Linkages between Fisheries, Poverty and Growth: Bangladesh Case Study

APPENDIX E

Bangladesh Case Study

LINKAGE BETWEEN FISHERIES,
POVERTY AND GROWTH:
BANGLADESH CASE STUDY

Source: Internet

A Report Prepared for the Programme
of Advisory and Support Services and DFID
PASS Award of Contract: AG0213H

APRIL 2005
Final Version

STUDY TEAM

Dr. Md Ferdous Alam

11- D Green Austral Apt.
2 Outer Circular Road
Maghbazar, Dhaka – 1217
Bangladesh

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SUMMARY

The document

This is a Bangladesh case study investigating into the linkage between fisheries,
poverty and growth. It is prepared for IDDRA and is expected to serve as
background material for DFID’s initiative to increase the contribution of fisheries to
reducing poverty. It has examined current status and trend of the fishery system to
assist in developing an understanding of the key role fisheries has played in the past,
continues to play today and is likely to play in the future.

The method

This study has made use of the different published as well as unpublished literatures
namely: research reports, survey and consultancy reports; journal articles,
government documents and policy papers, economic surveys made by govt.
departments, reports on fisheries of the research institutes and consulting firms,
conference papers, documents of the World Bank, Asian Development Bank, and the
IMF. Two sector reviews namely, 1991 Fisheries Sector Review of the World Bank,
and 2002 Fisheries Sector Review and Future Development Study jointly conducted
by DFID, DANIDA, FAO and USAID had been of tremendous use. Information and
data published by the Bangladesh Bureau of Statistics and various Ministries such as
Ministry of Finance and Ministry of Planning were extensively used. Resources and
catch statistics of the Department of Fisheries were the basis of trend and growth
analysis. In addition, personal experience of the author and peer consultations helped
add many dimensions to the case study.

Background

Bangladesh appeared on the world map as an independent and sovereign state on 16
December 1971. The total area of the country is 147,570 square kilometer (56,977
sq. miles). Agriculture is the main occupation of the people employing 68.5% of the
labour force. It contributes around 23% to the GDP. The estimated population of
2004 is about 135.2 million. The population density is 916 per square kilometer in
2004. The literacy rate in 2002 was estimated to be 62.66%. According to the latest
census, about 77% of the total population lives in the rural areas and 23% lives in
major cities. The current GDP per capita and GNI per capita are US$ 421 and US$
444 respectively.

Service sector dominates the GDP of Bangladesh centering on 49% during the last 6-
7 years.

The contributions of agricultural and industrial sectors to GDP were 22.83% and
27.24% in 2002-03. The current shares of crop, fisheries, forestry and livestock
sectors to agricultural GDP are 56.95%, 22.69%, 8.54% and 11.82% in 2003-04. The
overall unemployment rate was estimated at 3.7% in LFS 1999. Unemployment rate
in the urban areas is higher as compared to that of the rural areas. The trade balance
has always been deficit during the last decade or so. Bangladesh is ranked 138th in
the Human Development Report 2004, with a recent most HDI value of 0.509.

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Poverty Situation

Poverty is measured in Bangladesh using two approaches; of which the first method
is based on Direct Caloric Intake (DCI). A household with a per capita caloric intake
of less than 1805 k.cal per day is considered “hard core poor”, while a household
with less than 2,122 k.cal per day per capita is considered as “absolute poor”. The
second method is the cost-of- basic needs (CBN) method. According to the latest
HIES 2000 report, 44.3 percent of the total population (55.9 million) was in absolute
poverty level on a DCI basis including 20.0% hard core poor. Based on the CBN
method, percentages of population under absolute and hardcore poverty in 2000 were
33.7% and 49.8% respectively. Interpreting in terms of CBN method, one out of
every two citizens is absolutely poor; and two out of three of the poor are hardcore
poor. The incidence of absolute poverty at national level has decreased to 33.7% in
2000 from that of 42.7% in 1991-92, according to the lower line of poverty. The
same trend also holds for the upper poverty line, which decreased to 49.8% in 2000
from 58.8 in 1991-92.

The incidence of poverty is the highest for households with agriculture, forestry and
fisheries as the main occupation. Income gap between the poorest of the poor
(bottom 5%) and richest of the rich (top 5%) is widening. During the last two
decades, the National Gini Coefficient shows increasing trend (from o.36 to 0.42).
The inequality is even more in the urban area.

Major factors behind poverty in Bangladesh were identified to be the gender of the
household head, the literacy level of the household head, skill level of the household
head, the religion of the household, the size and location of the household (i.e. rural
or urban), whether the household has electricity connection, whether the household is
the recipient of female stipend, land ownership and income from assets owned were
the asset and income variables.

The vision of Bangladesh’s poverty reduction strategy is to substantially reduce
poverty within next generation. For this, poverty reduction has been made the
overarching development goal and Bangladesh’s commitment is to achieve the
MDGs. Through adopting a comprehensive approach, the strategy visualizes that, by
the year 2015, Bangladesh would achieve: (i) reduce the number of people living
below the poverty line by 50%; (ii) attain universal primary education for all girls
and boys of primary school age; (iii) eliminate gender disparity in primary and
secondary education; (iv) reduce infant and under five mortality rates by 65%, and
eliminate gender disparity in child mortality; (v) reduce proportion of malnourished
children under five by 50% and eliminate gender disparity in child malnutrition; (vi)
reduce maternal mortality rate by 75%; and (vii) ensure availability of reproductive
health services to all women.

Economic growth

During the last 32 years (1972/73-2003/04) in the history of economic growth in
Bangladesh, three successive time phases of policy changes can be clearly identified.
Phase one starts from 1972/73 and goes up to 1977/78. These six years of post
independence period can be identified as the phase of intensive intervention. Phase
two goes from 1978/79 to 1989/90. Three development plans, namely the Two Year

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Plan (1978/79-1979/80), the Second Five Year Plan (1980/81-1984/85) and the Third
Five Year Plan (1985/86-1989/90) were implemented during this period. These 12
years can be identified as the initial phase of liberalization. Phase three starts from
1990/91 and goes up to 2003/04. During this phase the Fourth Five Year Plan
(1990/91-1994/95) and the Fifth Five Year Plan (1997/98-2001/02) were
implemented. These 15 years can be identified as a period of parliamentary
democracy and a period of economic reform.

The fisheries sector accounts for 5.15% of Bangladesh’s GDP in 2003-04. The GDP
growth rates fluctuated in the eighties and first half of the nineties. It was the second
half of the nineties and first 4 years of millennium which mark an average of more
than 5 percent per annum. The overall growth rate of agriculture sector in the
beginning of millennium year was very good, but it slowed down thereafter. Crops
and vegetables showed declining trend while livestock continued to increase.
Forestry sub-sector does not show any improvement keeping within roughly 4% per
annum. Growth of fisheries sub sector was very impressive in the 1998-99 and 1999-
00 ranging between 9 and 10 percent. The sub-sector thereafter had a negative
growth in 2000-01, mainly due to the September tragedy in 2001. Fisheries sector
started recovering again thereafter and showing increasing trend of growth.

Country’s fisheries export comprises frozen shrimp, frozen fish, dry fish, salted and
dehydrated fish, turtle/tortoise, shark fin, fish maws and frog leg (exported till 1991-
92). Frozen shrimp and frozen fish are the main fisheries exportable items accounting
for 79% and 19% respectively of the total quantity exported. Other items represent
only 2% of the total fisheries quantities. This is 2nd important foreign exchange
earner after ready made garments.

During last two decades aquaculture contributed significantly to the fisheries sector.
BFRI has played a very big role in this direction by developing 24 different fish
culture technologies. The most important technology accepted widely for fish culture
is carp polyculture, Pangas monoculture, shrimp and giant freshwater prawn culture
and Genetically Improved Farmed Tiapia (GIFT) culture. Most of these are
practiced in ponds. Over the last two decades productivity of ponds, baors and
shrimp farms increased by 309%, 443% and 246% respectively. Development and
growth of aquaculture is attributed to a variety of factors. Use of supplementary feed,
wider supply of fingerlings and aquaculture extension effort of the DoF, BFRI, BAU,
NGOs, projects of WorldFish. Center and MAEP of DANIDA were notable. Number
of hatcheries and their capacities of producing hatchlings increased markedly during
the last decades.

Fisheries Development and Management

Fishery resources in Bangladesh are mainly owned and managed by the public
sector. Formal responsibilities for the sector are vested in the Ministry of Fisheries
and Livestock (MoFL) and are executed through the Department of Fisheries (DoF).
National fisheries management, development, extension, training, conservation,
quality control, law enforcement, policy advice, and information collection are the
responsibilities of the DoF. Bangladesh Fisheries Development Corporation (BFDC)
is another related autonomous organization responsible for national development of
marine fisheries, management of Kaptai Lake, and marketing and processing of fish.

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Bangladesh Fisheries Research Institute (BFRI) is a vital organization in fisheries
having responsibility of national fisheries research on riverine fisheries, marine
fisheries and aquaculture.

Bangladesh fisheries are broadly classified into two categories, namely, (i) inland
freshwater fisheries and (ii) Marine fisheries. Inland freshwater fisheries comprise
Openwater capture fisheries and closed water culture fisheries. The country has a
total fish production of 2.102 million tons during the 2003-04 comprising 34.83%
from inland open waters (capture), 43.52% from inland closed waters (culture), and
21.66% from marine waters. The value of fish produced in 2003-04 is to the tune of
TK. 126,122 million to TK. 147,143 million. There are about a total of 795 species
of fish and shrimp available in Bangladesh waters comprising 284 freshwater fish
species (including freshwater prawn) and 511 marine species.

Full time equivalent of 5.2 million people or 9% of the labour force were involved in
fisheries. Total value additions was estimated at Tk. 93,688 million comprising Tk
26,937 million (29%) from inland capture fisheries, Tk. 28,577 million (30%) from
marine fisheries sub-sector, and Tk. 38,174 (41%) from inland and coastal
aquaculture. The post harvest activities also generate a value added of Tk.38,356
million. Export quantity has increased from 23,048 metric ton in 1985-86 to 54,141
metric tons in 2003-04 while its value has increased from Taka 356.25 million to
Taka 2363.47 million. Shrimp accounts for 79% of fish and fisheries product export
in 2003-04.

To increase fish production important strategies and intervention were: i) stock
enhancement using carp fingerlings in lakes and floodplains, ii) alternative measures
to restore and conserve natural fish populations, and iii) community-based
approaches to management of inland fisheries. Fisheries is governed by four sets of
laws and regulations. There is adequate number of regulations, laws and rules to
protect and conserve the fisheries in Bangladesh. It is believed that no new laws or
regulations are needed until the existing laws are effectively enforced.

Fisheries statistics produced by the DoF has a number of problems. Production data
appears to be upwards biased. Area statistics are very old and productivities so
calculated are not free from flaws. Source to source variations exist which leads to
problem for the users. Consumption statistics vary widely across sources.
Information must pass through the executives. A lot of things are considered before
releasing information. Moreover, capacity limitation of the departments constrain the
generation of good data. All these limitations raise question about the reliability of
generated data.

Policy Making

Fisheries were not looked upon as an important source of revenue by the indigenous
rulers and it was ranked fourth after agricultural land, forestry and mineral resources.
It was customary to allow open access to all the floodplains as long as no boundaries
or other means of establishing ownership. The closed fisheries were under nominal
control of the zamindars. These pre-colonial zamindars were primarily collectors of
revenue and did not have proprietary rights on all lands under their jurisdiction. The
Permanent Settlement Regulations was promulgated in 1793 which finally accepted

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the principle of revenue collection through appointed agents. The British rulers got
dismayed at the fixed system of rent when the need for revenue generation had
increased manifold. The government of Bengal appointed a Land Revenue
Commission in 1938 under the chairmanship of Sir Francis Floud to examine all
relevant issues and make suitable recommendations. The Commission submitted its
report in 1940 and majority of the members recommended the abolition of the
zamindary system and assumption of all rent-receiving interests by the state.

The government of East Pakistan accepted the Floud Commission Report and
through the passage of Ease Bengal State Acquisition and Tenancy Act (EBSATA)
1950 abolished the zamindary system in Bangladesh. Under the provisions of the
Act, ownership and management of all Jalmahals were vested in the Government.
The MoL, through a high powered Board of revenue, was put in charge of
management of these newly acquired assets.

In the 1950s, the government did not have many sources of revenue to lay its hand
on. The clear mandate to the MoL, like the immediate past British rulers, was to
maximize revenue from this source.

With the independence of Bangladesh in 1971, the access problem to fisheries started
to assume new dimensions. With rising population and pervasive incidence of
poverty in the early years of independent Bangladesh, large number of rural people
flocked into inland fisheries for their livelihood. In 1974, govt. decided to restrict the
auction of Jalmahals to the registered fishermen’s cooperatives only during the first
round. To wards the end of 1970s, the undesirable effects of the dichotomy between
ownership of resource by one entity and responsibility of preservation and biological
management by another had become so obvious in the inland fisheries sub sectors
that the govt. had to take some remedial action. In 1980, the concern for conservation
of fish resources had convinced the highest political level to order a wholesale
transfer of all Jalmahals from the MoL to the MoFL to facilitate the process of
biological management of the fish resources. Within three years in 1983, government
again reversed its earlier order and transferred the Jalmahals back to the MoL. A
New Fisheries Management Policy (NFMP) was adopted in 1985. The policy aimed
at achieving the twin objectives of stopping exploitation of the fishers by ijarders
through new management practices and of ensuring proper conservation of the fish
resources. Since the NFMP was developed by people connected with fisheries and
not MoL, it contained huge improvements in certain areas compared to the previous
policies.

In 1991, there was a further change in the leasing procedure for the Jalmahals
retained by the MoL under its control. Public auctioning was replaced by a system of
sealed tenders restricted to fishermen’s cooperatives. In 1995, Government made an
abrupt decision to abolish the leasing of the open Jalmahals. The Prime Minister,
while inaugurating Fisheries Fortnight in 1995, made this sudden announcement,
thus technically rendering the NFMP licensing system defunct.

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ACRONYMS AND ABBREVIATIONS

ADB Asian Development Bank
ADP Annual Development Plan
AL Awami League (political party currently in opposition)
BBS Bangladesh Bureau of Statistics
BCAS Bangladesh Center for Advanced Studies
BELA Bangladesh Environment Lawyers Association
BIAM Bangladesh Institute of Administration and Management
BFDC Bangladesh Fisheries Development Corporation
BFRI Bangladesh Fisheries Research Institute
BIDS Bangladesh Institute of Development Studies
BKB Bangladesh Krishi Bank
BNP Bangladesh Nationalist Party (political party currently in government)
BRAC Bangladesh Rural Advancement Committee
BWDB Bangladesh Water Development Board
CBN Cost of Basic Needs
CBFM Community Based Fisheries Management
CIDA Canadian International Development Agency
CMR Child Mortality Rate
CNRS Center for Natural Resources Studies
CPI Consumer Price Index
CRED Center for Rural Environment Development
DANIDA Danish International Development Assistance
DCI Direct Calorie Intake
DFID Department for International Development
DFO District Fisheries Officer
DoF Department of Fisheries
DoMF Department of Marine Fisheries
EBSATA East Bengal State Acquisition and Tenancy Act
EEZ Exclusive Economic Zone
ESBN Estuarine Set Bag Net
FEI Food Energy Intake
FFP Fourth Fisheries Project
FAO Food and Agriculture Organizations
FCD Flood Control and Drainage
FCDI Flood Control Drainage and Irrigation
FSRFDS Fisheries Sector Review and Future Development Study
FY Financial Year
FRG Federal Republic of Germany
GDP Gross Domestic Product
GNI Gross national Income
GHARONI Grassroots Health and Rural Organisation for Nutrition Initiative
GEF Global Environment Faciity
GoB Government of Bangladesh
GPRB Government of the People’s Republic of Bangladesh
HDI Human Development Index
HES Household Expenditure Survey
HIES Household Income Expenditure Survey

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HP Horse Power
ICLARM International Center for Living Aquatic Resources Management
IDA International Development Agency
IFAD International Fund for Agricultural Development
I-PRSP Interim Poverty Reduction Strategy Paper
IMF International Monetary Fund
IMR Infant Mortality Rate
IUCN International Union of for Conservation of Nature
JMS Jatiyo Matshajibee Samitee
LFS Labour Force Survey
LGED Local Government Engineering Department
MAEP Mymensingh Aquaculture Extension Project
MDG Millennium Development Goals
MoA Ministry of Agriculture
MoF Ministry of Finance
MoP Ministry of Planning
MoL Ministry of Land
MoY Ministry of Youth
MACH Management of Aquatic Resources through Community Husbandry
MoFE Ministry of Forest and Environment
MSY Maximum Sustainable Yield
MoFL Ministry of Fisheries and Livestock
NFP National Fisheries Policy
NFMP New Fisheries Management Policy
NGO Non-government Organization
NSAPR National Strategy for Accelerated Poverty Reduction
OLP Ox-bow Lakes Project
PAPR Partnership Agreements on Poverty Reduction
PRSP Poverty Reduction Strategy Paper
SADP Second Aquaculture Development Project
SDC Society Development Committee
SHISUK Shikkah Sastho Unnayan Kendra
SUFO Senior Upazilla Fisheries Officer
TFP Third Fisheries Project
TFR Total Fertility Rate
UNDP United Nations Development Programme
USAID United States Agency for International Development
UNDP United Nations Development Programme
UFO Upazilla Fisheries Officer
U5MR Under 5 Mortaity Rate

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GLOSSARY OF TERMS

Zilla Sub-regional administrative unit (District)
Jatiya Sangsad National Assembly
Aman A paddy crop grown in monsoon
Aus A paddy crop grown in monsoon
Boro A paddy crop grown in dry season
Baor Ox-bow lake; a closed body of water isolated from river by a
change in its course
Beel Small lake, low lying depression, a permanent body of water
in a floodplain or a body of water created by rains or floods
that may or may not dry up in the dry season
Floodplain The adjacent wetland around the natural depression i.e, beel,
haor etc. which are largely being inundated by flood water
during monsoon
Fry Very young stage of fish formed from egg
Haor A shallow lake or large low-lying depression in a floodplain
that may be reduced to a series of beels during the dry season
Jalmahal Fishery (waterbody) leased out by the government for revenue
Jatka Juvenile hilsha
Zaminder A landlord with whom land have been settled in perpetuity by
the sovereign authority in lieu of fixed rent

Diwani Right to collect revenue
Jotdar A landed gentry
Ijardar Leaseholder
Mahajan Financier or money lenders
Taka Bangladesh currency (US$1=Taka 63approximately in April
2005)
Upazilla A level of administrative unit lower than district

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CONTENTS

SUMMARY...........................................................................................................................................................2
ACRONYMS AND ABBREVIATIONS ...............................................................................................................7
GLOSSARY OF TERMS .......................................................................................................................................9

I. BACKGROUND........................................................................................................................14
1.1 INTRODUCTION ...................................................................................................................14
1.2 NATURE OF GOVERNMENT .................................................................................................14
1.3 COUNTRY PROFILE .............................................................................................................14
1.4 NATIONAL POLICY PRIORITIES ...........................................................................................15
1.5 INDICATORS OF NATIONAL CHARACTERISTICS AND DEVELOPMENT STATUS .....................16
1.5.1 Population.....................................................................................................................16
1.5.2 Political.........................................................................................................................17
1.5.3 Social ............................................................................................................................18
1.6 POVERTY SITUATION ..........................................................................................................19
1.7 SECTORAL GDP TREND .....................................................................................................19
1.8 UNEMPLOYMENT ................................................................................................................20
1.9 BALANCE OF PAYMENT ......................................................................................................21
1.10 HUMAN DEVELOPMENT INDEX ...........................................................................................21
II. POVERTY SITUATION IN BANGLADESH........................................................................22
2.1 INTRODUCTION ...................................................................................................................22
2.2 POVERTY DIMENSIONS AND MEASUREMENT .......................................................................22
2.3 EXTENT OF POVERTY AND ITS TREND .................................................................................22
2.4 DIFFERENCES IN POVERTY ESTIMATES ................................................................................24
2.5 REGIONAL INCIDENCE OF POVERTY ....................................................................................24
2.6 INCIDENCE OF POVERTY BY MAIN OCCUPATION OF HOUSEHOLD HEAD ............................25
2.7 INCOME AND ITS INEQUALITIES AMONG THE HOUSEHOLDS .................................................25
2.8 PER CAPITA CALORIE INTAKES ..........................................................................................28
2.9 DETERMINANTS OF POVERTY..............................................................................................28
2.10 BANGLADESH’S POVERTY TARGETS AND SOCIAL DEVELOPMENT GOALS ..........................29
III. ECONOMIC GROWTH OF BANGLADESH ..................................................................31
3.1 INTRODUCTION ...................................................................................................................31
3.2 TIME PHASES OF ECONOMIC GROWTH OF BANGLADESH ....................................................31
3.3 AGGREGATE GROWTH STRUCTURE OF THE BANGLADESH ECONOMY ................................32
3.4 DISAGGREGATED GROWTH OF DIFFERENT SECTORS IN BANGLADESH ...............................33
3.5 CONTRIBUTION OF FISHERIES SECTOR IN THE ECONOMIC GROWTH OF BANGLADESH .......35
3.6 POTENTIAL FOR ACHIEVING MDGS IN BANGLADESH ........................................................36
IV. FISHERIES DEVELOPMENT AND MANAGEMENT IN BANGLADESH ................37
4.1 INTRODUCTION ...................................................................................................................37
4.2 FISHERIES INSTITUTIONS AND GOVERNANCE: ....................................................................37
4.3 FISHERIES RESOURCES AND FISH PRODUCTION ...................................................................37
4.3.1 Inland Openwater Capture Fisheries............................................................................38
4.3.2 Marine Fisheries ...........................................................................................................38
4.3.3 Inland Closed Water Fisheries (Aquaculture) ..............................................................39
4.3.4 Value of Produced Fish ................................................................................................39
4.4 FISH PRODUCTION TREND ..................................................................................................40
4.5 SPECIES ABUNDANCE AND COMPOSITION ..........................................................................41
4.6 CONTRIBUTION OF FISHERIES SECTOR: ...............................................................................42
4.6.1 Share in Gross Domestic Product.................................................................................42
4.6.2 Employment ..................................................................................................................43
4.6.3 Food security ................................................................................................................44
4.6.4 Value added of Fisheries...............................................................................................44
4.6.5 Fisheries Export............................................................................................................44
4.6.6 Women involvement in fisheries....................................................................................45

