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240 *zP World Bank Discussion Papers

Fisheries Series

ManagingRedundancy inO)verexploitedFlisheries

Joshua John

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240 1 World Bank Discussion PapersFisheries Series

ManagingRedundancy inO)verexploitedFisheries

Joshua John

The World BankWashington, D.C.

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John, Joshua, 1930-Managing redundancy in overexploited fisheries / Joshua John.

p. cm. - (World Bank discussion papers; 240. Fisheriesseries)

Includes bibliographical references.ISBN 0-8213-2839-51. Fishery management. 2. Fisheries-Economic aspects.

3. Fishers-Supply and demand. I. Title. II. Series: World Bankdiscussion papers ; 240. III. Series: World Bank discussion papers.Fisheries series.SH328J62 1994338.3'727-dc2O 94-15942

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No. 19 Study of Intemational Fishery Research

Booklet

Study of Intemational Fishery Research: Summary Report

Contents

Foreword vii

Abstract ix

1 Introduction 1

2 Fishery management challenges and the problem of exit 3Policy objectives 3Open access versus property rights 4Economic theory 5Management control methods 6Considerations concerning the exit problem 7

3 Prescriptions for facilitating exit 9Industrial fisheries 9Artisanal fisheries 10Case studies 12

4 Summnary and conclusions 17

Appendix A Draft terms of reference for a working party on fishery exit 21

Appendix B Terms of reference for this research paper 23

Bibliography 25

Tables1 Control methods in eleven countries 62 Control methods and effect on employment 7

Figures1 Impact of license limitation at the firm level 52 Impact of license limitation at the fishery level 6

v

"ILwI ~ Foreword

In the years since World War 1I the world's fishing To avoid crises in world fisheries requiresfleet has grown at a faster rate than fish production. the establishment of appropriate management re-As a result, over the past decade the number of gimes-ideally, ones based on a satisfactory form ofmajor, underexploited fish stocks has decreased property rights. And there is an urgent need tofrom nearly thirty to only seven. The shocking real- reduce fishing effort at the global level. But reduc-ity is that one of three major stocks is overfished. ing fishing effort exacerbates unemployment andAccording to the Food and Agriculture Organiza- leads to redundancy of vessels, and is thereforetion, in 1989 the world fishing fleet operated at a loss a highly sensitive political issue. Accordingly, aof $22 billion, not counting capital expenditures or fleet reduction strategy must incorporate specialrevenue from unreported catches. considerations.

Management regimes that treat fishery re- This paper represents a first attempt to deal withsources as common property and allow open access the problem of "exit" of redundant labor and capi-to the resources have been the main cause of the tal from overexploited fisheries. It recapitulates theovercapitalization of fishing fleets. Employment in- existing knowledge, provides insight into a numbercen-tives offered to shipyards, attractive financing of experiences in both large- and small-scale fisher-schemes for prospective boat owners, and fishing ies, and paves the way for further action. We hopefleet subsidies have also contributed significantly to that the paper will encourage fishery administratorsthe world's excess catch capacity. In industrial coun- and donor agencies alike to take concrete steps in atries heavy subsidies are what allow many fleets to concerted manner toward more rational exploita-continue operating, a policy that will only lead to tion of fishery resources.further depletion of fish resources.

Eduardo A. LoayzaFisheries AdviserAgriculture and Natural Resources DepartmentTechnology and Services Division

vii

Abstract

Excess capacity in fishing and fish processing char- tas appear to offer a solution to the problem of over-acterizes many, if not most, fisheries today. Because capitalization and overfishing. For artisanal fisher-the capital and labor employed in fisheries are gen- ies, an appropriate strategy is integrated (horizontal)erally use-specific, their exit is often painfully slow. community development.This paper reviews and catalogs current approaches The continuing dual existence of industrial andfor facilitating the exit of redundant capital and la- artisanal fisheries in developing countries poses spe-bor from overexploited fisheries. It begins with an cial challenges to fishery management, which needsexamination of fishery management objectives and to recognize and treat each type of fishery differ-the different measures used to achieve these objec- ently. For artisanal fisheries, economic diversifica-tives. It then discusses, in the context of the tion and community-based nonfishery solutionschallenges confronting fishery management, the need to be pursued and made an integral part of anyproblems surrounding the exit of capital and labor comprehensive adjustment package. Such initiativesfrom overexploited fisheries. can be effective only if several agencies come to-

The paper examines approaches that can be gether in cooperation with the community and itsused to facilitate exit from both industrial and people. Fishery development must refocus on rais-artisanal fisheries, citing several relevant case stud- ing the standard of living of fishing communities, noties as well as the experience of different countries. just raising efficiency in fishing, fish processing, andFor industrial fisheries, individual transferable quo- fish marketing.

ix

Introduction 1

This report reviews and catalogs some current ap- nomic diversification of fishing communities, hori-proaches used to facilitate exit of labor and capital zontally integrated community development, laborfrom overexploited fisheries, both industrial and mobility, and supplementary and alternative employ-artisanal. The term "exit" refers to the voluntary or ment opportunities for fishermen. The report dis-forced departure of labor and capital. The report cusses implications of these approaches for fisherybrings together comments and recommendations managers and donor agencies. A selective bibliog-from many authors, including observations on indi- raphy is included, covering most authors and com-vidual transferable quotas (ITQs), nonfishery eco- mentators on the subject.

The author acknowledges the helpful comments and suggestions of Dr. AnthonyT. Charles, Dr. Max N. Aguero, Dr. Mike Sinclair,

and Mr. Eduardo A. Loayza.

l

Fishery management challenges2i-I~ ~ 1 and the problem of exit

A substantial body of research exists concerniing the Policy objectivesdeterminants and control of entry into fisheries.Factors influencing exit from fisheries are equally What is to be accomplished through efforts to re-complex but less well understood. In many fisher- duce participation in the fishery? The extent toies, there is perceived to be an excessive level of which exit is needed and the manner in which it isfactor inputs relative to that needed to catch the to be carriedoutdependon thegoalsasocietywishesavailable fish, a problem variously termed "excess to achieve through its fishery operations. Unfortu-capacity," "overcapitalization," or simply "too many nately, these goals are often disregarded on the as-fishermen chasing too few fish." Fishermen them- sumption that the objectives of policy designersselves represenit a variety of constituencies and match those of the society they represent. This mayinterests. make policy development easier in the short term,

Many complexities warrant consideration in but less realistic and more failure-prone in the longaddressing the issue of exit from the fishery. Should term. A common manifestation of this attitude is thepolicies to reduce participation in a fishery focus on assumption that only one fishery goal is valid. Forconservation, economic, or social concernis? Is the example, the single-minded pursuit of maximumtarget to be exit of fishermen, fishing capital, or fish- economic efficiency leads to reducing participationing power? A balanced and scientific approach to to the fewest fishermen capable of harvesting thethese questions must address a variety of theoreti- available catch.cal and practical considerations. In reality, it is important to appreciate the com-

It is useful to begin an examination of the exit plex social, economic, and cultural goals that driveissue against the backgrounid of three broad man- most artisanal fisheries. If incomes in fishing commu-agement objectives, as defined by Lawson (1984): nities are to increase, it is necessary to do more than

* Conservation: maintaining biological re- develop fishery management programs, becausesources management programs alone fail to deal adequately

* Economic: maintaining fisheiy production, with fishermen who are displaced (Smith 1981).the economic objectives of which are higher There is growing realization that sustainableincome for fishermen, optimum utilization of fishery development requires more holistic and in-resources, maximum employment, and devel- terdisciplinary research, with a reasonable compre-opment of the rural and urban economy hension of interactions between the fishery and the

* Social: maintainingequityofincomedistribu- ecosystem, as well as with the society as a whole.tion. Charles (forthcoming) notes that "by and large fish-

Lawson also mentions a fourth objective, reduc- ery management and development efforts have his-ing overcapacity in the fishing industry, which is torically lacked a system focus." He attributes pastbeyond the scope of this report. failures to a neglect of the pervasive interactions

3

MANAGINC REDUNDANCY IN OVEREXPLOITED FISHERIES

between the fishery and other components of the management and development, based on modelsecosystem and the society: that are well established in various parts of the world:

* Self-regulation and territorial use rights inThis neglect has led to a loss of socio- fishing, or TURFs (Christy 1982)economic and community sustainability, e Cooperative managemenit, based on joint ef-which in turn threatens ecological sustain- forts of fishermen, community, and govern-ability. The potential for integration extends ment (Pinkerton 1989).beyond the fishery to encompass other These ideas, which tend to be based on develop-ocean and coastal development activities. ing country and indigenous experiences, are not wellIndeed, fishery sustainability may be best developed theoretically but may outperform indus-insured when fisheries programs take place trial country models, such as buybacks and ITQs.within aframework ofintegrated coastal and They are especially suited to small-scale fisheries,community development. (Charles forth- producing higher levels of fishery efficiency (by co-coming) ordinating effort) and regulatory efficiency (by re-

ducing conflict and decentralizing management).Aguero and Costello (1986) make the point that

An appropriately designed fisheries man-if fisheries management is to be integral, it agement system is unlikely to lead to exitmust be based on information, data, and from fishing unless this exit is economicallyinterpretation which is also integral. The justified and the aggregate benefits exceedneed is for research leading to an integral the aggregate costs. The problem is to dis-analysis and understanding of the fisheries tribute the costs and benefits appropriately.sector where biological, technological, so- This may be socially impossible and in ad-cioeconomic, cultural, and institutionial fac- dition may not happen when possible.tors are properly accounted for in active Hence, there will be a good deal of rationalinteraction with other components. (p. 819) opposition to a structural rearrangement of

fisheries even when the prospective aggre-A key question in examining fishery exit options gate benefits exceed costs. (Arnason, per-

is determining an appropriate target for the even- sonal communication, 1992)tual number of fishermen:

Open access versus property rightsTo accomplish this, it is crucial that bothnational fisheries administrations as well as Beddington and Rettig (1983) describe the dissipa-donor agencies fully understand the multi- tion of economic rent that occurs in open-accessobjective nature of fisheries. If the overrid- fisheries compared with rights-based fisheries:ing goal is either ease of management ormaximum economic efficiency, one might In an uncontrolled fishery, initially, as theseek to arrive at the minimum number of fishery develops, fishermen experience highfishermen that can still harvest the available catch rates on the abundant resources andcatch. However, it is naive and failure-prone make high profits. This attracts other fish-to base policy entirely on this one objective. ermen into the industry and encouragesIn fact, exit policies and approaches must those already there to increase their invest-be designed to ensure simultaneous achieve- ment. Increasing fishing pressure then re-ment of ecological, socioeconomic and duces the fish stock and increases competi-community sustainability. (Charles, per- tion amongst the fishermen for thesonal communication, 1992) dwindling resources. This reduces catch

rates and hence profits to a level where theThere is an increasing awareness among fishery earnings merely cover the costs of the labor

planners and analysts of two promising options for and capital employed to a level where the

4

Fishey management challenges and the problem of exit

economic rent (value of landings minus men, because the theory is based on standardcosts of catching and delivering the fish) is microeconomic assumptions about the behavior ofcompletely dissipated. (p. 1) firms rather than on1 a full multidisciplinary analysis.

Consider an initially unregulated, open-accessArnason (1994b) describes the effects that oc- fishery: lack of restriction on entry means that firms

cur when excessive fishing capacity develops: will enter the fishery up to the point where each isbreaking even (covering opportunity costs, and a

Initially, when a fishery is first being devel- "normal profit"). At this point, the long-run averageoped, the resource stock is high. Therefore, cost of providing one unit of fishing effort equals thecatches are good and the fishers earn a high resulting average unit of revenue. This representsreturn on their investment.... Thus, fishing economic equilibrium, because there is no eco-capacity expands and fishing effort in- nomic incentive for entry to or exit from the fish-creases. This reduces the fish stocks, and the ery. The marginal firm is operating efficiently at acatch per unit of effort declines. Economic minimum average cost, because othernvise it wouldreturns from the fishery are correspond- be impossible for it to meet average costs; potentialingly reduced ... . Capacity continues to rents have been dissipated because a relatively largeexpand as long as the fishers can reasonably number of firms are participating.hope to extract a positive return from the Figures 1 and 2 show this situation graphically.fishery. Long before achieving a positive The figures assume that all firms are equivalent. Inreturn ceases to be possible, however, the figure 1, each firm attempts to maximize profits but,fish stock has normally been reduced far given the number of other participants, can do nobelow the level corresponding to maximum better than achieve normal profits. At effort level e,sustainable yield.... An open-access, com- the long-run average cost (LRAC) per unit of effortpetitive fishery will reach an equilibrium and the long-run marginal cost (LRMC) match theonly when the expansion in fishilg effort average unit of revenue PR The latter is determinedhas reduced the stock to the point at which by industry-level analysis (figure 2) equating totaltotal fishing costs equal the value of the har- industry supply and demand, at the intersection ofvest. As long as harvesting revenues exceed the effort supply curve S and the average industrycosts there will be an incentive to invest in revenue curve AR Curve Sis given by the sum of allnew capacity. (p. 3) marginal cost curves; it shows the total effort that all

fishermeni taken together wish to provide at eachThis open-access result contrasts markedly with

the result in a fishery that is the property of a sole Figure 1 Impact of license limitation at the firm

owner (Scott 1955). In this case, the ability of the levelowner to collect a rent creates a significant incen- U.S. dollarstive for the fish stocks to be husbanded for future aswell as current use. It also leads to harvest of theresource at much lower cost.

LRMC LRAC

Economic theory R- - - - - - - - - - - - - - - - -

The following theoretical analysis of the most com-mon approach to reducing fleets and limiting fishinglicenses illustrates the dynamic and structural aspects Rof the exit problem. A simple graphic method, basedon the work of Anderson (1986), focuses on key .structural and dynamic considerations rather than .the intricate details of a real-world situation. The e - e' Effortdiscussion is in terms of "firms" rather than fisher- Source: Anderson 1986.

5

MANAGING REDUNDANCY IN OVEREXPLOITED FISHERIES

Figure 2 Impact of license limitation at the fishery * Limits on size or conditioni of fish that can belevel landed

U.S. dollars * Limits on the number of vessels licensed andthe amount of fishing by each vessel.

S Table 1 shows how eleven major fishing coun-S tries use these methods to control their fisheries.

R'I B_ - - - - - - - - - - - - Besides these direct methods of control, indir-ectmanagement methods, such as taxes and subsidies,

/ l \ / can also be used (Lawson 1984; Arnason 1994b).

R q-. ;---- ............................. The effects of major fishely managemenit meth-ods on socioeconomic, administrative, and biological

AR factors were examined by Ander-soni (1980; table 2).: A For a number of reasons many control methods

fail to accomplish the intended goals. Lawson (1984)

E'- E Effort analyzed this lack of success and cited the following

Source: Anderson 1986. causes:* Failure to implement controls soon enough

possible level of fishery revenues. Curve ARgives the to prevent serious overfishingaverage long-run revenue corresponding to each * Difficulties in enforcementeffort level. * Fishermen's success in evading control mea-

The number of firms may be reduced through suresa license limitation program or a buyback to capture * The high cost of administrationi and imple-some of the potential rents. With fewer firms con- mentationtributing to the supply curve for effort, the curveshifts inward to S' (figure 2). In this new supply- Table 1 Control methods in eleven countriesdemand equilibrium, the total industry effort is re- CZounby Control methods

duced from E to E', but the average cost and revenueincreases from Rto R'. As indicated in figure 1, each Australia Vessel license

Individual quotaof the remaining firms has increased its effort from Personal licensee to e', due to increased unit profitability: effort e' is Canada Vessel license

a profit-maximizing point, equating long-runi mar- Individuial quota

ginal cost to the new average revenue level R'. El Salvador Vessel licenseOverall, less effort is being exerted in the fish- Iceland Vessel license

ely; there are fewer firms, but each is induced to Individual quota

exert greater effort. From the perspective of rent Japan Vessel construction licensegener-ationi, the desirability of license limitation will Vessel licensedepeind on the exact cost structure in the industry. Transfer of vessels to otherIn a "constant-cost" fishery (figure 2), there is a net fisl-ies

Netherlands Vessel licenseeconomic gain (area A minus area B). Netherland Vessel license

New Zealand Vessel licenseIndividual quota

Management control methods Nonvay Vessel construction license

Individual quotaGulland (1977) listed six conltrol methods for fish- South Africa Vessel and processor license

esy management: Uniited Kingdom Vessel license

* Restrictions on gear United States Vessel license

* Closed seasonis Personal license

* Closed areas Combination of vessel license and

* Catch quotas: overall quotas or quotas allo- individual quota

cated to vessels, plants, or other groups Sourc:e: Stokes 1979, Updated by the autlhor.

