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REGIONAL PROJECT FOR INLAND FISHERIES PLANNING, DEVELdPMENT AND MANAGEMENT IN EASTERN/CENTRAL/SOUTHERN AFRICA (I.F.I.P.) IFIP PROJECT RAF/87/099-WP/01/89 (En) December 1989 Ethiopia Kenya Tanzania Mozambique Zimbabwe Malawi Zambia Zaire Burundi Rwanda Uganda Selected abstracts of basic references and current literature in fisheries economics - j UNITED NATIONS DEVELOPMENT PROGRAMME ff.` FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

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Page 1: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

REGIONAL PROJECT FOR INLAND FISHERIES PLANNING, DEVELdPMENT ANDMANAGEMENT IN EASTERN/CENTRAL/SOUTHERN AFRICA (I.F.I.P.)

IFIP PROJECT

RAF/87/099-WP/01/89 (En) December 1989

Ethiopia

Kenya

Tanzania

Mozambique

Zimbabwe

Malawi

Zambia

Zaire

Burundi

Rwanda

Uganda

Selected abstracts of basicreferences and current literature

in fisheries economics

- j UNITED NATIONS DEVELOPMENT PROGRAMME

ff.`

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS

FAO LIBRARY AN: 447311
Page 2: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP
Page 3: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

Selected abstracts of basicreferences and current literature

in fisheries economics

based on the work

of

C.E. Bean(Consultant, IFIP Project)

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONSUNITED NATIONS DEVELOPMENT PROGRAMME

Bujumbura, December 1989

UNDP/FAO Regional Project RAF/87/099-WP/01/89 (En)for Inland Fisheries PlanningDevelopment and Management inEastern/Central/Southern Africa

RAF/87/099-WP/01/89 (En) December 1989

DFL( ,tz-;

Page 4: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP
Page 5: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

The conclusions and recommendations given in thisand other reports in the IFIP project series arethose considered appropriate at the time ofpreparation. They may be modified in the light offurther knowledge gained at subsequent stages ofthe Project. The designations employed and thepresentation of material in this publication do notimply the expression of any opinion on the part ofFAO or UNDP concerning the legal status of anycountry, territory, city or area, or concerning thedetermination of its frontiers or boundaries.

Page 6: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

PREFACE

The IFIP project started in January 1989 with the main objective ofpromoting a more effective and rational exploitation of the fisheriesresources of major water bodies of Eastern, Central and Southern Africa.The project is executed by the Food and Agriculture Organization of theUnited Nations (FAO), and funded by the United Nations DevelopmentProgramme (UNDP) for a duration of four years.

There are eleven countries and three intergovernmental organizationsparticipating in the project: Burundi, Ethiopia, Kenya, Malawi, Mozambique,Uganda, Rwanda, Tanzania, Zambia, Zaire, Zimbabwe, The Communaute'

Economique des Pays des Grands Lacs (CEPGL), The Preferential Trade Areafor Eastern and Southern African States (PTA) and the Southern AfricanDevelopment Coordination Conference (SADCC).

The immediate objectives of the project are: (i) to strengthenregional collaboration for the rational development and management. ofinland fisheries, particularly with respect to shared water bodies; (ii)to provide advisory services and assist Governments in sectoral and project.planning; (iii) to strengthen technical capabilities through training; and(iv) to establish a regional information base.

The abstracts contained in the present document are intended to beo- use to fishery researchers and administrators who wish to keep abreastof basic references and current literature that have been published overthe last five years on the subject of fisherie_s economics. Emphasis was puton relatively theoretical documents and relevant case studies. The documentwas prepared by Mr. C.E. Bean under a special service agreement with theIFIP project and further expanded by project staff,

Mr. Bean is currently with the Department of Resource Economics atthe University of Rhode Island in Kingston, Rhode Island, USA.

IFIP PROJECTFAO

B.P 1250BUJUMBURABURUNDI

Telex : FOODAGRT BDI 5092 Tel. 2.4328

Page 7: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

IFIP PUBLICATIONS

Publications of the IFIP project are issued in two series:

A series of technical documents (RAF/87/099-TD) related to meetings,missions and research organized by the project.

A series of working papers (RAF/87/099-WP) related to more specificfield and thematic investigations conducted in the framework of the project.

For both series, reference is further made to the document number (1),the year of publication (89) and the language in which the document is issued:English (En) or French (Fr).

For bibliographic purposes this documentshould be cited as follows:

Bean C. E. Abstracts of basic references and current literature1989 in fisheries economics. UNDP/FAO Regional Project for

Inland Fisheries Planning (IFIP). RAF/87/099-WP/01/89(En): 51p.