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4.7 WAGES ...............................................................................................................................46
4.8 FISHERIES INTERVENTIONS FOR FISH PRODUCTION .............................................................46
4.8.1 The stocking programme...............................................................................................47
4.8.2 The Second Aquaculture Development Project.............................................................48
4.8.3 Third Fisheries Project (TFP) ......................................................................................48
4.8.4 Aquaculture Development Project (ADP).....................................................................48
4.8.5 Community Based Fisheries Management Project (CBFM).........................................48
4.8.6 Fourth Fisheries Project (FFP) ....................................................................................49
4.9 FISHERIES LAWS AND REGULATIONS..................................................................................50
4.10 STUDIES ON RESOURCES RENT: ..........................................................................................50
4.11 RELIABILITY OF FISHERIES STATISTICS ..............................................................................51
V. POLICY MAKING ...................................................................................................................52
5.1 INTRODUCTION ...................................................................................................................52
5.2 FISHERIES MANAGEMENT AND POLICY PROCESSES ...........................................................52
5.2.1 Before partition of Bengal.............................................................................................52
5.2.2 Partition to Independence.............................................................................................53
5.2.3 Access issue after independence of Bangladesh ...........................................................54
5.2.4 Leasing policy in the early years ..................................................................................54
5.2.5 Policy Shifts between 1980 and 1984............................................................................54
5.2.6 Transfer of Jalmahals from MoL to MoFL ...................................................................55
5.2.7 New Fisheries Management Policy...............................................................................55
5.2.8 Further Changes in Leasing System .............................................................................55
5.2.9 Open Access of Open Waterbodies ...............................................................................56
5.3 MARINE FISHERIES MANAGEMENT EFFORT .......................................................................56
5.4 CONFLICT BETWEEN FISHERIES POLICY AND SUPPORT SERVICES ......................................56
5.5 THE BANGLADESH POVERTY REDUCTION STRATEGY ........................................................59
5.5.1 Concept of Pro-poor Growth Strategy for Poverty Reduction......................................60
5.5.2 Outlining the poverty reduction strategy ......................................................................60
5.5.3 The National Strategy for Accelerated Poverty Reduction (NSAPR) for fisheries........61
5.6 THE DIFFERENT STAKEHOLDERS AND THEIR ROLES IN FISHERIES......................................62

REFERENCES .....................................................................................................................................................65
APPENDIX-A ......................................................................................................................................................70
APPENDIX-B.......................................................................................................................................................74
APPENDIX-C.......................................................................................................................................................76

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LIST OF TABLES

TABLE 1.1 PER CAPITA GDP AND GNP OVER TIME ............................................................................................18

TABLE 2.1 INCIDENCE OF POVERTY (HEAD COUNT RATIO) BY DCI METHOD ...................................................23

TABLE 2.2 INCIDENCE OF POVERTY (HEAD COUNT RATIO) BY CBN METHOD ..................................................23

TABLE 2.3 POVERTY GAP AND SQUIRED POVERTY GAP OF CBN METHOD ........................................................24

TABLE 2.4 COMPARATIVE STATEMENT SHOWING HEAD COUNT INDEX BY DIFFERENT METHODS ........................24

TABLE 2.5 INCIDENCE OF POVERTY (HEAD COUNT RATIO) BY REGIONS ...........................................................25

TABLE 2.6 INCIDENCE OF POVERTY ACCORDING TO MAIN OCCUPATION OF HOUSEHOLD HEAD ........................25

TABLE 2.7 HOUSEHOLD INCOME, INCOME PER MEMBER AND EARNER ...............................................................26

TABLE 2.8 PERCENTAGE SHARE OF INCOME OF HOUSEHOLDS BY DECILE GROUP .............................................26

TABLE 2.9 PERCENTAGE SHARE OF INCOME OF HOUSEHOLD BY SOURCES OF INCOME ......................................27

TABLE 2.10 PER CAPITA DAILY CALORIE INTAKE BY FOOD ITEMS ......................................................................28

TABLE 3.1 STRUCTURAL CHANGE AND TREND OF GROWTH OF THE CONTRIBUTIONS OF LARGE .......................32
SECTORS TO GDP OF BANGLADESH (CONSTANT PRICE, BASE YEAR: 1995/96)

TABLE 4.1 AREA, CATCH AND PRODUCTIVITY BY SECTORS OF FISHERIES, 2003-04 ...........................................38

TABLE 4.2 VALUE OF FISH PRODUCED IN 2003-04 UNDER TWO PRICE SCENARIOS ..............................................40

TABLE 4.3 EXPONENTIAL GROWTH RATES OF FISH PRODUCTION FROM DIFFERENT FISHERIES............................41

TABLE 4.4 PERCENTAGE COMPOSITION OF DIFFERENT SPECIES OF INLAND AND MARINE FISHERIES ....................42

TABLE 4.5 EMPLOYMENT STATUS IN INLAND AND MARINE FISHERIES .................................................................43

TABLE 4.6 VALUE ADDED OF FISHERIES RESOURCES AT CURRENT PRICES ...........................................................44

TABLE 4.7 TREND OF EXPORT OF FISH AND FISH RELATED PRODUCT, BANGLADESH ............................................45

TABLE 4.8 WAGE RATE INDICES BY SECTORS (BASE 1969-70 = 100)..................................................................46

TABLE 5.1 RESOURCE ASSESSMENT ENDEAVOUR IN THE BAY OF BENGAL .........................................................57

TABLE 5.2 TARGETS AND ACHIEVEMENTS OF FISHERIES PRODUCTION AND FISHERIES BUDGET ........................58

TABLE 5.3 POLICY MATRIX FOR THE FISHERIES SECTOR AS OUTLINED IN THE PRSP..........................................64

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LIST OF FIGURES

Figure 1.1 Growth Rates of Population over Decades in Bangladesh……………………....…15

Figure 1.2 Map of Bangladesh……………………...………………………………………..16

Figure 1.3 Inequalities in Income over Years in Bangladesh……………..…...………….….17

Figure 1.4. Trend of Crop, Forestry, Livestock and Fishery Share to Agricultural GDP.......19

Figure 1.5 Trend in Unemployment Rate in Bangladesh……………………..…….………19

Figure 2.1 Inequality of Income over years in Bangladesh…………………………..……...26

Figure 3.1 Growth trends of different sub-sectors of Bangladeshi economy……….…..…...34

Figure 4.1 Trend of Fish Production in Bangladesh………………………..….………….....40

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1 BACKGROUND

1.1 Introduction

The territory constituting Bangladesh was under the Muslim rule for over five and a
half centuries, from 1201 to 1757 A.D. Subsequently, it was under the subjugation of
the British after the defeat of the last sovereign ruler, Nawab Sirajuddowla, at the
Battle Plassey on the fateful day of June 23, 1757. The British ruled over the entire
Indian sub-continent including this territory for nearly 190 years; from 1757 to 1947.
During that period Bangladesh was a part of the British Indian provinces of Bengal
and Assam. With the termination of the British rule in August, 1947 the sub-
continent was partitioned into India and Pakistan. Bangladesh was then a part of
Pakistan and was known as East Pakistan. It remained so about 24 years from August
14, 1947 to March 25, 1971. It appeared on the world map as an independent and
sovereign state on December 16, 1971 (BBS, 2004).

1.2 Nature of Government

A four-party alliance comprising of Bangladesh Nationalist Party (BNP), Jamat-E-
Islam, the Jatiya Party and Islami Oikkojot; have formed the government of
Bangladesh since June 2001. The major opposition party is the Awami League (AL).
Bangladesh is governed by a Parliamentary form of government. The Prime-Minister
is the chief executive of the country. S/he is selected by the president from the
majority party leader. S/he has a council of ministers who assist him/her in the
discharge of his/her duties. For the convenience of administration the country is
divided into six administrative divisions, each placed under a Divisional
Commissioner. Each division is further sub-divided into zillas (districts). After the
administrative re-organization carried out in 1984, the country has been divided into
64 zillas. The administration of each zilla is headed by a Deputy Commissioner, who
is assisted by other officials.

The highest judiciary in the country is the Supreme Court headed by the Chief
Justice. The constitution provides for a unicameral legislature, which is called Jatiya
Sangsad (National Assembly). It consists of 300 members directly elected by adult
franchise. The members of Jatiya Sangsad elect another 30 female members. Thus,
the total number of members of the Jatiya Sangsad is 330 (BBS, 2001a).

1.3 Country Profile

Bangladesh is a developing country located in the north eastern part of South Asia
between 200 34 and 260 38 north latitude and between 880 01 and 920 41 east
latitude. It is bounded by India in the north and west; by the Bay of Bengal in the
south, and finally by part of India and Myanmar in the eastern side. The total area of
the country is 147,570 square kilometer (56,977 sq. miles). The limits of territorial
waters of Bangladesh are12 nautical miles and the area of the high sea extending to
200 nautical miles measured from the base lines constitute the economic zone of the
country.

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A wide portion of the land is covered by large rivers such as the Padma, the Jamuna,
the Teesta, the Meghna, the Brahmaputra, and the Surma. There are also thousands
of tributaries with a total length of about 24,140 km. Those rivers are connected to
the Bay of Bengal. The total forest area is about 13.36% of the land area. The
climatic condition is of sub-tropical monsoon climate (BBS, 2001a).

Agriculture is the main occupation of the people employing 68.5% of the labour
force. It contributes around 23% to the GDP. Except for the hilly regions in the
north-east and the south-east, some areas of high lands in the north and north western
part; the country consists of low, flat and fertile land. Rice, wheat, sugarcane,
tobacco, oilseeds, pulses and potatoes are the principal crops. Cultivated areas per
farm and per capita area are 1.50 acres (0.60 ha) and 0.14 acres (0.05 ha)
respectively. Gross cropped area is 28,616 thousand acres (11,585 thousand ha),
which comprises 36.86% of aman rice, 14.5% of aus rice, 21.45% of boro rice;
4.56% of jute, 1.15% of sugarcane and 5.32% of wheat. Cropping intensity is 174%
and about half of the cultivated area is irrigated (BBS, 2005).

1.4 National Policy Priorities

Since independence, Bangladesh is guided generally by Five Year Plans (FYPs).
Every plan, five yearly or otherwise, of the government has aimed at reducing
widespread poverty. Achieving equitable economic growth for poverty alleviation is
generally accepted to be the overriding goal of the government’s developmental
efforts in Bangladesh (Mahmud, 2002).

With the constitutional obligation of developing and sustaining a society in which
the basic needs of all people are met and every person can prosper in freedom and
cherish the ideals and values of a free society, the vision of Bangladesh’s poverty
reduction strategy is to substantially reduce poverty within the next generation. For
this, poverty reduction has been made the overarching development goal and
Bangladesh’s commitment is to achieve the Millennium Development Goals (MDGs)
and targets set in the Partnership Agreements on Poverty Reduction (PAPR) with the
Asian Development Bank (ADB). Through adopting a comprehensive approach, the
strategy visualizes that Bangladesh would achieve the following targets by the year
2015 (MoF, 2002):

(i) Reduce the number of people living below the poverty line by 50%;
(ii) Attain universal primary education for all girls and boys of primary
school age;
(iii) Eliminate gender disparity in primary and secondary education;
(iv) Reduce infant and under five mortality rates by 65%, and eliminate
gender disparity in child mortality;
(v) Reduce proportion of malnourished children under five by 50% and
eliminate gender disparity in child malnutrition;
(vi) Reduce maternal mortality rate by 75%; and
(vii) Ensure availability of reproductive health services to all women

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1.5 Indicators of National Characteristics and Development Status

1.5.1 Population

The estimated population of 2004 is about 135.2 million and according to the census
carried out in 2001, the population was 130.03 million. The growth rate of
population in 1981 was 2.31%, which decreased gradually to 2.04% in 1991, 1.41%
in 2001; but subsequently increased to 1.5% in 2004 (MoF, 2004). This upward
tendency of growth is mainly due to the reduction of government’s support for
family planning initiatives (Table A.1.1, Appendix-A; also shown in Figure-1.1).

2.40%

2.20%
Growth Rate (%)

2.00%

1.80%

1.60%

1.40%

1.20%

1.00%
1981 1991 2001 2004
Year
Figure 1.1 Growth Rates of Population over Decades in Bangladesh

The population density is 916 per square kilometer in 2004. This is an extremely
high density and so Bangladesh faces many constraints in developing the standard of
living of her population. The male-female ratio, as per the 2001 census is 106 (BBS,
2005). Of the total labor force 62.30% are farmers, 30.10% are miscellaneous
laborers and only 7.5% constitutes the industrial laborers (manufacturing, electricity,
gas). The literacy rate in 2002 was estimated to be 62.66% (MoF, 2004).

Dhaka is the capital, and the largest metropolitan cities of the country. Chittagong,
the port city, is the second largest metropolis. Khulna, Rajshahi, Barisal and Sylhet
are other major towns. According to the latest census, about 77% of the total
population lives in the rural areas and 23% lives in major cities. The coastal areas of
Bangladesh include Chittagong, Cox’s Bazar, Feni, Lakhshipur, Noakhali, Borguna,
Bhola, Barisal, Jhalokati, Patuakhali, Pirojpur, Bagerhat, Satkhira, Khulna (Figure
1.2); and the percentage of population in these areas constitute 22.2% with a
population density of 699 per square kilometer (Table A.1.2, Appendix-A). For non-
coastal areas, the percentage of population is 77.8% and the population density is 890
per square kilometer. Therefore, concentration of population is predominantly seen
near the non-costal areas than the coastal areas.

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Bay of Bengal

Figure 1.2 Map of Bangladesh

1.5.2 Political

The political environment of the country is extremely unstable. ADP-GOB (2004)
mentioned……. “The economy of Bangladesh is one of the most vulnerable
economies in the world which is characterized by an extremely high population
density, low resource base high incidence of natural disasters, and persistent political
instability during most of the period after Independence”. Chowdhury (2002)
remarked “…..social instability caused by corruptions, cheating, extortion of money,
robbery, abduction, eviction, violence at meetings, processions, hartals etc. and other

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organized crimes form an important component of daily news of the local dailies in
recent years. These untoward events have spread to such a scale that Bangladesh hits
newspaper headlines recently by being one of the most corrupt and crime hit
countries of the world. The most worrying aspect of these phenomena is that these
menaces have been on the rise without any sign of being abated. This has cast a
shadow of gloom in the society” He further mentioned that about 2.0 to 3.0 percent
GDP growth rate per annum is reportedly sacrificed at the altar of corruption alone.

1.5.3 Social

Socio-economic

If looked at from a socio-economic context, both the GDP per capita and GNI per
capita have increased over time to US$ 421 and US$ 444 respectively (MoF, 2004;
BBS, 2005). The increase in GNI from the previous year was significant (Table 1.1).

Table 1.1 Per capita GDP and GNP over time

Per Capita 1997-98 1999-2000 2001-2002 2002-2003 2003-2004
(US$) (US$) (US$) (US$) (US$)
GDP 354 368 361 389 421
GNI 365 381 378 411 444
Sources: MoF (2004): Bangladesh Economic Survey 2004 for figures of 2004
BBS (2005): Statistical Pocketbook Bangladesh 2003 for all other figures

However, the income distribution is very unfair. The gap in income between the
poorest of the poor (bottom 5%) and richest of the rich (top 5%) is widening. In
1995-96 the income of the top 5% of the household was 23.6%, which was about 27
times the income accrued to the lowest 5% households, who shared only 0.67% of
the income. On the contrary, in 2000, income share of the top 5% of the households
has increased to 30.7%, which was about 46 times of the income accruing to the
lowest 5% of the household (BBS, 2003). The Gini coefficients show increasing
trend during the last two decades indicating the widening of income gap. Urban
income inequality is higher than the rural areas (Figure 1.3).

0.47
0.46
0.45
0.44 National Gini Coefficient
0.43 Rural Gini Coefficient
Gini coefficient

0.42 Urban Gini Coefficient
0.41
0.4
0.39
0.38
0.37
0.36
0.35
0.34
0.33
0.32

1983-84 1985-86 1988-89 1991-92 1995-96 2000
Years
Figure 1.3 Inequalities in Income over Years in Bangladesh
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Education

To be in line with the MDG, government aims at ensuring primary education for all
by 2015. The total government expenditure on education has been on the increase
from the previous year. Per capita total public expenditure on education has also
been on the increase. The adult literacy rate of population above 15 years for both
sexes is 51% and the trend is on the increase. Net primary enrolment as well as
women’s economic participation has gone up significantly; and gender parity has
been achieved in primary and secondary education (Planning Commission, 2004).

Health

The average life expectancy is 68.3 years (72.8 years in urban areas and 66.7 years in
rural areas) in 2001 showing an increasing trend from 56.3 years in 1992. The IMR
(infant mortality rate) is 56 in every thousand children born. The crude birth rate and
death rates are 19 and 5 respectively. All these demonstrate improvement over time.
Patient per bed in the government hospitals in 2003 was estimated at 4109, and
number of person per registered doctor was 3866. Ninety seven percent take fresh
drinking water; and 41.22% use proper sanitary latrines. Per capita government
expenditures on health and family planning have been on the increase: from Taka
151 in 1999 to Taka 182 in 2002 (BBS, 2005).

1.6 Poverty Situation

Bangladesh is one of the poorest countries of the world. One out of every two of its
citizens is absolutely poor on the basis of cost-of-basic needs (CBN); and two out of
three of the poor are hard core poor (Ahmed et al. 2002). In 2000, percentages of
population living below absolute poverty line (2122 k. cal/day/person) and hard core
poverty line (1805 k. cal/day/person) were 33.7 and 49.8 respectively (Head count
ratio, CBN method (BBS, 1998; and BBS, 2001b).

1.7 Sectoral GDP Trend

There are three broad sectors of economy in Bangladesh: agriculture, industry and
services. Service sector dominates the GDP of Bangladesh; it centers on 49% during
the last 6-7 years. The contribution of agricultural sector to GDP was 22.83% in
2003-04, registering a decline from 25.87% in 1996-97. Share of industry has gone
up from 24.87% in 1995-96 to 27.24% in 2002-03 (Table A.1.3, Appendix-A).

During the last three decades contribution of crop sector has been on the decline. The
share of crop sector to agricultural GDP was the highest (85.70%) in 1974-75, which
has fallen to 73.36% in 1979-80, 60.31 in 1995-96, 55.95% in 2000-01 and finally to
56.95% in 2003-04. On the other hand, share of fisheries sector in agricultural GDP
has increased by more than three times from 6% in 1974-75 to 19% in 2000-01, and
finally 22.69% in 2003-04 (Table A.1.4, Appendix-A and Figure 1.4).

Contribution of livestock sub-sector to agricultural GDP kept on remaining lower
than fisheries following 1990-91, while the trend was just the reverse from 1977-78
to 1985-86. Before 1985-86, both these sectors were performing hand to hand. (Table
A.1.4, Appendix-A, and Figure 1.4)

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100
S Crop
h 90 Forestry
a 80 Livestock
r 70
Fishery
e
60

50
%

40
30

20
10
0
1972/73
1973/74
1974/75
1975/76
1976/77
1977/78
1978/79
1979/80
1980/81
1981/82
1982/83
1983/84
1984/85
1985/86
1986/87
1987/88
1988/89
1989/90
1990/91
1991/92
1992/93
1993/94
1994/95
1995/96
1996/97
1997/98
1998/99
1999/00
2000/01
2001/02
2002/03
2003/04
Year
Figure 1.4. Trend of Crop, Forestry, Livestock and Fishery Share to Agricultural GDP

1.8 Unemployment

There has been a significant increase in the rate of unemployment in both the male
and female population since the Labour Force Survey (LFS) conducted in 1989. The
overall unemployment rate has increased to 3.7% in LFS 1999 from only 1.2% in
LFS 1989. Unemployment rate in the urban areas is higher as opposed to that of the
rural areas. For example, in the 1999 LFS (BBS, 2004), unemployment rate for both
sexes in the urban areas was 5.5%; whereas it was 3.2% in the rural area (Table
A.1.5, Appendix-A and Figure 1.5).

Both Sex
Male
3.8
Female 3.7 3.6

2.5 2.7
2.3

1.9 2 1.9

1.2 1.3
1

1989 1990-91 1995-96 1999-2000
LFS
Figure 1.5 Trend in Unemployment Rate in Bangladesh

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1.9 Balance of Payment

The trade balance has always been deficit during the last 6-7 years and the amount of
deficit was the highest in FY 2002-03. In 1996-97, the trade deficit was US$ 2113
million, whereas the same in 2003-04 has increased to US$ 2207 million (MoF,
2004). Current account balance remained negative till 2000-01 after which it became
not only surplus but also shows increasing trend. Balance of payments fluctuated
over the last 6-7 years, but following financial year 2000-01 it started becoming a
surplus. (Table A.1.6, Appendix-A).