6

Fishery managemnent clhallenges and the problen of exit

* Inappropriate and inadequate policies or ob- terms of access to the fish and in terms of develop-jectives, and conflicts in objectives mental attention and support from governmenLt.

* Administrative inefficiencies Lawson (1984) attributes governments' empha-* Divided authority sis on1 managing large-scale and industr-ial fisheries* Inadequate statistics and information to the more advanced technological development* Failure to make correct management deci- in these fisheries and the fact that large-scale fisher-

sions. ies are the first to suffer fi-om the effects ofoverexploitation. She notes that in developing COUnI-

Considerations concerning the exit problem tries, small-scale fisheries are most in need of mani-agement. For many of these countr-ies, the major fish

Any objective prescription for addressing the exit stocks are within 24 kilometers of the coast, and asproblem in fisheries must consider two broad areas small-scale fishing is labor-intenisive, it is relativelyof concern: fishery configuration and factor inputs, easy for fishing effort to be incr-eased.particularly capital malleability and labor mobility. According to Lawson, restricting entry' into

small-scale fishingFishery configuration

will be very difficult in many developingMany participants and factors are typically involved countries, especially if fishermen are cur-in the fishery: user groups (commercial, recre- rently underemployed and have little other

ational, and indigenous fishermen); scales of opera- opportunity for employment. Given thetion (artisanal and industrial); gear types (trawlers, growing unemployment of unskilled laborlongliners, gillnetters). Should exit from the fishery in many developing countries, fisheries maybe targeted on particular sectors, or carried out in a be considered as providing a reserve occu-balanced manner? pation and attracting an increasing labor

Differences in the perceived benefits of the force, thus escalating the problems of exces-various players in the fishery produce much of the sive fishing. (1984, p. 81)conflict inherent in fisheries (Charles 1992). An un-derstanding of societal objectives makes it possible Aguero and Costello (1986) note that theto examine what balance is desirable. In Canada, forexample, ongoing debates take place over the rela- rural population employed in agriculture istive benefits accruing from recreational and com- increasinigly invading small-scale fishinlgmercial fishing in the Pacific salmon fishery, and communities in search ofemploy'ment. Thefrom trawlers comparedwith longliners in the Atlan- generalized stereotype that artisanal fishingtic commercial groundfishery. In developing coun- does not require specialized skills and thattries, a fundamental question concerns the balance fishery resources are free and infinite hasbetween artisanal and industrial fishing, both in not only reinforced this movement but has

also encouraged government planning of-ficers, economists, and politicians to support

Table 2 Control methods and effect on it. (p. 818)employment

Method Effect Factor inputs

Restrictions on gear,closed season, closed Makes employment Within any single user group or gear type in the fish-areas seasonal ery, a variety of inputs combine to produce fishing

Control on vessels(licensing) Reduces employment effort, including labor, capital, technology, manage-

Tax on royalties on catch Reduces employment ment, and enforcement. To what extent should eachTax on vessels and inputs May reduce employment of these exit from the fishery? This question againCatch quotas May reduce employment depends on the objective pursued. The objective

Source: Anderson 1980. may be to promote labor intensity, capital intensity,

7

MANAGING REDUNDANCY IN OVEREXPLOITED FISHERIES

maximum efficiency, minimum governmental ex- resources while meeting the mix of other fisherypenditures on management, or some mix of these development objectives.and other goals. This choice will certainly influence To a large extent, the factors employed in fish-the desired input mix. ing-capital and labor-are use-specific (Garrod

Charles (1991a) notes that while there is often and Whitmarsh 199 1). Therefore, the exit of theseconsidered to be an excess of labor in the fishery, factors from overexploited fisheries is often slow andmany developing countries may be able to reap sub- difficult to achieve. Under such circumstances, fish-stantial social benefits and stability by maintaining ers will make every effort to circumvent whatevertraditionally high fishery employment levels. When controls are imposed and to continue fishing. Thisfew employment opportunities are available outside has induced fishery managers to seek direct ways ofthe fishery, the opportunity costs of fishery labor are eliminating excess capacity, by restricting the laborlow. In such cases, policy attention might focus on and capital entering a fishery. A fundamental policypromoting exit of excessive capital investment, issue is how to facilitate the exit of capital and laborwhich may dramatically increase catching capacity made redundant by a depleted resource base andfor some vessels in the fleet. In all cases involving exit programs to limit entry.policies, an important issue is the cost to govern- A major theme relating to adjustment processesment, a cost that depends on opportunity costs for is the question of labor migration into and out ofeach factor of production. the fishery. Fishery labor processes, particularly in

Another key issue in examining the use and the developing countries, are intimately related to thepotential exit of factor inputs in the fishery concerns overall socioeconomic environment (Panayotou andthe malleability of capital. If capital is malleable, Panayotou 1986). High labor mobility implies thatinvestments should be reversible; fishermen can fishermen will be able and willing to exit the fisheryreceive a reasonable resale value for excess capital in pursuit of better alternative occupations if that iswhen it exits the fishery. It is not uncommon, how- in their individual interest.ever, to find that specialized vessels have few alter- Policies to persuade people to fish in one loca-native uses, and that fishermen have few alternative tion and not in another may not be beneficial in theemployment options. This tends to make capital long run. They could result in fishermen beinginvestment relatively irreversible and labor relatively locked into a location they find difficult to leaveimmobile, exacerbating the exit problem (Clark, when fishing conditions deteriorate. Studies onClarke, and Munro 1979). Capital tends to be less Thai fisheries indicate that fishermen respond tomobile than labor. economic incentives and move between occupa-

The reduction of overcapacity and the regula- tions and locations (Panayotou and Panayotoution of fishing effort are overriding concerns of fish- 1986). Although fishing labor is quite mobile be-ery managers today in both industrial and develop- tween occupations, it is less so between locations.ing countries. In the context of the opportunities People feel attachment to their area of residenceoffered by the extension of fisheries jurisdiction, and distrust unknown places. Fishermen cherish thecoastal states are rethinking and refining their fish- freedom and independence of being their ownery management strategies. Their goals are to bosses. Panayotou and Panayotou also noted thatachieve better balance between harvestable sur- mobility in and out of fishing, although consider-pluses and the amount of fishing effort deployed, able, was lower than mobility in and out of non-thereby reducing the overexploitation of fishery fishing occupations.

8

I Prescriptions for facilitating exit

Significant differences apply to policies concerning rights to others. Quotas can be nontransferable,large-scale, industrial fisheries and those concern- which leads to fewer exits but may serve other policying artisanal, small-scale fishery operations. goals.

