Bangladesh is the global hub of the fast fashion industry.
The clothing that its producers export fills the racks at Zara, Gap, and H&M. This has caused the nation to move from being among the world's lowest to a lower-middle income country in less than three decades.
But following weeks of protests that overthrew Sheikh Hasina's administration in August, the country's garment sector, valued at $55 billion (£42 billion) annually, now faces an uncertain future. The uprising claimed hundreds of lives.
A statewide internet blackout made it difficult for manufacturers to operate, and at least four companies were set on fire. According to three companies that supply companies like Disney, Walmart, and other worldwide garment companies, several major brands have already started looking elsewhere for the upcoming season's clothing. This information was provided to the BBC.
The disturbance is still going on. Due to labor unrest, some sixty factories outside of Dhaka are anticipated to close starting on Thursday. Workers have been demonstrating and making a number of requests, one of which is higher pay.
A director of the nation's association of clothing producers and exporters, Mohiuddin Rubel, states that recent events "will impact the confidence level of brands."
"And they might consider if it's wise to put all of our eggs in one basket." He mentions competing nations that produce clothing, such as Vietnam.
Actually, according to Kyaw Sein Thai, who has sourcing offices in Bangladesh and the US, there may be a "10–20% drop in exports this year" as a result of the recent political instability. Given that fast fashion exports make up 80% of Bangladesh's export revenue, the sum is not insignificant.
The garment industry and Bangladesh's economy were in poor shape even prior to the recent events. Scandals involving child labor, fatal mishaps, and the Covid-19 shutdown had all taken their toll.
Rising costs had increased the cost of manufacturing, but declining demand meant you could only charge less for your goods. Bangladesh suffered greatly from this, as it is primarily dependent on exports. Foreign exchange reserves decreased in tandem with a decline in export earnings.
There were additional issues as well. The government's finances had been depleted by extravagant expenditure on grandiose infrastructure projects. Furthermore, the Awami League party of former prime minister Sheikh Hasina's influential businessmen caused the banks to falter due to widespread cronyism.
In a recent exclusive interview, Dr. Ahsan Mansur, the nation's new central bank governor, told the BBC that "it wasn't benign neglect but a planned robbery of the financial system."
Dr. Mansur stated that fixing this was his top priority, but he cautioned that it would take years and that additional financial assistance, including another IMF bailout, would be required for the nation.
We want to fulfill all of our overseas responsibilities, no matter how small, because we are in a tough situation. But for the time being, we need a little more cushion," Dr. Mansur remarked.
Mahaburbur Rahman, whose family established the apparel manufacturing company Sonia Group twenty years ago, notes that the nation's diminishing foreign exchange reserves are sufficient to undermine confidence.
"If we run out of dollars, they are worried about how we will pay for yarn imports from China and India. Because they don't have travel insurance, many of them aren't even able to visit Bangladesh to place new orders, according to Mr. Rahman.
However, Bangladesh faces a more pressing issue: the demonstrations that overthrew Ms. Hasina were instigated by students who were dissatisfied with the dearth of lucrative employment prospects and jobs.
Millions of employment may have been created by the clothes factories, but the jobs are poorly paid. According to some manufacturing workers who talked with the BBC, their income was just about half of the federal minimum wage, and they had to take out loans in order to provide for their families.
Many of them joined the recent student-led demonstrations calling for improved working and living conditions.
Union leader Maria declared, "We will settle for nothing less than a doubling." "Wages must rise in line with the rising cost of living."
However, the demands of the student protestors are for a more drastic overhaul of the labor market.
Sardar Armaan, Abu Tahir, Muhammad Zaman, and Muhammad Zaidul participated in the protests.
They have all been out of work for two to five years, and they all tell the BBC that they would like to work in the private sector but don't think they are qualified for the positions that are open.
It is rare for [my parents] to realize how competitive the employment market is. In my family, being unemployed is a big cause of stress. "I feel denigrated," Mr. Zaman declares.
Mr. Zaidul claims, "We are not getting the right skills; we just get a degree."
He continues, mentioning Muhammad Yunus, the nation's acting leader, saying, "We all feel more hopeful he'll do something about this because the new adviser is an entrepreneur himself." Mr. Yunus' groundbreaking work in microloans earned him the Nobel Peace Prize.
In order to satisfy the expectations of educated youth, Dr. Fahmida Khatun of the think tank Centre for Policy Dialogue emphasizes that economic diversification will be essential, and she contends that this is not a bad thing for the economy.
According to her, "no nation can survive for a long time based on only one sector." You can go so far with it, but no farther. Although [diversification] has been attempted, it has only been documented in books thus far.
This is demonstrated by an abandoned technological park outside of the capital, Dhaka. It was intended to be a component of a national campaign to reduce Bangladesh's dependency on the garment industry and generate better-paying jobs when it opened in 2015.
It currently stands empty, serving as a reminder of the financial missteps of the previous government.
Software entrepreneur Russel T. Ahmed says, "This is the perfect example of the gap between what industry needs and what the government has provided."
"No one questioned our need for these parks. Bangladesh has made investments in its physical infrastructure, but what has been our human infrastructure investment portfolio? That is the basic substance required by this sector.
To attract international and private investment, Dr. Khatun thinks the incoming government should eliminate obstacles like red tape and corruption.
Mr. Yunus has pledged to fix institutions that have been "systematically destroyed" over the past few years, according to Dr. Khatun, and to implement extensive economic changes.
He faces a difficult challenge ahead of him: bringing the economy back to stability, holding free and fair elections, and preventing special interests from influencing government policy.
All of this is necessary given the multitude of other issues the nation is dealing with, including a slowing down in the demand for the goods it produces worldwide, strained ties with its large neighbor and trading partner, India, which is sheltering Ms. Hasina, and the country's vulnerability to flooding due to climate change-related stronger cyclones.
These obstacles are as great as the expectations that a great number of people have placed in Mr. Yunus.