1.10 Human Development Index

Bangladesh is ranked 138th in the Human Development Report 2004, with a recent
most HDI value of 0.509 (Table A.1.7, Appendix-A). This value can be compared to
the best and worst performer in South Asian region. The best performer Maldives has
a HDI value of about 47.7% higher than Bangladesh; while the worst performer in
the same region, Pakistan has a 2.36% lower HDI value than Bangladesh (UNDP,
2004). This indicates that the human development status of Bangladesh is far off
from the best performer. However, the hope lies in the fact that Bangladesh has
shown a steady growth trend in HD indices since 1985 to 2002. Bangladesh is ranked
126th in terms of life expectancy, 140th in terms of combined primary, secondary and
tertiary gross enrolment ratio; and 138th in terms of GDP per capita (Table A.1.8,
Appendix-A).

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2 POVERTY SITUATION IN BANGLADESH

2.1 Introduction

This chapter provides a review of poverty situation of Bangladesh. The nature and
extent of poverty, its trend, measurement approaches, national and regional
distribution, factors affecting poverty and poverty reduction strategy of the
government and so on have been discussed.

2.2 Poverty dimensions and measurement

Poverty is a state of non-fulfillment of minimum requirements of food, shelter, fuel,
clothing etc. that is basic needs. It has manifold expressions, many dimensions and,
indeed, many roots. Given the multidimensionality, all routes: income and non-
income matter for combating poverty in the country. Poverty seen in this context
cannot be conceived as something reducible or summarily expressible in terms of
quantitative indicators alone. What is critical is to recognize the heterogeneity of
voices and perspectives expressed in economic as well as socio-cultural terms such
as class, gender, caste, ethnicity, and community.

Poverty is measured in Bangladesh using two approaches; of which the first method
is based on Direct Caloric Intake (DCI). A household with a per capita caloric intake
of less than 1805 k.cal per day is considered “hard core poor”, while a household
with less than 2,122 k.cal per day per capita is considered as “absolute poor” BBS
(2003). The second method is the cost-of- basic needs (CBN) method. To be
considered as poor, a household must have a per capita expenditure below a given
poverty line. DCI and CBN methods have been used to measure the extent of poverty
in the latest Household Income and Expenditure Survey (HIES) of Bangladesh. In
earlier household expenditure surveys (HES), up to 1991-92, BBS used both Food
Energy Intake (FEI) and DCI methods for measuring the incidence of poverty in the
country. This is the second times in HES series of BBS that CBN method had been
used to measure incidence of poverty. (B.2.1., Appendix-B, for details of the poverty
estimation methods)

2.3 Extent of poverty and its trend

The latest available estimate for poverty is for the year 2000, when 44.3 percent of
the total population was estimated to be in absolute poverty level on a DCI. The
corresponding figure for population was 55.9 million. This 44.3% absolute poor
includes 20.0% hard core poor, who consume only 1805 k.cal/day/person (Table
2.1).

Based on the CBN method, percentages of population under absolute and hardcore
poverty in 2000 were 33.7% and 49.8% respectively (Table 2.2). Interpreting in
terms of CBN method, one out of every two citizens is absolutely poor; and two out
of three of the poor are hardcore poor (Ahmed et. al., 2002). Over the last 10 years
(during mainly nineties), the incidence of absolute poverty at national level has
decreased to 33.7% in 2000 from that of 42.7% in 1991-92, according to the lower
line of poverty. The same trend also holds for the upper poverty line, which
decreased to 49.8% in 2000 from 58.8 in 1991-92. Poverty ratio, as measured by

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CBN, fell by about one percentage point per year during the 1990s (Table 2.2). The
incidence of poverty in rural areas is more for both poverty lines I & II.

Table 2.1 Incidence of Poverty (Head Count Ratio) by DCI Method

Poverty Line I Poverty Line II
Year Absolute Poverty Level Hard Core Poverty Level
(2122 k.cal/day/person) (1805 k.cal/day/person)
Population (million) % of Population Population (million) % of Population
National
1983-84 58.4 62.6 34.3 36.8
1985-86 55.3 55.7 26.7 26.9
1988-89 49.7 47.8 29.5 28.4
1991-92 51.6 47.5 30.4 28.0
1995-96 55.3 47.5 29.1 25.1
2000 55.9 44.3 25.2 20.0
Urban
1983-84 7.3 67.7 4.0 37.4
1985-86 7.9 62.6 3.8 30.7
1988-89 6.3 47.6 3.5 26.4
1991-92 6.8 46.7 3.8 26.3
1995-96 9.6 49.8 5.2 27.3
2000 13.3 52.5 6.3 25.0
Rural
1983-84 51.1 61.9 30.2 36.7
1985-86 47.4 54.6 22.8 26.3
1988-89 43.4 47.7 26.0 28.6
1991-92 44.8 47.6 26.6 28.3
1995-96 45.7 47.1 23.9 24.6
2000 42.6 42.3 18.9 18.7
Sources: BBS (1998) Household Expenditure Survey, 1995-96
BBS (2000) Preliminary Report of Household Income and Expenditure Survey –2000

Table 2.2 Incidence of Poverty (Head Count Ratio) by CBN Method

Poverty Line I (Lower Line) Poverty Line II (Upper Line)
Year Absolute Poverty Level Hard Core Poverty Level (1805 k.
(2122 k. cal/day/person) cal/day/person)
Urban Rural National Urban Rural National

1983-84 28.0 42.6 40.9 50.2 59.6 58.5
1985-86 19.9 36.0 33.8 42.9 53.1 51.7
1988-89 22.0 44.3 41.3 43.9 59.2 57.1
1991-92 23.3 46.0 42.7 44.9 61.2 58.8
1995-96 14.3 39.8 35.6 35.0 56.7 53.1
2000 19.1 37.4 33.7 36.6 53.0 49.8
Source: World Bank (1998), Bangladesh: From Counting the Poor to Making the Poor Count.
BBS (2001) Preliminary Report of Household Income and Expenditure Survey-2000,.
Table 2.3 presents information on the incidence of poverty and squared poverty gaps
based on CBN methods in Bangladesh. The poverty gap (depth of poverty) provides
information regarding how far off households are from poverty line. This measure
captures the mean aggregate income or consumption shortfall relative to the poverty
line across the whole population. The squared poverty gap (poverty severity) takes
into account, not only the distance separating the poor from the poverty line (the
poverty gap); but also the inequality among the poor. That is, a higher weight is
placed on those households further away from the poverty line. The table reveals that

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both the poverty gap and squared poverty gap show a declining trend for particularly
the national and rural context, but as far as the urban area is concerned they declined
from 1991 to 1995 showing an increasing trend thereafter.

Table 2.3 Poverty Gap and Squired Poverty Gap of CBN Method

Poverty Lines Year Poverty Gap (%) Squared Poverty Gap (%)
National Rural Urban National Rural Urban
Absolute poverty 1991
(Lower Poverty Line) 1995 7.6 8.6 2.6 2.5 2.8 0.7
2000 7.3 8.2 3.8 2.3 2.6 1.2
Hard Core Poverty 1991 17.2 18.1 12.0 6.8 7.2 4.4
(Upper Poverty Line) 1995 13.9 14.6 7.2 4.8 5.3 2.5
2000 12.9 13.8 9.5 4.5 4.8 3.4
Sources: BBS (2001) Preliminary Report of Household Income & Expenditure Survey-2000,.
World Bank: Poverty Trends in Bangladesh during the nineties

2.4 Differences in poverty estimates

Table 2.4 reveals that there exist sharp variations in the results of head count indices
computed with different methodologies. The table shows national poverty estimates
(head count index) in 2000, based on per capita income are more than 5 percentage
points lower than those based on per capita consumptions (44.2% vs. 49.8%). A
similar trend is also observed for rural and urban areas.

Table 2.4 Comparative statement showing head count index by different methods

Head Count Index (%)

CBN Method

Using Consumption Using Income
DCI
Year

Residence
Method Lower Lower
Upper Upper Poverty
Poverty Poverty
Poverty Line Line
Line Line

National 44.3 33.7 49.8 30.6 44.2
2000

Rural 42.3 37.4 53.0 34.1 47.4
Urban 52.5 19.1 36.6 16.9 31.3
Source: BBS (2003) Household Income and Expenditure Survey- 2000

2.5 Regional incidence of poverty

From the data of Table 2.5 it is evident that, under both measures of poverty, the
districts in the Rajshahi Division are the most poverty stricken. Within the Rajshahi
Division, incidence of poverty is less in urban areas than the rural areas. The second
most poverty stricken area is the Khulna Division, in which it also follows the same
urban-rural poverty pattern as that of Rajshahi Division. In these two regions, the
incidence of poverty is even higher than the national poverty figure, under both
measures.

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Table 2.5 Incidence of poverty (Head Count Ratio) by Regions

Poverty Line I (Lower Line) Poverty Line II (Upper Line)
Absolute Poverty Level Hard Core Poverty Level
Regions (2122 k. cals/day/person) (1805 k. cals/day/person)

National 19.1 37.4 33.7 36.6 53.1 49.8
Barisal 19.5 29.6 28.8 37.9 40.0 39.8
Chittagong 23.3 25.3 25.0 44.0 48.4 47.7
Dhaka 12.0 41.7 32.0 28.2 52.9 44.8
Khulna 27.5 36.8 35.4 47.1 52.2 51.4
Rajshahi 32.3 48.8 46.7 48.1 62.8 61.0
Source: BBS (2003) Household Income and Expenditure Survey- 2000

Table 2.6 Incidence of poverty according to Main Occupation of Household Head

Poverty Line I (Lower Line) Poverty Line II(Upper Line)
Absolute Poverty Level Hard Core Poverty Level (1805 k.
Main occupation of head (2122 k. cals/day/person) cals/day/person)

Professional, technical and related 12.0 21.9 18.8 26.6 35.5 32.2
works
Admin and management works 1.9 12.7 4.9 1.9 23.0 7.7
Clerical, related works and govt. 22.0 40.5 33.1 39.2 54.8 48.6
executives
Sales workers 14.6 27.3 22.6 29.4 45.2 39.4
Service workers 29.6 39.4 35.9 53.5 56.2 55.2
Agriculture, forestry and fisheries 25.0 40.6 39.9 49.3 56.3 56.0
Production, transport and related 20.0 37.2 31.2 39.1 53.4 48.5
works
Head not working 10.7 26.5 22.2 18.2 36.1 31.3
All 19.1 37.4 33.7 36.6 53.1 49.8
Source: BBS (2001b). Preliminary Report of Household Income Expenditure Survey-2000. p.29.

2.6 Incidence of Poverty by Main Occupation of Household Head

Table 2.6 presents information about the incidence of poverty according to main
occupation of household heads. It is clear that highest incidence of poverty are for
households where the occupation of the head was agriculture, forestry and fisheries.
This holds for both the lower and upper poverty lines. The incidence of poverty for
the heads having agriculture, forestry and fisheries as occupations were 39.2% and
56% for the lower and upper poverty lines respectively. On the contrary, the lowest
incidence of poverty (4.9%) was observed for households with head in
administration and managerial works. There exists notable difference in terms of
poverty incidence between urban and rural areas.

2.7 Income and its inequalities among the households

Average monthly income per household at current prices was estimated to be Taka
5842, Taka 4816, and Taka 9878 at the national, rural and urban level respectively.
Incomes per member were Taka 1128, Taka 928 and Taka 1926 at the national, rural

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and urban level respectively. Incomes per earner were Taka 4029, Taka 3368 and
Taka 6414 for the same levels respectively. In terms all the household income,
income per member and income per earner; the 2000 level is higher than those of the
1995-96 and 1991-92, meaning that the trend is on the increase (Table 2.7).

Table 2.7 Household Income, Income per member and earner

HES Household Income Income per member Income per earner
survey National Rural Urban National Rural Urban National Rural Urban
year
2000 5842 4816 9878 1128 928 1926 4029 3368 6414
1995-96 4366 3658 7973 830 697 1504 2950 2505 5014
1991-92 3341 3109 4832 625 581 905 2421 2253 3501
Source: BBS (2003) Household Income and Expenditure Survey- 2000, p. 19

Table 2.8 Percentage Share of income of Households by Decile Group

Decile of Household National Rural Urban
(Household Income 2000 1995-96 2000 1995-96 2000 1995-96
Scale)
Total 100.0 100.0 100.0 100.0 100.0 100.0
Lowest 5% 0.67 0.88 0.75 1.00 0.63 0.74
Decile 1 1.84 2.24 2.08 2.56 1.70 1.92
Decile 2 3.13 3.47 3.55 3.93 2.81 3.20
Decile 3 3.96 4.46 4.45 4.97 3.60 4.06
Decile 4 4.77 5.37 5.34 5.97 4.46 4.98
Decile 5 5.68 6.35 6.23 6.98 5.37 5.97
Decile 6 6.84 7.53 7.42 8.16 6.43 7.20
Decile 7 8.32 9.15 8.87 9.75 7,86 8.98
Decile 8 10.40 11.35 10.88 11.87 10.06 11.35
Decile 9 14.30 15.40 14.50 15.58 14.10 16.29
Decile 10 40.72 34.68 36.62 30.23 43.56 36.05
Top5% 30.66 23.62 26.74 19.73 33.64 24.30
Gini-Coefficient 0.472 0.432 0.430 0.384 0.497 0.444
Table 2.8 shows that income gap between the poorest of the poor (bottom 5%) and
richest of the rich (top 5%) is widening as far as the income distribution is
concerned. In 1995-96 the income share of the top 5% of the households was 23.6%,
which was about 27 times higher than the income share of the lowest 5% of the
households. In 2000, income share of the top 5% of the households went up to
30.7%, marking about 46 times that of the income of the lowest 5% of the
households.

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0.47
0.46
0.45
0.44 National Gini Coefficient
0.43 Rural Gini Coefficient
0.42 Urban Gini Coefficient

G in i c o e ffic ie n t
0.41
0.4
0.39
0.38
0.37
0.36
0.35
0.34
0.33
0.32

1983-84 1985-86 1988-89 1991-92 1995-96 2000
Years

Figure 2.1 Inequality of Income over years in Bangladesh

Although there has been growth in the economy inequality in income distribution
still exists. Over the last two decades, the National Gini Coefficient has been
increasing, which indicate that the inequality in the distribution of income has been
on the increase. When the rural and urban Gini coefficient is compared, it is evident
that the inequality is even more in the urban area. From the Figure 2.1 it is seen that
somewhere between 1984, the Urban Gini coefficient was lower than the national
inequality. However, after 1988-89 the inequality in urban areas exceeded the
national coefficient. Ever since, the urban Gini coefficient is showing an increasing
trend. The inequality in the rural area is the lowest. The national inequality in income
displays a decreasing trend since1995-96. (Table B.2.2, Appendix-B)

Contributions of different sources of income at national level, in order of importance
in 2000 were professional’s wage of salary accounting for 29.4%, business and
commerce (25.9%), agriculture (18%), gift remittances (10.9%), housing services
(7.8%), and others (8.0%). The trend of contribution were declining for agriculture
and increasing for business and commerce. Changes in contribution of the
professional’s wage salaries were very minimal (Table 2.9).

Table 2.9 Percentage Share of Income of Household by Sources of Income

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HES/HIES Total Agriculture Business Professional Housing Gift Others
and wages of services remittance
commerce salary
National
2000 100 18.3 25.9 29.4 7.8 10.9 8.0
1995-96 100 26.3 20.3 30.3 6.8 9.1 7.2
1991-92 100 33.4 14.8 24.3 9.4 10.3 7.8
Rural
2000 100 25.5 22.4 27.7 5.0 11.0 8.4
1995-96 100 35.4 14.7 27.7 6.5 9.6 6.1
1991-92 100 40.1 12.4 21.1 9.1 10.6 6.7
Urban
2000 100 3.7 32.4 32.6 13.1 10.6 7.5
1995-96 100 4.8 33.4 36.6 7.4 7.9 9.9
1991-92 100 5.9 24.7 37.9 11.0 9.1 11.4

2.8 Per Capita Calorie Intakes

Table 2.10 shows that average per capita per day intake of energy is 2240 k.cal in
2000, which is 0.62 % less than that of 1995-96. This decrease is mainly due to the
receipt of low calorie food in urban area than the rural area. Rice constituted 75.4%
of the calorie intake in 2000, while fish accounts for 2.4% of the total calorie intake.
Calorie intakes are more in rural area.

Table 2.10 Per Capita Daily Calorie Intake by Food Items

National Rural Urban
Food item groups
2000 1995-96 2000 1995-96 2000 1995-96
Cereals 1609.9 1758.8 1746.0 1804.5 1470.9 1528.2
Potato 53.8 44.0 53.1 41.5 56.6 56.4
Vegetables 78.6 72.5 80.5 74.4 71.0 63.0
Pulses 55.6 47.7 52.9 44.0 62.2 66.3
Milk/milk products 31.0 37.5 29.1 34.7 38.6 51.1
Edible oils 115.4 88.1 101.1 75.3 171.9 152.9
Meat, poultry, egg 24.4 19.7 20.4 16.0 39.8 38.9
Fish 53.1 63.6 51.5 59.7 59.4 83.4
Condiments and spices 53.1 38.0 51.2 37.0 60.2 43.2
Fruits 19.3 18.9 17.9 16.9 25.1 28.9
Sugar/gur 27.3 36.8 25.3 36.2 35.0 40.0
Miscellaneous 38.3 28.4 34.1 22.9 55.4 55.8
Total 2240.3 2254.0 2263.2 2263.1 2150.0 2208.1

2.9 Determinants of poverty

Planning Commission (2004), by making use of the HIES 2000 data, has employed a
regression analysis to identify the major factors behind poverty in Bangladesh. Ten
variables or factors were considered in the analysis. The variables were of three
different types. First, there were three quality and demographic aspects of the
households, viz. the gender of the household head, the literacy level of the household
head, skill level of the household head, the religion of the household, the size and
location of the household (i.e. rural or urban). Then there were intervention variables,

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i.e. whether the household has electricity connection and is the recipient of female
stipend. Finally, land ownership and income from assets owned were the asset and
income variables.

The findings suggest that households with electricity connections (as a proxy of
infrastructural facilities) are likely to avert the incidence of poverty. The female
stipend programme is another important factor which is likely to help reduce the
incidence of poverty. Households whose heads are literate and have acquired skills
are also likely to escape poverty. Households owning cultivable land are less likely
to be poor, which is in line with the general perception that land ownership is an
important factor in reducing poverty in Bangladesh. Similarly, households who have
asset income are likely to be non –poor. An important observation is that the higher
the size of the household the higher is the probability of being poor.

The findings regarding literacy and skill of household head as they relate to poverty,
underscore the need for expansion of literacy and skill development programmes as
one of the factors in reducing poverty in Bangladesh. Similarly, provisioning of basic
infrastructure (as proxied by electricity) is likely to pave the way for poor households
to engage in productive activities, raising their income and hence reducing poverty.

The objectives of the female stipend programme are twofold: (i) to influence or
induce households to send their girls to primary schools; and (ii) to receive cash
transfer from the government in recognition of their decision, which may also raise
the income of the recipient households. It is believed that both of these channels are
likely to have a positive effect on reducing poverty incidence. This indicates the
importance of this programme in reducing poverty in Bangladesh and hence the
programme should be continued and may even be expanded.

One major reason for larger household size contributing to the probability of being
poor is the uncertainty arising from a low life expectancy at birth and up to five years
of age. IT is expected that an expansion of the basic health services aimed at
reducing IMR and U5MR will help reduce family size. However, the evidence of
TFR remaining on a plateau is a major cause of concern which may have negative
impacts on population stabilization, household size and the poverty situation. Thus,
attention must be given to reactivate the population programme to attain
demographic targets.

2.10 Bangladesh’s Poverty Targets and Social development Goals

The vision of Bangladesh’s poverty reduction strategy is to substantially reduce
poverty within next generation. For this, poverty reduction has been made the
overarching development goal and Bangladesh’s commitment is to achieve the
MDGs and targets set in the PAPR with the ADB. Through adopting a
comprehensive approach, the Strategy visualizes that, by the year 2015, Bangladesh
would achieve the following targets:

1. Reduce the number of people living below the poverty line by 50%;
2. Attain universal primary education for all girls and boys of primary school
age;
3. Eliminate gender disparity in primary and secondary education;

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4. Reduce infant and under five mortality rates by 65%, and eliminate gender
disparity in child mortality;
5. Reduce proportion of malnourished children under five by 50% and eliminate
gender disparity in child malnutrition;
6. Reduce maternal mortality rate by 75%; and
7. Ensure availability of reproductive health services to all women.

Given the pattern of economic growth, which is accompanied by rising inequality,
the growth elasticity of poverty reduction for rural areas was estimated at -0.73,
while the figure for urban areas is -0.64. Using these elasticities, the results show
that the attaining of Millenium goal of reducing the income poverty by half by 2015
will require significant additional efforts. The rural head count index will be halved
by the year 2015 only if the per capita rural consumption expenditure grows at a rate
of at least 4% per year. The calculations show that if the goal of reducing the
incidence of poverty by half is to be achieved by 2015 then Bangladesh needs to
sustain a GDP growth rate of about 7% per year over the next 15 years.

As regards other indicators, the likelihood of target achievement is higher given the
encouraging performance of the nineties in reducing child mortality and child
malnutrition as well as success in removing gender inequality at primary and
secondary schooling. The available evidence also suggests that the MDG target of
halving malnutrition rates by 2016 is not likely to be met through economic growth
alone. More effective public actions than in the past will be necessary in attaining the
goal of halving malnutrition. This would also require the exploitation of important
synergies between income and non-income indicators. Many of the social indicators
included under the MDGs are influenced by economic growth through the channels
of income- poverty reduction and public expenditures on social sectors. As the level
of income-poverty gets reduced and private spending on social sectors increases,
progress in attaining social development goals will be further stimulated. Better
governance of social expenditures along with higher allocations through government
and non-government channels, as emphasized under the strategy, would provide
additional momentum to the process of social development.

