Note: this cover page could either contain a colour image, or have the typeface superimposed on an image DRAFT THE FUTURE FOR FISHERIES Findings and recommendations from the Fisheries Sector Review and Future Developments Study April 2003 Dhaka Bangladesh CONTENT ACRONYMS & ABBREVIATION ........................................................................................................ II GLOSSARY ........................................................................................................................................ III PREFACE: ..........................................................................................................................................IV THE FUTURE FOR FISHERIES .......................................................................................................... 1 CHALLENGES AND OPPORTUNITIES ............................................................................................. 3 FISHERY SECTOR REVIEW AND FUTURE DEVELOPMENTS (FSRFD) RECOMMENDATIONS ............................................................................................................................................................ 11 ROAD MAP ........................................................................................................................................ 14 AN OVERVIEW OF CURRENT PERFORMANCE ............................................................................ 19 LIVELIHOODS ................................................................................................................................... 28 ENVIRONMENT ................................................................................................................................. 36 LEGAL AND REGULATORY FRAMEWORK ................................................................................... 41 POLICY FRAMEWORK ..................................................................................................................... 47 INSTITUTIONS ................................................................................................................................... 53 APPENDIX-1: GOB POLICY DOCUMENTS OF RELEVANCE TO THE FISHERY SUB-SECTOR ........................................................................................................... 65 i ACRONYMS & ABBREVIATION ADB BAU BBS BFDC BFRI BIDS BADS BWDB CBD CBFM CBM CBOs CCRF CEGIS CPR CSO DAE Danida DFID DoE DOF ECA ECNEC EIA ESBN EU FAO FDEC FRSS FSRFD FTE FTEP FYP FFYP GDP GEF GIS GNAEP GoB HACCP HES ICLARM IPM IUCN LDC LGED MACH MAEP MoA MoCA&T MoEF MoEP&MR MoFL MoI MoL MoLGRD&C Asian Development Bank Bangladesh Agricultural University Bangladesh Bureau of Statistics Bangladesh Fisheries Development Corporation Bangladesh Fisheries Research Institute (also abbreviated FRI) Bangladesh Institute of Development Studies Bangladesh Aquaculture Development Society Bangladesh Water Development Board Conservation for Biological Diversity Community Based Fisheries Management Community Based Management Community Based Organization Code of Conduct for Responsible Fisheries Centre for Environmental and Geographical Information System Common Property Resources Civil Society Organization Department of Agricultural Extension Danish International Development Assistance Department for International Development Department of Environment Department of Fisheries Environment Conservation Act Executive Committee for the National Economic Council Environmental Impact Assessment Estuarine Set Bag Net European Union Food and Agriculture Organisation Fisheries Development Executive Committee Fisheries Resource Survey System Fisheries Sector Review and Future Developments Full Time Employment Fisheries Training and Extension Project Five-Year Plan Fifth Five-Year Plan Gross Domestic Product Global Environment Facility Geographical Information System Greater Noakhali Aquaculture Extension Project Government of Bangladesh Hazard Analysis and Critical Control Point Household Economic Survey International Centre for Living Aquatic Resources (now known as the WorldFish Centre) Integrated Pest Management International Union for Conservation of Nature Low-income Developing Country Local Government Engineering Department Management of Aquatic Ecosystems through Community Husbandry Mymensingh Aquaculture Extension Project Ministry of Agriculture Ministry of Civil Aviation and Tourism Ministry of Environment and Forest Ministry of Energy, Power and Mineral Resources Ministry of Fisheries and Livestock Ministry of Industries Ministry of Land Ministry of Local Government, Rural Development and Co-operatives ii MoS MoWR MSY NCSFA NFA NFEP NFMP NFP NGO NRMC NWMC PBAEP PL PRSP PS SPF SUFER SOE SWOT ToR UNESCO UP USAID WARPO WB WTO Ministry of Shipping Ministry of Water Resources Maximum Sustainable Yield National Committee for Shrimp and Fish Affairs National Fishermen’s Association Northwest Fisheries Extension Project New Fisheries Management Policy National Fisheries Policy Non government organisation Natural Resources Management Council Nation Water Management Council Patuakhali Barguna Aquaculture Extension Project Post Larvae Poverty Reduction Strategy Paper (also abbreviated iPRSP) Private Sector Specific Pathogen free Support for University Fisheries Extension and Research State-owned Enterprises Strengths Weakness Opportunities Threats Terms of Reference United Nations Educational, Scientific and Cultural Organization Union Parishad United States Agency for International Development Water Resources Planning Organization World Bank World Trade Organization GLOSSARY Aratdars Baor Beel Char Dighi Ghat Gher Haor Hapa Jal Jalmohal Jola Kua Khas M mt Polder Parishad Tk. Upazila USD yr Zila $ Middleman Oxbow lake Deepest part of the floodplain, often with permanent area of water Newly formed island or a point bar formed in a river Big pond Boat landing place Area of land enclosed by dikes for shrimp culture Deeply flooded saucer shaped depression in the northeast region of Bangladesh Holding net usually used for fish fry Net Fishery leased out by government for revenue Waterbody A ditch or pond dug in a floodplain area to concentrate fish as the water level falls (also known as pagar) Government Land Million Metric tonnes Land enclosed by an embankment Council Taka – Bangladeshi currency (equivalent to US$ 58 at time of review) Sub-district United States Dollar Year District United States Dollar iii Preface: The fisheries of Bangladesh represent a remarkable natural resource, with an intimate connection with the life and well-being of the country and its people. Though subject to a range of natural and human-induced change, and threatened in many ways by the demands of Bangladesh’s growing population and economy, the resource has proved to be surprisingly resilient, and through the tremendous growth of aquaculture in inland and coastal areas, a major success in national strategy, has succeeded in maintaining vital contributions to food supply, income and employment. Nonetheless, the challenges ahead, at every turn, are great. To maintain and extend benefits, particularly in meeting the needs of the tens of millions of poor people for whom fisheries are an essential livelihood issue, will require a clear vision, resolute national commitment, and the engagement of ever greater levels of skills and knowledge. It will also require investment – in public and private sectors, in facilities, services, and in human capital. Together with its development partners, and with an effective and practical strategy for management and development of the sector, Bangladesh and its people have significant opportunities to realise. It has been both a challenge and a privilege to carry out the background review of the sector. With a team of national and international specialists, we have sought to assess recent developments and current trends, and through a series of site and project visits, and a range of meetings and discussion groups with fisheries stakeholders, to explore future directions. We would like to acknowledge the widespread interest and support for the work, and the generous response in time and expertise from those concerned. We would like also to thank the Ministry of Fisheries and Livestock and the Department of Fisheries and their staff for their co-operation, and other agencies associated with the sector for their active interest and involvement. We are now pleased to offer for wide consultation and response our perspectives and recommendations. Dhaka April 2003 iv The Future for Fisheries Almost every person in Bangladesh has a connection with the country’s fisheries resources, whether catching or producing fish, supplying markets or services, or as a consumer. A growing export sector is also contributing substantially to the national economy. This review sets out to provide a strategy for fisheries, to enable priorities to be established, and to explain how investment can be placed to best effect. Why is this important? Around one million people are estimated to fish full time, and 11 million are involved part time – and four out of every five rural dwellers are dependent to some extent on aquatic resources. These resources, from both capture fisheries and aquaculture are estimated to supply between 60% and 80% of the animal protein needs of the country, as well as being a key source of essential minerals, vitamins and fatty acids, vital factors in child development and adult health. A STRATEGY IS ESSENTIAL In whatever category of association, whether in rural or urban areas, the people of Bangladesh, their social and political groupings, and their national agencies, have a direct interest in the health and productivity of the country’s aquatic resources, and the potential for continued delivery of food, income and employment. However, with a large and growing population, a steadily urbanising and industrialising economy, and growing pressures on the national resource base and its capacity for food production and ecosystem support, there is every reason for concern for the fishery sector. There must be further concern for the many millions of the poorest people in Bangladesh, many of who have essential livelihood dependence on fisheries. These groups may be increasingly vulnerable to both the potential threats to the resource itself, and to growing trends for control of resources and the movement of aquatic products to formal markets. THE FUTURE CAN BE POSITIVE These are very real challenges, and there is a clear possibility for declining output and negative economic and social impacts. However, with well considered strategies, good management and well-targeted investment, the outlook for the fisheries sector over the next decade can be very positive. Linked in turn with initiatives and mechanisms which recognise the needs and potential opportunities of poorer groups, there is also a Picture box 1– harvest or market? very real prospect of harnessing the sector’s potential for wider social and economic development. BUT IT NEEDS TO BE WELL GUIDED The coming period will be one of substantial social, cultural, economic and environmental change, in Bangladesh as elsewhere in the world. For fisheries and aquatic resources, as in other sectors, new perspectives will be required, new understanding will arise and develop, and new approaches will be needed. Strong drivers from private sector growth and competition may deliver greatly increased output and income, greater resource efficiency and lower real prices. Partnerships for social development may seek better and more diversified strategies involving the sector. Policies will need to recognise the changing responsibilities within a more market-oriented economy, and public sector agencies will require to co-ordinate more effectively and focus more clearly on service delivery. Large-scale aquaculture development needs to be planned to avoid ecosystem damage, encroachment on Khas lands and resultant decline of access to wetlands by the landless. The next sections explain firstly how we propose the sector to develop in the coming decade, and describe the connections and implications for livelihoods, environment, institutional support, legal frameworks, and policy.1 1 Further details may be found in the Fishery Sector Review and Future Developments theme documents and background papers. 1 CHALLENGES AND OPPORTUNITIES KEY POINTS There is scope for progress in most subsectors The private sector will play an increasingly important role in development; it requires a positive environment Social development objectives need to be understood and linked with production and market opportunities Capture fisheries sectors will require careful support to ensure sustained benefits; alternative livelihoods for fishing communities will be important Sector and resource knowledge is critical and needs to be efficiently developed and used. PRIORITY AREAS To develop an investment and development framework and strategy with all stakeholders. RECOMMENDATIONS A Natural Resources Management Council (NRMC) should be set up to promote sectoral objectives in production, social development and natural resource management and the needs to co-ordinate and implement fishery sector development Donor funds for renewable natural resources programmes should be coordinated via the NRMC A Fisheries Development Executive Committee (FDEC) should be established to enact decisions made by the NRMC. The FDEC will coordinate commercial development (aquaculture and commercial trawling) and conservation/protection of CPR pro-poor national assets (capture fisheries). Effective linkages might be made between natural resource policies (Appendix 1: GoB policy documents of relevance to the Fisheries Sub-sector. A Commercial/private sector development strategy to be implemented that allows for the development of a sustainable aquaculture and commercial fishing industry. 2 CHALLENGES AND OPPORTUNITIES Perspectives for the fishery sector over the coming decade suggest that with the right mix of policy and investment, the potential can be good, in spite of increasing constraints. Based primarily on growth in aquaculture, but with prospects of upholding and adding value to the capture sector, increased output, and corresponding gains in value and employment could be envisaged. This should be achievable within current expectations of the quality and availability of Bangladesh’s physical and biological aquatic resources, and seek more diversified options. Growth in aquaculture, if primarily linked with more competitive commercialised production, may limit options for resource-poor producers, though niche opportunities may expand. While urban consumers may benefit from increased supply and stable or declining real prices, rural people may lose informal access to fish and face a shift from productive opportunities to various levels of part-time or irregular employment. A range of public and private sector investments and initiatives will be needed to realise the potential for change, growth and expanding economic output. Though Table 1. Outline scenarios for major subsectors (tonnes) Production sector Current 10 years Low Inland aquaculture Coastal aquaculture Inland capture fisheries Coastal/marine capture fisheries Total Annual change (%) High Low High 850,000 1,465,744 2,524,455 5.6 11.5 94,580 129,597 228,048 3.2 9.2 750,419 606,919 685,552 - 2.1 - 0.9 589,500 501,689 555,070 - 1.6 - 0.6 2,284,499 2,703,949 3,993,125 1.5 5.4 assumes broadly similar though differently placed levels of management and administration. However, the impact of such changes in terms of food supply and livelihoods, and access for different groups of people, particularly the poor, will depend on a range of factors. These must be understood and applied if wider benefits are to be maintained and extended. Table 1 indicates the broad expectations for change. The prognosis for aquaculture is positive, while that for capture fisheries, is at best slightly negative due to long term effects of a declining resource base, and the practical difficulties of management To these core production sectors can be added the networks of input supply, market and distribution, and post-harvest added value, particularly in the export sector. These in turn involve substantial numbers of people and generate significant economic output. Taken overall, income and employment in the sector should expand, and in areas of growth are particularly likely to be enhanced. However, more traditional subsectors might only at best be sustained for broadly similar benefits, or in some cases offer much reduced opportunities. There are important livelihood consequences for the many people involved. Small-scale fishers will be increasingly pressured by declining resources and increased competition, and will need to numerous constraints can be recognised, the prospects for doing so are positive, and the recent record of micro-scale and commercial private sector enterprise, particularly in aquaculture, demonstrates the emerging strength and potentially positive impact of these trends. However, while prospects for the sector are positive, a significant challenge is presented in translating benefits effectively to the many millions of Bangladesh’s people for whom fisheries are important. The issues and the details are given in the following sections. Picture box2: people holding fish 3 The review has identified a number of key development trends and perceived constraints for primary sectoral activities. These are converted into potential outputs, and associated value added and employment, based largely on historic rates of change, modified as appropriate by expected short to medium term developments. Production opportunities and their underlying assumptions identified include: High rates of growth in hatchery based seed supply of fish (15.9%) and shrimp (22.5%) Growth in all inland aquaculture sectors by an average of up to 12% per annum Growth in coastal aquaculture by an average 9.2% per annum Continuing decline in inland capture fisheries A decline is anticipated in the marine capture sector across all fisheries, averaging 0.6 % per annum. A similar decline in the inland capture fishery averages 0.9%. The assumptions underlying these projections are as follows: Current levels of donor and NGO investment will continue. Inbreeding issues associated with fish hatchery brood stocks will be corrected. Specific pathogen free (SPF) stocks of shrimp will be imported or developed. Hatcheries will co-operate in the sale of disease and chemical contamination free PLs. WTO imports from neighbouring countries will not significantly impact internal fish prices. Food safety issues associated with Bangladesh seafood exports will be favourably resolved. Institutional and policy factors that lie at the root of the inland fishery declines will be resolved. Further habitat losses will not occur. The DOF will be able to effectively limit entry in the Marine/Coastal capture fishery. Gears such as ESBN will be resolved. A summary of proposed output (tonnes) changes in inland aquaculture, coastal aquaculture, inland and marine capture fisheries is as follows (Table 2): Principal development areas within these groups are identified as follows: Capture fisheries Table 2. Potential output projections Current Seed supply PL (M) Fish (‘000 kgs) Market production Inland aquaculture production (tonnes) Coastal aquaculture production (tonnes) Inland capture fisheries (tonnes) Coastal/marine capture fisheries (t) Overall growth in production (excl seed) (tonnes) 10 years Annual change (%) 7,552 269,382 58,000 1,181,000 22.5 15.9 850,000 2,524,455 11.5 94,580 228,000 9.2 750,419 679,000 -0.9 589,500 552,000 - 0.6 2,284,499 3,983,455 5.29 The primary emphasis will be on maintaining current levels of output as far as possible within the increasing constraints of land and water use, urban and agricultural intensification, and social pressures on poor communities. While these fisheries will remain important especially to poor communities, with limited and localised exceptions, no increases in output are proposed, nor is it expected that current management approaches can realistically be applied in such complex and demanding circumstances. However, multi-species tropical fishery systems are relatively robust, though individual high value fisheries may collapse as is apparently occurring in the case of certain large carp and catfish species and possibly in some of the high value marine species. Total biomass across a narrow range of species, particularly smaller fish and prawn with more versatile habitat and feeding requirements, may remain at similar levels. Consequences in terms of employment and value will continue in the same direction with a continuing decline in full time fishers and increasing number of part time and subsistence users. Where co-management or community-based approaches can be developed to provide some level of resource management, catches of more valued species may be better maintained, and with effort controls, it may be more feasible for alternative or complementary income generating approaches to be developed and sustained. However, the costs of management relative to the gains in production need to be carefully considered. Other important issues undertaken as part of these community based approaches include the protection of key 4 habitats, the creation and maintenance of refuges, limits to the further disruption of migratory pathways and the avoidance of chemical degradation. Small scale pond carp polyculture of mixed Indian and Chinese carps along with small indigenous species will continue to the largest source of production and offers the greatest potential for expansion, with high returns to labour and significant value added. Depending in part on shifts in real prices and potentially declining returns as the sector expands, production could increase by as much as 10% per year over the next ten years. This would be based on increased production from the present area, together with growing contributions from small ponds and irrigable land. The MAEP initiative has shown that average yields can cost-effectively be more than doubled from current levels. Allowing for increased labour productivity, the projected increase in employment is to 2.4 M with a value added of Tk 78,500 M. Small scale cage culture while of minor production importance this form of fish culture may allow the entry of the landless poor into aquaculture and can generate income at Picture box – small scale pond culture critical times of year. It is flexible in terms of the balance between investment and labour inputs, and can be an important tool for poverty alleviation in the short and medium term. Profitability of these systems depends on the availability of low cost feed ingredients and proximity to markets. Where sustainable feed sources exist and markets are available, returns can be high. The main risk is theft and an important constraint is access rights to water bodies under existing rules and practices. The total projected increase in employment is to 17,000 with a value added of Tk 232 M. Commercial/Intensive Pond Culture will likely shift away from Pangas to carp polyculture or other systems. The major constraints for large operators are a lack of large contiguous pieces of land in addition to a lack of high quality feeds. The total projected increase in employment is to 3,400 with a value added of Tk 1,397 M. A key issue for expansion, and for wider social impact, will be the extent to which more commercially organised aquaculture of this form will gain ground with respect to small scale pond production. Current indicators suggest that fertilised small-scale systems can take advantage of local production niches, and if marketing costs are acceptable, can compete with larger scale enterprises. However, with good market locations, good quality fry, better fertiliser and supplementary feed materials and more efficient management practices, these systems may become more dominant within the broader inland aquaculture sector. Stocked beels and oxbow lakes is a form of extensive aquaculture and unlikely to be of major importance. This activity can generate positive financial returns, and moderate production costs through beelfloodplain stocking by private entrepreneurs, or in association with government or NGO initiatives. This production unfortunately occurs at the cost of community access and floodplain biodiversity. These returns are only likely to be achieved in relatively small closed and semi-closed baors or beels where groups with common means and interests can be identified or developed. The greatest potential is probably where a fishery is dominated by part time fishers, who stand to benefit most from stocking programmes. Though continued support from the While baor areas are quite well quantified, other water bodies are not. Accounting also for management potential and the means of developing workable community structures, it is difficult to estimate overall potential, but increases of the order of 8,000 jobs are feasible. Rice-fish culture is likely only to achieve a modest increase in production to perhaps 4,000 tonnes, though this could expand much more with suitable support. Though benefits to fish and crop management are clear, poaching, pesticide use and water management issues are notable constraints. 5 As with other systems, extension and farmer learning/networking would be essential, with key issues being the use of deeper water zones, and avoidance of stock losses due to poor water control. Additional employment would be mainly in the form of greater labour productivity within existing systems, together with secondary benefits associated with inputs and markets. Picture box – extrensive areas of coastal shrimp ponds or GIS image of areas suitable for development in SW Bangladesh Rice-prawn culture; will have considerable potential in certain areas; in the greater Noakhali area alone, it is estimated that 40,000ha of seasonally flooded land could be adapted, with a 10,000mt/yr prospective yield worth $ 77.6 M to the farmers. Pen culture after carp polyculture is probably the most important culture system in the country and has been increasing in popularity. Growth projections suggest targets of some 20,000 tonnes of fish. There are however, high risks from loss of stock as a result of net damage, poaching or predation. The higher the investment in pen materials and construction labour, the lower the risk of normal escapes - but vandalism is still possible. This system is likely to be attractive to more commercially orientated producers closer to major markets. This system has an employment potential of 4,000 and a value added of Tk 2,886 M. Shrimp (bagda) production has significant growth potential. Much of this could be accommodated through improved culture systems without major growth in area, though spatial expansion is also a possibility. Improved approaches will require better operational management with the support of extension, improved pond construction, better water management, a reduction in PL Box 1: The shrimp industry in Bangladesh Shrimp farming is key to the economy of Bangladesh, currently producing 2.5% of global production, and the country’s second largest export industry. There are 600,000 people employed in the sector generating US$301 million annually, from bagda and golda farms (US$243 million from bagda alone). Yet the industry suffers from significant production inefficiencies and is exposed to important social and environmental risks. Despite the huge potential for a sustainable increase in export earnings from shrimp and associated social and economic development, the sector suffers from a lack of vision and strategic direction. The industry urgently needs a coherent strategy to prepare it to respond to emerging trends in the competitive global market place and reduce its exposure to the inherent risks currently facing the shrimp sector. (Source: Shrimp Option Paper, Department of Fisheries). mortality, improved stocking ratios, and most importantly to the industry as a whole improvements in post harvest handling. These systems would generate improved returns to labour and result in greater value added, including a significant contribution from fish processing. Confidence in the PL supply is required with risks of disease significantly reduced. There is a debate as to the likely beneficiaries, depending on the extent to which smaller farms will remain competitive, though all groups, marginal farmers, elite and the landless, will benefit from increased employment and income opportunities. The total projected increase in employment is to 212,000 with a value added of Tk 24,136 M. Prawn (golda) production is likely to follow the trends of strong growth experienced over the last decade, with at least 300 ghers, from the present 105, coming into production within the next ten years, with total output projected to 38,000mt. No assumptions have been made for increased stocking densities or a reduction in mortality, and hence this will require further expansion in area. Golda can be grown in any fresh water pond, though hatcheries require saline water. There is no technical bar to including Golda in carp polyculture systems. This has successfully been demonstrated throughout the country, the bottleneck is the lack of marketing outlets outside of traditional Golda producing areas. The total potential projected increase shown here is conservative and employment is estimated to be 232,000 with value added of Tk 5,000 M. SUPPLY OF INPUTS The developments described will require corresponding input support, specifically in feed and hatchery production. The following scenarios are envisaged: 6 Carp seed production will need to expand significantly to support growth to suggested output levels of 1,500,000 t. This will require an estimated 1,200,000 kg of hatchlingsoutput today is approximately 250,000kg. Wild hatchlings and public sector hatcheries will remain insignificant in production terms but possibly critical in terms of a source of pure or improved brood lines. Demand would result in growth in numbers of hatcheries and nurseries to 5,000 and 18,600 respectively, with a corresponding increase in employment to 131,000 FTE. The value added (hatchery and nursery combined), based on current prices, would increase to Tk 3,000 M. Golda hatchery development would be an essential element within the expected increase in production, as wild seed supply is unlikely to expand and would probably contract. Whilst imports may become more significant, local hatchery production is likely to increase substantially as skills develop and as confidence in investment increases. Projecting reliance on wild caught PL to fall from 380 to 60 M hatchery demand would be for some 1,400 M PL. Based on current projections for hatchery size, this would result in