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The Impact of Fast Fashion on the Garment Industry in Bangladesh
Research Question: How has the rise of fast fashion affected Bangladesh in terms of the psychological effects on women garment workers and the consequences of the country's short and long term economy?
Focus: Inequality vs. Equality
Subjects: Psychology and Economics
Candidate Number:
Word Count: 3,919
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Table of Contents
Introduction ………………………………………………………………………………….……3
Fast Fashion…………………...…………………………………………………………..………5
Unethical Working Conditions…………………………………………………………….………7
Job Insecurity Transportation ……………………………………………………………….….…8
Sexual Harassment……………………………………………………………………..………….9
Working Conditions…………………………………………………………………………...…10
Economic System…………………………………………………………………………..…….13
Cheap Labor……………………...…………………………………………………………...….14
Short Term vs. Long Term Economy…………………………………………………………….15
Conclusion ……………...…………...……….…….………….……………………….…….....18
Bibliography………………….………………...…...…….………..……………………….……20
Appendix A …………...……………………………………….…..…………….………………23
Appendix B …………...……………………………………….…...……………………………24
Introduction:
By the late seventeenth century in England and the early eighteenth century in the United States, the industrial revolution caused pivotal shifts in how people earned a living. This transition brought usage of the National Market because due to more accessible transportation, many merchants could ship products including clothing efficiently. Also, farmers in the US were given “...new opportunities to transcend a local, subsistence economy and produce commercially for distant markets”. This increased the usage of trading overseas and global markets. In addition, farmers became attracted to Eli Whitney’s cotton gin because this caused unprecedented increases in cotton production. Thus, the production and abundance of supplies met the society’s demand for an abundance of clothing. The speeding up of the fashion industry is what led to fast fashion, which is the quick move of inexpensive designs from catwalk to stores to meet new trends.
As this cycle of fast fashion continues to grow, more fashion designers are unable to keep up with the demands of new clothing. Also due to depreciation, the value of the asset to Western society decreases due to wear and tear because of the cheap labor and cheap material used in mass production. Therefore, the fast fashion industry turns to cheap labor to produce clothes in a fast manner. However, when cheap labor is used the workers are treated unfairly and this has psychological consequences. Also, due to cheap labor the long term economy of Bangladesh will not be sustained.
The research question explains how the global issue of the corruption within the fast fashion industry locally manifests in Bangladesh and causes psychological and economical issues. When looking at this issue through a psychological and economical lens, the inequality of how the workers in Bangladesh are treated in result of fast fashion can be assessed. An interdisciplinary approach provides insight into this topic because the global issue is highlighted. Some of the materials used included online databases that had both reports from a psychological and economic standpoint on the overall state of the workers in Bangladesh. Primary sources and reports were generally used for evidence to support psychological research of how the workers were treated. For instance for the psychology studies, Mehta’s and Begum’s results on the effects of working in a garment factory in Bangladesh were used to support the mistreatment of many workers. Secondary sources were used as a reflection of the economy in Bangladesh and the book, The Economist Book was used for a further look at economic principles. In order to explain the trend of fast fashion the book No Logo by Naomi Klein gave insight into how the society shifted in order to adopt fast fashion. For the references to psychology, the textbook Biological Psychology by James W. Kalat was used.
Fast Fashion
Fast Fashion came about in response to how the society was desiring a constant supply of new clothing. During the mid 1980s, American culture began to shift as more people became consumed with the idea of consuming multiple items instead of quality clothing. This bred fast fashion because consumers chose to be unaware of where and how their clothing was being made. The use of marketing shifted as well in which,“The old paradigm had it that all marketing was selling a product. In the new model, however, the product always takes a back seat to the real product, the brand”. The importance of the brand name to the consumer made the idea of fashion designs obsolete because the brand name represents status. The domination of logos, “...have essentially transformed the clothing on which they appear into empty carriers for the brands they represent”. This transition explains how fast fashion was able to manifest amongst society.
A professor at the IESE Business School in Barcelona, Spain Mart´Ä±nez-de-Albeniz notes that, “the term fast fashion has become ubiquitous and it has been used indiscriminately to describe almost any specialty apparel retailer below a certain price threshold, spanning stores like Old Navy and Chico’s”. Fast fashion surrounds everyone that is involved in society because every person plays an active role in consumerism. Fast fashion has re-invented how consumers buy their clothing and requires a highly responsive supply chain in order to keep up with the current fashion trends. Creative designers and editors are both under pressure to fit the need for fast fashion.
According to Suzy Menkes, journalist of the T magazine, “With the traditional six-month lead time on the delivery of international show content, designer collections can be outpaced by the so-called fast fashion chain”.Therefore, the fast fashion industry turns to cheap labor to produce clothes in a fast manner. However, many of the items produced from cheap labor become obsolete because the fibers are stretched so far that the quality of the clothing deteriorates. Bangladesh is the second largest garment readymade producer and it attracts fast fashion from brands such as Gap, H&M, and Walmart.