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3 ECONOMIC GROWTH OF BANGLADESH

3.1 Introduction

Bangladesh is one of the most vulnerable economies in the world characterized by an
extremely high population density, low resource base, high incidence of natural
disasters, and persistent political instability during the most of the period after
independence. Notwithstanding these difficulties, the economy has performed
relatively well as is reflected in the real per capita income of the people has nearly
doubled during the last three decades. This has also been accompanied by an
impressive progress in human development (BIDS, 2001). Yet the development
challenges are still formidable in view of the low per capita income US$444 along
with nearly half of the population living below the poverty line. The purpose of this
chapter is to investigate into the pattern of economic growth the country has achieved
over time along with contribution of fisheries sector to the growth process.

3.2 Time Phases of Economic Growth of Bangladesh

During the last 32 years (1972/73-2003/04) in the history of economic growth in
Bangladesh, three successive time phases of policy changes can be clearly identified.
These are the phase of intensive intervention, the initial phase of liberalization and
the phase of economic reform.

Phase one starts from 1972/73 and goes up to 1977/78. This phase was characterized
by the post independence reconstruction that broadly corresponds to the
implementation period of the First Five Year Plan (1973/74-1977/78). The objective
of planned development was to achieve socialism in a democratic manner. All
financing organizations and industries were nationalized. There was considerable
state control over the economy. Agriculture enjoyed heavy subsidy and the public
sector was responsible for input distribution. Domestic industries were protected
from foreign competition through import restriction. Thus the first six years of post
independence period can be identified as the phase of intensive intervention.

Phase two goes from 1978/79 to 1989/90. Three development plans, namely the Two
Year Plan (1978/79-1979/80), the Second Five Year Plan (1980/81-1984/85) and the
Third Five Year Plan (1985/86-1989/90) were implemented during this period. This
was a phase of army-led development. This phase was marked by denationalization
of industries, gradual withdrawal of subsidies from agricultural inputs and
privatization of input distribution system. Government policies were influenced by
structural adjustment policies of the World Bank and the IMF (Alam, 1999). These
12 years can be identified as the initial phase of liberalization.

Phase three starts from 1990/91 and goes up to 2003/04. During this phase the Fourth
Five Year Plan (1990/91-1994/95) and the Fifth Five Year Plan (1997/98-2001/02)
were implemented. The economy relied more on market forces and state intervention
in the economy was substantially reduced. There was a marked reduction of tariff
rates on imports and reduction of subsidies from agricultural inputs. A tight monetary
and fiscal policy and a flexible exchange rate policy were followed throughout this

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phase. These 15 years can be identified as a period of parliamentary democracy and a
period of economic reform.

3.3 Aggregate Growth Structure of the Bangladesh Economy

World Bank Country Study (1995) estimated that Bangladesh is required to undergo
a sustained growth of over 4 percent per capita for a decade in order to enable an
average poor Bangladesh to cross the poverty line. The Draft I-PRSP (2002)
recognizes that …..if the goal of reducing the incidence of national poverty by half is
to be achieved by 2015, Bangladesh needs to sustain a GDP growth rate of about 7
percent per year over the next 15 years ((MoF, 2002).

Table 3.1 Structural Change and Trend of Growth of the Contributions of Large
Sectors to GDP of Bangladesh (Constant Price, Base Year: 1995/96)

Contribution (%)
Sectors 1979/80 1984/85 1989/90 1994/95 1999/00 2003/04
Agriculture 33.21 31.46 29.52 26.02 25.58 22.83
Industry 17.08 18.70 20.78 24.28 25.70 27.80
Service 49.72 49.84 49.70 48.70 48.72 49.37
Total 100.00 100.00 100.00 100.00 100.00 100.00
Average growth (%)
Sectors FY 81-04 FY 81-85 FY 86-90 FY 91-95 FY 96-00 FY 01-04
Agriculture 2.77 2.68 2.40 1.55 4.88 2.23
Industry 6.51 5.70 5.86 7.47 6.44 7.24
Service 4.33 3.83 3.58 4.15 4.81 5.51
Overall GDP 4.41 3.72 3.74 4.39 5.21 5.12
GDP per capita 2.54 1.54 1.50 2.36 3.83 3.70
Source: MoF(2004) Economic Survey of Bangladesh, 2004

It was expected that in a growing economy, the share of agriculture to GDP would
fall and that of manufacturing would rise; followed by a rise in the share of service
sector. In Bangladesh the share of agriculture has declined sharply over time from
33.21 percent in 1979/80 to 22.83 percent in 2003/04 (in 1995/96 prices); although
the total value of agricultural production increased significantly over time (BBS,
2005). In contrast, increase in the share of industries to GDP is not satisfactory, and
that of the service sector to GDP increased. It means that the decline in the
contribution of agriculture to GDP was compensated by a rise in the share of the
service sector. The evidence suggests that the industrial sector in Bangladesh did not
grow properly over time and the transfer of labor occurred mainly from agriculture to
low paid services rather than to industries. It appears from Sobhan (1990) that the
post intervention period reform policies were unable to promote competition in the
industrial sector and that there was large-scale financial indiscipline and debt-default
in private industries. Frequent strikes and political unrest in the early 1990s was
another factor responsible for stagnation in the industrial sector. In any case, the
long-term stagnation in the share of industrial sector to country’s GDP is cause of
major concern and should be dealt with all seriousness (Alam, 1999).

The overall GDP growth rates fluctuated in the eighties and first half of the nineties.
It was the second half of the nineties and first 4 years of millennium which mark an
average of more than 5 percent per annum Table 3.1). This is an impressive GDP

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growth rates. It is thus expected that achieving a sustained average growth of 6-7% a
year required for achieving MDG goals particularly of reducing poverty by half by
2015 will not be very difficult.

3.4 Disaggregated Growth of Different Sectors in Bangladesh

Table 3.2 shows the growth rates of different sub sectors. The overall growth rate of
agriculture sector in the beginning of millennium was very good (5.53% in 2000-01),
but it slowed down thereafter. Crops and vegetables showed impressive growth rate
immediate before the millennium but faced declining growth. Livestock shows
impressive growth during the last 4-5 years. Forestry sub-sector does not show any
improvement staying within roughly 4-5% per annum. Growth of fisheries sub sector
was very impressive in the 1998-99 and 1999-00 ranging between 9 and 10 percent.
The sub-sector thereafter had undergone negative growth in 2000-01, which is due to
the September tragedy in 2001. Fisheries sector started recovering again thereafter
and showing increasing trend of growth (Figure 3.1).

Table 3.2 Annual growth of GDP by sectors at constant price (Base: 1995-96 = 100)

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Item -94 -95 -96 -97 -98 -99 -00 -01 -02 -03

1.Agriculture and
forestry 0.65 1.93 2.03 5.57 1.64 3.24 6.92 5.53 3.59 3.29
Crops and vegetables -3.42 1.74 6.44 1.05 3.11 8.10 6.18 -2.39 2.88 1.67
Livestock 2.47 2.51 2.58 2.64 2.69 2.74 2.81 4.70 4.51` 4.48
Forest resources 2.84 3.46 4.03 4.51 5.16 4.94 4.85 4.91 4.43 4.48
2 Fishing 7.91 6.79 7.39 7.60 8.98 9.96 8.87 -4.53 2.22 2.33
3 Mining and quarrying 5.15 9.65 7.81 3.56 5.76 1.32 9.48 9.75 4.53 6.76
4 Industry 8.15 10.48 6.41 5.05 8.54 3.19 4.76 6.68 5.48 7.41
5 Electricity, gas and
water supply 6.54 5.29 5.43 1.93 2.01 6.00 6.78 7.40 7.63 8.09
6 Construction 9.28 9.56 8.50 4.64 9.48 8.92 8.48 8.65 8.61 8.31
7 Wholesale and retail
trade 5.55 7.96 4.63 5.48 5.98 6.51 7.30 6.43 6.59 6.54
8 Hotel and restaurant 4.98 4.98 4.98 4.98 6.50 6.65 6.94 7.00 6.92 7.29
9 Transport, storage and
communication 4.02 4.95 5.15 5.50 5.61 5.90 6.08 7.92 6.56 6.64
10 Financial
Intermediation 5.01 5.09 4.87 5.14 5.27 5.40 5.50 5.54 6.7 6.77
11 Real estate, renting
and business services 3.33 3.48 3.40 3.54 3.80 3.82 3.83 3.41 3.42 3.81
12 Public administration
and defense 5.64 4.47 4.16 5.50 5.90 5.70 5.97 5.88 5.92 6.07
13 Education 6.61 4.49 2.57 4.77 8.10 7.70 7.74 7.11 7.58 7.66
14 Health and social
services 4.63 2.89 2.70 3.90 4.59 4.6 4.8 4.92 5.30 5.75
15 Community, social
and personal services 2.74 2.75 2.78 2.79 2.85 2.95 3.06 3.15 3.24 3.32
Overall Growth 4.08 4.93 4.62 5.39 5.23 4.87 5.94 5.27 4.42 5.26
Source: MoF (2004) Economic Survey of Bangladesh, 2004 *provisional

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It is assumed that this sub-sector growth rate will reach 3.64% in current fiscal year.
The growth rates of industry and service sub sectors also increased due to the
appropriate measures to develop the investment-friendly environment by the
government. In 2003/04, the growth rates achieved in large scale industries and
service sub sectors are 7.71 and 5.70 percent. The growth rate of manufacturing
industries in 2003/04 is projected to be 7.41 percent in which the growth rates of
large scale and small-scale industries were assumed to be 7.32 and 7.65 percent
compared to 6.56 and 7.21 percent in 2002/03 respectively.

Table 3.1 also shows that the positive trend of structural change of sector-wise
contribution from agriculture to non-agriculture sectors is continuing. In 2003/04, the
contribution of agriculture with fisheries stood at 22.83 percent which was
previously 23.98 and 23.47 percent in 2001/02 and 2002/03 respectively.

There is a continuous increase in the growth rate of industry sector after 1999/00.
The growth rate of manufacturing industries in the last financial year stood at 16.25
percent from 15.97. The growth rate of wholesale and retail trade is projected to be
14.00 percent in current financial year, which was 13.77 and 13.87 percent in
2001/02 and 2002/03 respectively. The growth rate of transport and communication
sector has also increased steadily (Table 3.2).

Structure of GDP of Bangladesh has undergone notable change during the last two
decades (Table 3.1 and Figure 3.1). The contribution of agriculture was more than 30
percent at the beginning of 1980s, which has been reduced to less than 25 percent in
the beginning of current century. On the other hand, in the beginning of 1980s
industry contributed less than 20 percent which has increased to 28 percent in the
Agriculture and Forestry
Crops and vegetables
12 Livestock
Forest resources
10
Fisheries
Industry
8
Growth Rates (%)

6

4

2

0
1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

-2

-4
Year
Figure 3.1 Growth Rates of Different Sub-sectors of Bangladesh Economy

beginning of current century. Though changes in agriculture and industry sub sectors

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are in the opposite direction, the growth rate of service sector remained more or less
same in the same period.

3.5 Contribution of Fisheries Sector in the Economic Growth of Bangladesh

Bangladesh is an over populated developing country. It is striving hard to achieve a
positive change of its economy. Fisheries sector is one of the most important sub-
sectors, which plays vital role in this change. This sector supplies nutrition, creates
rural employment, alleviates poverty and earns foreign exchange. It is generally
recognized that Bangladesh has vast fishery potential within its boundaries in the
form of river, haors, reservoirs, tanks and vast coastal belts. It has excellent
aquaculture potential because of its vast water resources and all these water resources
can be utilized for fish culture. At present, fish alone supplies about 63 percent of
animal protein and 12.8 million people of the country are directly or indirectly
dependent on this sector for their livelihood. Fisheries sector contributes 5.23 percent
to GDP and 4.76 percent to total export earning (DoF, 2003).

The foregoing section makes it clear that contribution of fisheries in the agricultural
GDP has been increasing over the last three decades (see, appendix table A.1.4)
current contribution about 22%. The fisheries GDP kept growing on an average 7-10
percent per annum during 1992-92 1999-00. However, following the September
crisis, it went down sharply in 2000-01. After then it is again catching up. Country’s
fisheries export comprises frozen shrimp, frozen fish, dry fish, salted and dehydrated
fish, turtle/tortoise, shark fin, fish maws and frog leg (exported till 1991-92). Frozen
shrimp and frozen fish are the main fisheries exportable items accounting for 79%
and 19% respectively of the total quantity exported. Other items represent only 2%
of the total fisheries quantities. This is 2nd important foreign exchange earner after
ready made garments.

During the last two decades a notable structural change in fishery has taken place.
During this period aquaculture expanded significantly with the gradual development
of fish culture technology and successful transfer of the same for adoption by the fish
farmers. BFRI has played a very big role in this direction by developing 24 different
fish culture technologies. The most important technology accepted widely is carp
polyculture, Pangas monoculture, shrimp and giant freshwater prawn culture and
Genetically Improved Farmed Tiapia (GIFT) culture. Most of these are practiced in
ponds. Currently 305,025 ha of pond areas and 5488 ha of baor areas are being
utilized for fish (finfish and freshwater prawn) couture; and 203,017 ha of coastal
areas are being used for coastal shrimp culture. As mentioned in the next chapter that
during the last 21 years production of fish grew at the highest rate of 12% per annum
for shrimp, 11% for mainly carp in ponds and 8.6% for carp in Baor. It is the inland
aquaculture that had grown @11% per annum. Over the last two decades
productivity of ponds increased by 309% from 843kg/ha in 1985-85 to about 2609 kg
in 2003-04 while that of the baor increased by 443% from 176kg/ha to 780kg/ha
during the period and 780 kg per ha. Shrimp farm could produce only 229 kg per ha
during 1985-86 which has increased to 564kg/ha now. Value added from aquaculture
is estimated to total Taka 36,695 (US$643 million)

Development of this is attributed to a variety of factors. Use of supplementary feed,
wider supply of fingerlings available and aquaculture extension effort of the DoF,

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BFRI, BAU, NGOs, projects of WorldFish. Center and MAEP of DANIDA. The
MAEP has developed and promoted pond polyculture systems suitable for
smallholders, with activities in the 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 tons in 1989 to 329,000 tons
in 2002. Average yield has risen from 1ton/ha to 3.3 tons/ha. Number of hatcheries
and their capacities of producing hatchlings increased markedly during the last 12
years. In 1989-90, there were 89 govt. and 218 private hatcheries with corresponding
capacity of producing 2512 kg and 22,171 kgs of hatchlings (4-5 day old fry). The
number of government and private hatcheries have increased to 112 and 696 with
corresponding capacity of producing 3902 kg and 297,781 kgs of hatchlings (1 kg
hatchling comprise 0.4 million 4-5 day old hatchlings).

In the post harvest sector, several different element can be identified; 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 de-heading, freezing and packing in bulk,
catering or retail forms. There some 3-5 million workers within the domestic market
and distribution sector, generating a value added of Tk 38,356 million, comprising
Tk 33,302 million from finfish and Tk 2658 million from shellfish. The fish
processing sector employs a further 9.780 workers adding value of Tk 2,396 million.
There are about 124 processing factories in Bangladesh with a collective capacity of
around 165,000 tons. This allows for processing 825 mt per day. Only around 18-
20% of the total factory capacity is utilized. Of the 124 factories, 35 are presently
operational in Khulna, 39 are operational in Chittagong district and 51 plants have
either closed down or are awaiting approval of a quality inspection license (FFSFDS,
2003c: p102).

3.6 Potential for Achieving MDGs in Bangladesh

Bangladesh made noteworthy progress in poverty reduction and attainment of
“Millenium Development Goals” during the 1990-2000 period in spite of pitfalls
such as instability, inefficiency, leakage, mistargeting and erosion of regulatory
standards (MoF, 2004).

The observed rate of actual progress achieved by Bangladesh during 1999-00 is
consistent with or even higher than the pace of annual progress required for
achieving the MDGs by 2015 (set against the benchmark of 1990). In the case of
IMR and CMR, the rates of progress achieved were -2.8% and -2.3% respectively
against the required target rates of -2.7%. Similarly, progress achievement rates in
the case of primary and secondary enrolment were 3.4% and 13.2% against the
required rates of 3.1% and 10.3% respectively. Gender gap in enrolment at primary
and secondary level has been virtually eliminated. Incidence of income poverty
decreased from 59 % in 1991 to 49.8% in 2000, giving an annual decline of 1,5%,
which is however lower than required rate of 2% per annum. A growth of per capita
real income of 4 to 5% per annum is required to achieve the income poverty target.
An overall real income growth rate of 6 to 7% per annum on a sustained basis along
with a population growth of around 1.5% is needed to attain the target per capita
income growth and hence the reduction in income poverty. Projections based on past

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historical trends indicate that Bangladesh may be able to attain most of the MDGs at
the aggregate level by 2015 (MoF, 2004).

4 FISHERIES DEVELOPMENT AND MANAGEMENT IN BANGLADESH

4.1 Introduction

This chapter focuses the fisheries sector of Bangladesh. The different issues covered
in the chapter are institutions and administrations, fisheries resources and fish
productions, importance of fisheries to the nation, fisheries management efforts,
changes in the pattern of fisheries and potential of different sub-sectors within
fisheries.

4.2 Fisheries Institutions and Governance:

Fishery resources in Bangladesh are mainly owned and managed by the public
sector. It is characterized by complex institutional and governance issues, engaging a
mix of formal and informal institutions, public, private civil society sector agents,
and involving a range cross sectoral 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). National
fisheries management, development, extension, training, conservation, quality
control, law enforcement, policy advice, and information collection are the
responsibilities of the DoF. Bangladesh Fisheries Development Corporation (BFDC)
is another related autonomous organization responsible for national development of
marine fisheries, management of Kaptai Lake, and marketing and processing of fish.
Bangladesh Fisheries Research Institute (BFRI) is a vital organization in fisheries
having responsibility of national fisheries research on riverine fisheries, marine
fisheries and aquaculture. The involvement of too many institutions often adversely
affects the development of fisheries sector (World Bank, 1991, FSRFDS, 2003a).

4.3 Fisheries Resources and fish production

Depending on the types of water, Bangladesh fisheries are broadly classified into two
categories, namely, (i) inland freshwater fisheries and (ii) Marine fisheries. Inland
freshwater fisheries comprise capture fisheries in rivers and estuaries, beels, Kaptai
Lake and flood land; and culture fisheries in ponds and ditches, baors and coastal
shrimp farms. The country is very fortunate to have an extensive and huge water
resources scattered all over the country in the form of the above resources covering
an area of 4.48 million hectares (Table 4.1), comprising 4.04 million of open waters
and 0.51 million hectares of closed waters. The country has a coastal area of 2.30
million ha and a coastline of 710 km along the Bay of Bengal (Mazid, 2002).

The country has a total fish production of 2.102 million tons during the 2003-04
comprising 34.83% from inland open waters (capture), 43.52% from inland closed
waters (culture), and 21.66% from marine waters.

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Table 4.1 Area, catch and productivity by sectors of fisheries, 2003-04
Water area Production (Metric ton) Catch per
Sectors of fisheries Quantity hectare
Area (ha) % %
(ton) (kg)
A. Inland Fisheries:
(i) Capture (Open water)
1. River & Estuaries* 1,031,563 22.62 137,337 6.53 134
2. Sundarbans - 15,242 0.73 -
3. Beel 114,161 2.50 74,328 3.54 651
4. Kaptai Lake 68,800 1.51 7,238 0.34 105
5. Flood Land 2,832,792 62.11 497,922 23.69 176
Capture Total 4,047,316 88.73 732,067 34.83

(ii) Culture (Closed water)
1. Pond & Ditch 305,025 6.69 795,810 37.86 2609
2. Baor (Ox-bow lakes) 5,488 0.12 4,282 0.20 780
3. Coastal Shrimp & Fish 203,071 4.45 114,660 5.45 565
Farm
Culture Total 513,584 11.26 914,752 43.52

Total Inland Water 4,560,900 100.00 1,646,819 78.34

B. Marine Fisheries

1. Industrial Fisheries 32,606 1.55
(Trawl)
2. Artisanal Fisheries 422,601 20.10
Marine Total 16,606,600 455,207 21.66

Country Total 2,102,026 100.00
Source: (DoF, 2005): Fisheries Statistical Yearbook of Bangladesh 2003-04
*
Sundarban area is included in River & Estuaries but catch shown separately

4.3.1 Inland Openwater Capture Fisheries

Inland Openwater capture fisheries comprise rivers and estuaries (brackish waters),
beel, Kaptai Lake (a man-made lake) and flood plains. Flood plains constitute the
highest of all open waters accounting for 62.11% of all inland open waters areas.
Comprising all these components, the total inland open water fisheries constitute
88.73% of total inland waters. Floodplains contribute about 24 percent to the total
fish production, followed by rivers and estuaries (6.5%) and beels (3.54%).
Sundarbans and Kaptai Lake contribute a little less than 1% each. About 35% of the
total fish production is contributed by the inland capture fisheries.

4.3.2 Marine Fisheries

The country has a coastal area of 2.30 million ha and a coastline of 710 km long
coast line along the Bay of Bengal, which supports a large artisanal and coastal
fisheries. In addition to this, the country has a 200 mile EEZ in the Bay of Bengal
(Mazid, 2002). The Bay of Bengal is situated in the south of Bangladesh. There is a
total of 166,000 sq. km marine water area including EEZ. Fishing is confined only
within 100-meter depth. (DoF, 2003). During 2003-04 marine fisheries produced

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about 0.455 million tons of fish constituting 21.66% of total production of the
country (DoF, 2005). Marine fishing is dominated heavily by artisanal fisheries. It
accounts for about 20.10% of all fish production. The rest (1.55%) however, comes
from industrial trawl fishing.