the need for some 50-60 hatcheries, generating around 1,000 new jobs. The value added from this sector, based on price projections from current levels, is likely to increase to $ 106 M. Bagda hatchery development is currently beset with inefficiencies. However, key developments are expected to improve financial returns and stimulate further investment, either in restoring unused capacity, in the redevelopment of existing hatcheries or construction of new units to meet modern standards. Assuming farm production of 106,000 t, and a significant reduction in dependency on wild caught PL, annual demand for would grow to 15,500 M PL. This would suggest scope for some 80 additional hatcheries, which on current regional industry ratios would generate around 2,845 new jobs. As in the case of Bagda production and processing food safety issues could potentially have serious consequences. Co-operation and coordination with the other processors and producers and the ability to produce SPF and chemical contamination free PLs is of importance. Small scale hapa nursing of golda PL, and possibly also bagda in more saline areas is of minor importance for overall production, requires slightly higher levels of investment than small scale cage culture, but is able to generate good returns to labour, and a healthy profit margin. The short production cycle means that investment can be recouped quickly, and loans could paid off rapidly. This could offer an excellent opportunity for poor people in appropriate locations to achieve good returns with only modest investment. Nursing of a wide range of other inland and coastal species is also possible. However, some of these activities could also be carried out by producers themselves, making better use of their productive resources. Though locally significant, and potentially valuable as an income generating option, total projected employment is therefore likely to be small, i.e. in the region of 500, though numbers of people involved could be much greater. Feed supplies are a major impediment to growth in the sector and are expected to increase to accommodate demand, arising primarily from a growth in commercial fish, golda and more intensive bagda production. For golda, a considerable network of artisanal supply exists, based initially on snails caught from nearby beels, for which resources have been seriously depleted. Current developments involve homestead-based feed production using more diversified raw materials, offering additional opportunities for family labour and potentially reduced production cost. Commercial feed production through international joint ventures has also been initiated, but cost and quality remain constraints. In the long term expansion of commercial aquaculture will depend on the further development of this sector. Based on expected outputs in the relevant sectors and on current regional trends for supplementary feeding, some 50,000 t of commercial feed might be required, with a substantially greater amount produced locally in groups or household level activities. Annual turnover in the commercial feed sector could reach Tk500 M, and involve some 200 FTE in production and distribution. Additional FTE levels in local feed supply, beyond that already accounted within farming activities, based on typical input costs could amount to some 5% of production FTEs, reaching 100,000 or more over the longer term. 7 POST HARVEST DEVELOPMENTS Domestic market throughput, based on these output projections is likely to increase by 4.6% per annum, or 57% over the whole period. There are presently 3 M workers in this sector at present. Allowing for a 1.5% change in labour productivity over this period, employment could rise to 4.07 M. The increasing level of throughput is likely to intensify pressures on hygiene control, but could also generate greater economies of scale for existing operators, permitting reinvestment in improving facilities and services. However, this will also depend on changing expectations amongst domestic consumers. Based on experience to date, and on market development elsewhere in the region, public sector investment in capacity and quality improvement is unlikely to generate significant change and private sector and community-linked processes are more likely to be able to respond to these changes. Post harvest supply of shrimp and prawns is projected to quadruple over the 10-year period. If this is to occur it must be associated with a shift in product handling, based on direct contact between producer and processor. Current quality problems within the supply chain relate to dispersed locations, poor infrastructure, and insufficient knowledge Picture box – artisanal feeds of product care and the systems required to ensure it. To meet increasingly stringent international quality standards, actions will be needed to enhance and maintain supply logistics, traceability, and management/ monitoring functions. A combination of greater throughput and more controlled standards is likely to result in more simplified market chains and pricing mechanisms, economies of scale and some degree of industry concentration. This is likely to increase buyer power with respect to small farmers and reduce their profitability. Traditional functions such as credit may also be affected. These changes may also reduce opportunities for more flexible and informal employment but may improve employment standards for those within a modernised system requiring certification to meet international standards. Additional throughput could be expected to raise employment to 23,200, an increase of 9,500 (FTE), with a potential increase in value added by Tk 2,325 M. Picture box – attractive picture of processed shrimp either retail presentation or well labelled pack. The processing sector is likely to be a major beneficiary of growth, provided the market for shrimp remains buoyant and Bangladeshi product remains acceptable to world markets. Employment is likely to grow with production, which will also increasingly extend beyond the current 3-month period to 6 months. Levels are expected to increase from 3,260 to 16,000 (FTE), representing another 32,000 jobs in total. Current capacity far exceeds product availability, and replacement of outdated and inefficient units may be required to allow present capacity to accommodate greater supply. The potential value added to this sector is likely to be in the region of Tk.65,000M. Based on better capacity utilisation and more reliable supplies, sector profits and value added are likely to increase significantly (from 14 to 26%). The increase in labour is likely to reflect the increase in product throughput. However, savings will occur in fixed costs (depreciation and other costs, assumed to be 20%). Although these projections are very positive, the projections depend on a resolution of quality issues and the performance and 8 image of the Bangladesh shrimp industry’s product. In an increasingly competitive international environment, potential growth and profitability could be substantially reduced unless clear and continuing improvements can be made. Most processors are broadly compliant with HACCP requirements, but problems lie in product quality care from producer to processor, and in buyer and ultimately EU and USA health officials concerns. In addition, increasing demands are being made by buyers to satisfy attributes of social and environmental good practice. Although a government-run quality control system exists it has not to date proved to be reliable, and regardless of proposals for its expansion, this is unlikely to meet international expectations, which are only likely to be met through an independent and effective internationally audited Quality Assurance system such as that offered by the Aquaculture Certification Council or similar organisations. OVERVIEW OF IMPACTS Employment and value added On the basis of projected production, total employment and value added in the Bangladesh fishery sector could increase as outlined in Tables 3 and 4 respectively. Though these propose a positive change in both value (+6.1%) and employment (+9.1%), distinctly negative outcomes are proposed for Demand and prices Over 70% of all animal protein consumed is from fish (BBS HES 2000). Apparent fish consumption2 in Bangladesh is around 14 kg per capita and is estimated to have fallen by 1% per annum over the last five years. By comparison, Malaysia and the Philippines have an annual consumption of 35-45 kg per capita, Thailand 20 kg/capita, while Sri-Lanka, Myanmar, and Indonesia, have broadly similar consumption levels to those of Bangladesh. Consumption in India is much lower at around 3-5 kg / capita. Table 4. Summary of employment added Current Seed supply 11,990 66,572 Inland aquaculture 805,770 2,435,660 Coastal aquaculture 152,680 435,550 Inland capture 73,410 991,330 fisheries Coastal/marine 271,510 150,250 capture fisheries Post harvest employment Other Total 5,162,900 7,244,750 Seed supply Inland aquaculture production Coastal aquaculture production Inland capture fisheries Coastal/marine capture fisheries Post harvest value added Total 1,470 83,220 21.25 10,060 29,140 18.96 26,940 21,010 -2.2 27,820 8,330 -7 29,130 35,730 1.2 122,050 185,660 6.1 both inland and marine capture fisheries and the millions of poor dependent on these resources, due to the incapacity of fisheries regulation and the practical constraints to addressing these in a realistic and costeffective manner. Were management action capable of restricting fishing effort by around 10 % this could be sufficient to reverse the decline, for example in marine fisheries, to an increase of an average 1.3% per annum. 125.04 -4.47 9.15 Table 5. Ten-year predictions for price and quantity Fish Price Quantity Total value Year Tk/mt (mt) Million Tk 2001 42,316 2,197,737 92999 2002 43,480 2,228,506 96895 2003 44,675 2,259,705 100952 2004 45,904 2,291,341 105182 2005 47,166 2,323,419 109586 2006 48,463 2,355,947 114176 2007 49,796 2,388,931 118959 2008 51,166 2,422,376 123943 2009 52,573 2,456,289 129134 2010 54,018 2,490,677 134541 Projected 10 years annual (Tk) increase (%) 8,230 46.13 26,630 Projected annual change (%) 45.79 20.23 18.53 Demand for fish is generally fairly elastic, i.e. highly responsive to price. However, for marine species demand is high while still elastic it is less responsive to price increases than inland species. Table 3. Summary of sectoral value added Current (Tk) 10 years Fish prices have increased by an average 2.3 % per annum in real terms over the last 10 years. Based on a forecast using a partial equilibrium model (Table 5), overall fish prices are predicted to increase by some 2.75% annually over the next 10 years. This projection does not incorporate possible external impacts such as introduction of WTO rules, nor does it allow for significant supplydriven expansion, but does indicate that Production + imports – exports according to available statistics; each of these figures is subject to estimate errors. 2 9 production will remain profitable Bangladesh over the short run. in However, in these scenarios it will be increasingly difficult for the poor to maintain current fish consumption levels, unless supply expands at a greater rate than that described by this model. Rising real prices mean that existing production systems would remain profitable and that higher cost feed based aquaculture systems could also remain profitable, and have scope for expansion. In any event, aquaculture currently appears to have high margins and should generate significant opportunities for expansion and reinvestment, even in static or decreasing price scenarios. prices, and possibly some import. Returns to producers will depend on fishing effort but could remain significant, though competition from aquaculture may reverse these trends. Marine capture fisheries – with less elastic demand and potentially declining supply, hence steadily rising prices, and possibly increasing imports. For producers, returns will depend on fishing effort and may remain high, hence continuing pressure on resources. Table 6 outlines the implications of different national economic growth rates together with different rates of production increase on real prices, showing how total expansion rates of more than 5% annum are likely to start to see price fall, unless the economy grows more rapidly. Clearly, much will depend on the distribution of changing incomes in economic growth, and the effects of other price changes in determining disposable income. Table 6. Summary table of production and price scenarios (price change, %) Production growth rate Low Growth Moderate Growth High Growth 3.00% 5.00% 7.00% 3% 0.23 1.02 1.81 5% -1.13 -0.34 0.45 7% -2.49 -1.7 -0.91 10% -4.53 -3.74 -2.95 In practice it may be more effective to separate supply and price projections into at least four subsectors, i.e.: Domestic aquaculture – with elastic demand but considerable current profitability and scope for investment and expansion, generating lower real prices, reducing returns to producers and if land and water resources permit, stimulating export. Export aquaculture – with elastic demand at world market level, but limited impact of local production on total supply, hence less price dependence and good scope for growth given present profitability levels. Inland capture fisheries – with less elastic demand but less scope for expansion and hence gradually rising 10 FISHERY SECTOR REVIEW AND FUTURE DEVELOPMENTS (FSRFD) RECOMMENDATIONS The Fishery Sector Review and Future Developments work conducted throughout 2002 has identified the national significance and future potential of the sector. It has also strongly emphasised the importance of establishing and implementing a co-ordinated cross-sectoral approach to its development, if future benefits are to realised and sustained. It recommends that the Government of Bangladesh should consider: 1. The setting up of a Natural Resource Management Council (NRMC) and a Fisheries Development Executive Committee (FDEC). The NRMC would have representatives from seven key Ministries and their Departments working with renewable natural resources: Ministry of Finance, Ministry of Fisheries and Livestock (Department of Fisheries), Ministry of Water Resources (BWDB and WARPO), Ministry of Local Government Rural Development and Cooperatives, Ministry of Land, Ministry of Agriculture (Department: DAE) and The Ministry of Environment and Forest (Department: Environment) and would be headed by the Minister of Finance. The FDEC would constitute three Ministries and their Departments: MoFL, MoWR and MoEF (Departments of Fisheries, Environment and BWDB) plus private sector and civil society. The NRMC would be an advisory body reporting to the Executive Committee for the National Economic Council (ECNEC) and Parliament, it would function as a practical and dynamic forum, meeting on a quarterly basis to co-ordinate and promote issues relevant to the development of the natural resources of the country of which fisheries is a major sector. Its executive role would cover three main areas: 1.1 Commercial fish production and foreign trade 1.2 Social issues relating to the use of the resource 1.3 Strategies for linking these with resource management and rural development Representatives from the full range of stakeholders using the aquatic resources in Bangladesh would be encouraged to interact closely with the NRMC whose modus operandi would involve active and practical consultation with these stakeholders. The NRMC ought to liaise with Donor agencies in relation to future priorities for development and investment within the sector. It would be important to establish close links between the Ministries represented, relating to resource use, and with the Ministry of Finance as the coordinator of investment priorities. It would review public and private sector investment strategies and needs for sectoral development; prioritise public sector capital and recurrent expenditure, and identify approaches to maintain and expand private sector and external investment. The NRMC should make recommendations to the ECNEC regarding investment and Parliament regarding policy development and would manage the enactment of policies relevant to the sector. The NRMC must review access and management issues for fisheries, including the current policy regarding ‘free access’ to open water fisheries (inland and marine), which currently tends to act against the interests of fisherfolk depending on the resource for their livelihoods. Draw on case studies provided by a range of GoB projects as evidence for a need to modify GoB policy; consider the assignation of an exclusive artisanal fishery area – to include the area from the coast a number of nautical miles seawards. This would be combined with management plans for the use of the resource. The management plans would be produced by fishing communities in conjunction with partner NGOs and the DoF and approved by the FDEC. 2. Once constituted the Fisheries Development Executive Committee (FDEC) would create action plans resulting from the NRMC decisions and closely monitor enactment by the responsible institutions. It would promote full integration within the sector outlining and monitoring public and private service provision and investment needs. Key areas to be covered include: 2.1 Water resource management to meet linked national objectives 11 2.2 The development of viable and effective systems of culture and capture production meeting international standards 2.3 Food supply, local consumption and export, and related post harvest quality control and market issues and 2.4 Access to the resource by those that depend on it for their livelihoods. 2.5 Rationalization of the activities executed by the Bangladesh Fisheries Development Corporation (BFDC), the Bangladesh Fisheries Research Institute (BFRI) and the functions and activities carried out by public sector hatcheries, broodstock holding and GoB run training centres. 3. Adoption of an objective framework along the lines recommended in the roadmap (page 14) to describe the social, economic and resource objectives associated with the sector, and identify potential indicators of progress: 3.1 Economic: current and projected production under each fisheries subsector together with ‘upstream’ and ‘downstream’ multipliers, prices, margins and value added opportunities, linked to investment needs and trade data; contribution to GDP; 3.2 Social: consumption of aquatic production; nutritional needs, employment, poverty alleviation, use of Khas lands (Common Property Resources CPR), service requirements, skills, education (national curriculum modification to emphasise the importance of aquatic resources/wetland values), water use conflicts, enactment of national policies and corresponding strategies related to the sector (National Strategy for Economic Growth, Poverty Reduction and Social Development – PRSP, National Fisheries Policy, National Land Use Policy, National Rural Development Policy, National Water Management Plan, Environment Policy and Implementation Plan, National Women Development Policy, National Agricultural Policy) and other social charters promoted by the GoB; 3.3 Resource: an expanded and more effective valuation of fisheries and aquatic ecosystem services including an expansion of wetland resource assessment models produced on a project basis (USAID MARCH, Danida GNAEP, DFID CBFM2) with the objective of creating a National Wetland Resource Assessment Database and to promote a wider awareness of this within national policy and development planning. 4. Redefine the role of the Department of Fisheries (DoF) to include cooperation with a wider network of institutions coupled with a more focused and specialised role including: 4.1 The DoF responsibilities under the FDEC with fishery management and aquaculture planning; including production/landing/marketing statistics by species, weight and value; 4.2 Enacting of sectoral initiatives such as the recently agreed ‘Shrimp Option Papers’ (DoF/DFID 2002); 4.3 Promotion of a diversified strategy embracing pro-poor community based fisheries management and aquaculture activities, together with better quality export output and wider recognition of positive national attributes; 4.4 Development of policy approaches for rationalisation and reform, promotion of research links; development of guidelines for sectoral development areas such as large scale intensified fish culture; 4.5 Identification and promotion of specialised services – broodstock management, seed supply, aquatic health management, EIA, and knowledge transfer using appropriate and efficient delivery systems; monitor these where required; 4.6 Coordination of Reference Laboratory work for private sector quality control systems to improve awareness of food health issues - pesticide residues, presence of biotoxins, histamines due to fish spoilage during transport/storage; and 4.7 Promotion of the longer term rationalisation of legal frameworks with key priorities of avoiding disadvantage to poorer groups; operationalise international accords such as the Codes of Conduct for Responsible Fisheries/Aquaculture/Mangrove use. 12 5. Promote an effective data system and integrated resource planning/social development and policy development approach for the sector. The Centre for Environmental and Geographical Information Services (CEGIS) will continue to develop Geographical Information Systems (GIS) to help integrate fisheries and aquaculture development in relation to land use and the Coastal Development Strategy being developed by the GoB/DFID/Royal Netherlands Embassy Integrated Coastal Zone Management project under WARPO. In addition: 7.1 Environmental Impact Assessment (EIA) evaluation capability; 7.2 Aquaculture planning in relation to the National Land Use Policy and Coastal Development Strategy (under preparation); and 7.3 Fishery Management Plan preparation and evaluation. 5.1 Promote awareness and examples of effective and efficient use of data/information for enhanced development and management of sustainable fisheries and aquaculture and 5.2 Use such examples to reinforce political will and commitment to promote strong and consistent national data and information collection, as well as analyses. 6. The MoFL should adopt the Human Resource Development/Management Strategy developed for and by the DoF (Fisheries Training and Extension Project II with DFID co funding); The Aquaculture Extension Strategy developed by the DoF in 2002 (currently being updated) should be enacted as a means of promoting technology transfer to the wide range of stakeholders operating integrated aquaculture operations in Bangladesh. 7. Strengthen links between human resources dedicated to aquaculture and fisheries policy-making, planning and management and those dedicated to data and information collection. In relation to the FDEC and its links to the Ministries, ensure that the data/information needs of the policy-makers, planners and managers are met and that the information gathered is readily understandable and well defined. The donors involved in the sector should provide the GoB Departments associated with the FDEC with specialist training in effective communication of data and information analyses to promote understanding of their applications for aquaculture, fisheries management, policy-making, planning and management. This would also include: 13 ROAD MAP Sector & Expected Outcomes Indicators Past 5 years Current 10 years Risks POLICY Recognition of sectoral objectives in production, social development and natural resource management, and the needs to co-ordinate and implement Primarily production led with focus on output and export earnings Statements of wider objectives but unclear how these are to be reconciled/ optimised Broad and linked objectives promoted in establishing the National Resource Management Council (NRMC3) Without a sense of the need to link these objectives, sector policy will be distorted and developmentally unsound Effective linkages between natural resource policies (Appendix 1 lists Ministries where policies have been developed. A brief policy summary is included) No coordination or linkages between policies. Contradictory aims; no hierarchy or overarching policy. The interim Poverty Reduction Strategy Paper (IPRSP4) requires increased commitment to coordination NRMC provides effective coordination; Fisheries Development Executive Committee (FDEC)5 enables this sectorally Without coordination of national resource policies little impact can be expected from donor investments National Fisheries Policy effectively implemented and updated through sectoral policy process. NFP prepared in 1998. Not implemented or linked to other NR policies NFP is in place but not effectively implemented – few of the major reforms suggested have been employed. FDEC coordinates commercial development (aquaculture and commercial trawling) and conservation /protection of CPR- pro-poor national assets (capture fisheries). If FDEC not developed, national fisheries policies and private, public activities would not be linked; future production, resource base and social impacts much impaired. International conventions embedded in national policies. Signatory to all major conventions, but not linked to national policies or effectively implemented No change Links established to major conventions through effective policy formulation All signed conventions have policy implications – trade and other international interactions could be compromised Lack of information and awareness; some issues only just emerging/their potential impacts understood; growing potential significance Some awareness of specific issues but little connection to shorter and medium term implications, strategies or policy approaches Continuing process of scenario development, global and regional engagement, awareness raising in sector, translation into policy themes Major external forces will impact negatively on output, yields, social benefits with little mitigation, alternate options STRATEGIES Strategy in place to realize sectoral benefits in changing global conditions of trade, economic growth and climate/ecosystem impact NRMC – highest level inter-ministerial council responsible for sustainable management of natural resource assets. The iPRSP is referred to by the GoB as the National Strategy for Economic Growth, Poverty Reduction and Social Development. Fisheries Development Executive Committee – inter-ministerial executive committee responsible for sustainable fisheries development, reporting to NRMC. Two sub-committees one responsible for sustainable commercial development- includes private sector-, the other responsible for conservation of aquatic resource assets includes civil society. 