Publication:
Bringing HOPE to Haiti's Apparel Industry : Improving Competitiveness through Factory-level

Loading...
Thumbnail Image
Files in English
English PDF (2.36 MB)
799 downloads
English Text (279.37 KB)
1,666 downloads
Published
2009-11-01
ISSN
Date
2012-03-19
Author(s)
Editor(s)
Abstract
In October 2008 the United States Congress enacted legislation that gave the Republic of Haiti expanded, flexible access to the U.S. market for its apparel exports. The Second Haitian Hemispheric Opportunity through Partnership Encouragement act of 2008 (HOPE II, updated from the original legislation passed in 2006) was welcomed for its potential to revitalize a decaying industry, attract new foreign investment, expand formal sector employment, and jumpstart growth and opportunity for Haiti's people. The purpose of the analysis of Haiti's apparel value-chain in this report is to provide a comprehensive view of the advantages and challenges of manufacturing in Haiti relative to manufacturing in the Caribbean and Central America and elsewhere. It situates Haiti's attributes and suggests priorities for improving its competitiveness relative to that of other suppliers. An apparel buyer in the United States today juggles an impressive list of potential suppliers from China and elsewhere in Asia and from Latin America and beyond. Each country offers a unique combination of workforce skills, business environment, costs, 'full-package' services, proximity to raw material or to end markets, preferential access to the U.S. market, and thus competitiveness. This report helps readers to see how Haiti fits into this ever-changing global apparel market kaleidoscope.
Link to Data Set
Citation
World Bank. 2009. Bringing HOPE to Haiti's Apparel Industry : Improving Competitiveness through Factory-level. © World Bank. http://hdl.handle.net/10986/3168 License: CC BY 3.0 IGO.
Digital Object Identifier
Associated URLs
Associated content
Report Series
Other publications in this report series
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    How to Sustain Export Dynamism by Reducing Duality in the Dominican Republic
    (Washington, DC, 2015-03-02) World Bank
    This report analyzes export competitiveness in the Dominican Republic drawing from the Trade Competitiveness Diagnostic methodology (Farole and Reis, 2012). Dominican exports fare well in terms of performance, sophistication, and survival in Special Economic Zones. Three main challenges are identified: 1) quality issues and rejection of agro exports in the US border; 2) the role of Special Economic Zones in the new decade and the lack of backward linkages; and 3) excessive concentration in terms of markets that is not addressed by a fragmented institutional setup.
  • Publication
    Africa's Silk Road : China and India's New Economic Frontier
    (Washington, DC: World Bank, 2007) Broadman, Harry G.; Isik, Gozde; Plaza, Sonia; Ye, Xiao; Yoshino, Yutaka
    As illustrated in Africa's Silk Road: China and India's New Economic Frontier, the new South-South economic relations present real opportunities-as well as challenges-to African countries. They also highlight the need for complementary reforms by China and India to support more vigorous African development. In analyzing Africa's intensifying relationships with China and India, Africa's Silk Road examines the trends to date and considers the implications of these developments for the economic future of the African continent. The diagnosis cautions that the opportunities engendered by China and India's trade and investment with Africa will not necessarily be converted into growth and poverty reduction in the region. A critical finding of the study is that it is not just the quantity of these trade and investment flows that matters-it is also the quality of the overall commercial relationships underlying as well as shaping these flows. This paper contains the following headings: connecting two continents; performance and patterns of African-Asian trade and investment flows; challenges at the border - Africa and Asia's trade and investment policies; behind-the-border constraints on African-Asian trade and investment flows; between-the-border factors in African-Asian trade and investment; and investment-trade linkages in African-Asian commerce - scale, integration, and production networks.
  • Publication
    Incentives, Exports and International Competitiveness in Sub-Saharan Africa : Lessons from the Apparel Industry
    (Washington, DC, 2011-05-09) Conway, Patrick; Shah, Manju