Page 8: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

iv

TABLE OF CONTENTS

I. INTRODUCTION 1

II. ABSTRACTS OF BASIC REFERENCES IN FISHERIES ECONOMICS

Lee G. AndersonThe Economics of Fisheries Management 2

Colín W. ClarkMathematical bioeconomics: the optimal management of renewableresources 3

Cunningham, M. Dunn and D. WhitmarshFisheries Economics: an introduction 4

R. LawsonEconomics of Fisheries Development 5

W.C. MacKenzieAn introduction to the economics of fisheries management 6

PanayotouManagement concepts for small-scale fisheries: economic andsocial aspects 7

J-P. TroadecIntroduction to fisheries management: advantages, difficultiesand mechanisms 8

III. ABSTRACTS OF CURRENT LITERATURE IN FISHERIES ECONOMICS

III.1 Fisheries Management

Lee G. AndersonA Management Agency Perspective of the Economics of FisheriesRegulation 9

R. HannessonFixed or variable catch quotas? The importance of populationdynamics and stock dependent costs 10

R. Hannesson and J. KurienStudies on the role of fishermen's organisations in fisheriesmanagement 11

Trond BjorndalThe Optimal Management of North Sea Herring 12

E. A. Cook. and Parzival CopesOptimal Levels for Canada's Pacific Halibut Catch 13

Page 9: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

B.A. CookDiscount Effects and Canada's Pacific Halibut Fishery . 14

Robert T. DeaconAn Empirical Model of Fishery Dynamics 15

Jerald J. Fletcher, Richard E. Howitt, and Warren E. JohnsonManagement of Multipurpose Heterogenous Fishing FleetsUnder Uncertainty 16

R. HannessonOptimum fishing effOrt and economic rent: a case study ofCyprus 17

Peter A. LarkinThe Future of Fisheries Management: Managing t e Fisherman 18

Scott R. MillimanOptimal Fishery Management in the Presence of Illegal Activity 19

T. Scudder and T. ConellyManagement systems for riverine fisheries 20

C. WaltersAdaptive management of renewable resources 21

111.2 Bioeconomic Models

Peter Andersen and Jon G. SutinenStochastic Bioeconomics: A Review of Basic Methods andResults 22

Lee G. AndersonA Discrete Dynamic Fisheries Utilization Model: Towards ThePractical Application of Modern Fisheries Economics 21

Jon M. Conrad and Richard Adu-AsamoahSingle and Multispecies Systems: The Case of Tuna in the EasternTropical Atlantic 24

John P. DollTraditional Economic Models of Fishing Vessels: A Review withDiscussion 25

Donald A.R. George, Leslie T. Oxley and Colín J. RobertsProduction relationships in fishing: a survey of the literatureand a vintage approach to modelling 26

David J. GilbertUse of a Simple Age-Structured Bioeconomic Model to EstimateOptimal Long-Run Surpluses 27

John 0.5. KennedyA computable game theoretic approach to modelling competitivefishing 28

Page 10: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

vi

Willmann and S.M. GarcíaA bio-economic model for the analysis of sequential artisanaland industrial fisheries for tropical shrimp (with a case studyof Suriname shrimp fisheries) 29

111.3 Fisheries Development

W.H.L. AllsoppFishery Development Experiences 30

M. Ben-Yami and A.M. AndersonCommunity fisheries centres: guidelines for establishment andoperation. 31

Henry Bienen and John WaterburyThe Political Economy of Privatization in DevelopingCountries 32

Francis T. ChristyA re-evaluation of approaches to fisheries development:the special characteristics of fisheries and the needfor management 33

FAORevolving loan funds and credit programmes for fishingcommunities: management guidelines 34

D.F. GrébovalMajor economic considerations for the preparation and negotiationof fisheries joint ventures (with special reference toAfrican fisheries) 35

JentoftModels of fishery development 36

J.E. Reynolds and D.F. Gr6bovalSocio-economic effects of the evolution of Nile Perch fisheriesin Lake Victoria: a review 37

Richard B. Pollnac and Michael T. Morrissey (eds.)Aspects of Small-Scale Fisheries Development 38

Giulio PontecorvoThe State of Worldwide Fishery Statistics: A Modest Proposal . 39

Jahara YahayaFishery Management and Regulation in Peninsular Malaysia:Issues and Constraints 40

111.4 Oven Access and Property Rights

James L. AndersonPrivate Aquaculture and Commercial Fisheries: Bioeconomics andSalmon Ranching 41

Page 11: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

vii

Trond Bjordal and Jon M. ConradThe Dynamics of an Open Access Fishery 42

Linda L. HudginsNegotiating Fishing Access Rights in the South Pacific 43

Douglas W. Lipton and Ivar E. StrandThe Effect of Common Property on the Optimal Structure ofthe Fishing Industry 44

