A pathway for sustainable
growth in Bangladesh
A Report on
Blue Economy
A pathway for sustainable growth in Bangladesh
Submitted to:
Md. Murshikul Alam
Professor, Dept. of Humanities, BUET
Khanam Nargis Sultana
Assistant Professor, Dept. of Humanities, BUET
Submitted by:
Sheikh Shadman Hasan, ID – 1912026
MD. Jubair Hasan, ID – 1912027
Auvi Dev Nath, ID – 1912028
Ani Biswas, ID – 1912029
Fatema-Tuz-Zohora, ID – 1912030
Level-2, Term-1
HUM 102 Sessional
Naval Architecture & Marine Engineering
Bangladesh University of Engineering & Technology
ii
Forwarding Letter
09th January, 2022.
To
Mr Murshikul Alam
Mrs Nargis Sultana
Department of Humanities,
Bangladesh University of Engineering and Technology.
Subject: Submission of report on “Blue Economy: A Pathway for Sustainable
growth in Bangladesh.”
Honourable Teachers,
With due respect, we have much pleasure in submitting the report on "Blue Economy:
A Pathway for Sustainable Growth in Bangladesh". We would like to express our
humble gratitude for choosing the topic, as it is a very relevant and emerging
phenomenon for our country as well as for the modern world.
During the period of preparing this report, we took the help of many reports, books,
articles and research papers from the internet. All of us contributed our best and as a
result, we were successful in completing this report within the given period of time.
In spite of having the limitation of page numbers, we tried our best to make this
report as enriched and informative as possible. We would like to thank both of you for
the valuable support, proper instructions and suggestions that you gave during the
completion of the report.
We apologize for any unwanted mistakes or errors in the report. We have tried our
best to make the report perfect and errorless.
In the end, we would like to thank you again for providing us with such an
opportunity. We hope this report will give an overall idea of the given topic.
Yours faithfully,
Sheikh Shadman Hasan, ID – 1912026
MD. Jubair Hasan, ID – 1912027
Auvi Dev Nath, ID – 1912028
Ani Biswas, ID – 1912029
Fatema-Tuz-Zohora, ID – 1912030
iii
Table of Contents
Topic
Page Number
•
Forwarding Letter…………………………………………………………ii
•
List of Illustrations ……………………………………………………….iv
•
Summary …………………………………………………………………v
•
Introduction ………………………………………………………………01
•
Discussion
•
Maritime Boundary of Bangladesh ………………………………02
•
Sectors of Blue Economy ………………………………………...02
•
Tourism ………………………………………………………......03
•
Fisheries ………………………………………………………….04
•
Aquaculture …………………………………………….………...04
•
Marine Biotechnology & Genetic Resources …………………....05
•
Shipping, Port and Maritime Logistics ………………………......06
•
Natural Resources & Seabed Mining …………………….………06
•
Marine Renewable Energy ………………………………….……07
•
Shipbuilding Industry ……………………………………….……08
•
Contribution of Blue Economy Sectors in Bangladesh ……….….08
•
Challenges of Blue Economy………………………………….….09
•
Conclusion ……………………………………………………………......10
•
Recommendation ……………………………………………………..…..11
•
Appendix …………………………………………………………….…...12
•
List of References …………………………………………………….…..13
•
Glossary………………………………………………………………..….14
iv
List of Illustrations
Fig name
Page Number
•
Tools, concepts and pillars of the Blue Economy……………………....….01
•
Maritime Area of Bangladesh (MoFA,2014b) ……………………………02
•
Blue Economy Sectors ……………………………………………………03
•
Some excellent spots for coastal tourism in Bangladesh …………………03
•
Total Fish Production in 2020……………………………………………..04
•
Aquaculture production scenario in Bangladesh from 1980 to 2018…......05
•
Technical stages of development in marine bioprospecting ….…………..05
•
LPI Comparison among Bangladesh, Germany and India………………..06
•
Emerging Ship Industry in Bangladesh….………………………………..08
•
Contribution of Blue Economy Sectors in Bangladesh ………….……….08
v
Summary
The Blue Economy concept is quickly gaining traction around the world, with the
goal of transforming our economy, lifestyle, and planet in the 21st century.