3 4 5 14 Sector & Expected Outcomes Indicators Past 5 years Current Commercial/private sector development strategy implemented that allows for the development of a sustainable aquaculture and commercial fishing industry Rapid expansion and major production gains resulting from GoB interventions in inland and brackishwater aquaculture and trawling Government unable to effectively regulate new industries. All aquaculture constrained by lack of quality seed. Lack of quality assurance and international food safety concerns deter shrimp industry. Use of Trawlers not rationalized. Government supports and monitors-industry lead quality assurance/ certification process. Planning for largescale aquaculture complies with CCRF. Increased engagement with civil society and the private sector. Mechanized fishing fleet controlled. Without industry lead grave concern whether foreign markets continue to exist for Bangladesh sea food/fish products. Domestic marketing and price are not affected by WTO agreement. If unchecked, mechanized fishing boats will continue to damage the artisanal fishery Effective strategies implemented to protect and sustainably conserve capture fishery assets for the benefit of poor resource users. Inequity increasing –more of the resources are controlled by elites; few livelihoods options set out;; coastal communities have increasing vulnerability Decline of resources continues at increased rate. Conflict over resources increases. Key issues better identified, some approaches set out, but few implemented on wider scale. Government strategies in place and implemented for the sustainable use and protection of CPR6 areas along with insuring access rights for the poor Increased engagement with civil society and private sector; better range of livelihood options Inaction may create irreversible damage to key resources. Absolute poverty may increase with loss of natural resource safety nets. Increased and more entrenched conflict for access of resources and greater risk of breakdown of community processes. Create Natural Resource Management Council Many institutions involved in the NR sector, with local actions, and donor inputs, but no coordination in strategic management. As before - but all natural resources are overused and misused and steadily declining. Increased collaboration and coordination achieved through involvement of key Ministries, civil society and the private sector Failure to coordinate the sector will mean that there is no common policy. Collapse of the NR base of the country and social/economic decline Create Fisheries Development Executive Committee (FDEC) Importance of cross-sectoral issues starting to be identified, but not addressed. Investment in aquaculture expansion, community based fisheries and water infrastructure. Increasing cross-sectoral constraints; declining aquatic and fisheries resources. Public/private/ civil society agents disengaged. Increased collaboration and coordination achieved through involvement of key Ministries, civil society and the private sector No mechanism for planning and developing crosssectoral approaches to sector; further inefficiency and loss; domestic and international investors will withdraw from the sector. But without a regulatory framework ,subsidies lead to inefficient growth 10 years Risks ACTION AGENDA 6 CPR=Common Pool Resources or open access resource 15 Sector & Expected Outcomes Indicators Past 5 years Current 10 years Risks Equip key public sector agencies to meet the strategic management and implementation needs of the sector Remit held with MoFL and DoF, but not equipped to deal with the changing demands of the sector FSRFD identifying possible new strategic needs for the sector and future agency approaches/structures MoFL /DoF able to support the new needs of the sector with close links to other key GO/NGO/CSO, institutions operating in the sector Loss of confidence and failure of structure and management will lead to reduced benefits and disinvestment Redefine approach for sectoral investment and development Wide range of micro-medium scale private investment; donor support to specific projects and public sector infrastructure; Commercial development of marine sector, and fish markets by Bangladesh Fisheries Development Corporation (BFDC) Private sector investment generally positive and productive; some project investment effective, but discontinuous impacts; public sector infrastructure often inefficient; BFDC is no longer relevant to status of the industry Micro-medium scale private sector investment promoted; donor support at wider more co-ordinated sectoral level; public sector investment in staff/institutional change; commercial interests of BFDC privatized and staff expertise used to support the GoB management of fisheries Misplaced investment will continue inefficiencies, hamper positive areas of growth and benefit, and in the case of BFDC be an unacceptable drain on the economy Develop a knowledge partnership, with public sector agents (universities and BFRI) meeting private and public sector needs; linking biotechnical, social, economic and policy issues. Public sector inputs have been important in the early technical success of aqua-culture; but limited interests or impacts in other areas; approaches traditional and research station based. Key deficiencies in aquatic resources, capture fisheries, markets, social processes; NGOs/development projects pioneered farmerbased research; poor linkages between universities, BFRI, DoF, NGO/private sector Outcome-based knowledge processes taken up through linked partnerships and multidisciplinary interactions, with public sector agents taking a more targeted and relevant approach to sector needs, linked with regional trends. Promote the Fishery Research Forum as a means of coordinating research Public sector investment is wasted; knowledge limitations restrict the growth of the sector and maintenance of natural resource base. The poor are less able to benefit from innovations in the sector Involve civil society agents more fully in sector development and promotion of related social benefits Though increasingly import-ant in project initiatives, civil society had little influence in the development of the sector Civil society starting to exert influence at the local level, but has limited impact at national level Civil society participates in the management of the sector and promotion of social aims through the FDEC Poor disenfranchised within the sector; increasing resource conflict, misuse and depletion. Involve commercial /private sector in sector development, value addition and national economic development Private sector has engaged in and benefited via major expansion of aquaculture Potential constraints through unregulated growth; also in capture fisheries; increasing impacts of urban and international markets Dominant sector, but working within a regulatory framework administered by GoB but drawn up in cooperation with the PS in the FDEC Failure to involve the PS in the regulation of the industry will lead to misplaced investment and unsustainable growth 16 Sector & Expected Outcomes Indicators Past 5 years Current 10 years Risks ACTIVITES RESOURCE Conservation – strategic inventory, values and ‘health of resources’ overview to guide future management decisions Little data available, limited institutional capacity, little ecosystem/biodiversity awareness Wider data available but not connected at a cross sectoral level, hence no prioritization for management Aquatic system/diversity data available at strategic level to guide resource management for sustained value Serious biodiversity/ecosystem function/value loss, long term livelihood disbenefits, and export trade sanctions Biodiversity and production initiative based on protection of key resources/ habitats and select better species and strains for culture and stocking Range of new stocks/strains introduced, rapid expansion of hatchery seed supply in culture and enhancement Growing awareness of biodiversity risks, potential losses due to poor/ inbred stocks, need for refuges Public/private sector hatchery strategy and enhanced sanctuaries support diverse and productive stocks Decline in productivity/output increased aquatic disease, shortage of seed, loss of fishery stocks Good growth in fish/shrimp production from range of systems, impacts not defined Awareness of social, economic, environmental impacts but little action to address these or identify pro-poor benefits Sustained and increased output with good food supply and livelihood impact, promoting pro-poor interests Increasing habitat and product-ion losses, negative social impacts, reduced food security, trade sanctions Inland fisheries; sustained and species diverse production involving poor households and communities in management processes Declining outputs and fishing livelihoods, depleting stocks, socially exploitative management systems Mitigation measures starting, community-based approaches being developed, stocks being enhanced/protected Widespread adoption of practical local/community based approaches with good levels of social equity Excessive exploitation by elite groups, declining/degraded resource base and widespread social disbenefit Coastal fisheries; sustained production with community involvement in wider range of livelihood activities Increasing fishing pressure, declining yields and incomes, greater poverty, poorer social indicators Continued/growing pressure on coastal resources and communities, some regulation but generally ineffective Value and diversity of coastal fisheries sustained within broader livelihood base for coastal communities Increased poverty/desperation in coastal households, conflict, declining resource base and value Markets; efficient market systems with good potential to retain and add value, deliver benefit to poorer sectors as producers or consumers Considerable part of rural production available at a local household and rural market level – safety net for poorer groups Developing infrastructure and urban markets bring more into cash economy; more earnings but less local food Markets deliver efficiently to wide range of consumers in rural and urban areas with good secondary impacts Market monopolies distort prices and returns, exploit poor producers/consumers; poor products, trade sanctions PRODUCTION Aquaculture; sustainable development involving diversified production sector and expanded supply 17 Sector & Expected Outcomes Indicators Past 5 years SERVICE AND SUPPORT Management information effective Fisheries Data System in place Current 10 years Risks FRSS established in 1984 but little developed/sustained Remnant staff of FRSS in place but generally agreed that data is unreliable Networked, objective-oriented data system in place with effective management outputs No basis for management decisions/policy guidance; loss of resource, income, benefit Environment and aquatic health management support for culture and capture fisheries systems Over-specialised expertise with partial data and limited/ unbalanced perspective on practical approaches Some improvements in addressing field issues; key problems of chemical contamination emerging Effective support for sound and well-managed environments/ production systems deliver safe, good quality products Reduced yield/productivity, increased losses, declining supply and food quality, greater human health risks, reduced export opportunity Quality control; quality processes embedded in supply chain operations delivering safety and value Perceptions of post-harvest quality very limited; only realised through export bans; public sector nominally responsible but ineffective Increasing awareness of need for quality management - control, driven by export sector; no agreement on public/private sector roles/responsibilities Private/public sector partnership operating an efficient and trustworthy system for domestic and export needs, adding significant value Continued loss of value post-harvest, human health risks, loss of export markets, investment opportunities, wider national image and reputation Human resources and institutional development; involvement of range of people across income and skill levels, based on skill needs (additional requirement for legal, economic, social and environmental expertise) and HR and gender objectives Production/traditional extension approaches; gradual shift to household/community/ social engagement , aware-ness of institutional needs Community and institutional needs taking more frontline role but mechanisms not widely developed and applied; public sector resistance A well developed network of institutions/civil society agents adopt, apply and ensure access to emerging skill needs Misapplied resources, poor institutional function, poor productivity, lost opportunities for social and economic benefit Develop research forum/ knowledge/ communication environment to address multidisciplinary challenges for sectoral development Research and knowledge highly specialised, biotechnical, limited relevance to national sectoral needs Awareness of wider needs and disciplinary approaches, links with development agents but much to be improved An active process engaging best practice/new knowledge in improving management, production and value gains Wasted R&D investment, poor policy/development guidance, inability to tackle emerging issues/problems; risks, losses 18 AN OVERVIEW OF CURRENT PERFORMANCE KEY POINTS Growth in the sector can be pro-poor and can contribute to Bangladesh achieving Millennium Development Goals Diversification implies the need for stronger capacity for integrated policy planning The private sector will become the major player; government will have to support an enabling environment that enables growth Markets are critical; a strong focus is needed on ensuring quality in both internal and external markets Regional trade trends will have a direct impact. There is a clear need for scenario planning with strong links to policy and public expenditure. PRIORITY AREAS Private sector development, social impact, and public sector investment on public policy planning Investment focus on regulation and on an enabling environment RECOMMENDATIONS Promote a sustained and increased output with good food supply and livelihood impact, promoting pro-poor interests Encourage widespread adoption of practical local community based approaches with good levels of social equity Make aquatic system/diversity data available at a strategic level to guide resource management for sustained value Develop a public/private sector hatchery strategy and enhanced sanctuaries, support diverse and productive stocks Ensure that the value and diversity of coastal fisheries is sustained within a broader livelihood base for coastal communities Guarantee private/public sector partnerships can operate an efficient and trustworthy system for domestic and export needs, adding significant value to fishery sector products. 19 AN OVERVIEW OF CURRENT PERFORMANCE significant increases in fishing effort, which if not contained will contribute to greater reductions in production in the long term. To establish the basis for future projections, the study reviewed the full range of current activities in the sector, their performance characteristics, and hence the key factors determining future potential. Relationships between output, value, employment and market price are particularly critical in determining the wider impacts of the sector and the ways in which these might change. However, fish culture has had a major impact, growing by ~14% per annum over the decade. Specific areas of growth include carp (20% per annum) and shrimp (3% per annum). By contrast, there has been a decline in market share for marine species, snakehead and hilsa. Box 2: Data sources and key sectoral outcomes Accurate data on production and value from the various fishery subsectors is difficult to establish. To get the most realistic data, Bangladesh Bureau of Statistics (BBS)/ World Bank household consumption data were cross-checked with reported national production figures, and further checked or validated with data from smaller scale assessments. The data trends derived were then used to develop a range of expected outcomes: Marine capture fisheries are unlikely to grow, and more valuable species may decline further Inland fisheries are likely to fall slightly, with declining catch of floodplain stocks matched by localised increases due to enhancement and habitat management Inland aquaculture will continue to grow strongly, stimulated by good demand and increasing yields and profitability. This will be the major source of production gain. Coastal aquaculture will grow steadily, assuming international markets remain good and that national product continues to be accepted. This will be a major source of value gain. More commercialised forms of aquaculture – at small to medium scale – may well develop and will be key sources for cheaper fish. In 2000, the sector contributed Tk 92,914 M (US$ 1,602 M) to national GDP, around 4% of the total, involving a full-time equivalent of at least 5.2 million people, or 9% of the labour force. Exports were valued at Tk 2,369,640 M (US$ 1,802 M), some 10% of total. The sector functions as a safety net for income and food for the rural poor, provides an important source of animal protein and essential elements for all consumers, and is particularly important for poor people in both rural and urban areas. Table 7 Inland fisheries sub-groups Types of fishers Subsistence fishers Part time fishers Landowners with traps and ponds (Kua) Landowners with fixed gill nets (Katha) Full time (small scale) fishers Full time (medium scale) Full time with hilsa Total Value added (Tk M) Employment Return s to labour Tk/day 165,321 2,480 275,534 30 99,192 3,591 26,451 453 99,192 3,690 6,012 2,046 165,321 5,057 153,075 110 66,128 2,123 77,149 92 66,128 2,205 113,996 64 89,137 7,791 78,191 332 750,419 26,937 730,408 3,127 Output (mt) The following sections provide further details for capture fisheries, seed supply, stocked systems and aquaculture. Capture fisheries Some 1.1 million people - landless, part time and full time fishers and landowners - are directly involved in capture fisheries. Around 650,000 (67%) are engaged in the inland fisheries and 444,000 (33%) in coastal and Picture box 3– inland fishing activity Total output was estimated at 740,000t from inland capture fisheries, 755,000t from inland aquaculture, 95,000t from coastal aquaculture (including finfish) and 587,000t from marine fisheries. Over 70% of the fish consumed are fresh water species. Data suggest that both inland and marine capture fisheries are in decline, respectively by around 2%, and 1.5% per annum. Current levels of marine fisheries production are only being maintained by 20 marine fisheries. The combined value added from these is some Tk 56,000 M (US$ 974 M), of which Tk 27,000 M is from inland, and Tk 29,000 M from marine fisheries. Average value added per person is Tk 41,540 for inland and Tk 65,320 for marine/coastal sectors. Seven groups can be described in inland fisheries. Details of employment, value added and returns to labour are shown in table 7. Returns to labour are good within stocking and enhancement schemes, and reasonably high for fishers targeting hilsa. Returns elsewhere are low and may fall further with declines in catch per unit of effort and habitat degradation. Further stocking of water bodies might also exclude part time/subsistence fishers. Overall, though capture fisheries represents a significant part of national output, employment and livelihood, the picture for future development is one of increasing pressure on resources and a growing management challenge in maintaining levels of output and livelihood support. The complex and diverse nature of these fisheries and their dependent communities tell against uniform solutions, and requires effective yet efficient approaches. Seed supply The supply of aquatic seed is assuming an increasing importance, meeting demands both in aquaculture and in supplementary stocking of open waters. Around 177,500 people are involved in fish and shrimp or Picture box 4– shrimp seed collection Five main sub-groups can be identified in the marine fisheries sector, summarised in table 8 below showing employment, value added and returns to labour per sector. Returns to labour are highest in the commercial gill net and shrimp trawl sector. However, with continuing declines in catch per unit of effort, these are likely to fall significantly. Commercial gillnetting has remained remarkably robust, largely as a result of its dependence on hilsa. Artisanal vessels diversifying to hilsa have also remained reasonably profitable. All other stocks are facing significant decline due to overfishing. Table 8. marine fisheries subsectors Types of fishers Output Value Employ Returns (tonnes) added ment to labour (Tk M) Tk/ day Commercial gill 430,157 23,968 114,308 698 net fishers Artisanal ESBN / 30,259 1,404 17,500 267 gill net Artisanal ESBN / 103,394 1,348 32,561 138 Beach seine Shrimp trawl 7,864 397 2,100 630 Industrial trawl 1,5326 83 900 307 PL collectors (M) 2,500 1,377 185,000 25 Total 589,500 28,577 352,369 2065 The poorer groups comprise the inshore artisanal fishers who depend for much of the year on catching juvenile species, which cannot be sustainable in the long term, and the Post Larvae (PL) collectors. PL collection is highly sensitive given the size of the sector in employment terms and its importance for landless workers. prawn seed collection, husbandry and distribution generating a value added of Tk1,467M. To this can be added a conservative estimate of 185,000 (77,500 Full Time Employed) collecting shrimp fry and a further 2,000 collecting carp seed. Some 630 private and 110 public sector finfish hatcheries are estimated to produce 266,000 kg of fish seed. A further 2,700 kg of wild hatchlings are caught from rivers. Principal species are silver carp, Mrigal 7and Rohu8, accounting for 67 % of the total. Other species include Catla, mirror carp, common carp, Rajputi, bighead carp, Pangas,9 grass carp, black carp, tilapia and African Magur.10 There are a further 4,222 pre-stocking nurseries, producing some 3,752 M ongrown fry annually. 7 Cirrihina mrigala An Indian carp- Labeo rohita Pangasius – a robust and highly popular catfish species 10 Clarias spp, often hybrid catfish 8 9 21 The balance of supply between wild caught and hatchery produced shrimp fry is more even, although increasingly shifting towards hatcheries. 3,460 M bagda11 fry are produced from hatcheries, while wild caught fry currently accounts for 2,000 M bagda and 380 M golda 12. Though growing steadily, the hatchery sector has notable constraints. For shrimp, problems include early stocking and poor survival of fry (12-15 days after PL stage); poor water quality; poor pathogen and biosecurity management; variable feed quality; excessive use of chemicals; and inefficient management. Consequently, most hatcheries currently either break even or make marginal losses, though potential profitability is good. Picture box5: fry traders For golda, hatchery productivity is still low, and early stage water quality and feeding problems have resulted in poor quality stock, though this is improving steadily as management expertise is developing13. For carp, wild caught seed is still preferred because of quality problems due to inbreeding, though this is now starting to be addressed with broodstock management programmes. In all cases higher prices are still paid for the wild caught seed. Shrimp PL imports are prohibited because of fears associated with disease introduction. However, imports are increasingly common for golda, milkfish and pangas, as there are domestic supply shortages. Stocked systems The stocking of inland water bodies is now a significant component of the sector. Various approaches can be described, including: stocking of enclosed water bodies; some 60,000 ha with yields of ~ 250 kg /ha nursing and release into ponds, beels and canals; some 2,500 ha with yields of up to 25 times previous production levels direct flood plain stocking of beels; 90,000 ha were developed under the 3rd Fisheries Programme,14 with yields of between 30 and 250 kg/ha stocking of rice-fields; some 5,000 ha, with typical yields of 150-300 kg/ha. The key issues are that whilst potentially successful and profitable (30% margins have been reported in direct flood plain stocking), smaller units produce higher production returns but management costs may increase. While community based management (CBM) regimes for such systems may offer advantages for access and social equity, management structures and their costs may be critical. In ricefields, stocking is only effective if some degree of management of water and pesticide use is feasible. Trends away from main crop deep-water rice may reduce stocking opportunities, though pressures on winter crop capacity may revive interest. Stocking is not universally successful, and habitat and management conditions need to be carefully assessed15. Private sector initiatives, common in the NE and SW, have worked well but with easier access by local elite which led to the exclusion of others, such as local community groups. The greatest potential for expansion and wider social impact is in the NW, where social and physical conditions are more favourable. All systems demonstrate high yields at relatively low costs with good potential for expansion. Aquaculture Bangladesh has seen a tremendous increase in fish culture, growing by ~20% per annum 14 11 Tiger shrimp, Penaeus monodon Giant freshwater prawn, Macrobrachium rosenbergii 13 Two new private sector golda hatcheries in SE Bangladesh, promoted by Danida, will be producing 12 million PL/yr from 2003 onwards 12 Third Fisheries Programme (1990-1997) Government of Bangladesh/World Bank initiative to improve fisheries output through stocking of water bodies and aquaculture 15 40,000ha of seasonally flooded rice fields in the polderised areas of Noakhali District are gradually being converted into rice cum prawn production units with 80% pesticide reduction and 335Kg/ha production of golda. 22 over the last decade, with levels of ~ 750,000 MT in 2000 and 850,000 MT in 2002. More than 400,000ha of freshwater pond and in the order of 5 million households are involved. There are also some 37,400 shrimp ghers extending to 170,000ha producing 33,000 t of shrimp, together with 37,000 t of finfish and 1,800 t of mud crab. Nine major subsectors can be described, in inland and coastal areas. Pond carp polyculture accounts for 85% of production from ~400,000 ha, producing Indian and Chinese carps along with small indigenous species. Pond monoculture, from ~ 700 ha, produces a further 3%, mainly pangas and tilapia. Other systems, of far less output significance, include small-scale cage culture, hapa16 nursing, commercial cage fish culture, pen culture and lake/enclosure stocking. The emphasis for inland aquaculture remains mixed carp culture, with recent trends in adding other species and in improving stock quality. A current focus is on promoting small indigenous species, with important local food supply benefits, and increasing market prices. Here, optimum use can be made of water bodies, and many species are self-recruiting. Observed average annual yields are as follows: Pond polyculture: 1,500 kg/ha Pond monoculture: 2,500kg/ha Small scale cage culture: 30 kg/m 3 Commercial cage culture: 60 kg/m 3 Extensive shrimp (bagda17) culture: 188 kg/ha (excl. finfish, 235 kg/ha) Picture box6: small-scale cage culture Giant freshwater prawn (golda): 335 kg/ha (excl finfish, 417 kg/ha) Value added from aquaculture is currently estimated to total Tk 36,694 ($ US 643 M). With fully costed labour, profit margins are: pond polyculture, 57%, or Tk 43,000/ha (US$ 747/ha) pond monoculture, 42% or Tk 63,000/ha (US$ 1,105 /ha) small-scale cage culture, -20% (though generating employment income, and supplying food to poor households during the monsoon period when there is a severe food and income deficit) Commercial cage culture: 11% (pangas) – 16% (tilapia) or Tk 48.6/ m 3 ($ 0.85 / m3) Extensive shrimp (bagda) aquaculture, 46% or Tk 37,567/ha ($ 659/ha) Giant freshwater prawn (golda), 55.4% or Tk 75,099/ha ($ 792/ha). Allowing for uncosted owner/operator inputs in small-scale units, these systems all currently generate high profits, as most input costs are low. Whilst shrimp and golda fry are relatively expensive18, savings are made with the low cost of labour and limited use of other inputs such as feed and fertiliser. All of these systems have considerable potential for expansion. For carp polyculture, the largest subsector, a very significant number of small ponds or ditches (dobas) and some derelict ponds could be brought into use under multiple ownership. Recent analysis of the Mymensingh Aquaculture Extension Project (MAEP) shows that a modest extension effort raised average yields to above 3t/ha. In the seven district MAEP area, annual revenue from polyculture increased to nearly US$200 million from an investment of less than $30 million over a 13 year period. Other systems also exhibit strong growth potential including pond monoculture for pangas, though its market may be more limited19. Whilst cage culture and nursing systems e.g. for golda, presently offer lower returns, their scope for expansion as small-scale activities is considerable, given adequate access to resources. Profitability could also increase in 18 16 A simple fine mesh net bag suspended in a pond or other water body, in which fry or fingerling are stocked 17 Other species are also produced but in far smaller quantities Increased private sector hatchery production has reduced the price from Tk2/PL to Tk0.8/PL during the 2002 production season in Noakhali. 19 The market value for pangas has dropped by 50% during 2002. 23 Box 3: Mymensingh Aquaculture Extension Project (MAEP) A good example of the potential impacts of aquaculture development is given by the MAEP. Supported by the DoF with Danish technical assistance this was initiated in 1989 and is due to complete in 2003. The MAEP has developed ad promoted pond polyculture systems suitable for smallholders, with activities in 7 districts of the greater Mymensingh area with a current population of 17.8 million. The MAEP has had a tremendous impact on production in the project area; rising from 80,000 metric tones (mt) in 1989 to 329,000 mt in 2002. Average yield has risen from 4kg/Dec (1mt/ha) to 13.5kg/Dec (3.3mt/ha). Importantly, target group households reported a higher yield than non-target wealthier pond owners indicating the suitability of the MAEP approach. Production from the MAEP districts of 329 thousand mt represents 39% of the 850,000mt of inland fish culture production in Bangladesh though representing only 10% of its surface area. This demonstrates the clear benefits of public/private service delivery providing inputs, technology transfer and micro finance designed to promote optimised and diversified integrated food production at the homestead level. This productionapproaches impact translates to verymore substantial commercial using cages direct economic Conservative and with moreimpact. effective labour calculation management. shows that annual revenue from fish cultivation has Social benefits risen from USD 44.6 for millionthese in 1980 techniques to USD 235.7 are considerable food/income million in 2001, an given increase ofother USD 191 million. shortages for growers at the time of harvest. A recent area of expansion is that of microscale aquaculture in small borrow-pits and ditches and simple small hapas and enclosures. Evidence at this stage is that these systems, using low inputs and based on tilapia and other non-traditional stocks, can be very profitable over short-cycle production periods. Though insignificant in output they may have important roles in livelihoods of poorer and landless groups. Constraints to the expansion of aquaculture include access to land and water bodies, seed supply, soil fertility, water retention in ponds, organic pollution, susceptibility to flooding, and water shortages during the dry season. Disease and poaching are common risks, but particularly in the shrimp sector where White-spot virus20 has reached almost pandemic levels and has for now reduced larger scale commercial interest. In other sectors the development of polyculture systems, and the use of pond-dyke cropping are important in reducing risk. Poaching is reduced if ponds are close to dwellings and if social constraints are effective. Nonetheless, pond guards are a significant overhead cost in many systems. 