Unethical working conditions :
The documentary, The True Cost directed by Andrew Morgan explains the truth behind the fast fashion industry. He looks at the corruption of the fashion industry and how this affects workers in Bangladesh. A factory worker named Shima Akhter cried, “I don’t want anyone wearing anything that is produced with our blood”. The production of this clothing that allows for fast fashion is unethical as these women are clearly suffering. In addition, the workers in Bangladesh do not have basic safety requirements for their workers. For instance, “At least 1,800 garment workers have been killed in factory fires and building collapses in Bangladesh”. The managers of these factories are caught up in the demand of the fast fashion companies and are unable to provide safety for their workers.
Furthermore, the workers in Bangladesh have no freedom of speech or basic human rights to change their working environment. For example, a group of female workers, “...submitted a list of demands and the managers received it….and along with them 30-40 staffers attacked us and beat us up. They used chairs, sticks, and scales and things like scissors to beat us up”. The physical abuse is unacceptable, however the women have no other choice but to go to work because there are no other jobs for them. The fast fashion industry accepts the inhuman treatment because they demand more clothing at cheap rates.
Job Insecurity and Transportation
The Bangladesh Agricultural University Research Center included collaborations from F. Begum, R. N. Ali, M.A. Hossain, and Sonia B. Shahid who conducted a study from three factories in Dhaka, Bangladesh. This study included thirty workers from each factory who voluntarily filled out a survey and participated in an interview about their working conditions. The first study was about wage payment in which according to Table 4 in Appendix A, “60 percent of the female workers reported that they feared dismissal from their jobs”, after being paid after the first week of the month. This condition is one example of mental harassment because the fear of losing their job and being unable to provide for themselves causes a high amount of stress. In addition, this study “estimated that, on an average, a garment workers travels more than 5 kilometers a day on foot”. This is not only physical strenuous but also mentally stressful because the workers constantly stress about attacks by mastans (74.4 percent), by touts (75.6 percent), harassment by police (6.7 percent) which are demonstrated in Table 4.
Sexual Harassment
According to Table 4 in Appendix A, in reference to the garment workers, “...even though only 2 percent of the women spoke out against sexual harassment, close case studies showed that the females were shy to report any harassment because of the stigma associated with sexual harassment in Bangladesh”. This shows how even though many women did not report the sexual abuse, the harassment is still a prevalent issue for garment workers. In Fitzgerald’s study, “women who had experienced high levels of harassment reported the worst job-related and psychological outcomes...women who had experienced a moderate level of harassment (i.e., around the mean SEQ score) also reported significantly worse outcomes than those women who had not been harassed”. The psychological effect that often comes from sexual harassment is is Post Traumatic Stress D because PTSD is “…triggered by a terrifying event”. Also, it has been confirmed that PTSD causes “physical changes to the hippocampus and the medial prefrontal cortex.”
As a result of PTSD, “...the autonomic nervous system is impacted and the brain, as part of the CNS, sends messages through the efferent nerves to the effectors. Different glands are contacted and the sympathetic nervous system, the ‘fight or flight’ response, is triggered”’. In turn, stress hormones such as norepinephrine and Cortisol are released. Both of these hormones are released simultaneously, but Cortisol has a negative effect on the endocrine system by affecting insulin utilization.
Working Conditions
During peak season the workers are required to work overtime. According to Begum’s study, in Table 6 (Appendix B) it shows that out of the 90 workers, 27 of the women have to work 79 to 104 hours overtime and 25 of the workers have to work 105 hours overtime. The amount of overtime work causes psychological pains on the workers such as stress; this “...nonspecific response of the body to any demand made upon it” can be very harmful. Stress often results from the workers unwillingness to work overtime and thus causes job dissatisfaction. In addition, Begum found that longer hours become stressful for married workers because many women “...have to face severe censure for reaching home late at night after finishing the overtime work”. Also, according to War on Want the routine is that, “some workers finishing at 3am only to start again the same morning at 7.30am”. The overtime work and long hours do have psychological effects such as causing sleep deprivation and disrupting the garment workers’ sleep rhythms. Since many garment workers have irregular working patterns they can be considered shift workers. It has been proven that “shift workers almost always causes a circadian rhythm disruption—the internal body clock is at odds with the shift schedule”. According to the social cognitive test called the Emotional Hexagon Test, participants had to look at 30 faces and chose one out of the 6 emotions to match tho the picture. Researchers found that “...sleep deprivation adversely affects the recognition of target expressions involving happiness and sadness, emotions that often relate most strongly to social and affiliative behaviors”. This shows that sleep deprivation can have a negative effect on detecting facial expressions that can weaken their social skills.