Bangladesh has a lot of potential in the field of Blue Economy, which is defined as
the sustainable utilization of marine resources. Bangladesh is surrounded by
enormous maritime boundaries and has a plethora of promising marine resources. As
a result, it opens up a plenty of options in Bangladesh's Blue Economy. Tourism,
fisheries, renewable energy, biotechnology, oil and gas, maritime industries and other
Blue Economy sectors have been identified in Bangladesh. Within the present
maritime boundaries of Bangladesh, the productive economic sectors of the Blue
Economy are considered in harnessing the full usage of ocean-based resources. In the
sphere of the Blue Economy, there are also certain problems and barriers to
development, such as regular floods, marine pollution, a lack of skilled workers,
insufficient ocean governance and support and so on. However, good planning and
inter-sectoral coordination of public-private partnerships and investment will build a
strong basis for revenues and economic advantages under the approach of the Blue
Economy .
01
Introduction
The 'Blue Economy' is a new concept that promotes long-term exploitation,
innovation and stewardship of our ocean and its life-giving "blue" resources. It has
opened a new horizon for the economic development of the coastal countries like
Bangladesh utilizing sea and marine resources at the national and international levels.
The Blue Economy concept offers a comprehensive perspective that promotes
economic progress while avoiding harm to other sectors. Professor Gunter Pauli
coined the term 'Blue Economy' in 1994. Since the Third Earth Summit Conference Rio+20 in 2012, the concept has gained traction.
Bangladesh's seas contribute to the country's overall socioeconomic progress through
promoting economic activity across the country, particularly in the southern coastal
zone. Bangladesh has made a number of efforts to ensure the sustainable use of
oceans, seas, and marine resources in order to achieve inclusive development and
SDG-14 goals. For sustainable development, SDG-14 promotes the sustainable use of
oceans, seas, and marine resources. Bangladesh unveiled Delta Plan-2100 in 2020,
which outlines five initiatives for leveraging the Blue Economy's potential. The
government has taken a number of initiatives and measurements to make use of the
maritime economy. All of these, in particular for Bangladesh, include a Marine
Spatial Planning (MSP) guideline that lays out how Blue Economy sectors and
stakeholders should work together to ensure sustainable development.
Fig: Tools, concepts and pillars of the Blue
Economy.
02
Maritime Boundary of Bangladesh
In Bangladesh, discussions on the Blue Economy widely started after the settlement
of maritime boundary disputes with Myanmar (2012) and India (2014), which
allowed the country to exercise sovereign rights over 118,813 sq. km of waters
extending up to 12 nautical miles of territorial sea and a further 710 km of coastline
with an Exclusive Economic Zone (EEZ) of 200 nautical miles in the Bay of Bengal
and a Continental Shelf extending up to 354 nm from the Chittagong coast. (MoFA,
2014b). The Exclusive Economic Zone (EEZ) in the Bay of Bengal creates a huge
opportunity to bring out a sustainable output through the utilization and optimization
of ocean based resources.
Fig: Maritime Area of Bangladesh (MoFA,2014b)
Sectors of Blue Economy
Twenty-six potential Blue Economy sectors have been identified by the MoFA,
including tourism, fisheries, aquaculture, marine biotechnology, maritime trade and
shipping, shipbuilding industries, renewable energy and seabed mining, coastal
protection, marine safety and surveillance for the Blue Economy in Bangladesh.
03
Fig: Blue Economy sectors
Tourism
Like in other coastal countries, marine tourism could be one of Bangladesh's most
important sources of income. There are plenty of opportunities to develop this sector
in the country's onshore and offshore coastal areas. For example, Cox's Bazar Beach,
located in Chittagong, Bangladesh, is the world's longest natural sea beach, running
120 kilometers (75 miles). It is the top tourist designation in Bangladesh. Every year,
many Bangladeshis and foreigners come to visit this place. On average, 81% of
international tourists visit Cox's Bazar. It is reported that our country has 75 outer
islands which could be utilized for tourists, both local and foreign.
Division
Location
Tourism spots
Chittagong
Southern
Patenga beach, Himchori and Inani beach,
Moheshkhali Island, St. Martin’s Island and
beach etc.