Industrial fisheries Individual transferable quotas

Fleet reduction programs in industrial countries are Individual transferable quotas (ITQs) are particu-typically based on one of two "rationalization" ap- larly applicable to industrial fisheries. An ITQ is theproaches: license limitation and quotas. right to harvest a fixed volume of fish in one or more

License limitation and vessel buyback mecha- fishing zones. Quotas are allocated for a fixed pe-nisms are designed to reduce or control the num- riod or in perpetuity and may be bought, sold, orber of participants. License limitation programs are transferred. ITQs bring many benefits. Among othernot easily implemented in ways that ensure cost things, they:minimization for any given level of catch. * Impose limits on total catch levels based on

sustainable fishery principlesFishing capacity, it turns out, is like a * Enable quota holders to plan fishing to maxi-many-headed monster; if you chop off one mize returnshead, two new ones appear. Fishers and boat * Transfer to fishers the responsibility for pro-designers cooperate to circumvent regula- tecting and managing the resourcetions on fishing vessels, increasing fishing * Reduce conflict and competition amongcapacity through new designs that satisfy the fishersrestrictive rules while includiing new fish- * Allow reduced reliance on fishery controls andfinding devices and better gear. This has led regulationsto growing disappointment with license limi- * Give fishers freedom to enter or leave the fish-tation programs. (Hannesson 1994b, p. 92) ery by buying and selling quotas

* Can be used as securities for financingIndividual fish quota schemiies are programs in purposes

which fishery participants are assigned or acquire * Provide incentives for fishers to enter lessrights to harvest specified quantities of fish. Each developed fisheries and to engage in productparticipant can adjust operations accordingly to in- development as well as value-added activities,crease economic efficiency. If quotas are transferable as a result of secure property rights and estab-among participants, markets become established to lished quotas.facilitate the trading of rights; in theory, those who Quotas must be enforceable in order to yieldare less efficient exit the fishery after selling their beneficial results. An effective catch monitoring sys-

9

MANA(INc. RF.DUNDANCY IN OVEREXPLOITED FISERIEES

tem is fundamenital to the success of quota manage- in order to license another vessel, provided that thement, although such systems are rare. In principle, capacity of the newly licensed vessel did not exceedITQs can provide the following benefits (Clark 90 percent of the aggregate capacity of those vessels1994): that surrendered their licenses. As licenses are ag-

* Conservation of fish stocks gregated, the size of the fleet can be expected to* Long-term stability and long-term planning in decline. One of the problems of this program is that

a secure resource envir-onment profitability must decline to very low levels before* Efficient distribution of fishing and fish- large numbers of vessels exit from the fishery. Fur-

processing effort thermore, quota levels may have to be fixed at low* Opportunity for owners of quotas to borrow levels to encourage labor and capital to leave the

and invest in modernization and technologi- industry. Such quota reductions may have to last acal upgrading of machinery, equipment, and long time in order to persuade fishermen to exitprocesses from fishing altogether. According to Garrod and

* Economic surpluses for investment in the Whitmarsh (1991), the U.K fleet structuring policyeconiomy. indicates a turning away from direct grant-assisting

The ITQ system has certain attractive features schemes toward greater reliance on market forces.with respect to exit from fishing in industrial fisher-ies: no participant is forced to exit, and those who Transfer offishing vessels to otherfisheriesdo secur-e compensation when they sell their quotashare. In fact, only those who feel that the compen- In Japan, one of the methods used to reduce thesation for leaving is greater than the benefits of stay- number of fishing vessels in a certain fishery was toing will exit (Arnason, personal communication, transfer them to other fisheries; for example, off-1992). shore trawling vessels were transferred to the tuna

According to Dr. Mike Sinclair (personal com- longline fishery. Government subsidies were givenmuniicationi), the enterprise allocation system in for remodeling the trawlers into tuna boats. To en-Canada has not yielded many of the cited benefits, sure effective transfers, the new fishery had to beexcept perhlaps in very specific fisheries, and quota under government control at an early stage of devel-managemetnt has not been successful. opment, with specific conditions of entry spelled out.

The reduction in fishing effort in Japan wasDecommissioning of vessels followed by mutual compensation among entrepre-

neurs in the industry. To facilitate this, the govern-In the UInited Kingdom, granits to decommission ment assisted the industry through loans andfislhilng vessels wer-e made available at a flat rate of subsidies for interest payments. Since license hold-£400 per gross ton. Under this progr-am, 225 vessels ers do not pay fees, the government is not legallywere decommissioned during 1984-86. On surreni- required to pay compensation for canceling the li-der of the vessel's license, the owner- was free to sell censes. The principle of respecting the right of thosethe vessel outsidle European Community (EC) wa- currently engaged in the fishery has succeeded inters or to conver-t the vessel for use in nonfishing ac- preventing new entrants, but it constituted an ob-tivities in EC waters. This decommissioninlg policy stacle to the reduction of fishing effort (Asada 1985).was discontinlued in 1987. In the opinion of the U.KCommittee of Public Accounlts (1988), the policywas Artisanal fisheries"grossly cxpensive for what it aclhieved" (para.2(10)). Neither buybacks nor ITQs are especially suitable in

III 1989 a new system of "license aggregation" developing country environments where capital iswas intr-odtuced, endinig restrictionis on1 license tranis- limited (Charles, personal communication, 1991).fers hetween vessels in different length categories From a filancial viewpoint, the main constraints areand the ban on tranisfers that incr-eased either the lack of funds for successful buybacks and lack oftonnage or the horsepower of vessels. Instead, li- capital investment and operating funds to generatecenses of one or more vessels could be surrendered the high levels of governmental enforcement asso-

10

Prescriptions for facilitating exit

ciated with ITQs. Policies that reduce the number in fishing communities fails to take into accountof fishermen in artisanal fisheries without creating variations in the physical environment and the lim-nonfishery employment opportunities inevitably fail. ited resources available to fishermen.This is because fishermen will merely fish illegally,obtain a new boat, or do whatever else is necessary An alternative is a community-based ap-to continue to make a living. proach designed to be responsive to the

diversity of factors which exist among fish-Integrated (horizontal) rural development ermen and fishing communities. Such an

approach will address direct managementGiven these realities, the only feasible optioIn may and developmentissuesofthefisheryaswellbe one based on integrated coastal development, a as issues outside the fishery but of direct con-subject that has been addressed by several analysts. sequence to fishermen and fishing commu-

Smith (1983) indicates that nities. (Pomeroy 1991, p. 101)

in contrast to the focus of traditional fish- Fisheries must be viewed as part of the largereries development on fish production, the rural economy. With the rate of population growthobjective of new development programs is in rural areas, increased dependence of householdsto raise the standard of living of fishing com- on fishing can be expected. This means continuedmunities.... This re-direction in emphasis strong pressure on the open-access fishery resourcesis important because it permits the search and the persistence of poverty. Solutions to the prob-for solutions to the problems of low stan- lems of poverty must be found in the developmentdards of living in fishing communities to of the rural sector as a whole. Policies must recog-expand beyond those areas which are nize the totality of the environment of the fishermenfishery-specific.... Solutions are beginning and the complementarity between fishing and otherto be sought in the context of rural devel- aspects of this environment, including agricultureopment programs and have as their objec- and other nonfishiing activities.tive a general uplifting of rural areas. The On this point, Afful (1990) stated thatfisheries sector should be understood in abroad sense with its liikages to other sectors the emphasis of horizontal integration is thein rural areas. In the absence of alternative development of the fishing community andincome opportunities, fishing effort can be not just the fishing sub-sector. Small-scaleexpected to intensify in the rural sector, artisanalfisheriesisnotatransitiontoindus-thereby exacerbating the pressure on an trial fisheries but an enduring part of thealready dwindling resource. With little or no fishing landscape of developing countries.education and few non-fishing skills, the (p. 54)fishermeni have little hope to shift to an-other occupation. The need for a holistic Where fishermen live, more alternatives to fish-approach to fishing community develop- ing would need to be promoted. Fishermen are al-ment is obvious. What is implied is the ne- ready engaged in other activities. Thus, what iscessity for viewing the fish production sec- needed is the provision of support activities, such astor on the one hand as zvertically integrated infrastructure, credit, and the dissemination of in-with factor input markets and with product formation on employment opportunities, new tech-markets and on the other hand as horizon- nologies, and markets. Nonfishinig activities shouldtally integrated with other noni-fishery sec- be promoted in conjunction with effective controlstors and institutions within the rural area. on entry through the granting to small-scale fishing(p. 2) communities of exclusive territorial use rights to the

coastal fishery. Panayotou and Panayotou's studyPomeroy (1991) commented that "the standard (1986) of the Thai fishery indicates that "for such a

package" approach to new developmen t programs policy to be successful, the new opportunities should

11

MANAGING REDUND4N(Y IN OVEREXPLOITED FISHERIES

not only be at least as profitable as fishing, but they of community welfare. Non-fishery optionsshould be located in the vicinity of the fishing com- include developmentwhich will diversify themunities" (p. iv). social services and communal activities in

In this connectioii, Poggie and Pollnac (1989) the community, thereby improving the qual-stated that "there is evidence for the assertion that ity of life and creating employment and in-the environiment and occupation of fishing differs come, e.g., cottage industries, handicrafts,from many other occupations in ways that can im- sport fishing for tourists, guest houses andpact the design of development projects" (p. 5). seafood restaurants. (p. 9)Bailey (quoted by Smith 1983), in his study of thesocial relations of production in Malaysian fishing, Case studiesrice farming, and rubber tapping, indicates thatbecause of the geographic dispersion of alternative The following are summaries of some case studies inproduction activities for fisher folk, extension offic- nonfishery economic diversification and integrateders and other agents of change will have to identify (horizontal) development of fishing communities.the temporal and spatial aspects of fishermen's workpatterns in order to design training programs or Puerto Thiel, Costa Ricaprojects.

