DISCIPLINING FISHERIES SUBSIDIES:INCORPORATING SUSTAINABILITY AT THE

WTO & BEYOND

Fisheries Development Strategies: Past, Present, and Way Forward

Lidvard Grønnevet Environment Department

World Bank

Thursday March 1, 2007

•OVERVIEW

•DEVELOPMENT OVER TIME

•PRESENT WORLD BANK ACTIVITIES

•SUCESSFUL FISHERIES MANAGEMENT

•WAY FORWARD

TRENDS IN FISH PRODUCTION (FP) AND HUMAN POPULATION (HP).

Production: million metric tones. Population: billions.

1961 1976 2001 % 1961 to 2001

FP HP FP HP FP HP FP HP 40,5 3,1 72,6 4,1 142,1 6,1 250 97 World 100 100 100 100 100 100 23,6 1,0 40,7 1,1 33,2 1,3 40 30 Developed 58 32 56 27 23 21

17,0 2,1 31,4 3,0 108,9 4,8 540 128 Developing 42 68 44 73 77 79 8,0 1,7 15,9 2,4 76,2 3,9 857 129 LIFDC 20 55 22 59 54 64

Source: Hersoug 2004

Chart 1: Production from Capture Fisheries and Aquaculture, by Economic Class of Country

(Source: FAO FSTAT)

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

Met

ric T

ons

Other

Developing countries or areas

Developed countries or areas

Chart 2: Global Fish Production from Capture Fisheries and Aquaculture(Source: FAO FSTAT 2006)

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

Met

ric T

ons

Other Countries Aquaculture

China Aquaculture

China Capture

Other Countries Capture

Chart 3: Aquaculture Production by Environment and Economic Class of Country(Source: FAO FSTAT 2006)

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

Met

ric T

ons

Developing Country Marine

Developing Country Fresh

Developing Country Brackish

Developed Country Marine

Developed Country Fresh

Developed Country Brackish

Chart 4: Aquaculture Production, Excluding China(Source: FAO FSTAT 2006)

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Met

ric T

ons

Developing Country Marine

Developing Country Fresh

Developing Country Brackish

Developed Country Marine

Developed Country Fresh

Developed Country Brackish

TRENDS IN FISHERY PRODUCTS EXPORT AND IMPORTS

US $ billons

Region 1976 2001 Export Import Export Import World 7,98 8,84 56,10 (603) 60,26 (581) Developing 2,94 1,19 28,03 (853) 10,66 (796) LIFDC 0.96 0,44 10,82 (1072) 3,16 (618) LIFDC – China 0,83 0,44 6,72 (710) 1,34 (205) DEV./World % 37 13 50 18 LIFDC/World % 12 5 19 5 Source: Hersoug 2004/Kurien 2004

Exporters and importers of large pelagic fish (62% of exports)

EEZ fishedImporting country

Exporters and importers of invertebrates (62% of exports)

EEZ fished

Importing country squid

squidcrab, squid

octopus

lobster

shrimp

shrimp, squid

SHIFTING PARADIGMS IN FISHERIES DEVEOPMENT

PHASE 1 Direct production input: boats, gear, motors, ice-machines etc.

PHASE 2 Technical training: technical experts, local training institutions, training abroad

PHASE 3 Framework and management: laws, fishery regulations, management training, management experts

PHASE 4 Monitoring control and surveillance: boats, planes, software, training

PHASE 5 Co-management & institution building: setting up new institutions, modifying old ones

PHASE 6 Regional programmes, rights-based management (licences, IQs, IVQs ITQs

Anchoveta variation

El NiñoEl NiñoEl Niño

Evolution of the focus of fisheries sector assistance

Total World Bank costs and number of fisheries projects and fisheries project components

(1980- 2003)

PROFISHGlobal Program on

Sustainable Fisheries

OBJECTIVE: ‘strengthen governance of the world’s marine fisheries’

Two tracks:1. Country-level sector reform

•roadmaps to achieve effective sector governance and reform•aligning donor interventions•capacity building

