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 civil society think–tank
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ISSUES FOR DISCUSSION
I. Marine Fisheries Sector in Bangladesh
II. 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
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I. 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
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II. TRADE POLICIESIN BANGLADESH
2.1 Bangladesh - An Active Trade Policy Reformer
(a)
(b)
(c)
(d)
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
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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
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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: consultation with a broad crosssection of stakeholders
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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
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Table 4: Estimation Results
MSY: 642,130 tonnes
Actual Yield, 1998: 310,000 tonnes
Effort At MSY: 101,442 horsepower
Actual Effort, 1998: 71,184 horsepower
Total Cost at MSY: US$ 337.7 mln
Total Revenue at MSY: US$ 648.8 mln
Economic Rent at MSY: US$ 311 mln
MSY Yield per unit of Effort: 6.32 tonnes
Actual Yield per unit of Effort: 4.35 tonnes
MSY Rent per unit of Effort: US$ 4.27 mln
Actual Rent per unit of Effort: US$ 3.9 mln
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3.3 Study Findings
-
Yield level has not reached MSY
-
Applied effort is also lower than MSY level 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
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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
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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
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(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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