Bangladesh : Policy Options for Agriculture 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 gross domestic product (GDP), it...
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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/528851544422581831/Bangladesh-Policy-Options-for-Agriculture-Insurance http://hdl.handle.net/10986/31044 |
| 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 gross domestic product (GDP), it is highly
exposed to natural hazards. 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.
Agricultural insurance offers the government a planned,
fast, ex ante alternative to ad hoc disaster response, one
that: (1) reduces the ex post fiscal burden on the
government, (2) improves farmers’ resilience to shocks, and
(3) supports the expansion of agricultural credit.
International experience shows that government can play a
variety of roles to support the responsible scale-up of
agriculture insurance. The ministry of livestock and
fisheries, and other key public and private sector
stakeholders, the World Bank Group team has identified four
potential types of agricultural insurance to offer in
Bangladesh, all of which will require implementation through
a partnership between the public and private sectors. The
four types are dairy cattle insurance, aquaculture
insurance, crop insurance, and fully subsidized agricultural
insurance for the most vulnerable. |
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