Industrial Geography and Environment

Hand notes for Industrial Geography and Environment, in the context of Bangladesh.

1. Mohammad Mohaiminul Islam
MS 2018, GES, CU
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Industrial Geography and Environment
Q: Define industrial geography. Discuss the importance and major approaches of
industrial geography.
Industrial geography:
According to Oxford Dictionary of Geography, Industrial geography is the study of
manufacturing industry and it bases on the regions where economies are built. It
studies the industrial pattern, nature of decision making in industry, understanding
the change of industrial location and pattern etc. (Mayhew, 1995).
According to Glasmeier (2001), Industrial geography is the study of the global
industrial landscape, which serves as the background context for studies of
industrial location.
According to He and Zhu (2017), Industrial geography has traditionally been defined
as the study of the spaces, places, and geographical circulation of industry.

Approaches in Industrial Geography:
There are several approaches in the study of industrial geography. Adapting the
concept of He and Jhu (2017) and Glasmeier and Lee-Chuvala (2015), there are the
following approaches of industrial geography-
1. The behavioral approach
2. Marxist Approach
3. Radical Approach
4. Capitalist Approach
5. Collective Capitalist Approach
6. Industrial Location Approach

1. The behavioral approach: The view was originated in 1960s. It is based on the
assumptions of rational choice and maximizing behavior, to observation and analysis
of actual location practice accorded with the traditionally more empirical
predilections of geographers. The behavioral approach thus relies on in-depth
interviews with corporate locators, ranging from asking about the opening or closing
of a specific plant to considerations of the working of the local network and of the
influence of corporate culture on the structure of the firm.
2. Marxist Approach: It was popular during 1970s to 1980s. Developments in
industrial geography reflected the applications of Marxian economics to location

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issues, in lieu of the neoclassical economics. Dissatisfaction with the abstract,
socially irrelevant and apolitical conceptualization of industrial geography that
neoclassical location theory provided surfaced in the 1970s when David Harvey
started to reject spatial science that he had earlier championed in his Explanation
in Geography. The approach focuses on the man power in industrialization and their
waging system. It also emphasizes that the industrialization of a region should be
controlled by the state rather than the private ownership.
3. Radical Approach: The intellectual shift towards the radical approach, colored
especially by Marxism, accorded with shifts in the real world. The restructuring of
industrial activities, as well as deindustrialization, especially in the seemingly
entrenched Western industrial regions attracted increasing attention, within the
broader context of change in the capitalist economy. The radical approach and
political economy, with its emphasis on economic crisis and uneven development, thus
offered an ideal theoretical framework.
4. Capitalist Approach: This approach was focused on the private ownership and
controlling of industrial location, products, maintenance and profit focusing on the
improvement of machines and technologies that can be well maintained in individual
authorization and management according to this concept. The concept was originated
during 1950s to 1970s.
5. Collective Capitalist Approach: It is a modern or post Marxist approach that
focuses on the private ownership but not as an individual but as a group of individuals
that can act as a single managing and monitoring body. The cultural and socio-
economic factors are being considered in industrial ion in this approach. It is a
combination of both socialist and capitalist approach.
6. Industrial Location Approach: It is an abstract concept rather than applied one
but still has been one of the de facto approach controlling the industrial activities
and industrializations. Industrial location is the decision-making processes of firms
and reflects the trade-off between access to natural resources and access to
markets (Weber, 1971).

Importance of Industrial Geography:
1. To understand the spatial factors in industrialization.
2. To understand the trend of industrialization.
3. To understand the pattern of industrialization.
4. To analyze the socio-economic factors of industrializations.

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5. To analyze the geographic, topographic, behavioral factors of industrialization.
6. To comprehend the changing patterns of industries, economy and
industrializations.
7. To know the usage of natural resources in industrialization.
8. To assess the environmental impact of industrialization.
9. To link between regionalization and industrialization.
10. To provide a policy, techniques, strategies and approaches for a sustainable earth
friendly industrial environment.

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MS 2018, GES, CU
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Q: Major factors of industrial location. Discuss which of these factors are playing
major role in industrialization process of Bangladesh.
Major Factors of Industrial Location:
There are some major factors for an industrial location. Those are-
1. Raw material
2. Market
3. Water & Power (energy)
4. Labour
5. Transportation
6. Government
7. Circumstances
8. Capital
9. Land

1. Raw material:
 Materials that are important to the business must be located near the source
 Wherever ore is, the copper mining plant must be nearby.
 e.g. A potato processing plant must be close to a potato farm.
2. Market:
 A company that is close to the consumer population.
o Reduces Costs
o Ensures rapid delivery
 A Company will not locate near its markets in two cases
o When the market spans over a large area
o Location is more important
3. Availability of Power:
- Large factories need a good source of water for the manufacturing process
- Steel factories need large amounts of water for the cooling process
- Aluminum needs large amounts of electricity to be fabricated, and therefore must
be near a good source

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4. Labour Supply:
 Highly skilled workers are
important (near universities and
colleges)
 Availability and cost are
important
 Low cost labour
 Developing nations have taken
away cheap labour
5. Transportation:
 An efficient transportation service is vital to get the product to the consumer
(eg. Rail, Water, Road)
 Ships are cheaper and more efficient for bulk industries
6. Government:
 Direct - Government encourages investment by offering advantages -Low
taxes, cheap land
 Indirect - improving infrastructure that will attract businesses – e.g. a new
fast highway for a business to be located
7. Circumstances
 Less easy to measure than the other factors
 Depends on the entrepreneur or whoever puts the idea into practice
8. Capital: Capital or huge investment is needed for the establishment of industries.
9. Land: The characteristics and properties of soil.
Geographic and non-geographic factors:
The factors can also be analyzed from a spatial point of view and then the factors
can be categorized into geographic and non-geographic factors.
Geographic factors:
 Raw material
 Power
 Labour
 Transport
 Storage and warehousing
 Marketing
feasibility/accessibility
 Characteristics of land and soil
Non geographic factors:
 Capital investment.
 Availability of loans.
 Investment climate.
 Government policies/regulations.
 Influence of pressure groups.
 Technology

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 Climate
 Precipitation and water
resources
 Vulnerability to natural
resources

Which of these factors are playing major role in industrialization process of
Bangladesh?
The factors that are playing major role in industrialization process of Bangladesh
are-
1. Availability of labour: since most the labours of Bangladesh are unskilled, having
skilled labours is a benediction of any industry. Consequently, the industrialization
will be based on the availability of labours. From this aspect, it cane presumed that-
 An industrializing will take place in a location where the labours would
be more likely to be available.
 An established area of industrialization will influence more industries
to be established. e.g. - Narayanganj is an industrialized area in Dhaka
division, so is Kalurghat in Chittagong division. These locations are
featured by the concentration of large number of industries since they
are well recognized as an industrial spot and labours are available here.
 Industrialization will take place in an area where the labour
concentration is high.
2. Availability of Raw Material: It is an important factor for Bangladeshi
industries. Mostly the industrialization of a particular raw material is observed
where the raw materials are available.
 Having closeness of location to the raw materials will deduct some
costs of transportation.
 For example, we see that the teas industries of Bangladesh are mostly
located in Sylhet where the plants are more available.
3. Transportation: Having a good transport system is a vital requirement for any
industry. An industry will not take place in a location where the transportation
facilities are weak.
 An industry will not take place on the mountainous region of
Khagrachari because it will not be easy to carry out the products to
the market.

