LEGAL PROVISION REGARDING UNDER LABOR LAW

The purpose of welfare facilities is to build up from the bottom, to control work for people so as to enable them to give their best and to train them to understand their obligation and responsibilities. The Factories Act, 1965, the Plantation Labors Ordinance, 1963, the Mines Act, 1923, the Dock Labors Act, 1934 dealt with the problem of welfare of the industrial workers in the environment of factories, plantation and mines before the legislation of the Bangladesh Labor Act, 2006. Information relating to certain welfare facilities, such as canteen, crches and rest- shelters for industrial workers, is gradually becoming available, at any rate, in respect of factory workers, as the use of new forms prescribed under the Bangladesh Labor Act, 2006 is being enforced. This Act ensures all welfare facilities including first-aid appliance, washing facilities, canteen facilities, shelter or rest rooms and suitable launce room facilities, rooms for children, recreational and educational facilities and house building facilities for daily necessities in tea estate, medical care for newspaper employees and compulsory group insurance. 1. FIRST-AID APPLIANCES Section 89 of the Act ensures for provision of medical facilities for the workers. The section clearly lays down that 1) There shall, in every establishment be provided and maintained, so as to be readily accessible during the working hours, first-aid boxes or almirahs equipped with the prescribed contents.
2) The number of such boxes or almirah shall not be less than one for every fifty workers ordinarily employed in the establishment. 3) All such boxes and almirahs shall be kept in charge of a responsible person who is trained in first-aid treatment and who shall always be available during the working hours of the establishment. 4) A notice shall be affixed in every work-room stating the name of person in charge of the first-aid box or almirah provided in respect of that room and such person shall wear a badge so as to facilitate identification. 5) In every establishment wherein three hundred or more workers are

employed, there shall be provided and maintained and ambulance room or dispensary of the prescribed size containing the prescribed equipment or similar facilities, in the charge of such medical and nursing staff as may be prescribed.

The first-aid boxes or cup-board shall be distinctively marked with a red cross on a white ground and shall contain the following equipment. For factories in which the number of persons employed does not exceed ten or in the case of factories in which mechanical power is not used does not exceed fifty persons, each first-aid box or cupboard shall contain the following equipment-

i) 6 small sterilized dressings, ii) 3 medium size sterilized dressings, iii) 3 large size sterilized dressings, iv) 3 large size sterilized burn dressings, v) 1 (1 oz.)Bottle containing a 2percent alcoholic solution of iodine, vi) 1 (1 oz.) bottle containing rectified spirit, vii) One pair of scissors, viii) One copy of first-aid leaflet, ix) Analgesic tablets, ointment for burns and suitable surgical antiseptic Solutions For factories in which mechanical power is used and in which the number of persons employed exceeds ten but does not exceed fifty, each first-aid box or cup-board shall contain the following equipmenti) 12 small sterilized dressings, ii) 6 medium size sterilized dressings, iii) 6 large size sterilized dressings, iv) 6 large size sterilized burn dressings, v) 6 ( oz.)Packets of sterilized cotton wool, vi) 1 (2 oz.)bottle containing a 2percent alcoholic solution of iodine, vii) 1(2 oz.) bottle containing rectified spirit, viii) 1 roll of adhesive plaster, ix)Tourniquet, x) One pair of scissors, xi) One copy of first-aid leaflet, xii) Analgesic tablets, ointment for burns and suitable surgical antiseptic solutions. For factories employing more than fifty persons, such first-aid box or cup-board shall contain the following equipmenti) 24 small sterilized dressings ii) 12 medium size sterilized dressings, iii) 12 large size sterilized dressings, iv) 12large size sterilized burn dressings v) 12 ( oz.)Packets of sterilized cotton wool, vi) Tourniquet, vii) 1 (4 oz.)Bottle containing a 2percent alcoholic solution of iodine, viii) One pair of scissors, ix)1(4 oz.) bottle containing rectified spirit, x) One copy of first-aid leaflet, xi) 12 (4 inch wide) roller bandages, xii) 12 ( 2 inch wide) roller bandages, xiii) 2 rolls of adhesive plaster, xiv) 6 triangular bandages, xv)2 packets of safety bandages, xvi) 2 packets of safety pins, xvii) A supply of suitable splints, and xviii) Analgesic tablets, ointment for burns and suitable surgical antiseptic solutions 2.