20 Impacts can be reduced by screening broodstocks and fry and by care in exchanging water, but procedures are not well developed in Bangladesh. Picture box7 – family golda gher operations (or women tending to ghers) Social issues have been particularly prominent in shrimp farming where larger owners had replaced historically marginal/ smaller farmers, involving considerable rights abuse, conflict and social disruption. However this trend is now being reversed as risks in larger and more intensive farms had been too great, and profits lower than in smaller scale systems. The average size of bagda ghers (4.5 ha) has been gradually falling. Apart from disease risks, key problems for this sector include poor pond design and construction, high PL mortality rates, poor water management, poor quality supplementary feeds, and inadequate post harvest conditions. Table 9. Aquaculture sub-sectoral features Type of Output Value Employment Returns to aquaculture (mt) added labour Tk (Tk M) per day Pond carp 814,880 26,164 803,290 696 polyculture Pond 5,000 455 1,120 1,284 monoculture Small scale 10,000 11 1,200 45 cage /hapa culture Commercial 120 1.4 80 194-221 cage culture Pen culture 20,000 1500 2000 Significant Bagda farms* 32,824 7,674 94,342 223 Golda farms* 39,149 2,389 58,333 112 *producing an additional 22,500 t of finfish annually In spite of these constraints, low-input small scale systems are profitable, and there is good potential for expansion in bagda and golda culture, which continue to give returns to use of land and labour input considerably in excess of alternatives. Supplementary feeding, common and gradually improving in golda culture, could give significant gains in bagda systems, whose yields are well below 24 regional averages. However, if appropriately developed the simple systems now in use may have potential in meeting international interest in obtaining supplies from socially and environmentally accredited sources. Development along more conventional and intensified directions is also feasible and has potential provided stocks can be improved, better and cost-effective supplementary feeds made available, and disease losses reduced. Higher input levels will reduce profitability but overall returns will still offer considerable scope for growth. Much however, will depend on increasing management skills, improving core infrastructure – water supply and pond construction and support services. Post harvest functions Several different elements can be defined; those serving domestic markets – based on bulking, distribution, and limited processing, mainly drying, and those targeted towards exports, mainly for shrimp, involving grading, primary treatment such as cleaning and deheading, freezing and packing in bulk, catering or retail forms. There are some 3 -5 million workers within the domestic market and distribution sectors, generating a value added of Tk 38,356M, comprising Tk 33,302M from finfish and Tk 2,658M from shellfish. The fish processing sector employs a further 9,780 workers, (3,260 full time equivalents), adding value of 2,396 M (US$ 42 M). Within the overall supply and value chain, fishers/producers generate an average 50% of retail price, and value added within postharvest sector is generally small, the result of diversified markets with relatively high levels of competition between buyers and market intermediaries. Average margins from first sale to consumer are some 16% for fresh water finfish, 30% for marine finfish, and 16% in the processing sector. There is some evidence much greater margins for some marine species. Where demand is inelastic, with small numbers of buyers, fishers in remote communities may be more heavily exploited with margins as high as 75%. Conversely, farmers selling to village ghats may only lose around 10-20% of the final retail price. The fresh fish distribution system is generally efficient in retaining a locally acceptable level of fish quality and handling supply fluctuations, with wide network of traders and a reasonably efficient distribution system. However post harvest quality control could and should be greatly improved. Rural and urban market centres are well distributed, though informal markets, often favoured over municipal or BFDC21 facilities are poorly serviced. In contrast, the shrimp and prawn distribution system is inefficient and less competitive, compounded by difficulties associated with access to ghers, ultimately impacting on quality. Major concern relates to: Picture box 8– fish market declining supplies in the marine fisheries poor quality dried fish Financial and management constraints in BFDC markets Growth of ad hoc primary marketing centres with poor facilities and sanitation A failure of consumers to recognise the benefits of improved sanitary conditions on fish quality Freshwater prawn marketing systems at the local level provide a flexible purchasing mechanism whereby poor farmers can market anything from one 100g prawn to 50kg of prawns. However, quality control needs to be greatly improved. Around 20 % of the total output of marine fish is sold in dried form. While this provides a relatively stable and easily distributed product, much of the nutritional value is lost, and the use of chemicals and pesticides to cure the product and/or prevent insect infestation during drying is a source of continued concern for the health of consumers. Research to improve drying 21 Bangladesh Fishery Development Corporation 25 systems and develop alternatives to chemical use has been largely ineffective. The availability of surplus raw materials, as by-catch from shrimp trawling, or in seasonal gluts, has led over past decades to a range of proposals for further processing – salting, pickling, canning or re-forming (e.g. fish flours or fish balls) for domestic consumption, or for the production of fish silages or fish meal for animal feeds (including those for aquaculture). Whether artisanal or commercial, such initiatives are in theory very attractive, offering significant potential for increasing food supply, adding value and generating employment, However, they have been constrained by variable supply and quality of raw materials, by technology limitations, particularly for small-scale applications, and by poorly developed markets. Though future opportunities are not out of the question, they would require very careful assessment. and India. However, national output from aquaculture is increasing, and more people will become involved in supply. This may also bring about stable or slightly falling real prices over the longer term, and as more predictable aquaculture supplies increase, market chain rationalisation can be expected. However, the continuing diversity of retail market outlets will reduce tendencies to market concentration and greatly increased buyer power. Thus, wholesale and retail margins may rise over the longer term but are not expected to reflect significant monopoly positions amongst buyers. Picture box10 – shrimp process workers Picture box 9– typical market chain diagram Apart from remote fishing communities, the marketing system is not overly exploitative at present, with trading margins usually kept low through competition for raw materials. The balance of market power and social impact is however complicated by the role of aratdars (primary market agents) and intermediaries as sources of credit for producers, though evidence suggests that competition reduces the potential for exploitation. Within the fish sector, increased competition is likely, driven by demand, and some aratdars are already importing from Myanmar The shrimp and prawn distribution system is currently beset with poor post-harvest handling and excessive delays in product reaching processors. This is primarily associated with very dispersed production sites and market chain networks, and carries with it serious risks of product contamination and loss of quality. Quality control has been mainly directed towards processors, when many of the issues arise earlier in the supply chain; for example deheading of golda to allow for household consumption of the heads. The current reluctance of processors to become actively involved in the trading system will require to change if increasing demands for product quality and traceability are to be met. The process and export sector There are 124 processing factories in Bangladesh, mostly located in Khulna and Chittagong. Of these 73 are operational, whilst the others are said to be awaiting approval for HACCP22 certification. Capacity 22 Hazard Analysis and Critical Control Point – 26 far outstrips supply, and even the working factories only operate at around 18-20% capacity. will also need to be addressed, and management and monitoring systems developed to assure consumers that sound practices are in use. Product sales comprise 72% unprocessed (i.e. frozen whole) product, 24% prepared/preserved and 4% other products (largely frozen fresh water fish for export). Though it is suggested that Bangladeshi export prices fall below those offered for products from elsewhere, the evidence for this is not clear. Those price differentials that occur, unless due to under-reporting, may be as a result of a generally lower average sized product, or the product mix. The sector has benefited from a series of direct and indirect tax concessions, undertaken to promote production capacity and enhance export earnings potential, and more recently to facilitate adoption of HACCP standards and procedures. However, these incentives appear to have acted primarily to stimulate inefficiencies, and considerable rationalisation might be expected within the sector. The main markets for Bangladesh exports are the USA, 40%, followed by the EU (UK, Netherlands, Belgium and Germany), 39%. Demand is strong for both bagda and golda. Fresh water frozen fish is exported primarily for expatriate Bangladeshi communities. Other export commodities include salted and dried fish and mud crabs. However, the quantities exported, and their values, are not significant. The key concern for exporters is their vulnerability with respect to hygiene practices. Past experiences with inadequate quality control and the inability to monitor handling and process practices reliably leave them widely open to price downgrading or even the refusal to accept product. Due to a range of incidents, poor inspection results, and lack of trust by international buyers in the existing monitoring capacity, the reputation of Bangladesh product abroad is not robust. For these reasons, and to restore and build up the industry’s reputation, further improvements will be required for the system of quality control and post harvest care. Rising international concern for negative social and environmental features of the shrimp industry, and for working conditions within the production and processing sectors systematised approach for food sanitary control widely required for higher value international markets. 27 LIVELIHOODS KEY POINTS Civil society is important in ensuing continued access to common property and pro poor forms of aquaculture Broader policy planning processes are needed to reflect the livelihoods of poor people, with specific focus for needs of poor women and children Fish remains a critical element of food security in Bangladesh. Public policy needs to enable increased and sustained access to fish products by the poor. PRIORITY AREA Need to support policy/institutional frameworks that can understand and respond to the livelihoods of poor people engaged in fisheries RECOMMENDATIONS Landless fishing communities currently occupying Khas lands should be legally settled and given land rights The current policy of free access to open water fisheries should be examined as full time fisherfolk have suffered reduced access to the resource due to the policy Khas land occupation by large-scale aquaculture units should be stopped by improved planning and regulation 28 LIVELIHOODS It has been a particular aim of this review to understand linkages between sectoral features and their economic performance, and the livelihoods of different groups of people, particularly those who lack assets, rights and access to opportunity. By developing a better understanding of these linkages it should be possible to identify how change will impact on individuals, families and communities, and whether growth in the sector and its component elements might compromise the interests of poorer and more vulnerable people. Picture box11: rural family or community scene More positively, change might be harnessed to achieve improved outcomes in poverty alleviation, food supply and security, and social and economic empowerment. A livelihoods perspective also allows fishery sector activities to be defined within the wider range of options potentially available to specific groups, and the broader context of human and social development. Fishing activities are particularly associated with poorer rural dwellers in Bangladesh, as an opportunity to apply specialised skills and generate income, and as a means of access to food in seasonal shortages. Within the wider fishery sector, value addition and employment equivalents have already been used to define national and local significance. However, many other factors bear on the social impacts of the sector and on the implications of change. These include access to resources and rights to fish, opportunities for work within production and supply networks, distribution of earnings within communities and households, and processes of debt, indebtedness and access to credit. These link in turn with factors such as the effectiveness of social mobilisation or support networks, and human resource issues such as skills, information, security and confidence, There are also important issues of access and protection for women and children, and the implications for their opportunities and the security obtained therein. A key issue within the livelihoods perspective is the degree of dependence on fishery sector activities, and how that dependence, and its costs and benefits, is mediated by various social and economic processes. Here, profound longer-term changes can be expected in the balance of economic and ultimately political power between urban and rural populations, and in the extent to which small-scale, niche activities linked with traditional social processes remain available as safety nets for poorer people. While economic values of rural output for national markets could grow, the distribution of that value may become more concentrated. However, in potential mitigation, local, national and international civil society agents have been significant in promoting the interests and opportunities for poorer communities. There are also important linkages with the natural resource base and its capacity and quality. This applies both to the significance of Box 4 : Poverty definitions and the fishery sector It is important to clarify the relative positions of groups of people with respect to their access to fishery sector activities and the benefits so derived. A key challenge is to identify those whose poverty, by any indicator, is extreme, and to understand how their opportunities are constrained and how these constraints may be eased. Several categories can be applied, eg World Bank (Rashed un Nabi et al, 1999) – rich, the middle, the social poor, the helpless poor and the bottom, or hated poor DFID/BIDS – tomorrow’s poor, moderate poor and extreme poor - based on calorie intake, food deficit, land ownership, per capita income and household income CBFM2 – 5 categories based around the moderate and extreme poor, and involvement in fishing The extreme poor are heavily represented amongst widows, deserted women, older people, disabled, highly concentrated in riverine areas with poorer infrastructure and less productive land, lack assets (only 50% own homesteads) and opportunities (60% in day labour), have poorer health, higher morbidity, poorer education, lack patrons, access to officials, access to credit, are likely to be socially excluded from NGO groups and community organisations. 29 Box 5: Gender There are important gender dimensions in most aspects of the fisheries sector, though these are often either ignored or imperfectly understood. Full time and part time professional fishers in open waters are invariably male. However, women are involved in fisheries activities such as net weaving and repair, collection of fish fry and shrimp postlarvae, fish processing and in some cases selling fish in their locality. Women can be involved in subsistence fishing, though the cultural restrictions on their mobility mean that they normally only fish close to their homes. In general, relatively few women have traditionally been involved in aquaculture. However, notable benefits to women have been identified. Land and productive assets still normally fall under the control and ownership of men: women still require permission for most decisions involving household expenditures and this is a severe constraint to their full participation. The improvement in food security resulting from a productive pond is a significant benefit for a woman both as the household manager and with their families, as a potential consumer of the increased protein and other nutrients which fish provide. Women report an increased status in their communities as a result of their increased knowledge of aquaculture. In addition, roughly half of the people employed in shrimp/prawn processing factories are women. Within most poor households, women’s diets are less nutritious than those of men, and pregnant and lactating women are more vulnerable to problems caused by poor nutrition. The availability of fish, or the opportunity to purchase better quality food can have significant health impact. specific resources for particular groups, and to the impacts of human induced or other change on these resources. In addition to broad indicators of resource output such as trends of production and price, more localised, species-linked issues can be defined. One such is the importance of smaller indigenous aquatic species, whether in capture fisheries or aquaculture, which form a large part of the fish diet of poorer and often nutritionally deficient people. Here also, growing commercialisation will lead to changing levels of exploitation and the removal of access to traditionally less favoured species for local, often opportunistic consumption by poorer groups. The following sections set out the important livelihoods dimensions of the fisheries, aquaculture and post-harvest sub-sectors and the livelihoods perspectives for poor consumers respectively. A separate section then addresses environmental issues. These are all taken up further in considering the directions and implications of future developments. Given the difficulties of introducing improved management regimes, it seems unlikely that the overall decline in output will be reversed. However, capture fisheries are a relatively open access activity for poorer and landless people, and become a source of last resort income. More widely derived processes of impoverishment, whether longer or shorterterm in nature tend to result in greater numbers of people increasing their dependence on fisheries. The current expansion of aquaculture will lead to the compartmentalisation of wetlands or use of floodplains for rice cum fish/prawn and community based aquaculture. Typically seasonally fallow land submerged during the monsoon provides an area where the landless can glean food23. A change in land use will reduce the landless’ ability to cope during food insecure months, hence alternative income generating activities need to be provided. In coastal areas in particular such increased dependence has placed additional pressure on stocks and increased conflict between and within fishing communities. In inland waters, the numbers of professional fishers have reduced, and those engaged part-time to near full time have increased. Seasonal fishers exploit not only areas such as the floodplain, previously not fished intensively, but increasingly also the beels and other areas left ‘vacant’ by professional fishers who have left, or been forced to leave the fishery. Access to fishing resources, and management, emerge as key factors in livelihoods of those dependent on fishing. This is equally as critical in both coastal fisheries, with relatively open access, and inland fisheries where a range of public and private sector agents control access to water bodies through formal and informal mechanisms, whose primary function is to extract short-term rent. Provisions for longerterm sustainability of resources, or for supporting or enhancing equity are negligible. Where management measures are applied they are likely to serve elite interests, and tend to enforce social sanctions of poorer sectors. These positions are further strengthened by the increased private capture of resources through the use of water 23 Capture fisheries All capture fisheries of Bangladesh are under intense pressure and social competition. A study recently carried out for Danida in Noakhali has shown that 28% of the landless depend on access to seasonally flooded private and Khas land for 100% of their animal protein intake during the monsoon and 15% of their annual income. (Alamgir Chowdhury et al 2003) 30 controls, or private attraction devices. fish sanctuaries or Key livelihood issues There is substantial local variation in the importance of fisheries, as reflected in local economies and within rural households. Contributions to household nutrition and income also vary greatly from year to year, due mainly to wide fluctuations in catch associated with variable flooding conditions. Key issues are that: Part time fishing is a significant activity for the landless in many parts of the country Roughly 50% of the subsistence24 catch is sold overall; the landless and poor sell a greater proportion of their catch Children play a large role in subsistence fishing and selling Women’s involvement in fishing is commonly limited for sociocultural reasons, except for very poor and/or older widows Women are particularly vulnerable to intimidation in resource access conflict Relatively few fisher families are totally dependent on fishing for their livelihoods and this is particularly true of inland fishers. Normally, even professional fisher families have a diverse range of strategies with which they create their livelihoods Many of these other livelihood strategies also rely on natural assets associated with fringing environments, which vary with location. The more land a household owns, the more of their livelihood will come from farming activities Social tension and conflict are particular sources of vulnerability in conditions of change and increased resource pressure Literacy levels in most fishing communities are lower than the national average. Fishers have skills and knowledge related to fishing and fish selling but few other specific skills to which they can easily turn for alternative income generation. Minority fishing community groups are having their access to the resource reduced due to common access and social pressure. Resource and management Issues Fishery-related livelihoods depend particularly on the extent and quality of resource, access opportunities, and the way in which all of these are managed. Key issues are that: Livelihood implications 24 Broadly defined as being carried out directly for food supply, or supporting communities through traditional systems of social exchange -- rather than explicitly for market sale Planned and unplanned changes to the hydrology and management of inland waters have resulted in loss of significant fishing potential; The Open Access Policy (1995) has tended to reduce the access of poor fishers to open water fishing Leasing policies for closed jalmohals are not implemented in a way which gives poor fishers sustainable access to and control over water bodies There is competition between artisanal fishers, and other fisher groups, particularly in coastal areas Civil society groups have been important in mobilising communities to strengthen the position of poorer groups in gaining access to resources. However, there are concerns about how effective these processes can be without continued external support. The increase in numbers of fisherfolk and the declining catch mean that it is very difficult for the poor to secure a livelihood from fishing activities alone. Artisanal/coastal fishers are vulnerable to exploitation by buyers in increasingly competitive conditions when dependence on credit increases. It is difficult for most fishers to do more than hold on to existing livelihood assets; fishing provides few opportunities for increasing assets or reducing vulnerability, but is essential in allowing livelihoods to continue Livelihood diversification even by full-time traditional fishers has begun and is likely to develop further. However, due to new entrants into fishing, the overall level of dependence may not markedly reduce. Though the capture of wild post larvae has been blamed for the decline of some fish species, the fishery has been highly important for a substantial group of the very poor for whom few fishing alternatives can be discerned. Livelihoods approaches need to recognise the complete context in which communities are placed, in which fisherylinked constraints and their resolution may not be the only route for change. 31 Box 6: Floodplain fisheries management, enhancement and livelihoods In many floodplains it had been the practice to leas waters annually to the highest bidder by the Ministry of Land. As a consequence, persons with capital, not necessarily engaged directly in fishing or even residents of the area, often got the leases and then sublet them. Under the New Fisheries Management Policy proposals were developed to allow better access by fishing people. Under the World Bank Third and Fourth Fisheries projects, and other initiatives, floodplain management committees comprising representatives of fishermen, NGOs, local government officials, and the Department of Fisheries were established in selected locations to take up water body leases, develop fishing plans for the area, decide on the annual fee for each type of gear used, based on such factors as gear efficiency, flooding level, and the risk of over fishing and poaching. The combination of motivation and licensing has the aim of improving the ability of fishing groups to organize themselves, take advantage of increased project benefits, and contribute to cost recovery. While many of the operational details associated with participatory management are still being worked out within the local communities, there are positive signs in some locations, with fishing groups developing and making collective decisions, closing off fishing areas, building sanctuaries and rehabilitating nursery areas, and wintering water bodies. In a limited number of cases, alternative income generating activities have been identified to cover periods in which fishing activities are suspended. However, conditions vary – socially and ecologically -- very widely, and it is difficult to be certain at this stage that many projects deliver sufficient benefits, particularly if project support inputs are required, eg to engage NGOs in community mobilisation. Furthermore, although stocking water bodies appears to be a positive initiative, the fishing resources are often complex, and the data and information required to make good management decisions can be difficult and expensive to acquire and maintain. Moreover, in many project locations, genuine representation by poorer fishing groups is still hard to obtain, even with social support, as local elites are often in a better position to gain access and influence. Even without their direct involvement in management groups, the influence they may have as sources of seasonal credit, or market buyers, may still continue their dominance in decision-making. At best it must be realised that with good site and community selection and with broader-based support and involvement (ie with a wider livelihoods approach), the potential for financial returns on better managed fisheries can be an important incentive to maintain local management structures. However, a ‘one size fits all’ approach is unlikely to be workable and reduced access to the floodplains by the landless will certainly harm their incomes and animal protein intake. Fishing pressure on coastal stocks means that artisanal fisherfolk need to travel further offshore to find fish. As their boats are not equipped for this (nonmechanised and small), the better off are providing the boats and using the artisanal fishers as labourers thus reducing incomes and increasing risks. Community based fisheries management The role of local, community based fisheries management is one of the most interesting and potentially rewarding in terms of establishing local responsibility for natural resources, improving the efficiency and accountability of management, and creating structures whose economic outputs and social distribution features provide the potential to be self-sustaining in delivering equitable outcomes. In cases where these are combined with rehabilitation of water bodies to create better access and better habitat for fish stocks, or where low levels of stocks can be enhanced with the addition of new seed (Box 6) these potentials can be even more marked. However, the difficulty of establishing and making operational these systems cannot be underestimated. Particularly so if they confront existing power structures and have inadequate internal strengths. The time taken to establish durable self-sustaining management structures involving poorer groups can also be considerable. The requirements for resource management data and the means to apply these in effective management action are also relatively little tested at this stage. The costs of support and of information supply and management and the unproven effectiveness of sanctions for non-compliance with management controls are also practical concerns. Notwithstanding these issues, community-based approaches, perhaps if extended to embrace a more complete array of livelihood components in which communities may have a role, represent one of the few means by which these systems might managed Aquaculture Livelihoods connections with aquaculture are also complex, and for poorer groups its growth has brought both negative and positive effects. Most of those engaged directly, even relatively poor smaller-scale producers, possess some assets, and commonly have at least small land holdings and access to funds or initial and working capital. However, some form of aquaculture; small-scale cage culture, hapa fry nursing, community pond or enclosure production and fish culture in rice fields, may be directly accessible for poorer households, requiring little initial asset base, but some degree of organisation for social support, skill development and longer-term protection of land or water assets. In other respects poorer groups are negatively affected when aquaculture producers appropriate open water bodies or 32 khas land or block their connection to river systems, thereby depriving access to a vital livelihood resource, or reducing its fishery potential. Where aquaculture supplies compete with those from capture fisheries, prices may drop, or more significantly, traders may take advantage of greater supply competition to increase their power, particularly in more remote communities. Positive effects can however arise when aquaculture development provides new income earning or employment opportunities. As well as building new ponds, and repairing existing systems, labourers are often hired to harvest fish, and with expected increases in output and productivity these demands are likely to increase. A secondary benefit is that labourers may share less marketable small fish and other aquatic organisms for their families’ consumption. Bagda shrimp culture has had a particularly notable impact on the livelihoods of many people in coastal areas. While some households have seen significant financial benefits, either from conversion of land to shrimp culture or from opportunities for wage labour in the new developments, others have been forced from their land to make way for shrimp farms. In many cases, neighbouring plots have suffered from salinity intrusion. Marginal farmers and the landless have benefited from the need for post-larvae, but as earlier outlined, these activities are also of questionable sustainability. The production of golda has been important in improving the livelihoods of many thousands of moderately poor households in SW Bangladesh, though risks associated with disease losses, rising costs of seed and locally produced feeds, and high costs of credit, had reduced returns and some cases led to significant losses and the need to sell land, ponds and other essential assets. The introduction of polyculture and dike-cropping techniques, diversifying income and reducing risks has been helpful in maintaining benefits. However the continued expansion of the sector has also been an element in blocking