The blue economy of Bangladesh: importance, challenges, and ways to a resilient and sustainable Blue Economy

From a global perspective, the future of the blue economy is anything but certain. As climate change continues to cause disruptions in land-based economies, finding sustainable ways to make use of marine resources becomes ever more important. Bangladesh is at the forefront of this challenge, striving to convert its enormous coastline into an economic powerhouse by leveraging the blue economy model.

To assess how effective this strategy can be, it’s important to critically analyze current trends related to the blue economy within Bangladesh and beyond. This includes understanding which sectors influence its potential for growth, examining financial strategies that aim at development in this area, looking at government involvement, and assessing any potential risks from climate change. With these questions appropriately addressed, we can begin working together toward establishing a resilient and sustainable blue economy for Bangladesh’s future generations.

What is Blue Economy?

The blue economy refers to the sustainable use and management of ocean resources for economic growth, social development, and environmental sustainability. It can be seen as a framework for sustainable development that focuses on the potential of the ocean as a source of wealth and well-being while taking into account the ecological limits and social needs of the communities that depend on it.

The concept of the blue economy emphasizes the interdependence between human activities and the ocean ecosystem and seeks to ensure that economic growth is achieved in a way that preserves the natural capital and ecosystem services that the ocean provides.

The blue economy includes a wide range of economic sectors that are directly or indirectly linked to the ocean. These sectors include Fisheries and aquaculture, shipping and transportation, tourism and recreation, renewable energy, biotechnology, and marine minerals. It emphasizes the importance of balancing economic development with environmental protection and social equity and calls for the engagement of multiple stakeholders in decision-making and management processes.

Developments and initiatives in Bangladesh’s blue economy

The blue economy is an economic concept that refers to the sustainable use of marine resources for economic growth and development. It is often seen as a way of unlocking the potential for economic growth by maximizing the use of ecosystems and natural resources in the marine environment, without compromising the livelihoods of people who depend on those resources. The concept has been embraced by governments around the world as an opportunity to create new jobs and businesses while preserving ecosystems

Bangladesh, with over 710 kilometers of coastline, rich coral reefs, and vast fisheries, uniquely presents a significant opportunity for economic growth and poverty reduction. The outcome of the boundary dispute with its neighbor has increased Bangladesh’s maritime boundary by 15-20%, creating an area responsible for more than 80% of the country’s landmass. According to a recent report by the World Bank, the marine sector in Bangladesh contributes only 3% of the country’s GDP, and the country is yet to fully utilize its marine resources. The country’s marine industries are dominated by fishing and aquaculture, which together account for over 90% of the marine sector’s contribution to the economy.

Despite its potential, the blue economy in Bangladesh is still in its early stages of development. To develop these marine resources and economy sustainably, Bangladesh has adopted eco-friendly methods such as marine spatial planning, coastalBM, and embracing the best available science and practices.

The government of Bangladesh has recognized the potential of the blue economy and has taken steps to promote its development. In 2017, the government launched its “Blue Economy Initiative,” which aims to promote the sustainable use of marine resources and develop a range of marine industries, including shipping, tourism, and offshore oil and gas exploration.

The government has also established a number of policies and programs to support the growth of the blue economy, including tax incentives for investment in the sector and the establishment of a specialized agency, the Bangladesh Oceanographic Research Institute (BORI), to conduct research and support the development of marine industries.

Private sector involvement in the blue economy has also been growing in Bangladesh. In recent years, several companies have entered the marine sector, including shipping companies, seafood processors, and marine engineering firms. These companies are working to develop new technologies and innovative business models to promote the sustainable use of marine resources and create new economic opportunities.

International collaborations and partnerships have also played a key role in supporting the growth of the blue economy in Bangladesh. In 2018, the European Union launched a 40-million-euro program to support the development of the blue economy in Bangladesh. The program aims to promote the sustainable use of marine resources, improve institutional capacity, and support the development of new marine industries.