Implementing integrated rural development, This case study of a fishing community in the Gulfaccordinig to Pomeroy (1991), requires the follow- of Nicoya on Costa Rica's Pacific coast (Charles anding steps: Herrer-a 1994) addresses problems of heavily ex-

• ComnIullityorganizationi initiated bya trained ploited fisheries in a developing country. The studycommunity organiizer. highlights the importance of policies that simulta-

* Consultationi with local elected officials. neously pursue (1) development to increase local* Meetings to identify problems, needs, and op- socioeconomic and community fishery benefits

portunities, and to establish the needed orga- within resource limitations and (2) economic diver-nizations. sification to reduce the impact of fishery manage-

* Establishment of links among local organiza- ment restrictions by creating nonfishery employ-tions. nieit alternatives.

* Developmelnt of a municipal managemenit The dual focus of such ar approach emphasizesand development strategy, including specific development within the fishery that seeks to maxi-recommendations for the managemen-t and mize the benefits flowing directly to fishers. It alsodevelopment needs of each community. emphasizes economic diversification outside the

* Municipal strategies to serve as the foundationi fishery sector to maintain socioeconomic and com-for a regionwide and nationiwide fishery de- munity sustainability in the face of conservation-velopment strategy. Broad development pro- oriented management institutions being establishedgram areas should be identified witlh funding in the sector.and technical assistance componelLts. The authors note the existence of a common

On integr-ated rul-al development, Ben-Yamiii and development dilemma in the Gulf of Nicoya. EvenAndersoni (1985) stated that though coastal inhabitants are among the country's

poorest, immigration to the coastal areas has never-most problems affecting fishing communi- theless taken place. The immigrants are people dis-ties are unilikely to be seriously tackled placed from inland areas, where land has been lostunless equal attentioni is also given to non0- to such pursuits as government-supported cattlefishery needs in the community.... Both ver- ranchilig and banana plantations. With few othertical and horizontal integrationl are needed employment alternatives available for these people,before sustained programs can be achieved. the fishery is seen as the "employer of last resort."The vertically-integrated productioni chain This situation provides an excellent example of theis the enginie which can help establish and need to combine fishery regulation with efforts di-maintain the horizontally-organized aspects r ected at nonfishery economic diversification.

12

Presc7iptions forfacilitating exit

In Puerto Thiel, the fishing cooperative wished on species that can be cultured in the foreshore area,to develop alternative economic activity that would such as oysters, mussels, and seaweed. These mightnot affect the fishers' principal activity of fishing, but be attractive to fishermen as a source of supplemeii-would provide paid work to women wishing to diver- tal income.sify from traditional domestic work and childcare. Baumn and Maynard's study (1976) of five comn-Utilizing the resources of a joint program of the munities indicated that anywhere from 20 to 60Universidad Nacional and a Canadian nongoverni- percent of the fishermen r espondenits were willingmental organization, the cooperative undertook to to leave fishing for other occupations (such as tilediversify its activities by starting a tree nursery. While making, cement or pipe manufacture, road build-a major departure from traditional fishing activities, iig, and public works). Smith (1983) indicates thatthis project appeared promising, given governmen- "what this means for development policy is that tra-tal encouragement for reforestation in the region, ditional fisheries must be visualized as enmeshed inthe project's forecasted profitability, and its poten- larger rural and national fi-ameworks of communli-tial to provide formal employment to women in the cation and interchange" (p. 29).community.

Accordingly, 2.5 hectares of land near Puerto Bay of BengalThiel were purchased, providing a potential annualproduction of 185,000 young trees. The tree nurs- The Bay of Bengal Program, established in 1979,ery appears capable of providing an alternative involved Bangladesh, India, Indoniesia, Malaysia,source ofcontinuing employmentwhile demon-strat- Maldives, Sri Lanka, and Thailand. The objectiveing to local residents the possibility of developing was to use "the integrated approach" and to "pro-other economic alternatives. The project may relieve mote the integration of technological and economicpressure on the fishers to increase their harvesting inputs of a social nature to encourage comprehen-effort in an attempt to maintaini incomes as stock sive community development as a means of achiev-levels decline. ing the purposes of the project" (Afful 1990, p. 58).

One of its specific goals was to encourage increasedPhilippines participation by fishing communities in rural devel-

opment projects. During 1979-84, the programPomeroy's study (1991) in 1983-84 of three villages undertook several horizontally integrated projects,in one municipality in the Philippines produced the including:following conclusions: * A project to stimulate development activities

* As a short-run survival strategy to meet basic in the fishing communities of Adirampatt-family needs, fishermen took advantage of the nam, India (1980). This project involved lead-limited nonfishery employment available to ership training, water supply improvement,them by working as farm laborers or in the loans for fisher folk, nonformal education,village industry. and infrastructural development.

* There is a great deal of heterogeneity among * Projects to raise incomes and the social statusfishing villages and rationality among fisher- of women in Tamil Nadu (1981), Sri Lankamen. These should be factored into fishery (1980), and Bangladesh (1981).development programs. A program for marine fisheries extension offic-

* A community-based approach designed to be ers identified lack of credit as the biggest constraintresponsive to the diversity of factors that exist facing the fisher folk's efforts to improve their liv-among fishermen and fishing communities ing standards (Afful 1990).would be realistic. Because such an approachis based on the process of self-realization, the Indonesiagovernment does not reduce but refocuses itsdevelopment effort. Afful (1990) analyzes an effort designed to integrate

Smith (1983) discusses the BFAR Blue Revolu- small-scale and large-scale fisheries operating in ation program in the Philippines, which concentrates symbiotic relationship with each other. Under this

13

MANAGING REDUNDANCY IN OVEREXPLOITED FISHERIES

scheme, big fleets recruit labor only from the table water (Benin, Shenge); setting up healthsmall-scale fishery sector. The large fleets provide committees and demonstrating methods of im-funds for training and credit to small fishermen. proving hygiene and sanitation (Benin, Shenge);Small fishermen are also employed in the process- training of mothers in preparation of improveding plants owned and operated by big fleets. The baby-weaning foods from locally available materialswaste from fish plants is converted into fish feed and (Shenge)sold to fish farmers. The small fishermen and fish * Institution building: establishment of fisheryfarmers sell their crustacean catches to the big fleets development units and village development commit-for processing and export. tees (Benin); establishment of cooperatives or al-

ternative institutions to run savings and loan projectsWest Africa (Shenge, Kaback); setting up women's enterprise

groups (Shenge)The Integrated Development of Artisanal Fisheries * Extension: training of fisheries staff in the re-(IDAF) project was established in 1984. The gion; introduction of improved ovens to help withproject involved special emphasis on people's par- processing (Benin, Shenge)ticipation and women's activities. The main objec- * Management information: providing socioeco-tives were to: nomic information to develop policies and to help

* Improve the effectiveness of projects for in decisionmaking; monitoring and evaluatingartisanal fisheries in West Africa through an projects.umbrella program of technical assistance Afful (1990) concluded that the concept of in-

* Prepare and propagate an integrated ap- tegrated development of artisanal fisheries was aproach to the development of artisanal fish- viable approach. He added that to be really fruitful,eries, involving community participation and the projects should go beyondsharing of responsibilities in planning andimplementing local projects building little economic enterprises, and

* Provide direct assistance through the imple- emphasize instead the building of local andmentation of a model project provincial organizations which give local

* Help maintain in each country, through train- communities the power to influence deci-ing and demonstrations organized within the sions taken by others which affect their lives.framework of the model project, a system of (p. 71)fishery development units

* Help increase regional technical competence Afful also commented thatin the development of artisanal fisheries.