access to open water bodies and reducing fishing opportunities. In all cases, expanded output has increased economic activity in rural areas and brought about increased demands for inputs and services, creating a range of secondary opportunities, many of which are accessible to poorer groups, particularly in labour supply, but also in collection, production or sale of inputs. A recent development has been the emergence of specialised work teams contracting to build and repair ponds. Key livelihood issues for aquaculture Not all forms of aquaculture production are accessible to poorer or more vulnerable groups. However, some forms, if properly selected, have good potential for financial returns and do not add significantly to risks. In such circumstances, asset bases can be significantly improved, and poor groups can gain resources and social standing. Women and children have normally been involved in household linked activities such as preparing simple feeds, mending gear and collecting fish for domestic use. Box 7: Small-scale cage culture for poor communities Rampur village is on the banks of the Purnabab River in the northern part of Bangladesh. It is a village of Hindu families whose profession is fishing the river during the flood season. During the winter months these families frequently went hungry as there was little water in the river and most of them had no land for farming. Now they grow fish in small cages in the river and they can eat all the year round. The fish are fed on freshwater mussels that grow there, and rice bran. The traps are guarded by the community, which uses a shift system to which each family contributes. This method of growing fish has kept these villagers in a profession many of them thought was disappearing. With the profit from the cages the villagers hope to build more and expand the business. The development of these new skills has also strengthened the communal and social bonds in the village. These changes are just important to them as the financial gains they have made from growing fish in cages. (Source: ‘Fisheries in the Livelihoods of the Poor’, Jim Monan). Some forms of aquaculture can increase their direct involvement in production and for women to gain greater financial standing Other opportunities relate to the production of fish in golda ponds, to fry nursing and to dike crop production. Access to natural capital (land/pond) and financial capital (credit for inputs) are major constraints for the poor, although the private sector in Noakhali is providing PL on ‘pay at harvest’ terms. Khas land and ponds are often denied to the poor even with the support of policy or local institutional organisations No policies exist to support those forms of aquaculture which are accessible to the poor. These are needed to permit secure access to public or privately owned water 33 bodies to rear fish in cages and pens Few institutions currently have the capacity to spread the knowledge and application of pro-poor technologies. For poorest groups, social organisation and asset protection can be particularly important, and would require similar levels of care to those involved in community fisheries management. While labour inputs in aquaculture can be important, there are few safeguards with respect to work conditions. Informal opportunities for food supply in collecting unmarketed fish after harvest may diminish as cultures become more specialised and more species go to market. Picture box12 – women breaking snails important. Employment conditions are often better than those in surrounding areas, and with significant numbers of seasonally mobile workers, accommodation, basic health and other services are sometimes available. This sector offers particular opportunities for women and while this has increased independence and self-sufficiency, it may be at the expense of separation from families and children during the production season. Traditionally, work opportunities were associated specifically with seasonal patterns of capture fisheries, though nearer urban centres, the aggregation of supplies from a range of sources would tend to level out some of the more extreme variability. Though aquaculture production has tended to widen out supply, and hence the potential to extend employment through longer periods, much of this is still seasonal and to some extent related to specific periods of seed and water availability. Consumers Post-harvest activities The market chains for both capture fisheries and aquaculture production involve significant numbers of people, commonly working as day labourers, offering short-term inputs for specific but normally unskilled functions such as transport, grading and packing of product, shipping and breaking block ice, washing, salting and drying fish, portering in market stands, assisting retail purchasers. A range of informal tasks, often carried out by children includes assisting with carrying and grading fish, collecting supplies, conveying information. Most labour is contracted based around prevailing wage rates, though networks of patronage usually determine the amount of work available, and the terms in which payments are settled. A more organised structure can be described for process workers, particularly those in the export sector, for whom levels of training and awareness of issues such as hygiene and quality control are becoming increasingly Primary livelihood associations for the fishery sector have been described in terms of involvement in production and in labour supply, mainly for poorer and more vulnerable people in rural areas. The issue has already been noted of the risks associated with declining capture fishery access and output, and increased commercialisation of both fishery and aquaculture sectors, in providing a consumption safety net for poorer rural households. While this may be compensated for some by increased purchasing power associated with better wage labour opportunities, such options may not be available to more vulnerable groups, for whom access to good nutrition may also be more critical. There are therefore continuing concerns about how wide access to fish consumption can be maintained. The availability of fishery or aquatic products to the population as a whole is also a livelihoods issue. This is particularly the case for poorer people in urban areas, for whom access to higher quality food through conventional market routes is an important element in health and nutrition. Where fish continues to be a culturally important item of consumption, significance is also attached to the ability to purchase it regularly, and its importance in social exchange. The limited evidence available suggests that although alternative protein sources such as milk and eggs are become significantly 34 Picture box13: poor urban settlement cheaper and more accessible to poorer groups, fish continues to occupy an important place in urban diets, and consumers actively seek opportunities to purchase fish. Better physical access to urban markets has meant that a wider range of fish is available, including those which are less favoured and cheaper than the higher priced Indian carps, pangas, hilsa, marine fish and the more valued small indigenous species. Due primarily to aquaculture production, the real price of fish has remained relatively stable over the last decade. With rising average incomes and continuing population growth, the potential for prices to be contained and remain within the reach of poorer consumers will depend on greater growth rates in output. improve, though this will also depend on other social factors, including their own opportunities to earn cash income. Key livelihoods issues Consumption for poorer groups is critical amongst both rural and urban populations The poorest members of the community depend on access to floodplains, beels, roadside borrow pits etc during food insecure months. Changing land use, including unplanned aquaculture, is reducing access. Artisanal fishing communities are also suffering form the combined effects of overfishing and reduced access to the resource. In rural areas, poor people have traditionally consumed a wide range of unmarketed aquatic plant and animal species Declining trends in inland capture fisheries may threaten their food supply Greater market demands for a wider range of species may reduce access, e.g. to small indigenous species, and reduce food quality Poor women and children are a special concern as their nutrition needs are unmet. Real prices of aquatic products will be critical for access amongst the urban poor. Some potential may exist for wider marketing of poorer quality marine fish, particularly those taken as bycatch in shrimp fisheries, but prices of these species will have to rise sufficiently for an adequate return to be available for vessel operators, and to cover market margins. Increased supply from aquaculture is likely to occur, and to retain a substantial focus towards domestic supply, hence increasing the potential for prices to stabilise or even decline. The implications for livelihoods are primarily in terms of widening opportunities for food security and increasing the disposable income for other necessities. This in turn would lower access barriers amongst poorest sectors and improve their overall human development or livelihood indicators. Within households, access to better quality food for women and children would potentially 35 ENVIRONMENT KEY POINTS Lack of fresh surface water in the dry season will be the main environmental issue and a critical development challenge facing Bangladesh and the region over the next century. Most of Bangladesh’s fresh water arises outside the country in India, China, Bhutan and Nepal. Fresh water issues are political in nature. It is predicted that Bangladesh will be amongst the countries most impacted by global climate change. Risks of agricultural, industrial and human contamination of fresh water systems and aquatic foods are potentially serious. PRIORITY AREA Capacity to understand and respond to the longer-term implications of water and climate change is required. Conservation of dry season water and protection of water bodies from drainage for protection of fish stocks and other aquatic resources. Enforcement of existing regulations related to industrial pollution, agriculture chemicals and encouraging appropriate treatment of human waste. RECOMMENDATIONS Encourage regional and bilateral dialog on water sharing and water shed management. Take steps to protect watersheds in Bangladesh. Develop capacity to understand and respond to the longer-term implications of water scarcity and climate change. Develop integrated planning and management systems for water use and develop systems to conserve water for the dry season. Encourage manufacturing associations, foreign buyers and concerned GOB agencies to cooperate in development and enforcement of industrial pollution regulations. 36 ENVIRONMENT A range of issues contributes in determining the future potential of the fishery sector and the ways in which livelihoods will interact with these. Though the primary focus here is on the aquatic environment and its ecosystem quality in inland and coastal areas, these are closely connected with atmospheric and terrestrial systems. All in turn are increasingly subject to human-induced change, and impacts arise out of localised and distant processes alike. This is particularly the case for Bangladesh, being located at the seaward end of three major world rivers all arising outside of Bangladesh: the Ganges, Brahmaputra and Meghna. Bangladesh is largely flat and low-lying, 80% of its area consisting of floodplains. These have in the past supported rich and diverse ecosystems while providing livelihoods for a large section of the population. They supply the bulk of the country’s water, and play a key role in assimilating and diluting waste, attenuating and regulating floods, drainage, recharge of aquifers, and maintaining aquatic habitats. However, though abundant and sometime seasonally excessive, they are under increasing pressure, with severe problems of drinking water supply, sanitation, and increasing seasonal drought risks. Hydrological interactions The country is interlaced with more than 24,000km of river channels, while significant monsoon flooding arises from intense rainfall in the Brahmaputra, Ganges and Meghna catchments, 90% of which lies outside Bangladesh. These are intensified locally by the flat terrain, and the high number of channel confluences, causing backwater effects. In tropical cyclones, low barometric pressure elevates tidal levels, exacerbating this effect and greatly increasing risks to life and livelihood for those in the fishery sector. The high migration rates of the major river channels renders flood defence problematic, as these are highly vulnerable to erosion and risks of widespread flooding. These massive infrastructure developments, while improving life for many, also disrupt natural drainage, leading to increased likelihood, intensity, and duration of flooding in some areas. A significant factor for fisheries and aquatic resources is the extent to which this complex of hydrological features is subject to physical interventions in controlling water flows and protecting land areas. Flood control structures now affect roughly 62% of cultivable land in the country, and 35% of total land area, with more than 3,674km of coastal embankments; 8,881 km of inland embankments; 7,907 hydraulic structures and 1,082 river closures. These structures reduce seasonal floodplain areas, restricting access of spawning stocks and fingerlings, concentrating migrating fish into locations where they are more easily exploited, and in changing physicochemical quality through changes in salinity and sediment loading. In addition they encourage drainage and have contributed significantly to the loss of dry season wetland area. Fresh Water Regional Issues Studies by the CIA and others identify the lack of fresh water to be the dominant environmental and possibly the most important development issue facing the northern parts of the sub-continent in the coming century. The CIA’s interest is based on potential conflicts arising from the lack of fresh water in the region. Box 8: Water Access to fresh water will be the key environmental issue of the next century. Inland and coastal fisheries and associated livelihoods will be negatively impacted as a result of dry season water scarcity. Climate change, industrial pollution and an increasing requirement for agriculture related irrigation will add to the cascade impacts. There is little government capacity or even awareness to deal with this looming issue The evidence for this is compelling. As a result of upstream interventions, particularly the Farraka Barrage, dry season water flows in the Ganges River within Bangladesh have declined by as much as 50-75%. Head cutting losses in other rivers have been shown to have reduced those flows by as much as 30%. The water sharing agreement between India and Bangladesh signed in 1998 calls for minimum flows of over 28,000 cumecs in the dry season compared to historical flows of 75,000 cumecs or more. These reduced dry season flows are causing changes in dry season salinity levels in the Sundarbans mangrove system as well as in the aquifers of SW Bangladesh. This loss of fresh water is also a part of the explanation for the continuing loss of dry season wetlands throughout NW Bangladesh. In addition this barrage has caused an almost total collapse of the Ganges hilsa fishery and much of the major carp fishery in affected areas. 37 This region’s population will exceed 1.5 billion by 2025 with the majority residing in the Ganges watershed. The Punjab region, India’s breadbasket, is now facing water stress. Water stress is defined as extraction of more than 10% of available water supplies. It is predicted that by 2025 population pressure and increased demands for water will result in the extraction in excess of 40% of available water resources. The entire Ganges basin is predicted to be suffering from water stress by that period. Plans are now underway in India and possibly in Tibet/China Picture box14: industrial development or waste water scene for Bangladesh 3mm a year. The rise in greenhouse gas emissions and increase in temperature may cause sea level to rise a further 50cm – affecting up to one third of the coastal area – by the year 2050. A sizeable part of the coastal zone is subsiding, so sea level rise may be greater, though this may be partly balanced by sedimentation25. Tidal ranges have also increased substantially in recent years, related to changes in coastal hydrology. A one-metre rise in sea level is forecast to cover 14% of Bangladesh displacing 10% of its people and 14% of its agriculture. The total economic output lost would be equivalent to 13% of the country’s GDP26”. Agricultural intensification to further divert flows from the Ganges and Brahmaputra. Political pressure in India, Tibet and Bangladesh will force further interventions in the region’s water systems and are likely to result in the damming and diversion of most major river systems. The lower reaches of the Indus River in Pakistan has no flow in the dry season with devastating effects on the freshwater and estuarine fisheries of that region. Without comprehensive watershed and water planning a similar fate is likely to overtake the MeghnaGanges- Brahmaputra system. Climate change All of these must be placed in the context of probable major climatic change over the coming century that is likely to have severe, but somewhat unpredictable effects (Box 9) in that longer term trends in global warming will be associated with greater climatic variability and a higher incidence of extreme events. Changes in sea level, precipitation, evaporation, sedimentation, erosion, and the timing of climatic events will impact – largely adversely – on the development of fisheries. Sea level has already risen by 10-25cm over the last century, and continues to rise some Levels of cropping and yields have been steadily increasing, partially due to higher yielding crop varieties, particularly rice, and partially due to more intensive use of land, clearing of shrub and tree cover, and increasing annual crop cycles. Traditional fertilising and tilling techniques are being replaced and increased use is made of inorganic fertilizers and pesticides. More intensive production of chickens, cattle and goats is matched with a similar trend in fish culture. There are widespread concerns for declining soil fertility and structure – and hence greater erosion risks – for nutrient imbalances in land and water systems, and for the impacts of pesticides. Water pollution Urban pollution Municipal wastage includes raw and partially decomposed sewage, solid wastes, human excreta and slaughter wastes. Urban sewerage and waste treatment is poorly developed and in most cases non-existent throughout the country. Dhaka is the only city with a sewage treatment plant, but this has limited capacity. The human excreta load, estimated at 250 t/day in 1988 was expected to increase to ~ 490 t/day by 2000. Solid wastes produced daily in Dhaka City vary from 1,500 t in the dry season to 2,000 t in the rainy season. Elsewhere, particularly in urban areas, the situation is no better. Though river flow is usually sufficient to dilute the load the dry season dilution factor and capacity for selfpurification has reduced considerably. 25 26 Danish Hydraulic Institute (2000) World Bank (1996) 38 Industrial pollution Most industrial units discharge effluent directly into river courses. These include ready made garment dying factories, tanneries, pulp and paper mills, distilleries, steel mills, oil refineries, ship breakers, shrimp processors, and producers of fertilisers, chemicals, pharmaceuticals, rubber and plastic, sugar, pesticides, paint, cement, jute and textiles. While many are concentrated around urban centres, others, such as jute retting, also occur in rural areas. Discharge of industrial effluents is largely uncontrolled despite regulations. Common wastes include ammonia, chromium, mercury, phenols effluents, colour compounds, solids and sludge. Pollution in urban centres, particularly in Dhaka, is locally serious, but wider impacts on soil and water quality and possible impacts on fisheries and livelihoods are poorly understood. Moreover heavy local pollution in the vicinity of Khulna, including heavy metals and domestic wastes, may adversely affect production of Bagda and Golda. Testing of processed shrimp has at times shown high heavy metal levels and coliform counts. Chronic spillage of oil, and residual heavy oil sludge, lubricants, engine oil and possibly PCBs, discharged during ship breaking operations in Khulna and Chittagong have been identified as a major source of pollution affecting coastal fisheries. Pesticides Pesticide use continues to increase rapidly, and 12,000t were imported in 1998, a threefold increase over a decade. According to Deb (1998) about 2000t of pesticides are washed from farmland through the aquatic system. Though reduced usage through integrated pest management (IPM) has been promoted widely, national levels of participation are as yet limited. Recent shifts to more intensive vegetable production may increase pesticide use as IPM techniques are not as widely promoted as for rice. Evidence suggests that environmental degradation not only continues apace, but that its rate is steadily increasing. Degradation and scarcity of water resources can be as damaging for human health as for aquatic organisms, through consumption of microbially or chemically contaminated produce Fisheries and aquaculture interactions A number of negative interactions have been identified between fisheries and aquaculture development and the environment. In the case of aquaculture, these may include: Inappropriate use of chemical fertilisers, pesticides, and disease treatments; Introduction and spread of diseases Discharge of nutrients and organic matter from more intensive systems, Localised dumping of shrimp process waste Excessive harvesting of food organisms such as the apple snail (P. globosa), Excessive harvesting of wild shrimp larvae and destruction of associated bycatch Conversion of natural habitat, particularly wetlands, mangrove and intertidal flats, and associated spawning and nursery areas; Box 9: Climate change scenarios Studies undertaken in Bangladesh have concluded: Climate change and sea level rise will affect the whole of Bangladesh; The whole coastal zone is highly vulnerable to saltwater intrusion, even under a low climate change scenario; Both coastal and freshwater fisheries are likely to be adversely affected by changing temperature, siltation, inundation and salinity regimes Climate change will negate many of the benefits of development, particularly in infrastructure and agriculture; Rice and wheat yields are likely to decrease; and Bangladesh’s institutional capacity to respond is very low. While the potential for fisheries and aquaculture remains strong, in spite of these serious challenges, which will show discernible effect this decade, the features of both sectors will change and will require to be accommodated in development, management and policy. Most critically, the wider impacts on livelihoods will increase the pressure on resources, potential social conflict, and challenges for the more vulnerable. Modifications to water and soil salinity regimes through infrastructure construction Disturbance of acid sulphate soils Species introductions Bangladesh is rich in fish diversity with 266 species of inland fishes and 442 marine fishes. Many species have been introduced (Table 10) mainly for aquaculture production in closed ponds, but can escape and disperse easily. Species such as Oreochromis mosambicus (tilapia) may compete with the small indigenous fishes and gradually occupy their niches. Of all the species introduced to Bangladesh, only Common Carp and O. mosambicus are known to be breeding in the wild. With the exception of O. mossabica in estuarine areas, none of these introduced 39 species are known to exist in significant numbers. It has been suggested, without supporting data that exotic introductions may have contributed to 54 indigenous species becoming threatened within a very short time27. It is more likely that a loss of habitats and over-fishing are the cause of the decline of most of these species, again with the exception of estuarine species impacted by O. mossabicus introductions. However, species such as Puntius gonionotus, Clarias gariepinus and other introduced Pangasius spp are competitors of existing species and might create a final pressure on species which are already under threat. Industrial effluents are a growing problem and bio-accumulating materials need particular care Impacts of fishing practice – such as larval catching or the use ESBN– are theoretically of major significance but the impacts of specific practices amongst the general are not clear; There is a strong case for the protection of key habitats such as the Sundarbans, which probably have an important nursery and biodiversity conservation role Picture box15: Sundarbans Further concerns relate to biodiversity – a range of GEF28 studies is currently under way, including assessments of common carp introductions, analysing the genetic quality of hatchery species, developing a management plan for hilsa fisheries, and assessing the biodiversity impacts of various water management structures and their operation. Table 10: Introduced species Siamese Gourami Trichogaster pectoralis Goldfish Carassisus auratus Tilapia Oreochromis mossambicus; Oreochromis niloticus Guppy Lebistes reticulatus Common Carp Cyprinus carpio Grass Carp Ctenopharyngodon idellus Silver Carp Hypopthalmichthys molitrix Thai Sarputi Puntius gonionotus Mirror Carp Cyprinus carpio Bighead Carp Hypothalmichthys nobilis Black Carp Mylopharyngodon piceus African Magur Clarias gariepinus Pangas Pangasius sutchi Giant Pangas P. giganticus Coastal and Marine Environments The environmental interactions with coastal and marine fisheries are more difficult to define, partly because of less precise data, and partly due to even greater difficulties of measuring catches and their distribution. However, a number of conclusions may be drawn: 27 28 Environmental Management Strategies A range of strategies is currently being developed. Along with the necessary technical approaches it is most important that these recognise the needs and livelihood options of dependent communities, and that realistic approaches are developed with these in mind. A considerable task is in hand simply to inventory key biophysical resources and to model and represent their interactions (e.g. using GIS approaches) and more challengingly to describe key interactions between these and the social and economic dependence. Only when these are done can practical planning and monitoring be considered. Impacts of pollutants are known to be severe in areas adjacent to the coastal cities of Khulna/Mongla and Chittagong. Coastal areas immediately adjacent to these cities are likely to be affected. Plans to dispose of solid waste at sea and bilge cleaning by ships are of concern. IUCN Bangladesh, 1999 Global Environment Facility 40 LEGAL AND REGULATORY FRAMEWORK KEY POINTS: The present framework lacks coherence and effectiveness; governance is critical The protection of resources and rights is difficult within existing framework International agreements will have increasing impact and need to be brought into the national context and process RECOMMENDATIONS: Ensure that the framework reflects the national requirements and is in line with the policies Promote social and environmental protection and create enabling environments for rural investment Fishery and related water management laws, rules and regulations should be enforced as a means to protect natural resources and the livelihoods of those that depend upon them. Laws and by-laws should be reviewed and updated to ensure that they link with recent GoB policies and international agreements and at the same time the practice of regulation by memos and circulars, as used my the MoL, is reduced. Revise the restrictive laws and management systems that may contradict with the customary rights of fisherfolk and those that depend on aquatic products for their livelihoods as the current system tends to reduce access to CPR by the poorest sections of the community hence their needs and welfare are largely unmet. Mechanisms should be put in place to allow the most vulnerable groups in society access to legal support to avoid ‘land grabbing’ tendencies by local ‘elite’. A legal provision for an exclusive coastal artisanal fishery area should be considered. 