It was an academic research proposal.

1. Department of Agricultural Marketing and Business Management
Poverty and Livelihood Diversification of Fishing
Community in Hakaluki Haor of Moulvibazar District,
Bangladesh
Research Proposal on….

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Background of the Study
Around 67% of total population of the country live in rural areas (World Bank,
2013) and engage with agricultural activities. Still one third of the country’s
population lives below the poverty line, and about 70% of the poor live in rural
areas.
The fisheries of Bangladesh are attributed by the nature of the water bodies of the
country. In terms of the nature of fish habitat, Bangladesh fisheries can be broadly
divided into inland water, estuarine or coastal water and marine water areas.
The core haor area, alternatively referred to as the Haor basin or the Sylhet basin,
is estimated to spread over an area between 4,450 km2and 25,000 square
kilometres] by experts.

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A study on Rural Economy of Bangladesh by Hossain (2010) showed that
agriculture is no longer the major means of rural livelihoods. In 1988, about 60%
of total household income generated from agricultural sectors whereas in 2008 it
drops to 45%.
The study also showed that per household land owned has declined from 1.5 acres
in 1988 to 1.31 acres in 2000 and further to only 0.75 acres in 2013 (Hossain M.
and A. Bayes, 2014).
Background of the Study

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The future development of the country is very much related with agricultural
sector. As a sub-sector of agriculture, fisheries rank second. Fisheries play a
significant role in nutrition, employment, and foreign exchange earnings.
Agriculture contributes 20.24 percent to the GDP and of this 3.74 percent
comes from fisheries sub-sector.
Why Poverty, Livelihood Diversification ,
Fishing Community & Hakaluki Haor ?
Fishery industry in Bangladesh provides livelihood to 11.2 million full time
fishermen and to 10 million part time fishermen (DoF, 2008). About 12.05
percent of the population directly or indirectly depends on fishing and
ancillary occupation (BBS, 2010).

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Bangladesh has a long tradition in fish culture, more particularly in the field of
inland fisheries cultivation, for example, ponds, rivers, canals, tanks, Beels,
Haors and Baor etc.
The contribution of the inland fisheries is 82.15 percent to the total catch while
the marine contribution is 17.85 percent. So the fisheries sector is a source of
employment and income for a large sector of the population, particularly in rural
areas.
About 12 million people are involved in fisheries sector. The exporting income
from this sector is Tk. 3408.52 core (2010/11).
Why Poverty, Livelihood Diversification ,
Fishing Community & Hakaluki Haor ?

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Objectives of the Study
The general objective of the study is …
 To determining the incidence, depth and severity of poverty among the haor
fishing households in the study area
 To identifying the livelihood activities engaged by the fishing household;
 To examine the contribution of fishing as a means of livelihood diversification
of fishermen;
 To identify the factors affecting of livelihood diversification in haor areas; and
 To identify major constraints and give some policy measures that will facilitate
to improve the livelihoods situation of fishing community in Dekhar haor of
Moulvibazar district.

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Business Management
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Review of Literature
Rabby T.G. (2012) was conducted a study to explores the nexus of poverty and
livelihood in the Haor area. He found that poor are primarily uneducated, landless,
unemployed and female-headed households with the latter two groups constituting
the extremely poor strata. The poverty dynamics reveal that the exposure of resource
pauperization to poverty has increased overtime in the Haor area.
Talukder D. And L. Chille (2013) investigated the determinants of growth in
consumption of rural household in Bangladesh. The study applied OLS regression
models to assess the determinants. It has found that non-farm household dummy
was the largest positive determinant of household consumption followed by
household land area in 2010.

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Business Management
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Review of Literature
Rahman M. S. (2013) in his study “Socio-economic determinants of off-farm
activity participation in Bangladesh” showed that the average annual income was
higher for service holders compared to the business and off-farm labor activities.
Khatun D. and B.C. Roy (2012) conducted a study titled “Rural Livelihood
Diversification in West Bengal: Determinants and constraints.” Which showed that
household-head experience (age), educational level, social status, training, asset
position, access to credit, rural infrastructure, agro-climatic condition and the
overall level of economic development .
Kishore S. and D. K. Singh, 2011. showed that livelihood diversification is
basically governed by the extent of alternative non-farm opportunities in the
neighborhood, socio-economic features of the villagers, and their access to credit,
assets and Govt. benefit schemes.

