February 6, 2006

LABOR ADDS NO VALUE:

Defying predictions, Bangladesh's garment factories thrive: Their exports grew by $500 million last year, despite an unfavorable change in trade law and competition from China (Mahtab Haider, 2/07/06, The Christian Science Monitor)

Garments exports from Bangladesh grew by half a billion dollars last year, with most of the increased sales in the US market. The mass layoffs have not materialized. [...]

"The principal reason we didn't lose out to China as everyone had predicted is because labor in Bangladesh is cheaper than anywhere else in the world," says Tipu Munshi, head of the Bangladesh Garment Manufacturers and Exporters Association.


Which is why rising living standards doom China.

Posted by Orrin Judd at February 6, 2006 7:29 PM
Comments

Lucky for us that, even as China, Bangladesh, etc. raise their standard of living, there will be enough poverty left in the world to insure that cheap, well-made goods are available to us for a very long time to come..

Posted by: erp at February 7, 2006 11:13 AM

i think the point is that china relies on unskilled labor for a large percentage of their GDP, and so will have a hard time raising their standard of living (faster than the rate at which other developing countries raise theirs). this is causing a lot of internal friction as the masses grow impatient for the better life they see all around them.

Posted by: toe at February 7, 2006 3:15 PM
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