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Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and
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Suggested Citation: P.G. Patil, J. Virdin, C.S. Colgan, M.G. Hussain, P. Failler, and T. Vegh (2018). Toward a Blue
Economy: A Pathway for Sustainable Growth in Bangladesh. Washington, DC: The World Bank Group.
Cover Credit: Helena Eitel (Ocean Art Hub) and Pawan Patil.
REPORT NUMBER 126654
Toward a Blue Economy:
A Pathway for Sustainable
Growth in Bangladesh
Pawan G. Patil
John Virdin
Charles S. Colgan
M.G. Hussain
Pierre Failler
Tibor Vegh
A COLLABORATIVE PARTNERSHIP
Acronyms and abbreviations
BBS Bangladesh Bureau of Statistics
BOBLME Bay of Bengal Large Marine Ecosystem
CICES Common International Classification of Ecosystem Services
CMSP Coastal and Marine Spatial Planning
CO2Eq Carbon Dioxide Equivalent
DOWA Deep Ocean Water Applications
EEZ Exclusive Economic Zone
EIA U.S. Energy Information Administration
ENOW Economics: National Ocean Watch
ESESA Experimental System of Ecosystem Service Accounts
FOSP Future Ocean Spatial Planning
FY Fiscal Year
FYP Five-Year Plan
GDP Gross Domestic Product
GEF Global Environment Facility
GNI Gross National Income
GVA Gross Value Added
IEA International Energy Agency
ICT Information and Communication Technology
IPCC Intergovernmental Panel on Climate Change
INDC Intended Nationally Determined Contributions
ISIC International Standard Industrial Classification
IUU Illegal, Unregulated, and Unreported
IRENA International Renewable Energy Agency
LME Large Marine Ecosystem
MEA Millennium Ecosystem Assessment
MOEF Bangladesh Ministry of Environment and Forests
MPA Marine Protected Area
MSP Marine Spatial Planning
NOAA National Oceanic and Atmospheric Administration
NPV Net Present Value
OECD Organisation for Economic Co-operation and Development
REDD+ Reducing Emissions from Deforestation, Forest Degradation and the Role of Conservation, Sustain-
able Management of Forests, and Enhancement of Forest Carbon Stocks in Developing Countries
SDG Sustainable Development Goal
SEEA System of Environmental and Economic Accounts
SIDS Small Island Developing States
TEEB Economics of Ecosystems and Biodiversity
TEU Twenty Foot Equivalent Units
UN United Nations
UNDP United Nations Development Programme
UNEP United Nations Environment Programme
UNFCCC UN Framework Convention on Climate Change
WTTC World Travel and Tourism Council
WWF World Wide Fund for Nature
4 TOWARD A BLUE ECONOMY: A PATHWAY FOR
SUSTAINABLE GROWTH IN BANGLADESH
Glossary of terms
The sum of the economic activities of ocean-based industries, and the assets, goods, and services of marine
ecosystems (OECD 2016). Note that this definition does not imply any measure of the sustainability of these
Ocean economy
activities.
a. Ocean economy Sector
a. A specific area or group of industries in the ocean economy. Also includes groups of ecosystem services for
which markets do not exist and that are not reflected in measures of other industries or ecosystem services.
A concept applied to the ocean economy to reflect its level of sustainability, and defined here as simply
“sustainable development of the ocean economy.”
This definition is based on characterizations of the concept as:
• “A sustainable ocean economy, where economic activity is in balance with the long-term capacity of ocean
ecosystems to support this activity and remain resilient and healthy” (Economist Intelligence Unit 2015);
and
Blue economy
• “comprising the range of economic sectors and related policies that together determine whether the use of
oceanic resources is sustainable” (World Bank and UN DESA 2017).
The concept uses a metaphor with colors, describing an ocean economy as “brown” (not sustainable), or
“blue” (the equivalent of “green” and sustainable), or somewhere in between the two. The blue economy is
defined here as a sustainable ocean economy, in which economic wealth is balanced with the health of ocean
ecosystems and their natural assets, and is socially sustainable.
Natural capital has been defined as the stocks of Earth’s natural assets and resources, such as soil, water,
air, and biodiversity (Brown et al. 2016). The ocean’s natural capital is defined here as those natural assets
and resources that are linked to the ocean environment. These assets and resources can be further defined
Ocean’s natural capital
as (i) stocks of natural resources, such as offshore deposits of fossil fuels, minerals, and aggregates, and (ii)
spatially-defined stocks of “ecosystem assets” cycled and renewed as part of wider ecosystem functions and
which yield a flow of valuable ecosystem services (Brown et al. 2016).
Ecosystem services The benefits that people get from ecosystems (MEA 2005 and TEEB 2010).
The capacity or capability of an ecosystem to produce or provide an outcome (“service”) of potential use to
Ecosystem functions
people (Brown et al. 2016).