There are 87 deep sea fishing trawlers (45 shrimp trawlers and 42 fish trawlers),
21,433 artisanal mechanized boats and 22527 artisanal non-mechanized boats
engaged in industrial and artisanal fishing respectively. A variety of gears are used in
the marine fisheries by the artisanal fishers. These include 106,316 gill net, 50,083
set bag net, 24,614 long line, 6,925 trammel net and 30,643 other nets (DoF, 2004).
Commercial gill net fisher produces 73% of marine output. Artisanal ESBN/Beach
seine net contributes 18% to the total marine output. The other fisheries were, in
terms of contribution, artisanal ESBN/gill net, industrial trawl shrimp trawl and PL
collectors

4.3.3 Inland Closed Water Fisheries (Aquaculture)

Aquaculture takes place in freshwater as well as coastal waters. The freshwater
aquaculture comprises farming/culture in ponds/ditches and ox-bow lakes. The
country has 305, 025 ha of ponds and ditches, 5,488 ha of ox-bow lakes where
culture and stock-based culture are being taken place. The total closed water
accounts for only 11.26% of all inland waters of the country. Of the inland closed
waters, ponds and coastal shrimp farms are important constituting 6.69% and 4.88%
respectively. Ox-bow lakes form only 0.12% of the inland closed water area of the
country. The coastal aquaculture comprises shrimp farms and fish farm. Inland
culture fisheries at present contribute about 44% to the total fish production of the
country. Inland culture fisheries provide about 44% to the total fish production
comprising 37.86% from ponds and ditches and 5.45% from the coastal shrimp
farms. Ox-bow lakes provide only 0.20% to the overall production.

Nine important sub-sector fisheries in inland and coastal areas can be identified.
These are: pond carp polyculture (of Indian and Chinese carps), pond monoculture
(mainly Pangas and Tilapia), small-scale cage culture, hapa nursing (a simple fine
mesh net bag suspended in a pond or other waterbody, in which fry and fingerling
are stocked), commercial cage fish culture, pen culture and lake/enclosure stocking.
Pond carp polyculture accounts for 85% of production from approximately 400,000
ha. Pond monoculture produces only about 3% (mainly Pangas and tilapia) from 700
ha.

4.3.4 Value of Produced Fish

Estimation of fish value is not an easy task as there are a hundreds of species, prices
of which are not maintained by any agency. However, Department of Agricultural
Marketing (DAM) collects some data for a handful of species from some urban city
markets. BBS Statistical Yearbooks also provide price data for major carp species
(e.g. cut piece of Ruhu), but disaggregated species wise price data are not provided.
DAM does not collect quantity traded data in the market it surveys which results in
an over estimation of yearly price. Low price and high price months are given equal
weights in averaging. FSRFD (2003c), by making use of HES consumption and
expenditure data, has estimated a composite price data at Taka37.95 per kg for 1995

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and Taka 42.32 for 2000. These prices do not appear to be realistic for those years. In
fact they appear to be under estimated. The current market price (even the wholesale
price) however, is much higher than those estimated.

Mazid (2003) found much rational to use average per kg price of Taka 60 to value
the fish produced in 1999-2000. Using this price, value of fish was estimated at
Taka 99,660 million (US$1980.87: 1US$=50.3112 in 1999-00). Using the same
price, the value of fish produced in 2003-04 comes to about Taka 126122 million
(US$2151.48 million: 1US$=58.6201 in 2003-04). However, the value of US$ has
appreciated by roughly 16% between 1999-00 and 2003-04. Inflating the 1999-00
average price of Taka 60 by 16%, the equivalent 2003-04 average price comes to
about Taka 70 per kg of fish. Thus the value of fish produced in 2003-04 at an
average price of Taka 70 per kg becomes Taka 147143 million (US$2510.06
million: 1US$). The break up of value of fish produced for different fisheries is
presented in Table 4.2.

Table 4.2 Value of fish produced in 2003-04 under two price scenarios

Production Production Value Value
(million share (%) (million (million
Fisheries ton) Taka) Taka)
@Taka @Taka
60/kg 70/kg
Inland culture fisheries (pond, ditch and baor) 0.800092 38.06 48006 56007
Coastal fisheries (shrimp culture) 0.114660 5.45 6880 8026
Inland Openwater capture fisheries 0.732067 34.83 43924 51245
Marine capture fisheries 0.455207 21.66 27312 31865
2.102026 100.00 126,122 147,143

4.4 Fish Production Trend

Total fish production of the country during the last three decades after independence
has increased about two and a half times, from 814 thousand tones in 1971-72 to
2102 thousand tones in 2003-04 (Table C.4.1, Appendix-C). The inland and marine
fisheries production, during this period, has increased 2.26 and 5.35 times
respectively. Figure 4.1 shows fish production from inland waters started falling
after 1975-76 recovering again from 1991-92. Marine fish production kept on
increasing steadily.

Annual exponential growth rates of different fisheries are presented in Table 4.3. The
last 21 – year exponential growth for the total fish production was estimated to be
5.53% per annum as opposed to 6.61% and 3% for 11-year period (1993-04 to 2003-
04) in the nineties and 10- year period (1983-84 to 1992-93) in the eighties. Fish
production growth rates were the highest for inland culture fisheries in each of the
periods ranging from 7.87% to 12.1%, highest being in the nineties. Shrimp and pond
fish farming registered the highest rates of production growth of all fisheries in
Bangladesh. Rivers and estuaries had negative production growth.

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2500
Production ( Thousand Tonnes) Inland
Marine
2000
Total

1500

1000

500

0
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
Year
Figure 4.1 Trend of Fish Production in Bangladesh

Table 4.3 Exponential Growth Rates of fish production from different fisheries

1993-94 to 1983-84 to
1983-84 to
2003-04
Name of fisheries 1992-93
(11 years) 2003-04
(10 years)
(21 years)
Rivers & estuaries -5.87 -1.08 -1.78
Sundarbans -1.21 8.36 3.76
Beel 0.85 3.25 3.10
Kaptai lake 3.57 2.20 4.84
Floodland 5.45 3.41 5.68
Total inland capture 0.80 2.44 2.98
Ponds 7.21 12.6 10.8
Baors 8.11 6.30 8.65
Shrimp farms 13.4 8.91 12.0
Total inland culture 7.87 12.1 10.9
Total inland fisheries 2.66 6.71 5.95
Trawling -3.09 10.7 4.37
Artisanal fishing 4.51 6.15 4.15
Marine total 4.07 6.40 4.15
Country total 3.00 6.61 5.53
Note: the growth rates are author’s estimation using DoF data series published in Fish Catch
Statistics and Fisheries Yearbook of Bangladesh for the years 1983-84 to 2003-04 (Table C.4.2,
Appendix-C).

4.5 Species Abundance and Composition

The fisheries sector of Bangladesh is highly diverse in resource types and species.
There are about a total of 795 species of fish and shrimp available in Bangladesh
waters comprising 284 freshwater fish species (including freshwater prawn) and 511

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marine species (including marine shrimp) (Mazid, 2002). Twelve exotic species have
also been introduced in the country at different times. Hilsha used to be the most
important single species in the Bangladesh fisheries. However, its contribution has
reduced from 24% in 1985 to about 12%% in 2003-04 (Table 4.4). Shares of major
carps comprising Ruhu, Catla and Mrigal keep on increasing. Their current
contribution to total production in 2003-04 is 22.60%. Of this a bulk of major carps
is produced from aquaculture. In fact, the expansion of aquaculture has made the
most of available major carp production. Exotic carps also keep on increasing its
share to the total production due to expansion of aquaculture. Shrimp is produced
both in marine and freshwater environments. It shows some declining trend from
10.21% in 19985 to 8.31% in 2003-04.

Table 4.4 Percentage composition of different species of inland and marine fisheries

Name of species Origin 1985- 1990- 1995- 2000- 2001- 2002- 2003-
(I/M) 86 91 96 01 02 03 04
Major Carp I 10.74 13.41 18.03 21.28 21.67 22.36 22.60
Other carp I 2.26 1.84 1.18 0.39 0.87 0.77 0.41
Exotic carp I - 2.77 5.55 11.75 12.13 12.22 11.60
Cat fish I 3.77 3.39 2.72 1.77 1.90 1.62 1.76
Snakehead I 2.74 2.86 5.43 3.17 3.00 3.12 3.41
Live fish I 1.84 4.35 5.59 3.12 2.41 2.55 2.63
Miscellaneous I 31.92 29.95 26.47 26.57 26.04 26.21 25.99
(inland)
Hilsha I, M 24.07 20.33 16.48 12.90 11.67 9.96 12.17
Bombay Duck M 2.75 2.14 1.40 1.79 1.81 1.79 1.79
Indian Salmon M 0.08 0.11 0.13 0.03 0.03 0.05 0.05
Shrimp I, M 9.62 8.97 9.27 7.88 8.07 7.98 8.31
Miscellaneous M 10.21 9.88 7.75 9.35 10.40 11.37 9.28
(marine)
Source: DoF: Fish Catch Statistics of Bangladesh and Fisheries Statistical Yearbook of Bangladesh:
various issues (1985-86 …. 2003-04)
Note:1. I and M stand respectively for Inland and Marine
2. Hilsha is caught both from inland fresh open water and marine waters

4.6 Contribution of fisheries Sector:

4.6.1 Share in Gross Domestic Product

The fisheries sector accounts for 5.15% (at 1995-96 constant price) of Bangladesh’s
GDP in 2003-04. The total GDP at current price in 2003-24 was estimated at Tk.
332,567 crore (US$ 57 billion) and fisheries GDP constituted 23% of the agricultural
value added (MoF, 2004). Despite its relatively small size, the fisheries sector is
crucially important to Bangladesh because:

(i) The country has the resource (floodlands, rivers, ponds, other
waterbodies of water, and a long coast line), diverse aquatic wealth,
and climate suitable for high yields and a considerable increase in fish
production.
(ii) Fish is an important and probably the cheapest source of protein. Over
70% of all animal protein consumed is from fish (BBS, 2003 HIES)
(iii) There are considerable scope for increased shrimp and frozen fish
exports- an already fast growing industry

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(iv) The fisheries sector could significantly to the poverty alleviation,
environmental protection, and gainful employment opportunities for
women. Most of the rural population engages in fisheries at least part-
time.

4.6.2 Employment

Estimates of employment in the fisheries sector are incomplete and vary widely
across sources (World Bank, 1991). According to estimates made in the late eighties
there are about 1.25 million commercial fishermen in 1987-88, 60% were in inland
fisheries and 40% in marine fisheries (BBS, 1989). About 8% of the population then
were dependent on fisheries for livelihood (Planning Commission, 1978), and about
73% of the households were involved in subsistence fishing in floodlands in 1987-88
(DoF, 1990). The number of households fishing for subsistence in the floodlands was
10.8 million in 1987-88. However, the most recent estimate has been made by the
Fisheries Sector Review and Future Development Study (FSRFDS, 2003a).
According to FSRFDS, full time equivalent of 5.2 million people, or 9% of the
labour force were involved in fisheries in 2000. In the capture fisheries, some 1.1
million people – landless, part time and full time fishers and landowners – are
directly involved. Around 650,000 (67%) are engaged in the inland fisheries and
444,000 (33%) in coastal and marine fisheries.

Table 4.5 Employment status in inland and marine fisheries

Inland capture fisheries Marine Fisheries Aquaculture
Types of fishers Employ- Type of fishers Employ- Type of Employ-
ment ment aquaculture ment

Subsistence fishers 275,534 Commercial gill 114,308 Pond carp 803,290
net fishers polyculture
Part-time fishers 26,451 Artisanal 17,500 Pond 1,120
ESBN/gill net monoculture
Land owners with 6.012 Artisanal 32,561 Small cage/hapa 1,200
traps and ponds ESBN/Beach culture
(kua) seine
Land owners with 153,075 Shrimp trawl 2100 Commercial cage 80
fixed gill nets culture
(katha)
Full time (small 77,149 Industrial trawl 900 Pen culture 2,000
scale fishers)
Full time (small 113,996 PL collectors 185,000 Bagda farms 94,342
scale fishers)
Full time with 78,191 Golda farms 58,333
hilsha
Total 730,408 Total 352,369 Total 960,365
Capture fisheries total employment = 1,082,777 Aquaculture = 960,365
Adapted from FSRFDS (2003a)

Around 177,500 people are involved in fish and shrimp or prawn seed collection,
husbandry and distribution. 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. In aquaculture (freshwater and coastal together), about 0.96 million are
involved in different activities, of which some 84% work in farming of carp
polyculture in ponds. There are some 3-5 million workers within the domestic market

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and distribution sectors. The processing sector employs a further 9,780 workers,
(3260 full-time equivalents).

4.6.3 Food security

In the past plentiful of fish resources gave rise to various local adages relating to the
food habit and life style of the Bengali people. One such adage is Maache bhate
Bangali meaning Fish and Rice make Bengali. Another such adage is Likhibo poribo
moribo duk-khe, motso dharibo khaibo sukhe meaning I would catch fish and live
happily ever after rather than reading and writing which will only lead to my
drudgery and miserable death (Tsai et. al. 1997). These adages really reflect the
attachment of the people to fish and fishery. It is estimated that about 80% of the
rural people catch fish as a full timer, part-timer and as a recreational activity. Fish
provides very good supplement to the people of diet. It is true that rice intake still
dominates the diet of Bangladeshi. The year 2000 estimate of the BBS (2003) shows
that calorie intake from fish constitutes 2.4%. As far as the protein intake is
concerned, fish constitutes 12.6% which is next to cereal 58%. Moreover, fishing
activities are particularly associated with poorer rural dwellers in Bangladesh, as an
opportunity to apply specialized skills and generate income, and as a means of access
to food in seasonal shortages. Factors bearing social impacts include access to
resources and rights to fish, opportunities for work within production and supply
networks.

4.6.4 Value added of Fisheries

The value added of fisheries sector is presented in Table 4.6. Total value additions
estimated by FSRFDS (2003a) is Tk. 93,688 million comprising Tk 26,937 million
(29%) from inland capture fisheries, Tk. 28,577 million (30%) from marine fisheries
sub-sector, and Tk. 38,174 (41%) from inland and coastal aquaculture. The post
harvest activities also generate a value added of Tk.38,356 million (Tk.33,302
million from finfish and Tk. 2658 million from shell fish)

Table 4.6 Value added of fisheries resources at current prices
Types of fisheries Value added % of total
(Million Taka)
Inland capture fisheries 26,937 29
Inland and coastal aquaculture 38,194 41
Marine fisheries 28,577 30
Total 93,708 100
Adapted from FSRFD (2003a)

4.6.5 Fisheries Export

Bangladesh’s main fisheries item of export is shrimp. Frozen fish, dry fish, salted
and dehydrated fish, turtles/tortoises/ crab, shark fin and fish maws are main items of
fisheries export. Quantities of export as well as value of the same have been on the
increase in general although some fluctuations exist. In absolute terms, export
quantity of fish and fish product had increased from 23,048 metric ton in 1985-86 to
54,141 metric tons in 2003-04 (Table 4.1). During this period the value of export has
increased from Taka 356.25 million to Taka 2363.47 million. In percentage terms,

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shrimp accounts for 59 % of the total quantity of export of fish and fisheries product
in 1985-85, 65% in 1995-96, 76% in 2000-01 and 79% in 2003-04.

4.6.6 Women involvement in fisheries

In Bangladesh involvement of Women in fisheries is passive due to many factors of
which religion is important one. By custom, the life of a woman in Bangladesh is
shaped by the patriarchal, patrilineal and patrilocal nature of the social system. Her
reproductive role is emphasized by social, cultural and religious traditions (Sultana et
al., 2002) . In Bangladesh, fishing is the second most occupation in the non-farm
sector, but only 3% of working women are estimated to be involved in Fisheries
(BBS 1996). The role of women in fisheries encompasses social and economic tasks
both within and outside the family in order to sustain the activities of fishing
communities. Traditionally, fishing was a Hindu occupation and only men in the
fishing communities were engaged in catching fish. The only exception to this was
some old and widowed Hindu women, who caught fish for their household
consumption as well as for sale in the southern part of the country. Now, not only the
old and widows, but also all poor women irrespective of religion, age and marital
status are found to catch shrimp fry in the coastal areas of Bangladesh. About 80% of
the workforce in shrimp fry collection is women and children. This change has
happened due to high poverty level and growth of shrimp farming which created a
need and demand for a low cost way of earning money. Although fry-catching by
women is now quite accepted in coastal areas, fishing by women is not yet a regular
and common picture. Some Hindu women catch fish in the cannels and waterbodies
near their houses with rods and hooks, but rarely with cast nets. Women usually
catch fish by hand in shallow water and paddy fields, particularly in the coastal areas.
It is even more unusual for women to have a say in management decisions regarding
fisheries.

However, there is no concrete evidence as to the extent of women involvement in
fisheries; but the extent of involvement has certainly gone up over the years. Women
are more comfortable in the closed water culture fisheries then the open water
capture fisheries.

Table 4.7 Trend of export of fish and fish related product, Bangladesh
Shrimp Other fisheries products Total
Qty. (Ton) Value Qty. (Ton) Value Qty. (Ton) Value
Year
(million (million (million
Taka) Taka) Taka)
1985-86 13631 269.31 9417 86.94 23048 356.25
1987-88 15023 361.17 8400 92.95 23423 454.12
1989-90 17505 414.31 5834 64.96 23339 478.77
1991-92 16730 455.73 5350 68.62 22080 524.35
1993-94 22054 787.73 9781 133.23 31835 920.96
1995-96 25225 1106.39 13704 234.55 38929 1340.94
1997-98 18630 1181.48 11528 206.33 30158 1387.81
1999-00 28514 1612.12 10877 19944 39391 1811.56
2000-01 29713 1885.15 9275 1476 38988 2032.75
2001-02 30209 1447.76 11273 1893 41482 1637.14
2002-03 36864 1719.99 10507 2216 47371 1941.59
2003-04 42943 2152.77 11198 2107 54141 2363.47
Source: DoF, Fish Catch Statistics and Yearbook of Fisheries Statistics, various issues (1983-2005)

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Even in the closed culture fisheries, women’s involvement is confined to those
activities which can be done staying at home in the adjacent ponds and ditches. But
for activities like input, purchase and sale of fish; women are still constrained. They
usually take care of the aquaculture by spending time for activities like feeding,
fertilizing and guarding. Now days, with the introduction of community based
project involvement of NGOs, the rate of participation of women in outside fisheries
activities is on the increase.

4.7 Wages

Table 4.8 presents information on wages of the different sectors of the economy. The
mean wage index is seen to be the lowest for agricultural labourer followed by
construction workers. Wage in fisheries is in the third position in order. Wages for
the manufacturing labourer was the highest followed by general workers. The mean
wage index for fisheries was 2027 as against 2402 for manufacturing industry, 2142
for general workers, 1995 for construction workers and 1882 for agricultural
workers.

Table 4.8 Wage rate indices by sectors (Base 1969-70 = 100)

Nominal wage indices
Year General Manufac- Construc- Agriculture Fisheries
turing industry tion
1990-91 1482 1575 1487 1321 1452
1991-92 1553 1641 1512 1425 1547
1992-93 1639 1724 1579 1523 1641
1993-94 1709 1828 1598 1593 1699
1994-95 1786 1947 1613 1653 1770
1995-96 1900 2064 1754 1738 1882
1996-97 1990 2161 1848 1808 1974
1997-98 2141 2395 1990 1870 2053
1998-99 2259 2522 2163 1950 2138
1999-00 2390 2701 2286 2037 2220
2000-01 2489 2832 2356 2141 2292
2001-02 2637 3035 2444 2262 2411
2002-03 2926 3501 2624 2443 2563
2003-04 3079 3705 2669 2582 2733
Mean 2142 2402 1995 1882 2027
Source: MoF (2004) Economic Survey 2004

4.8 Fisheries interventions for fish production

A series of policy changes have taken place during the last three decades of
independence in the field of fisheries management in Bangladesh, most of which had
outcome not favourable for fishers including loss of wet lands, overfishing and
declines in fish species. In response to these problems of an increasing human
population and declining inland fish stocks (particularly of carps), a number of
interventions and projects had aimed to increase fish production from ponds and
public fisheries. Aquaculture using hatchery-reared carp in ponds has expanded and
intensified.

The main thrust of government interventions in these fisheries since the mid 1980s
had been fish stock enhancements and culture based fisheries in common

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waterbodies, notably involving stocking of carp in permanents baors (ox-bow lakes)
with screened outlets to prevent escape of fish, and in open seasonal floodplain beels
(lakes and wetlands). Secondly, there had been policies and projects aimed at
strengthening fisher rights (the moves to licensing of fishers) and then fisher or
community based management. Additionally there had been some more specific
attempts to restore capture fisheries in certain areas by restoring links between rivers
and floodplain wetlands. These initiatives in Bangladesh in the late 1990s were of
more than national importance, they add up to probably the largest body of
experience of tropical inland fishery management through enhancements, community
participation and development of common property regimes.

The management of these fisheries had been a priority for the government and other
associated agencies. The Bangladesh government has supported a range of
experiments and pilot activities in inland fisheries management during the last two
decades. These management measures were i) stock enhancement using carp
fingerlings in lakes and floodplains, ii) alternative measures to restore and conserve
natural fish populations, and iii) community-based approaches to management of
inland fisheries.

Stocking of openwaters in the country was initiated by the DoF in 1989 through
stocking of jalmohals under the New Fisheries Management Policy (NFMP) with
carp fries produced in the Fish Seed Firms (Rahman, 2002). The programme
continued for three years. In the nineties, DoF implemented a number of projects
with supports from donors for fisheries management. The implemented projects are
(i) Second Aquaculture development Project (SADP) funded by the Asian
development Bank in the north eastern Bangladesh (1989-96), (ii) World Bank
assisted Third Fisheries Project (1991-96) in western Bangladesh, Ford Foundation
assisted Community Based Fisheries Management Project (1994-98), and World
Bank/DFID assisted Fourth Fisheries Project with large components of habitat
improvement, operation of fish passes and fish friendly regulators, operation of
sanctuaries for conservation of resources and large scale stock enhancement
programme through community’s participation.