    This country-level analysis of international trading patterns examines all sub-Saharan (SSA) countries for which trade data exist. Firm-level analysis is restricted to five countries: Kenya, Mauritius, Madagascar, Swaziland, and Lesotho, for which enterprise surveys are available from the period just before or after the elimination of the final quotas in 2005, under the Agreement for Textiles and Clothing (ATC). Comparators were selected from Asia (Bangladesh, Indonesia, Vietnam), and North Africa (Morocco, Egypt), as benchmarks for the SSA countries, and also to examine their performance relative to normal world trading patterns and volumes. The findings, along with corresponding policy recommendations, are summarized, and key issues are addressed, including which countries adjusted to this with lowest cost; what lessons can the SSA countries draw from this episode in their negotiation and exploitation of trade preferences offered by the US, EU and other potential markets; and how does an SSA country create or attract an export-ready apparel firm. Does the poor performance of sub-Saharan African (SSA) exporters in the period since the removal of quotas in 2005, imply that SSA countries do not have a comparative advantage in apparel, and thus should focus development efforts on other sectors? This report focussed on the evolution of the apparel trade with the removal of ATC quotas. It is important, though, to recognize that African apparel exporters have now been through two negative shocks, the end of trade diversion with the ending of the ATC quota system, and the trade elimination through demand reduction in the US and EU in the aftermath of the financial crisis of 2008.
  • Publication
    Trade Reform in Vietnam : Opportunities with Emerging Challenges
    (World Bank, Washington, DC, 2003-06) Auffret, Phillipe
    In 1986 Vietnam initiated a transition from a centrally planned economy to a market-oriented economy where the government would keep playing a leading role. These renovation (doi moi) policies were successful at generating economic growth and reducing poverty. In the ten-year socioeconomic strategy endorsed by the Ninth Party Congress in April 2001, the authorities further articulated their development objectives in terms of economic growth and poverty reduction. To reach these objectives, the government indicated that its structural reform priorities were to change Vietnam's trade and financial policies, liberalize the climate for private investment, increase the efficiency of public enterprises, and improve governance. The author argues that the pace of implementation of trade reform-which has been impressive so far-is raising new challenges. On one side, fast liberalization of trade reform may soon conflict with the slow pace of implementation of other reforms, including restructuring of state-owned enterprises and state-owned commercial banks. On the other side, Vietnam would greatly benefit from fast implementation of trade reform and particularly fast accession to the World Trade Organization (WTO), especially after China's recent WTO accession. Auffret concludes that implementation of trade reform will be a testing ground to reveal the extent of Vietnam's commitment to a market-oriented economy.
  • Publication
    Vertical and Regional Integration to Promote African Textiles and Clothing Exports : A Close Knit Family?
    (Washington, DC, 2007-07) World Bank
    Apparel production is especially labor intensive, with low start-up investments and easily transferable technology. Furthermore, the labor requirements can be easily met with low and semi-skilled workers, especially women. As a result, many countries with competitive labor costs, especially in South and East Asia, have captured significant shares in the world market during the last four decades. Despite the potential development benefits and their various sources of comparative advantage, few African countries have managed to establish a presence in the global textiles and apparel markets until recently. As a result, Africa as a whole remains a net importer of textiles and clothing even though it is a net exporter of cotton. The future of apparel exporters in sub-Saharan Africa is, however, rather uncertain as they face two major challenges for their products: i) increased competition from large, low-wage producers such as India, China, Bangladesh and Pakistan following the phase-out of quotas after the expiry of the ATC; and, ii) the expiration of the third-country fabric derogation under AGOA scheduled for 2013. This study explores the potential for regional and vertical integration to overcome these challenges and identifies obstacles to this. Timing is important since both the EU and the US have recently imposed trade restrictions on China (until 2008) to protect their domestic textiles and clothing industries. These safeguards provide a brief opportunity for sub-Saharan African producers to integrate their textiles and clothing industries both domestically and regionally.

Users also downloaded

Showing related downloaded files

No results found.