41 LEGAL AND REGULATORY FRAMEWORK Responsible management of the fisheries sector requires effective governance in a coherent institutional context, supported by a suitable legal framework. In broad terms this framework can be understood to provide an operational structure, created and endorsed through societal negotiation. Within this a range of activities and interactions can take place in a safe and ordered manner, with incentives for desired actions, and sanctions for those that are not. It connects people and institutions, articulates policy, and expresses both ethical and managerial concepts. In the context of the fisheries sector, this framework comprises a range of different elements and engages with a range of issues, some of which are closely associated with the sector, some generic, and some with only incidental or occasional relevance. Amongst these, however are: The ways in which the rights of individuals, groups and other entities are defined and sustained, particularly with respect to resource access, and to selfdetermination Protection available for natural resources and environmental quality, particularly as they apply to water bodies, aquatic ecosystems and exploited aquatic species The environment within which civil society organisations and businesses can operate, their financial management, and their rights and responsibilities for natural resources, to clients, workers, consumers and others. Ways in which conflicts of various types and levels can be addressed and resolved Responsiveness of the process of law to changing needs and the ways in which these can be expressed and enacted Linkages with policy processes – in defining and implementing sectoral objectives. The effectiveness of interaction with international processes and instruments In addition to the formal description of the legal structure and process, the commitment of key stakeholders and social will in the form of an effective civil society, are required to ensure that various rules are put to use. A key issue for the review has therefore been the extent to which laws and regulations are effective and the processes which determine their impact. In a related study29 the review also examined the ways in which legal systems might be developed to meet current and future national aims and international obligations. Box 10: The role of governance In practice, regulatory frameworks can be the set of formal rules that govern social, political and economic behaviour in a state, or the instruments, tools and institutions used by the state to control social, political and economic behaviour. This assessment is largely concerned with the former, but it is important to note that the implementation and performance of the rule of law depends greatly on governance - the capacity of state institutions charged with this implementation (the judiciary, police force, enforcement officers etc). This shapes and regulates all manner of behaviours and institutions, and extends across the entire scope of this review. Those concerned with human and economic development have become increasingly interested in governance, addressing poverty alleviation by moving from growth to rights-based approaches. Governance failure includes deteriorating administrative efficiency, a rise in corruption and a breakdown in law and order. In such conditions, those with the least power in society are usually the most vulnerable. Bangladesh’s development partners were becoming increasingly aware that this could hinder many development outcomes, and sought to address it. More recently, attention has been directed to the political process, which some have argued is becoming more confrontational and less about democracy and consensus building, with increasing concern about groups acting outside the law. So, whilst it is essential that the role of laws and regulations are understood in relation to the fisheries sector, the impact that weak governance is also critical and will influence any attempts to reform the regulatory structure. Laws and management of fisheries and other related sectors have undergone major changes in the last 10-12 years. In general, the trend of these changes has been positive although their performance and impact is still not visible at the national level. This is not to suggest that the laws do not require further updating but to assert that the process has perhaps begun that needs immediate and adequate legal and policy recognition and of course further activism to ensure implementation. The changes in the regulatory framework have been made possible for a number of factors Overview of the current system An analysis of the existing framework reveals positive features but also identify a number of shortcomings and challenges. The positive features include: 29 Keumelangan, FAO 2002 42 A formal structure exists and can create and amend laws, develop and apply regulation for fishery-related objectives. A sizeable body of legal text pertains to fishery issues; Challenge and appeal systems and processes also exist, and it is in theory at least possible to open process to question. The negative features and shortcomings include: Legislative text is often vague and so the application of law is often discretionary The legal text is not well harmonized and considerable discrepancies exist The process for amending laws is long, complex and cumbersome, The legal system is unable to operate in tandem with the policy environment, further frustrating policy implementation (see later) Access to legal redress for the poor and vulnerable is difficult and costly Despite good legal training, there is a shortage of well trained and committed legal personnel, and considerable court backlogs Legal and regulatory frameworks are easily manipulated by the elite; independence of the legal system is not guaranteed The capacity for legal and regulatory frameworks to bolster social and economic environments has not been well developed Globalisation is forcing the pace of change of national legal frameworks; Bangladesh has to be able to actively engage with the process rather than reacting to it The existence of a just, well functioning legal and regulatory framework is a pre-requisite for the creation of an enabling environment and a collaborative effort should be launched to meet the challenges of modify the framework to meet the future requirements. Judicial pronouncements Since the management of fishery is regulated largely by administrative circulars and decisions, the judiciary in a number of cases came forward in clarifying management issues to remove anomaly and arbitration in the management practices and defining the rights of the lessee and lessor. This has often been in the form of judicial pronouncements which may have contributed to the Box 11: The Code of Conduct for Responsible Fisheries The objectives of the CCRF are to establish principles for responsible fishing practices, facilitate international cooperation in the protection of fisheries resources, promote the contribution of fish products to food security/quality and to promote responsible trade in fish products. The aim of the CCRF is to establish international standards of behaviour for responsible practices with a view to ensuring the effective conservation, management and development of living aquatic resources with the respect to the ecosystem and biodiversity. The CCRF recognises the national, economic, social, environmental and cultural importance of fisheries and the interests of all those concerned with the fishery sector. The CCRF takes into account the biological characteristics of the resources and their environment and the interests of consumers and other users. States signed up to the CCRF “should apply the precautionary approach widely to conservation, management and exploitation of living aquatic resources in order to protect them and preserve the aquatic environment [and] should ensure that the level of fishing permitted is commensurate with the state of fisheries resources”. development of legal notions, either by interpreting existing provisions and adding new dimension to the legal regime or addressing gaps that affect recognised rights of litigant parties. A large part of the fishery law was developed from such judicial pronouncement, including the definition of "fishery". The following issues have been addressed through these: declaration of title to protect leasehold right legality of authority to grant lease authority to cancel lease when possession was handed over legal force of government settlement rules maintainability of writ petition in contractual matters on fishery conflict of ownership between government agencies Box 12: Participation and review in law In Bangladesh, the law making process does not incorporate the concept of people's participation. This also applies to plans and programmes developed under specific law. Except for the NEMAP, the policy regime also follows the trend where people or stakeholders hardly have any scope for participation. Neither is there a mechanism to scrutinize laws before policies are made. The legal regime therefore needs to be updated to meet changing demands. Most of the innovative practices for fisheries management have no mention in legal documents. There is also growing demand for law making to be more inter-sectoral, to remove gaps and contradictions as currently exist, and encourage wider participation. The Parliamentary Standing Committees of various ministries can effectively facilitate such a process; if possible committees could also allow stakeholders participation and access to information. 43 boundary of fishery declaration of extension of lease on compensatory grounds The judicial pronouncement attached a broader interpretation to the constitutional right to life to include right to healthy and sound environment and pollution free water, air, and soil30. The right to livelihood was declared an integral part of the right to life and accorded judicial protection. In an action against implementation of the Flood Action Plan-20, the High Court Division directed the payment of compensation to affected people for all losses including right to water way and fishery31. The legal and associated with regulatory framework Human and social rights Environmental protection Public water bodies Impact on marginalised groups require specific attention. Human and social rights The Constitution describes it a fundamental principle of state policy to raise the level of nutrition and improve public health32. It also guarantees right to profession and right to life as fundamental. The FFYP gives express recognition to the social benefits of fishery and so does the National Fish Policy, 1998. However, the laws on fishery in public water bodies do not accord protection to the traditional rights of fishing. In general, the status and progress of laws on inland fisheries do not reflect its importance in national diet, employment and economic values. Absence of such protection and the unclear legal position of the fishery and fishermen has on many occasions defeated justice and allowed undue interference with the ecosystem of fishery to the detriment of the interests of the fishermen Environmental protection The State’s commitment towards protecting its environment and natural resources is yet to be expressed in the Constitution of Bangladesh, unlike neighbouring countries. The lack of constitutional commitment for protection of wetlands and rivers, and emphasis on agriculture and rights of the peasant have been reflected in the legal and policy regime, particularly in decisions for developing the agriculture and water sector. However, the obligation of the State under international environmental law towards the protection of ecology, environment and biological resources has fostered changes in the domestic legal regime. Obligations under the Convention for Biological Diversity (CBD) has prompted the GoB to draft a Biodiversity Protection Bill while under the Ramsar Convention, specific action plans are being prepared for the management of Tanguar Haor and the wetlands in the Sundarbans. The pollution oriented environmental law33 was attempted to be more conservation oriented by the enactment of the Environment Conservation Act (ECA) in 1995, with quality standards for various components of environment and three wetland areas defined as ecologically critical and requiring special management34. Certain factors also required attention to arrest further degradation of fishery ecosystems. The continuous deterioration of water quality of all major rivers forced the legal regime to incorporate provision against industrial pollution. Box 13: HACCP regulation and its impacts The Hazard Analysis Critical Control Point (HACCP) standard is a seven-point programme which seeks to eliminate microbiological hazards at various points in the food processing chain. Adopted by the EU, Canada and the US and with a similar set of standards in Japan, the programme is a powerful weapon in the pursuit of improved international hygiene levels In mid-1997 the European Commission banned the imports of seafood into the EU from Bangladesh under HACCP standards. The ban was lifted for a number of small companies in 1998 yet even so exports during that year dropped by 64%. In the period 1999-2000 some 45–50 export plants (out of the 122 registered) become HACCP registered and EU inspectors have lifted the ban on product from Bangladesh. The costs of upgrading plants and training staff to monitor standards is considerable and falls to the exporting country who has to comply to maintain markets. The Environmental Impact Assessment regime has been recently introduced but still lacks adequate byelaws and guidelines for sector specific projects. Punishments for environmental offences have also been increased recently but the institutional capacity to require compliance is yet to develop. The failure of the Factories Act, 1965 in checking industrial pollution has not 33 30 48 DLR (1996) page 439 31 *50 DLR (1998) page 84 32 Article 18 (1)) of the Constitution of Bangladesh Environment Pollution Control Ordinance, 1977 The three areas of wetland include the Hakaluki Haor (18383 ha), Tanguar Haor (9727 ha) and Marzat Oxbow Lake (200 ha). 34 44 been examined nor has any polluting industry been penalised for inadequate waste disposal as required under the Act. Nor have state owned industries set any good precedents in pollution mitigation. The shrinkage of fisheries due to extensive flood control measures has already destroyed important spawning grounds. The newly enacted law of 200035 aims to protect open spaces including wetlands of all divisional headquarter, district and municipalities while the Environment Conservation Rules, 1997 makes it obligatory for all water control and other development projects to have strict EIA. Public water bodies The legal regime on public fisheries does not detail procedures to regulate their physical control or actual management. While protection and conservation of fish resources forms part of the responsibility of the MoFL, their actual management and control is enjoyed by the Ministry of Land (MoL), whose decisions are not based on principles or procedural guidelines, and rarely involve stakeholders. Over recent years, there have been significant changes in management policies on fisheries adopted by the MoL. Most are reactive, focused on short-term revenue generation, and not the outcome of future vision. They are, therefore, restrictive in nature and often do not suggest affirmative measures to be taken to promote development and conservation. Some of the changes run contrary to the interests of the private sector and the powerful elite who continue to defy the spirit behind such changes in the absence of a strong, coordinated monitoring and implementation mechanism. The ad hoc management system of fisheries has also affected the resource base. Policies set forth management objectives, while legal instruments prescribe management procedures. These are so largely regulated by the ad hoc decisions of the MoL that it can undermine legal commitments for protection and conservation of the ecosystem and its resources. The absence of long term planning has been largely responsible for the failure to introduce sustainable fisheries management. 35 Open Space (Protection) Act, 2000 (*Act No. XXXVI of 2000) Impacts on marginalised groups Marginal and poor communities have been affected by legislative changes (or failures to change legislation) in a number of ways. Where rights and access have been created, the scope for asserting these against vested groups has not always been facilitated or indeed materialised, as intended beneficiaries are often unaware of such changes and do not know or have the means to address the issues. Protecting the rights of the poor, vulnerable and marginalised has never been a top priority of the regulatory regime in Bangladesh, in spite of statements about protecting the environment and supporting poor fishers. Where the global community presses for changes to legislation to protect ‘existence value of natural resources, the livelihoods of those dependent upon those resources are often overlooked, or adversely affected because no one had championed their rights when legislation was drawn up. Box 14: Impacts of conflict As paid ‘musclemen’ attached to political parties, mastaans are able to undermine the rule of law, remaining beyond danger of prosecution. The impact on the fisheries sector has been demonstrated in recent studies on conflict amongst fishers on the floodplains. This shows that the rising level of violence, lawlessness and corruption attached to fisheries enforcement is having a major impact on the sustainability of many fishing livelihoods. Similar issues of conflict are also reported to have been associated with shrimp culture – at least in early stages, where highly valuable land and water resources were acquired by elite outside the legal process. The use of community structures, often with NGO support, to strengthen the interests of more vulnerable groups is being developed, but these too can be subject to capture and control by local elite Another important factor is the role of legal frameworks and legislative process in dealing with natural resource conflicts. These conflicts have a profound impact on marginal and poor communities. Unchecked exploitation of resources spurred by situations where conflict has eroded previous respect for laws, customs and community restraint have lead to further decline of resources. The effect is often enhanced as the legal process is ineffective in most villages, which have no real power over how access to resources is regulated. As a result many are denied access to open water bodies by elite who illegally ‘capture’ these benefits. Official government intervention also affects access and ownership. Villages located near sluice gates typify the problems faced. Flood control structures often restrict access to traditional fishing grounds and affect fish stocks. Many 45 management conflicts have emerged, yet the agencies and committees established to mediate such conflicts are often co-opted by elite who manipulate decisions in their favour. Changes in national legislation which have altered access to water may force fishers to travel further to fish, exposing them to demands for protection money and to conflict with other fishing communities. Whilst there is provision in the law to protect fishers from violent behaviour and to manage conflicts (if only through prosecution rather than consensus building and mediation) fishers rarely seek help from legal agencies. Firstly, they perceive there to be a lack of will to enforce the law on the part of the police. Second, civil servants are reluctant to take proactive decisions for fear of demotion, whilst others only do so as a means to extract rent. Conclusions Some conclusions can be drawn: The laws, rules and regulations as they currently stand are adequate in most areas, but the enforcement structure is inadequate There is a total absence of regular law review and updating mechanism. By-law formulation is also isolated and slow The legal system is unable to keep pace with the policy environment The prevailing practice of regulation by memos and circulars from MoL is ineffective in meeting constitutional obligations and in promoting judicious resource use Restrictive laws and management systems may contradict with customary rights that will only widen the gap between the public, public agencies and public property The needs and welfare of the most disadvantaged in society are largely unmet Access to due process is difficult for the most vulnerable groups in society The importance of global processes and Bangladesh’s position in the global market cannot be ignored: at the moment it is ‘reactive’ to the global market’s demands for change – to survive it will have to become more proactive in its approach. 46 POLICY FRAMEWORK KEY POINTS: The sector policies are disconnected from macro-level goals and local level needs and constraints The policy process and wider stakeholder engagement is little developed and Policy implementation strategies and monitoring capabilities are weak or lacking PRIORITY AREAS: Develop the National Fisheries Policy within the cross-sectoral forum and in the context of the PRSP to address the wider development goals Create the implementation strategy and develop modalities for policy implementation and monitoring RECOMMENDATIONS: Policies and strategies pertaining to the sustainable use of renewable natural resources, poverty reduction and economic growth should be rationalized and enacted through appropriate action plans to be developed by the NRMC and FDEC Existing policies should be harmonized to ensure there are no overlaps or contradictions in relation to the Fishery sub-sector. Within this process an action plan for the NFP should be developed Ensure that policymaking, which has tended to be rather top-down originating from central government favouring the priorities and interests of influential elite, is more participatory and in line with the recommendations for decentralized government as outlined in the IPRSP document 47 POLICY FRAMEWORK In theory, policies are the result of a linear process whereby key issues within a given area of responsibility are identified, decisions are made with respect to appropriate policy, and this policy is then implemented. In reality, the policy process tends to be rather more broad-brush and iterative and often reflects a shorter-term response to the most pressing problems of a particular period of government. Political groups are obliged to put forward at least some populist policies in order to get elected and must then attempt to deliver at least some of the manifesto against which they will be judged. In this respect, there are major issues to reconcile between economic growth, natural resource management and social welfare. In addition, the increasing internationalisation of the economic and global policy environment requires that national objectives reflect these and can translate into locally workable strategies. Box 15: Poverty reduction strategies (IPRSP) The Government of Bangladesh is currently formulating a broad policy framework for national development in which the natural resource base, the sources and means of economic growth and the mechanisms for meeting defined social and human development objectives are clearly set out. The process has involved extensive consultation at all levels, representing a uniquely wide range of stakeholder perspectives. It attempts not only to explain, structure and prioritise the needs and options involved, but also to set out the processes by which objectives can be attained. As such it has the potential to act as a key resource and guiding process within which sectorally related policy can be placed in context, with appropriate linkages and drivers, and developed in suitable detail and focus to meet sectoral needs. The contribution of sectoral outcomes in meeting national development objectives can also be clearly set out. As it has currently developed, the (interim) PRSP recognises the fundamental aims of human and social development, the need to understand the processes of growth, empowerment, resource access and equity, and the importance of the agriculture sector more generally in rural economic growth and national wealth creation, It further emphasises the need for effective and crossconnecting sectoral policy, the need for such policy to emerge from stakeholder processes , and the importance of ensuring that policy is realistic and can follow through to implementation. The Fisheries Context In General Over the last 50 years, many globally applicable lessons have been learned about fisheries policies and their effect on development. Some of the promoted policies and their implementation have not resulted in the desirable and expected results. The following issues and experiences are relevant for guiding the future investment and interventions, particularly for the small-scale fisheries sector development. They include: Fisheries development policy has been dominated by expansionist, production and technology-led approaches which have failed to address the needs of smallscale fishers; Despite a large global investment in fisheries development programmes, many fishers live in poverty and fisheries resources are increasingly overexploited There is a lack of information and understanding of small-scale fisheries; government and policy-makers have remained remote and unaware of their problems While the above observations register some of the mainly negative effect of policies the following identify some of the challenges, which lay ahead: The existence of multiple goals complicates fisheries policy and management; management systems which have ignored the wealth-producing (rent) function of a fishery in pursuit of other goals (e.g. employment; poverty alleviation; conservation) have tended to perform badly Fisheries development and resource management need to be seen as complementary aspects of the same process; however, an unmanaged fishery is an inappropriate vehicle to manage economic growth and development The successful management and development of small-scale fisheries is difficult to achieve using Western scientific-based approaches; the use of technical assessment models and regulations based on well-defined institutions are difficult to apply in LDCs. Finally it should be noted that lessons learned have resulted in the formulation of more comprehensive and cohesive strategies which may require policy changes. These include: The problems of fisheries development and management are increasingly being viewed from a broader perspective; adopting a purely sectoral approach to fisheries analysis denies the fact that many households and communities integrate fishing into a diverse livelihood strategy based on different activities and 48 resources; crucially the issue of poverty in fisheries requires a multi-disciplinary and multi-sectoral approach New attitudes to fisheries management and development in LDCs are emerging; these include principally communitybased and co-management approaches as strategies to attempt to include all stakeholders in the management process Despite the neglect of small-scale fishers, many do thrive and there is increasing recognition of their role in livelihoods (socio-economic safety-net) and the economy The role of government has been increasingly scrutinised in the light of the poor performance of many fisheries development initiatives; the need for government to provide an enabling environment in LDCs for resource users to participate in management and development has been recognised environmental issues in general, and fisheries in particular: The Twenty Year Perspective Plan (1990 – 2010) which sets out policy on economic growth, poverty alleviation, employment generation and increased self-reliance The National Environmental Plan (1995) which focuses on achieving environmentally sound development and the sustainable use of all natural resources There is implicit acceptance in these two core policies of the (at least potential) compatibility of economic growth and environmental management. The Industrial Policy (1991) further illustrates this point. This private sector oriented statement emphasises that industrial development should go hand in hand with control of environmental pollution and maintaining ecological balance. Fisheries policy in Bangladesh Policy has been developed specifically for the sector, but should also be seen in the broader context described in natural resource and related policy areas (Box 16) Two GoB policies have had a major impact on Box 16: Natural resources policies Water sector policy has received major attention in Bangladesh, partly as a result of the serious floods of the early 1990s. The initial emphasis of these policies was on “hard” solutions – technical engineering answers. The Bangladesh Water and Flood Management Strategy (1995) recognises the need for a shift towards a combination of institutional and crosssectoral policies and strategies. Institutional change and strengthening and the facilitation of inter-sectoral co-ordination has become a feature of sector policy. The National Water Management Plan (1998) focuses on the equitable and participatory (decentralised) management of water resources, and includes provision for fisheries and wildlife. The policy commits GoB to minimalising disruption to aquatic environments and the resources these support and to maintenance of water bodies of value for fisheries production. In terms of its written policies Bangladesh has recognised the importance of economic development and its close association with environmental husbandry and optimum sustainable use of natural assets. Although the practice (e.g. in terms of environmental pollution) lags behind the policy, there appears to be growing awareness that policy to guide natural resources management is important both to support the livelihoods of the poor, and to meeting the country’s international environmental obligations. The Five Year Plans (FYPs) of GoB have guided sectoral policy processes. Each FYP sets a total target for fisheries production, and fisheries policy is, in principle, expected to deliver these targets. (Table 11). The Land Use Policy (2001) identifies issues of water body loss and degradation and emphasises the need to harmonise national agricultural and fisheries policies in order to avoid conflict and simultaneously increase agricultural and fisheries production. Table 11. National Fishery Plans Target FYP Year (lakh tonnes) 1st 1973-1978 10.20 2 year plan 8.08 1978-1980 rd 2 1980-1985 10.00 Tk 1,743M fisheries development budget 3rd 1985-1990 10.00 Tk 7,490 M fisheries 4th 1990-1995 development budget 5th 1997-2002 20.75 6th 2002-2007 24.05 The New Agricultural Extension Policy (1996) further emphasises increased agricultural production through balanced use of land and water resources, and embraces aquaculture production as part of this process. The FYPs were originally highly production oriented but the texts have evolved over time to include more references to social and economic development. The 6th FYP (in The Environment Policy (1992) emphasises the conservation and development of fisheries and the evaluation of any projects likely to impact on these resources. Achievement (lakh tonnes) 6.43 6.46 7.74 Tk 1,583M spent 8.47 (estd) Tk 300M spent 18.50 (estd) 49 draft) is markedly different in its focus on livelihoods and aims to improve the status of fishers and support their livelihoods through increased production. However, the Plan is strongly culture fisheries focused and does not provide a strategy to link improved livelihoods with the exigencies of sustainable resource management (e.g. control of access). This is reflected in the current National Fisheries Policy (1998), which seeks “socio-economic upliftment” of fishing households. The New Fisheries Management Policy Although there is some confusion about the impact and influence of the NFMP, it still operates in some jalmohals and has influenced the approach of donors and NGOs to issues of access rights and their reform. The NFMP was a major policy departure by the MoFL in 1986; an initiative to overcome problems of exploitation of resources. Its objectives were to divert maximum benefits to genuine fishers through harvesting, and to adopt conservation measures to ensure sustainability of resources. The approach was developed on the basis of the slogan – ‘Jal Jar Jala Tar’ (He who possess fishing net should have access to fishing in water Box 17: Dilemmas in the NFP For shrimp production the aim is to increase production – but this may be difficult without impinging on coastal areas protected by the Ministry for Environment and Forest. Further, the socio-economic and ecosystem impacts would need to be further addressed. There is a policy objective