4.8.1 The stocking programme

The stocking programmes were undertaken for mainly ox-bow lakes (including
Kaptai lake) to increase production. Ox-bow Lake Project-1 (OLP-I) aimed at
converting six ox-bow lakes into carp culture based fishery through the development
of screening inlets and outlets. DoF was responsible for management and stocking of
the ox-bow lakes. This was the first time that responsibilities for guarding and
protecting the resources were vested to adjacent fishers in exchange of a share of
catch. BCAS (1993) made some case studies and found that that production of the
baors (ox-bow lakes) as well as income of the associated fishers improved.

Ox-bow Lake Project II (OLP-II) was implemented during 1989-97. The difference
of OLP-II in contrast to OLP-I was that full responsibility for fisheries management
of lakes (deweeding, stocking, guarding, harvesting, and marketing) was vested on
the fishers community. The objective of OLP II was however, to transfer the
complete fisheries management of lakes to the fisher community. Seventeen lakes
were stocked during 1994-96. Middendorp et al. (1999) studied 10 such ox-bow

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lakes and found that average carp yield was 669 kg/ha. The benefit cost ratio
averaged 2.11 and return on fingerling costs 474%.

4.8.2 The Second Aquaculture Development Project

The basic concept of stocking programme under Second Aquaculture Development
Project (SADP) was based on selecting and using beels, depressions and road side
canals as low-dyked nurseries for raising 3-5 day old hatchery produced carp
fingerlings. The dykes around beels, road side nurseries were constructed to raise fry
to desirable size (10-12 cm) before they were inundated during the rainy season and
the fires are automatically dispersed in the Openwater floodplain system. Openwater
stock enhancement programme under the SADP was undertaken in 2516 ha of the
Beel nurseries stocked with 2467 kg or 987 million hatchling during the project
period. The completion report of the project made in 1997 stated that this floodplain
stocking programme was economically viable

4.8.3 Third Fisheries Project (TFP)

TFP was funded through a credit from the World Bank. Technical assistances came
from DFID and UNDP. DoF implemented the programme. This was also a stock
enhancement programme. Some 3,000 ha were stocked with carp fingerling in 1991
which subsequently went up to 45,000 ha in 1996. Most of the stocked waterbodies
were regulated by flood control measures and were partially or completely dyked
with sluice gates. A total of 149,500 ha of Beel areas were stocked during the project
period. Studies made on this project (such as Ali and Islam, 1998; BCAS, 1995)
showed that significant production and financial benefits were achieved.

4.8.4 Aquaculture Development Project (ADP)

The ADP was funded by IFAD. The ADP (1998-2004) was implemented by DoF in
8 districts of Midwest Bangladesh. ADP had programme of stocking and
management of 750 ha of Ox-bow lakes involving the fishers in accordance with the
methodologies followed in the OLP-II. The different intervention for the ADP were
dyke construction, deweeding, water control structure, screens and stocking with
carp fingerlings.

4.8.5 Community Based Fisheries Management Project (CBFM)

The first phase of the CBFM (CBFM-I), funded by the Ford Foundation, was
implemented during 1995-2001 by the WorldFish Center (formerly, International
Center for Living Aquatic Resources Management, ICLARM) and DoF. Following
successful completion of the CBFM-1, a second phase (CBFM-2) was initiated from
July 2001 for a period of five years with the funding from DFID. YEAR 2005 is the
fourth year of the CBFM-2 project. The CBFM-2 is working in 120 waterbodies in
47 Upazillas of 22 district. The solutions of the questions being asked are: (i) can
CBFM result in sustainable use systems?, (ii) are benefits in such systems more
equitably distributed?, (iii) what are the most appropriate models of CBFM-2?
(Hossain et al. 1999). It was reported that groups of fisheries with NGO support
established control over waterbodies, stocked carp fingerlings, undertook
surveillance of the stock, provided protection of specified areas as sanctuaries and

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achieved greater equity in income sharing through increased production by these
interventions.

4.8.6 Fourth Fisheries Project (FFP)

FFP is being implemented by the DoF with credit from World Bank and technical
support from DFID. The FFP undertakes fisheries interventions in four areas of
Openwater ecosystem. These interventions are stocking of floodplains, establishment
and operation of fish sanctuaries for conservation of fish stocks and biodiversity,
habitat restoration through re-excavation and construction of fish passes and friendly
regulators for movement and migration of fish.

In addition to all the inland fisheries management interventions mentioned earlier,
there are quite a good number of inland fisheries management project implemented
in Bangladesh between 1991 and 2003 in which funding came from Ford
Foundation, IFAD, DANIDA, FRG and the Dutch, USAID, CIDA, IDA, GEF, and
UNDP (Table C.4.3,Appendix-C).

There are some other CBFM approaches ongoing in Bangladesh. MACH is such a
project. It is a GoB program sponsored by USAID. The government of Bangladesh
and the USAID approved this project in May 1998. MACH seeks to demonstrate that
sustainable management of wet land resources is possible with participation of
stakeholders and users of those resources. It advocates a multi-disciplinary, multi
sector and participatory process of planning, implementation and monitoring for
sustainable wetland resource management. Recognizing that reduction of fishing
pressure is a critical part of reviewing the wetland fisheries, MACH has included
supplemental income-generating activities focused on fishers and others directly
dependent on fishing..

Similarly, there is another project entitled “Empowerment of Coastal Fishing
Community on Liveihood Security (ECFCLF), undertake for 5 years up to 2000 by
the UNDP/FAO. The project aims at empowering targeted fisherfolk communities
through a multi-dimensional approach facilitated with multi-sectoral support. The
overall theme is to initiate a process of change that enhances the targeted
communities’ capacity (in terms of an increase in livelihoods assets, or reduction on
the vulnerabilities challenging livelihood security). The specific objectives of the
project is to (i) assist the communities to empower themselves to collectively address
their problems and needs, (ii) introduce various economic and community welfare
activities which are operated and managed by their community organizations, and
(iii) facilitate sustainable conservation and management of coastal marine and
estuarine fisheries resources and habitats through strengthening of community based
management of the resources.

It is realized that without organizing the communities, development efforts can not
be sustained. It is a very potential solution particularly for public waterbodies.
Towards these ends community based projects have been developed and practiced in
different waterbodies in Bangladesh. The projects are creating positive impacts, but
the major threat is to continue the positive results beyond the project period. The
CBFM project of the WorldFish Center has been intervening for last 8-9 years and
has created many positive impacts too. The productivities of the waterbodies are

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improved, micro-credit delivery has improved income, distribution of income from
waterbodies has been made equitable, considerable savings has been created, basic
necessities and food securities have been improved, the fishers are well organized
and are actively participating in the decision making process and management of
waterbodies, community based organizations (CBOs) are created and disciplined,
and their management and leadership capacities are being developed. All these are
meant for making them able to run their project and manage waterbodies
independently in the absence of project. Concerned departments and people are
hopeful about its success of the project and approach. However, the result is still
inconclusive. WorldFish Center is planning to let some of the experienced CBOs run
on their own without support of the associated NGO. It is expected that better
messages can be obtained out of this effort, and policy people can be provided with
evidence that the process and approach works.

4.9 Fisheries Laws and Regulations

Four sets of laws and regulations govern in fisheries sector of Bangladesh. These are
(i) The Protection and Conservation of Fish Act, 1950, amended in 1982, (ii) The
Tanks Improvement Act, 1939, modifies in 1986, (iii) The Fish and Fish Products
(Inspection and Quality Control Ordinance 1993, and (iv) The Marine Fisheries
Ordinance, 1983, and Marine Fisheries Rules, 1983 (Table C.4.4, Appendix-C).
Regulations such as minimum catcheable size, catching of jatka, use of current net,
creating barrier across rivers to trap migrating Hilsha, catching brood in the breeding
season and use of explosives for fishing and so on apply to riverine fisheries. There
are mesh size regulations for shrimp and fish trawlers as well as drift net, set bag nets
in the marine fishery. Similarly, there are area prohibition for trawlers and other
small-scale artisanal gears operating in the marine fisheries.

There is adequate number of regulations, laws and rules to protect and conserve the
fisheries in Bangladesh. But the main problem is that these are not effectively
enforced, however, for lack of resources (human, physical, and financial) or lack of
will to enforce them. Officials responsible for enforcing fisheries laws, for example,
lack the transport needed to monitor large bodies of water. No new laws or
regulations are needed until the existing laws are effectively enforced (World Bank
1991).

4.10 Studies on Resources rent:

There is real dearth of studies attempting estimation for determination of resource
rent in the Bangladesh fisheries although some other kind of studies are available to
some extent. Two important studies: one in inland fisheries and the other in marine
fisheries deserve worth mentioning:

Ahmed (1991) derived an operational model and analyzed the performance of
Bangladesh riverine fisheries. Functions and parameter estates of a base model were
estimated by deriving two sub models, i) bio-economic production and ii) the market
using regression techniques. The author has made use of both the primary and
secondary data. Results indicate that the riverine fisheries of Bangladesh are capable,
under optimal conditions, of generating a total net benefit of Tk.1383 mi annum of
which 96% would accrue as production surplus. Also a significant over capacity

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exists in the existing fleet in terms of application of efforts relative to resource
availability

UNEP (2004) has made a study, by employing a Schaefer model, estimated that with
an annual yield of 642,130 tones and efforts of 101,442 HP at the point of the MSY,
the estimated catch per unit of effort (HP) would be around 6.33 tones while
economic rent per unit of effort would be around Taka 205 million (US$ 4.27
million). The actual catch (310,000 tones) was estimated to be just half of the MSY
indicating that exploitation in the marine fisheries have not reached the point of
MSY, and the actual yield is below the estimated MSY. The actual effort that is
being applied at present (71,184 HP) is also lower than the estimated level of effort
at MSY (101,442 HP), implying that the present level of exploitation of marine
fishery resources in Bangladesh could be theoretically be doubled. The study thus
indicated that the marine fisheries sector of Bangladesh has not yet reached the open
access equilibrium level .

4.11 Reliability of Fisheries Statistics

Generation of fisheries data in developing countries in general is very difficult. This
is mainly due to the segmentation of fisheries activities for which coordination is
almost absent. Bangladesh is no exception. In addition to the public fish landing
stations, fishers have been using hundreds of unrecognized places depending on their
movement and ease for landing the catches. Unofficial sources provide support to the
belief that fishes caught in the mid sea are often sold there and thus remain outside of
record. The 1996 Agricultural Census shows that the land area operated by rural
households got squeezed by 82,000 hectares every year (225 ha every day) during
1983/84 – 1996 period because of expansion of urban areas, increase in homestead
land and development of rural infrastructure (MoF, 2002). It is believed that large
scale transformation of crop land to permanent fish farms (ponds) is another reason
for the reduction of crop land. In this backdrop, the repeated use of statistics for area
and number of ponds and calculation of fish production and fish productivity is hard
to rely on. The construction of rural houses requires raising base by digging ditch or
small ponds which are often used for fish production. These are not also updated in
the annual fisheries statistics provided by the department. The floodplain statistics is
also not free from those problems. The Team of the BARC-DoF (2001) study on
fisheries review and 10 years production projection made extensive visits in different
districts to determine production trend of the rivers and estuaries, and none of the
Duos, Sufis and UFOs believe that the trend is increasing. Whereas, the published
statistics keep showing that this is also increasing (see, for example, Alam and
Thomson, 2001). Fish consumption statistics also vary across sources (for example,
DoF versus BBS) and therefore, very hard not only to rely on but also to interpret
(see, World Bank, 2001 p. 18). Statistics for number of boats and gears operating in
the marine fishery perhaps suffer from downward bias as a huge number of
unlicensed boats and gears ply in the fishery. Above all, data must pass through
office executives before it is released for pubic consumption, where there may have
the likelihood of some manipulations depending on the political and government
interest and donor satisfaction. There is therefore, good chances that the data people
see have some upward as well as downward biases, and this is not only because of
the above reasons alone. Lack of capacity, manpower and efficiency that matters too.

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5 POLICY MAKING

5.1 Introduction

This chapter reviews the policy context, policy frameworks, and policy processes
relevant to fisheries management in a historical perspective. The poverty reduction
policy in general and fisheries in particular has also been reviewed. The different
stakeholders in fisheries management and their roles and attitudes to the sector are
also examined.

5.2 Fisheries Management and Policy Processes

5.2.1 Before partition of Bengal

Fisheries were not looked upon as an important source of revenue by the indigenous
rulers and it was ranked fourth after agricultural land, forestry and mineral resources
(Habib, 1999). Abundant water and aquatic resources was considered sufficient to
meet the needs of a much smaller population compared to its present size in
Bangladesh and this ensured a flexible regime. The main rivers, where Hindu caste
fishermen held sway, were either open access or partially controlled by the fishing
communities themselves through a series of informal arrangements. Similarly, it was
customary to allow open access to all the floodplains as long as no boundaries or
other means of establishing ownership could be distinguished (Overseas
Development Administration, 1994). The closed fisheries were under nominal
control of the zamindars and some restriction was imposed on fishing in those
waterbodies. These pre-colonial zamindars were primarily collectors of revenue and
did not necessarily have proprietary rights on all lands under their jurisdiction.

After assumption of diwani or the right to collect revenues of Bengal, Bihar and
Orissa in 1765, the East India Company was looking for ways of maximizing
revenue income. Between 1765 and 1793, it carried out a number of experiments that
finally led to the promulgation of the Permanent Settlement Regulations in 1793.
Interestingly enough, one of the experiments used the bidding system as a
mechanism of leasing land. The rationale behind it was to find out the true value of
land through competitive bidding in open public auction. However, rather than
attracting the genuine producers, the system provided inducement to “men of
desperate fortunes who were without ostensible means of livelihood” (Ali, 1986). A
large number of speculative biddings resulted in huge defaults and the experiment
was abandoned.

The Permanent Settlement Regulations finally accepted the principle of revenue
collection through appointed agents. The Permanent Settlement had facilitated two
developments that had lasting influence on inland fisheries management in
Bangladesh. One was the segmentation of large navigable rivers into innumerable
jalmahals that passed through the territories of several zamindars. The other one was
the offshoot of the fixity of annual rent that encouraged large estates to be sub
divided and then settled with sub ordinate zamindars or jotdars. These people leased
the Jalmahals settled with them to leaseholders or ijardars, majority of whom were
not fishermen. These developments severed the patron-client relationship between

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the zamindars and fishermen that had existed for centuries and immensely
complicated the access situation for the fishers. The leaseholders were mostly
venture pseudo-capitalists with no connection to land and became notorious for their
oppressive measures on the poor tenants. The British rulers were also getting
dismayed at the fixed system of rent when the need for revenue generation had
increased manifold. The government of Bengal appointed a Land Revenue
Commission in 1938 under the chairmanship of Sir Francis Floud to examine all
relevant issues and make suitable recommendations. The Commission submitted its
report in 1940 and majority of the members recommended the abolition of the
zamindari system and assumption of all rent-receiving interests by the state.

5.2.2 Partition to Independence

The government of East Pakistan accepted the Floud Commission Report and
through the passage of Ease Bengal State Acquisition and Tenancy Act (EBSATA)
1950 abolished the zamindary system in Bangladesh. Under the provisions of the
Act, ownership and management of all Jalmahals were vested in the Government.
The MoL, through a high powered Board of revenue, was put in charge of
management of these newly acquired assets. It is to be noted here that the MoL,
overnight, had become the owner of most of the valuable resources of the country. In
the exercise of this newly acquired power, the MoL officials found it more
comfortable to work with a few ijardars, mahajans, rural elites and other influential
people as against innumerable fishers. From the very beginning, the MoL has looked
upon this non-fisher leaseholder class as the main constituency and has considered
the fishers as obstacles to their revenue management. The MoL and District level
officials have generally nurtured a negative attitude to the genuine concerns of the
fishers.

In the 1950s, the government did not have many sources of revenue to lay its hand
on. The clear mandate to the MoL, like the immediate past British rulers, was to
maximize revenue from this source. For this purpose, the Board of revenue adopted
the procedure of public auction that the British had unsuccessfully tried and
abandoned. Every year, towards the end of the Bengali calendar year, the district
administration would publish a list of Jalmahals it wanted to settle from the next
Bengali year through open pubic bidding. The lease tenure was variable depending
on the nature of the jalmahal. For seasonal Jalmahals that dry up during the winter,
the tenure is for one year only while for the permanent ones the tenure was three
years. The MoL, however, has wide discretion with regard to both leasing out
without a formal process of auction or to granting lease for longer duration.

The abolition of the zamindary system did not end the leasing system that had crept
in under the Permanent Settlement. It was rather officially recognized and reinforced.
This helped the preexisting leaseholders to participate in the bids and retain their
possession with the active help and support of the land revenue establishment. The
stable pattern of secure access that had already started eroding came under severe
stress of being totally disrupted. These leaseholders or ijardars were mostly non-
fishers and rent-seeking was their primary goal. In the mean time the fishermen
started protesting against the public auction system through the fishermen’s
cooperative societies. In those days, these organizations used to carry some political
clout and the government made a significant policy change around 1965. To give

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some relief to the traditional fishermen, government made a commitment to give
preference to the cooperative societies subject to the condition that such societies are
registered with the Department of Cooperatives and are agreeable to pay the highest
bid money offered at the auctions. This, however, did not help the fishers much for
the reason that they did not have the cash to pay for the highest bid money and the
non-fisher ijardars started taking over the cooperatives by putting the poor fishers as
their surrogates.

5.2.3 Access issue after independence of Bangladesh

The Land Administration Manual that provides the operational procedures for
management of all land including the water bodies makes a distinction between open
and closed water fisheries (MoL, 1991). Open water fisheries are those which are not
surrounded by land and where fishing activities may continue throughout the year.
Rivers, canals and all flowing streams are considered as open water fisheries. Closed
water fisheries are surrounded on all side by land where seasonal fishing activities
are carried out, facilitating conservation and growth of the fish resources.

5.2.4 Leasing policy in the early years

With the independence of Bangladesh in 1971, the access problem to fisheries started
to assume new dimensions. With rising population and pervasive incidence of
poverty in the early years of independent Bangladesh, large number of rural people
flocked into inland fisheries for their livelihood. This happened at a time when the
opportunities were shrinking rather than expanding. To the columns of the
professional fishers were added these new entrants in the field making an already bad
situation worse. Again, under pressure from the fishermen’s cooperatives, govt.
made a further change in its auction policy. In 1974, govt. decided to restrict the
auction of Jalmahals to the registered fishermen’s cooperatives only during the first
round. If they were able to offer at least the base price set by the district
administration, they could get the lease. In case of failure, the bid was opened up for
all comers including the non-fisher leaseholders. This policy had a number of
inconsistencies for which it was doomed to failure from the very start (Huda, 2003).

5.2.5 Policy Shifts between 1980 and 1984

To wards the end of 1970s, the undesirable effects of the dichotomy between
ownership of resource by one entity and responsibility of preservation and biological
management by another had become so obvious in the inland fisheries sub sectors
that the govt. had to take some remedial action. What followed was a series of policy
shifts in allocating the management of Jalmahals. Characteristically, these policy
shifts were being made on the judgments of the situation by the MoL internally and
by others at higher political level. It was not felt necessary to consult either the
MoFL/DoF or the fishers who would be most affected by these decisions. The lack of
a firm policy on jalmahal management not only showed a serious lack of consensus
on this issue among the policy makers but also laid bare their susceptibility to undue
pressures from vested quarters.

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5.2.6 Transfer of Jalmahals from MoL to MoFL

In 1980, the concern for conservation of fish resources had convinced the highest
political level to order a wholesale transfer of all Jalmahals from the MoL to the
MoFL to facilitate the process of biological management of the fish resources. The
later was caught unaware and was not at all prepared to face the challenge right
away. It did not have the trained manpower or the required logistics to start the
process. Instead, it continued with the old practice of leasing the Jalmahals through
the DoF while trying to develop the tools for management of fisheries on biological
principles. Failure of the MoFL to quickly respond to the task was negatively
portrayed by the MoL and district administration who lobbed hard to get back the
control over the settlement of the fisheries. Within three years in 1983, government
reversed its earlier order and transferred the Jalmahals back to the MoL.

5.2.7 New Fisheries Management Policy

Despite this set back, the need for biological management remained a potent
argument for placing at least some fisheries under the control of MoFL. The JMS
was also lobbying to secure better access to the poor fishers to improve their
livelihood condition. In early 1985, a committed leader was selected by the President
to hold charge of the MoFL who genuinely wanted to do something positive for the
fishers. Donors working in the sector were also calling for a change of the leasing
system. All these circumstances led to the announcement of what has since been
known as New Fisheries Management Policy (NFMP). The policy aimed at
achieving the twin objectives of stopping exploitation of the fishers by ijarders
through new management practices and of ensuring proper conservation of the fish
resources. Since the NFMP was developed by people connected with fisheries and
not MoL, it contained huge improvements in certain areas compared to the previous
policies. The most notable are the following:

The leasing system was abolished and in its place a licensing system was
introduced for granting fishing rights to the “genuine” fishermen.
A screening process for identifying the “genuine” fishermen was established
at the Thana level.
The term of the lease of Jalmahals was one year for open fisheries and three
years for closed fisheries
The lease money would be fixed at 10% above last 3 years average revenue
from the concerned jalmahal.
The DoF was responsible for collecting the lease money from the licensees
who were charged on the basis of size of the gear.
To ensure conservation of resources, fish aggregating devices were prohibited
from fishing
For guidance, supervision and monitor in of the operation of the NFMP,
district level committees under the chairmanship of the Deputy
Commissioner and a national level committee under the chairmanship of the
Secretary, MoFL were set up with detailed terms of references.

