Crude economic theory accepts labour as an input in production, but human beings are not production materials and the misuse of labour force must be a great concern for everyone. Let us cite an example of the magnitude of our mistake from the following argument:

How much should a T-shirt cost? Of course, that depends on who sells it. China sells a T-shirt for 40 cents or even less when she badly needs foreign currency. She can do it as she has her own cotton and vast resources to support the production and sale of any item at any given price when the country needs dollars. One can consider it just a way of adjusting the situation. Bangladesh, however, is not China, and she has no cotton or excess resources to support the production and sale of this item below the reasonable production cost.

A normal basic T-shirt from Bangladesh costs about US $1.10 US $1.50 apiece depending on the country she exports and the quality and the quantity of the product demanded by the buyer. How much does it cost to produce such a T-shirt? Surely much more than a rational export price could suggest. The government's export subsidy is often the only gain or source of profit of a Bangladeshi exporter when he exports to a big European or North American company.

The big foreign companies import from Bangladesh not because they love to see poor people improving their lots but because it is cheap. The fact is so simple. Foreign buyers often squeeze prices as low as below the production costs. Then again these foreign buyers need not pay any import duty (generally 12.5 percent) when they import garments from Bangladesh and other poor less developing countries with GSP.

So, why do we engage in such a nonsense business under such circumstances that is no good for us? Well, because it was the only easy business the Bangladeshi entrepreneurs could engage themselves in with borrowing money from the national Banks. No doubt that the total investment over two decades in this sector has been huge at the cost of other sectors in which we needed no foreign buyers. We never critically examine the long run cost-benefit of doing business in the garment sector. We thought about only how quickly we could get a little money. This industry has seriously damaged our canals, rivers and our environment at large. The news that some 50 workers in the garment factory recently lost their jobs have committed suicide in Gazipur district over the last five months is frightening. The workers in this sector cannot expect any mercy either from their employers or from the foreign buyers. The employers can employ them only when they have foreign orders. And foreign orders can come only when we can keep our prices highly competitive and deliver quality goods in perfect order maintaining specified workmanship and delivery schedule that foreign buyers demand.

Is it possible to compete and win the race? Well, it was somehow possible when there were quota restriction for export to Europe and North America for China, India and many other developing countries. Exports from Bangladesh and other least developing countries, were quota free and GSP certificate used to make Bangladeshi goods (and other less developing countries) cheaper for foreign importers. Soon there will be no quota restrictions, and how Bangladesh can survive in such a situation is a great question. It is high time the entrepreneurs of this sector and the government consider the question very seriously. Most probably, it is high time Bangladesh dismantles the garment industry slowly and systematically. The pain could be considerable but what else we can do! We need a new investment policy immediately to find out new sectors for investment. Co-operations, consultations and mutual understanding between the entrepreneurs, government and labour leaders must engage fruitful discussion now and we must invest our limited resources in producing goods for which we have a safe market.

Tayeb Husain writes from the University of Lund, Sweden.