Prepared for: Sheikh Morshed Jahan Course Instructor: Bangladesh Studies (K202) Prepared by: Rakshanda Zihan Roll No # 72, Section- B BBA, Batch 19th Institute of Business Administration, University of Dhaka, Dhaka March 31, 2013 Market Failure: Market Failure is an economic situation that occurs in free market economy.
When in any given market, the quantity of a product demanded by consumers does not equate to the quantity supplied by suppliers, market failure occurs.This is a direct result of a lack of certain economically ideal factors, which prevents equilibrium. Due to market failure, the social costs of producing the good or service are not minimized, and this results in a waste of some resources. It can also occur when personal needs are met at the cost of social well-being. One of the reasons of market failure is Negative externalities: for e.
g. the effects of environmental pollution causing the social cost of production to exceed the private cost. Market failure of Dyeing Industry in Bangladesh: There is free market economy in the dyeing Industry of Bangladesh.The textile dyeing and washing industry play an important role in the economic growth as well as the environmental sectors of Bangladesh. The textile dyeing industries has been condemned as being one of the world’s most offenders in terms of pollution.
There are many dyeing industries in Bangladesh which are mainly located at Gazipur and Narayanganj industrial area. Almost all Readymade Garment (RMG) factories require textile and garment washing-dyeing-finishing (WDF) services. There are about 1,700 washing dyeing units in Bangladesh.The liquid and solid pollutants that are being generated by the WDF units are negatively affecting the lives of people living around these facilities. The known negative impacts include long term damage to arable lands; aquatic ecosystem of the low lying wet lands and inland waterways, drinking water and health of the general population living in the vicinity of the clusters.
Though this industry plays an important role in the economic growth of Bangladesh but the cost of social and environment well-being is high.Negative Externalities of Dyeing Industry: The textile dyeing industries of Gazipur and Narayanganj generate large amount of effluents, sewage sludge and solid waste materials everyday which are being directly discharged into the surrounding channel, agricultural fields, irrigation channels, surface water and these finally enter in to Buriganga, Turag and Shitalakkhya River. Textile and dyeing industrial effluents may cause alteration of the physical, chemical, and biological properties of aquatic environment by continuous change in temperature, odor, noise, turbidity etc. hat is harmful to public health, livestock, wildlife, fish, and other biodiversity. The presence of dyes in surface and subsurface water is making them not only aesthetically objectionable but also causes many water borne diseases, viz. mucous membrane, dermatitis, perforation of nasal septum and severe irritation of respiratory tract.
Contamination to this aquatic system brings serious threat to the overall epidemic and socio-economic pattern inside. Industrial effluents impart a minor fraction of chemical load to the environment; its integrity renders the environmental quality fairly deplorable.For this, nearly 30 numbers of villages at Gazipur and a large number of people living near the D. N. D (Dhaka-Narayanganj-Demra) Embankment area are now being threatened due to the environmental degradation. People who live in these areas are utilizing surface water for their house hold washing, bathing, irrigation, fish culture and other necessary works.
Furthermore no systemic data had been obtained on water quality of these areas. So, proper analysis is needed to assess the pollution level also for the protection of environment and natural resources.Such information is important for the authorities to take proper action in preventing pollution of the area for the good health of the population. Solution: To help this market failure companies in this industries should be brought under strict government policies which will mandate them to abide by the environmental laws in order to preserve the social interest. The pressure from apparel retailers and consumers for improved environmental performance is increasing.
If Bangladesh is to maintain its competiveness in the garment sector, it will have to tackle the problem of industrial pollution. In response to this, the Government of Bangladesh has already tightened the environmental laws. Effluent treatment plants (ETPs) for washing and dyeing industries have become mandatory. If all the factories do not install appropriate ETP and do not run them properly then there will be an unequal price competition among fabric producers where the honest ETP owners will always lose the battle.While it is easy to blame the private sector for being disengaged in the battle against environmental pollution, it is hard for industries to find employees that possess the requisite knowledge, information and skills. There is a dearth of environmental specialists in the market.
To date, no formal training courses in Bangladesh enable personnel of ETPs to effectively manage, operate and maintain their ETPs. So Bangladesh Government should seek foreign help to ensure proper training to the local personnel and equip them with necessary tools to preserve the environment.Proper management of wastewater will reduce the overall volume of effluent. Not all effluent in a dyeing or a textile wet processing plants are equally harmful for the environment so measures should be taken according. Conclusion: It is imperative to make sure that social well-being is not sacrificed at any cost.
Bangladesh is already vulnerable to climate change. So it should be made sure that the environment is not further polluted within the country. Bangladesh is already suffering due to scarcity of drinking water. Further water pollution will make the situation worse.The environment must be preserved by the Bangladesh Government and the people of the country as much as possible for the sake of their own existence.
References: 1. M. M. Islam, K. Mahmud, O. Faruk ; M.
S. Billah. M. (2011). Textile Dyeing Industry in Bangladesh for Sustainable Development.
International Journal of Environment Science and Development, Vol. 2 (No. 6), pp. 428-436. 2. MD.
R. I. Habib. M. (2009). Backward Linkage in Readymade Garment Industry of Bangladesh: Appraisal and policy Implication.
Journal of Textile Apparel, Technology and Management, Vol. , Issue. 2, fall, pp. 6-7. 3. M.
S. Sultana, M. S. Islam, R. Saha ; M.
A. Al-Mansur. M. (2009). Impact of the Effluents of Textile Dyeing Industries on the Surface Water Quality inside D.
N. D Embankment, Narayanganj. Bangladesh Journal of Scientific and Industrial Research, Vol. 44 (No. 1), pp. 60-80 4.
Bangladesh Center for Advanced Studies: retrieved on March 30, 2013, http://www. bcas. net/projectdetails. php? project_id=70;title=Environment%20Impact%20of %20Textile%20Dyeing%20and%20Printing%20Industries%20in%20Bangladesh