Gordon R. MunroThe Management of Shared Fishery Resources Under ExtendedJurisdiction 45

A. ScottDevelopment of property in the fishery 46

111.5 Fisheries Regulation

Eric E. AndersonTaxes vs. Quotas for Regulating Fisheries Under Uncertainty:A Hybrid Discrete-Time Continuous-Time Model 47

Trond BjorndalProduction in a Schooling Fishery: The Case of the NorthSea Herring Fishery 48

Grant T. CrothersIndividual Transferable Quotas: The New Zealand Experience . 49

LIST OF IFIP REPORTS 50

Page 12: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP
Page 13: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

I. INTRODUCTION

The IFIP project noted that, for the project area in general, the staffof the fisheries departments and fisheries research institutes concerned havea very much biology-oriented background. However, in recent years, thesedepartments and institutes have put greater emphasis on addressing relatedsocio-economic issues. This led in many countries to fishery scientists beinginvolved in socio-economic and/or bio-economic investigations, as well as tothe recruitment of junior social scientists (economist, sociologist,anthropologist, etc.). The fisheries personnel referred above is neverthelessconfronted to a general lack of specialized training in fisheries economicsas well as to very limited access to information and literature on thistopic.

In this context, the abstracts contained in the present document shouldbe of use to fishery researchers and administrators who wish to keep abreastof basic references in fisheries economics (part II) and current literaturethat have been published over the last five years on the subject (part III).

It should be noted, and this is emphasized, that this review is not atall exhaustive, but based mostly on documentation available at the projectheadquarters as well as on references provided by a IFIP consultant, Mr. C.E.Bean, and the staff of the FAO Fishery Policy and Planning Division.

The interested reader is further encouraged to subscribe, in

particular, to the Fishery Economics Newsletter' which provides regularlycurrent literature reviews. As far as FAO publications are concerned,requests can be forwarded to Distribution and Sales Section, Food andAgriculture Organization of the United Nations, vía delle Terme di Caracalla,00100 Rome, Italy. Copies of most of the papers whose abstract is containedin the present document can be obtained directly from the project.

Two documents related to the subject will be shortly published by theproject: (i) 'Introductory Guide to the Economics of Fisheries Management',by C.E. Bean; and (ii) 'Proceedings of the IFIP/SWIOP Workshop on EconomicAspects of Fisheries Development and Management (Dar-es-Salaam, October 30-November 9, 1989)', which contains six papers (on management, sectoralplanning, costs and earnings studies, socio-economic surveys, marketing, andcost/benefit analysis), as well as a number of case studies.

1

' published by Sea Fish Industry Authority, Sea Fisheries House, 10Young Street, Edinburgh EH2 4JQ, United Kingdom.

Page 14: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

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Lee G. AndersonThe Economics of Fisheries Management

The Johns Hopkins University Press, 1986, Baltimore

Abstract

The first edition of this book, published in 1977, was the only one ofits kind at the time. There was a large selection of literature on theeconomic aspects of fisheries exploitation, but there was no single sourcewhere the reader could find an extensive discussion on the subject. This newand revised edition draws the material together, fills in some of the gaps,and presents the results for a general audience of people as well aseconomists. One topic that receives special attention is the theoretical andapplied aspects of various types of regulations.

The first chapter presents a brief introduction to the basic principlesof economics to the study of fisheries and offers a more extended treatmentof what is meant by economic efficiency and how it is achieved in a freelycompetitive economy. This chapter provides a frame of reference of thesubsequent chapters. Those with a training in economics may wish to skip over.this section.

Chapters 2 and 3 contain the main economic analysis. Initially, a

simple population dynamics and simplifying economic assumptions are used todescribe the concept of maximum economic yield of a fishery and why anunregulated fishery will not operate at that level. Subsequently, some ofthese assumptions are relaxed so that a more realistic scenario is'presented.In chapter 3 the economics of the individual fishing unit is dealt with,including implications of a variable price of fish, and with fisheries aspart of the whole economy as well as with recreational fishing and fisheriesdevelopment. The overriding concept that is emphasized in these 2 chapters isthat of equilibrium and how it is established and maintained.

Chapter 4 moves into the more intricate 'economic models of fisheryexploitation, considering the effects of more complex population dynamicsand the concepts of a maximum social yield and an international maximumeconomic yield. Chapter 5 moves beyond the analysis of a single fleetharvesting an independent fish stock to more realistic scenarios such amulti-species, mola-purpose fleets, biological and technologicalinterdependence, etc.

