THE WORLD BANK I WORLD BANKGROUP FISHERIES SECTOR Fisheries and aquaculture make a significant contribution to BCound: Theiro Mnar Myanmar's economy. The fisheries sector contributes roughly 2 percent Country Environmental of Myanmar's gross domestic product (GDP), 50 percent of animal anlysipA) wash dhevDelpetnt protein consumption, 6 percent of employment-rising to as high partnership with the Department as 34 percent in some coastal areas-and up to 56 percent of state/ ofAFshriultres Livok ny regional government revenue. The over-exploitation of Myanmar's ofAgriculture, Livestock and fish stocks has contributed to a decline in its marine and freshwater Irrigation (MOALI) to provide fish resources. The sector is now underperforming both commercially comprehensive overview and and as a source of livelihoods for small-scale fishing communities. enhance understanding of the In response, the government is committed to improving monitoring, fisheries sector This will enable control and surveillance and exploring the opportunities for boosting the World Bank to effectively suppWord govenm etieigng aquaculture and fisheries production. support government in designing a set of specific actions towards In 2016, 3 million metric tons of fish were produced in Myanmar achieving inclusive development (FAO 2018) with production spread evenly between marine/inland in the fsheries sector fisheries and aquaculture. Methodology: The analysis Over 3.2 million people are employed in the fisheries sector, was completed through a 800,000 full-time and 2.4 million part-time (World Fish 2018). combination of research, national Around 1.9 million households are located in the coastal 5ones of level consultations and feld Myanmar and dependent on marine and coastal resources (BOBLME missions in the coastal regions 2014). of Rakhine, Ayeyarwady, and Tanintharyi and focused on Marine and coastal ecosystem services are valued at US$8.5 billion marine fsheries, freshwater a year almost 60 percent of which is contributed by mangroves fsheries, and aquaculture. and coral reefs (BOBLME 2014). Recent modelling estimated that mangroves reduce the impact of natural disasters in coastal areas Photos (from top clockwise): [hineThwe Wynn, RECOFTC, by an average of US$165 million per year (Losada et al. 2018). Michael de Alessi, RECOFTC Economic contribution It is difficult to accurately measure the overall contribution of fisheries. National gross domestic product (GDP) statistics combine the fisheries sector with livestock. However, in 2015/16 these two sub- sectors together accounted for 8 percent of GDP (Belton 2018). In 2016/17, exports from the fisheries sector generated over US$600 million in export value (438,710 metric tons) (DOF 2017). Export markets for higher-value fish and fish product products are also driving significant production, processing and harvesting investments and are an important contribution to export earnings and local livelihoods in Myanmar. photo: @Rory Hunter Marine fisheries Aquaculture in Myanmar is comprised of three sub- sectors: It is estimated that marine fisheries produce between 1 million (FAQ data) to 3 million metric tons per 1. Inland (freshwater): Accounts for 95 percent yearllio (DFAO 208) Hoever,io-eoitons ofr fof production, with 90 percent of farms in the year(Ayeyarwady Delta, most within a 25-50 km radius stocks has contributed to a severe decline in marine fish resources, reportedly by as much as 90 percent ofYangon. since 1979/80 (Rrakstadt et al. 2015). Sustainable 2. Coastal aquaculture: More than two thirds of harvest levels and fishing methods must be effectively Myanmar's shrimp ponds are in Rakhine State, with controlled to increase production from marine fisheries, the remainder in the Ayeyarwady Region. This will increase revenue for commercial operations 3. Marine aquaculture development: Still very limited and strengthen livelihoods among small-scale fishers. with some farming of barramundi in cages in Tanintharyi region. Freshwater fisheries The government estimates that freshwater capture Legal and institutional framework fisheries production is 1.6 million tons per year The fisheries sectors are governed by the following (DOF 2017). Large declines in high value species of laws: (i) Myanmar Marine Fisheries Law (1990), (ii) freshwater fish were reported by fishers throughout the Freshwater Fisheries Law (1991) and (iii) Aquaculture Ayeyarwady Basin, which covers around 60 percent of Law (1989). The Myanmar Marine Fisheries Law (1990) Myanmar's land area (Baran et al. 2018). is currently being revised. Aquaculture production The DOF is the primary agency responsible for fisheries management, comprising 2,469 staff at the Union, As of 2015, Myanmar was the world's eighth largest State/Region, District, and Township levels. DOF has a aquaculture producer (excluding aquatic plants research and development division but it not