MAINTENANCE OF SAFETY RECORD BOOK

Section 90 of the Bangladesh Labor Act provides that a compulsory safety record book and safety board as prescribed by rules shall be provided and maintained where more than 25 workers works in every establishment. To maintain Safety Record Book is the new provision for the management of welfare facilities.

WASHING FACILITIES

The Bangladesh Labor Act, 2006 has mentioned regulation regarding enough washing facilities. According to section 91(i) in every establishment-s a) Adequate and suitable facilities for washing and bathing shall be provided and maintained for the use of the workers therein. b) Separate and adequately screened facilities shall be provided for the use of male and female workers; and c) Such facilities shall be conveniently accessible and shall be kept clean. The Government may, in respect of any establishment, prescribe standards of adequate and suitable facilities for washing.

CANTEENS
Section 92 of the Act provides that: (1) An adequate canteen shall be provided for the use of workers in any establishment wherein more than one hundred workers are ordinarily employed. (2) The Government may, by rule, provide for (a) The standards in respect of construction, accommodation, furniture and other equipment of the canteen. (b) The constitution of a managing committee for the canteen and representation of the workers in the management of the canteen, (3) The managing committee shall determine the type of foodstuff to be served therein the charges, which may be made therefore.

SHELTERS OR REST ROOM AND LAUNCH ROOM:

Section 93 of the Act states that-

(1) In every establishment wherein more than fifty workers are ordinarily employed, adequate and suitable shelters or rest rooms, and a suitable lunch room with provision for drinking water where workers can eat meals brought by them, shall be provided and maintained foe the use of the workers: Provided that any canteen maintained in accordance with the provisions of section 92 shall be regarded as part of the requirements of this sub-section. Provided further that where lunch room exists, no workers shall eat any food in the Work room. (2) The shelters, rest rooms or lunch rooms provided under subsection (1) shall be sufficiently lighted and ventilated and shall be maintained in a cool and clean condition. (3) In every establishment wherein more than 25 women workers are employed, separate rest rooms shall be provided for male and female workers and where less than 25 female workers work, the portion of the rest room for female workers shall be separated by a curtain.

Analysis of Workers facilities of BEXTEX Ltd.

Bextex Ltd. (the "Company") was incorporated in Bangladesh as a Public Limited Company with limited liability on 8 March 1994 and commenced commercial operation in 1995 and also went into the public issue of shares and debentures in the same year. The shares of the Company are listed in the Dhaka and Chittagong Stock Exchanges of Bangladesh. Bextex Ltd. is the most modern composite mill in the region. Bextex Ltd. has an installed capacity of 288 high-speed air-jet looms in its weaving section and a high-tech dyeing and finishing section with a capacity of 100,000 yards of finished fabric per day. This company is located at the Beximco Industrial Park. Bextex Ltd. has a state of the art composite knit fabric production mill, which serves the growing needs of high-quality knit garments exporters in Bangladesh. The project was set up as a state of the art knit fabric knitting, dyeing and finishing facility. During the year the Company produced and sold high quality of knit fabrics and bringing forth all the latest in hard and soft technologies in knitting, dyeing and finishing of knit fabric. Bextex Ltd. also has cotton and polyester blended yarn-spinning mill, with 122,000 spindles is one of the largest spinning mills of the country. The mill was set up to feed the country's export oriented industries. Bextex Ltd. produces specialized finishes of denim cloth for export in finished as well as cloth only form.

Our Mission:
BEXTEX Ltd. is a full service vendor with strong vertically integrated production facilities as well as creative & analytical capabilities which clearly set us apart from most other South Asian vendors.

