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Fisheries Subsidy in an LDC: The Case of Marine Fisheries Sector in Bangladesh

This study examines the policies and sustainable management of the marine fisheries sector in Bangladesh, with a focus on the impact of trade policies and the estimation of exploitation status. The findings have implications for poverty reduction, resource management, and future policy recommendations.

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Fisheries Subsidy in an LDC: The Case of Marine Fisheries Sector in Bangladesh

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  1. Fisheries Subsidy in an LDC: The Case of Marine Fisheries Sector in Bangladesh By Fahmida Khatun Mustafizur Rahman Debapriya Bhattacharya April, 2004 CENTRE FOR POLICY DIALOGUE (CPD) B A N G L A D E S H a c i v i l s o c i e t y t h i n k – t a n k

  2. ISSUES FOR DISCUSSION I. Marine Fisheries Sector in Bangladesh • Trade Policies for the Fisheries Sector • III. Estimation of Exploitation Status of Marine Fisheries • IV. Policies to Promote Sustainable Management • V. Implications of the Study Findings

  3. MARINE FISHERIES IN BANGLADESH • Enormous potential for marine fisheries sector in Bangladesh • 710 kilometer long coastline • Accounts for 20% of total fish production • 5% trawl fishing, 95% artisanal fishing • Annual growth of production about 4% during 1990s • Export of frozen fish is a prominent economic activity • Employment increased at 5% per annum during 1990s • around 1 million families directly involved  V. Policies to Promote Sustainable Management of the Marine Fisheries in Bangladesh

  4. TRADE POLICIESIN BANGLADESH • 2.1 Bangladesh - An Active Trade Policy Reformer • reduction in the tariff levels • narrowing of dispersions in the tariffs • withdrawal of import bans • withdrawal of import quota restrictions • 2.2 Effect • Reduction in tariff rates • Reduction in a number of commodities under quota restrictions • Real growth of the export sector • Structural shifts from traditional to non-traditional exports • Created a conducive policy environment favouring export • oriented activities

  5. 2.3 Trade Policy for the Fisheries Sector • Marine fisheries sector promoted through general policy support • Rise of frozen food exports is a direct outcome of trade policy • Direct support for marine fisheries in the form of subsidies etc. negligible • Amount of subsidy has not undergone any change over years

  6. III. ESTIMATION OF EXPLOITATION STATUS OF THE MARINE FISHEREIS IN BANGLADESH 3.1 Methodology • Historical Review:discussion on the policy evolution, regulatory framework, the intervening factors and the consequences • Statistical Analysis:quantitative techniques to examine sustainability of the sector • Participatory Approach:consultationwith a broad cross-section of stakeholders

  7. 3.2 Data Base • Primary • Field level data from four marine fishing sites • Debriefing of leaders of the trade bodies: • - Bangladesh Marine Fisheries Association • - Bangladesh Frozen Food Exporters Association • - Chittagong Chamber of Commerce and Industries • - Apex Foods(a leading private enterprise) • Secondary • Bangladesh Bureau of Statistics • Ministry of Fisheries • Department of Marine Fisheries

  8. Table 4: Estimation Results

  9. 3.3 Study Findings - Yield level has not reached MSY • - Applied effort is also lower than MSYlevel effort • - Derived total revenue at MSY is much higher than total cost • General incentives package have no detrimental effect on fishing practice • - Still large scope for applying more efforts in the exploitation • as well as development of the sector

  10. IV. POLICIES TO PROMOTE SUSTAINABLE MANAGEMENT OF MARINE FISHERIES IN BANGLADESH • Assessment of the sector • Integrated approach • Emphasis on small scale fishing • Support for infrastructure development • Monitoring, control and surveillance • Smooth operation of licensing system • Regional cooperation • Capacity building

  11. V. IMPLICATIONS OF THE FINDINGS • (a) Classical example supporting the counter-factual proposition - in the absence of market distorting subsidies or preferential fishing agreements, the country may improve its foreign revenue from exports and still maintain a sustainable stock • (b) Impact of the Study • Poverty Reduction Strategy (PRSP): Importance on natural resource • Fisheries Sector Review 2003: A no. of policies suggested • New Fisheries Project: 9 new projects with emphasis on • Community based, livelihoods aspects, environmental dimensions • Awareness of the stakeholders including the associations

  12. (c) Follow- Up by CPD - Study on Fish Trade Liberalisation - Suggestion in the advisory committee of the WTO cell at the Ministry of Commerce, GOB - Member of the advisory committee at the Ministry of Agriculture - Consultation with the stakeholders

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