Furthermore, the head of the clothing and textile department at the IIS University in Jaipur, India named Rena Mehta represents the health hazards of garment workers through her own surveys. One of her surveys include a random sample of 210 workers from five local garment factories. Mehta collected the data through personal interviews. Mehta reports that “Breathing difficulty is due to dust and loose fibers in the cutting section causing allergies and byssinosis”. This shows that in the factories there is very poor working conditions which causes many health issues that affect the workers’ respiratory system. In addition in the stitching section Mehta found that “Hearing disability was attributed due to noise from the machines and when numbers of sewing machines are compounded it makes the environment noisy for the workers”. These neural issues show how the garment workers are affected psychologically due to hearing and visual damage. When looking at the structure of ears, “Nerve deafness results from damage to the cochlea, the hair cells, or the auditory nerve”(201). Also, in response to the poor lighting fixtures, “visual discomfort can be caused by images in which the spatial, chromatic or temporal features depart from those usually found in nature”. Workers do not have access to a healthy atmosphere. The most common problems were the musculoskeletal disorders because Mehta found, “It affects the body muscles, joints, tendons, ligaments, bones and nerves. The monotonous work lead to increased worker fatigue due to continuous handling of loads, prolonged standing, repetitive movement of both hands and wrists and awkward posture”. Musculoskeletal disorders (MSD) are often caused by psychological effects. For instance, pain from a certain activity alters the workers’ posture and thus puts the workers at further risk for MSD. Also, “psychosocial factors that cause negative stress may cause the workers to develop a sedentary lifestyle”, which contributes to later development of MSD. The fast fashion industry influenced these psychological effects because, fast fashion is what causes the demand of clothing production and is why the garment workers have to work in a faced paced environment. Also, since the main retailers in the fast fashion industry sell their clothes for a very cheap amount, the managers of the factories do not have the money to provide the workers with ethical working conditions.
Economic System
The basic economic system of each country can be measured on the same account. For instance, “According to classical and neo-classical economic theory, economic growth depends on the supply of capital as well as the supply of labor and technology. Developing countries like Bangladesh face capital shortages that put a limit on investment and therefore growth”. The advantage that the fast fashion industry takes from the garment economy in Bangladesh is unfair as a large portion of Bangladesh’s economy is based on the textile industry. This developing country could be in a much better economic state if fast fashion companies such as Zara treated their workers fairly economically.
Fast fashion became easier because many retailers could receive cheap clothing overseas and exploit cheap labor. In reference to Article XX of the Exceptions Clause under the General Agreement on Tariffs and Trade, “ ...the real wage stands as the prime mechanism through which such economic impact would be delivered - producers would in theory reap the benefits of lower labor costs by shirking labor standards” . Article XX itself was designed to prevent countries from obtaining a comparative advantage through extreme forms of cost minimization, but the fast fashion industry violates this.
Cheap Labor within the economy
Fast fashion causes cheap labor in Bangladesh because cheap clothing allows the average American to keep buying more items. The women garment workers in Bangladesh are underpaid because the “Lot of clothes in American stores are made in Bangladesh by workers who earn about $2 a day” (Morgan). This monetary difference between how much a worker earns and the amount the item is sold for is ethically unfair. However, the fast fashion industry is still able to build their business model by using cheap labor as their main tool. For instance, the estimated net worth of Zara is $72.9 billion and thus they are able to pay their workers $10.06 per hour, but this multi - billionaire company only pays the garment workers in Bangladesh $68 per month.
According to Oxfam research reports, “this booming economic growth has not benefited everyone... In Bangladesh, the local minimum wage equates to just 39 Australian cents an hour. In Vietnam it is just 64 cents and in China it is 93 cents” (Oxfam 3). Therefore, the overall minimum wage for garment workers is still well below the minimum wages even with exchange rates. In relation to fast fashion, Victor Martinez-de-Albeniz, found that, “From a management and economics perspective, fast fashion has been the long-awaited realization of ‘lean retailing’ with items produced in small batches and within short lead times”. This shows that the fast fashion industry requires cheap labor because fast fashion has endorsed the system of producing on demand. Since mass consumerism has manifested through the 20th century, the demand for clothing has increased. Under standard economics, in order to keep up with the demand many retailers have increased the supply and have used cheap labor in Bangladesh in order to do so.
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Short Term vs. Long Term Effects of Economy
The use of cheap labor results in short term effects that improve the economy. In Bangladesh, the 2017 GDP is 250 billion, in which due to “the ready-made garment (RMG) sector, the economy has diversified away from an agrarian to a more manufacturing-based economy, supported by abundant low-cost labor”. The ability to have access to cheap labor has allowed Bangladesh to industrialize.
