INTEGRATED PROTECTED AREA CO-MANAGEMENT (IPAC) - BIDS

Chapter 6:
Concluding Remarks and Policy Implications
This study aimed to investigate aspects related to economics of SRF resources extraction,
particularly value chain analysis marketed SRF products. This concluding chapter summarizes and
reviews the major findings obtained from the previous chapters, and relates them to a few major
issues. These issues may be crucial to the improvement of value chains, in terms of return and
equity, conservation and co-management, and overall improvement of the quality of life of the
people involved with SRF resource collection. Where possible, it also suggests policy
implications and discusses some relevant interventions 84 .
Above all, the local people, involved as actors in the value chains, gave reflection on the
importance of strong and favorable policies necessary to devising a pro-poor value chain and
uplifting the income situation of the SRF collectors.
6.1 Uniqueness of the Sundarbans Economic Zone
The economy of the Sundarbans is unique for its several characteristics. The SRF accounts for
over half of all reserve forest area in Bangladesh and is the single largest source of forest
products - supplying nearly half of all timber and fuel wood output, directly providing income
and subsistence for at least half a million people, maintaining a similar number of households in
the buffer area. It is estimated that the Sundarbans currently contributes about Taka 7 billion
(US$ 93 million) to GDP at current prices 85 . Most of the value is currently derived from fishery,
aquatic resources, timber and non-timber products, and eco-tourism. A substantial value is
contributed to national GDP derived from foreign earnings on account of fishery and aquatic
resources.
The Sudarbans economy is centered around SRF collection activities which enjoy uniqueness in
that it comprises unique financial networks across its buffer area, centered around an informal
financial credit system, which is called dadon. Incidentally, this informal and traditional social
network is now the heart of the SRF economy.
Dadons are playing a very important role in the economy of the Sundarbans as it is providing the
major bulk of finance for the SRF resource collection. It is a system where people from bottom
to top layers in the value chains are involved. Few institutional sources (banks or NGOs) are
closer to the competitiveness with the dadon system. A similar feature can hardly be experienced
outside the Sundarbans buffer areas.
The present study shows that the Sundarbans economy, centering around this informal credit
arrangement, is a sort of unique system heavily accessible based on Relationships (social
connection), Linkages (business connections) and Trust level (social capital formed among
84
The identified interventions may not all be feasible and implementable in the short run, but reported here to
reflect the views of the respondents of the study surveys, FGDs, Case Studies and Problem Analyses.
85 ADB Fact Finding Missions Report (1997) estimated it as Tk 4 billion, which is approximately Tk 7 billion now.
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