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Financial Strategies to Support Development in the Blue Economy

The Blue Economy is a growing concept for Bangladesh, recognizing the role of ocean-based resources for both economic growth and development. It requires solutions from multiple sectors, such as fisheries, energy production, transport, and tourism, to successfully tap into its potential. The boundaries of the Maritime Zone of Bangladesh were identified in a study by Hussain et al., under the context of collaborations with the European Union and World Bank. Additionally, recent contributions from the Blue Delta Initiative and Bangladesh Economic Review 2022 offer valuable insight into how the blue economy could be utilized for its projected socio-economic indicators.

Since independence, Bangladesh’s economy has grown over five decades yet many challenges remain; therefore, measures need to be adopted to realize the full potential of blue economy progress. With climate change having increasingly negative impacts on livelihoods every year, it’s important that countries adopt strategies that will support balanced growth in vulnerable areas. Financial strategies are essential in supporting development throughout the blue economy. These must identify clear budgeting options and prioritize investments in sustainable practices.

It is also essential to consider what role governments play in enabling an effective blue economy; this has implications on policy formation and resource allocation to ensure projects meet legal rights while driving society forward with best practices. To successfully build a prosperous blue-economy ecosystem in Bangladesh, all stakeholders must work together to ensure clear objectives are established through established regulations that enable positive development with weighting towards long-term considerations rather than short-term gains. Examining the role of government in promoting an effective blue economy provides us with solutions for how communities can balance economic objectives with conservation interests and create sustainable business models.

Importance of Bangladesh’s blue economy

The blue economy is important to Bangladesh’s sustainable economy because it offers potential and opportunities for the development of fisheries, aquaculture, trade, transport, tourism, and renewable energy. By adopting a sustainable approach, Bangladesh can harness the potential of its marine resources while ensuring the long-term health of the ocean ecosystem, which will contribute to poverty reduction, economic growth, and environmental sustainability.

Opportunity and Potential of Blue Economy

Bangladesh’s blue economy has significant opportunities and potential for growth. The country’s long coastline, vast marine resources, and strategic location provide a strong foundation for development in the sector. The blue economy can play a crucial role in Bangladesh’s economic growth and sustainable development. Here are some of the key opportunities and potential for growth in Bangladesh’s blue economy, with facts and figures:

Seafood Industry

Bangladesh has a significant potential for growth in the seafood industry. The country’s fishery resources are estimated to be worth USD 6 billion annually. The seafood industry is a major source of employment and income for coastal communities, with around 1.5 million people directly employed in the sector. Bangladesh is one of the largest exporters of frozen fish and seafood to the European Union, with exports worth around USD 445 million in 2020.

Marine Energy

Bangladesh has significant potential for renewable energy generation from the ocean. The country’s coastal areas are well-suited for the development of tidal, wave, and offshore wind energy. The potential for tidal energy alone is estimated to be around 5,000 MW. Bangladesh has already taken steps to promote the growth of this sector, with the installation of a 10 MW tidal power plant in the Kutubdia channel.

Shipping and Port Industry

Bangladesh’s two major ports, Chittagong and Mongla, are important gateways for international trade. Chittagong port is the country’s largest seaport and handles around 92% of Bangladesh’s maritime trade. In 2020, the port handled a total of 3.13 million twenty-foot equivalent units (TEUs) of container traffic. The country has also invested in the development of new ports, including the Payra port, which has the potential to become a major hub for regional trade.

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Tourism

Bangladesh’s natural beauty, including its beaches, islands, and mangrove forests, provides significant potential for growth in the tourism sector. The country’s government has taken steps to promote tourism, including developing infrastructure and promoting eco-tourism initiatives. In 2019, Bangladesh received around 2 million foreign tourists, generating USD 1.18 billion in revenue.

Blue Biotechnology

Bangladesh has significant potential for growth in the blue biotechnology sector. The country’s marine biodiversity is among the highest in the world, with over 1,700 species of fish and 143 species of shrimp. There is significant potential for innovation and commercialization in this sector, including the development of new medicines and bioproducts derived from marine resources.

Renewable Energy

The blue economy also offers opportunities for renewable energy development, particularly through offshore wind and wave energy. Bangladesh can leverage its strong coastal winds and tides to meet its growing energy demands while reducing its reliance on fossil fuels.