5
vwv
Table of contents
Acronyms and abbreviations 4
Glossary of terms 5
Acknowledgements 10
CHAPTER 1. EXECUTIVE SUMMARY 12
CHAPTER 2. INTRODUCTION: A GROWING OCEAN ECONOMY 18
CHAPTER 3. GLOBAL CONCEPTS AND MEASURES FOR THE BLUE ECONOMY 22
1.1 The Concept and Measurement of an ‘Ocean Economy’ 23
2.2 The Concept of A Blue Economy 31
2.3 Summary of Key Concepts 36
CHAPTER 4. CURRENT STATUS OF BANGLADESH’S OCEAN ECONOMY AND
ECOSYSTEMS (A BASELINE FOR TARGETS) 38
3.1. Current Policy Framework in Bangladesh for the Ocean Economy 39
3.2. Bangladesh’s Ocean Economy 42
3.3. Status of Bangladesh’s Ocean Ecosystems: The Natural Capital 55
3.4. External Drivers of Future Growth in Bangladesh’s Ocean Economy 60
CHAPTER 5. THE WAY FORWARD TO A BLUE ECONOMY IN BANGLADESH 66
4.1 Rationale for Recommendations to Inform a Coordinated Planning Process for Blue
Economy Policy Design and Delivery 67
4.2. First Recommendation: Improve Measures of the Ocean Economy 69
4.3 Second Recommendation: Model Policy Reform Scenarios for a Blue Economy, in Order
to Set Targets and Develop Public Investment Strategies. 70
4.4 Coordinating the Planning Process and Future Directions 72
6 TOWARD A BLUE ECONOMY: A PATHWAY FOR
SUSTAINABLE GROWTH IN BANGLADESH
vwv
CHAPTER 6. ANNEXES 82
Annex 1. Methods used 84
Annex II. Brief summary of the status of the ecosystems underpinning the
ocean economy 86
Annex III. Examples of countries’efforts to pursue a blue economy 89
Annex IV. Summary of concepts for incorporating natural capital into an
ocean account 93
Boxes
Box 1: OECD’s 2016 Measure of Output from the Global Ocean Economy 30
Box 2: Sustainable Development Goal 14 Summary: 32
Box 3: The Government of Bangladesh’s Definition of the Blue Economy Concept 34
Box 5: Blue Economy Principles Proposed by WWF 35
Box 7: Finding Opportunity in Responding to Climate Change in the Bangladesh Blue Economy 64
Box 8: Research on the Impact of Climate Change on Hilsa Shad Production and Consumption 65
Box 9: Summary of Blue Economy Approaches 69
Box 10: Reform Efforts in Capture Fisheries 71
Box 11: Modeling Scenarios for Mauritius’ Ocean Economy 71
Box 12: Key elements of a Blue Economy Policy Direction: D.I.R.E.C.T. + MAX 73
Figures
Figure 1: Bangladesh’s Exclusive Economic Zone 20
Figure 2: The Four Types of Capital Underpinning the Ocean Economy 25
Figure 3: The Global Ocean Economy Compared to the Top National Economies in 2010 30
Figure 4: The Portion of the Ocean Economy Measured by Markets 30
Figure 5: Two Concurrent Trends in the Global Ocean 31
Figure 6: Word Frequency in 35 Documents on Blue Economy 33
Figure 8: OECD’s Conceptual Framework for the Ocean Economy 35
Figure 9: Theoretical Illustration of the Relationship between Key Concepts 37
Figure 10: Composition of the Ocean Economy in Bangladesh, Percent of Gross Value Added (2014-15) 45
7
Figure 11. Trends in Bangladesh Marine Capture Fisheries Production (mt) 49
Figure 12: Composition of Marine Catch in Bangladesh 49
Figure 13: Global Averages for Carbon Pools (Soil Organic Carbon and Living Biomass) of Focal
Coastal Habitats. Tropical Forests are Included for Comparison. 52
Figure 14: Climatology of Kinetic Energy Extraction Rate for a Globally Homogenous Wind Turbine
Density of One per Square Kilometer, Including Turbine-Atmosphere Interactions 54
Figure 15: Illustration of Bangladesh’s Fish Stocks as a National Fish Bank 55
Figure 17: Projected Mismanaged Plastic Waste in 2025 59
Figure 18: External Drivers of Change Expected to Affect the Future Size of Bangladesh’s
Ocean Economy 60
Figure 19: Total Populations (Medium Fertility) 61
Figure 20: Annual Rate of Population Change 61
Figure 21: Forecasted Global Annual Installed and Operating Capacity of Offshore Wind, 2016-45 63
Figure A1.1: Process for Generating Estimates of the Output from Bangladesh’s Ocean Economy 84
Figure A2.1: Historical Sequence of Human Disturbances Affecting Coastal Ecosystems 87
Figure A2.2: Decoupling Economic Growth and Degradation of the Global Ocean Environment 88
Tables
Table 1: Ecosystem Services in Marine and Coastal Environments 26
Table 2: Components of the Global Ocean Economy 27
Table 3: Policies Currently under Review or Development, Related to the Blue Economy in Bangladesh 41
Table 4: Areas of the Indian Ocean under National Jurisdiction 43
Table 5: Annual Gross Value Added from Bangladesh’s Ocean Economy (Nominal US$ Millions) 46
Table 6: A Snapshot of Bangladesh Fisheries and Aquaculture Industries in 2012*vw 48
Table 7: Past Characterizations of the Status of Bangladesh’s Marine Fish Stocks 56
Table 8: Annual Output from Bangladesh’s Ocean Economy, Incorporating Costs of Environmental
Degradation 59
Table 9: Projected Global Market Trends for Ocean Economy Industries Operating in Bangladesh 62
Table A4.1: Indicative Net Ocean Product Account Matrix 94
8 TOWARD A BLUE ECONOMY: A PATHWAY FOR
SUSTAINABLE GROWTH IN BANGLADESH

Acknowledgements
T
his report is the result of a collaborative effort by the World Bank and European Union with ac-
ademic and institutional partners to provide timely technical assistance to the Government of
Bangladesh to support the nation’s blue economy aspirations. The work was guided by dialogue
with the Planning Commission, Ministry of Foreign Affairs, Ministry of Finance, Ministry of Energy,
Ministry of Fisheries, and other stakeholders.