Within major activity areas in IDAF, specific every component in fishing operations thatprojects were established in the regions and locali- increases productivity makes fishermen re-ties indicated in parentheses: dundant if the increased production is not

* Fishery development: training at sea (Benin); to be swamped by excess fishing effort. Theintroduction of new gear (Benin, Shenge); improve- government must be making efforts to helpment of pirogues (Shenge); improved motorization develop other sectors so that redundant fish-systems (Benin, Shenge); launching and retrieval of ermen can find alternative employment.pirogues (Benin); engine repair and maintenance (1990, p. 70)(Benin, Shenge)

* Community development and village infrastruc- From the African experience, it would seem thatture: alternative income-generating activities, such projects, whether fishery or nonfishery, should beas small-scale farming, pig rearing, improved salt the kind that ease supply rigidities. Such projectsproduction, coconut production for women and include spare parts making, production of motorunderemployed youths (Benin, Shenge); building rickshaws, construction of rural houses, and preven-feeder roads (Benin); construction of wells for po- tive health care.

14

Prescriptions for facilitating exit

Malaysia excess fishermen, through alternative job op-portunities, skill training, and special land

According to Majid (1985) programs for fishermen* Compensation for fishermen to be relocated

the problems of the Malaysian fisherieswere or excluded from the fisheryan excess of units, too many fishermen, in- * Survey of the economic profile of the fisher-tensive fishing, and competition for limited men affected by the management measuresfishery resources leading to declining catch implemented.rates and reduced incomes especially in the An earlier study by Lawson (1975) noted thattraditional fisheries sector. (p. 320) surplus fishing labor on1 the east coast of Malaysia

would be absorbed by the alternative activities gen-Resource management policy was not based erated by the Malaysia Fisheries Development Plan

solely on conservation, but also oni social, eco- (Labon 1974). Smith (1983) doubted that thiswouldnomic, and political aspects. The main objective materialize. According to Yap (1977), those ab-was to control excess capacity, taking into account sorbed by the industrial fishery sector were moresocioeconomic and political considerations. Be- likely to be unemployed urban youths than formercause fishing communities are geographically traditional fishermen, although limited numbers ofisolated from the rest of the country, successful traditional fishermen have been absorbed, accord-relocation required the provision of a conducive ing to Smith. He concluded, based on his analysisenvironment. It was also necessary to increase the of Malaysian andJavariese experiences, that largereducational level of fishermen to enhance their job numbers of traditional fishermen will not easily beopportunities. This included training within fishing attracted to full-time work in capital-intenisive fishcommunities for skilled jobs in the plantation and ponds with their low labor requirements.construction sectors.

Majid noted the need for other government Asiaagencies that deal with fishers to be made aware ofthe fishery policies, to avoid being counterproduc- A study of small-scale fisheries in Asia (Panayotoutive. He underscores the need for the implement- 1985) indicated that:ing personnel to be in tune with the real objectives * Government objectives for increasinig fishof fishery management-not only to embrace the production and improving incomes of fisher-goal of increased production but also to be aware of men could be achieved through land-basedthe urgency of the resource problem and of excess development, particularly promotion ofcapacity. coastal aquaculture and revival of inland fish-

The success of a license limitation plan depends eries. Study findings offer support for shiftingto a large extent on1 reallocating excess fishers from development efforts away from the marinethe fishery sector, and the degree of success in this fishery and toward alternative employmentdepends oni the job environiment outside the fish- opportunities.ing sector. The Malaysian governlmenit took steps to * The scope for supplemental nonfishing activi-identify alternative sources of employmenit in the ties should be explored in cooperation withfishing sector itself, such as aquacultur-e and liberal- other government agencies responsible forization of licenses in deep-sea fishing. Majid empha- such activities as agriculture, coastal develop-sized the need for: ment, tourism, and the environment.

* Support at the political level * Nonfishing occupations serve very useful pur-* Coordination of all relevant government agen- poses in small-scale fishing households.

cies directly or indirectly involved with fishery * Job opportunities both supplementary anddevelopment, in order to ensure that their alternative to fishery employment are need-policies are not counterproductive ed. Supplementary job opportunities include

* Involvement of other agencies in reallocating employment in rubber and coconut planta-

15

MANAGING REDUNDANCY IN OVEREXPLOITED FISHERIES

tions, subsistence rice farming, and unskilled which might offer hope of adequate em-labor. Alternative job opportunities include ployment to residents excluded from thecash crop farming, livestock raising, fish protected fisheries. (p. 307)farming, retail trade, and government officeemployment. Supplementary activities can According to Sinclair, the "social injustice of lim-be carried out on a part-time basis along ited entry to fisheries of depressed regions is a com-with fishing activities, while alternative op- pelling objection to this policy" (p. 313).portunities can be pursued after exiting the Rowe (1991) analyzed the effects of the fisheryfishery. crisis oni women employed in the fishing industry inDuring the rise of the industrial fishery, Newfoundland, examining the skills of women em-small-scale fishermen were expected to enter ployed in the fishing industry and the extent tothe rapidly expandinig industrial fishery or which such skills were transferable. In this light, theswitch to some other occupationi. Many were study discussed the kind of skill training that couldunable to do so because of a lack of investment be offered to women to facilitate their absorptionfunds and the capital-intensive nature of fish- in other occupations in the community.ing-as well as rapidly rising unemploymentin the rest of the economy. Small-scale fisher- Strategies for fishery development in various countriesmren need credit, training, and possibly even-tual relocation in order to survive. An FAO Expert Consultation in 1983 discussed fish-

ery development in Brazil, Cuba, Indonesia,Japan,Newfoundland, Canada Norway, Peru, Poland, Senegal, Somalia, Sri Lanka,

and Tanzania. Among the elements of alternativeSinclair (1983), after a study of limited entry licens- strategies for fishery management suggested at thising in northwest Newfoundland, concluded that consultation were:

a Integrated rural development, including fish-the measure was a flawed strategy in iso- eries, agriculture, and other sectors, underlated fishery-dependent regions. For such one coordinating body; area developmentareas, it was important that limited entry * Creation of new employment opportunitiesprograms should be preceded by a regional for crowded coastal areasdevelopment plan. Fisheries policy would * Short-term credit for small-scale fishermenthen be a part of comprehensive strategy * Upgrading skills.

16

I Summary and conclusions 4

Overcapacity is becoming a pervasive characteristic This dilemma calls for a wider vision of the fish-of many, if not most, fisheries throughout the world eries system, going beyond fisheries-specific activi-today. This is true in both developing and industrial ties to embrace agriculture and other activities of thecountries and of both industrial and artisanal (sur- rural community. A systems approach demands that,vival) fisheries. The accelerating popular appeal of while considering the capacity reduction problem,sustainable development influences resource devel- consideration should also be given to the peopleopment in marine and inland waters,just as on land. affected by such control measures. Failure to do thisIn light of this, fishery managers are targeting prob- can only heighten the already high level of unrestlems of overcapacity and overexploitation through and tension prevailing in fishing communities. Ana variety of effort control measures, such as limita- interesting case in this context, pertaining to indus-tions, closure of fishing areas, and other means. The trial fisheries in an industrial country, concerns theprime focus of these measures appears to be on the moratorium on the northern cod fishery off New-resource rather than the people: fishermen and their foundland, Canada, for a two-year period: althoughcommunities. The "noncandidacy "of redundant capi- the social context and the retraining and educationtal-and especially of labor resulting from capacity of people affected by this closure have been takenreduction-makes the present policy stance some- into account, social unrest and hardships are wide-what one-sided. spread. Other examples include the redundancy of

Juxtaposed with policies concerned with over- people arising from privatization of parastatal fish-capacity and resource conservation are the poten- er-y enterprises based on industrial fisheries.tial and actual hardships-higher unemployment In practical terms, commitment to the applica-and poverty-in fishing communities. The main tion of sustainable development principles impliesbrunt of such economic and social distress is borne an increased focus on people-related issues and onbywomen, children, and unskilled fishermen, aswell communities, as well as on the resource; increasedas by those unskilled people who are directly and consultation of people in decisionmaking; and em-indirectly dependent on the fishing industry. Inte- powerment of people so that the will of the commu-gral elements of this prevailing scenario are a high nity can be expressed synergistically in seeking,level of unemployment or underemployment, lack adopting, and pursuing community and systemwideof ready alternative and supplementary employment development initiatives.