5.2.8 Further Changes in Leasing System

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In 1991, there was a further change in the leasing procedure for the Jalmahals
retained by the MoL under its control. Public auctioning was replaced by a system
of sealed tenders restricted to fishermen’s cooperatives. However, successful bids
were to offer at least 25% higher rent than the previous year. If the quoted rate of the
tenders submitted by the societies fell below that level, all the tenders were to be
rejected. In that event, fresh tenders were called when any individual or organization
could take part in bidding.

5.2.9 Open Access of Open Waterbodies

In 1995, Government made an abrupt decision to abolish the leasing of the open
Jalmahals. The Prime Minister, while inaugurating Fisheries Fortnight in 1995, made
this sudden announcement, thus technically rendering the NFMP licensing system
defunct.

5.3 Marine Fisheries Management Effort

Due to sufficient availability of freshwater fish in inland capture fisheries the people
were traditionally used to take freshwater fish and people did not like marine fish. As
a result marine fisheries did not receive much attention for development. However,
with scarcity of freshwater fish due to man made and natural causes compounded by
population growth and due to demand for fish and shrimp in foreign market, marine
fisheries drew attention for development. Government policy was therefore to
explore the resource and promote fishery and encourage private sector involvement
in marine fisheries. In order to know the status of marine fisheries, Government
assessed the fish stock and identified the fishing ground of Bay of Bengal through
exploratory surveys and studies.

Between 1958 and 1972 Department of Marine Fishery (DoMF) and BFDC had
conducted some surveys to: (i) determine the timing for exploitation of commercial
species and identify their area of concentration, (ii) obtain accurate information on
the reproductive cycle of the shrimp and commercial fish species, (iii) obtain
information on the potential and adequacy of species in the continental shelf areas,
and (iv) determine the feasibility of commercial exploitation of marine fishery
resources (Table 5.1).

Besides, government also established Bangladesh Fisheries Development
Corporation in1964 with the objective of developing fisheries industry. The
organization introduced deep sea fishing by trawler and mechanization of artisanal
coastal fishing and private sector was attracted with marine fishing industries. The
marine fisheries grew rapidly during 1970s and about 15 trawlers were in operation
in Bay of Bengal. Artisanal fishing in coastal area developed rapidly.

5.4 Conflict Between Fisheries Policy and Support Services

Since independence, Bangladesh policy has been guided by Five Year Plans (FYP),
written by the government with the exception of a Two Year Plan covering period
1978-80. The government of Bangladesh has looked to fisheries sector to increase
production, in order to improve nutrition, create employment and increase export
earning (Alam and Thomson, 2001). From 2003 the FYPs have been replaced by 3-

E-56

year rolling plan (TYRP) as a means of creating more flexibility via the monitoring
process of social and economic development (FSRFDS, 2003b).

Fish and rice are the two principal ingredients of the national diet, yet while rice
production has expanded considerably since independence; fisheries have not
achieved the same level of success. The 3rd FYP notes that whilst average
consumption of fish in 1996-63 was 33 gm per day, by 1979-80 it had dropped to 20
gm per day. It rose slightly to 21 gm five years later in 1984-85 and by the time
1997-2002 (5th FYP) was written it had again risen slightly to 25g. The failure to
achieve fisheries target is due to the decline in capture fishery landings as a result of
a combination of over-exploitation and habitat modifications/loss due to the
intensification of land use for agriculture.

Table 5.1 Resource Assessment Endeavour in the Bay of Bengal

Organization/year Results
Fisheries Training School, Detected mainly presence of rich planktons, enormous shrimp larvae and
Nagasaki Japan, 1958 (One plentiful commercial fishes. Sea bottom as well as water condition found
month survey) suitable for commercial fishing.
Fisheries Training School, Detected presence of rich planktons and sufficient shrimp larvae in the
Nagasaki Japan, 1960 (Four- waters. Sea bottom as well as water condition found excellent for commercial
month survey) fishing
Vessel Kinki Maru, Japanese Tested shrimp net and gill net in the estuaries of the Sudarbans, off coast of
team (One-year experimental Khulna, Barisal and Chittagong. Found that estuaries and river beds are not
fishing operation survey, 1960- suitable for trawling and mechanized gill netting due to infestation of under
61) water obstacles, uneven bottom, strong current and salinity declination. On
the other hand, bay of Bengal was observed to be abundant in commercial
species
Country team (during 1963-65) Traced plentiful existence of pelagic species through gill netting
Marine Fisheries department Overhung bottom trawl net was proved to be the suitable type of fishing gear
under supervision of FAO for trawling. Identified several rich fishing grounds
Expert (1962-66)
FAO-BFDC collaborative Identified fishing grounds namely, South Patches (6200 sq. km.) with
survey (1968-71) estimated standing stock of 11.4-16.0 tons per sq. mile; Middle Ground (4600
sq. km.) with estimated standing stock of 10.2–14.4 ton per sq. mile and
Swatch of no Ground (3800 sq. km.) with standing stock of 8.4-12.0 tons per
sq. mile. All these grounds are within the reach of small scale fishers
operating 9-15 meter long motorized boats fitted with 15-35 hp engines.
Annual exploitable demersal species was estimated to be 57,000 tons in
addition to the then 100,000 tons of marine landing without taking into
consideration the existence of pelagic species and shrimp.
MoFL-Japan Joint venture Trawled 4,200 sq. miles in 5259 hours of trawling. Of 4200 sq. miles, 3100
(1976-1977) sq. miles were considered to be economical for commercial shrimping.
Estimated annual sustainable yield was 200-4000 metric tons
Joint Bangladesh-Thai Explored information on average catch per hour, edible trash species
expedition (March 7-18, 1978) composition, condition of the river and sea bottom trawl and drift gill net in
addition to some oceanographic data such as temperature, salinity, dissolved
oxygen, pH etc. at different depths.
Bangladesh-Norway expedition The investigations covered the whole of shelf area of Bangladesh deeper than
(25 Nov-12 Dec, 1979 and 7 10 meter (10-200 meter depth cover 40,000 sq. km: area shallower than 10
Mar-24 May 1980) meter depth was about 24,000 sq. km). The survey indicated that standing
stock of demersal and pelagic fishes of Bangladesh were 150,000 and 60,000
metric tons respectively

Source: Extracted from Alam (1993)

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Although successive plans for fisheries and budgetary allocations were made in the
past, it is characterized by subsequent failures too in terms of achieving physical as
well as financial targets. For example, Table 5.2 shows that level of achievement of
physical target of fish production ranged from 63% to a maximum of 96% during the
past three decades. Achievement fish production targeted at the beginning of the 1st
FYP took 22 years. The target was achieved at the end of 4th FYP only. This dismal
scenario is also prevalent in the

Table 5.2 Targets and Achievements of Fisheries Production and Fisheries Budget

Fish production (million tones Budget allocation
(million Taka)
Five Year Plans
Targeted Achieved Targeted Achieved
1st FYP (1973-1978) 1.02 0.643 (63) 480.50 190.00 (40)
2-year Plan (1978-1980) 0.81 0.646 (80) 440.00 380.60 (87)
2nd FYP (1980-1985) 1.00 0.774 (77) 1740.00 1580.00 (93)
3rd FYP (1985-1990) 1.00 0.847 (85) 3500.00 1400.00 (25)
4th FYP (1990-1995) 1.20 1.020 (85) 7490.00 2900.00 (39)
2-year Plan (1995-1997) 1.37 1.310 (96) 1294.10 1086.00 (84)
5th FYP (1997-2002) 2.08 1.890 (91) 5861.80 4847.00 (83)
6th FYP (2002-2007) 2.45
Sources: Mazid (2002), FYP’s of the GOB.
Note: Figures within parentheses indicate percentage achievement

spending of the budgeted amount for the fisheries development. Several reasons have
been given for the failure to meet production targets and spend allocated funds;
reduced investment, lack of infrastructural facilities for culture of fish, organizational
weakness and environmental effects of irrigation and chemical use in crop
production (3rd FYP); lack of technical knowledge, fish seed, proper management,
disease control and suitable manpower (5th FYP); disruption of fish migratory routes,
non-compliance with fisheries legislation, short term leasing of open water bodies,
lack of good quality data to back up management plan, lack of agency coordination
and inadequate programme monitoring and accountability (6th FYP).

Fisheries also received less priority although as a sector in spite of its increasing
contribution over the years. It has received lees allocation. Hossain (2002) mentioned
that the share of fisheries sector to total public investment steadily decreased over the
years (for 1992-93 to 1998-99 period). Conversely, its share to GDP increased
gradually. As a result the estimate of investment bias (IB) index for fisheries sector
declined dramatically over time (IB index fallen from 0.16 in 1992-93 to 0.058 in
1998-99).

Fisheries credit also shows a dismal picture. For large scale fisheries establishments
(such as processing plants, feed mills, commercial fish farms etc.) bank credit for
fisheries is less problematic. But for small scale fish farmers and fishers it is a big
problem. Even it is available for those, lack of adequate amount as well as timely
disbursement are important constraints. One survey conducted on fish farmers in
Khulna and Cox’s Bazar reveals that 50% faced lack of capital as the major
constraint in shrimp culture (Rahman, 1990). Processing plant owners found it
difficult to get institutional credit for working capital; hatchery/nursery operators
found the credit process too complex and bureaucratic; and fish/shrimp farmers and

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fishermen often fail to qualify for institutional credit as they have no collateral.
Fishermen are usually ineligible for institutional credit for lack of collateral.

Over the years production has increased, but at the cost of inland aquaculture. The
inland capture fisheries in fact declined. The large scale use of agro-chemicals and
pesticides, development of unplanned FCD and FCDI projects obstructing the
migratory routes, the revenue earning and exploitative lease system of waterbodies,
over fishing by growing fishermen, siltation in river systems, poor implementation of
fisheries laws and so on are believed to be the reasons for declining fish production
particularly in the rivers and floodplains. While crop sectors historically received
priority in terms of allocations, subsidies and investment; fisheries have never been
supported like this. Moreover, too many institutional involvements hamper the
implementation of programmes. Ownership of waterbodies with one ministry and
implementation with other ministry also results in delay in programme
implementation. Moreover, the rural and political elites dominate the bid in the
auctioning of waterbodies. Programme implementation in fisheries by the poor
fishers of the community is often constrained. All these are happening very often
which do not support that fisheries sector received adequate attention by the public
authority.

5.5 The Bangladesh Poverty Reduction Strategy

The Government of Bangladesh has been engaged in the process of preparation of
Poverty Reduction Strategy Paper (PRSP) as required by the World Bank and the
IMF as an aid conditionality. Only highly indebted poor countries (HIPCs) and users
of Enhanced Structural Adjustment Facility (ESAF) of the IMF are supposed to be
required to produce a PRSP before they can seek new programme support from the
IMF or the World Bank. Bangladesh is not a HIPC, but as a least developed country
(LDC), it felt obligated to formulate a PRSP in the hope of getting future debt relief
or new soft loans from the two donor agencies (Islam, 2002). A “draft for
discussion” of the interim PRSP (I-PRSP) titled, Bangladesh: A national Strategy for
Economic growth and Poverty Reduction, had been floated in April as a step toward
that goal. Since preparing the I-PRSP in 2003, Bangladesh has for the first time
graduated to the league of countries that have attained “medium human
development” according to the Human Development report of the UNDP. AS
regards Bangladesh’s progress toward the Millennium Development Goals (MDGs),
the country is not only well ahead in several aspects of human development, but has
also been striding ahead in reducing poverty.

In moving from I-PRSP to PRSP, the objective is to articulate a medium-term socio-
economic framework supported by well-prioritized strategies to combat poverty and
to continue efforts to attain MDGs. The strategies for poverty alleviation by
implication are continuing ion nature. However, from an operational point of view,
the PRSP will attempt to implement the strategies for the period FY05 to FY07. The
medium term strategic agenda for Bangladesh for the goal of accelerated poverty
reduction is constituted of the following (Planning Commission, 2004):
Employment
Nutrition
Maternal Health

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Sanitation and Safe water
Quality Education (in primary, secondary and vocational)
Criminal justice, and
Local governance

5.5.1 Concept of Pro-poor Growth Strategy for Poverty Reduction

Government is very concerned about the reduction of poverty in general and
different sectors in particular. It has been realized that a sustained and high rate of
economic growth is essential for sustained poverty reduction. The impact of
economic growth on the pace and magnitude of poverty reduction depends to a large
extent on the nature of inequality of income arising from the very growth process.
Thus, the full impact of growth on poverty reduction is dissipated when the process
of economic growth is accompanied by worsening income distribution. The concept
of “pro-poor” growth strategy appears to point out the crucial association of growth
and inequality on the extent of poverty reduction. Adoption of a “pro-poor” growth
strategy is thus favoured over “growth maximization” as a means of faster achieving
faster decline of poverty.

5.5.2 Outlining the poverty reduction strategy

Bangladesh faces a triple challenge in building a road map for accelerated poverty
reduction: firstly, build on past achievements while preventing slippages, secondly,
address the multi-dimensionality of poverty through a strategic choice of priorities,
and , thirdly, unlock the agency potentials of the nation through an optimal mix of
public action, private initiatives and community mobilization. The policy triangle on
which such a road map broadly rests is constituted of pro-poor economic growth,
human development and governance. Bangladesh aims at pursuing accelerated
poverty reduction goals through eight specific avenues:

1. supportive macroeconomics to ensure rapid growth with particular focus on
stable macroeconomic balances, improved regulatory environment, higher
private investment and increased inflow of FDIs, effective trade and
competition policies, and, poor and gender sensitive budgetary process;
2. choice of critical sectors to maximize pro-poor benefits from the growth
process with special emphasis on the rural, agricultural, informal and SME
sectors, improved connectivity through rural electrification, roads and
telecommunications;
3. safety net measures to protect the poor, especially women, against anticipate
and unanticipated income/consumption shocks through targeted and other
efforts;
4. human development of the poor for raising their capability through
education, health, nutrition, and social intervention;
5. participation and empowerment of the poor especially women, and other
disadvantaged and marginalized groups such as disabled, ethnic minorities,
ecologically vulnerable;
6. promoting good governance through improving implementation capacity,
promoting local governance, tackling corruption, enhancing access to justice
for the poor, and improving sectoral governance;
7. improving service-delivery in the areas of basic needs; and

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8. caring for environment and its sustainability

5.5.3 The National Strategy for Accelerated Poverty Reduction (NSAPR) for
fisheries

The NSAPR documented that inland open water capture fisheries have declined
substantially and losses in output from the source have adversely affected the poor
who used to earn a livelihood from subsistence fishing in the floodplain. In the case
of shrimp, the poor have lost livelihood opportunities over time as their small pieces
of land were either taken over by rich investors for shrimp enclosures or flooded,
although they gained some employment in non-farm activities related to shrimp
industry. The rapid growth in inland culture fishery at about 14% per annum has
largely offset the loss in the capture fishery (Planning Commission 2004). The poor
will benefit from pond fishery through associated employment in fish production,
fish catching, processing and marketing activities. Especially, home-based pond
aquaculture involves women and children. The recent innovation of polyculture in
rice fields has opened up further opportunities for small and marginal farmers to
exploit whatever little land they have in growing fish in rice plots concurrently and
alternately. However, the sector suffers from shortage of quality fish seeds for which
brood fish stock, hatchery and nursery management has to be addressed seriously. In
order to address the issues mentioned above, the NSAPR strategies are as follows:

The government is committed to accelerate fisheries sector growth. The overall
strategy of fishery sector development will envisage intensification of aquaculture by
species and ecosystems, addition of export oriented species, product diversification
and value addition, the development of appropriate marketing infrastructure. The
capacity of DoF will be redefined and strengthened so that it can consolidate and
continue support inland aquaculture through intensification of culture fisheries with
improved knowledge of fish culture, brood fish stock, quality fingerlings and feeds.
The underlying strategy will be to promote a dynamic rural aquaculture, involving
the key actors among NGOs and private entrepreneurs, i.e. fish farmers, hatchery and
nursery operators, fingerling vendors, feed manufacturers, fish processors. DoF will
preserve, patronize and make more productive use inland capture fishery through
community based participation of fishermen and fishery related stakeholders.
Fisheries research will be upgraded to continue flow of technology generation.
Various policies of other ministries impinge upon the fishery sector development
because these policies regulate the availability of, access to and use pattern of open
water bodies. These will be coordinated and a necessary legal framework will be
formulated. Specific programmes will be undertaken to maintain water bodies and
make them available for improved aquaculture. Development of waterbodies should
be planned by BWDB and LGED in coordination with DoF and DLS. The strategic
plan for the implementation of National Fisheries Policy will be finalized so as to
increase productivity of scare fishery resources and also to ensure access of poor and
fishermen community to waterbodies. The plan of action will address the
development of inland and coastal fishery management, education, research and
extension services, organizational as well as commercial policies 9i.e. marketing,
processing, quality control, export and transportation0. Especially quality assurance
in fish harvesting and processing will be emphasized.`

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Human resource development will be given priority by the DoF, while skill
development with respect to fish production, processing and marketing at local level
will be accomplished through public sector agencies, NGOs and private sectors. The
specific road map indicating the type of intervention to be taken is shown in table
5.3.

5.6 The Different Stakeholders and their Roles in Fisheries

Fisheries sector of Bangladesh has numerous stakeholders, of which government
plays a vital role in terms of planning, research, promotion, development,
management, administration and regulation. The government department/agencies
involved are MoFL. MoA, MoE, MoW, MoE, LGED, DoF, BFRI, BFDC. BARC,
and MoFE. The non-government entities are NGOs, private sectors, communities,
private money lenders and so on. Besides, Banks are also involved in the financing
of the sector.

The crucial player ministries are MoFL. MoL, MoY, and MoFE. The MoFL is the
key ministry for implementing the fisheries activities through DoF. On the contrary,
the MoL owns all lands and waterbodies of Bangladesh. Thus permission, green
signals and finally, clearance must come to MoFL from MoL for management of any
waterbodies. Similarly, there are ministries such as MoFE also manages waterbodies
under their jurisdiction. These ministries virtually have no regard with respect to
management and administration of waterbodies. The main area of non-cooperation
is ownership of land. No agency wants to surrender the ownership to the MoFL.
Likewise, financing of any stated government programme for fisheries (either ADP,
or FYP must pass MoF clearance which always prioritizes the activities. Thus, the
implementation often is delayed. No FYPs could spend the allocated amount of
money during the plan period. Moreover, the allocation in fisheries had been
historically very small. Hossain (2002) showed that government’s investment bias to
agriculture sector in general and fisheries sector in particular had been negative. The
performance of fisheries institutions had been poor. Institutional weaknesses were
recognized by the Planning Commission and highlighted in the IDA fisheries sub-
sectors review of 1983 which recommended remedial action (Planning Commission,
1983). A UNDP financed FAO mission and a World Bank Mission (1986) examined
the weakness and made proposals to strengthen the DoF and related agencies
(Everett and Chowdhury, 1985).

NGOs have been playing a very vital role in disseminating particularly aquaculture
technologies all over the country. They have also been involved in the participatory
community based fisheries management projects. Many of these projects (such as
CBFM of the WorldFish Center, MACH project of the Winrock International, Fourth
Fisheries Project of the DoF, MAEP of the DANIDA, OLP I & II of the IFAD) have
created positive impact in terms of biological fisheries management and
improvement of livelihoods.

In the fisheries sector tremendous growth of production has taken place. Aquaculture
achieved top most growth. But since this is waterbody based (ponds and ditches)
activities, major benefits accrue to those who own pond resources. However, some
benefits have trickled down to poor resource deprivers as well through their
participation in stocked ox-bow lakes. It is likely that growth in aquaculture widened

E-62

inequalities. In the inland open waters, since leasing of waterbodies as part of
management of inland are in practice, it is likely that the affluent and the elites were
able to give the highest bid in the auction process and reaped the benefits of
government waterbodies. It is the community based projects that provided equitable
distribution of income. Had the coverage of the community based fisheries
management project been scaled up, equity in the distribution of income would have
been increasing.

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Table 5.3 Policy Matrix for the Fisheries Sector as outlined in the PRSP

Strategic Goal Key targets/Activities Actions Taken PRSP Policy Agenda Future Priorities Responsibilities/Stakehold
(FY05-07) ers)
Increasing * Increase fish yield * National Fisheries *Complete strategic plan * Amend the national fisheries policy and create * BFRI, DoF, MoL, MoWR,
productivity in from pond polyculture Policy is formulated preparation an enabling framework community based
inland * Cover 90% of ponds *The strategic plan for *Consolidate MAEP *Redefine and strengthen DoF capacity organizations, fishers
aquaculture for fish culture implementation of the experience *Evolve culture techniques and species for very households, and women
policy is under *Further strengthen fishery small ponds lease holders
finalization research and extension *Promote a dynamic aquaculture involving NGO
and private sector actors
Increasing *Increase fish output * National Fisheries *Consolidate experience * Enact laws and institute regulatory framework *MoF, BFRI, DoF. MoL,
productivity in from semi-closed and Policy is formulated and formulate regulatory with clearly assigned responsibility MoWR, MoLaw, MoEF
inland capture closed water bodies *The strategic plan for framework *Reform mandate for of BFRI for new type of
fishery *Reclaim and improve implementation of the *Continue handover of research
fish habitats and policy is under water bodies * Involve genuine fishers and other stakeholders
sanctuaries finalization *Promote MACH type and other stakeholders through community-
interventions based approach.
Raising income *Increase income from *Training programme *Continue developing low *Develop and disseminate low cost improved *BFRI, DoF, Fish traders,
of the poor cage, pen seed and fry on cage and pen cost and improved fish packaging and transport systems. Community-based
fishers production culture, seed and fry processing, packaging and *Reduce spoilage through improvement of organizations, NGOs
production are transportation systems marketing
ongoing
Promoting rice *Introduce fish *The strategy is *The strategy is to be *Increase fish production without permanently *DAE, DoF, NGO, Private
cum fish culture production in rice land emphasized I the popularised converting rice lands to fish ponds sector
concurrently and existing fishery *Rice cum fish culture is *Encourage and train resource poor farmers to
alternately research and extension to be emphasized in practice fish culture in rice plots
policies fishery curricula and
mainstream training
programme

Strengthening *Accelerate fish *Research outfits exist *Further financial support *Target promotion of rural aquaculture as pro- MoFL, BFRI, MoWR,
fisheries research production in BFRI, BAU and is to be provided for poor growth strategy Universities, NGOs and
and extension other universities fisheries research [private Sectors
Source: Planning Commission (2004).

