Textile and clothing production and trading- the way to industrial economy development

Abstract

The expansion of the textile and clothing industries is inextricably linked to the socioeconomic advancement of all nations in the world that are struggling to come out of poverty and backwardness. The fact that the textile and clothing industries have successfully transitioned from an agricultural to a manufacturing-based economy justifies the continued use of this strategy by all emerging nations worldwide.  From Europe to North America, then to Asia, South America, and other nations on other continents, the textile and clothing sector has been successfully used for socio-economic transformation. In every country it traversed, the textile and clothing guaranteed socioeconomic progress. Ethiopia started the implementation of agricultural development led industrialization (ADLI) plan in 1995 after realizing the significance of textile and clothing for its socioeconomic development. Unfortunately, despite the potential the country has for the development of the textile and apparel industries, the plan has not been implemented effectively, and as a result, the growth of the industry and the economic and social outcomes from the sector have not been as substantial. Thus, the Ethiopian textile and garment clothing sector industries are facing multiple challenges such as backward linkage, delivery and demand side linkage, employee-related problems, poor utilities and facilities, and weak control and coordination. The production and trade of textiles and clothing is the only industrial sector that contributes to industrial economic development for the least developing nations. Therefore, policy revision and problem-solving are essential to maintain this sector’s industrial development in Ethiopia in order to realize a large industrial economy in the country.