Khulna
Southwest
Sundarbans mangrove forests.
Barisal
Southwest
Kuakata beach, Bhola and Monpura islands.
Table: Some excellent spots for coastal tourism in Bangladesh.
With the massive expansion of the marine tourism sector, side by side with foreign
exchange earnings, there will be scope for additional business for rich and middleclass people and jobs for hundreds of thousands of job seekers in different categories.
04
Fisheries
The fishing sector is playing a vital role in the country's socio-economic
development. In 2020, the industry contributed over 3.5% to the national GDP and
over 25% to the agricultural GDP. Again, Bangladesh earns a massive amount of
foreign currency by exporting fish, shrimp, and fish products. Around 1.5% of the
foreign exchange earnings come from here. In fresh water, there are 260 fish and 24
prawn species and 475 marine fish species. It is estimated that Bangladesh catches
only 0.7 million tons of fish every year out of the total 8 million tons of fish available
in the Bay of Bengal. Within 35–40 nautical miles of the coast, Bangladeshi trawlers
catch fish. However, our economic zone extends for 200 nautical miles. So, proper
utilization of the marine area will surely increase the fish industry. Fish production
has increased by 53% in the last ten years, and fish exports have increased by 20%.
Three categories of significant fishing resources and their contributions to total fish
production in 2020 are given below:
15.31%
28.45%
56.24%
Inland capture
Inland culture of farmed fish
Marine capture
Fig: Total fish production in 2020
Aquaculture
Bangladesh is now the world's sixth-largest aquaculture producer, according to the
Food and Agricultural Organization (FAO), with a total fish production of nearly two
million tonnes and a marine capture of 455,601 tonnes. The main species that are
cultured in closed waters through sustainable aquaculture are major and exotic carps,
striped catfish (Pangasius hypothalamus), tilapia and Java barbe (Barbonymus
gonionotus). This process is carried out in the coastal regions of the country, mostly
in Chattogram and Barisal. The fishing and aquaculture sectors (directly and
indirectly) employ over 18 million people. Bangladesh is also becoming less reliant
on captured fisheries and is adopting aquaculture to meet internal and export demand.
The importance of aquaculture is undeniable, not just in Bangladesh but in every
country in the world.
05
Fig: Aquaculture production scenario in Bangladesh from 1980 to 2018
Marine Biotechnology & Genetic
Resources
Bangladesh has a tremendous amount of potential in blue biotechnology. This sector
represents almost entirely new territory for Bangladesh's Blue Economy to explore.
Bioprospecting, the future of biotechnology, is defined as the systematic search for
marine organisms in the sea, along the coast, on the seabed, or beneath the seabed.
This includes organisms such as microalgae, bacteria, fungi, viruses, plants,
shellfish, and fish. The interaction, or synergies, of different organisms results in a
commercially valuable activity or product. From a business standpoint, the goal of
marine bioprospecting is to find components, compounds, or genes that can be used
in products or processes.
There is a wide range of uses and applications that go far beyond the pharmaceutical
industry. Nutraceuticals, functional foods, cosmeceuticals, human food, animal and
fish feed, and biofuels are examples. Though Bangladesh is not yet well-equipped to
reap the full benefits of blue biotechnology, if we can harness its power, a revolution
in Bangladesh's economy is on the way.
Fig: Technical stages of development in marine bioprospecting
06
Shipping, Port & Maritime Logistics
The Blue Economy of a country relies heavily on marine freight companies and ports.
Countries with insufficient marine construction, shipbuilding, or repair, transportation
capacity, or ports may be unable to fully participate in the global economy. Ships carry
up to 90% of international trade in terms of volume, and ports handle the rest.
Bangladesh's external freight trade is 90 percent seaborne.
Bangladesh now has only two ports to handle this vast volume of trade: Chittagong
Port and Mongla Port. In the Bay of Bengal, Bangladeshi ports, together with Kolkata
and Chennai, serve as a hub. The country's possibilities of becoming a primary focus
of the country's future ocean economy will improve with the development of port
infrastructure and facilities. Matarbari Port, Payra Port, Sonadia Deep Sea Port,
Kutubdia FSRU LPG and LNG Terminal, and Bay Terminal are all viable options for
contemporary seaport construction. A new era of marine trade and commerce will
begin as a result of this. The construction of new seaports will reduce exporting times
and provide the government with a stable stream of money..