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Ahmed, Q.K., S.A. Hye and S.S. Habib Ullah (2002). Bangladesh: The Draft
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FSRFDS (2003b). The Future Fisheries: Policy Frameworks, edited by Professor
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APPENDIX-A

Table A.1.1 Population and its growth over time

Factors 1981 1991 2001 2004*
Population 89.9 mil. 111.5 mil. 130.03 mil 135.2 mil.
Population (Growth) 2.31% 2.04% 1.41% 1.5%
MoF (2004). Bangladesh Economic Survey 2004 (Bengali version), p. xvii, 252
*estimated

Table A.1.2 Density of Coastal Areas in Bangladesh

Coastal Districts Population Area (sq kilometer)
Barguna 845060 1832
Barishal 2348440 2791
Bhola 1703200 3403
Jhalokati 692680 758
Patuakhali 1464800 3205
Pirojpur 1099780 1308
Barishal Division
Chittagong 6543860 5283
Cox's Bazar 1759560 2492
Feni 1205980 3601
Lakshmipur 1486540 1456
Noakhali 2570640 928
Chittagong Division
Bagerhat 1516820 3959
Khulna 2357940 4395
Satkhira 1845120 3858
Khulna Division
Total in Coastal Districts 27440420 39269
Density (per sq kilometer) 699
Percentage of Total Population living in
22.2
costal districts (%)

Table A.1.3 Gross domestic product, sectoral share and growth rate at constant
prices (1995-96) by broad industry sector
Sl.
Broad 1996-
No 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04
sector 97
.
Gross Domestic Product (million Taka)
Agricultur
1 434455 448337 469608 504270 520096 534825 536130 550520
e
2 Industry 420054 454987 477370 506804 544538 577944 622208 670180
106479 112615
3 Services 825020 865952 910625 960513 1013598 1281110
7 2
Share (%)
Agricultur
1 25.87 25.34 25.28 25.58 25.03 24.56 23.47 22.83
e
2 Industry 25.01 25.72 25.72 25.71 26.20 26.54 27.24 27.80
3 Services 49.12 48.94 49.02 48.72 48.73 48.90 49.30 49.37

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Source: BBS (2000, 2005) Statistical Pocketbook 2001 and ,2003 BBS (200, 2005); MoF (2004) Bangladesh
Economic Survey 2004

Table A.1.4 Share of crop, forestry, livestock and fishery sub-sectors to agricultural
GDP
Percentage share
Year Crop Forestry Livestock Fishery All sector
1972/73 75.71 4.75 8.54 10.99 100.00
1973/74 80.03 4.16 7.56 8.24 100.00
1974/75 85.73 2.94 5.26 6.07 100.00
1975/76 78.68 3.65 7.56 10.11 100.00
1976/77 74.83 3.95 8.37 12.84 100.00
1977/78 74.04 5.63 10.76 9.57 100.00
1978/79 71.78 6.03 13.32 8.87 100.00
1979/80 73.36 5.21 13.93 7.50 100.00
1980/81 73.47 6.13 13.05 7.36 100.00
1981/82 77.91 5.38 10.43 6.28 100.00
1982/83 76.89 6.26 10.87 5.98 100.00
1983/84 76.68 7.01 9.87 6.44 100.00
1984/85 74.37 5.74 12.85 7.04 100.00
1985/86 74.05 10.08 8.18 7.70 100.00
1986/87 75.07 9.35 7.38 8.20 100.00
1987/88 72.38 10.95 7.72 8.95 100.00
1988/89 71.91 9.86 8.67 9.57 100.00
1989/90 71.46 9.76 9.31 9.47 100.00
1990/91 72.46 9.53 8.84 9.17 100.00
1991/92 71.20 9.92 9.00 9.88 100.00
1992/93 63.93 11.23 10.94 13.89 100.00
1993/94 61.35 11.03 11.80 15.82 100.00
1994/95 62.30 10.78 11.17 15.75 100.00
1995/96 60.31 11.04 12.02 16.63 100.00
1996/97 59.10 11.06 12.47 17.37 100.00
1997/98 57.16 11.29 13.01 18.53 100.00
1998/99 57.13 11.19 13.31 18.37 100.00
1999/00 56.25 11.09 13.97 18.69 100.00
2000/01 55.95 10.86 14.24 18.95 100.00
2001/02 56.59 8.33 11.88 23.20 100.00
2002/03 57.13 8.41 11.85 22.61 100.00
2003/04 56.95 8.54 11.82 22.69 100.00
Source: BBS (various issues): Statistical Yearbook of Bangladesh, various issues
MoF (2004) Bangladesh Economic Survey 2004

E-71

Table A.1.5 Trend in Unemployment Rate in Bangladesh

LFS LFS LFS LFS
1989 1990-91 1995-96 1999-2000

Both Sex

Both Sex

Both Sex

Both Sex
Female

Female

Female

Female
Male

Male

Male

Male
Measure

Unemployment Rate
(excluding under 1.2 1.3 1 1.9 2 1.9 2.5 2.7 2.3 3.7 3.6 3.8
employment)(%)

Table A.1.6 Balance of payment situation over time

1996- 1997- 1998- 1999- 2000- 2001- 2002- 2002-03 2003-04
97 98 99 00 01 02 03 (July to (July to
Feb) Feb)
a. Trade Balance -2113 -1669 -1934 -1865 -2011 -1768 -2207 -916 -1203
b. Services -552 -570 -603 -645 -914 -499 -688 -490 -438
c. Income -107 -100 -135 -221 -264 -319 -195 -115 -159
Current Transfer 1907 1876 2195 2394 2171 2826 3418 2191 2428
Current Account -865 -463 -477 -337 -1018 240 328 670 628
Balance
Capital Account 598 445 387 561 432 410 392 140 74
Financial -57 160 -370 -170 352 114 218 -267 -284
Account
Errors & 180 -88 267 125 -47 -356 -123 -329 -166
Omissions
Total Balance -144 54 -193 179 -281 408 815 214 252
MoF (2004): Bangladesh Economic Survey 2004

Table A.1.7 Trends in Human Development Index

HDI Country Trend in Human Development Index Value
Index 1975 1980 1985 1990 1995 2000 2002
138 Bangladesh 0.345 0.363 0.388 0.417 0.445 0.497 0.509
Growth Rate of
HDI of Bangladesh
(%) 5.22 6.89 7.47 6.71 11.69 2.41
84 Best Performer in
South Asia 0.752
(Maldives)
141 Worst Performer in
South Asia 0.346 0.373 0.405 0.444 0.473 0.497
(Pakistan)

1 Norway 0.866 0.866 0.897 0.911 0.935 0.954 0.956
9 Japan 0.854 0.879 0.894 0.910 0.924 0.934 0.938

E-72

Table A.1.8 Position of life expectancy, gross enrolment ratio and GDP per capita of
Bangladesh

Life expectancy at birth (years) Combined primary, GDP per capita
2002 secondary and tertiary gross (PPP US$) 2002
enrolment ratio (%)
2001/2002

1. Japan (81.5) 1. Sweden (114) 1. Luxembourg (61,190)
2. Sweden (80.0) 2. Australia (113) 2. Norway (36,600)
3. Hong Kong, China (SAR) (79.9) 3. United Kingdom (113) 3. Ireland (36,360)
123. Mongolia (63.7) 137. Cameroon (56) 135. Sudan (1,820)
136. Lao People' Dem. Rep.
s
124. Guyana (63.2) 138. Guatemala (56) (1,720)
125. Bhutan (63.0) 139. India (55) 137. Mongolia (1,710)
126. Bangladesh (61.1) 140. Bangladesh (54) 138. Bangladesh (1,700)
177. Zambia (32.7) 176. Niger (19) 175. Sierra Leone (520)

E-73

APPENDIX-B

B.2.1 Method of Poverty Estimation

With the CBN method, poverty lines represent the level of per capita expenditure, at
which the members of households can be expected to meet their basic needs (food
consumption to meet their caloric requirement, but also non-food consumption). To
make the estimate comparable over time, CBN poverty lines were first estimated for
a base year, chosen to be 1991-92, and then updated to 1995-96 and 2000 for
changes in the cost of living using a price index. Price indices for updating the 1991-
92 CBN poverty lines to 1995-96 and 2000 were derived by combining price
information available in the HES (Household Expenditure Survey) data sets and the
non-food CPI. The HES data provide price information on food items and fuels that
account for approximately two-thirds of the total household expenditure. Inflation of
non-foods that cannot be calculated from HES surveys was estimated by the non-
food component of the CPI. As prices of some goods and services may vary between
geographical areas in Bangladesh, the HES-based Tornqvist price indices were
derived separately for each of the 14 main geographical regions. A weighted average
of these and non-food CPI (disaggregated by urban and rural sectors) was then taken
to derive the 14 region-specific cost-of-living indices for 1995-96 and 2000. These
composite price indices were then used to update the 1991-92 CBN poverty lines to
1995-96 and 2000.

Three steps were followed for estimating what is cost of a household to meet its basic
needs in the base year. First, the cost of a fixed food bundle was estimated. The
bundle consists of eleven items: rice, wheat, pulses, milk, oil, meat, freshwater fish,
potato, other vegetables, sugar, and fruits. It provides minimal nutritional
requirements corresponding to 2,122 kcal per day per person, the same household
used to identify the absolute poor with the direct caloric intake method. The second
step consisted of computing two non-food allowances for non-food consumption.
The third step in the estimation poverty lines consisted simply in adding to the food
poverty lines of the lower and upper non-food allowances to yield the lower and
upper poverty lines for each of the 14 geographical areas. Thus within each area, the
estimates of the cost of basic needs are the same with the lower and upper poverty
lines. The difference between the two lines is due to the differences in estimation of
the allowances for non-food consumption. The lower poverty line incorporates a
minimal allowance for non-food good (the typical non-food spending of those who
could just afford the food requirement) while the upper poverty line makes a more
generous allowance (the typical non-food spending of those who just attained the
food requirement).

E-74

Table B.2.2: Extent of income inequalities as represented by Gini Coefficients

Household income group
2000 1995-96 1991-92 1988-89 1985-86 1983-84
and Gini Coefficient
National
Lowest 5% 0.92 0.88 1.03 1.06 1.18 1.17
Top 5% 28.66 23.62 18.85 20.51 21.35 18.30
Gini Coefficient 0.417 0.432 0.388 0.379 0.379 0.360
Rural
Lowest 5% 1.06 1.00 1.07 1.10 1.23 1.19
Top 5% 24.12 19.73 17.80 19.81 21.36 18.14
Urban
Lowest 5% 0.77 0.74 1.09 1.12 1.2 1.18
Top 5% 32.40 24.30 19.42 20.02 18.04 16.93
Statistical Yearbook of Bangladesh, published in Nov, 2004

E-75

APPENDIX-C

Table C.4.1 Fish production trend of Bangladesh, 1971-2004 (in ‘000 ton)

Year Inland Marine Total Year Inland Marine Total
1971-72 729 85 814 1990-91 654 242 896
1972-73 731 87 818 1991-92 706 246 952
1973-74 732 88 820 1992-93 770 251 1021
1974-75 734 90 824 1993-94 838 253 1091
1975-76 732 89 821 1994-95 908 265 1173
1976-77 541 100 641 1995-96 988 270 1258
1977-78 533 110 643 1996-97 1086 275 1361
1978-79 529 116 645 1997-98 1191 273 1464
1979-80 524 122 646 1998-99 1243 310 1553
1980-81 524 126 650 1999-00 1328 334 1662
1981-82 556 130 686 2000-01 1402 379 1781
1982-83 584 142 726 2001-02 1475 416 1891
1983-84 589 165 754 2002-03 1566 432 1998
1984-85 586 188 774 2003-04 1647 455 2102
1985-86 587 207 794
1986-87 597 218 815
1987-88 600 228 828
1988-89 608 233 841
1989-90 617 239 856
Source: Mazid (2002), DoF (1984-2005)

E-76

Table C.4.2 Table Fish production from different fisheries over the years

Industrial

Artisanal
Rivers &
estuaries

Country
Sundar-

Shrimp
capture

Marine
trawler
culture

fishing
Kaptai

_Total
Inland

Inland

Inland
Lands

Ponds
Flood

Baors
Beels

Lake
Year

farm
total

total

total

total
ban
1983-84 207766 7783 51373 4057 200616 471595 107944 862 8219 117025 588620 14500 150382 164882 753502
1984-85 213057 6825 45893 2700 194130 462605 111567 962 11282 123811 586415 12440 175123 187563 773979
1985-86 199600 7112 45258 2433 187396 441799 123804 968 19951 144723 586522 11898 195503 207401 793923
1986-87 195117 6035 42077 3981 183796 431006 142876 1174 22050 166100 597106 12356 205223 217579 814685
1987-88 183817 8066 45610 4068 182037 423598 149423 1254 25248 175925 599523 10395 217187 227582 827105
1988-89 181140 6416 47019 3439 186126 424140 155012 1321 27172 183505 607645 10353 222928 233281 840926
1989-90 173410 6393 46594 3713 193762 423872 163730 1357 27505 192592 616464 11379 227684 239063 855527
1990-01 135355 6651 47923 4392 249083 443400 181018 1544 28431 210993 654397 8760 232778 241538 895935
1991-92 124843 6297 49201 4216 295185 479642 195034 1682 30147 226863 706605 9623 235851 245474 952079
1992-93 138746 6939 53019 4142 329573 532419 202167 1803 33773 237743 770162 12227 238265 250492 1020654
1993-94 143425 7127 55592 6635 360597 573376 222542 2201 39447 264190 837566 12454 240590 253044 1090610
1994-95 152782 6951 58298 5556 367558 591145 267282 2460 47331 317073 908218 11715 252935 264650 1172868
1995-96 165637 7265 60768 6148 369333 609151 307974 2764 68349 379087 988238 11959 257743 269702 1257940
1996-97 159660 9225 62798 5764 362453 599900 403830 3014 79020 485864 1085764 13564 261140 274704 1380468
1997-98 156894 7031 67812 5932 378280 615949 483416 3378 88018 574812 1190761 15273 257545 272818 1463579
1998-99 151309 11134 69850 6689 410436 649418 499590 3536 90076 593202 1242620 15818 293979 309797 1552417
1999-00 154335 11648 72825 6852 424805 670465 561050 3622 92448 657120 1327585 16304 317495 333799 1661384
2000-01 150129 12035 74527 7051 445178 688920 615825 3801 93014 712640 1401560 23901 355596 379497 1781057
2001-02 143592 12345 76101 7247 449150 688435 685107 3892 97605 786604 1475039 25165 390255 415420 1890459
2002-03 137848 13884 75460 7025 475116 709333 752054 4098 100894 856956 1566289 27954 403954 431908 1998197
2003-04 137337 15242 74328 7238 497922 732067 795810 4282 114660 914752 1646819 32606 422601 455207 2102026
Source: DoF: Fish Catch Statistics/ Yearbook of Fisheries Statistics (various issues)

E-77

Table C.4.3 List of Projects involving Communities in Inland Fisheries

Project Name Funding Agencies Implementing Partners Schedulin
g
Improved Management of Openwater Ford Foundation DoF, ICLASRM, BRAC, 1991-
Fisheries (IMOF) Proshika and Friends in 1994
Village Development
Ox-bow lakes Small Scale Fishermen’s IFAD and DoF and BRAC 1991-
Project- Phase II (OLP II) DANIDA 1997
Compartmentalization Pilot Project (CPP) GOB, FRG and BWDB and a number of 1991-
the Dutch NGOs at different times 2000
Community Based Fisheries Development Ford Foundation CNRS and Proshika 1994-
and Habitat restoration Project, Phase I 1997
Community Based Fisheries management I Ford Foundation DoF, ICLARM, Caritas, 1995-
Project (CBFM-I) Proshika, BRAC and 1999
Banchte Shekha
Management of Aquatic Ecosystems USAID Winrock, DoF, BCAS, 1998-
through Community Husbandry Project CNRS, Caritas 2005
(MACH)
Dampara Water Improvement Project GoB and CIDA BWDB, DoF, NACOM and 1998-
Tara 2001
Fourth Fisheries Project (FFP) GoB, IDA, GEF, DoF, BWDB, LGED, NGOs 1999-
DFID and and local fishing 2004
Beneficiaries communities
Sustainable Environment Management UNDP DoF, IUCN, CNRS, 2000-
Programme (Fisheries Component) NAVOM and BCAS 2003
Community Based Fisheries Management DFID DoF, ICLARM, Caritas, 1995-
II Project (CBFM-II) Proshika, BRAC, CRED, 1999
BS, FemCom, BELA, SDC,
GHARONI, SDC, SHISUK,
and beneficiaries
Community Based Resources Management GoB and IFAD LGED, MoL, DoF, DAE, 2003-
Project (Fisheries Component) DoL, BKB, and NGOs 20014
Source: Huda (2003)

78

C.4.4 Fisheries Regulations and Enforcement Program

There are some important fishery related acts and ordinance in Bangladesh. These
legislations cover all aspects of the fisheries sector from capture fisheries to fish
marketing. At present management of fishery is regulated by the following laws and
rules:

Laws

I) The Canals Act, 1864
II) The Irrigation Act, 1876
III) The Private Fisheries Protection Act, 1889
IV) The Agriculture and Sanitary Improvement Act, 1920
V) The Forest Act, 1927
VI) The Tanks Improvement Act, 1939
VII) The Non- Agricultural Tenancy Act, 1947
VIII) The Acquisition of Wasteland Act, 1950
IX) The State Acquisition and Tenancy Act, 1950
X) The Protection and Conservation of Fish Act, 1950
XI) The Embankment and Drainage Act, 1952
XII) The Cultivable Waste Land (Utilization) Ordinance, 1959
XIII) The Agriculture Pest Ordinance, 1962
XIV) The Factories Act, 1965
XV) The Agriculture Pest Ordinance, 1971
XVI) The Constitution of Bangladesh –1972
XVII) The Bangladesh Water and Power Development board Order, 1972
XVIII) The Bangladesh Fisheries Development corporation Act, 1973
XIX) The Territorial Water and Maritime Zones Act, 1974
XX) The Marine Fisheries Ordinance, 1983
XXI) The Fish and Fish Products (inspection and Quality control) Ordinance, 1983
XXII) The Local Government (Union Parishad) Ordinance, 1983
XXIII) The Fisheries Research Institute Ordinance, 1984
XXIV) The Land Reforms Ordinance, 1984
XXV) The Land Reform Board Act, 1989
XXVI) The Shrimp Cultivation Taxation Act, 1992
XXVII) The Environment Conservation Act, 1995
XXVIII) The Open Space Protection Act, 2000

Rules

I) Territorial Water and Maritime Zones Rules, 1977
II) Marine Fisheries rules, 1983
III) The Protection and Conservation of Fish rules, 1985
IV) Environment Conservation Rules, 1997
V) The Fish and Fish Products (inspection and Quality control) Rules, 1997

Policies

I) Land Management Manual, 1990
II) Industrial Policy, 1991

79

III) National Environment Management Action Plan, 1995
IV) New Agriculture Extension Policy, 1996
V) National Fish Policy, 1998
VI) Water Policy, 1999
VII) Land Use Policy, 2001
VIII) New Fisheries Management Policy, 1986

All vessels and gears used for capturing fish must be licensed under the provision of
Marine Fisheries Ordinance, 1983. A maximum fine of Taka 100,000 or any
imprisonment term not three years or to both is provided for in the ordinance as a
penalty for illegal activities. In addition to that court may order the forfeiture of the
fishing vessels and gears in addition to any other penalty imposed. The penalties are
mainly imposed to discourage the fishers from committing any offence.

In exercise of the powers conferred by section 5.5 of the Marine Fisheries Ordinance,
1983, the government made the following rules, which is called The Marine
Fisheries Rules, 1983. This became the basic rules for managing fisheries in
Bangladesh. According to the regulation all the traditional and industrial gear
operators have to comply with following regulation.

1. Prohibited method of fishing

a) All the fishing vessels shall use mesh sizes of the following dimension:
i) For shrimp trawl net (Boom) with low opening, the minimum mesh size
shall be 45mm
at the cod end.
ii) For fish trawl net, mesh size at the cod end shall be 60 mm.
iii) For large mesh drift net (LMD), the minimum mesh size shall be 200mm.
iv) For small mesh drift net (SMD), the minimum mesh size shall be 100 mm.
v) For set bag net (Behundi net), the minimum mesh size at the cod end shall
be 30 mm.

b) Fishing with any kind of explosives, poison and other noxious substances is
totally banned.
c) Fishing with electrocuting the marine species of any type is banned

2) Fishing, dredging, etc, prohibited in marine reserve zone declared by the
government

3) Area of fishing: The gears can be used only in designated water as follows:
a) Areas of fishing with trawlers are earmarked for operation beyond 40
meter of depth at its highest tide.
b) Area of fishing of the gears such as set bag net, hooks and lines, drift
net (SMD &LMD) up to the depth of 40 meter at its highest tide

80

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