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MS 2018, GES, CU
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 Transportation in this case, means road network, rivers and rail
networks.
4. Water and Energy: Availability of water and energy is a key vital phenomenon
for the industrialization. Industries need water to run the machines and energy as
well for the same purpose. Also dumping waste is another purpose of water
essentiality.
 Many of the industries of Bangladesh are observed near the river like
Karnafuli, Buriganga etc.
 An industry must ensure the power supply and it can be one of the
prime preconditions of establishing an industry.
5. Governmental policy: Government policies are another factor that influences
industrial location. The government sets certain restriction in the allocation of land
for industries in order to reduce regional disparities, to control excessive pollution
and to avoid the excessive clustering of industries in big cities.
 The environment acts of Bangladesh precisely mentioned the locations
where industrializations are allowed and where not, so it is an
important phenomenon for any industrial location.
 Although to be mentioned, according to several recent surveys, these
laws and acts are violated in many cases.
6. Others: The minor factors are-
 Market is an important issue as well but can be acknowledged with less
priorities in this case because the cheap and available transportation system
allows to transport the products countrywide with least cost.
 Capital is also an issue especially for SMEs (Small and medium-sized
enterprises).
 Land is not much of a concern since almost 100% of the land of Bangladesh
have same amount of fertility and soil characteristics. Still it should be
acknowledged from the perspective of land conservation and land use
management.

8. Mohammad Mohaiminul Islam
MS 2018, GES, CU
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Q: What is industrial location? How raw materials act as a principal controlling
factors in industrial establishment of any location?
Industrial location: Industrial location is the study of the location decision-making
processes of firms and reflects the trade-off between access to natural resources
and access to markets (Weber 1971).
Factors: Raw material, Market, Water & Power (energy), Labour,
Transportation, Government, Circumstances, Capital, Land etc.
Advantage: Employment, variation of product, higher GDP,
independence (Waugh, 2002).
Disadvantage: Migration, pollution, monopolies (Waugh, 2002).

How raw materials act as a principal controlling factors in industrial
establishment of any location?
The raw materials act as a principal controlling factors in industrial establishment
of any location. To prove this statement the following phenomena should be
established and discussed.
1. The need-based approach
2. The historical approach
3. The role of raw materials in industrial location
1. The need-based approach: The task of industry is to produce something
through manufacture. To produce something, they need to manufacture. And the
answer to the question-‘what do they manufacture?’ is-raw materials. Hence,
whether an industry will be established or not and if established, where would be
the location mostly relies on the factors-
 Where are the raw materials
 What is the quantity of raw materials
 What is the location of raw materials
 How much raw materials do the industry need per year
 How much raw materials can be obtained from a particular location
 What associative raw materials would be necessary for a specific
product
Based on these factors, an industry can be established. So, it can be said that, raw
material is a vital need of an industry and probably the one fundamental demand. It

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is decisive that the raw materials act as a principal controlling factors in industrial
establishment of any location.
2. The historical approach: History teaches the present. Going back two hundred
years, we can see the industrial revolution took place. The prime key of this
revolution was the availability and supply of raw materials. The role of raw materials
in the industrial revolution was-
 England had an abundance of raw materials.
 Before mined little for coal, now because of demand coal is mined a lot
 Though very useful coal mining was very dangerous
 Kids were used as trappers
 In the 1800s iron making also increased
The following conclusions can be drawn based on the history of industrialization:
 Mainly the raw materials was the basis of industrialization in the industrial
revolution. This made things like workforce and transport have to improve and
this what observable now.
 Without raw materials such as coal and cotton it would have literally been
impossible for factories to be run
An example can be made of the increase of coal production based on the supply of
raw materials-100 times in 300 years (2.7 mt to 250 mt) during 1700-1900.
3. The role of raw materials in industrial location: The following possible roles
are featured with raw materials for industrialization.
 Industrializing will only be possible with the sufficient amount of raw
materials.
 Raw materials of a particular place will attract the location industrialization.
 Industry will be established when the raw materials are at the least possible
distance.
 To choose between two places with same quality of raw materials, the
parameters will be the quantity of raw materials.
 Not only the availability of raw materials will suffice for an industrial location
but also the sustainability and continuity of raw materials are important.
 The raw material of a particular product will attract the industrial location of
that particular manufacture.
 The closeness of alternative raw materials for the original materials will be
an additional benediction for the industrial location.

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MS 2018, GES, CU
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 The closeness of associative raw materials with the original materials will be
an additional benediction for the industrial location.

Role of the Availability of Raw Material in the industrialization in Bangladesh:
It is an important factor for Bangladeshi industries. Mostly the industrialization of
a particular raw material is observed where the raw materials are available.
 Having closeness of location to the raw materials will deduct some
costs of transportation.
 For example, we see that the teas industries of Bangladesh are mostly
located in Sylhet where the plants are more available.

Q: Describe the least cost approach. Discuss the theory of Alfred Weber’s with
criticism.
Least cost approach:
The Least Cost Method is another method used to obtain the initial feasible solution
for the transportation problem. Here, the allocation begins with the cell which has
the minimum cost. The lower cost cells are chosen over the higher-cost cell with the
objective to have the least cost of transportation. The theory was published in 1909.

Objectives of the Least Cost Location Theory:
The basic objective of Weber’s theory is to find out the minimum cost location of
an industry. In this theory, he tried to establish that transport cost plays a pivotal
role in the selection of industrial location. Irrespective of socio-economic and
political climate of the country, the general trend of the location is universal. He
denied the importance of factors other than trans­port cost, labour cost and
agglomerating factors.

Assumptions of the Least Cost Location Theory:
The Weberian concept is not universally applicable. This hypothesis is only applicable
where certain optimum conditions are available.
1. The area under consideration is having a self-supporting economy where uniformity
prevails regarding land-form, weather, labour and even ability or performance of the
people.

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MS 2018, GES, CU
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2. The perfect competition prevails in market. The demand of the product is
unending.
3. The labours are static within the region. A uniformity of wage rate is a necessary
pre­condition of the theory.
4. Uniformity of socio-economic and political environment within the region.
5. Raw materials vary according to the weight. Some raw materials, available
everywhere, were classified as ubiquitous; the others, confined in particular places,
were known as fixed raw materials.
6. Transport cost increases uniformly and proportionately according to weight in all
di­rections.

Postulations of the Least Cost Location Theory:
The presence of all required conditions favours the implementation of Weber’s
theory. The location of the industry, as stated by Weber, will be controlled by these
factors of separate nature. These factors are:
i. Influence of transport cost.
ii. Influence of labour cost.
iii. Influence of industrial agglomeration or de-glomeration.