2. Regional and global initiatives •building regional and global awareness and consensus•using improved fisheries management tools

the rent drain• telling the story of overfishing in economic terms• make country-level estimates of rent loss to support

reforms • build economic arguments to justify the political and social

costs of change – a focus on finance ministers• “Where is - Fish in - the Wealth of Nations?” – track the

depleting capital account

and to follow the estimates …

• develop an arsenal of tools to capture lost rent, including• a roadmap for the political economy of reform• address the social costs of adjustment (e.g. fleet reduction) • build equity into change management (pro-poor) Preliminary global estimate:

US$ 50 billion/ year

SDN Vice Presidency for

Sustainable Development Integration of ESSD and INF to

SDN

• The new Vice Presidency for Sustainable Development will work across all spaces – from the biggest cities to the smallest towns, at the global, national, and local levels –

Agriculture - Fisheries

• ~ 20% wheat & 5% of rice are exported;• Exports in 2000 : 26 million tonnes of product worth

55 million USD;• ~ 40% of fish produced are exported; • Imports : 27 million tonnes worth 61 million USD.

INDICATOR AGRICULTURE FISHERIES

Tenure/ ownership private propertyprivate propertytransferable rightstransferable rights

common property, common property, poorly-defined rightspoorly-defined rights

Resource/ crop fixed, measurablefixed, measurable mobile, hiddenmobile, hidden

Capital fixed (farm, equip.)fixed (farm, equip.) mobile (vessels)mobile (vessels)

Weather impact seasonalseasonal daily + seasonaldaily + seasonal

Harvest/ market seasonal, ‘mono’seasonal, ‘mono’ daily, multispeciesdaily, multispecies

Products durabledurable highly perishablehighly perishable

Successful Fisheries Management

Dimensions for success in fisheries management:• Economic - meeting wealth and efficiency objectives• Societal - equity objectives; distribution and access• Biological - meeting conservations objectives • Political – stability in relation to political changes

Require institutional capacity to define balance and to implement responsible over timeRequire institutional and policy environment that creates incentives to conserve fish and optimize wealth generationPolitical commitment and will are essential

(From Bostock 2005)

Changes in catch and season length in the central Gulf of Alaska halibut fishery from 1970 to 1994, before the

introduction of IFQs

How subsidies induce overfishing

MEY

MSY Bionomic equilibrium (BE)

Total cost of fishing effort (TC)

Total Revenue (TR)

Fishing effort (E)

TR & TC ( $)

E1 E2 E3

Max. rent

TC1

TC2BE2

BE1

TR

TR& TC ($)

E3 E4 Fishing effort (E)

Cost-reducing subsidies

Gordon Schaefer bioeconomic model

LESSONS FROM NAMIBIA:• Right based fisheries management system. Gives

incentive to harvest effectively. Generates considerable resource rent.

• Effective enforcement of rules. Cooperation and support from fishers.

• Payment (fees) for the right to fish. Establishes the principle that broader society has the right to benefit from the productivity of the natural resources. Also: that management of the fishery is part of the cost of fishing. (Ensures that portion of the rent does not become capitalized into the trading of rights.)

• Overcapacity can create economic vulnerability that can seriously undermine the robustness of the

management system. (P. Manning 2005)

SIERRA LEONEObjectives

The aims of the paper are to:

(i) present an assessment of the fisheries sector in Sierra Leone, highlighting the potential opportunities for contributing to national development, and the major issues which need to be addressed in order for this to be successful and sustainable;

(ii) outline a broad strategy for fisheries development in Sierra Leone; the main features of this strategy would be expected to form the basis of a dedicated programme of support by donors to underpin and enable its successful implementation in the future.

Focus: wealth-based approaches that aim to optimize economic returns from fisheries for the long-term benefit of society in Sierra Leone.

Goal:

to ensure that the fisheries sector makes a significant contribution to sustainable development and pro-poor economic growth in line with the national PRSP.

FSS will focus on four sets of outputs: Opportunities for sustainable fisheries development -

identified, assessed and supported; An enabling environment for sustainable fisheries

development will be created and enhanced over time;Capacity will be created to capitalize on opportunities, in

both the public and private sectors, to create and sustain both the enabling environment and fisheries management systems;

Fisheries management system options will be analyzed, leading to the establishment and operationalisation of appropriate fisheries systems in Sierra Leone over time.

www.worldbank.org/fish