opportunities within the fishing community, a grow- There is, presently, only a hesitant approach toing population and pressure to find additional pro- the resolution of overfishing problems in a system-tein food supplies from the sea, lack of credit, and wide and sustainable context. Initiatives in this areathe paucity of institutional mechanisms to undertake can be effective only if several agencies come to-systemwide development. gether in cooperation with the community and its

17

MANAGING REDUNDANCY IN OVEREXPLOITED FISHERIES

people. Fishery development must refocus on rais- In essence, this represents a holistic anding the standard of living of fishing communities, systemwide approach to fishery development. Thenot just raising the economic efficiency of fish focus here is the development of the fishing com-production. munity as well as the fishing subsector. Several ex-

Because the assets employed in fishing are perts have proposed this concept, including Smith,use-specific, exit of labor and capital is painfully slow. Pomeroy, Afful, Charles, Emmerson, Panayotou,As long as fishermen can obtain a positive return, Ben-Yami, and Anderson.they will continue fishing and try to circumvent any The fundamental principles behind this inte-control measures; quotas, for example, would have grated (horizontal) development strategy are that:to be set very low for an extended period in order to * Development of the fishery sector should beinduce fishermen to leave the fishery. Studies relat- within the context of integrated rural devel-ing to labor mobility in some developing countries opment.indicate that fishermen are responsive to economic * The active participation of communities andincentives and move between occupations, but there people is mandatory in planninig, formulating,is less labor mobility between locations because of and implementing development activities.the attachment of fisher folk to their area of resi- The FAO World Conference on Fisheriesdence. This tendency has implications for plans to Management and Development (held increate supplementary and alternative employment Rome in June-July 1984) strongly endorsedopportunities for fisher folk in fishing communities. this in tegrated approach to small-scale fisherySuch programs should be locale-specific (Smith development. Examples of such integrated1983). Training, education, and extension should programs include the Bay of Bengal Programbe an integral part of such a program. The aim is to (under way), the Small Fisherfolk Communityseek a staged transition from fishery to nonfishery Program in the Bay of Bengal (1987), and In-occupations in the community. Appropriate com- tegrated Development of Artisanal Fisheriespensation for those leaving the fishery is another im- in West Africa (1984). All these comprisedportant aspect requiring further study and analysis. model projects involving an integrated and

Integrated (horizontal) community develop- flexible approach to community develop-ment has been suggested as an option to raise the ment, with special emphasis on communitystandard of living of fishing communities and to participation and the needs of women.facilitate the creation of alternative and suppleinen- Aguero and Costello (1986) stated that thetary employment opportunities in fisheries. Thisincludes the managemenit and rehabilitation of re- imposed nature of most management pro-dundaint capital and labor resulting from imple- grams which are more concerned with con-mentation of capacity reduction and conservation sistency with government's goals rather thanpolicies. with fisher folk welfare and needs provides

More specifically, according to Smith (1983), very little opportunity for fishermen toparticipate in the design, adoption and

the fishery is seen as encompassing input implementation. The fact that "fisheriessupply, production, and distribution sectors, management" is really "people and fisherwith linkages to other sectors in rural areas. folk management" is usually forgotten. TheChanges in the resource base and the emphasis is to get to know the fish, theheterogeneity of fishermen and fishing com- resource environment, fish behaviour, itsmunities require projects that are "locale- taxonomy and physiology and the best tech-specific" and that recognize the needs that nique for capture. Rarely is the emphasisfishermen themselves identify. Such pro- and the interest in getting to know and un-jects should also appreciate the vertical and derstand the fisherman, his rationale forhorizontal linkages that fisheries and fish- fishing, his acceptance and denial of man-ing communities have with other sectors agement regulations or his adaptation ofand institutions. (p. 2) new technologies. (p. 819)

18

Summary and conclusions

Horizontal integrated development is a difficult for assisting the people and communlities affected.task because of the complex planning and coordina- The transferability of skills and people to other,tion activities involved, embracing several sectors. nonfishing occupations must be thoroughly exam-The Bay of Bengal Program and the Integrated ined as part of any privatization strategy, particularlyDevelopment of Artisanal Fisheries in West Africa for single-industry communities. Assistance for theindicate that the challenge is worth the effort. These development and implementation of appropriateprojects lend themselves to a special focus on women fishery management regimes is needed to addressand unskilled labor. The establishment of fishery the problem of overfishing and overcapitalization.development units would be a practical and effective This in turn should assist in improving economic andstep in integrated development. Nonfishery develop- social returns from the fishery, providing means forment options include development that will diversify much-needed modernization of fishing vessels andsocial services and commercial activities in the com- equipment.munity, thereby improving the quality of life and The continuing "dualism" or coexistence of in-creating employment. Afful (1990) suggested that dustrial and artisanal fisheries in developing coun-nonfishery employment projects should be the kind tries poses challenges to fishery management. Eachthat help ease supply rigidities in the community. fishery type must be treated differently, especially in

Fisheries should be part of a comprehensive dealing with the problem of redundant capital andcommunity development strategy, with emphasis not labor from overexploited-particularly artisanaljust on building enterprises but also on establishing (survival)-fisheries in depressed and isolated re-communiity organizations and institutions to partici- gions. Community-based, nonfishing solutions mustpate in decisionmaking. In the words of Sinclair be found and must become part of any comprehen-(1983), sive package of adjustment. Integrated (horizontal)

rural and community development involving thelimited entry in depressed regions without economic diversification of fishing communities willregional (area) development is an invitation have to be vigorously pursued. Until such nonfisheryto either rural depopulation or resettlement solutions begin to supplement fisheries-specific ini-by covert means or increased regional un- tiatives, the frustrations of redundant labor are ex-employment. (p. 313) pected to grow.

Individual transferable quotas (ITQs) appear toFrom the standpoint of development assistance offer an effective solution to the problem of over-

agencies, the approach to fishery development could capitalization and overfishing in industrial fisheries.move closer to sustainable development principles If enforced, such quotas will be beneficial in a vari-through: ety of ways, including in conservation of fishery re-

* Redirection of attention from resources to sources and generation of economic surpluses forpeople, communities, and their empower- reinvestment in fisheries and other sectors of thement. economy. In the context of efforts in developing

* A shift from purely sectoral approaches to an countries to put in place effective management re-"ecosystem" or systemwide perspective. A prac- gimes-comprising a fishery management system; atical difficulty is the prevailing division of monitoring, control and surveillance system; and asectoral responsibilities in national govern- fishery judicial system-and the privatization ofments across different ministries. This would parastatal fishery enterprises, a realistic policy mixnecessitate innovative and practical ap- of ITQs (for industrial fisheries) and integratedproaches to the organization of government (horizontal) rural development (for artisanal fish-in order to facilitate the concerted implemen- eries) would be an effective approach. The successtation of sustainable development and sustain- of ITQs depends on an effective catch monitoringable fisheries principles in a synergistic system and a quota enforcement infrastructure.manner. The aim of this paper has been to review the

A prerequisite of donor assistance for privatiza- literature and to assemble the ideas and commentstion in fisheries should be development of strategies of various authors on the question of facilitating exit

19

MANAGINC REDUNDANCY IN OVEREXPLOITED FISHERIES

of labor and capital from overexploited fisheries, the remainder of this century and into the next.industrial as well as artisanal. The immediate objec- Therefore, the time is ripe for searching out andtive is to suggest the next steps to assist in prepara- implementing people-oriented approaches andtions for a future working party to examine this solutions to the continuing predicament of over-question in greater depth. This report is intended capacity in fishing and fish processing, and over-to serve as a background to this effort. Draft terms exploitation of fishery resources. It is time toof reference for the working party are given in launch policy initiatives in fishery management,appendix A. comprising ajudicious balance of ITQs, integrated

Sustainable development is expected to guide community development, and other appropriateand govern all facets of global development during measures.

