8. PROJECTS OF GREAT URGENCY

8.1 Fishery Credit Research Project

A. Project and its Rationale

There are a variety of extension/credit approaches used by different NGOs, donors and governmental agencies in Bangladesh. Most NGOs have their own specialised credit programme because non-collateral credit is not available through the banks. The ADB 2nd aquaculture Development project has a low-intensity programme (1 demonstration per Thana) with little follow-up, whereas a more fragmented, small-scale demonstrations seem to be more effective. there are Other development agencies who have adopted a trickle-down approach with no credit component. Grameen provides credit but no technical assistance. PROSHIKA provides technical assistance and credit. DANIDA provides technical assistance and get commercial banks involved in rural credit in a sustainable way. PROSHIKA, Grameen, BRAC and some others charge a higher percentage rate of interest than commercial banks to cover their loan supervision clauses. Whereas DANIDA does not charge for their technical assistance or loan supervision and interest charged by the banks is for the loan only.

Industrial (semi-intensive) shrimp farmers have credit available to them at reduced rates but no credit is available to small traditional shrimp farmers.

Identification of people who would need credit is a problem for the banks. Some recommendations suggest use of commission agent for this purpose, which may not be appropriate as it may encourage corruption.

ADB and WB loans have had problems of disbursement due to a variety of reasons ranging from high interest rates (16% in the case ADB) to institutional problems and lack of cooperations /coordination between DOF and Bangladesh Bank.

B. Development Objectives

The development objective is to remove a major constraint to the fisheries development in Bangladesh, namely the lack of adequate and timely credit and extension facilities and thus attain sustainable improvement in the socioeconomic conditions of small-scale fishing communities.

C. Immediate Objectives

The objective of this project would be

1. To Conduct field surveys of fishermen, fish and shrimp farmers, traders and processors to investigate their credit needs and current access to formal and informal credit facilities, and propose a modality to provide them with easier access to credit.

2. Appraisal of pilot fishery projects in operation with a view to analysing implications and incorporating a credit component into them.

3. Research toward identification of pilot projects with credit as well as extension components for artisanal fishermen, fish farmers and rural women in production, processing and marketing with the involvement of NGOs.

4. Evaluation of variety of extension/credit approaches used by different NGOs, donors and governmental agencies in Bangladesh with respect to:

   1. Sustainability;
   2. Impact on farmers; and
   3. Separability of extension and credit

D. Inputs

1. Government Inputs

• Essential technical core staff;
• Appropriate Office space

2. Donor Agency Inputs

• International Consultant:         18 man-months
• National Consultants:             24 man-months
• Equipments                            (see Table 8.1)

E. Project Duration and Cost:

8.2 Technical Assistance Project: “Assistance to FRI in Socioeconomic Research”

A. Project and its Rationale

Given a multitude of socioeconomic issues facing the fisheries sector of Bangladesh (see section 5) it would require a wellestablished socioeconomic department/divisions manned with appropriately qualified and well-experienced Economists and Socioeconomists to tackle these issues and problems to come up with economically viable and socially acceptable policy recommendations. At present, neither DOF nor FRI has a single socioeconomist among the members of staff (see Section 8) to deal with these issues with appropriate expertise.

The objective of this project would be:

1. To assist the Fisheries Research Institute to establish a functional Economic and Socioeconomic Division(s) within the institute.

2. To provide on-the-job training as well as fellowships for the staff undertaking economic/socioeconomic research.

3. To assist the staff of the economic and socioeconomic divisions of FRI to implement the Socioeconomic Core Research Programmes, projects and components.¹

4. To provide advice and assistance in preparation of proforma for, conduct and analysis of Bench Mark Surveys.

B. Development Objectives

The development objective is to attain a sustainable improvement in the socioeconomic conditions of small-scale fishing communities and manage the resource so as to maximise its productivity (or more appropriately the net economic or net social benefit from the fisheries resources).

C. Immediate Objectives

The establishment and operation of Fisheries Economics and Socioeconomics Divisions within FRI as an effective research resource capable of supporting the development of the fisheries sector and fishing communities in Bangladesh.

1. Output 1

   Technical core staff realigned to specific research components under the Socioeconomic Core Reseach Programme.

2. Output 2

   Mechanisms set-up for research planning and management of FRI Economics and Socioeconomics Divisions, preparation and coordination of research, linkages with other government and non-government and international institutions within or outside Bangladesh established, fisheries socioeconomic database documented and published.

3. Output 3

   The core staff of Economics and Socioeconomics Divisions of FRI trained on-the-job and identified further advanced academic and/or practical training locally or abroad, programme of future training requirement prepared.

¹ For the proposed Socioeconomic Core Reseach Programmes, Projects and Components see Chapter 7 of this consultancy report.

D. Inputs

1. Government Inputs

   • Essential technical core staff;

   • Appropriate Office space

2. Donor Agency Inputs

   • International Consultant:        18 man-months
   • National personnel:                24 man-months
   • Training                              (see Section 9.2.3)
   • Equipments                              (see Table 8.1)

E. Project Duration and Cost:

Table 8.1 Required Equipments for Fisheries Economics and Socioeconomics Divisions in FRI