supported and non-food products), producing an estimated I with adequate funding and resources. Additional million metric tons annually, according to FAO. The financial and human resources are needed for the DOF importance of farmed fish in the domestic market is to support the sustainable development of the fisheries growing, accounting for around 21 percent of the fish sector. consumed nationally (Belton et al. 2015). There is also limited capacity for the enforcement of It is estimated that aquaculture's contribution to monitoring, control and surveillance (MCS) activities GDP is 0.6 percent and, combined with fisheries, in marine fishing areas. Only 0.8 percent of the annual accounts for around 2 percent of GDP. This is below budget of the MOALI is allocated to DOF despite the the contributions of the aquaculture sector alone significant contribution of the fisheries sector to in neighbouring countries, such as Bangladesh (3.6 regional government revenue, as high as 56 percent in percent of GDP) and Vietnam (5-6 percent). Ayeyarwady Region. Issues with land tenure The World Bank Sunken Billions Revisited report used 2012 landings data to calculate that ecologically and Aquaculture development is constrained by the economically well-managed fisheries could produce Farmland Law (2012) and the Vacant, Fallow and Virgin an additional US$54.8 billion in value throughout all (VFV) Land Management Law (2012). The Farmland of Asia. In 2012, Myanmar accounted for 2.7 percent Law (2012) restricts the conversion of land registered (or 1,131,500 metric ton (MT)) of the total marine for rice cultivation for any other purposes without capture fisheries production from Asia (41,205,165 MT). authori6ation being given. The VFV Land Management Using fisheries export data to estimate the potential Law has contributed to the weakening of land tenure for gains from better-managed fisheries also reveals an small land-holders. additional value of US$1 billion. Devolving responsibilities to Setting and enforcing species-specific minimum siSe and harvest limits provides another economic States/Regions opportunity. In just 10 years, it could increase offshore Devolution and co-management approaches within biomass in Rakhine and Tanintharyi by factors of 5 and 3 and increase annual offshore harvest by 70 and 30 per fisheries and across other ocean sectors can form the basis for reducing conflict, promoting inclusive growth cent, respectively (EDF-WCS 2019). and creating a blue economy along Myanmar's coast. The value of aquaculture production could also be The Ayeyarwady Region Freshwater Fisheries Law substantially increased. This could be done by raising (2018) recogniSes the rights of communities to form the productivity of existing farms to levels similar to community fisheries associations. The Rakhine State neighbouring countries, by diversifying production Freshwater Fisheries Law (2014) provides a legal basis to include more valuable species, and by allowing for community fisheries and co-management. The Mon expansion of the area under production. State government enacted a State Fishery Law that It is estimated that Myanmar's actual aquaculture covered freshwater and inshore areas, although the production accounts for only a half of Thailand's, one legality of that law has not yet been tested. quarter of Bangladesh's, and one-seventh of Vietnam. Figure 1 presents an analysis of the volume and Fisheries co-management composition of aquaculture production in Myanmar, Community-based fisheries management provides Bangladesh, Thailand, and Vietnam. opportunities to promote more equitable distribution of benefits from inland and inshore fisheries. It also contributes towards balancing the competing Aquaculture production for Myanmar, Thailand, demands between improving fisheries governance and Bangladesh, and Vietnam, 2016 safeguarding the livelihoods of the poor. 4.00 In addition, co-management provides significant 3.47 opportunities to reduce local conflicts in coastal 3.50 and floodplain areas. Major sources of conflict in the 3.00 fisheries sector are: 22.50 22 * competition in marine fisheries between commercial 2 offshore vessels and small-scale inshore fishers. .0 1.50 * between farmers and fishers over the management 0 1.02 0.96 of water levels on floodplains. 