Blue Economy & Bangladesh: Prospects & Challenges

“The blue economy model aims for improvement of human wellbeing and social
equity, while significantly reducing environmental risks and ecological scarcities.”
-Patricia Scotland
(Secretary-General of Commonwealth of Nations)
The Oceanic Economy popularly known as blue economy has emerged as a crucial
development issue for optimum use of the oceans, seas and marine resources for
sustainable development. Among the sustainable development goals (SDGs), SDG-14
focuses on sustainable use of the oceans, seas and marine resources for sustainable
development. By overlooking the three-fourth proportion of the surface of earth, it is tough
to achieve sustainable economic development by 2030. Given this, Bangladesh has
adopted steps to ensure sustainable use the oceans, seas and marine resources attaining
inclusive development and goal related to SDG-14.
Blue Economy:
The blue economy concept was introduced by Gunter Pauli in 1994, in his world-famous
book named “The Blue Economy: 10 years- 100 innovations- 100 million jobs."
Blue Economy encompasses a wide range of activities associated with the oceans, harbors,
ports, minerals, coastal zones and sea-based activities.
According to the World Bank, Blue Economy indicates the use of all the resources of the
oceans and the resources at their bottom for sustainable development.
According to United Nations “Blue economy is the ocean economy that will add to the
economy of that country and will change the GDP of the state and change the life standard
of the population.”
Law of Seas:
In 1982, ITLOS is created and proposed some law about sea in its constitution.
According to Article No. 56 of constitution of ITLOS - 12 nautical miles will be political
self of the state and 200 NM will be the exclusive economic zone and 200 NM to 350NM
will be the continental self of the state.
"The coastal state exercises sovereign rights over the continental shelf for exploiting
the minerals and other non-living resources of the seabed and subsoil, together with
living organisms." - Article 77 of UNCLOS
Blue Economy and Bangladesh:
“The country which controls the Bay of Bengal will control the South Asia; the
country which controls South China Sea will control South East Asia, the country
which controls Persian Gulf will control Middle East.”
-Political Analysts
A new economic area for
Bangladesh is demarcated
in the Bay of Bengal.
Bangladesh has 710 km
long coastline with an
exclusive economic zone
of 200 Nautical Miles
inside the Bay of Bengal.
Gaining a vast maritime
territory which is
equivalent to 80 percent of
the country's original size
has brought tremendous
prospect for Bangladesh.

Fig: Blue economic zones of Bangladesh

Potential Blue Economy Sectors of Bangladesh:
Twenty-six potential Blue Economy sectors have been identified by the MoFA which
include the fishery, maritime trade and shipping, energy, tourism, coastal protection,
maritime safety and surveillance for development of blue economy in Bangladesh.
 “Focus needs to
be placed to
build a wide
sustainable blue
economic belt in
this subcontinent
with the help of
untapped
resources of the
sea.”
----HPM Sheikh
Hasina

Economic Valuation of Blue Economy in Bangladesh:

The value of the Bangladesh blue economy has been estimated to be $6.2 billion or around
3 per cent of the GDP. Estimates suggest around 30 million Bangladeshi directly depend
on oceanic economic activities.
Composition of the ocean economy in Bangladesh
Ship & Boat
building/ breaking, Tourism and
9% Recreation, 20%

Transport, 22%

Marine Fisheries
and Aquaculture,
20%

Energy, 19% Minerals, 3%

Source: General Economic Division (GED), Ministry of Planning

Sea Based Blue Economy and Potentiality for Bangladesh:
Bay of Bengal and the coastal areas are the backbone of national economy of Bangladesh
and now after the settlement of maritime boundary many more sectors are opened with
different opportunities.
According to various studies and reports, including the World Bank’s 2019 report
‘Towards a Blue Economy: A Promise for Sustainable Growth in Bangladesh’s and the
Bangladesh Centre for Advanced Studies’ 2016 report ‘Blue Economy and Sustainable
Development in Bangladesh,’ Bangladesh’s blue economy has the potential to generate
significant economic value and employment opportunities.
The studies estimate that the blue economy in Bangladesh could contribute up to 4.5%
of the country’s GDP, generate up to 4 million jobs, and create up to $42 billion in
value-added by 2030, assuming sustainable management and development of the
country’s maritime resources.
The prospect of blue economy is as follows:

(i) Increase in maritime transport:

Maritime transportation is essential for the world's economy as more than 70% of our
planet is covered by sea and over 90% of the world's trade is carried by sea. Because of
having vast sea area, Bangladesh can earn huge amount of foreign currency by allowing
ships of other countries to use its ports for carrying goods from one country to another.
Chittagong port, for example handles about 1.5 million shipments annually.
(ii) Exploration of oil, gas and other fossil fuels:
Experts predict that Bangladesh has ample opportunity of extracting oil and gas from the
sea. Before the tribunal’s verdict, India and Myanmar both claimed 10 and 18 gas-blocks
respectively in the maritime zones of Bangladesh and now It won 8 gas-blocks from India
and 13 gas-blocks in the Bay of Bengal. According to the Report of USGS5, around 40
trillion Cubic Foot (TCF) gas may be found in the blocks mentioned above.
(iii) Sources of renewable energy:
Ocean is one of the greatest sources of energy especially renewable energy. Marine based
renewable energy such as wind, wave, tidal range and current offer a significant potential
to environment friendly energy. Following the footprint of Europe, Bangladesh may set up
large offshore wind parks and can produce electricity.
(iv) Sources of fishery:
Salty and deep water of the Bay of Bengal is the abode of 475 species of fish compared
with 250 species sweet water. In a survey, it is found that 50 - 60% of global Hilsha is
found in Bangladesh. Besides, the Bay of Bengal is the source of shrimp and crab which
are exported to other countries, and a large amount of foreign currency is earned.
(v) Port based business:
Statistics reveals that economy of Bangladesh is heavily dependent on international trade
where sea-ports play the key role of transporting 94% of its foreign trade. By enhancing
handling capacities of ports and by constructing deep sea-port with more capabilities and
modern handling equipment, Bangladesh can bring mobility in the economy.
(vi) Exploring minerals:
Sea-bed is the source of some minerals such as copper, magnesium, nickel, cobalt and so
on. The countries having vast sea areas can explore minerals and enrich their economy.
(vii) Coastal tourism:
Globally, coastal tourism is the largest market segment and represents 5 percent of world
GDP and contributes to 6-7 per cent of total employment. Cox’s Bazar is the second largest
sea beach running 120 km unbroken. It is the top tourist destination of Bangladesh and
Saint Martin, the only Coral Island in Bangladesh, and often called the pearl of the sea
attracts many Tourists from home and overseas. About 10,000 tourists visit Saint Martin’s
island every day.
(viii) Salt collection:
Bangladesh has long been producing salt in the Cox's Bazar coast for generations. The
annual salt collection of Bangladesh is 22 MT which can increase significantly if salt
collectors are supported financially and with modern equipment.
(ix) Ship building and Ship Breaking:
As Bangladesh has both the sea coast and big river shore, it can utilize these and can earn
huge amount of foreign currency by importing ships built in her dockyards. There are more
than 300 shipyards and workshops in Bangladesh and almost 100% requirement of inland
vessels, fast petrol boats, dredging barges, passenger vessels, tug, and supply barges, deck
loading barges, speed boat, troop carrying vessels and water taxi are being built in these
yards. As Bangladesh can build ships using cheap labor, the cost of ships built in
Bangladesh is much lower than those built-in other countries. As a result, European buyers
are interested to buy ships from Bangladesh. According to UNTAD, 80% of the ship is
breaking in Bangladesh and it enhances 25% of the foreign currency of Bangladesh.
(x) Marine biotechnology:
Living marine resources have huge potential for developing new food, biochemical,
pharmaceutical, cosmetics bioenergy and so on. About 18,000 natural products have been
developed to date from about 4,800 marine organisms. Bangladesh has huge potentiality
to avail the opportunity of these living marine resources.
(xi) Geo-political influence:
The importance of Bangladesh to her neighboring countries has risen because of the Bay
of Bengal and sea ports. Besides, the superpowers of the world consider Bangladesh with
importance because of tactical geographical location with the Bay of Bengal. Bangladesh
has got geo-political importance to USA, India, China and Russia.