I. Influence of Transport Cost:
In the least cost model of Alfred Weber on industrial location, transport cost was
consid­ered the most powerful determinant of plant location. The total transport,
as stated by Weber, is determined by the total distance of haulage and weight of
the transported material. Regarding the transport cost between the p oints,
generally from raw material to plant and market, distance is the sole determinant.
Transport cost are influenced by three basic elements.
 The weight to be transported.
 The distance to be covered.
 The nature of commodity.
Influence of transport cost is associated with 3 associative phenomena:
A. Types of raw materials
B. Locational Pattern
C. Selecting location
A. Types of raw materials: It can be of two types-

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i. Ubiquitous: Raw materials are found everywhere. e.g.
water, air, soil.
ii. Localized: The localized raw materials are confined
only in some selected places on earth, e.g. iron ore, coal,
bauxite etc.
It can be of two types-
a) Pure raw material: That does not lose weight
after being manufactured.
b) Impure raw material: That loses weight after
being manufactured.
B. Locational Pattern: It can be of two types.
i. Linear: When industry is situated between market
and one raw material.
ii. Non Linear: When industry is situated between
market and more than one raw material.
C. Selecting location: Considering the above situations, three
options are left to the entrepreneurs to select the location.
i. At the market.
ii. At the raw material source.
iii. At any intermediate point between raw material
source and finished product.
II. Influence of Labour Cost:
 According to Weber, another regional factor for deviation of Industry from one
place to another is Labour Cost. It happens due to Difference in labour costs.
 The Labour costs may differs due to two reasons: - 1. Differences in wage rates,
2. Differences in the level of efficiency.
 According to him, if savings in labour cost per unit of output are greater than the
extra transport cost per unit then the industry take deviation from Least
Transport Cost Point to Least Labour Cost Point.
III. Influence of industrial agglomeration or de-glomeration:
Weber also emphasized much on agglomeration of the industries. According to his
theory, if number of factories concentrate within a region, due to mutual co-
operation, the total trans­port cost may be less than a single area. All the industries
concentrated in the region should be dependent on each other.

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MS 2018, GES, CU
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Criticisms of the Least Cost Location Theory:
1. Weber’s theory is a model hypothesis based on several premises. But in the
complex manufacturing process, presence of all the desired conditions is not
possible. Only in the ex­ceptional cases all the premises may occur in a place. So,
the theory is an exception rather than rule.
2. The difference of different economic systems has been ignored by Weber. The
differ­ence between the capitalistic and socialistic economy, institutional factors
and entrepreneurial decisions were not taken seriously.
3. Weber over-emphasized on the role of transport cost. He considered transport
cost is proportional with weight and distance. But, in reality, transport cost of
raw materials are cheaper than finished product. Transport rate is also not
proportional with the distance. It has been estimated that with increasing
distance transport cost reduces substantially. The advan­tage of the “break of
bulk’ location was ignored.
4. In his agglomeration concept, Weber tried to establish that if industries
concentrate in a region, it would get distinct advantages. But he failed to consider
the space problem, energy crisis and problems of civic amenities.
5. The assumption of perfect competition in the concept of Weber is an ideal
condition. In the long run it is very difficult to sustain perfect competition in the
region.
6. Competition and price fluctuation in the economy is a natural phenomenon. Weber
failed to recognize that.

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MS 2018, GES, CU
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15. Mohammad Mohaiminul Islam
MS 2018, GES, CU
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Q: Discuss the industrial location theory of August Losch of market area and
maximization with criticism.
The Theory of August Losch
 Conceptualization
 Assumptions
 The three phases in the model
 Advantages of the theory
 Criticism of the theory

Conceptualization:
 August Losch, a German economist, published his theory of ‘Profit Maximisation’
in the year 1954. The least cost location theory of Weber was wholly discarded
by Losch. In fact, he suggested that, ‘profit maximization’ is the only objective
of the entrepreneur, whether it is state or an individual. The major objective of
the industry is, therefore, to find out the place where maximum profits occur.
 Unlike Weber, who postulated his entire theory in an economic state of perfect
competition, Losch, on the other hand, explained his theory within the
environment of monopolistic competition. According to Losch, industry will not
necessarily be located within the least cost (transport cost and labour cost)
location; rather it would locate in areas where maximum profit will occur. So,
ignoring transport cost, labour cost and agglomeration cost, he emphasized more
on the total production cost.

 To get the maximum profit, as stated by Losch, total
consumption is important. Higher the consumption rate,
greater will be the profit. In this case, he emphasized
most on the price reduction of the commodity. Any
decrease of price would automatically stimulate the
volume of consumption. This can be illustrated by the
following diagram.
 In this simple model, it is evident that when price of the
commodity drops from R to P, the consumption increases
from M to N. The theory of August Losch considered
demand as a most important variable. The fundamental

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objective behind the theory was to find out the most profitable location for
industrial establishment.

Assumptions: In the presence of certain optimum conditions the maximum profit
location may occur-
1. The area under consideration should be an extensive homogenous plane where raw
materials are distributed evenly.
2. The ‘transport cost’ is uniform and directly proportional in all the directions.
3. The people inhabiting the region have a general homogeneity either in taste,
knowl­edge and technical skill.
4. There is no economic discriminations among the people. The economic and ca­reer
building opportunities are open and uniform to all individuals.
5. The population distribution is very even and the area is self-sufficient in
agricul­tural production.

The three phases in the model: To establish this theoretical model of the theory,
August Losch proposed three
distinct phase of development-
i. Demand based centralization:
In this first phase Losch
observed that if sufficient and
symmetrical demand of a
product prevails in the market,
the market conditions may be explained by a demand cone. The following diagram
illustrates that the effective demand of the particular product will be exactly
same to the volume of the cone. Here P=Price, Q= Quality and F= Focus point, it
is clear that, away from centre, with increasing distance, demand of the quantity
drops drastically.

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ii. Multiple circular diffusion: In the second
phase, within the vast rounded area, several
factories will concentrate. The virgin,
extensive market area will automatically give a
lucrative operational area. But despite the
growing competition among the firms to
capture larger share of consumer and larger
market areas, there should be some void in the
boundary zones. The space situated outside the
circular areas are still lying vacant. It is quite
natural for the other industries to capture this
potential market areas, hitherto unexploited.
The influx of new industries in the region will
result in shrinkage of the market areas of different production centres. The
intrusion of one market area to other will distort the circular market areas and
the market areas of different production units will further reduce. This situation
will lead to the initiation of the third phase.
iii. The hexagonal assimilation: In the third phase of
industrial location witness the narrowing of the
intermediate space between two market areas. The
areas fall vacant between the different markets
areas become the target of new enterprises. As new
firms set up within the vacuum, the hinterlands of
earlier industries become reduced. The reduction of
the market area results in rapid disrup­tion of the
early circular pattern. Gradually the market area of
the industries attain a hexago­nal shape. According
to Losch, when any area possesses several hexagons,
lying upon each other and surrounding a particular
centre, a metropolitan city will grow. In other words,
it may be said that around the nucleus of a city,
numerous hexagons or market areas of different
com­modity will grow.

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Advantages of the theory:
1. August Losch tried to restore a order in the former chaotic classifications of
industrial location.
2. He was the first person to consider the influence of the magnitude of demand on
indus­trial location.
3. August Losch rightly emphasizes upon the role of competition as an important
determinant of location analysis.
4. The calculations adopted by Losch were simple and easily applicable to any place.
5. The theory has also a philosophical contribution on the motive of entrepreneurs’
role.
6. His equilibrium concept is perhaps the greatest contribution among the location
theories developed later on.
7. The least cost concept of Weber was nullified by Losch and instead more precise
‘profit maximization concept was adopted.

