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Conservation of the Sundarbans in Bangladesh Through Sustainable Shrimp Aquaculture

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Conservation of the Sundarbans in Bangladesh Through Sustainable Shrimp Aquaculture Conservation of the Sundarbans in Bangladesh through Sustainable Shrimp Aquaculture Soham G. Sen March 14, 2010 Client: Director, Nishorgo Project, Department of Forestry – Bangladesh SYPA Section Advisor: Michael Walton Technical Advisor: Rohini Pande Second Year Policy Analysis Paper submitted in fulfillment of the requirements for the degree of Master of Public Administration in International Development Acknowledgments No project of this kind is ever possible without the kindness and support of many people and this one was no exception. I benefited tremendously from the guidance and encouragement of my wonderful advisors at the Harvard Kennedy School. Particular thanks go to my SYPA advisors Michael Walton and Rohini Pande. I must also mention in gratitude Matt Andrews, my academic advisor, and Lant Pritchett who stepped in whenever asked in the role of general advisor. I was also fortunate indeed to have the support of several kind people at the World Bank particularly Ernesto Sanchez-Triana in Washington who pointed me in the direction of the Sundarbans and Shakil Ahmed Ferdausi, in Dhaka, who kindly hosted me during my field visit to Bangladesh. I cannot name all the Bank staff who generously shared their time and insights, but I must mention the tireless work of Nadia Sharmin who arranged my meetings in Dhaka and my journey to the Sundarbans. There were again too many government officials, statisticians, shrimp farmers, and businessmen to thank in Bangladesh, but I would like to express my appreciation generally to all who made the time to speak with me and bore patiently with my anglicized Bengali. A special thanks to the people on the edge of the forest. It was an honor to be allowed to peek into your lives and work, and I hope our paths cross again someday in a better future. Next, I would like to acknowledge the generous support from the Ash Institute for Democratic Governance and Innovation at the Harvard Kennedy School which made the field visit possible. Finally, any list of acknowledgement would be incomplete without a kind word of thanks to all those who help in ways as important but perhaps less direct. Thanks to my fellow MPA/IDs and HKS colleagues who listened, advised, or poured drinks throughout the process. And Carol Finney, MPA/ID program director extraordinaire, deserves a general thanks for everything MPA/ID. Last but certainly not least, a warm note of gratitude to my mom, dad, and sister: without you none of this would have been possible. While the guidance and advice I have received has been extraordinary and flawless, the work below is certainly not. It has been a grand exercise in advancing my own learning if not producing outputs valuable to others; wherever it falls short, it does so for my faults alone. i Table of Contents I. Executive Summary ............................................................................................................................ 1 II. The Need for a New Approach to Managing the Sundarbans: Thinking Outside of the Forest .............. 2 A. Importance of the Sundarbans and the Case for Conservation ..................................................... 2 B. The Command and Control Approach to Sundarbans Management: Not Enough ......................... 5 C. Causes of Degradation Inside the Sundarbans from Outside the Forest ........................................ 7 D. Why the Forest Department should Focus on Poverty .................................................................. 9 E. What can be done? Motivating Assumptions ............................................................................. 11 III. The Promise of Shrimp Aquaculture .................................................................................................. 12 A. The Returns to Shrimp Aquaculture ........................................................................................... 12 B. The International Market for Shrimp .......................................................................................... 13 C. Shrimp Industry in Bangladesh ................................................................................................... 14 D. Degradation Continued Despite Shrimp Aquaculture ................................................................. 15 IV. Sundarbans Management and the Nishorgo Program ....................................................................... 16 A. Public Value and Jurisdiction ...................................................................................................... 16 B. Technical and Administrative Capacity ....................................................................................... 17 C. Political and Institutional Environment....................................................................................... 18 V. Why Shrimp Aquaculture has not Delivered ...................................................................................... 19 A. Uneven Distribution of Employment and Wages ........................................................................ 19 B. Direct and Indirect Impacts of Shrimp Production on the Sundarbans ........................................ 29 VI. Fixing a Broken Promise: Towards Sustainable Aquaculture .............................................................. 32 A. What Can the Nishorgo Project Do? ........................................................................................... 32 B. Considerations in Promoting a Switch to Golda Production ........................................................ 36 C. How to Switch from Bagda to Golda? Policy Options .................................................................. 41 VII. Appendix ....................................................................................................................................... 44 A. SYPA Table ................................................................................................................................. 44 B. Estimating the Implications of Input Subsidy .............................................................................. 44 C. Field Visit to Bangladesh ............................................................................................................ 47 D. Additional Figures and Charts .................................................................................................... 48 E. Bibliography ............................................................................................................................... 51 ii Table of Figures Figure 1 - Inside the Sundarbans .............................................................................................................. 2 Figure 2 - The Sundarbans in Bangladesh (CEGIS 2006) ............................................................................ 3 Figure 3 - Tree Species in the Sundarbans (1995) ..................................................................................... 4 Figure 4 - Bangladesh Protect Areas Compared to Neighbors and World (Source: UNEP) ......................... 6 Figure 5 - Protected Areas of Bangladesh................................................................................................. 6 Figure 6 - Tree coverage (Iftekar and Islam 2004) .................................................................................... 7 Figure 7 - Trees per hectare (FAO 2000) ................................................................................................... 7 Figure 8 - Changes in Forest Composition (CEGIS 2006) ........................................................................... 7 Figure 9 - Change in Illegal Felling in the Sundarbans (Bangladesh FD) ..................................................... 8 Figure 10 - The Districts Containing the Sundarbans .............................................................................. 10 Figure 11 - Population Growth and Livelihoods in the Impact Zone ........................................................ 10 Figure 12 - Returns from Shrimp, Rice, and Wage Labor ........................................................................ 13 Figure 13 - Volume of Shrimp Imports 1950-2000 .................................................................................. 13 Figure 14 - Quantity and Value of Shrimp Produced ............................................................................... 13 Figure 15 - Price of Shrimp 1990 – 2004 (FAO) ....................................................................................... 14 Figure 16 - The Rise of Frozen Shrimp Exports to Bangladesh (DoF, 2001) .............................................. 15 Figure 17 - Productivity (kg/ha).............................................................................................................. 15 Figure 18 – Shrimp Area Khulna ............................................................................................................. 15 Figure 19 – Types of Shrimp Produced ................................................................................................... 15 Figure 20 - MOEF in the Bangladesh Budget (Source: Bangladesh Ministry of Finance, Author’s Calculations) .......................................................................................................................................... 18 Figure 21 -- Value Chain Diagram (Souce: USAID) ................................................................................... 20 Figure 22 – Simplified Shrimp Value Chain ............................................................................................
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