In Chapter 6 there is a general discussion of types of fisheryregulation, focusing primarily on their economic aspects and on economicalways of implementing them. Finally, in Chapter 7, there is a briefintroduction to some recent empirical studies which show how the theory ofthe previous chapters can be used to provide useful information.

Page 15: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

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Colín W. ClarkMathematical bioeconomics: the optimal management of

renewable resources.A Wiley-Interscience Publication, John Wiley and Sons,

New York, 1976: 350p.

Abstract

Chapters 1-3 discuss a basic (one-dimensional) dynamic fishery model,and introduce various necessary concepts from biology and economics. Inparticular Chapter 3 concentrates on the capital-theoretic aspects ofresource exploitation. Chapter 4 discusses the mathematical techniques ofoptimal control theory, which are extensively applied later in the book.Chapter 6 examines the phase-plane analysis of dynamical systems, which isalso employed later in the book. A some what deeper discussion of theeconomic aspects of resource management is given in chapter 5, which alsocontains a brief survey of the theory of exhaustible resources. The first sixchapters of the book utilize continuous-time models of biological processes.Chapter 7 examines the study of discrete-time models, which in many ways aremore flexible than continuous-time models. Finally Chapters 8 and 9 extendthe theory to more complex biological models that involve age structure(Chapter 8) and multi-species systems (Chapter 9). These last two chaptersindicate that despite the complexities of realistic biological models, thebasic bioeconomic theorems described in earlier chapters remain valid andprovide great insight into more general problems.

The methods employed in this book are entirely analytic to'provide afirm theoretical basis for renewable-resource management. Although manypractical examples are mentioned, they serve as illustrations rather than asfully proved applications of the theory. Biometric and econometric methods,numerical optimization techniques, and computer simulation modelling -

important as they are in the practice of biological resource management - arenot discussed in this book.

Page 16: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

4

S. Cunningham, M. Dunn and D. WhitmarshFisheries Economics: an introduction

Mansell Publishing Limited, London and St. Martin's PressNew York, 1985: 372p.

Abstract

This book is written in a form that those with little prior knowledgeof fisheries, fisheries biology or economics will find accessible. In Chapter1 the notion of fish production as an economic activity is covered. The samechapter also considers the objectives of the decision-taking units involvedin fisheries and the economic environment within which they operate. Chaptertwo develops a model of commercial fishing. The biological dimension showsthat a fish stock will be capable of producing a surplus each year that issustainable indefinitely if a catch of this amount is taken. The economicdimension reveals that, in the absence of regulation, a fishery will end upbeing overexploited. Chapters 3 and 4 then show how this analytical model canbe usefully applied. Chapter 3 shows the impact of technological change onthe fishery and reveals that such change may well not produce the benefitsthat we are accustomed to anticipate. Chapter 4 demonstrates with the modelthat fisheries management is required for both biological and economicreasons. It then continues to analyze the fundamental goals of management,bringing together both biological and economic dimensions of possiblealternative objectives.

Having established a framework for identifying the nature of theproblems of fisheries, Chapter 5 examines the ways in which fining firmshave responded to the wide range of problems that they face. Although some ofthese strategies have not been without success, it is argued that for as longas the natural resource base remains a common property, then actions by firmsare likely to produce only transitory successes. Having thus reinforced theconclusion of Chapter 4 on the need for management, Chapter 6 considers themain methods of regulation available. These are divided into 'biological' and'economic methods, and the biological ones are shown not to be likely toalter the long-run economic situation in the fishery, although they may wellhave some beneficial effects. Economic methods are preferred, although ofsuch methods it is only the allocation of some form of property rights to thefishermen that seems to solve the main problems.

Chapters 7 and 8 then look in some detail how fisheries policiesllave intact been conducted. Chapter 7 reviews international aspects of

policy, and examines three main dimensions of these: management by

international bodies, the move towards coastal-state management under theemerging regime of the Law of the Sea, and finally a brief case study of theCommon Fisheries Policy of the European Economic Community. Chapter 8 reviewsnational fisheries policies, examining as examples the policies of Canada,the United States and the United Kingdom. At this point, the authors widenthe study to respond to the increasing importance of non-food uses of fishstocks, and Chapter 9 reviews the many problems arising in attempts to

analyze the economics of recreational fishing. In consideration of the factthat OUT primary aim must be to maximize the net benefits derived from theasset represented by the fish resource, Chapter 10 reviews some of the basiceconomics of aquaculture,

Page 17: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

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R. LawsonEconomics of Fisheries Development.

Frances Printer (publisher), London, 1984: 283p.

Abstract

This book provides an introductory text covering first the theoreticalprinciples of fisheries economics and management, and secondly the majorissues relating these principles to the fisheries of developing countries.

