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The cost of compensation: Transaction and administration costs of hilsa fish management in Bangladesh

G C Haldar, Liaquat Ali

Working paper

The government of Bangladesh has introduced an economic incentive mechanism to sustainably manage the country’s hilsa fishery – a sector that provides 450,000 fishers with their main livelihood and accounts for about 1 per cent of Bangladesh’s gross domestic
product (GDP). Under its hilsa management plan, fishing is banned for several months a year in a number of sanctuary areas, and during these periods affected fisher households are offered food assistance and support for alternative income generation activities. While economic incentive mechanisms of this kind have
been hailed as the most cost-effective and efficient way to manage natural resources, their efficiency depends on how much the incentives cost to implement. This paper investigates the transaction and administration costs of delivering economic incentives under the hilsa management plan in Bangladesh, in order to better understand what costs are incurred and why; and offers
some recommendations to improve the scheme.

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Haldar, G. C, Alia, L. 2014. Transaction and Administrative Cost for Hilsa Conservation and Management in Bangladesh. IIED Working Paper. IIED, London.

Project information

Innovative ways to tackle overfishing problems and allow threatened hilsa fish stocks in Bangladesh to recover were devised by IIED and partners.

More at www.iied.org:
Bangladesh: protecting the Hilsa from overfishing

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