Bangladesh's logistical capacities have worsened in recent years, posing a threat to the
country's long-term economic and trade development. Because all six LPI measures
are directly related to naval logistics, the World Bank's Logistics Performance Index
(LPI) will be used to calculate Bangladesh's marine logistics performance.
Table: LPI Comparison among Bangladesh, Germany and India
Natural Resources & Seabed Mining
Bangladesh's marine domain may hold many large oil and gas reserves, comparable to
those in India and Myanmar, that must be investigated and exploited. Bangladesh has
not yet completed a thorough assessment of its offshore oil and gas prospects.
Bangladesh has identified a total of 26 Tcf (trillion cubic feet) of gas reserves to date,
with just about 1 Tcf discovered offshore (MoFA, 2020). Meanwhile, Bangladesh dug
20 wells in the BoB's offshore territories, but only two gas reserves were discovered
(Sangu and Kutubdia).
07
Apart from oil and gas, there are other natural resources inside BoB's marine
boundaries that have yet to be exploited. However, there may be prospective deposits
of marine minerals from deep sea mining at seabed places to examine the weather,
including polymetallic sulphides, ferromanganese crusts, ferromanganese nodules
and rare earth elements such as Yttrium. Apart from sand and gravel, the ocean's
minerals have only recently been exploited and mined. According to the EU
Commission (2012), the ocean floor might provide 5% of the world's minerals by
2020, including cobalt, copper and zinc. By 2030, this figure could reach 10%.
In an article by Rear Admiral of Bangladesh, M. Khurshed Alam said,
“By 2020, 5% of the world's minerals, including cobalt, copper and zinc, could come
from the ocean floors. This could rise to 10% by 2030. The global annual turnover of
marine mineral mining is expected to increase from almost nothing to €5 billion in
the next ten years and up to €10 billion by 2030.”
Marine Renewable Energy
Marine renewable energy should be one of the most important parts for Bangladesh's
Blue Economy and transition to a sustainable energy future. The Bay of Bengal,
which stretches from St. Martin's in the south-east to the south-west of Bangladesh,
has about 700 kilometers of shoreline. The resources (basis material) for marine
renewable energy are pretty much here, however they are not distributed evenly
across the country. Near the Bay of Bengal, there are many small islands. Long coasts
and numerous small islands are prone to the presence of powerful waves and tides
from the Bay of Bengal. Tidal energy may be easily generated from shifting sea
levels since tides are more predictable than wind and sunlight. There are two ways to
generate tidal power: tidal stream and tidal barrage. To generate electricity from the
motion of the tides, dams or barrages with water turbines can be built. Sandwip,
which generates 5-meter tidal waves, has the best chance of generating tidal energy
among coastal regions. Ocean wave energy is directly generated by ocean waves. It is
another feasible form of renewable energy that aids in the reduction of harmful
greenhouse gas emissions related with electricity generating. Bangladesh has the
ability to tap into the Bay of Bengal's ocean wave energy. In the near future, it will be
one of Bangladesh's major sources of electricity. By replacing fossil fuels with
marine renewable energy, we can lower the possibility of possible harm to air and
water quality from emissions and oil spills.
08
Shipbuilding Industry
Shipbuilding is a growing industry in Bangladesh with a lot of potential. Following
textiles, the shipbuilding industry is the second largest contributor to GDP in terms of
percentage contribution. In fiscal year 2017-18, the industrial sector contributed
32.42 percent to national GDP and increased at an annual rate of 11.99 percent. The
shipbuilding industry is growing at an average of 8% every year. Export income from
Bangladesh's thriving shipbuilding industry surged by 456.88 percent year on year in
the first half of fiscal year 2017-18.
