Chandan Sapkota reports on the death of the garment industry. As he points out, bandhs were far from the main cause – incompetence or negligence over more than a decade are they key reasons. However:
Frequent strikes along the main highways led to an increase in transportation cost. This also increased the risk of delivery problems, leading to an escalation in the final price of garments. It further eroded the price competitiveness of Nepalese garments. To make matters worse, trade unions and militant youth wings made a mockery of property rights by occupying and confiscating private property, and forced an increase in wages and allowances, irrespective of labor productivity. The lack of a regular power supply also aggravated the situation.
If this is the case for the garment industry, how is any other industry coping?
