Ship-breaking Industries through the Lens of Dependency: A Comparative Analysis of Gadani & Chittagong Yards

Abstract

Ship breaking provides opportunities for raw material recycling, improved economic conditions for developing maritime nations, and economic security for local laborers. In the world, Gadani is considered Pakistan's third-largest breaking yard, located near the northeastern shore of the Indian Ocean, along with Chittagong in the same region. Bangladesh has one-third of the total number of shipbreaking yards worldwide, and thus holds the position of the second-largest breaking yard worldwide. This research investigates the similarities and differences in the respective economic impacts, working conditions, and regulatory regimes of these industries. Dependency theory examines how global economic structures perpetuate asymmetric power relations between the developed core and the developing periphery. “Dominance amidst dependence”: both countries are performing well in terms of size and capacity in international markets, but remain dependent on Global North economies for the supply of end-of-life ships and machinery. This research focused on the financial dependency of both yards on the supplies of raw materials and labor resources. The paper highlights, based on a comparative qualitative approach, how core states like the EU, US, and Japan export costs to peripheral states, which have to bear socio-ecological burdens. In the absence of structural changes, both yards will remain dependent on external support, as local elites collaborate with global capital to maintain a controlled industrial regime.