Fig: Emerging ship industry in Bangladesh
Contribution of Blue Economy
Sectors in Bangladesh
9%
25%
19%
22%
22%
3%
Tourism & Recreation
Marine Fisheries & Aquaculture
Minerals
Transport
Energy
Ship & Boat Building/Breaking
Fig: Contribution of Blue Economy Sectors in Bangladesh,
Percentage of GVA (2014-18)
09
Challenges of Blue Economy
Sustainable use of the ocean's resources is essential for global food security, economic
growth, and coastal communities' well-being. There are endless possibilities for using
marine resources to alleviate poverty, safeguard the environment, and mitigate climate
change.
Under the 'Blue Economy' strategy, Bangladesh can maximize the usage of oceanbased resources within the country's current maritime boundary. However, due to a
lack of management mechanisms, most of the potential for the development of
maritime resources in Bangladesh remains untapped.
Despite this, just a few Blue Economy sectors, such as fisheries and aquaculture,
shipbuilding, ship-breaking, salt manufacturing, and port infrastructure, have been
discovered in the country. Although many of these sectors are still using antiquated
methods, there are vast chances for innovation and technology to be added in order to
spur further growth.
Frequent floods and marine contamination, such as ocean acidification and blue
carbon; a lack of educated employees; harmonizing sectoral policies and legislation;
weak ocean governance; political support; and so on are some of Bangladesh's hurdles
to the Blue Economy.
Furthermore, Bangladesh's position in some blue-economy sectors, such as seafood
processing, ocean energy, and blue carbon, is limited or non-existent. Due to a scarcity
of new ideas, efficient processes, and highly skilled people, those undiscovered
markets remain unattainable. The Blue Economy has the potential to help countries to
achieve long-term economic progress, but only if it is part of a larger plan.
10
Conclusion
Blue Economy is a policy, an initiative, a framework, a system and a concept. The
ocean can help people deal with economic and environmental problems, better health
outcomes, rich biodiversity, more secure jobs and a safer planet for future generations.
According to World Bank (2018) estimates,
“The ocean economy contributes US$ 6.2 billion in gross value addition of 3.0% of
GDP to the Bangladesh economy”.
The Bay of Bengal and its coastal regions are the backbone of vast resources for
Bangladesh and they have opened up a new economic frontier for the country. It may
be concluded at this time that Bangladesh needs to raise knowledge about the benefits
of using maritime resources and bring about socio-economic improvements in the
lives of Bangladeshis. The Blue Economy could be one of the most effective ways for
Bangladesh to achieve long-term economic progress.
11
Recommendations
1. Maritime skill development:
Bangladesh should emphasize increasing marine educational institutions for marine
skill development. In addition, more skilled manpower should be involved in this
sector to ascertain the availability and explorations of marine resources.
2. Marine research organization:
Pure marine research-based organizations must be established with up to date modern
technologies. A marine expert panel should conduct these organizations to ensure the
proper use of these technologies in all sectors of the Blue Economy.
3. Marine Spatial Planning:
MSP is a public process of analyzing and allocating the spatial and temporal
distribution of human activities in marine areas.Despite many challenges, a practical
MSP prerequisite to ensure a stabilized and sustainable Blue Economy in any oceanbased country like Bangladesh.
4. Identification of priority sectors:
Priority sectors must be recognized based on domestic and global needs.
5. Environment and biodiversity protection:
We should protect the sea area free from both marine and land-based pollution.
Otherwise, the biodiversity of our marine areas will be at a higher risk. Furthermore,
marine resources exploration and exploitation should be executed in an eco-friendly
way to ensure ecological balance.
6. Monitoring and evaluation:
A strong monitoring and evaluation committee should be formed to check the ongoing
Blue Economy activities regularly.
7. Coordinating the planning process and future directions:
A coordinated planning process for sustainable development of the country's ocean
economy will require active participation and decisions by a wide range of public
agencies, linked by common adjectives and actively sharing information.
12
Appendix
(Questionnaire)
A survey on Blue Economy
Dear friend,
I would be very grateful to you if you kindly express your thoughtful opinion on Blue
Economy.
Name:
Age:
Sex:
Area of Residence:
Please put Tick marks beside your answer
1. Has Bangladesh yet completed a thorough assessment of its offshore oil and gas
prospects?