Since 15% of the GDP is due to exports, this means that $38,750,000,000 has resulted from exports. According to the International Monetary Fund, “Garments, the backbone of Bangladesh's industrial sector, accounted for more than 80% of total exports in FY 2016-17”. Therefore, $35,000,000,000 out of 250,000,000,000, which is in response to the growth of the garment industry. The increase of the RMG sector and GDP due to low-cost labor has caused substantial economic growth.
Fast fashion has also allowed for women to be involved in the workforce since, “The 90s also saw a rapid increase in the labor force, supported by an increase in female labor force participation”. This highlights how the increase of jobs from the fast fashion industry has improved the economy in Bangladesh, but this is only a short time effect. However, the improvements of the short term effects of an economy are not sustainable. For instance, cheap labor prevents the ability for social mobility and economic prosperity amongst those living in Bangladesh. When a 14 year old girl named Shima in Dhaka, Bangladesh was asked about her future she said, “‘I’m happy to help my family, but I don’t have dreams...and I will not be returning to school”’. In response to this Bain states, “Her experience points to one of the most pernicious aspects of child labor: It robs’ children of the education they need to succeed, and to improve their families’ economic prospects”. This causes a constant cycle that makes it difficult for young women to continue their education and achieve economic prosperity. However, in order to sustain economic growth it is vital to include, “... prudent spending on health and education with the intent of improving human capital and therefore the quality of the workforce, which is considered to be a key driver of diversification and structural transformation” . In order for Bangladesh to move from a developing country into a developed country their education system must be improved. In return, this will help support their economy because . If Bangladesh’s education system is improved then more women will have the opportunity to be eligible for careers that will support their economy.
In addition Bangladesh’s economic system has an unbalanced trading system. Due to cheap labor the amount of exports in millions of US dollar due to the readymade garment sector is 35,897 while the amount of imports is -49,515, therefore a negative balance of trade is equated for. This means that Bangladesh is getting rid of more items than they are taking in. The marginal gap between the imports and the exports shows Bangladesh is not doing well in the global economy and fails to provide for their people. This lack of balance shows how Bangladesh still has to improve the stability of their economy in order to progress as a country. Also, Fast Fashion retailers abuse Bangladesh’s economy and in doing demand cheap labor; Bangladesh has in turn kept up with the demand and are taking in minimal items for their own people. The long term impact of an unbalanced trading system will result in a worse economy.
Also, the fast fashion system is unpredictable because the fluctuation in economic cycles shows that there is no prediction as to what the demand will be over time, especially when the items are depreciated. For Bangladesh, this could severely damage their economy as much of it is based on the demands of the fast fashion industry. If these demands are to decrease the fast fashion industry will cut their ties with Bangladesh, but this multi - billionaire industry will still continue.
Conclusion:
The limitations of this essay are that insufficient data for the psychological research may have been collected due to flaws within the study. For instance, when the sexual harassment was recorded, it was the incorrect amount because many women felt unsafe reporting that they got sexually harassed. Also, from the managers perspective in Bangladesh it is unclear how the managers are treated by the fast fashion industry because most of the focus is put on how the garment workers are treated. However, knowing how the managers are transferring the information to the workers is important because the managers could be receiving just as intense psychological effects from the demands of fast fashion retailers. Another limitation is in the Economics section as there is no way to show how the long term economy will be affected in the future. However, previous research and trends can be used to justify how cheap labor will not sustain Bangladesh’s long term economy.
Overall, it is shown that the fast fashion industry causes negative psychological and economic consequences on the garment workers in Bangladesh. From a psychological lens, it is seen that the workers have suffered from both mental and physical abuse due to the fast paced environment that is highly demanding, primarily from the fast fashion industries. In addition, from an economic standpoint the income provided by the fast fashion industry does improve the short term economy. However, the long term economy will continue to suffer if a change is not made in how much pay garment workers receive. Also, when looking at the economic state of Bangladesh, it is clear that the workers are not able to provide for themselves or their family.
There are many solutions that everyday consumers can do to help solve this issue. For instance, it is possible for consumers to make their own clothes through either sewing, knitting, or crocheting. Also, it is important to buy clothes from thrift stores or small shops instead of from main - retailers such as H&M, Zara, Target, Forever 21, etc… In order for a change to be seen in the way the fast fashion system runs, more attention must be pointed towards businesses that do use fair trade such as Tree People and the Do Good Shop. When buying a few amounts of expensive clothing stores that are fair trade certified instead of buying a lot of cheap items from main retailers that often become obsolete and require the consumer to buy the item again, there is a change being made to how this corrupt system runs.
In order to help the workers in Bangladesh, more people should join the Fashion Revolution and to put an end to cheap labor and unfair treatment. Even though the rights of women in factories has improved since the Building Collapse in Dhaka of 2013, there still needs to be more improvement revolving around making sure these women are given all human rights both psychologically and economically.
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