bclme hake project: socio-economic exploratoration...

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MPA Financing U. Rashid Sumaila Fisheries Economics Research Unit The Global Fisheries Cluster UBC Oceans and Fisheries Vancouver, Canada [email protected] The 10X20 Initiative Conference on MPAs, March 7-9, 2016, Rome, Italy

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Page 1: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

MPA Financing

U. Rashid Sumaila

Fisheries Economics Research Unit

The Global Fisheries Cluster

UBC Oceans and Fisheries

Vancouver, Canada

[email protected]

The 10X20 Initiative Conference on MPAs, March 7-9, 2016, Rome, Italy

Page 2: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Why invest in MPAs? • Food and nutritional security;

• Economic security;

• Social stability & security;

• Recreational values;

• Cultural and spiritual values;

• Regulation of earth’s climate;

• Ecosystem function and service.

L.Teh

D. Varkey

Page 3: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Why invest in MPAs: ~3.5%!

MPAs of the world: partially-protected MPAs (orange areas), no-take

marine reserves (green), and Paper tigers; blue). 17,600 more

average-sized MPAs to achieve the SDG target.

Page 4: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Why invest in MPAs: Economics

• Some examples:

– In Hawaii, a review of 6 marine managed areas showed that they generated cost-benefit ratios ranging from 3.8 to 41.5 (van Beukering & Cesar 2004);

– In Vanuatu: a mean return on investment of 1.8 was achieved for 5 MPAs only 5 years after the initial investment (Pascal 2011).

– Sala et al. (2012) demonstrate that economic benefits from establishing new MPAs can offset costs in as few as 5 years.

Page 5: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Why invest in MPAs: Uncertainty • MPAs as the ‘conservative’ part of our

ocean portfolio – serve as insurance against our mistakes in management (Clark 1996, Sumaila 1998).

Page 6: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Problem: Front-loaded cost and

back-loaded benefits

• Cost of establishment are realised in the short term while the benefits come later;

0

5

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1 8 15 22 29 36 43 50

Generations

Net

dis

counte

d b

enefits

as s

een b

y

each g

enera

tion

Status quo

Restoration

Adapted from Sumaila (2004)

Page 7: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Adequate funding needed

• Transition funding;

• Inadequate funding leads to lack of resources for enforcement and management, resulting in ‘paper parks’.

Page 8: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Financing sources

• Tourism:

– User fees: conservation and/or entry fees;

– Private management: private sector ( dive/resort operator) supports costs for managing MPA.

• Government budgetary allocations;

• International funding grants;

• Cost-sharing: co-management arrangements;

• Philanthropic and private contributions;

• Conservation trust funds;

• Fines (e.g., for illegal fishing).

Page 9: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Cost effectiveness of MPAs

• A cost effective MPA is one that achieves a given level of protection at the lowest cost among all the possible ways of providing protection.

• Why is cost effectiveness important?

– Helps ensure the long term sustainability of implemented MPAs;

– Makes available to society the highest level of for the available funding;

– Increases stakeholder confidence in MPAs, perhaps increasing their willingness to support/fund conservation activities.

Page 10: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Ways to improve MPA cost

effectiveness

• Costing the different ways of implementing

MPAs to determine the least cost approach;

• Involving stakeholders;

• Use of modern technology;

• Invoking social and cultural sanctions;

• Integrated, regional use of existing funding.

Page 11: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Collect data from 8 MPA sites

(CI-supported work)

Page 12: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

MPA budget allocation

• Planning;

• Research;

• Implementation;

• Enforcement;

• Alternative livelihoods;

• Public education;

• Others.

• As a percentage

of the total

budget: – 42% goes to

administration and

overhead,

– 22% goes to

research &

monitoring;

– 21% goes to

enforcement.

Page 13: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Recommendations for action

• Assess financing baselines, needs and gaps, and

the full range of potential financing sources;

• Identify opportunities for improving cost-

effectiveness in national MPA expenditure;

• Develop strategies and policies to bridge the MPA

finance gap;

• Convene broad dialogue among governmental,

private and civil society actors on the arguments for

the integration of conservation and sustainable use

principles into various sectors via the

implementation of MPAs.

Page 14: BCLME Hake Project: Socio-Economic Exploratoration ...italyun.esteri.it/rappresentanza_onu/resource/doc/2016/03/sumaila_rom… · benefit ratios ranging from 3.8 to 41.5 (van Beukering

Recommendations for action

• Countries should integrate into training,

education and capacity building programmes,

awareness of the economic rationale for

implementing MPAs, and their role in achieving

sustainable development.

Thanks for your attention

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Thanks for your attention