Is globalization actually good for Dhaka, Bangladesh?

By the definition globalization represents the increased mobility of goods, services, labour, technology and capital throughout the world.  Translational corporations produce and process variety of merchandise in different countries, and then sell them to consumers all around the world. This process supports the movement of money, progresses the exchange of knowledge, ideas, cultures, and so on.

Bangladesh is known to be one of the poorest countries in the world. Dhaka’s citizen’s struggle with poverty and hunger, however, globalization offers them more freedom to fight these problems.  Nowadays, Bangladesh is becoming a more modern country after opening its borders to free trade, investment, and allowing foreign companies to enter into its market.  Globalization helps to demolish international borders, and it also increases competition among worldwide trade. Globalization also has an enormous impact on the culture and social life. For example, MacDonald’s introduced American fast food to other parts of the world. The history of Bangladesh states that colonial rule was holding Bangladesh back from its development. Both Britain and Pakistan ruled Bangladesh for 200 years and 23 years respectively, and they have used their power to exploit the Bangladeshi people, when there was no democracy or freedom. This kept Bangladesh from developing as significantly as the rest of the world. Nevertheless, the independence of Bangladesh in 1971 gave the opportunity to Dhaka to share ideas with other countries. Globalization is increasing the living standards of poor people in Dhaka, Bangladesh. Industries from foreign investments generate employment opportunities for a huge quantity of people including young women who can now enter the male dominated industries. Foreign investment creates 10,000 new jobs every year in Bangladesh, which results in an increase of living standards. Conversely, foreign investments create high paying jobs, which require additional knowledge and skills, hence motivating people to achieve higher education, in order, to increasing their income. Advertisements for foreign produces also encourage people in Dhaka because when individuals watch commercials for high-priced foreign products, they want to buy them even if they don’t have enough money.

 Dhaka, Bangladesh has largely benefited from the transfer of technology, which resulted from foreign investments. For example, a telephone company that had been monopolizing mobile telecommunication services since 1992 was diminished by the global movement. At that time only a few people were able to use it, for it was incredibly expensive and their services were below average. They also provided very few jobs in that sector. When some other foreign companies entered market of Bangladesh, the monopolist company lost its power. Now the competitive activity of many telephone companies has increased competition, people’s income levels, and employment opportunities, which in turn has substantially reduced poverty. Modern telecommunication technology connected Bangladesh to the rest of the world. Globalization has made a big social and economic change in Bangladesh. There can be no doubt that the result of globalization in Bangladesh has been positive.  

Unfortunately, there is also another side to the globalization in Dhaka. Poverty and mass migration from farms to the city have been made even worse by environmental degradation brought on by economic development. With one of the lowest per-capita incomes in the world, half of Bangladesh’s population lives below the poverty line. Bangladesh poses only 3 percent share of the total trade between India and Bangladesh. Bangladesh is moving in right direction but needs to improve the environment to attract foreign direct investment which is crucial for scaling up the country’s development. Many US retail companies, including Nike, The Gap, Wal-Mart and Disney have their sweatshop factories in Dhaka, Bangladesh.

There are over  3000 of factories producing garments for export in Bangladesh.2 Some people see this as a rather possitive factor because this creates an expansion of particular industry. Employment levels today have risen a lot, but what has been the impact of such industrialisation on workers ? Many young women in Bangladesh are forced to work for 12h, seven days a week, and are paid just 9 cents to 20 cents an hour, denied health care, and will be fired for daring to complain or ask for their rights. At the Beximco factory in the Dhaka there are 1,000 workers, at least 80 percent of them young women, sewing shirts and pants for Wal-Mart and other retailers. Beximco is a sweatshop, where human rights are systematically violated. Wal-Mart and its contractor pay no taxes to sew their garments in the Dhaka. All that they leave behind is the illegal 20-cent an hour wages and some small rent and fees. In 1998, total government revenues in Bangladesh were around $3.9 billion, a sum far too low to even provide the most basic services to the over 130 million people in the country. On the other hand, Wal-Mart’s sales in 1998 amounted to $137.6 billion, which means that Wal-Mart’s annual sales are 36 times greater than the total revenues of the Bangladeshi government. Yet Wal-Mart does not pay a single cent in taxes or tariffs. Unfortunately, Bangladesh, one of the poorest nations in the world, is being forced to subsidize Wal-Mart. Due to inadequate tax base and overall low government revenues, Bangladesh must rely upon foreign aid to meet more than one-half of its entire development budgets. In 1998, Bangladesh exported 732 million garments to the U.S., making Bangladesh the 5th largest exporter worldwide of apparel to the United States.