To capitalize on these opportunities and promote growth in the blue economy, Bangladesh’s government and private sector stakeholders must take a comprehensive and integrated approach that balances economic development with environmental protection. This includes investing in infrastructure, promoting sustainable use of marine resources, and developing policies and regulations that support the growth of the sector.

Future of Blue Economy

The blue economy is a pillar of future economic growth and development for many countries, particularly for those with large coastlines. According to the United Nations, Blue Economy comprises economic activities related to oceans, seas, and coastal areas. These activities can be related to sustainable fishing, ocean health, wildlife conservation, or protection from pollution. As Bangladesh has a vast shoreline and ideal geographical positioning in the Bay of Bengal, the country should focus on capitalizing on its strengths regarding this sector to become a regional hub for the maritime economy.

The government of Bangladesh has been paying close attention to creating sustainable growth in marine and ocean areas since a long time ago. Bangladesh’s blueprint for becoming a developed nation states that its geographic strategy must include sustainable ecosystems while simultaneously leveraging its resources to spur innovation and speed up economic growth. This way, it will be easier for the country to promote environmental protection while also creating decent job opportunities through foreign direct investments (FDI). In order for this plan to be efficient and successful, consideration should also be given to developing global partnerships with other countries in the sector.

With significant potential for growth and development, the future of Bangladesh’s blue economy is bright. With a long coastline of over 710 kilometers and extensive marine resources, the country has the opportunity to become a major player in the global blue economy. Here are some of the factors that indicate a promising future for Bangladesh’s blue economy:

Growing demand for seafood

The demand for seafood is growing globally, driven by population growth, increasing affluence, and changing consumer preferences. Bangladesh is well-positioned to meet this demand, with a rich variety of seafood species, including shrimp, crab, lobster, and fish. According to the Bangladesh Bureau of Statistics, the export of frozen fish and seafood increased from $346 million in FY 2010-11 to $817 million in FY 2019-20, indicating a growing demand for Bangladeshi seafood in international markets.

Potential for aquaculture

Bangladesh has significant potential for aquaculture, which is an important subsector of the blue economy. With over 260 freshwater fish species and favorable climatic conditions, the country has a comparative advantage in producing fish through aquaculture. According to the Food and Agriculture Organization (FAO), Bangladesh is the fifth-largest producer of fish from aquaculture, with a production of 3.6 million tons in 2020.

Renewable energy potential

The blue economy also offers opportunities for renewable energy development, particularly in the form of offshore wind and tidal power. According to a study by the World Bank, Bangladesh has the potential to generate up to 5,000 MW of offshore wind power and 1,000 MW of tidal power, which could help meet the country’s growing energy demand.

Increased investment

There is growing interest in investing in Bangladesh’s blue economy, both from the government and private sector. The government has initiated several policies and programs to promote the sector, including the “Blue Economy Cell” and the “Blue Economy Venture Fund.” In addition, private sector stakeholders, including local and international companies, are also investing in the sector. For example, Norwegian company Nordic Aquafarms is planning to invest $300 million in a land-based salmon farm in Bangladesh, which is expected to create over 8,000 jobs.

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Growing awareness of sustainability

There is a growing awareness of sustainability issues in the blue economy, both globally and in Bangladesh. Sustainable management of marine resources is critical for the long-term growth and development of the sector. The Bangladesh government has adopted several policies and regulations to promote the sustainable use of marine resources, including a ban on destructive fishing practices and the establishment of marine protected areas.

Analyzing the challenges and opportunities of developing a sustainable Blue Economy would lead us one step ahead in opening up more possibilities for Bangladesh’s future economic development. It is clear that harnessing this potential must form an integral part of Bangladesh’s vision of becoming an upper-middle-income nation by 2041. The government must complete an exhaustive assessment of this area so that it can provide citizens with better employment prospects that are both sustainable in nature as well as environmentally friendly.

The Impacts of Climate Change on the Future of Blue-Economy

Climate change has had a devastating impact on Bangladesh’s blue economy, the sector that depends upon the country’s myriad of waterways. Cyclone surges and sea level rises, combined with other problems caused by global warming, have made it essential for policymakers to assess the future of this sector.

