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Bangladesh's Leather Industry pp 1–8Cite as

Introduction

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Abstract

This section introduces into the dynamics of global production networks from the perspective of Bangladesh’s little diversified economy. It puts recent disasters such as the collapse of Rana Plaza in April 2013 into a larger perspective of low-cost sourcing strategies of northern multinational companies. Against the backdrop of the garment industry being the central driver of Bangladesh’s economy, the leather sector has been picked as a case study to showcase the coordination of inter-firm linkages in a marginalised but globally integrated industry. This work identifies institutional limitations that constrain competitiveness, points to adaptation strategies of local producers and presents the potential for improvement along the supply chain. Questions are raised as to what enterprises are actively involved in the global leather production network. Different from studies examining trade flows from the Global South to northern consumption markets, this book focuses on power relationships between local lead firms and micro, small and medium-sized enterprises (MSME) supplying and being subcontracted within local production networks. In particular, the conditions under which local MSMEs achieve exports are often overlooked and will be subject to analysis.

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Notes

  1. 1.

    One year after that, 155 global brands and retailers signed the Accord on Fire and Building Safety for their more than 1,000 supplying factories (of approximately 4,500) in Bangladesh (Clean Clothes Campaign 2013).

  2. 2.

    In 2006, it was estimated that 741,000 people were employed directly or indirectly in leather-related industries (GTZ 2006).

  3. 3.

    Bangladesh ranks tenth in livestock (cattle, buffalo, goat, sheep) population (FAO 2014).

  4. 4.

    Commercial leather exporters do not have their own tanneries but rent facilities to produce leather. Low overhead costs have turned them into serious competitors for tanneries providing the full range of tanning to finishing operations.

  5. 5.

    The functionality of effluent treatment plants in India and Pakistan has been criticised as insufficient, while environmental regulation is weakly enforced (Dietsche 2011; Lund-Thomson 2009).

  6. 6.

    For reasons of space and own theoretical considerations, this study will not expand on corporate social responsibility (CSR). For a detailed discussion on CSR, see Campbell (2007), Matten and Moon (2008).

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  1. Humboldt-Universität zu Berlin, Berlin, Germany

    Joseph Strasser

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  1. Joseph Strasser
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Strasser, J. (2015). Introduction. In: Bangladesh's Leather Industry. Springer Geography. Springer, Cham. https://doi.org/10.1007/978-3-319-22548-7_1

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