It is directed to the needs of those developing countries which nowwith economic zones extended to 200 miles, find themselves with a large fishresource which, provided it is easily managed and exploited, is capable ofgenerating wealth and income of immense national benefit.

It is also directed towards development economists, who hitherto havenot readily had access to text books which recognize the importance offisheries as an economic resource capable of being exploited to greatadvantage by developing countries.

After an overview of the state of world fisheries and the presentationof the economic theory of fish resource exploitation and of the fisheriesmanagement, the author addresses key development issues such as: economics ofthe fish market, fish marketing and processing, planning for fisheriesdevelopment, institutional arrangements for developing EEZs, project cycleand fisheries development opportunities.

Page 18: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

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W.C. MacKenzieAn introduction to the economics of fisheries management.

FAO Fish.Tech.Pap., (226), 1983: 31p.

Abstract

Fisheries management relates to a total system made up of resources,industry and trade. There are important linkages between these components. Incontrast with other resource industries, common property in fisheriesresources implies that there is no market mechanism through which access tothese resources could be allocated among users. In many cases, governmentshave been forced to intervene, rightly or wrongly, to fill this vacuum.Economically, rational fisheries management necessitates the transformationof common property through some kind of limited entry system designed tooptimize net benefits from the fishery. Management planning involves thedefinition of goals and policy objectives and the development of strategiesto assure attainment of policy objectives.

Page 19: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

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T. PanayotouManagement concepts for small-scale fisheries:

economic and social aspects.FAO Fish. Tech. Pap., (228), 1982: 53 p.

Abstract

This paper provides an analytical framework for the management anddevelopment of coastal small-scale fisheries in developing countries. In a

brief review the basic management concepts developed for single-speciesfisheries are presented and their appropriateness is examined for the

management and development of small-scale multi-species fisheries. Apart fromthe high biological complexity of multi-species fisheries the traditionalmanagement concepts also need refinement for socio-economic reasons. Thepaper describe the constraints under which many small-scale fishermenoperate, viz., resource limitation, conflicts with large-scale fisheries,lack of geographical and occupational mobility and lack of alternativeemployment opportunities. These constraints may temporarily call for higherlevels of fishing effort than justifiable from a pure economic point of view.Still any long-term improvements in the living standard of small scalefishermen will necessitate some forms of human intervention, which allocatethe resource between different sections of the fishing industry and ingeneral limit the expansion of fishing effort to prevent wastage of capitaland human resources. The paper discusses various measures to regulate fishingeffort in small-scale fisheries, viz, selectivity of gear; seasonal and areaclosures; catch quotas; limits on the number of fishing units, on thequantity of gear, or on the catching capacity of vessels; economic controlssuch as taxes, royalties or licence fees; and resource allocation throughterritorial rights. The choice among these management alternatives should bebased on a set of criteria which include: acceptance by the fishermen,gradual implementation, flexibility, encouragement of efficiency and

innovation, full cognizance of regulation and enforcement costs, and dueattention to employment and distributional implications. Owing to the

geographically dispersed nature of artisanal fisherfolk settlements, therival and rejuvenation of traditional territorial community rights overcoastal resources offer perhaps the best possible management option forsmall-scale fisheries. Instead of attempting to control fishing directly,such rights aim at creating a conducive environment of self-control by thefishermen themselves. The paper concludes with a presentation of some

examples of traditional territorial fishing rights in Brazil, Japan, Sri

Lanka and Ivory Coast.

Page 20: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

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J-P. TroadecIntroduction to fisheries management: advantages,

difficulties and mechanisms.FAO Fish.Tech.Pan., (224), 1983: 57p.

Abstract

The introduction is a reminder that the extension of nationaljurisdiction over world fisheries has three major consequences: the immediatetransfer of the production of deep sea fleets to control by coastal states,the possibility of reducing economic waste and overfishing which are theinevitable results if competition for resources is not regulated, and a shiftof approach to pay more attention to specific local conditions andperspectives, and national fisheries development methods in the past.

The first section reviews the consequences, at the biological, economicand social levels, resulting from the main characteristics of fishery

resources. It shows that the different benefits (economic, social,

nutritional, recreational, etc.) which fishery can produce are not usuallycompatible since they correspond to different levels of fishing. For goodfisheries management it is essential therefore, that the objectives soughtand their order of priority be clearly defined.

The second section analyses the main methods that can be contemplatedto maintain fishing at a level corresponding to the objective selected:limitation of catches, limitation of fishing effort or, better, means ofcapture, distribution of the stock itself among the fishermen, and taxation.Their respective advantages can be compared by reference to three basiccriteria: conservation of the resource at a high level of production; andeasing the application of schemes by involving fishermen in the

rationalization of their exploitation.