to expand production in the marine sector against recognition that some stocks may already be exploited at the maximum sustainable level. To implement policy there is a strong need to gain better knowledge of where there is scope for expansion, and where change can be made without threat to the livelihoods of dependent communities. The NFP recognises the need to carry out research and training in support of major objectives, but a human resource development strategy is not considered and there is no clear statement of the priorities and responsibilities for research (eg the roles of DoF vis a vis the BFRI). Inter-institutional coordination is a clear intention of the policy but the mechanisms and priorities are not spelled out. Contributing to poverty alleviation is a stated objective of the NFP. This is an important element in a sector where property rights regimes and the potential social and economic consequences of improved management (eg control of access) are highly significant to the poor. The Policy implies a relationship between increased production and poverty alleviation, and suggests the formation of cooperatives as part of this process. It does not, however, mention co-management or the participation of the poor in sustainable exploitation of resources. The strategy by which fisheries will contribute to poverty alleviation is not spelled out. bodies). Whereas policy before had focused chiefly on production and revenue, the NFMP placed the needs of “genuine fishermen” as central and aimed to move the development of national fisheries forwards by relieving exploitation of the poor. The NFMP acknowledged that ownership of Jalmohals by the MoL severely restricted the ability of the MoFL to ‘carry out its mandate to manage, protect and conserve the inland fisheries of the country’ and set out to protect fishers from influential middlemen and limit the number of fishers to protect stocks. The policy was to be implemented by i) identifying so-called “genuine fishers” and organising them into groups, ii) providing licenses for well-defined waters together with the gradual phasing out of the yearly lease system and iv) the provision of technical inputs to these groups. These inputs included integrated pest management and stocking – both of which met with limited success. The National Fisheries Policy, 1998 The NFP aims at developing and increasing production of fish resources and create selfemployment to improve the socio-economic condition of the fishermen. It commits to ensure the lease of unutilised khas ponds, dighis and other fisheries to the trained youth groups. The Policy emphasizes the nutritional value of fish in the improvement of public health and also attaches importance to maintaining ecological balance and biodiversity. It seeks to ban the import, distribution and sale of any alien species of fish or fry without prior approval of the Government. The Policy calls for precautionary measures to minimise adverse impacts of agriculture, industry, transportation, urbanisation, flood control and irrigation. It proposes transferring fish sanctuaries or parts thereof to the DoF and commits for measures to prevent industrial pollution and limit unrestricted use of harmful pesticides. The policy also has statements on use of prohibited methods of fishing and emphasises the proper application of law for protecting endangered fish species. In leasing out government khas water bodies, it seeks to ensure priority for the genuine fisher folk. It also considers the control of fish quality and marketing and export. Poverty alleviation is a stated objective of the NFP but related strategies are not discussed. The role of property rights regimes in poverty 50 Box 18: Performance of the NFMP The performance of the NFMP has been limited by local level power relations. The National Fishermen’s Association (NFA) was mandated to draw up a list of genuine fishers; this was then approved by a thana NFMP committee and subsequently the district committee. However, middlemen were known to have extracted ‘fees’ for putting fisher’s names on the district approved lists and fisher cooperatives that were set up to apply for licenses were co-opted by wealthy influential elites. It has been argued that the NFMP simply reflected unfair power relations already present in the fishery. Others have highlighted its positive impacts on poor fishers. A study of its performance suggested that i) NFMP eliminated exploitation by middlemen leaseholders, ii) License fees charged for fishing units were reasonably low, and iii) the fishermen obtained economic benefits. The current status of the NFMP is unclear given the revision of policy for leasing open water jalmohals In 1995, the GoB declared all rivers and open water bodies open access, thus technically rendering the NFMP licensing system defunct. However some NGOs are attempting to apply the NFMP’s principles, and the DoF has recently established new projects that build on NFMP activities and assume continuation In 1998, the Ministry of Land was reported to have placed some 31 Jalmohals under the NFMP and recently another 10. The DoF is supporting management and organising the fishing community of those Jalmohals under a GOB financed development project. and livelihoods has been widely discussed by national NGOs, donors and researchers but these are not taken up. However, the NFP refers to an assumed link between increased production and poverty alleviation. It suggests the formation of fisher co-operatives but does not propose how this might be achieved, or acknowledge the apparent limitations of the specially-designed fisher groups within NFMP and elsewhere. The NFP addresses all aspects of fisheries: inland and coastal policies (fish and shrimp culture); education, research and extension policies; organisational policies (credit etc); commercial policies (export, transportation, marketing, processing and quality control); management policies (inland - open and closed; marine). Those parts relating to the marine sector are comparatively detailed and predominantly concerned with increasing the quality of product. The implicit aim is to return Bangladesh to the global marketplace for marine products (particularly shrimp. Policy statements relating to inland fisheries predominantly concern production, culture and enhancement but both the inland and marine sub-sectors emphasise ecological balance and the maintenance of biodiversity. There appears to be lacking co-operation, coherence and co-ordination with other interested sectors and ministries within the NFP. The MoFL asserts that it will ‘control all aspects of the fisheries sector’ but makes no reference to linkage with the numerous agencies and ministries that currently manage aspects of fisheries. The policy states that coordination ‘will be established’ but the mechanism by which this might occur is not made explicit. The NFP addresses the development of the sector through activities and inputs such as the provision of credit and the establishment of a Fisheries Bank. It states that tax laws will be changed to boost fisheries production, but it is unclear which stakeholders would benefit and how this would be implemented. The NFP aims to increase exports through increased production of raw product. Given the lack of data on stocks, the need to maintain extraction at current MSY, the problems with enforcement of existing law (see Legal and Regulatory Frameworks) and the need to protect the coastal environment there are obvious limits to pursuing this objective. With increased production as its leitmotiv, the NFP states that it will implement the policies listed by bringing all closed water bodies into production, promoting aquaculture on open Box 19 An Action Plan for the NFP? This was to be addressed within the GoB/WB/DFID Fourth Fisheries Project; where it was recommended that the DoF establish a Fisheries Planning Team to prepare a draft strategic Action Plan by September 2002. The TOR of the Planning Team includes the following: Review and define the core functions of the DoF in the context of the National Fisheries Policy, current sector needs and the roles of other stakeholder institutions Identify priority areas where DoF must take the lead, and other areas which might be better addressed through partnership with other institutions and from this analysis prepare an outline mission statement for the DoF Design a time bound strategy for the development and implementation of a coherent plan to address the priority areas over a five year (detailed) and ten year (indicative) timescale by 30 November 2002 Develop an outline National Fisheries Development Plan, identify the necessary resources and capacities to deliver the plan and recommend a coherent and integrated institutional framework for implementation Identify current and future constraints to implementation of the plan and propose an integrated program for national and external support The core Planning Team was recommended to include members from other institutions (eg NGOs, WARPO and LGED), and to co-opt members from other key institutions (eg Environment/Forests, community based organizations and the private sectors). The suggested deadline was revised to September 2003. 51 Table 12: A strategic overview of fishery policy options Strengths Fisheries resources may be resilient; Resource biodiversity Rural producers are dynamic, innovative; Rural producers could manage fisheries; Indigenous skills adapt to new technologies; Rural producers can organise themselves; Government is amenable to international collaboration; Good level of scientific fisheries knowledge in some areas (aquaculture) Some capacity in fisheries management in government; Role of fisheries in economy (& livelihoods?) recognised by policy-makers; Opportunities Encourage greater recognition of good governance and economic management to enable fisheries development; Build appropriate policy-making capacity in GoB (new training); Build new narratives/ideas which foster effective fisheries management (sectoral); Build new narratives which focus on rural livelihoods (cross-sectoral); Facilitate process of fisheries development (inductive action research/development) through more NGO/donor/GoB projects; Encourage public-private sector initiatives; water bodies (again, without acknowledgement of local level issues and institutional sustainability), increasing hilsa production and redrafting Fish Acts to ensure implementation of policy. Weaknesses Poor understanding of policy process; Policies lack coverage; Limited policy formulation capacity; Policy narratives are inappropriate; Policy implementation is weak; Fishers lack access to resources; Fishers lack access to inputs; Fishers lack access to education/information; Fishers lack access to infrastructure; Fishers lack experience of constituency form; Rural economy is constrained; Institutions favour elites; Property rights not well-established; Regulatory framework is weak; GoB extensively involved in service provision; Threats Overexploitation of fisheries resources; Increasing human population; Environmental degradation; Policy incoherence Bureaucratic politics Political instability; Weak governance; Limited policy space; Weak economic management; Resistance to institutional change; Resistance to political change; that these factors have been recognised, has been variable. Finally, the NFP proposes the setting up of a National Fisheries Council to implement the policy, to encourage more coordination and recognises that new laws need to be formulated in this regard. As such, the implementation plan is weakened by its failure to prioritise activities in terms of capacity and needs. This study have suggested that over the last thirty years in Bangladesh: A large number of policies have been produced covering both national (overarching) and sectoral agendas, but there has been considerable overlap and lack of coherence between policies. Policymaking has tended to be rather topdown, originating from central government and favouring the priorities and interests of influential elite. In broad terms, the NFP reflects the character of the previous and current FYPs in stating ambitious goals but failing to develop plans for implementation. Although the Policy specifically identifies thirteen priority areas for action, twelve of these relate to increased production and export while only one relates to the ‘socio-economic condition’ of fishers. Current overview Table 12 provides a simplified SWOT analysis of the policy context for the fishery sector. Identifying where developments could be positive, where constraints and threats lie and where opportunities can be identified for the sector. Any policy approach would have to take these into account, and to identify ways to control threats and develop opportunities. To date, the national response, to the extent 52 INSTITUTIONS KEY POINTS The sector is institutionally linked to a wide range of players, from ministries to field level agencies, who require guidance and coordination to implement the broader goals of the fisheries sector There is a need to understand the incentives for institutions to cooperate and work more closely together There is a need for a comprehensive strategic review of DoF, BFRI and BFDC coupled with process, leading towards clear mission statements and ways forward There is a need to redefine mechanisms for donor support, to agree with GoB where institutional priority should be focused, and to direct support towards these priorities Working with Local Government leading to increased decentralisation is important but complex. Means to ensure that needs and views of the private sector and civil society are incorporated into sector planning and management need to be developed PRIORITY AREAS Improved mechanisms need to be installed to coordinate the management and planning of the broader natural resources and rural development sector and in particular of the fisheries sector. There is need to explore new ways of funding the sector according to redefined roles. These new mechanisms need to reflect the new institutional landscape. RECOMMENDATIONS The formation of two high level committees to coordinate the inter-institutional relationships, implementation and management of the Natural Resources (NRMC) and the Fisheries Sector (FDEC) Develop a clear strategy for the sector, redefining the roles of the key institutions to support its implementation 53 INSTITUTIONS institutional complexity remains. The fishery sector is characterised by complex institutional and governance issues, engaging a mix of formal and informal institutions, public, private and civil society sector agents, and involving a range of crosssectoral linkages and areas of responsibility. Formal responsibilities for the sector are vested in the Ministry of Fisheries and Livestock (MoFL) and are executed through the Department of Fisheries (DoF), though these agencies interact with many others. General institutional arrangements Institutional challenges are considerable. These include the changing public and private sector balance, the need to reconcile commercial, social development and resource management objectives, and need to express sector-based needs effectively within a governance system which has to face increasing cross sectoral demands in a more open and accountable democratic process. There is also growing pressure to focus and rationalise government institutions, to improve and decentralise service delivery, and to reduce and refocus posts. Specific functional issues for the sector range from monitoring and advising on the quality and output of the natural resource, interceding in the management of the complicated system of leases for water resources, regulating fishing effort, promoting and supporting aquaculture development, and monitoring quality of aquatic products. Expectations have also extended through to the sustainability, accountability and ownership of development projects, and an increasing involvement in social development issues related to the sector. Finally institutions are engaged in developing policy and planning its implementation. The potential for greater linkages between private and public organisations had been noted in the previous review of the fishery sector36. Recent analyses have also emphasised the need for greater coordination between the public sector Institutions mandated to support rural development and those involved in wider issues of water resource and environmental management. Over the past decade various linkages and reforms in public sector agencies have been introduced, but examples of successful implementation remain limited and 36 World Bank Fisheries Sector Review, Report No.8830BD, 1991 Though the DoF can be seen as a key element in the institutional environment (Box 20), many other institutions are directly or indirectly involved in, or impact upon, the fisheries sector, its resource base and associated livelihoods. These embrace public sector, private sector and civil society institutions. Figure 1 provides a simplified outline of key formal institutions; to these must be added the many informal processes and interactions, customary or newly emerging, which constitute the wider institutional environment. Land Planning Education Agriculture Local Govt Establishment Community Water DoF Fisheries Sector BFRI / BARC NGOs Banks BFDC Environment Private Sector Private Moneylender s Figure 1: Sectoral Institutional Linkages At the macro level many formal institutions have an impact on the sector, broadly grouped into those with an over-arching role (i.e. applying across sectors) such as the Ministries of Finance and Planning, and those with a more direct impact such as the Ministries of Lands and of Water Resources. Many other Ministries, such as Health, Social Welfare and Education also have relevance to fisheries communities and their livelihoods. Their role has not been examined in depth in here, except where there is a direct and specific link to the sector, as in the case of fisheries research and education. However, their involvement in broader sectoral-related objectives can be significant. Other Ministries, such as Home Affairs (police), Defence and Shipping contribute to a regulatory role but do not influence fisheries policy or planning. 54 Government below the central level remains relatively little decentralised and the cadres based at Divisional (5), District (64) and Upazila (456) levels report upwards through the formal government system rather than through locally elected local government bodies. The effectiveness of government and governance at these levels and the resultant service delivery to fisheries communities is of paramount importance. A study was Picture box: group of people in village meeting commissioned within the review 37 to investigate current relationships between local government and community, and to look at the potential offered by various options for change, notably those considered as current government policy. Many other government institutions control access rights to fisheries, or play other direct roles in fisheries development. The Ministry of Land and the Ministry of Youth and Sport between them control access rights to all jalmohals larger than 3 acres38, and local governments control smaller water bodies. The Ministry of Environment and Forests controls fisheries in the Sunderbans, and the Ministry of Water Resources is responsible for water-related aspects of haor development. The Bangladesh Fisheries Research Institute (BFRI), formerly part of the DoF has the formal mandate for sectoral research, while the Bangladesh Fisheries Development Corporation (BFDC), a parastatal, is intended to develop fishing and market infrastructure, and promote the effectiveness of the commercial and industrial sector. 37 Full reference to background review Management of selected jalmohals has recently been ceded for a 7 year period to the DoF, to develop community-based open-water fisheries management. 38 In recent years, international, national and local NGOs have also provided a major role in fisheries development. NGOs are involved in fisheries extension (aquaculture) and in the provision of micro-credit for fisheries communities. Through donor projects, they also have a role in efforts to establish community-based management of inland capture fisheries, and they are becoming active, through various NGO fora, in social empowerment of fishing communities. The private sector is also increasingly prominent in sectoral investment and development, though the level of interaction between the industry and government in sector planning has been limited. Government agencies are not well attuned to supporting private enterprise in the sector. For aquaculture in particular, and in the range of service and secondary functions that are increasingly features of the wider industry supply chain, private sector interests are increasingly important, and at least in economic terms are assuming a lead in development. Within the social development related processes, civil society agents, linked with decentralised and local government agencies are increasingly engaged in fishery sector activities, and incorporating these within broader livelihoods-based development strategies. This change in the balance of influence and responsibility and the widening of approach requires a similar repositioning of institutional balance. In resource management, major international agents such as IUCN and UNESCO, together with area-based initiatives such as the Sundarbans Action Plan, and the Integrated Coastal Zone Management programme, together with active local groups are becoming more influential in identifying issues and strategies, linking across formal and informal agencies, mobilising local communities, engaging in and promoting policy, and promoting good management. The Department of Fisheries The primary public institution engaged in the sector, the Department of Fisheries (DoF) had originated with a traditional resource assessment and management role, developing in the last decades to have strong focus on expanding production. The rise of aquaculture output in this era, stimulated at least in part by Departmental initiatives, and supported through a range of GoB and donor 55 investments, had done much to endorse this role and to shape future expectations. Box 20 The Department of Fisheries (DoF) The DoF management considers that it has an inadequate human resource base in terms of both numbers (at field level) and capacity (for example in fisheries monitoring and management). The revenue budget covers only staff salaries and operational requirements are dependent on projectised funding. The DoF has therefore very limited discretion in terms of financial and human resource management. Changing sectoral demands, and a changing environment for public sector agencies to operate are understood at a strategic level to require a significant change in the DoF. For example, the DoF has a mandate to contribute to poverty alleviation and the “uplift” of fisheries communities, but has no professional capacity to address social development issues. Should the Department be encouraged to change and develop socio-economic skills, or should it consolidate in the areas where it has competence and confidence, and provide inputs to other institutions with the skills to address broader approaches to livelihoods improvement? The publication of the National Fisheries Policy (NFP) in 1998 provided a platform from which the DoF could improve its national profile and strengthen the case for the revenue budget needed to support sustainable and targeted sector development. The NFP states that the Ministry of Fisheries and Livestock (MoFL) will control all development, conservation and other management aspects of fisheries resources. In practice, the current sector arrangements are complex and multiinstitutional. The DoF has only recently begun the process of strategic planning, but it is questionable whether the wider linkages are so far being accepted or taken into account. However, the DoF is challenged with an expanding population with greater resource demands, more technically, socially and managerially complex development needs, a burgeoning private sector and increasing vulnerability of aquatic resources, together with an increasing burden on limited staff resources. As a consequence it now requires a fundamental re-think of how it operates, and where its priorities should lie for the employment of its resources. Though the 1998 National Fisheries Policy (NFP) provided the base for change and improved positioning of sectoral issues within national investment decision-making, little progress has been made to date, and strategic objectives are yet to be expressed. The aim of this review is not to dissect the DoF, but to examine the role it currently plays, and to determine how best the broader needs of the sector might be met in a modern and efficient institutional context. Given this wide multi-institutional participation in control and development of the fisheries sector it is arguable that the NFP gives the DoF the institutional burden of responsibility for resource conservation and management but has not yet provided the capacity or mechanisms necessary to deliver these. Moreover it must also be proposed that the NFP had not fully recognised the context in which primarily output-defined objectives would have to operate in within the evolving governance environment of Bangladesh. The key question to consider is how best the Government of Bangladesh, together with private and civil society interests and donor partners, can collaborate in rationalising and improving the structure of the fisheries sector for the benefit of all stakeholders. Implicit in this is the recognition that whilst the DoF may be the most appropriate agency for technical support, it might not be the appropriate institutional platform from which to launch initiatives for poverty reduction in communities which depend to varying degrees on aquatic resources. Furthermore, its role as both a promoter and regulator of the sector creates conflicts of interest which are difficult to resolve. The other core sectoral agencies, the BFRI and BFDC have not distinguished themselves in their performance, nor shown any potential for progressive development, having been largely the products of external investment support in previous decades, rather than the result of focused sectoral demand. The current review does not seek to prescribe their futures. However, public sector investment planners should consider their relevance and cost-effective performance in an environment where more efficient systems for delivering their functions can be identified, including those in the private sector. However, within a wider institutional framework there will still be clear responsibility for technical issues, and the DoF has an evident relevance and capability, albeit in need of redefinition and modernising. In considering options for a redefined role it is unlikely that government will provide resources to permit expansion. In addition, whilst donor agencies will continue to focus on poverty reduction (embracing fisheries), this is likely to be through a more holistic, sector wide approach, where the lead will be taken by institutions which are less specialised and more people-focused. Direct external funding for the sector is also unlikely 56 to increase, and is more likely to be redirected within broader initiatives. Deep-rooted changes in the DoF cannot be expected to emerge from the urging of donors or the impatience of the private sector. Rather these should come about as through a process involving a wider cross-sectoral network, interaction with NGO and private sector interests, and desire for change within the organisation. In developing its role to meet changing sectoral needs, the DoF would have to take account of: The key institutional issues which constrain sustainable development and management of the fisheries sector The current and future roles of, and linkages with, the other major stakeholders involved in the sector, including local governments and communities An internal view of the DoF An initial DoF in-house staff consultation during the review identified a range of priorities: A shift in emphasis from producing to promotion and servicing of the sector More staff both for the field, and for strengthened headquarters functions The need for a clearly defined goal for the DoF, and a well defined plan for reaching it Possible increased responsibility for jalmohal management; the need for a management plan and the institutional capacity to take this on Generation, collation and dissemination of information for sector development; in particular the strengthening the resource assessment and monitoring capacity, and clarification of the BFRI’s role Increased and improved capacity and responsibility for development, promotion and regulation of product quality both for internal and external markets; to include field capacity, regulation of seed quality and a quarantine service Separation of the community support and community policing roles of the field staff, and increased capacity to monitor compliance and enforce the law; access to a magistrate’s court for fisheries issues Diversification of capacity, to include a small core of socio-economic skills; plus access to other skills (particularly legal skills) Appointment, or secondment of DoF staff to other institutions with fisheries management responsibilities; to form a fisheries network Core units for institution-wide coordination and management of training and extension Establishing and sustaining the DoF Monitoring and Evaluation system being developed under the 4th Fisheries Project Given that an increase in human resources is unlikely, even if refocused and strengthened, the DoF could not alone deal effectively with all of these responsibilities. This reemphasises the need to shift from a hands-on approach towards a more promotional role (eg planning, regulatory, advisory, oversight, co-ordination, catalytic). A basic issue of perception still has to be addressed, in that the DoF interprets the need for improvement (eg better quality control, policing, fish seed) in terms of direct response rather than in terms of supervision, guidance, and monitoring of processes delivered by other institutions (eg the private sector, communities, Union Parishad, national and local NGOs). Many understand the trends and the need for change in approach, but the strategic institutional implications of addressing key challenges with the same or reduced human resources, are not widely accepted. The DoF acknowledges that it is already difficult to fulfil many of its priority tasks, such as jalmohal management. The administration and management of all the jalmohals currently held under the Ministry of Land would be a massive extra task, unless considered as a promotional process, leaving direct management and administration to others (eg local government). Under these circumstances of increasing tasks and static human resources, the need for partnerships and the role of other institutions becomes crucial, be they GoB central department, private sector, NGO, community, or local government Mechanisms for coordination and cooperation Inter-agency cooperation is not only a field level issue. A range of platforms exists for coordination of institutions with responsibilities for aquatic resources. The National Committee for Shrimp and Fish Affairs (NCSFA) and the Nation Water Management Council (NWMC) are two powerful apex bodies led by the Prime Minister. Both have Executive Committees of senior ministry staff. 