Asia is represented by case studies from India, Nepal and the Philippines. All three have quite different target groups. The FAO-sponsored Artisanal Fisheries Credit Scheme of Orissa, India, aims to establish direct and enduring links between marine fisherfolk and banks by introducing new fisheries credit policies and procedures incorporating the elements of simplicity, timeliness and flexibility. The ESCAP-funded project Enhancing the Role of Women in the Fishing Communities is, as its name implies, aimed specifically at women involved in all aspects of fisheries. Nepal's Aquaculture Development Project, funded by IFAD and the Asian Development Bank, assists small-scale fish farmers.
The chanelling of funds is effected differently in all three cases. The Bureau of Fisheries and Aquatic Resources oversees this in the Philippines project, while it is dealt with through banks in the Orissa project. The Agricultural Development Bank is responsible in Nepal.
INDIA
The Artisanal Fisheries Credit Scheme in Orissa, on the east coast of India, was initiated by the FAO Bay of Bengal Programme for Fisheries Development (BOBP) with credit provided by local banks. The aim was to support artisanal marine fisherfolk through the provision of simple, timely and appropriate loans, in the hope of partially replacing informal sources of credit which offer flexible terms but extremely high interest rates.
The BOBP is no longer involved but the participating banks have continued the credit programme, which had covered more than 3 000 fisherfolk households by mid-1988. Loan recovery rates have declined since the end of BOBP involvement, although they are still much higher than loan recovery rates of conventional rural credit programme operating in the same villages. The reason for declining loan recovery rates is reviewed district by district in the case study. The overall problem seems to lie in the diversion from original lending procedures and policies and the interference of local politicians and village leaders.
The BOBP scheme leaves several important heritages. The banks which participated in the scheme have continued to provide credit, thus fulfilling one of the original objectives of the scheme - that of establishing long-term credit facilities for credit to artisanal fisherfolk. The material benefits of the loans have also affected the standard of living of the fisherfolk through increased boat ownership and the application of more lucrative fishing methods such as prawn gillnets. By introducing a competitive supply of institutional credit at village level including quick and easy access and delivery, the BOBP credit scheme has contributed to a considerable reduction in the exhorbitant interest rates for informal loans.
NEPAL
The case study for Nepal describes government policy in fisheries development and the loan activities of the Agricultural Development Bank. The Aquaculture Development Project, funded by the Asian Development Bank and IFAD, is discussed. The advantages of promoting aquaculture development include the creation of employment for the under-employed rural population, the contribution of an important source of animal protein to the national diet, increased income generation and the earning of foreign exchange through exports.
A study conducted by the Agricultural Development Bank to assess the impact of loans at farm level revealed mixed results; while improved gross returns were recorded for new fish ponds funded through the Aquaculture Development Project, the overdue loan rate was quite high. Problems faced by fish farmers include the lack of technical advice, difficulty in obtaining fingerlings, problems of water supply and the lack of an organised marketing system. The survey respondents also complained of complex loan procedures and inadequate loans.
Certain improvements are clearly necessary. The credit needs of small-scale fish farmers should be catered to more closely. Adequate loans and technical advice should be provided and transport facilities improved. The marketing system for fish should also be improved, marketing margins lowered and fish marketing cooperatives established.
PHILIPPINES
The Philippines case study describes a credit scheme aimed specifically at women involved in fisheries, the Fisheries Development Loan Fund for Enhancing the Role of Women in the Fishing Communities, funded by the Bureau of Fisheries and Aquatic Resources (BFAR) and the Economic and Social Commission for Asia and the Pacific (ESCAP). Initiated in 1983, this programme has proved successful from the point of view of raising respondents' standard of living, of loan disbursements, and of loan repayment rates.
The Loan Fund has been applied to a number of activities, ranging from fish smoking, fish paste and Kroepeck making to fish trading and shellcraft. Loan procedures through the BFAR are very simple and loan application processing is effected very swiftly - from two to three weeks.