Direct impacts have caused a loss of agricultural GDP and internal climate migration, with estimates suggesting nine million people will become internally displaced by 2050. Damage from extreme weather conditions is significant as well, with cyclones alone costing Bangladesh up to $1 billion annually. In a worst-case scenario study, it was reported that if flooding were to occur there could be as much as a 9% reduction in GDP. Such effects from climate change exacerbate existing poverty and hunger issues within the country, leading to an increasing anti-refugee sentiment among local citizens that further complicates policymaking.

These findings make it clear that ensuring success for Bangladesh’s blue economy will require relevant partnerships in order to implement the necessary policies and infrastructure within a sustained timeframe. It is important for national authorities to understand both immediate needs as well as long-term strategies for adapting to climate change in order to secure Bangladesh’s blue economy for generations to come.

Challenges and barriers to the growth of the blue economy in Bangladesh

Through the observations made, it was found that Bangladesh’s blue economy lack of marine policy, weak monitoring and surveillance strategies, and inadequate institutional and human resources; there are significant challenges and barriers that must be overcome to realize its potential.

Additionally, due to ignorance about the blue economy concept, an overall strategy or vision regarding what type of blue economy should be pursued by Bangladesh is lacking as well. It also concluded that understanding the prospects and challenges related to developing a sustainable blue economy is essential if one wants to frame sound policies for achieving SDGs. Here are some of the key challenges and barriers to the growth of the blue economy in Bangladesh:

Overfishing

Overfishing is one of the biggest challenges facing Bangladesh’s seafood industry. The country’s marine resources are being depleted at an alarming rate, with around 65% of its fishery resources being overexploited. This has led to a decline in fish stocks and a loss of livelihoods for coastal communities. In addition, illegal and unregulated fishing practices are also contributing to the problem.

Pollution and Environmental Degradation

Pollution and environmental degradation are major barriers to the growth of the blue economy in Bangladesh. The country’s coastal waters are heavily polluted with untreated sewage, industrial effluent, and agricultural runoff. This has led to the degradation of marine habitats and a decline in biodiversity. In addition, climate change is also affecting the country’s coastal ecosystems, with rising sea levels and increasing temperatures posing a threat to marine life and coastal communities.

Lack of Infrastructure

The lack of infrastructure is another major barrier to the growth of the blue economy in Bangladesh. The country’s ports and harbors are outdated and in need of modernization. In addition, there is a lack of facilities for cold storage, processing, and packaging of seafood, which hinders the development of the seafood industry. The lack of infrastructure also makes it difficult to attract investment in the sector.

Lack of Investment

The blue economy in Bangladesh is also hindered by a lack of investment. The country’s government has limited resources to invest in the sector, and private sector investment is also limited. This makes it difficult to develop new infrastructure and promote innovation and growth in the sector.

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Limited Institutional Capacity

Limited institutional capacity is another challenge facing the blue economy in Bangladesh. There is a lack of skilled personnel and institutional capacity to implement policies and regulations that support the growth of the sector. This makes it difficult to manage marine resources effectively and ensure the sustainable development of the sector.

To overcome these challenges and barriers, Bangladesh’s government and private sector stakeholders must take a comprehensive and integrated approach that addresses the underlying issues. This includes implementing policies and regulations that support the sustainable use of marine resources, investing in infrastructure, promoting innovation and entrepreneurship, and building institutional capacity to manage the sector effectively.

Ways to promote a resilient and sustainable blue economy

As Bangladesh has only recently settled a maritime boundary dispute with Myanmar and India, the discussion about the Blue Economy has taken center stage in recent years. The country is estimated to have over 500 varieties of marine life. The potential of this untapped market is yet to be realized by its citizens who are eager to make full use of the resources available.

To build a resilient and sustainable blue economy, it is crucial to make a shift from our current extractive and exploitative approach. Bangladesh’s 8th Five Year Plan puts an emphasis on building a sustainable blue economy, which has been driven by its highly climate-vulnerable nature requiring strong resilience strategies.

To facilitate building the resilient and sustainable blue economy of Bangladesh, there are several initiatives that are taking place such as developing a Sustainable Blue Economy Decision Support & Enabling Framework and learning platform. It provides decision support tools for mapping, assessing, and valuing marine and coastal ecosystems as well as their services. Additionally, it has plans to look into Circular and resource-efficient economic policy pathways and pollution reduction strategies.

