In a dramatic turn of events in Dhaka on Monday afternoon, Sheikh Hasina resigned as prime minister of Bangladesh as chief of Armed Forces General Waker-Uz-Zaman announced that the army was taking over the country and would soon decide on an interim government.
Bangladesh in Turmoil. What Comes Next for Apparel Production?
Renewed protests that broke out Sunday resulted in more than 100 people dead according to local news reports in Dhaka.
Despite the curfew announced at 6 p.m. Sunday, millions of residents in Dhaka and Chittagong were out on the streets Monday afternoon cheering the resignation of the prime minister who jettisoned away from Dhaka to safety in Agartala, India.
The situation is eerily reminiscent of the scenario in Colombo a little over two years ago when protesters stormed the official residence of President Gotabaya Rajapaksa’s in the capital of Sri Lanka in May 2022 . In this case, protestors stormed Hasina’s home on Monday, looting and pillaging, according to local netizens on X.
In a televised address to the country at 4 p.m. Monday, General Waker-Uz-Zaman said that the country had “suffered a lot.”
“The economy has been hit, many people have been killed—it is time to stop the violence. I am taking full responsibility,” he said, adding that those responsible for the deaths in the past weeks would be put on trial. “Please support us and stop violence. If you work with us, we can move towards a proper solution. We cannot achieve anything through violence,” he said.
The situation in Bangladesh has been escalating over the last few weeks , starting with peaceful protests by students in June, calling for an end to a quota system for government jobs. The violence that erupted between protesters and police at Dhaka University claimed more than 300 lives according to police reports, while unofficial estimates have been much higher.
Rather than expressing fear of the sudden change, several manufacturers told Sourcing Journal that “now we can expect stability” and that only those “close to the prime minister were in the steering seat for increased business.”
The spirit of celebration on the streets appears to be reflected in business circles as well where many have been quietly saying for months that it was time for change as the ruling party regime had grown increasingly authoritarian.
While several manufacturers who did not want to be named said that it was time for celebration, others expressed concern over the loss of business that would result from changing leadership and affiliations that are often understood unofficially but never discussed openly.
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Manufacturers in the apparel industry are often also affiliated with political parties, often with the party in power, and the Awami League has been in power in Bangladesh for the last 15 years. In January, the party won its fourth consecutive term with Hasina returning to her position, albeit with a boycott of the elections by the opposition party.
Mahmud Hasan, who owns six factories at different locations in Bangladesh, told Sourcing Journal that more than business, everyone was focusing on the important issues surrounding basic rights. “I’m a normal citizen, and that is what we are concerned about. These are not isolated things. It is not just about the business, but the national issue right now is just about the basic rights and hopefully everything will be normal very soon,” he said. While a curfew was earlier announced for three days, he said that his expectation was that it would be withdrawn sooner.
Mostafiz Uddin, managing director of Denim Expert and the founder and CEO of the Bangladesh Apparel Exchange, told Sourcing Journal that he would term this as a “win of the people following the instability of the last three weeks.”
“Stability is one of the prerequisites for business, and since this will be restored now, I believe business will come back to normal state. It is time to start looking forward,” he said.
The timing, many manufacturers said, was critical as Christmas orders were being processed and delays would result in major losses for the country which is the second biggest exporter of apparel globally, after China. Apparel exports account for 85 percent of the nation’s total exports, with more than four million people employed in the industry.
Many of the manufacturers, including Uddin, said that they were calling for global buyers and retailers to stand by them at this critical juncture and that the expectation of unrest coming to an end was very high.
Military coups are not unknown in Bangladesh, with its checkered history of military takeovers. Sheikh Hasina’s father Sheikh Mujibur Rahman was assassinated in a military coup on August 15, 1975.
Sourcing Journal also contacted Western organizations and brands.
AAFA President and CEO, Steve Lamar said, “We continue to watch the situation closely and have urged all parties to approach this dispute peacefully. Our primary goal has been to keep our workers safe and minimize disruptions. We hope the recent Bangladesh government decree implementing the Supreme Court decision will effectively resolve the situation so that the industry can continue to support livelihoods across the country.”
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