Textile and clothing trade represents 5.7 percent of world exports. In four decades, world textile and clothing trade increased by more than 60 times (actually faster than total goods trade, which grew 48 times), from less than $6 billion in early 1960s to $342 billion at the beginning of the 21st century.
The more labor-intensive clothing sector has grown faster than textiles and represents 57 percent of world trade.
In the late 80s, many developing countries overtook industrialized countries in their share of textile and clothing exports, and now account for 50 percent of world exports of textiles and 70 percent for clothing.
The sector is particularly important for developing countries, and for many of them it is the most important industrial sector, in terms of exports (and thus as a source of foreign income) as well as in terms of employment and value added.
In the case of quite a number of developing countries - and especially some least developed countries and small developing countries - it would be possible to speak about a dependency on textile and clothing sector: for some the sector represents up to 90 percent of total industrial exports and up to over 50 percent of industrial employment.
Such dependency is compounded by a concentration in some markets, those of industrialized countries and especially the EU and the US. In a number of cases, such concentration has been facilitated, among other factors, by the existence of high tariffs and other obstacles to trade among developing countries.

Iran has potential to become a major producer and exporter of textiles.

Opportunities
Today's global economy provides opportunities for increased international trade and thus the creation of economic wealth.
As a labor-intensive manufacturing sector, the textile and especially the garment industry is considered to be the first step in the strategy towards economic growth and development as well as diversification for primary-exporting countries in terms of trade gains. Moreover, as the demand for textiles and clothing steadily grows in the world as countries become wealthier, the development of an export-oriented textile and clothing industry has been seen as an economic ÒspringboardÓ of many developing countries around the world in their industrialization process.
In fact, the developing world witnessed a widespread shift from import substitution to export-led growth. In the last decade, almost 70 percent of world clothing was exported from developing countries.
Since the eighties, there has been a major transformation in how the international economy is organized, leading to a strong trend in the regionalization of global trade.
Developing country exports have risen more rapidly than world exports over the past half-century. Developing countries now account for more than a third of global exports, and nearly one-fourth of global exports of manufacturing goods.
The importance of the textile and clothing industries in many countries like Iran is relatively insignificant in terms of both production and exports, if we compare it with some developing countries. Overall they amount to slightly more than five percent of exports and less than five percent of manufacturing value-added.

Textile and garments had the highest share of industrial exports in the past decade.

Long History
The textile industry has a long history in Iran. Having a long historical and industrial background in the sector and an abundance of raw materials, manpower, adequate infrastructures, as well as cheap labor and plenty of energy, Iran has the potential to become a major producer and exporter of textiles and clothing.
IranÕs textile sector, as one of the countryÕs oldest industries, is now in need of major refurbishment to cope with the latest emerging technologies and rivals.
Less than two centuries ago, Iran was a leading exporter of textiles world over, famous for its high quality and unique designs, samples of which could today be found in museums in Asia and Europe.
The industry is mainly concentrated in the provinces of Isfahan, Yazd and Tehran and also to a lesser extent in Gilan and Mazandaran.
Textile units have also been emerging in a number of other provinces in recent years, indicating that the industry is eventually spreading around the whole country.
Cloth and garment exports have had the highest share of industrial exports in the past decade. Among non-oil exports, the two have constituted the higher share when considering hand-woven carpets and gelims.
From employment point of view, the textile industry has emerged as a major labor-intensive sector.
However, lack of state support for this employment and export-intensive sector, uninspiring designs due to absence of creativity and unfamiliarity with the latest styles and fashions, low quality, poor technological, managerial, engineering, production and marketing capabilities, inadequate organization of the supply chain, lack of contact with global producers mainly with the aim of using their expertise and experience, low foreign investments and non-existence of (free) trade agreements with target markets are among challenges facing the sector.
Could ÔMade in IranÕ be the next label to appear in some of the worldÕs leading fashion brands?

Lack of state support and poor technological, managerial and marketing capabilities are among challenges facing the textile sector.

Iran exported garments worth $117.2 million in the nine months from March to December 2004 according to a report released recently.
Several European firms are already looking at investing in IranÕs garment and textile industry. Given the availability of raw materials, large number of manufacturing facilities and cheap labor mean foreign investors could soon come in. There are opportunities for manufacturing joint ventures, plant and machinery sales - and easy access to export markets with a potential 300 million customers.

As penned by their own theoreticians, the majority of conservative MPs only took part in the seventh parliamentary elections because they believed that through significant structural reforms it would be possible to momentarily heal the sick economy. However these types of reforms are in complete contrast to all national economic measures taken so far.
Nine months after the Seventh Majlis convened, such a pledge from conservative MPs in charge of devising economic policies has raised mixed reactions from among many conservative politicians, experts and the press, so much so that some of their former executive bodies and so-called economic experts released a statement in protest.
The statement was similar to a move taken some four years ago by their reformist counterparts against the industrial development strategy.
Apart from starting a debate, the reaction of MPs and experts on the statement, turned into one of the most intriguing scientific, economic and political discussions in recent memory.
Several former conservative politicians and executive bodies, who insist on being experts on the economy without any links to political and financial entities, reviewed the policies of conservative MPs in their first statement and argued that they were Òsupporting economic rule of the government.Ó
In a second statement, issued because Òthe first one failed to get any attention from the MPsÓ they once again scrutinized all economic measures taken by parliament.
However, once again MPs in charge of making economic policies in parliament had no reaction to the second statement either. In several press releases they only stressed that these Òissuers of the statement who were the very same executives that led the national economy into shambles cannot even accept any gradual economic reform by those who want to take firm measures in contrast to the principles of the World Bank and international organizations.Ó
Certain economic policy makers like Hassan Sobhani, Ahmad Tavakoli and others gave no attention to the second statement in press releases either, and argued that Òparliament knows what it is doing.Ó
It seems that complete inattention of former economic experts, now policy makers in parliament, to the statement of former policymakers, now economic experts outside of parliament, has come as a blow to the latter as it was for a specific reason that they decided to issue a second statement. When parliament decided not to pay any attention to the second statement either, in an act of desperation they once again put in plain words their past viewpoints in the conservative press. But what is the reaction of other MPs?
It appears that the MPs, particularly conservative economic policymakers who comprise majority in the Seventh Parliament, do not want to give any attention to these economic views. All we have to do now is to wait and see what the next move of these so-called Òeconomic expertsÓ will be in their quest against the will of parliament and economic reforms.
What seems apparent at the moment is the fact that no other statement on the subject of elections, reaction of so-called economic experts to Majlis ratifications or press releases would ever have any effect in the future either.