Criticism of the theory:
1. This theory is essentially a simplified model or theorizing of an ideal condition.
In reality, only in a rare occasion, these events may occur.
2. The assumed conditions of homogeneous plain region, equal distribution of raw
mate­rials and uniform transport rates never occur in the real world. Therefore,
Losch’s theory, as said by some critics, is nothing but only intellectual exercise.
3. Losch even assumed the cultural homogeneity and uniform taste of the people
within the region. This is nothing but absurdity.
4. He ignored the variation of technological development of different regions. The
differ­ence of technical know-how may offset the theoretical model.
5. Political decisions play an important role in the industrial location. Losch ignored
it.
6. The variation of the cost of raw materials and labour wage rates were not given
proper weightage in the theory.
7. Losch categorically separated the role and effect of agriculture and industry.
But this difference is somehow arbitrary in nature.
8. The abstract and optimum situation demanded by the theory may be available in
agri­culture but not in the complex production process of modern manufacturing
industries. Thus, Losch theory is more practical in agriculture, rather than in
industry.

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Q: What are the approaches of industrial location?
1. Least cost approach
Least transport cost, industry should take place where the transport cost is
minimum.
2. Profit maximization approach
Maximum profitable location, industry should take place where the profit is
maximum, based on the minimum production cost.
3. Marginal approach
Where the space cost curve and space revenue curve meets, industrialization
should take place there, where the boundary of minimum production cost and
the boundary of maximum profit meets.
4. Interdependence approach
Interaction between industries, policy, labour, govt. etc. Industries are highly
influenced in a centralized places by the internal behavior of surrounding
industrial entities.
5. Central place approach
Central locational activities & territorial activities, a central location can
influence the surrounding settlement, based on the location of market,
transport and administration, threshold population is the minimum population
for making a service viable, range is the maximum distance consumers willing
to travel to purchase a good or service
6. Behavioral approach
The decision making process of firms, its acts on the internal processes, how
it sees the other factors, attitude towards competition and consumers etc.,
it can influence the location regardless any other factors.
7. Structural approach
Political economy and economic growth, economic growth should be sustained
under any circumstance and any available mean, Marxist approach.

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Q: What do you mean by industrial structure and organization? Show the general
structure of RGM industries and Mass media with governance of CEO?
Industrial Structure:
According to Business Dictionary, industrial structure is an abstract relationship
within the operational acts and industrial functionalities.
According to Atikian (2017), Industrial structure describes the composition of a
country’s economic activity, the production of human material provisions. Industries
are usually categorized into three basic types according to their stage within the
production process, or the type of value being added to a natural resource. The
categories are: primary, secondary and tertiary and their tasks are accordingly
extract, transform and deliver.

Industrial Organization: According to Investopedia, industrial organization is an
integral economic system dealing with the strategic behavior of firms, regulatory
policy, antitrust policy and market competition. Industrial organization applies the
economic theory of price to industries.
According to Coase (1937), industrial organization refers to the structure of a
market and their interrelationship.

General Structure of an RGM Industry:
An RGM (Ready Made Garment) industry is basically an industry for manufacturing
clothes from raw materials and their marketization. The basic requirements of an
RGM industry are-
 Garments with up-to-date fashion appeal
 Low forward commitments in order to leave open options to exploit sudden
demands during the season
 Competitive prices
 Acceptable quality standards
 Quick response and short delivery times

Structures: The structure of an RGM industry includes-
1. Size structure
2. Manufacturing structure (sub-contractor & apparel manufacture)
3. Working method

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4. Retailing level

1. Size structure: Entry to the clothing industry has always been easy because
of the relatively small amount of capital required to purchase machinery and
the necessary raw materials. For the past century the industry has been
dominated by one simple, cheap and long-leaved tool, the basic sewing machine,
and this not only facilitates entry into the industry but virtually dictates its
structure. This is amply demonstrated by the large number of small factories
which exist within the industry.
2. Manufacture Structure: The clothing industry manufactures a vast variety
of garment types ranging from work clothes to ball gowns and the production
itself can be carried out by one of two types of organization: a manufacturer
or a sub-contractor.
A. Apparel manufacture: Marketing, merchandising, and production.
Apparel production is categorized in two types.
i. Perform manufacturing within own facilities and
employees.
ii. Contact some or all of the manufacturing functions to
other firms. Contracting even categorized in 3 sub
category. These are like -
a) Cut-make-trim (CMT) contactors: supply
operators, machines, and thread and make
garments.
b) Full package program (FPP): source materials and
develop patterns as well as make garments.
Greater financial responsibility. FPP might higher
CMT contractors.
c) Specialty contractors: provide services such as
pattern grading, cutting, embroidering, belt
making, fabric pleating, or screen printing.
B. Sub-Contractor: These account for most of the small factories
within the clothing industry and they exist because they produce
garments of acceptable quality at competitive price in a short
through put time. The contractor’s prices must not only be
competitive with those of other sub-contractor, but they must

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also be low enough to make it attractive for the manufacturer. The
strength of the sub-contractor is in factory management and the
maintenance of very low overhead. In addition he must:
 Maintain continuity of production;
 Ensure that his customers are reputable and financially
secure;
 Recognize and select the most profitable opportunities;
 Obtain high productivity levels from his labour force;
 Utilizes to the fullest all the materials supplied by the
manufacturer.


3. Working Method: he manufacturer can produce garments via a sub -
contractor in a number of ways, for example:
Cutting: The manufacturer can supply the sub-contractor with
 Cut garments ready for sewing;
 Raw materials and cutting markers;
 Raw materials and graded sets of patterns.
Making-up: This is the raison-d’être of the sub-contractor and the
basic service he sells.
Trimmings: The manufacturers can supply all, some or none of the
trimmings required to make the garments.
Finishing: This usually refers to pressing, final inspection and
bagging, and one or more of these process can be performed by the
manufacturer or the sub-contractor.
Quality control: The manufacturer usually operates in process and
final quality control procedures to ensure that garments produced
bby the sub-contractor are according to specification.
4. Retailing level: Retailing means selling clothing to the consumer. Apparel
manufacturers may be forward vertically integrated into the retail sector
through owning their own stores. The levels are- wholesale point (warehouse),
retailer outlet, mass retailer, internet retailer, store retailer etc.
5. Consumer: Decisions at all levels are based on forecasts of customer demand.

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The structure of managing body:
1. CEO/managing director
2. General manager, production manager, R&D manager
3. Administrative manager, account manager, technical manager
4. Assistant managers
5. Supervisors
6. Workers

Structure of a mass media: Mass media refers to a diverse array of media
technologies that reach a large audience via mass communication. The technologies
through which this communication takes place include a variety of outlets. Broadcast
media transmit information electronically via media such as films, radio, recorded
music, or television. The structure is as below-
1. Editor/chief
2. Accounting
3. Advertising
4. Marketing
5. Shipping
6. Sales
7. Journalism
8. Column editors
9. Publicist
10. Photographer

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Governance of a CEO:
 CEO is a chief executive officer, the highest-ranking person in a company or
other institution, ultimately responsible for taking managerial decisions.
 The CEO is directly accountable to the Board for all activities of the
Corporation. Together with the Chief Financial Officer: establish and maintain
the Corporation's disclosure controls and procedures through appropriate
policies and processes.
 The typical duties, responsibilities and job description of a CEO include:
Communicating, on behalf of the company, with shareholders, government
entities, and the public. Leading the development of the company's short- and
long-term strategy. Creating and implementing the company or organization's
vision and mission.

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Q: Classify the various types of industries. Discuss and show the worldwide
distribution of
a) Iron industry
b) Textile and cotton
c) Garments industry
d) Cotton wear industry
e) IT industry.