The final section deals with the question of the distribution amongfishermen of the wealth derived from the fishery. The importance of regularaccess to fisheries, and hence to sharing the profits, stems directly fromthe need to control the exploitation level. Aspects of this question areanalyzed successively at the national, and then the international (sharedstocks) level. The segregation of fishing activities by exclusive economiczones, as well as different distribution of the activities of fleets withinareas under national jurisdiction, changes the terms of their competition andexpands their scope; the keenness and character of such competition dependson the various stock distribution, mixture and migration patterns.

The paper concludes that under the old system of open competition itwas very difficult for countries to go beyond mere conservation of resources.In fact, at least in the international fisheries, the countries' catchcapacity was the chief instrument by which they could hope to preserve theirrights over the resource. The influence of international fisheries onmanagement practices can explain why the principles of free access and non-intervention of state authorities to control access to resources should haveprevailed so frequently in the management of national fisheries. Theextension of national jurisdiction now enables countries to consider thegeneralization of new fisheries development and management strategies andmethods.

Page 21: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

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Lee G. AndersonA Management Agency Perspective of the Economics of Fisheries

RegulationMarine Resource Economics, Vol.4 (1987): pp. 123-131

Abstract

The question of how noncompliance, avoidance and other illegalactivities, and enforcement costs affect the economically efficient level offishing and the relative efficiency has only recently been analyzed. However,the problem of selecting and optimally implementing a management regimetaking into account limited agency budgets has not been analyzed. In otherwords, there has been no analysis done on how fisheries agencies canrationally go about the business of managing fisheries. This paper attemptsto fill that void.

The discussion will be in terms of an autonomous agency that hasconsiderable flexibility in order to facilitate discussion. Of course, inreality, this flexibility may be limited by legislative mandate, and theagency will be under constraints not taken into account by this paper. Inaddition, there is an assumption that the operation of the agency is likenedto a cooperative inter-agency task force.

The first section of the paper discusses the actual 'control variables'that an agency can manipulate in dealing with the management problems. Theseinclude the choice of governing instrument (e.g. closed seasons and areas,transferable quotas, licenses, etc.), the type of monitoring procddure (e.g.sea surface, dockside, etc.), and the penalty structure such as length ofjail sentences and amount of fines.

Next, the less than direct relationship between agency controlvariables and fishing industry behaviour and its importance in practicalpolicy is described. Essentially, Anderson analyzes that the motivatingforces behind fishermen's profit maximizing behaviour does not change underregulation. However, regulation does result in 'avoidance activities' whichrequires a 'detection function' for the individual fishermen to account forthe level of regulation imposed.

In the final section Anderson analyzes the economic problem of runninga fishing agency. The primary choices facing the agency are to select theoptimal level of governing instruments and monitoring devices. A mathematicaltreatment of the paper is done in the appendix--the relationships importantin undertaking management are included.

Page 22: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

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R. HannessonFixed or variable catch quotas? The importance of population

dynamics and stock dependent costs.Marine Resource Economics, VoI.5, (1988): pp. 415-432

Abstract

This article considers two questions concerning fluctuations in fishstocks and catches: Are they possibly beneficial and would fishery managersopt for a strategy that enhances stock or catch quota variability, or both?For his analysis, three models are followed: in the first, variations instock abundance are stochastic with no population dynamics; in the second,thestock in a certain time period depends on a stochastic recruitment to thestock and survivors from the previous time period; and the third is a yearclass model that has more complicated population dynamics but is morerealistic.

Page 23: IFIP PROJECT - Food and Agriculture OrganizationMr. Bean is currently with the Department of Resource Economics at the University of Rhode Island in Kingston, Rhode Island, USA. IFIP

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R. Hannesson and J. KurienStudies on the role of fishermen's organisations

in fisheries management.FAO Fish.Tech.Pap., (300), 1988: 48p.

Abstract

This document contains two papers on the role of fishermen'sorganisations in fisheries management. The paper by Rögnvaldur Hannessondiscusses the pros and cons of giving fishermen's organisations specificroles in fisheries management. It reviews the practical experiences of groupsand organisations of fishermen in fisheries management in a number ofindustrialised countries including Japan, New Zealand, Norway, Canada and theUnited Kingdom, as documented in the literature. Hannesson stresses that theoutcome of giving fishermen's organisations a say in fisheries managementdepends crucially on the economic framework and philosophy prevailing in eachcountry. On theoretical grounds, he contends that a pseudo-market solution,i.e., the allocation of private property rights accompanied by (i) anappropriate tax system to prevent a concentration of profits and incomes andby (ii) conditionality of transferability to avoid concentration ofownership, may best achieve the twin objectives of efficiency and equity.

