Bangladesh : Policy Options for Crop and Livestock and Aquaculture Insurance
Agriculture is a key sector in Bangladesh, but it is highly exposed to risks. While agriculture is a source of employment and livelihood for nearly one in two adults in Bangladesh and contributes about 16 percent to GDP, it is highly exposed to nat...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/537671544646052767/Bangladesh-Policy-Options-for-Crop-and-Livestock-and-Aquaculture-Insurance http://hdl.handle.net/10986/31039 |
| Summary: | Agriculture is a key sector in
Bangladesh, but it is highly exposed to risks. While
agriculture is a source of employment and livelihood for
nearly one in two adults in Bangladesh and contributes about
16 percent to GDP, it is highly exposed to natural hazards.
Indeed, Bangladesh is commonly ranked as one of the most
vulnerable countries in the world to natural disasters with
agriculture heavily exposed to floods, cyclones, and
drought. In 2007, for instance, Cyclone Sidr destroyed 0.69
million hectares of cultivated crop lands and killed over
460,000 head of livestock and poultry. In the past, the
government of Bangladesh and development partners have
provided substantial support to farmers in the aftermath of
large disasters, but this approach has disadvantages in that
support is not guaranteed to farmers and may be slow. In the
aftermath of Cyclone Sidr, recovery and reconstruction needs
were estimated at USD 1.3 billion, or 28 percent of
government expenditures. In spite of efforts by the
government of Bangladesh, the gap between available funding
and needs is often large and can reach more than USD 1.5
billion in bad years (Air Worldwide and ADPC 2014).
Bangladesh often relies on international assistance, as over
the past ten years, only 33 percent of disaster-related
expenses has been met by domestic resources. In addition,
disaster relief transfers often take substantial time to
reach beneficiaries and require to divert resources away
from long term development projects. If the Government of
Bangladesh decided to go ahead with support for agriculture
insurance, high-level buy-in from a broad range of
stakeholders will be necessary, as will partnerships with
the private sector. Government may consider: strengthening
the overall legal, regulatory, and supervisory insurance
environment; developing a centralized database of data for
agricultural insurance purposes; provision of financial
support to the program, particularly in the early stages of
the program; and establishing a dedicated technical team
within government with responsibility for implementation and
for providing input to policy. One option for consideration
would be for some or all of these activities to be carried
out through a project with technical support and/or
financial assistance of a development partner with adequate
expertise in this field, such as the World Bank Group. |
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