A. Yes
B. No
C. No comment
2. Has Bangladesh only discovered a small number of Blue Economy sectors ?
A. Yes
B. No
C. No comment
3. Is Blue Economy an emerging concept in Bangladesh?
A. Yes
B. No
C. No comment
4. Do we need to digitalize Ocean sector to increase production?
A. Yes
B. No
C. No comment
5. Can Blue Economy assist in addressing food security issues?
A. Yes
B. No
C. No comment
6. Is the sustainable Blue Economy investible in Bangladesh?
A. Yes
B. No
C. No comment
8. Can blue growth brings a revolutionary change in the rate of unemployment?
A. Yes
B. No
C. No comment
9. Are resources (base material) for marine renewable energy pretty much in
Bangladesh?
A. Yes
B. No
C. No comment
10. Which sector of the Blue Economy do you think will be more prosperous in
upcoming years? Comment below.
Thanks for your kind cooperation.
13
List of References
▪ https://archive.dhakatribune.com/opinion/op-ed/2020/12/23/op-ed-investing-in-theblue-economy
▪ https://www.unb.com.bd/m/category/Bangladesh/blue-economy-in-bangladeshprospects-and-challenges/82816
▪ https://www.drishtiias.com/daily-updates/daily-news-editorials/importance-of-blueeconomy
▪ https://mofl.portal.gov.bd/sites/default/files/files/mofl.portal.gov.bd/page/d1b6c714
_aee6_499f_a473_c0081e81d7dc/Blue%20Economy.pdf
▪ Kotrikla A.M., 2017. Green versus sustainable: The case of shipping. Proceedings
of the 15th International Conference on Environmental Science and Technology, 31
August to 2 September, Rhodes Island, Greece
▪ International Transport Forum, 2018. Reducing Shipping Greenhouse Gas
Emissions: Lessons From Port-Based Incentives, OECD
▪ https://www.thedailystar.net/opinion/news/aquaculture-bangladesh-farmingwithout-plunder-2026085
▪ https://www.clearias.com/blueeconomy/#:~:text=The%20economic%20philosophy%20of%20the,%E2%80%93%
20Rio%2B20%20in%202012 .
▪ https://archive.dhakatribune.com/bangladesh/2021/01/17/bangladesh-witness-to-asilent-fish-revolution
▪ https://assets.researchsquare.com/files/rs-1001892/v1/b17f486b-e2e8-427e-998d60f35e17e67a.pdf?c=1634916505
▪ https://tinyurl.com/BlueEcon01
▪ https://cbei.blog/sectors-of-the-blue-economy/
▪ https://www.researchgate.net/publication/348311140_The_challenges_of_Blue_Eco
nomy_Marine_pollution_Port_and_Shipping_Sustainability
▪ International Maritime Organization, 2013. World Maritime Day: A Concept of
Sustainable Maritime Transportation System, IMO
https://sustainabledevelopment.un.org/index.php?page=view&type=400&nr=1163
&menu=1515
▪ https://tinyurl.com/blueaconomy002
▪ https://energyindustryreview.com/analysis/why-blue-economy-is-so-important
▪ https://en.m.wikipedia.org/wiki/Shipbuilding_in_Bangladesh
▪ https://www.researchgate.net/publication/346935933_Blue_Biotechnology_Commo
nwealth_Blue_Economy_Series_No_5
▪ https://www.scirp.org/journal/paperinformation.aspx?paperid=84707
▪ https://www.google.com/url?sa=t&source=web&rct=j&url=https://researchportal.p
ort.ac.uk/files/7509060/Opportunities_post_print.pdf&ved=2ahUKEwiPxdL2mn1AhWexzgGHcLSCY4QFnoECCsQAQ&usg=AOvVaw3BHC1nbN4JO_mqB44a
mT_J
▪ https://bsmrmu.edu.bd/public/files/econtents/5f8060cd7fcb4BMJ_V4_Issue_article
_5_pmk.pdf
14
Glossary
•
SDG - Sustainable Development Goal
•
MoFA - Ministry of Foreign Affairs
•
EEZ - Exclusive Economic Zone
•
GDP - Gross Domestic Product
•
FAO - Food and Agriculture Organization
•
LPI - Logistics Performance Index
•
BoB - Bay of Bengal.
•
GVA - Gross Value Added
•
MSP - Marine Spatial Planning