Classification of Industries: According to Atikian (2013), there can be of 5 types
of industry-
1. Primary Sector (Raw Materials)
2. Secondary Sector (Manufacturing and Industry)
3. Tertiary Sector (Service Sector)
4. Quaternary Sector (Knowledge Sector)
5. Quinary Sector (Decision Making Sector)

1. Primary Industry:
Simply speaking primary industry refers to that industry of the economy which uses
natural resource to produce goods. Natural factors play crucial role in the production
process. Agriculture and allied activities like mining, fishery, forestry, dairy and
poultry are included in this industry. Primary industry dominates in under-developed
countries.
2. Secondary Industry:
Secondary industry is also called as manufacturing industry or industrial industry.
The primary industry cannot satisfy all human requirements. We need certain
industrial goods to make our lives comfortable. The industry which transforms one
physical good into another is called secondary industry. The manufacturing,
electricity, gas, water supply etc. are included in this industry.
3. Tertiary Industry:
The service industry of the economy is called tertiary industry. Services of various
kinds like education, health, banking, insurance, trade and transport are included in
this industry. In advanced countries, the contribution of tertiary industry to national
income is the highest.

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4. Quaternary Industry: The quaternary industry of the economy is a way to
describe a knowledge-based part of the economy, which typically includes services
such as information technology, information-generation and -sharing, media, and
research and development, as well as knowledge-based services like consultation,
education, financial planning, blogging, and designing.
5. Quinary Industry
Some consider there to be a branch of the quaternary industry called the quinary
industry, which includes the highest levels of decision making in a society or economy.
This industry would include the top executives or officials in such fields as
government, science, universities, nonprofit, healthcare, culture, and the media.

Industrial classification of Bangladesh:
According to Sarker, the classification of industries of Bangladesh are:
1. large industry (200 m BDT, 150+ worker)
2. medium industry (15-200 m, 50-150 worker)
3. small industry (0.5-15 m, 10-25 worker)
4. micro industry (0.5-10 m, few worker)
5. cottage industry (family labour)
6. reserved industry (Industries that are kept reserved for public investment
due to national security or other reasons)
7. thrust sector industry (This may include industries that currently occupy a
dominant position in the economy or industries which have high growth
potentials but are currently non-existent or are in a nascent stage in the
economy. e.g. agro based, ceramic, furniture, cosmetics, handicrafts, plastic,
stationary, pharmaceuticals etc.)
8. service sector industry (hotel, hospital, telecommunication, entertainment,
transportation etc.)
9. small and medium sized enterprises (SMEs)

Distribution of different industries:
a) Iron

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b) Textile, garments and cotton

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c) IT industry

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29

Q: What is industrial growth and development? Discuss the stages of economic
growth of Rostow’s in the context of industrial growth/economic development.
Industrial Growth and
Development: Industrial growth
refers to the rise of production,
sale and expand of regionalization
of industries. According to Fliss,
Industrial Development is the synthesis of contributions from four major factors,
namely, Business, Technology, Government and Labour and successful industrial
projects can be achieved only through a close co-operation and mutual understanding
between these contributors. The concept of integration in industrial development is
based on the creation of integrated organizational structures, including all main
contributors acting as a team, their objective being the successful completion of the
project.
The major factors of industrialization are- investor, developer, customer,
government, capital, labour, resource and facilities.

Rostow’s model:
The Rostow Model of
Development was created in 1960
by an American, W.W.Rostow. He
based the Model, which
represents economic
development, on 15 countries -
most of which were European -
and suggested that it was possible
for all countries to break the
viscious cycle of poverty and
develop through the 5 linear
stages that construct his model.

Stage one: tariditional society
A subsistence economy based on basic agriculture. The outputs are consumed by the
producers instead of being exchanged and the only trade that exists is the
barter/exchange of items required for living (not done for profit). Agriculture is

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crucial to daily life and the only industry that exists. The work is very labour
intensive as there is very limited technology. Other than the land for food
production there is very limited exploitation of raw materials and so the development
of other industries and services is also restricted.
Stage two: precondition for take off
Agriculture starts to become more commercialized as mechanization occurs. Other
industries start to emerge, although one will take dominance (this is usually textiles),
and resources start to be exploited. TNC's start to invest and this further provokes
the development of industries. This investment is known as FDI = Foreign Direct
Investment.
Stage three: take off
This stage is characterized by the dominating presence of the multiplier effect -
also known as the Model of Cumulative Causation. Industrialization increases and
workers switch from working the land to working in factories thereby kick-starting
the process of urbanisation. Political and social reforms and improvements occur in
conjunction with the industrialization. Infrastructure continues to be developed but
growth often remains only in a few regions in the country = growth poles.
Stage four: drive to maturity
Growth becomes self -
sustaining as it is now
supported by technological
innovation. The population
continues to grow and rapid
urbanisation starts to occur.
Earlier industries start to
decline as manufacturing
takes dominance and a wider
range of industries develop.
Economic growth becomes more evenly distributed throughout the country due to a
process of filter through - this occurs via Cumulative Causation.
Stage five: age of high mass consumption
The initially exploitative industries move elsewhere and any remaining industries
shift production to durable consumer goods. A rapid expansion of tertiary industry
occurs. One of the main shifts that occur as a country moves through the 5 stages

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of the Rostow Model of Development is within the employment sector and the
changes that occur here reflect those that happen within industry.

Criticisms:
 The model is quite old (created in 1960) and, perhaps, oversimplified. Its age
prevents it from taking into account new technologic and scientific advances
that have accelerated developement.
 It is very Eurocentric and so perhaps reflects Westernisation more than it
does development as all countries development differently and at different
rates.
 The model makes the presumption that all countries start with the same
foundations i.e have the same climate, amount of natural resources and same
population size/structure and this is not in fact that case.
 Money is clearly needed for a country to move beyond stage 1 and often,
knowadys, this money is provided via international aid. However, debt
repayments often restrict further advancements something which is not
taken into account in the model.
 This model is based on the development of countries like the UK. Our
development was, agruably, at the expense of others, through colonialism. This
model underestimates the importance of colonialism in the early development
of many of the nations it is based on.

Strengths:
 It provides a general path for development and splits this path into 5 stages.
This enables countries to use it as a rough guide to development.
 To some extent all countries can be compared to it.
 It is easy to understand.
 In conjunction with the Demographic Transition Model, it can be used to
generate population policies.