20

Appendix A Draft terms ofreference for a working party

.4E Ion fishery exit

The need to develop appropriate policy approaches artisanal fisheries, (b) privatization policies, and (c)for facilitating the exit of capital and labor from economic diversification in developing countries.overexploited industrial and artisanal fisheries is This examination would include the following:caused by the growing adoption and implementa- * Analysis of the interactions of labor and capi-tion of capacity reduction and conservation- tal mobility with fishery managementoriented policies aimed at rationalizing and restruc- i Examination of labor adjustment processesturing fishing. The focus of fishery managers in this * Analysis of the behavioral response of fisher-area has been primarily on industrial fisheries. The men and their interaction with the broaderquestion of what to do with the redundant capital socioeconomic environmentand labor from artisanal fisheries, especially in de- * Study of the objectives and behavior of fisher-veloping countries, is a very complex socioeconomic men and fishing communities pertaining toissue. Such problems are exacerbated by such fac- ease of entry into and exit from fishing in so-tors as growing populations, sluggish economies, a cial, economic, cultural, and technologicalpaucity of nonfishery employment opportunities, termslimited transferability of and rigidities in the move- * Study of the benefits and costs of broadeningment of use-specific capital and labor, and the lack the scope of development of fishing commu-of a coordinated and integrated approach to hori- nitieszontal rural development blending fishery and * Examination of ways to prevent wasteful ap-nonfishery sectors. There appears to be a lack of plication of capital and labor in fisheriespolicy focus on the specific approaches that could * Approaches to regional development involv-be pursued. This is the suggested focus of the work- ing promotion of alternative and supplemen-ing party. tary nonfishery employment opportunities,

especially in those areas where geographicalObjectives mobility is most limited

2. Outline the research areas for further studyThe overall objective of the working party is to ex- 3. Develop, design, and formulate implementa-amine socially, economically, and ecologically appro- tion strategies for projects of a microeconomic andpriate and integrated approaches to facilitating the macroeconomic nature, including pilot projectsexit of capital and labor from overexploited indus- 4. Identify the institutional, human develop-trial and artisanal fisheries. More specifically, the ment, and funding requirements for implementingobjectives are to: such exit policies

1. Identify the nature of the problem of exit and 5. Outline the implications of such exit policiesthe constraints arising from (a) capacity reduction for fishery development managers in donor agen-

and conservation-oriented policies in industrial and cies and national fishery administrations.

21

MANAGINC REDUNDANCY IN OVEREXPLOITED FISHERIES

Study team countries. The group should have a balanced rep-resentation of social scientists, economists, commu-

Because the focus of the project is on fisheries in nity development specialists, and policymakers,developing countries, it would be useful to have a especially those from developing countries with ex-group drawn primarily from developing regionswith perience in the practical difficulties of managingsome minimum representation from industrial quotas.

22

Appendix B Terms of referenceL ~ for this research paper

In most developing and industrial countries, fishery approaches used to facilitate exit, would be useful.resources continue to be exploited under conditions Such a desk study would include:of open access. -While entry into fishing, fish process- * Identification of the major studies, if any,ing, and fish marketing has been relatively easy and conducted on this subject, summarizing theiroften facilitated by incenitives of one kiid or another, findings relative to barriers to exit and pos-exit has been exceedingly difficult. Exit problems sible approaches used or suggested to facili-and their policy solutions have received only scant tate exitattention as subjects of study and investigation. * Suggestions for developing countries thatThere is, therefore, a need to undertake a compre- could be included in a detailed case studyheuisive study, includinig case studies in developing * Identification of successful examples, if any,countriies on the barriers to exit as well as on pos- where exit approaches have been impliedsible approaches to facilitating exit from overex- * Identification ofthe policy implications ofexitploited fisheries. approaches for donors as well as for national

Before undertakinig such a detailed field and fishery administrationscase analysis, a preliminaiy desk study of exit prob- * Drafting of terms of referenice for a compre-lems and approaches in developing and industrial henisive field study or working party, whichcountries, with a view to cataloging the variety of could be undertaken later.

23

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Recent World Bank Discussion Papers (continued)

No. 211 Revitalizing AgriciltIral Research ini the Sahtel: A Proposed Frameworkfor Action. Jan Wcijenberg, Josuc Dion&,Michael Fuchs-Carsch, Adolphe Keri, andJacques Lefort

No. 212 Institutional Options for the Provision of rlfrtastrucfurc. Christine Kessides

No. 213 The Contributions of Ifrfrastrncture to Economic Development: A Revien'} of Experience and Political Implications.Christine Kcssides

No. 214 From Mfacroeconomic Correction to Public Scctor Reforn: The Critical Role of Evaluation. Eduardo Wiesner D.

No. 215 China: Reform anid Development in 1992-93. Pcter Harrold and Rajiv Lall

No. 216 The Reform of Public Expenditures for Agyricilture. Bonni van Blarcom, Odin Knudsen. and John Nash

No. 217 Vanaging Fishery Resoufrces: Proceedings tf?a Sytnposiuftn Co-Sponsored by the W'l'orld Batik and Peruvian Ministry oflFisheries lield in Litna, Perui,june 1992. Eduardo A. Loavza

No. 218 Cooperatives atid the Breakup of Lar e Mlechiatnized Farms: T71eoretical Perspectives and Emnpirical Evidence. Klaus W.Deininger

No. 219 Developmetit of Rural Financial Markets in Sub-Sahara,, Africa. Sabapathy Thillairajah

No. 22(0 The Maritime Transport Crisis. Hans J. Pctcrs

No. 221 Policy-Based Finance: Thie Experience cf PostwarJapati. The Japancse Devclopment Bank and The Japan EconomicResearch Institute

No. 222 Macroeconoomic Man_agemnetit in Chitia: Proceedinys of a Conferetnce in Dalianl June 1993. Edited by Peter Harrold, E.C. Hwa, and Lou jiwei

No. 223 The Development ofthe Private Sector itn a Smnall Ecotiomy in Transitioti: The Case of Mfotsolia. Hongoo Hahni

No. 224 Touward an Environmental Stratcgyfor Asia. Cartcr Brandon and Ramnsh Ramaikutty

No. 225 "Fortress Enrope" anid Other AMyths about Trade: Policies towuard Aierchat,dise Itnports in tJhe EC atid Other MajyorIii(tiustrial Econotnies (atid Wihat Tley Mleat for Developing Countries). Jean Baneth

No. 226 Mony'olia: Financiny Educatiotn duritng Econotnic Transition,. Kin Bing Wu

No. 227 Cities withiout Land Markets: Lesson,s of the Failed Socialist Experitimetit. Alain Bertaud and Bcrtrand Itcnaud

No. 228 Portfolio Investmtent in Dev'elopin,x Coutitries. Edited by Stijn Claessens and Sudarshani Gooptu

No. 229 Ati Assesstnet,t of Vlnlierable Groups it, Mongolia: Strategiesfor Social Policy Planitiin. Caroline Harpcr

No. 230 Raisiti tihe Productiv'ity of 14'otnen Fairtters in Sub-S(aharat Africa. Katrine Saito

No. 231 A.ricultural Ex7etision itn Africa. Arun.a Bagchce

No. 232 Telecommtnimtcations Sector Refonn it, Asia: Touward a Newc Pragniatistr. Peter L. Smith and Gregory Staple

No. 233 ILand Refotnn atid Fartn Restructuriig in Russia. Karcn Brooks and Zvi Lerman

No. 234 Populatiotn Cro'wth, Shiftitigq Cultivation, and Ltisustaitable Agricultural Dev'elopmewt: A Case Stidy in Madagascar.Andrew Keck, Narendra P. Shanr,a, and Gershaon Fcder

No. 235 Ilie Design atid Admitiistratioti of Intergovermitnetital Tratsfers: Fiscal Decentralization in Laitil Atterica.Donald R. Winkler

No. 236 Public atid Pri,'ate Agricuiltural Extensiot,: Beyotid Traditional Frontiers. Dina L. Umali and Lisa Schwartz

No. 237 Indoniesiatn Experietice with Fitiaticial Sector Refortn. Donald P. Hanna

No. 238 Pcsticide Policies in Dei'eloping Countries: Do They Encourqge Excessive lse? Jumanalh Farah

No. 239 IJtergov'ernfnetjt Fiscal Relatiotis int Indotiesia: Issues and Reforn Options. Anwar Shah and Zia Qureshi

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