1.00 0.50 * between large fish farms and former rice farmers/ 050 fishers over confiscated land. O 1. Myanmar 2. Myanmar 3. Thailand 4. Bangladesh 5. Vietnam (estimate) Economic opportunities from . Carps Crustaceans .Other freshwater fishes Molluscs improved governance * Tilapia U Seaweeds Marine & coastal fishes It is estimated that a better-managed fisheries Note: Column 1 is an alternative estimate of likely levels of production for Myanmar, based on sector in Myanmar could add about US$1 billion in yields of fish and shrimp derived from farm surveys. This alternative estimate suggests that value to Myanmar's economy (World Bank 2017). Myanmar's actual aquaculture production is about half of reported production. FAO 2018; authors' own calculations However, aquaculture has a relatively high economic W ay Forward productivity. Converting just 1 percent of the land currently under paddy to small fish farms could The CEA recommends several actions to improve the theoretically generate additional value of US$193 fisheries sector in Myanmar. million. This would take aquaculture's contribution to Short term actions include: agricultural GDP to 3.7 percent and its contribution to national GDP to 0.94 percent. * Carry out a public expenditure and institutional review of the DOF. This is needed to identify policy Ongoing policy reforms reforms and recommendations for improving DOF technical capacity and MCS. Value chain Parliament recently mandated the installation of a innovations can help to reduce poverty and improve vessel monitoring system (VMS) to track the location food security in coastal areas. of offshore fleet. DOF is now in the process of issuing a tender notice to solicit proposals from international VMS prC o t analysis of ina t re needsoto service providers. According to Danish International in cluse and climaeesilintlgrowth Development Agency (DANIDA), which is supporting aquacueture Thi oul n o iclue an efforts by DOF to install VMS on offshore vessels, GOM assssn t o the te r uacustei will fund and build the onshore infrastructure and the exi t servors dt lease software necessary for the managing VMS. *Explore options for strengthening the valuation, MOALI has also set targets to improve fisheries and pre tion and stratno ng rve and aquculurein he griultre eveopmnt traegyprotection and restoration of mangroves and aquaculture in the Agriculture Development Strategy coral reefs. This is needed to protect coastal (ADS). The Draft National Aquaculture Development communities from climate impacts and secure Plan (2018) sets further objectives for sustainable multiple ecosystem services linked to livelihoods. development of the fisheries sector. Development assistance to Myanmar's fisheries to date has generated promising results. However, the scale of investment and implementation has not been large enough to bring about significant transformation in the sector. Most projects focus primarily on producers or communities. Less attention is paid to supporting value chain issues, including infrastructure and credit supply and many of the governance and policy issues affecting both aquaculture and fisheries (such as land use policy, enforcement in off-shore fishing activities). V photo: @Rory Hunter REFERENCES Baran, E., R. M. Nwe, T. Swe, S. Hansein, P. Reomonyneath, R. Sokvisal, Z. Lunn, and P. Gatke. 2018. Consultations of Fishers on Fishery Resources and Livelihoods in the Ayeyarwady Basin. Ayeyarwady State of the Basin Assessment (SOBA) Report 4.3. Myanmar: National Water Resources Committee (NWRC). Belton, B. 2018. "The Status of Aquaculture in Myanmar in Regional Context, and Opportunities for Sustainable Growth." Unpublished consultancy report prepared for the World Bank. Belton, B., A. Hein, K. Htoo, L. S. Kham, U. Nischan, T. Reardon, and D. Boughton. 2015. "Aquaculture in Transition: Value Chain Transformation, Fish and Food Security in Myanmar." International Development Working Paper 139, Michigan State University, Michigan. BOBLME (Bay of Bengal Large Marine Ecosystem). 2014. Assessing, Demonstrating and Capturing the Economic Value of Marine & Coastal Ecosystem Services in the Bay of Bengal Large Marine Ecosystem." BOBLME-2014-Socioec-02, Food and Agriculture Organisation of the United Nations (FAO), Bangkok. DOF. 2017. Fishery Statistics 2017. Nay Pyi Taw: Department of Fisheries, Republic of the Union of Myanmar Ministry of Livestock, Fisheries and Rural Development. EDF-WCS (Environmental Defense Fund & Wildlife Conservation Society). 2019. "Myanmar Multispecies Simulation Model." https://kristinkleisner.shinyapps. io/myanmar-mi6er-_region/. FAO. 2018. "FishStat database". http://www.fao.org/fishery/statistics/software/fishstatj/en. Accessed 22 November 2018. Krakstad, J.-O., B. Krafft, 0. Alvheim, H. Thein, and P. Psomadakis. 2015. Cruise Report Dr. Fridtjof Nansen", Myanmar Ecosystem Survey. FAO-NORAD Technical Report, EAF - N/2015/5. Losada, I. J., P. Men6nde, A. Espejo, S. Torres, P. Dia6-Simal, S. Abad, M. W. Beck , S. Narayan, D. Trespalacios, K. Pfliegner, P. Mucke, L. Rirch. 2018. "The global value of mangroves for risk reduction. Technical Report." The Nature Conservancy, Berlin. The World Bank. 2017. The Sunken Billions Revisited: Progress and Challenges in Global Marine Fisheries. Worldfish. (2018). "Myanmar" downloaded from https://www.worldfishcenter.org/country-pages/myanmar. This policy brief is based on World Bank. 2019. Myanmar Country Environmental Analysis. Fisheries Sector Report. Washington, DC: World Bank.