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Q: Write down the characteristics of industries of Bangladesh. Discuss the geo-
spatial strategies for regional industrial development in Bangladesh.
Characteristics of industries of Bangladesh:
1. large industry (200 m BDT, 150+ worker)
2. medium industry (15-200 m, 50-150 worker)
3. small industry (0.5-15 m, 10-25 worker)
4. micro industry (0.5-10 m, few worker)
5. cottage industry (family labour)
6. reserved industry (Industries that are kept reserved for public investment
due to national security or other reasons)
7. thrust sector industry (This may include industries that currently occupy a
dominant position in the economy or industries which have high growth
potentials but are currently non-existent or are in a nascent stage in the
economy. e.g. agro based, ceramic, furniture, cosmetics, handicrafts, plastic,
stationary, pharmaceuticals etc.)
8. service sector industry (hotel, hospital, telecommunication, entertainment,
transportation etc.)
9. small and medium sized enterprises (SMEs)

Challenges in industries of Bangladesh:
 Lack of adequate capital
 Lack of adequate capital
 Insufficient Infrastructure
 Technological know-how
 Lack of adequate resources
 Shortage of energy
 Unskilled human resources
 Political instability
 Labour unrest
 Policy integration problems

Geo-spatial strategies for regional industrial development in Bangladesh:
 Develop and implement a good investment friendly environment so that foreign
direct investment increases here

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 Proper industrial environment should be maintained that will increase the
productivity
 Set up new export processing zones to improve infrastructural facilities
 Political stability must be ensured
 Political issues should not affect the industrial activity
 The human resources should be made skilled and more trained
 Technical institute should be set up for training human resources
 Scientific method of management should be introduced
 Industries should look for more technologically advanced equipment
 Government should take lots of steps for building up the Industry sector; they
even should thought to build up a city only for the industries, so that the people
can easily get into the job site easily
 There is a need to attract more investment and production in our industrial sector
 Necessary arrangements should be taken to make small and medium enterprises
(SMEs) profitable
 Government should make rule to put a barrier for import of foreign low quality
product
 The Industrial Policy should be implemented properly and effectively
 Special economic zones should be established in the underdeveloped region or
less industrialized districts with some subsidies
 Bangladesh govt. should encourage foreign investment to accumulate capital and
for technology transfer
 Backward linkage and forward linkage industries should be set up in garments
sector with state support
 Wages of worker should be increased to contribute to higher value added
activities
 The emphasis on Public Private Partnership (PPP) in the proposed industrial policy
is laudable but the concept is still in a rudimentary stage. Government will need
to act expeditiously to devise a transport mechanism and frame well-defined
rules for participating in and mobilizing funds for the PPP projects.

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Q: Write down the major problems and prospects of industrial development of
Bangladesh: Rice, jute, paper, cement, leather, knit and dying, shipping industry,
small and cottage.
Compiling work of Ahmed (2004), Shehely & Roy (2014), Rasheed (2008) and Rashid
(1991)-
Industry Prospect Problem
Rice Dominant crop, 28% of GDP
(agriculture=75% of GDP),
meets the domestic demand of
food, being exported
internationally
Being shrunk, affects soil
fertility, lack of modern input,
plant diseases
Jute Main cash crop, 16% of total
foreign exchange, grows
everywhere, easy to cultivate,
contributes 1.3% of GDP.
Crop management problem
(quality seed, pesticide),
degrading jute market, labour
shortage, technical
backwardness
Paper Available raw materials,
flourishing industry, potentiality
for the future, produces 6-7
lakh MT paper per year,
available land and resource in
CHT for paper mills, market
demand.
Environmental impacts,
management skill is poor,
polluting rivers, influences
deforestation, raw materials
obtaining can be difficult
sometimes, needs modern
technology.
Cement 40
th
largest cement industry in
the world, increasing demand,
contributing in remittance,
increasing PCI.
Mounting overcapacity, market
competition, raw material price
hike, foreign exchange risk
Leather Second largest industry in
Bangladesh, increase of buyers,
foreign earning, high demand of
leather product,
Lack of skilled labour, needs
technological advancement,
tanneries are not in favorable
place (Savar) yet.
Knit and
dying
Largest knit industry of the
world, very good quality knit,
strong competent in the market,
own brand, many labours, the
export rate is increasing fast
Lack of design, variety &
innovation, unstable power
supply, poor infrastructure,
product cost increase,
unplanned capacity expansion,
environmental offender.

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(11% in 2018), GSP facility, low
labour cost, fast growing sector.
Shipping
industry
Abundance of raw materials,
growing industry, high demand,
huge and skilled workforce,
lowest labour costs in the world,
global business, high demand.
Financial problem, Human
Resource Development
problem, Infrastructure
problem, Marketing problem,
Management problem,
Technical problem, Quality
control problem, Delay delivery
problem, Pricing problem,
Safety, health, and
environmental aspect, Economic
recession and its effect on
Bangladeshi shipbuilding
Small and
cottage
industry
Plays important role in rural
economy, reduces
unemployment, reduces poverty,
women empowerment, easy to
manage, very low capital
required, sustainable
development, contribution to
national economy
Unskilled labour, lack of-
efficient management, financial
support, proper marketing
promotion and raw materials,
modern technology.

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Q: Discuss the comparative role of agriculture and industry in Bangladesh.
Role of Agriculture: According to Rahman (2017),
A. Agriculture Sector and Employment: In order to assess the overall situation
of employment, Bangladesh Bureau of Statistics (BBS) conducts the Labor
Force Survey (LFS). According to the latest survey of BBS titled ‗Labor
Force Survey 2010, the number of economically active population above 15
years is 5.67 crore. Out of this, as many as 5.41 crore people (male 3.79 crore
and female 1.62 crore) are engaged in a number of professions, the highest
47.33 percent still being in agriculture.
B. Agriculture Sector and GDP: It is evident from Table 8 that combined
contribution of all sub-sectors (crops, livestock, fisheries, and forestry) of
agriculture was around 16 percent of GDP in 2014-15 of which fisheries sector
accounts for 3.69 percent. The crop sub sector alone contributes for 12.27
percent of GDP. Also the impact of agricultural growth on rural wages is an
important element in the process because for the poor households, a major
share of income originates from wage labor in agricultural activities. Rice,
Jute, Sugarcane, Potato, Pulses, Wheat, Tea and Tobacco are the principal
crops. The crop sub-sector dominates the agriculture sector contributing
about 72 percent of total production. Fisheries, livestock and forestry sub-
sectors are 10.33 percent, 10.11 percent and 7.33 percent respectively. Crop
diversification program, credit, extension and research, and input distribution
policies pursued by the government are yielding positive results. The country
is now on the threshold of attaining self-sufficiency in food grain production.
C. Agriculture Sector and Industrial Development: Agriculture sector is the
Source of raw materials as backward and forward linkage for agro based
industries. Except readymade garments, a large part of the manufacturing
sector also relies on the processing of agricultural commodities (e.g. jute, tea,
sugarcane, hides and leather, shrimps, rice and wheat). Some agro based
industries (as for example jute industry) in Bangladesh fully depend on
agricultural output for their necessary inputs.
D. Agriculture and Foreign Exchange Earning: In FY 2014-15, Bangladesh earned
USD 1,154.80 million by exporting agricultural products which was 3.70
percent of total export earnings [9]. The main agricultural export items of
the country are raw jute, jute goods, tea, and frozen foods. But the exports
of non-traditional agricultural commodities are increasing day by day.

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E. Agriculture and Service Sector: Historically, agriculture has had the major
share in the economy in Bangladesh. Over time, however, the importance of
agriculture has fallen that of the services sector has raised. Yet, still much
of the services are related to transportation and trading of agricultural
commodities.