The early stage findings and recommendations of this report were presented to a global and national
audience at the Second International Workshop on the Blue Economy held in Dhaka in November 2017,
and benefited from questions and comments from participants. Invaluable advice and guidance were
provided by Dr. Gowher Rizvi and Dr. Abul Kalam Azad, Advisors to the Prime Minister of Bangladesh,
Rear Admiral (Retd.) Khurshed Alam, Ministry of Foreign Affairs, and Captain Wahid Hasan Kutubuddin,
Head of the Blue Economy Cell, Government of Bangladesh, and their staffs. Consultations with Mr. Kazi
Shofiqul Azam, Secretary, and Ms. Mahmuda Begum, Additional Secretary, Economic Relations Division
(ERD), Ministry of Finance throughout the process are gratefully acknowledged.
We would like to gratefully acknowledge the external reviewers, Professor Bill Sharpe (recipient of the
Nobel Prize in Economics and Professor of Finance, Emeritus, at Stanford University’s Graduate School
of Business), Professor V.N. Attri (Chair in Indian Ocean Studies of the Indian Ocean Rim Association and
University of Mauritius), and Dr. Clare Jolly (Head, Innovation Policies for Space and Oceans Unit, OECD,
and lead author of the OECD Ocean Economy Report of 2016). World Bank peer reviewers Muthukumara
S. Mani, Lead Economist, Office of the Chief Economist, South Asia, and Xavier Vincent, Lead Fisheries
Specialist and Global Lead for Blue Economy, helped to improve the report and are acknowledged with
thanks. Excellent comments and suggestions were received from several World Bank colleagues: Urvashi
Narain (Lead Economist), Marcelo Acerbi (Senior Environmental Specialist), Tijen Arun (Senior Environ-
mental Economist), Milen Vollen (Senior Environmental Specialist), and Iqbal Ahmed (Environmental
Specialist).
Strategic direction was provided by Qimiao Fan, Country Director for Bangladesh, Bhutan, and Nepal,
Martin Rama, Chief Economist for the South Asia Region, and Kseniya Lvovsky, Practice Manager, En-
vironment and Natural Resources, South Asia Region. We acknowledge Karin Kemper, Senior Director,
Environment and Natural Resources Global Practice, for overall strategic leadership on the global blue
economy agenda. Through the preparation of this report, support and guidance were provided by
Rajashree Paralkar (Manager, Operations), Sanjay Srivastava (Program Leader), Zahid Hussain (Lead Econ-
omist), Asna Zareen (Operations Officer), Andrina Ambrose (Senior Operations Officer), and Sereen Juma
(Country Program Coordinator). Mehrin Ahmed Mahbub (Communications Officer) is also gratefully
acknowledged.
The team that prepared this report was led by Pawan G. Patil, Senior Economist, Environment and Natu-
ral Resources Global Practice, World Bank, in collaboration with Manfred Fernholz, Team Leader of Food
& Nutrition Security and Sustainable Development, the EU Delegation to Bangladesh. Core contributors
and co-authors are John Virdin, Director of the Ocean and Coastal Policy Program at the Nicholas In-
stitute for Environmental Policy Solutions at Duke University, Charles Colgan, Director of Research for
the Center for the Blue Economy at Middlebury Institute for International Studies, M. Gulam Hussain,
10 TOWARD A BLUE ECONOMY: A PATHWAY FOR
SUSTAINABLE GROWTH IN BANGLADESH