The presentation of Essam Yassin Mohammed, a researcher with IIED's Sustainable Markets Group, to the IIED-hosted Innovations for equity in smallholder PES: bridging research and practice conference. The presentation, made within the second session on new research to improve understanding of participants' preferences for different PES payment formats, focused on direct economic incentives for sustainable fisheries management in Bangladesh. More information on Mohammed's work: http://pubs.iied.org/16527IIED.html. The conference took place at the Royal Botanic Gardens in Edinburgh on 21 March. Further details of the conference and IIED's work with PES are available via http://www.iied.org/conference-innovations-for-equity-smallholder-pes-highlights, and can be found via the Shaping Sustainable Markets website: http://shapingsustainablemarkets.iied.org/

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Essam Yassin Mohammed
International Institute for Environment and Development
Assessing Preferences for
Compensation Packages:
The case of Hilsa conservation in Bangladesh

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Marine and Costal
Ecosystem Services
• Major source of
food: the main
or only source of
animal protein in
some poor
communities
• Some 45 million
directly
employed
• Up to 200 mill
indirectly
• The most traded
food commodity

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Fisheries in crisis
20% moderately
exploited
1% on track to
recovery
52% fully exploited
19% over exploited
8% depleted
80%

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Fisheries management
regimes
Off season
Short-term economic and
social cost

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Ways that economic
incentives can be added to
existing regulatory schemes

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Case study: Payments for
Hilsa conservation in
Bangladesh
- Anadromous fish
- Bangladesh accounts
for about 60% of total
hilsa catch in the Bay
of Bengal
- 11% of total fish catch
in Bangladesh
- 1% of GDP
- Up to 2.5 mill people
along the supply chain
(processing,
marketing,
transporting)

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Hilsa fishery is under
threat
- Overfishing
- Damming and river
diversion
- Pollution
- Climate change

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Hilsa sanctuaries in the
Lower Meghna Estuary
„Hilsa fisheries
management action
plan‟ 2003
- Jatka (juvenile
hilsa) protection
- Conservation of
gravid hilsa
- 5 hilsa sanctuaries
- No take season

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Incentive-based
management
Incentive-
based
manag‟t
No-take
zone
Off-
season
Jatka
and
brood
Compen
sation
Awaren
ess
raising
30kg rice/hh/month
AIGAs (e.g. sewing
machines)
Some cash
Jatka: Nov – May
Brood: 5 days before
and after the full moon
in the month of Ashvin
(October)
Hilsa sanctuaries
Jatka conservation
week: today‟s jatka,
tomorrow‟s hilsa
TV, Radio, Print, boat
rallies, meetings,
workshops

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Assessing preferences
- FGDs with 147 HH reps in 4
districts – Chandpur,
Ramgati, Bhola, and
Kalapara
- More preference for rice
- 50kg of rice (not 30kg, why?)
- Some cash (up to
TK2000/month)
- Divergence between
preferences and
compensation packages
(e.g. sewing machine)

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Distributional
implications
 Priority given to the
“needy”
 Inclusion and exclusion
errors
 ID cards for hilsa fishers and
more accountability
 Intra-household distributional
implications
 Impact on the local economy
(small business owners)
 Middlemen
 Labourers at landing sites
(30%)

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Tackling systemic constraints
- Freeze repayment period
during the ban period
- Access to microcredit
(Aratdars – wholesalers and
money lenders)
- Tackle piracy
- Banning the „production‟ of
destructive fishing gears (e.g.
monofilament net)
- Effective policing and
enforcement
- Involving the army during
cash/food handouts (3rd party)

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Next step: choice experiment
“who prefers what and why?”
- 800 households
- 120 permutations
- 5 attributes
- Preferences for
compensation
packages
- Implicit discount rate
- Methodological
issues

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THANK YOU
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