Our Vision:
Gain market leadership in high value added apparel in USA & Europe. Use Innovation & Speed as prime drivers, rather than cotton & cheap labor. Dominate these markets in high quality:

Men's, Women's , Children Shirts ( Dress & Casual ) Blouses ( formal & casual ) , Skirts, Jackets Jeans & Casual non - denim bottoms Knitted tops & bottoms

Our Commitment to the Environment:

Our company is very committed to preserve a healthy and pollution-free environment. It has a very efficient waste collection and disposal system. In order to reduce air pollution by exhaust of gas from engine-generators, it maintains a costly plant that uses the exhaust gas to generate steam for chilling unit. Above measures not only help keep the water & air free from pollution but also help save cost of water treatment & air conditioning. Your company uses only AZO-free dyes and is dedicated to ensure a healthy and eco-friendly environment.

Company Profile:
OPERATIONAL HEADQUARTER: FACTORY: DATE OF INCORPORATION: COMMERCIAL PRODUCTION: BUSINESS LINE: LISTING STATUS: STOCK EXCHANGE LISTING: AUTHORIZED CAPITAL IN BDT: PAID UP CAPITAL IN BDT: NUMBER OF SHAREHOLDERS: NUMBER OF Woven LOOMS INSTALLED: NUMBER OF Spindles INSTALLED: NUMBER OF Denim LOOMS INSTALLED: NUMBER OF Circular knit Machine INSTALLED: PRODUCTION CAPACITY: NUMBER OF EMPLOYEES: Beximco Industrial Park, Sarabo Kashimpur, and Gazipur, Bangladesh. Sarabo, Kashimpur, Gazipur 30 May, 1984 1990 Manufacturing and Marketing of Yarn, Woven, knit and Denim Fabrics. Public Listed Company. Dhaka and Chittagong. 3,000 Million Taka 1,882.50 Million Taka 37,929 293 119,520 56 30 28 Million Linear Meters 5,181

Resources employed to fulfill the mission

25 highly qualified designers who travel the world visiting fairs, interfacing with the designers of fashion forward customers and competitive buying from well known fashion outlets 150 people working in sewing room dedicated to design team Dedicated yarn dyeing, warping and washing facilities for design team

Cooperman advanced German networked CAD system

Beximco Partners with Major Retailers & International Brands:

Springfield

VAN Heusen

Calvin Klein

DKNY

Zara

J.C. Penny

Next

IZOD

Arizona

H&M

Geoffory Beene

St. Johns Bay

Mother Care

Arrow

J. Ferrar

Bershka

Kenneth Cole Reaction

Decree

ESPIRIT

CHAPS

Levis

Analysis of Workers facilities of Bextex Ltd.:

Part-1 Safe guard providing for protection of health. There are some provisions for the protection of Health of workers employed in establishments. These provisions have been borrowed form chapter III of the factories act 1965. The provision are1. Cleanliness 2. Ventilation and temperature 3. Dust and fume 4. Disposal of wastes and effluents 5. Artificial humidification 6. Overcrowding 7. Lighting 8. Drinking water 9. Latrines and urinals and 10. Dust Bean and spittoon We are three members in our group. We visited BEXTEX Ltd. Company on 18 th July 2011 for observing how a company provides safe guard for protection of health. Our observations are given below: According to the section 51 of the Bangladesh Labors Act. 2006 every establishment shall be kept clean and free from effluvia arising from any drain and every establishment must be removed first and refuge daily, clean staircases, the floor of work place shall be cleaned of least once in every week by washing and shall be cleaned of least once in every week by washing and shall be painted wall of the partition of work place. As per law, BEXTEX Ltd. Companies provide the arrangement for clean first and refuge daily and they clean floor of the work place in every week.

According to the law, every establishment must provide a ell ventilation and temperature for circulation of fresh air.