The role of the government in promoting a resilient and sustainable blue economy cannot be overstated – they must create conducive frameworks and policies which enable sustainable production as well as conservation, governance systems that ensure that any commercial activity respects natural laws, guidelines that minimize social disruption, etc. Of course, all of this must be done within the context of short-term progress as well as the long-term sustainability of both livelihoods and habitats.

Promoting a resilient and sustainable blue economy in Bangladesh requires a comprehensive approach that addresses the challenges and barriers facing the sector while also capitalizing on the opportunities for growth and development. Here are some of the ways in which the government can promote an effective blue economy in Bangladesh:

Developing policies and regulations

The government can develop policies and regulations that promote the sustainable use of marine resources and support the growth and development of the blue economy. This includes policies related to fisheries management, aquaculture, maritime transportation, and renewable energy development. The government can also establish marine protected areas to conserve marine biodiversity and promote the sustainable use of marine resources.

Providing financial and technical support

The government can provide financial and technical support to businesses and entrepreneurs in the blue economy sector. This includes funding for research and development, infrastructure development, and capacity building. The government can also provide technical assistance and training to small-scale fishers and aquaculture farmers to help them improve their productivity and sustainability.

Creating an enabling environment

The government can create an enabling environment for the growth and development of the blue economy sector. This includes simplifying business registration processes, providing tax incentives, and promoting public-private partnerships. The government can also improve access to credit and insurance for businesses in the blue economy sector.

Strengthening institutional capacity

The government can strengthen the capacity of institutions responsible for the management and regulation of the blue economy. This includes building the capacity of the Department of Fisheries and other government agencies responsible for the sector, as well as promoting community-based management approaches.

Promoting international cooperation

The government can promote international cooperation on issues related to the blue economy. This includes cooperation on fisheries management, maritime security, and climate change. The government can also work with international organizations such as the United Nations and the World Bank to access funding and technical assistance for the development of the blue economy sector.

By developing policies and regulations, providing financial and technical support, creating an enabling environment, strengthening institutional capacity, and promoting international cooperation, the government can support the growth and development of the blue economy sector, promoting economic growth, job creation, and poverty reduction, while also ensuring environmental sustainability.

Relevant Partnerships for Long-Term Success in the Blue-Economy

Bangladesh is taking an ambitious leadership role in the global blue economy. Through its initiatives, the country is simultaneously learning and leading engaging in research to help make informed decisions when it comes to policy and investment, while also sharing its knowledge with the global community in order to reduce poverty and promote prosperity. The World Bank, European Union, and LightCastle Analytics Wing have all been supporting Bangladesh’s efforts to advance the blue economy and coastal resilience at the forefront of international conversations.

Research studies have demonstrated that developing a strong blue economy has a high potential for harvesting resources sustainably while also meeting our social needs as a global population. Using secondary data from sources like the Bay of Bengal, it has been found that there are 120 types of commercially available fish inhabiting Bangladesh’s stretches of ocean or river waters. Of those 120 types, 102 fish are found across the Bay of Bengal in particular, showing great potential for economic activities. With 12 miles of coastline on three sides and more than 700 rivers running through it, Bangladesh has 200 nautical miles of exclusive economic zones allowing it immeasurable potential within its sector.

With its immense resources available and ambitious plans set in place, Bangladesh is sure to be successful in identifying partnerships that are beneficial for its long-term success in the blue economy. However, there is still work to do; discussions towards solutions that build a resilient and sustainable blue economy should continue in order to ensure such positive changes take place effectively.

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Creating a sustainable and resilient blue economy is one of the principal priorities of Bangladesh in the coming years. With its extensive coastline, abundant marine resources, and financial potential, Bangladesh can achieve immense success in its future blue-economy development. Through strategic partnerships, effective and concerted efforts to reduce the impacts of climate change, sensible allocation of resources, engaging relevant stakeholders, and empowerment of local communities; the country can guarantee progress in this strategically significant area. By employing these approaches in innovative ways, the government of Bangladesh can secure a long-term successful future for its blue economy.