Indicators of ineffective fisheries management
Rashid SumailaFisheries Economics Research Unit
UBC Fisheries Centre
Coastal Zone 2007, Portland, Oregon July 25, 2007
Three indicators
• Poverty index;
• Policy sensitivity index;
• Subsidy indices.
Fisheries subsidies: A definition
Fisheries subsidies are financial payments
from public entities to the fishing sector,
which makes the sector make profitable than
otherwise.
Why the concern about subsidies?
• Subsidies are substantial and have to be paid by someone;
• Subsidies have socio-economic, distributional and trade impacts on fishing communities, regions and countries;
• Fisheries subsidies recognized worldwide as contributing to over-fishing.
Why the concern about subsidies?
• Overcapacity and overfishing• overcapitalization and subsidies
Fishing Intensity
19001900
19991999
Biomass Biomass
Courtesy V. Christensen
1.8-2.51.5-1.81.2-1.50.9-1.20.7-0.90.6-0.70.4-0.60.3-0.40.2-0.30.1-0.20-0.10-0
Biomass t·km-2
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
Identifying & categorizing subsidies
• ‘Good’ subsidies:
• Fisheries management and services;
• Fisheries research and development.
Identifying & categorizing subsidies
• ‘Bad’ subsidies:• Tax exemption programs; • Foreign fishing access payments; • Boat construction renewal and modernization
programs;• Fishing port construction and renovation programs; • Fishery development projects and support services;• Marketing support, processing and storage
infrastructure programs;
• Fuel subsidies.
Identifying & categorizing subsidies
• ‘Ugly’ subsidies:
• Fisher assistance packages;
• Vessel buyback programs;
• Rural fishers’ community development programs.
Computing subsidy indices
• Created a database of the 12 types of subsidies identified for 144 maritime countries for 1995 to 2005;
• Use the database to re-estimate the magnitude of subsidies;
• Use the re-estimated subsidies to calculate a number of indices.
Total global subsidies
0 3 6 9 12 15 18 21 24 27 30 33 36
Fuel subsidies
Fisheries mngt & services
Fishing port construct. & renovation
Fish. develop. projects & services
Market., process., & storage infrast.
Fisher assistance
Boat construct., renewal & modern.
Tax exemption
Fisheries R & D
Fishing access agreements
Rural fisher community develop.
Vessel buyback
Global total
Subsidy amounts (USD billion)
Developing countries
Developed countries
Comparing estimates
All except fuel
Fuel
0
10
20
30
40
50
60
FAO (1992) This study Milazzo (1998)
Subs
idy
amou
nts
(USD
billi
on)
Subsidies by category
0
5
10
15
20
25
The Good The Bad The Ugly
Subs
idy a
mou
nts
(USD
billi
ons
) Developed countries
Developing countries
Subsidies by geographical region
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Asia (All)
Europe
Lat. America & Caribbean
North America
Sub Saharan Africa
North Africa & Mediterranean
Oceania
Subsidy amount (billion USD)
Good subsidies Bad subsidies Ugly subsidies
Subsidies by major fishing nations
0
1
2
3
4
5
6
Japan EU China Russia USA Peru
Subs
idy a
mou
nt (U
SD b
illion)
.
Good subsidies Bad subsidies Ugly subsidies
Subsidy indices
• Percentage of ‘Bad’ subsidy to the sum of ‘Bad + Good’ subsidy;
• Ratio of landed value/‘Bad’ subsidy;
• Amount of ‘Bad’ subsidy per fisher;
• Percentage of fuel subsidy to landed value of bottom trawlers active in the high seas.
Indices: Top 10 performers
Countries
Good/(Good+B
ad) Country
LV/BadSubsid
y Country
Bad ($)/ Fisher
New Z. 1.0 Nigeria 487 New Z. 0
Nigeria0.94 Peru 132 Nigeria 1.25
Peru 0.84 UK 18 China 178
USA 0.77 Netherlands 18 Peru 204
Ireland 0.76 Australia 17 Indonesia 220
Sweden 0.68 USA 16 Eqypt 245
Japan 0.63 Sweden 16 Vietnam 268
Poland 0.54 Ireland 15 Ghana 317
UK 0.50 Chile 14 Myanmar 346
Canada 0.44 Canada 11 UK 370
Indices: Bottom 10 performers
Country
Good/(Good+Ba
d) CountryLV/TotalSubsidy Country Bad ($)/ Fisher
Korea 0.08 Spain 3 France 11565
Yemen 0.07 Bangladesh 3 Yemen 14845
Taiwan 0.07 Russia 3 Canada 19393
Spain 0.06 Philippines 3 Portugal 26962
India 0.06 Yemen 3 Argentina 31027
Thailand 0.05 Namibia 2 Japan 42192
Brazil 0.04 Ghana 2 Australia 73994
Turkey 0.02 Denmark 1 Namibia 101859
China 0.01 Brazil 1 Iceland 122005
Malaysia 0.00 India 1 Denmark 342717
Fuel subsidy estimates to high sea bottom trawl fleet
CountryFuel used(m liters)
Fuelsubsidy(US$m)
Landedvalue
(US$m)
Subsidy perLanded value
(%)
Japan 0.25 25.44 125 20
Australia 0.20 17.38 9 11
South Korea 0.18 16.37 92 19
Russia 0.18 6.97 126 13
Iceland 0.18 1.03 33 5
Ukraine 0.15 3.66 20 18
Faeroe Isl. 0.15 2.85 45 6
Estoniaj 0.15 1.26 27 5
Lithuania 0.15 1.78 10 5
Latvia 0.15 0.46 7 4
France 0.14 0.29 5 7
Spain 0.10 0.37 103 7
Total 78 601 13
Concluding remarks
• ‘Bad’ subsidies constitute the bulk of subsidies paid by governments to their fishing sectors – big barrier to effective fisheries management and governance;
• Countries perform differently under different subsidy indices, revealing different areas for improvement in fisheries management and governance.
Thanks for your attention
EC Contract No. 003739
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