Role of Industry: According to Sarker-
 Play a major role in economic development
 Provide a secure basis for a rapid of growth of income.
 Help in raising the standard of living
 Provide employment, meeting high income demands
 Brings in technological progress and change in the outlook of the people
 Has decreased the dependency on foreign resources

In broader concept, the role of industry is as below-
1) Rapid economic development: As, the rate of production of industry can be
increased rapidly than agriculture, so it industrialization is more essential for rapid
economic development. Beside this industrialization is considered a pre-requisite of
the economic development.
2) Increase national & per capital income: Per capita & national income of
Bangladesh is very low. It can’t be increased rapidly by agriculture. So
industrialization is very essential for increasing national & per capita income.
3) Development of living standard: Industrialization plays a vital role in the
increment of living standard & per capital income of the people in the society.
4) Development of agriculture: Bangladesh is an agricultural country. All kinds of
modern instrument, insecticides, chemical furniture & irrigation-equipment are
needed to develop the agriculture of B.D.
5) Solving unemployment problem: Unemployment is a curse in our country. So to
solve the unemployment problem industrialization is essential to set up largely in our
country.
6) Proper utilization of natural resources: Bangladesh is full of natural resources.
But still these natural resources are not utilized properly. So for proper utilization
of natural resources industry can play an important role in our country.

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7) Economic stability: The production of agricultural goods is uncertain, but the
production of industrial goods is more certain than agriculture. So industrialization
is needed to assure the economic stability of Bangladesh.
8) Reducing dependency on agriculture: Today the economy of our country mainly
depends of agriculture. But by setting up small-large industry, the dependence on
agriculture can be reduced.
9) Earning foreign currency: A lot of foreign currency is needed to import
machines, tools, raw materials of industries from foreign country. In this case
industry helps to earn enough foreign currency.
10) Bringing favorable situation: Transaction balance is engaged to a balance of
payment. So industry helps to bring favorable situation in the economy of
Bangladesh.
11) Development of communication & transportation system: It we want to develop
our country, at first we need developed communication & transportation system. For
developing communication & transportation system, industrialization is very
essential.
12) Socio economic development: The social and economic development is a major
and prime outcome of industrialization.
13) Reducing the pressure of population on agriculture: Over population is a great
problem of Bangladesh. By creating adequate employment opportunity on industrial
sectors we can reduce the pressure of population on agriculture.
14) Reducing dependency of foreign trade: Our country depends on foreign trade.
By establishing a large number of industries in Bangladesh we can reduce the
dependency on foreign trade.
15) Development of defense power: To protect our country from the attack of
other country & to develop our defense power industrialization is essential.

Summary: Both the sector is important for development of the country. At present
scenario, agriculture is the stronger sector but industrial is the fast growing sector
of the country.

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Q: Discuss the role of industrial decentralization in Bangladesh.
Industrial Decentralization:
According to Mccurthy (1982), industrial decentralization is the process of
distributing or dispersing industrial functions, powers, people or things away from a
central location or authority. The concentration of geographic concentration of an
area should be dismissed and spread away in order to sustain the economic growth
industrial development.

Industrial decentralization in Bangladesh:
 A series of political decentralization has taken place (The Local Government
Commission in 1996 recommended specific steps which resulted in three new
acts - the Local Government (Union Parishad) Act 1997, the Upazilla Parishad
Act 1998, and the Zilla Parishad Act 2000. The Government has approved
direct funding of union parishads in 2004, which is a major step to devolve
fiscal power to local governments.)
 Donors have supported decentralization and worked on improving the ability
of local governments to do more at the local level.
 Nongovernmental organizations have played a positive role to empower
grassroots organizations and are actively supporting decentralization.
 Bangladesh has a large population, which is a characteristic of countries that
have chosen to decentralize their governance and fiscal systems.
 Communications across distances are difficult, making the current practice of
centralized decision-making an inefficient proposition.

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Role of industrial decentralization: According to Smith (1997),
1. To enhance rural economy & development.
2. To alleviate pressure on urban area.
3. To extend the market.
4. To protect the environment.
5. To integrate public-private sector.
6. The presence of a relatively stable environment which offers potentially
profitable opportunities.
7. Effective and low-cost legal code and accessible legal system.
8. Positive attitude to private sector activities from the local bureaucracy.
9. Minimum of regulations consistent with orderly production of goods and
services
10. A ‘level playing field’ for private sector and public sector activities
11. Encouragement of voluntary group associations
12. Local government investments to enhance private sector performance.

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SHORT NOTES
GLOBALIZATION
By the term globalisation we mean opening up of the economy for world market by
attaining international competitiveness. Thus the globalisation of the economy simply
indicates interaction of the country relating to production, trading and financial
transactions with the developed industrialized countries of the world.
Accordingly, the term globalisation has four parameters:
a) Permitting free flow of goods by removing or reducing trade barriers between
the countries,
b) Creating environment for flow of capital between the countries,
c) Allowing free flow in technology transfer and
d) Creating environment for free movement of labour between the countries of the
world.

Advantages:
(i) Globalisation helps to boost the long run average growth rate of the economy of
the country through:
o Improvement in the allocative efficiency of resources;
o Increase in labour productivity; and
o Reduction in capital-output ratio.
(ii) Globalisation paves the way for removing inefficiency in production system.
Prolonged protective scenario in the absence of globalisation makes the production
system careless about cost effectiveness which can be attained by following the
policy of globalisation.
(iii) Globalisation attracts entry of foreign capital along with foreign updated
technology which improves the quality of production.
(iv) Globalisation usually restructure production and trade pattern favouring labour-
intensive goods and labour-intensive techniques as well as expansion of trade in
services.
(v) In a globalized scenario, domestic industries of developing country become
conscious about price reduction and quality improvement to their products so as to
face foreign competition.
(vi) Globalisation discourages uneconomic import substitution and favour cheaper
imports of capital goods which reduces capital-output ratio in manufacturing

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industries. Cost effectiveness and price reduction of manufactured commodities will
improve the terms of trade in favour of agriculture.
(vii) Globalisation facilitates consumer goods industries to expand faster to meet
growing demand for these consumer goods which would result faster expansion of
employment opportunities over a period of time. This would result trickledown effect
to reduce the proportion of population living below the poverty line
(viii) Globalisation enhances the efficiency of the banking insurance and financial
sectors with the opening up to those areas to foreign capital, foreign banks and
insurance companies.

Disadvantage:
(i) Globalisation paves the way for redistribution of economic power at the world
level leading to domination by economically powerful nations over the poor nations.
(ii) Globalisation usually results greater increase in imports than increase in exports
leading to growing trade deficit and balance of payments problem.
(iii) Although globalisation promote the idea that technological change and increase
in productivity would lead to more jobs and higher wages but during the last few
years, such technological changes occurring in some developing countries have
resulted more loss of jobs than they have created leading to fall in employment
growth rates.
(iv) Globalisation has alerted the village and small scale industries and sounded
death-knell to it as they cannot withstand the competition arising from well-
organized MNCs.
(v) Globalisation has been showing down the process to poverty reduction in some
developing and underdeveloped countries of the world and thereby enhances the
problem of inequality.
(vi) Globalisation is also posing as a threat to agriculture in developing and
underdeveloped countries of the world. As with the WTO trading provisions,
agricultural commodities market of poor and developing countries will be flooded
farm goods from countries at a rate much lower than that indigenous farm products
leading to a death-blow to many farmers.
(vii) Implementation of globalisation principle becoming harder in many industrially
developed democratic countries to ask its people to bear the pains and uncertainties
of structural adjustment with the hope of getting benefits in future.

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MS 2018, GES, CU
43



ROLE OF ONLINE MARKETING FOR INDUSTRIALIZATION
 To enhance the sale of an industrial product.
 To have influence of the industry over the market.
 To achieve the maximum possible profit.
 To make customer base for an industry.
 To understand the demand of the consumer.
 To balance between supply and demand.
 To sustain the industrial branding over the retailing market.
 For promotional purposes of the industry.
 To survive in the perfect competition.
 To alleviate the monopoly in the market and industrial system etc.