Challenges towards Blue Economy for Bangladesh:

Though vast ocean has brought about immense prospects for Bangladesh in various
sectors, the country cannot enjoy all the benefits smoothly or without facing some
challenges. The challenges that Bangladesh will have to come across are as follows:
1. Maintaining sustainable ocean economy
2. Ensuring security of the vast sea-area
3. Ensuring sovereignty over the entire coastal area
4. Protecting the area from international smugglers and sea robbers
5. Controlling coastal pollution
 6. Establishing the marine-friendly infrastructure for marine tourists.
7. Maintaining an investment-friendly environment in the awarded area.
8. Sustainable use of biodiversity.
9. Maintaining marine and coastal ecosystems.
10.Preserving mangroves and seagrass.
11.Maintaining sea level rise and change in ecosystem and temperatures, from coral
bleaching.
12.Addressing ocean acidification and blue carbon.
13.Keeping the sea area free from pollution and marine debris.
14.The growing human population, intensification of agriculture.
15.Addressing climate change and managing carbon emission.
Blue Economy intiatives in Bangladesh:

(a) Payra deep sea port is being developed.

(b) Bangladesh Demographic Research Institute Act-2015 is passed in the parliament.
(c) In Ramu of Cox's Bazar, the National Ocean Research Institute is established.
(d) Oceanographic Data center is established to research and collect information.
(e) Marine Drive Road created by the Govt.
(f) Department for higher education on oceanography has been started in Dhaka University
and Chittagong University.
Recommendations:
1. Bangladesh should adopt some key initiatives to make a proper utilization of its billion-
dollar Blue Economy.
2. At initial stage, a 3–5-year project for Blue Economy rise should be formulated by the
integration of Ministry of Fisheries and Livestock, Ministry of Finance, Ministry of
 Shipping, Ministry of Water Resources, Ministry of Planning and Ministry of ICT for
technological support.
3. A panel of experts from diversified fields (Marine Biologists, Fisheries and Aquaculture
specialists, Marine Trade Experts, Economists) can be introduced for monitoring and
evaluating that Blue Economy Project. No action/policy should be taken without the
approval of the expert panel.
4. For technical and other assistance, Bangladesh can take guidance or suggestions from one
of the Blue Economy success stories reported countries by UNEP.
5. For Sustainable Blue Economy, Bangladesh needs to take some measures to lessen the
pollution of sea/ ocean water and other environmental degradation.
6. Sea Economic Zone like EPZ can be an excellent way to promote Blue Economy.
Bangladesh also has some divine coastal and maritime tourist spots in Sundarbans,
Potuakhali, Kuakata, St. Martins, Moheskhali etc. By proper management for ocean
tourism, it can generate significant revenue.
7. Inclusion of habitant of coastal belt for sea health conservation, economic activities of Blue
Economy through employing the locals, engagement of locals. New economic
arrangements of Blue Economy should not deprive the coastal belts' local people; they
know the sea much better than any other part's people of the country.
8. Like land economy, Bangladesh should give importance to the Blue Economy since it has
the highest potential for obtaining new natural gas source, minerals, employment
opportunity, foreign currency from coastal and maritime tourism.
9. Adequate infrastructural development initiatives are needed to promote coastal and
maritime tourism since tourism industry has become an emerging source of national
income.
10. Government, businesses and community partnership (public-private partnership) should
be developed through business connectivity and integrated infrastructure.
11. Bangladesh must introduce waste disposal techniques such as waste recycling, incineration
process, gasification, bioreactor landfills, composting and anaerobic digestion etc.
Moreover, it will have to implement an Integrated Waste Management (IWM) system for
this particular purpose.
Blue economy is a relatively new jargon in Bangladesh but very common in global economy. This
is a hope and means of development in the near future. Experts opine that Bangladesh can rise to
a middle-income country by using this 'Blue Economy' concept.
"Bangladesh has 120 trillion-dollar ocean resources which will make Bangladesh Asian
super power."
-----Charles Brown Blumberg
(Ocean related researcher)
The proper and actual utilization of ocean and its expensive resources have paved the path of
development and prosperity of many countries around the globe. Such a glorious opportunity has
been beckoning Bangladesh since the arbitration of maritime disputes against Myanmar and India.