57 The NCSFA makes key decisions (eg on jalmohal leasing and shrimp fry collection) and is charged with oversight of policymaking and legislation. However, neither the Committees nor their executive wings appear to be a routine force for co-ordination of activities in aquatic resources (the NCSFA is mandated to meet twice a year, but in fact has met once a year since 1998). The implementing departments do not appear to have a suitable forum for interaction over their various independent activities. This is likely to result in overlap and inefficient use of resources, and certainly erodes the capacity of the DoF to maintain an oversight of national resource conservation and sector development. establishment of elected Upazila Parishads is still being debated, and the idea of a Zila Parishad seems to have been put to one side. The Union Parishad would thus seem to be the only realistic elected local government target for partnership with DoF. While the institutional mechanisms for participating in fisheries sector support exist, the UPs currently have little capacity for, and little or no role in, development planning. The support available to UPs from Upazila fisheries staff is also extremely limited. There are indications that GoB intends to build capacity at UP level, and there may be an opportunity for the donor community to support GoB policy in a holistic rural development context, which would bring benefits for fisheries livelihoods. Community based approaches The GoB has a ready-made basis for sector co-ordination in the NCSFA, if it were to establish a sub-committee at a more junior level (eg chaired according to meeting theme, by Directors from relevant departments). This sub-committee could meet more regularly and could address departmental activities and issues at a detailed level. Themes might include, for example, environment and fisheries, fisheries and water resource management, fisheries management, quality control and marketing. Non-governmental stakeholders would participate as appropriate. Such sub-committees are already used by LGED under the umbrella of the NWMC, but the context is specifically project related. Local Government There is a widespread shift towards decentralisation of government amongst developing countries. In the natural resources sectors this has tended to promote a shift in the role of central line agencies from hands-on activities to a supervisory, advisory and co-ordinating function (Mali offers an extreme case where the central fisheries department has only three professional staff). The central agency tends to retain responsibility for policy, legislation and coordination of sector initiatives, but the handson work of regulation and technical support to fisheries communities is in theory (and perhaps in practice), devolved to a local level. The technical staff involved answer (at least in law) to local government, not to their parent ministries. In Bangladesh there is currently little movement towards devolvement of authority to local governments despite it being the stated objective in many of its policies. The The potential and the issues of community based fisheries management have been earlier described. These approaches are being promoted in a range of natural resource contexts around the world. In Bangladesh this relies on the establishment of new community-based organizations (CBOs), usually through the services of NGOs. Some doubts have arisen over the sustainability of such mechanisms, partly on the basis of cultural considerations (organisational structures are highly location specific), and partly because the ability of such CBOs to survive without continuing support is as yet largely unproven. Whilst NGOs have a vital role in social aspects of rural community development (eg capacity building, social empowerment, support to women) it is arguable that sustainability of community endeavours in natural resource areas might be best served by the involvement of local government supported by central government staff (eg in terms of information provision, technical advice and general guidance). The most sustainable approach would probably involve wider co-management, rather than management by communities and NGOs alone. Furthermore, structures serving wider community aims, rather than those focused specifically on fisheries, are more likely to have longstanding support and engagement. More widely, community-based approaches are likely to become increasingly important in supporting coastal fisheries and their dependent communities, promoting smallscale fish culture, hatchery production, feed supply and local marketing initiatives, and in supporting sustainable shrimp production. 58 However, this implies a capacity of government at Union level and community level that is currently hard to find (see Box 18). It also requires close partnership between NGOs and government agencies, and between the GoB agencies themselves – something else which is not common. This may also become an area for partnership between the GoB and the donor community – in helping to reshape the relationship between NGOs and government agencies and in operationalising existing frameworks for interagency collaboration. However, it is widely acknowledged that in the context of community approaches in fisheries the DoF does not have the field capacity to execute its extension, regulatory and monitoring functions. To address this would require new institutional mechanisms or increased human resources. In any programme of support to local government, the effective, integrated, use of existing field capacity would be high on the agenda, linking with effective social institutions, as a step towards effective and sustainable community-based natural resource management. Private sector The role of the private sector, and the options for investment in support, also require consideration. At present the state is involved in a range of activities through fish farms/hatcheries and the BFDC, which had an instrumental role in developing some of the areas of commercial development now bring the public sector into inefficient competition with the private sector. Fully consistent with the GoB’s policy of reducing its involvement in SOEs (state-owned enterprises), there is a strong case to divest out of those areas where the private sector has a comparative advantage, and encourage government to invest in areas where support is genuinely needed. The primary focus would remain the strategic oversight (though not ownership, and not necessarily management) of national public goods - essentially the living aquatic resources. To this would be added so-called ‘normative’ functions - assessing the scope and quality of the resource and its management, and advising and monitoring on desired states or objectives for these. Further roles include strategic analyses of the sector (with other agents as appropriate), the provision of advice to apex policy makers, and to sectoral interests, and the representation of the sector in wider fora. A number of other areas are best served with public-private sector partnerships, such as product quality control for domestic and export markets. The private sector should be encouraged to take responsibility, and to develop the capacity for ensuring quality. The government role can then become more focused on monitoring and compliance rather than routine testing and certification. This would bring considerable human resource savings to the DoF, whilst providing a credible and appropriate competent authority. The government could also provide guidance to the industry in respect of the benefits to be derived from an ethical trade and environmentally friendly approach to production and post-harvest. Sectoral research and knowledge transfer Though many of the features of the fisheries sector are artisanal and technically simple, the interactions between resource base, social processes and economic output are complex and not well understood or described. The resource base is itself also very diverse and its quality and susceptibility to impact is poorly understood and described. Given both short-term impacts and the major climate change implications, these deficiencies in knowledge may be critical in accessing future options and in developing appropriate policy and strategy. New initiatives such as community-based management and integrated management of coastal areas also pose particular challenges. The development or application of new technologies and the improvement of existing approaches all require research or knowledge capacity. In market and economic terms, opportunities for maintaining and adding value, and understanding of structural and competitive forces, both domestically and internationally, are also little understood, but will have great bearing on future developments. Connecting all of these elements, information on legal, institutional and policy issues is poorly developed, and a learning environment for these very strategic issues is almost absent. To these must be added the challenges of communication and adoption of various initiatives, and in particular the access by poorer, more remotely located, socially constrained, and less educated people to knowledge which may widen their options and 59 reduce their vulnerability. While traditional indigenous knowledge can be recognised as a highly valuable resource, changing physical and social environments, the breakdown of many traditional structures of trust and exchange, and the ready acquisition and exploitation of better information by wealthier and more educated groups reduces its comparative effect, and unless enhanced by new learning may act to diminish opportunities. The Bangladesh Fisheries Research Institute (BFRI) is the formal public sector agency charged with identifying and addressing information needs of the sector. However, in spite of significant infrastructure and training investment in the last decade, its focus on specialist biological research in formalised trials, its primary capacity in fresh water fish biology, and the lack of multidisciplinary demand-based and objective-led approaches has limited its effectiveness in understanding or resolving the important needs of the sector. Within the public sector, the process of uptake of knowledge has been allocated to extension functions within the DoF, which have largely focused on aquaculture development, as for example recently expressed through the National Aquaculture Extension Strategy. This has been drafted with the aim of developing a wider network of extension agents, linked with the DoF, but is yet to be implemented. Though a number of activities have been promoted directly through GoB initiatives, donor-funded projects have been significant in developing and applying knowledge, particularly amongst poorer rural communities. With the DoF and others, a range of initiatives such as FTEP39 1 and 2, the NFEP40, MAEP41 and the World Bank/DFID Third and Fourth Fisheries Projects have been important in building capacity, though primarily in aquaculture. More widely, donor interactions with NGO linked projects such as the CARE GOLDA, Interfish, Go-Interfish, and CAGES projects SHABGE, and BADS have been instrumental in pioneering and developing participatory approaches to problem definition at community level and collaborative learning techniques in which knowledge is developed and applied in the local context. More recent developments such as PBAEP42 and MACH43 39 Fisheries Training and Extension Projects - DFID NW Fisheries Extension Project - DFID 41 Mymensingh Aquaculture Extension Project - Danida 42 Patuakhali Barguna Aquaculture Extension Project 40 are continuing this process, extending the trend of these earlier initiatives towards wider community level interactions. The building up of national ‘knowledge capacity’ in the sector, in the form of trained people capable of understanding, exploring and communicating key strategic development issues, has to date been poorly focused. Past international investment in post-graduate training, at MSc and PhD has achieved variable results, with a preponderance of capacity in specialised and technically sophisticated areas of fish biology, and consequently little capacity in social research, or more importantly the capability of integrating technical with social and policy issues. Universities – particularly BAU Mymensingh, Picture box: participatory farmers group Dhaka, Chittagong and Khulna have been a source of research and training capacity, but at least until recently, this was heavily traditional and focused on fishery biology, ecology, microbiology and parasitology, together with traditional processing technology and more technically sophisticated forms of aquaculture. Efforts are now under way under the DFID SUFER44 project, linked with the University Grants Commission, to engage these groups in more demand-led work involving a mix of social and technical research, working in partnership with communities, NGOs and the private sector. In recognition also of the importance of these groups in providing the human resources for the sector, a range of initiatives has been 43 Management of Aquatic Ecosystems through Community Husbandry 44 Support for University Fisheries Extension and Research 60 taken in developing and updating training content, and in opening out social development issues and approaches to students. More widely, agencies such as WorldFish45 are active in sectoral research, in partnership with the DoF, and increasingly with NGOs, while bilateral programmes such as those of DFID, and knowledge functions within development processes, are also increasingly dealing with practical demand-led issues. A key constraint, overcome in some cases by developing participatory processes and establishing sound methodologies for establishing transferable knowledge, is that of the uptake linkages and of defining impact. Resources for learning from recent projects are also extremely limited, and major areas of knowledge are simply unavailable for wider use. Communications in building a sound and knowledge-based approach to sectoral development are still widely recognised as a constraint. These will be essential in identifying and promoting the very real practical opportunities in the sector, and ensuring they engage with appropriate groups. Other options It was proposed above that the nature and role of DoF will have to change to meet new challenges. The option of direct donor support to the DoF should also remain to provide a means of strengthening the institution in areas dictated by the new “promotional” role. DoF is already moving, with DFID support, towards the establishment of strong units with an over-arching responsibility for coordinating human resource development and extension activities. This change is being supported using redeployed revenue budget posts. It is equally important that the role and capacity of the MoFL should be reviewed, since a change in DoF would automatically have implications for the capacity and functions of the parent Ministry The DoF is also in the process of producing a fisheries development plan to implement national fisheries policy. This process, which will embrace the roles of non-fisheries institutions, will require further support from the donor community once the priorities have emerged. The exact needs cannot be predicted, but as examples, emphasis on promotion, would undoubtedly require DoF to 45 Formerly ICLARM review its capacity in information collection, analysis and dissemination. Emphasis on carefully targeted support to the private sector might require a revised quality assurance function (eg a monitoring rather than laboratory focused hands-on approach) and a poverty alleviation mandate might necessitate an entirely new area of human resource capacity. The detail is uncertain, but a programmatic approach to institutional support should be possible on the back of a well-focused and time-bound fisheries development plan. The necessity for closer and more considered partnership between GoB agencies and NGOs working in the sector was raised earlier. In the design of the 4th Fisheries Project it was assumed that NGOs would be capable of dropping straight into community capacity building for fisheries management. This proved to be over-optimistic. Even the large national NGOs had difficulties fielding staff with the necessary skills, and small NGOs were not always able to deal with basic community capacity building needs such as book-keeping. NGO capacity building was therefore a necessary first step. Any programme of institutional strengthening for DoF and/or local government could usefully embrace contemporary (and ideally integrated) capacity building for a carefully targeted group of NGOs with clear commitment to fisheries-related community development. Generic Issues This report identifies a wide range of institutional issues, and some possible options for the future. The over-riding question remains of how much sectoral change can be achieved in the absence of enabling changes in the overall environment of government? Without improved motivation for individuals and an improved overall climate for institutional reform, can DoF be strengthened in any meaningful way? In the absence of clear GoB commitment to decentralization, would building local government capacity really improve service delivery to communities? Without incentives, will diverse government and non-government stakeholders work together to better coordinate the conservation and utilization of national resources? A further, very fundamental, question is whether it is appropriate or necessary to focus specifically on the fisheries sector at all, or should donor support be concentrated on 61 building the necessary institutional network for integrated rural livelihoods support? Allied to this is the question of coherence between key government policies, and between GoB policies and donor priorities. The National Fisheries Policy mentions poverty alleviation as an objective, and the more recent development of the Policy Reduction Strategy Paper has emphasized the importance of this objective to GoB. However, inland waters administration practices suggest some lack of coherence between poverty reduction and revenue raising objectives. The appropriateness of fisheries as an entry point for poverty reduction programmes in Bangladesh is discussed further in the economic theme paper. From an institutional viewpoint, this highlights the question of the kind of organisations and processes appropriate to fisheries management, conservation and development on the one hand, and to improvement of fisheries livelihoods on the other. Given that the degree of dependence on fisheries amongst the poor probably varies greatly from family to family, from place to place, from season to season and from year to year, it is inescapable that a range of capacity beyond any single institution will be required. This in turn implies the level of national co-ordination and cooperation assumed under the National Water Management Plan, but not yet realised. Inevitably, an institutional review ends by asking more questions than it answers. What is clear is that after many years of donormanaged development, the fisheries sector will not change unless the process is totally owned by, and driven by the various key stakeholders. RECOMMENDATIONS The Fishery Sector Review and Future Developments work conducted throughout 2002 has identified the national significance and future potential of the sector. It has also strongly emphasised the importance of establishing and implementing a co-ordinated cross-sectoral approach to its development, if future benefits are to realised and sustained. It recommends that the Government of Bangladesh should consider: 1. The setting up of a Natural Resource Management Council (NRMC) and a Fisheries Development Executive Committee (FDEC). The NRMC would have representatives from seven key Ministries and their Departments working with renewable natural resources: Ministry of Finance, Ministry of Fisheries and Livestock (Department of Fisheries), Ministry of Water Resources (BWDB and WARPO), Ministry of Local Government Rural Development and Cooperatives, Ministry of Land, Ministry of Agriculture (Department: DAE) and The Ministry of Environment and Forest (Department: Environment) and would be headed by the Minister of Finance. The FDEC would constitute three Ministries and their Departments: MoFL, MoWR and MoEF (Departments of Fisheries, Environment and BWDB) plus private sector and civil society. The NRMC would be an advisory body reporting to the Executive Committee for the National Economic Council (ECNEC) and Parliament, it would function as a practical and dynamic forum, meeting on a quarterly basis to co-ordinate and promote issues relevant to the development of the natural resources of the country of which fisheries is a major sector. Its executive role would cover three main areas: 1.1 Commercial fish production and foreign trade 1.2 Social issues relating to the use of the resource 1.3 Strategies for linking these with resource management and rural development Representatives from the full range of stakeholders using the aquatic resources in Bangladesh would be encouraged to interact closely with the NRMC whose modus operandi would involve active and practical consultation with these stakeholders. The NRMC ought to liaise with Donor agencies in relation to future priorities for development and investment within the sector. It would be important to establish close links between the Ministries represented, relating to resource use, and with the Ministry of Finance as the coordinator of investment priorities. It would review public and private sector investment strategies and needs for sectoral development; prioritise public sector capital and recurrent expenditure, and identify approaches to maintain and expand private sector and external 62 investment. The NRMC should make recommendations to the ECNEC regarding investment and Parliament regarding policy development and would manage the enactment of policies relevant to the sector. The NRMC must review access and management issues for fisheries, including the current policy regarding ‘free access’ to open water fisheries (inland and marine), which currently tends to act against the interests of fisherfolk depending on the resource for their livelihoods. Draw on case studies provided by a range of GoB projects as evidence for a need to modify GoB policy; consider the assignation of an exclusive artisanal fishery area – to include the area from the coast a number of nautical miles seawards. This would be combined with management plans for the use of the resource. The management plans would be produced by fishing communities in conjunction with partner NGOs and the DoF and approved by the FDEC. 2. Once constituted the Fisheries Development Executive Committee (FDEC) would create action plans resulting from the NRMC decisions and closely monitor enactment by the responsible institutions. It would promote full integration within the sector outlining and monitoring public and private service provision and investment needs. Key areas to be covered include: 2.1 Water resource management to meet linked national objectives 2.2 The development of viable and effective systems of culture and capture production meeting international standards 2.3 Food supply, local consumption and export, and related post harvest quality control and market issues and 2.4 Access to the resource by those that depend on it for their livelihoods. 2.5 Rationalization of the activities executed by the Bangladesh Fisheries Development Corporation (BFDC), the Bangladesh Fisheries Research Institute (BFRI) and the functions and activities carried out by public sector hatcheries, broodstock holding and GoB run training centres. 3. Adoption of an objective framework along the lines recommended in the roadmap (page 14) to describe the social, economic and resource objectives associated with the sector, and identify potential indicators of progress: 3.1 Economic: current and projected production under each fisheries subsector together with ‘upstream’ and ‘downstream’ multipliers, prices, margins and value added opportunities, linked to investment needs and trade data; contribution to GDP; 3.2 Social: consumption of aquatic production; nutritional needs, employment, poverty alleviation, use of Khas lands (Common Property Resources CPR), service requirements, skills, education (national curriculum modification to emphasise the importance of aquatic resources/wetland values), water use conflicts, enactment of national policies and corresponding strategies related to the sector (National Strategy for Economic Growth, Poverty Reduction and Social Development – PRSP, National Fisheries Policy, National Land Use Policy, National Rural Development Policy, National Water Management Plan, Environment Policy and Implementation Plan, National Women Development Policy, National Agricultural Policy) and other social charters promoted by the GoB; 3.3 Resource: an expanded and more effective valuation of fisheries and aquatic ecosystem services including an expansion of wetland resource assessment models produced on a project basis (USAID MARCH, Danida GNAEP, DFID CBFM2) with the objective of creating a National Wetland Resource Assessment Database and to promote a wider awareness of this within national policy and development planning. 4. Redefine the role of the Department of Fisheries (DoF) to include cooperation with a wider network of institutions coupled with a more focused and specialised role including: 4.1 The DoF responsibilities under the FDEC with fishery management and aquaculture planning; including production/landing/marketing statistics by species, weight and 63 value; 4.2 Enacting of sectoral initiatives such as the recently agreed ‘Shrimp Option Papers’ (DoF/DFID 2002); 4.3 Promotion of a diversified strategy embracing pro-poor community based fisheries management and aquaculture activities, together with better quality export output and wider recognition of positive national attributes; 4.4 Development of policy approaches for rationalisation and reform, promotion of research links; development of guidelines for sectoral development areas such as large scale intensified fish culture; 4.5 Identification and promotion of specialised services – broodstock management, seed supply, aquatic health management, EIA, and knowledge transfer using appropriate and efficient delivery systems; monitor these where required; 4.6 Coordination of Reference Laboratory work for private sector quality control systems to improve awareness of food health issues - pesticide residues, presence of biotoxins, histamines due to fish spoilage during transport/storage; and 4.7 Promotion of the longer term rationalisation of legal frameworks with key priorities of avoiding disadvantage to poorer groups; operationalise international accords such as the Codes of Conduct for Responsible Fisheries/Aquaculture/Mangrove use. 5. Promote an effective data system and integrated resource planning/social development and policy development approach for the sector. The Centre for Environmental and Geographical Information Services (CEGIS) will continue to develop Geographical Information Systems (GIS) to help integrate fisheries and aquaculture development in relation to land use and the Coastal Development Strategy being developed by the GoB/DFID/Royal Netherlands Embassy Integrated Coastal Zone Management project under WARPO. In addition: sustainable fisheries and aquaculture and 5.2 Use such examples to reinforce political will and commitment to promote strong and consistent national data and information collection, as well as analyses. 6. The MoFL should adopt the Human Resource Development/Management Strategy developed for and by the DoF (Fisheries Training and Extension Project II with DFID co funding); The Aquaculture Extension Strategy developed by the DoF in 2002 (currently being updated) should be enacted as a means of promoting technology transfer to the wide range of stakeholders operating integrated aquaculture operations in Bangladesh. 7. Strengthen links between human resources dedicated to aquaculture and fisheries policy-making, planning and management and those dedicated to data and information collection. In relation to the FDEC and its links to the Ministries, ensure that the data/information needs of the policy-makers, planners and managers are met and that the information gathered is readily understandable and well defined. The donors involved in the sector should provide the GoB Departments associated with the FDEC with specialist training in effective communication of data and information analyses to promote understanding of their applications for aquaculture, fisheries management, policy-making, planning and management. This would also include: 7.1 Environmental Impact Assessment (EIA) evaluation capability; 7.2 Aquaculture planning in relation to the National Land Use Policy and Coastal Development Strategy (under preparation); and 7.3 Fishery Management Plan preparation and evaluation. 5.1 Promote awareness and examples of effective and efficient use of data/information for enhanced development and management of 64 Appendix-1: GoB Policy documents of relevance to the Fisheries Sub-sector Environment Policy and Implementation Plan (MoEF 1992); Livestock Development Policy (MoFL 1992); National Tourism Policy (MoCA&T 1992); National Forestry Policy (MoEF 1994); National Energy Policy (MoEP&MR 1996); New Agricultural Extension Policy (MoA1996) National Women Development Policy (1997) National Fisheries Policy (MoFL 1998); National Policy for Safe Water Supply and Sanitation (MoLGRD&C 1998); National Agricultural Policy (MoA 1999); Industrial Policy (MoI 1999); National Water Policy (MoWR 1999a); National Shipping Policy (MoS 2000); National Rural Development Policy (MoLGRD&C 2001); and National Land Use Policy (MoL 2001). The National Strategy for Economic Growth, Poverty Reduction and Social Development (Draft) 65