The paper by John Kurien sets out with a historic-cultural review of smallscale fisheries in the Indo-Pacific region. Traditionally, many communitieshad adopted well integrated systems of governing fishing practices and rightsof access to the sea. Resources conservation was not a deliberate act but wasbuilt into the production system through appropriate technology slid modes ofproduction. With the onset of "planned development", traditionalconservationist values and communal control of fisheries resources wereconstrued as barriers to development. Capital-intensive growth, spurred byprofitable export demand, created a wide disparity in the access capabilityand appropriation of fishery resources to the disadvantage of artisanalfishing communities. Concomitantly, excessive levels of fishing effort led toover-exploitation of fishery resources. The increasing of the new genre ofvocal fishworkers organisations in the region is a direct consequence ofthis process. On the basis of three case studies from India, Indonesia andthe Philippines, Kurien illustrates how fishermen's organisations havestrongly influenced governments' decisions to initiate steps for fisheriesmanagement, though their concrete involvement in the actual process offisheries management is still small. Kurien concludes that for theseorganisations to fulfil more formalised roles in fisheries management theywould require more recognition and support from governments and national andinternational organisations.

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12

Trond BjorndalThe Optimal Management of North Sea Herring

Marine Resource Economics (1985)

Abstract

The objective of this paper is to study the optimal management of NorthSea autumn spawning herring. In the 1960's and early 1970's the stocks wereseverely depleted due to an open access regime, and has since recoveredsomewhat. The question remaining is the target level for the rebuilding ofthe stocks. This question is the essence of a management program, and isanalyzed by means of a dynamic bioeconomic model.

A discrete time dynamic bioeconomic model for a fish resource isdeveloped. The objective is the maximization of discounted net revenuessubject to changes in stock size. Natural growth and recruitment are relatedto stock size, with recruitment taking place with a time lag. Conditionscharacterizing the optimal stock level are derived.

In the second section a deterministic (??) bioeconomic model is

developed. Due to the schooling behaviour of herring, it is shown that openaccess may cause stock extinction. The model is applied to North Sea herring.Estimates of the optimal stock level are given, and optimal trajectoriesderived.

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13

B.A. Cook and Parzival CopesOptimal Levels for Canada's Pacific Halibut CatchMarine Resource Economics, Vol.4 (1987): pp.45-61

Abstract

The exclusion from U.S. waters since 1981 has greatly reduced theharvest potential for Canada's Pacific halibut fleet, making it particularlyimportant that halibut resources in the Canadian zone be exploited at optimallevels. This paper provides a bioeconomic analysis of the joint-stock fisheryin Area 2 convention waters.

Using Canadian cost and revenue relationships, optimal harvestinglevels are established according to three different criteria, including notonly the maximization of resource rent, but also the maximization of a moreinclusive social surplus and the maximization of benefits for the harvestingsector. Estimates are made of halibut demand, as well as yield-effortrelationships in order to calculate the various optima.

The implications of this analysis for a Canadian fleet confined to theCanadian 200-mile zone of Area 2 are then discussed.

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B.A. CookDiscount Effects and Canada's Pacific Halibut FisheryMarine Resource Economics, Vol.5 (1988): pp. 71-77

Abstract

In the previous paper the author undertook a static bioeconomicanalysis of Canada's Pacific halibut fishery, and optimal harvesting levelswere established according to different optimizing criteria. These includethe maximization of the sum of intramarginal and resource rents, themaximization of the social surplus, and the maximization of resource rents.This paper thus extends the previous analysis to a dynamic framework.

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15

Robert T. DeaconAn Empirical Model of Fishery Dynamics

JouLual of Environmental Economics and Management,Vol.16 (1989): pp. 167-183

Abstract

The logistic model of fishery production pioneered by Schaefer is apopular vehicle for economic analysis because it enables an easy treatment ofrent dissipation and effort. However, the model has received a long historyof criticism because of its inability to corroborate empirical results and alack of realism in representing biological processes. An alternative class ofcatch-effort models have been derived from age-structured population models.The analysis thus goes beyond the single índex stock structure commonly usedin the past. The catch equations developed in the present paper are membersof this general class.

The multiple cohort approach to population dynamics is seldom used forempirical analysis of catch and effort data due to the complexity of theresulting models and to limitations on available data. The present paperaddresses these problems by adopting a discrete time framework andsimplifying assumptions for growth, mortality, and recruitment. The result isa readily estimated econometric model of the commercial catch that is

consistent with the multiple cohort paradigm. This model is applied to catchand effort data for the abalone fishery and the estimates obtained are usedto analyzed policy.