INDUSTRY & ENVIRONMENT
An industry is a sector that produces goods or related services within an economy.
The environment encompasses all living and non-living things occurring naturally,
meaning in this case not artificial.
Impacts of industry over environment:
 It leads to the depletion of natural resources.
 It leads to air pollution, water pollution and soil pollution.
 Global warming, climatic changes are the major consequences of industrialization.
 It causes acid rain.
 It leads to the degradation of land quality.
 It leads to the generation of hazardous waste whose safe disposal become a big
problem.
 These industries are responsible for the following adverse diseases and ill effect
like silicosis and pneumoconiosis, tuberculosis, skin diseases and deafness.
 Metallic contaminant like Cd, Zn, Hg etc., destroy bacteria and beneficial
microorganisms in the soil.
 Industrial wastes including toxins enter in the food chain causes number of
undesirable effects to living beings and animals.
 Industrial effluent damages the natural biological purification mechanism of
sewage treatment causing several soil and water borne diseases.

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MS 2018, GES, CU
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 Radioactive industrial pollutant cause undesirable disease when food containing
radio-nuclides is taken by man.

INDUSTRIAL POLICY OF BANGLADESH
The industrial policy of Bangladesh has the following aim, goals and task.
 To expand the production base of the economy by accelerating the level of
industrial investment
 To promote the private sector to lead the growth of industrial production and
investment
 To focus the role of the government as the facilitator in creating an enabling
environment for expanding private investment and sustained economic growth
 To attract foreign direct investment in both export and domestic market
oriented industries to make up for the deficient domestic investment resources,
and to acquire evolving technology and gain access to export markets
 To ensure rapid growth of industrial employment by encouraging investment in
labor incentive manufacturing industries including investment in efficient small
and cottage industries
 To generate female employment in higher skill categories through special
emphasis on skill development
 To raise industrial productivity and to move progressively to higher value added
products through skill and technology upgrading
 To ensure a process of industrialization which is environmentally sound and
consistent with the resource endowment of the economy
 To effectively utilize the existing production capacity
 To coordinate all macroeconomic policies
 To develop indigenous technology and to expand production based on domestic
raw materials and inputs
 To rehabilitate and support deserving sick industries

EPZ AND ITS ROLE OF INDUSTRIALIZATION
The Export Processing Zones of Bangladesh includes-
1. Adamjee Export Processing Zone, Siddhirganj, Narayanganj
2. Chittagong Export Processing Zone, South Halishahar, Chittagong
3. Comilla Export Processing Zone, Cumilla
4. Dhaka Export Processing Zone, Savar, Dhaka

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MS 2018, GES, CU
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5. Ishwardi Export Processing Zone, Ishwardi, Pabna
6. Karnaphuli Export Processing Zone, North Patenga, Chittagong
7. Mongla Export Processing Zone, Mongla, Bagerhat
8. Uttara Export Processing Zone, Nilphamari
9. BEPZA Economic Zone, Mirsharaie, Chittagong

According to Hossain, the role of EPZ is as below-
 Industry: GDP growth of broad Industry sector was 8.43% in the last year
compared to 7.10% in the preceding year. The performance of the industrial
sector was mainly based on the growth in textile and wearing apparel, drugs and
pharmaceuticals, fertilizer, petroleum products, glass 2 products, cement,
electronics, footwear and food and beverage industries. In the last year the
contribution of this sector in national income is 28.44%.
 Agriculture: Agriculture: still holds an important position in our national economy
in creating employment and increasing national income. In the last year the
contribution of this sector in national income is about 21.91%. Growth in
agriculture has increased to 2.41%. Growth during the year preceding year was
3.29%. Fish production in the last year has increased by 5.03%. Growth in the
sector during the preceding year was 3.6%. Food production during the last year
was about 30.05 million tons compared to 27.90 million tons in the year preceding
year.
 Services: The service sector continued to the largest contributor to the
country’s real GDP growth in 2004-2005. The sector grew by 5.7% during the
year, compared to 5.4% in 2003-2004 and contributed 49.65% to GDP growth.
All sub-sectors shared in the overall growth of the services sector activities, but
relatively higher growth rates were registered by education (7.66%), transport,
storage and communication (6.64%), hotel and restaurant (7.29%), financial
services (6.77%), public administration and defense (5.75%).
 Investment and savings: Gross national savings during the year 2004-05 was
26.50% of GDP compared to 25.40% during the previous year. In the FY 2004-
05 the rate of total investment was 23.14% of GDP in which the shares of public
and private sector were 5.90% and 18.50% respectively. Total investment
registered by BOI was US$ 19,992 million out of which US$ 8763 million was
foreign investment. Investment made by in the EPZs was US$ 987 million.
(Industry: 29%, agriculture: 21%, service: 50%)

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MS 2018, GES, CU
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INDUSTRIALIZATION VS URBANIZATION
Interrelationship between urbanization and industrialization is as below-
 Measured in terms of the number of people living in urban areas, urbanization has
shown a phenomenal rise in India. From 26 million in 1901, the urban population
today stands at 285 million. But it still constitutes only 27.8 per cent of the total
population. This implies that the country is still rural with 72.2 per cent of its
people living in villages. The current decadal growth rate is 36.4 per cent.
 While there are 3,609 urban settlements in India, rural settle­ments number
5,80,781, ranging from those that have a population of over 10,000 persons to
those with even less than 500 people. Over the years, many large villages and
towns have expanded and become more urban. Some villages have got absorbed
into the expanding cities.
 The arrival of urban amenities in several villages has changed their profile. Many
villages now have electricity – and, therefore, radio and TV – and better quality
link roads. As a result, rural-urban interactions have increased.
 Urbanization is closely associated with industrialization. After liberalization,
Indian economy is fast expanding. With the introduction of the new industrial
policy in 1991, there has been substantial deregulation.
 As a result, many industries have been set up. Even those industries that were
earlier reserved for the public sector have been opened up. The defense industry
has been opened up to the private sector, with foreign direct investment (FDI)
of up to 26 per cent.
 As a result, there has been a dramatic increase in production. For example,
cement production has gone up from 623 tons in 1994-95 to 1,234 tons in 2003-
04; fertil­izers, from 104.38 tons to 142 tones; and coal from 2,537.3 tons to
3,557.2 tones. The vehicle industry has shown robust growth.
 The sale of passenger cars, multi-utility vehicles, commercial vehicles, and two
and three wheelers has increased from 41, 15,894 in 1998-99 to 67, 94,812 in
2003-04. The ever-increasing number of vehicles on the road has affected the
infrastructure of the settlements, has contributed to traffic jams and road
accidents, and increased expenditure on gasoline. It has also affected the
lifestyle of the people.
 The last few decades have also seen growth of agro and rural industries. This has
brought benefits to the rural non-farm sector and the overall growth of the

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MS 2018, GES, CU
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national economy. Banking has also extended to the villages. Rural life today is
becoming different from what it was in the 1950s as a consequence of
urbanization, industrialization, and the spread of literacy.












Mohammad Mohaiminul Islam
Dept. of Geography & Environmental Studies
Faculty of Biological Science
University of Chittagong
[email protected]