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Business Management
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Selection of the study area
On the basis of higher concentration of
fishfarmers , five villages under Barlekha
Upazila of Moulvibazar District will be
selected for the study.
Selection of sample and sampling
technique
Sixty farmers will be selected. The farmers
will selected by using stratified random
sampling method. Among the sixty selected
farmers 40 will small, 12will medium
farmers and 8 will large farmers.
Data Analysis
Data will be analyzed with a combination
of tabular and functional analysis.
Various descriptive and inferential
statistical measures will be employed to
achieve the objectives.
Methodology of the study

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Business Management
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Measures of poverty and identification of livelihood activities
FGT poverty measures are defined
Pα =
0
z
[
z − x
z
]α
f x dx α ≥ 0 … … … … … … … … . (i)
Where, x is the household consumption expenditure, f(x) is its density (roughly the
proportion of the population consuming x), z denotes the poverty line, and α is a
non-negative parameter.
Methodology of the study: Analytical Technique

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Business Management
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Headcount index (H) and poverty gap index (PG)
H =
q
n
= 1 −
z
μ
PG = H −
μ
z
L H ……………………………………………….(ii)
Where q = number of poor households, n = total number of
households, z = poverty line, mean consumption, L = slope of the
Lorenz curve
μ
z
P2
=
PG2
H
+
H − PG2
H
CVp
2 … … … … … … … … … … . . … … … … … … . . (iii)
Where PG = poverty gap index, H= headcount index, CVp
2= squared
coefficient of variation of income among the poor household.
Methodology of the study: Analytical Technique

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Business Management
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Contribution of fishing as a means of livelihood diversification of fishermen
The net income from rice crop and non-rice crops will be computed as the
difference between total return and total cost by using the following formula;
π =
i=1
n
(PYi
. Yi) −
i=1
n
(PXi
. Xi) − TFC … … … … … … … … … . (iv)
Where,
π = Profit, PYi
= Price per unit of the i-th produces;
Yi = Quantity of the i-th
produces;
PXi
=Price per unit of the i-th input;
Xi= Quantity of i-th input; TFC=Total fixed cost; and
i =1, 2, 3…………………………….n (number of times)
Methodology of the study: Analytical Technique

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Business Management
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Measuring of Livelihood Diversification
Simpson index will be used because of its computational simplicity,
robustness and wider applicability. The formula for Simpson index is
given below:
SDI = 1 −
1
n
Pi
2
Where,
SDI = Simpson Diversification index
n = Total number of income sources and
Pi = Income proportion of the i-th income source.
Methodology of the study: Analytical Technique

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Business Management
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Determining the factors that affects the livelihood diversification in haor areas ( Tobit
Model)
SDI*=β0+β1X1+β2X2+β3X3+β4X4+β5X5+β6X6+β7X7+β8X8+β9X9+β10X10+β11X11+
β12X12+β13X13+β14X14+β15X15+β16D1 + β17D2 + β18D3 + µi
Where, SDI* = Livelihood diversification index, β0 = Intercept
X1= Gender of household head(dummy) 1= Male X10 = Age of household head
X2 = Total number of members in a household X11= Education of household head
X3= Amount of operating land holdings X12 = Credit access
X4 = Member of any organization X13 = Money saved in any account in a year
X5 = Number of household members staying outside of house X14 = Distance of household from the district town
X6 = Households’ participation in any govt. Development program X15 = Distance of household from the nearest market place
X7 = Main occupation of the household head ( D1= Land class dummy 1= Landless 0 = otherwise
X8 = Estimated value of all physical assets owned by a household,
except the value of cultivable land
D2 = Land class dummy 2= Small land class 0 = otherwise
X9 = Ratio of inactive person over active person D3 = Land class dummy 1= Medium land less 0 =
otherwise
μi = Error term, which is normally distributed with mean zero and constant variance
Methodology of the study: Analytical Technique

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Business Management
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Tobit has nothing to do with binary or discrete outcomes. Tobit models
are a form of linear regression. Specifically, if a CONTINUOUS
dependent variable needs to be regressed, but is skewed to one
direction, the Tobit model is used. The Tobit model allows regression of
such a variable while censoring it so that regression of a continuous
dependent variable can happen. It allows the analyst to specify a lower
(or upper) threshold to censor the regression at while maintaining the
linear assumptions needed for linear regression.
Why Tobit Model?

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Business Management
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Time Frame (Activity Plan):
Activities Months
S O N D J F M A M J J A
Review of literature and collection of
related research report
Preparation, pre-testing and finalizing
questionnaire
Field survey and data collection
Data processing and analyzing
Preparation of research report/thesis

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Business Management
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The study will contain an analysis of data collected through a field survey which
makes available findings so they will be information-rich. By identifying income,
poverty and income diversification this study will help to make improvements in
their living condition.
Expected Results

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Business Management
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Thanx all of you for being with me…..