Abstract
The success of readymade garment exports from Bangladesh over the past two decades has surpassed the
most optimistic expectations. The paper reviews the literature on this industry, presents recent data on the
sector's performance, and evaluates future trends in the international and domestic clothing industry.
More specifically, the paper evaluates the negative impact of the 1998 floods on the industry. It concludes
that although the impact of the flood was unexpectedly benign, the entrepreneurs face important
challenges from the health of the domestic banking sector, the East Asian economic crisis, and the
deregulation of the global clothing business as a result of the phasing out of the Multi-fibre agreement in
the year 2005.