As per law, BEXTEX Ltd. Company provides huge number of ventilation in their work place and they keep control temperature of the work room. BEXTEX Ltd. company strongly controlling Dust and fume by reasons of manufacturing process as per to the Bangladesh Labor act-2006. According to the law effective arrangements shall be made in every establishment for disposal of wastes and effluents. As per law BEXTEX Ltd. company has arranged for disposal of wastes and effluents. Every establishment have to maintain artificial humidification on the work place in order to the labor act-2006 and BEXTEX Ltd. company trying to control artificial humidification and they take some steps for fully control of artificial humidification. According to the act-2006, every establishment must provide at least 9.5 cubic metre of space in the establishment and space should be more than 4.25 metre above the level of the floor of the room. As per law BEXTEX Ltd. company provide a large well room for the workers to avoid overcrowding. According to the law, every establishment must be provided sufficient and suitable lighting, natural or artificial or both. As per law BEXTEX Ltd. company provide well lighting system for the workers. According to the law, every establishment effective arrangement shall be made to provide suitable sufficient supply of drinking water and marked Drinking water in Bangla. As per law BEXTEX Ltd. company providing sufficient fresh drinking water but no marked Drinking water in Bangla on the body of the pot. According to the section 59 of the Bangladesh labor act 2006, every establishment must be arranged latrines and urinals facilities and it should be available and separated for both male and female worker. As per law BEXTEX Ltd. company provide latrines and urinals facilities for both male and female workers but in not sufficient/available as for the numbers of workers.

 In every establishment there shall be provided, at convenient places, sufficient number of dust beans and spittoons which shall be maintain in a clean and hygienic condition. As per law, BEXTEX Ltd. company arranges some number of dust beans and spittoons but these are not well constructed.

Part-II
Facilities provided for the workers. According to the Bangladesh labor act-2006, every establishment shall be provided/arranged first aid appliances for the workers. As per law BEXTEX Ltd. company provide a few number of first aid appliances for the workers but these are back dated and these is no trained person is charge who treat the workers. According to the law, every establishment must provide adequate and suitable facilities for washing and bathing for the use of the workers. It must be separated for both male and female workers. As per law BEXTEX Ltd. company provide only a few number of washing room and it in not suitable for the workers. According to the law, every establishment shall be provided adequate number of canteens for the use of the workers where in more than me hundred workers. As per law BEXTEX Ltd. company excellently provide a suitable canteen for the workers. According to the act, every establishment shall be provided adequate and suitable shelters or rest rooms, and a suitable lunch room where workers can eat meals brought by them where in more than fifty workers. As per law BEXTEX Ltd. company provide a suitable shelters or rest room for the workers but it is so small in size.

 According to the act, every establishment shall be provided and maintained a suitable room for the use of children under the age of six years of such women workers and this room shall be adequately lighted, ventilated and maintained in a clean. As per law BEXTEX Ltd. company do not provide any kind of such room for children for the benefit of the female workers.

Conclusion:
While agriculture for domestic consumption is Bangladeshs largest employment sector, the money gained from exporting textiles is the single greatest source of economic growth in Bangladesh. Exports of textiles, clothing, and ready-made garments accounted for 77% of Bangladeshs total merchandise exports in 2002. Only 5% of textile factories are owned by foreign investors, with most of the production being controlled by families or Bangladeshi companies. Immediately after the founding of Bangladesh, tea and jute were the most export-oriented sectors. But with the constant threat of flooding, declining jute fiber prices and a significant decrease in world demand, the contribution of the jute sector to the countrys economy has deteriorated. The garment industry in Bangladesh became the main export sector and a major source of foreign exchange starting in 1980, and exported about $5 billion USD in 2002. The industry employs about 3 million workers of whom 90% are women. Two non-market factors have played a crucial role in ensuring the garment sectors continual success namely (a) quotas under MultiFibre Arrangement1 (MFA) in the North American market and (b) preferential market access to European markets. Textiles have been an extremely important part of Bangladesh's economy for a very long time for a number of reasons. The textile industry is concerned with meeting the demand for clothing, which is a basic necessity of life. It is an industry that is more labor intensive than any other in Bangladesh, and thus plays a critical role in providing employment for people. Currently, the textile industry accounts for 45% of all industrial employment in the country and contributes 5% of the total national income. However, although the industry is one of the largest in Bangladesh and is still expanding, it faces serious problems, principally because the country does not produce enough of the raw materials necessary, unfavorable trade policies, and inadequate incentives for expansion.