The paper focuses on estimation rather than simulation. The approachtaken in this paper permits econometric analysis of catch-effort data withinthe framework of an age-structured model of the population.

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16

Jerald J. Fletcher, Richard E. Howitt, and Warren E. JohnsonManagement of Multipurpose Heterogenous Fishing Fleets

Under UncertaintyMarine Resource Economics, Vol.4 (1988): pp. 249-270

Abstract

Most models refer to a single species harvested by a homogeneous fleetwhile commercial fishing fleets are often composed of a variety of vessels.Thus, their operations are better described as multispecies (harvestingseveral species simultaneously), multipurpose (different times of the year),or both. However, the limitations of this traditional approach does notdiminish the need for economic input in selecting management alternatives.What is necessary is a recognition by economists of both the limitations ofthis approach and the need to develop alternative approaches using the datanow available.

The objective of Fletcher et al is to present an approach to

quantitative economic analysis of commercial fisheries useful for policymodelling given current data. In other words, policy analysis when thepopulation dynamics are not well known and the fleet is composed of a varietyof multipurpose vessels. An empirical application of the methodology to thenorthern California Dungeness crab fishery is discussed. Specifically, amultivariable time-series model is specified which provides 'year to year'and 'within season' fleet behaviour. Finally, a 'simulation' of the fisheryis carried out, and the model's parameters reflect the alternative policyscenarios.

In conclusion, it was found that landings restrictions imposed on thecrab fleet affected the large vessels substantially more than the smallvessels. Naive policies that place uniform restrictions on a fleet imposecosts that vary within the fleet. The simulation results also indicated thatno benefits would result (i.e. net revenue) from a change in the opening ofthe crab season.

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R. HannessonOptimum fishing effort and economic rent: a case study of Cyprus

FAO Fish. Tech. Pap., (299), 1988: 57 p.

Abstract

This study provides a detailed analysis of the economic rent availablein a particular fishery and demonstrates the method used for calculation ofthe rent. The case of the fisheries in Cyprus is used as a basis for theanalysis.

The study begins with a discussion of the condition of open access tofisheries and the need for control over fishing effort. The three majortechniques of controlling fishing effort are examined and it is concludedthat, in the case of Cyprus, the best technique is a limit on the number offishing units.

Based on a biological analysis which was undertaken previously, thestudy proceeds to estimate the cost of fishing and to calculate the amount ofeconomic rents in the fisheries at present. Estimates of the economicallyoptimum levels of fishing effort are then provided and it is concluded thatthe economic optimum would occur if effort were significantly reduced.Measures that might lead to an economically optimum level of effort are thendiscussed.

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18

Peter A. LarkinThe Future of Fishe ies Management: Managing the Fisherman

Fisheries, Vol.13, No.1 (1988): pp. 3-9

Abstract

Larkin prefaces the discusSion by outlining the three components offisheries management: habitat protection, enhancement of fish production,and regulation of fishermen. Environmental changes in recent years haveserved to complicate the art of fisheries management. In the science of fishproduction, there has been great enhancements vis a vis biotechnologicalimprovements. The final topic, regulation of fishermen, comprises themajority of discussion.

The regulatory discussion if broken into four sectors: sport fishermen,artisanal, commercial, and aquaculture. In the sport fishing sector thetrends are towards technological improvements in angling, catch-and-releasefisheries, and the need for economists to use a 'business administration'approach in management.

Artisanal fisheries is characterized by subsistence, inshore fishingusing simple, traditional gear involving many small entrepreneurs. Theprinciple management issue remains how to share the catch between inshoreand offshore fishermen, and secondly, how to provide employment opportunitiesfor coastal fishermen when the fish become scarce. One suggestion is thepursuit of aquaculture.

The management of commercial fisheries requires a high degree ofsophistication to recognize the complex interrelationships betweenproduction, marketing, and processing. The discussion in this section focusesOD management attempts that have been made to limit excess fishing efforttypical of an open access fishery. Finally, the author argues for the needfor large-scale commercial fisheries to be 'economically rationalized' vis avis an open marketplace within the biological constraints.

In the final section management of aquaculture is discussed- Theprincipal issue concernlng a manager of an aquacultural enterprise is

maintaining a licensing scheme and providing specialist services for diseasesand nutrition. The objective is the orderly growth of the industry itself,and Larkin estimates that aquacultural production will come to equal, if notsurpass. wild production of fish.

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Scott R. MillimanOptimal Fishery Management in the Presence of Illegal Activity

Journal of Environmental Economics and Management (1986)

Abstract

There is a plethora of economic literature on fisheries economics usingmathematical models. However, little work has been done on the likelypossibility that: a) successful regulation will generate resource rents, thusfostering illegal fishery markets which inevitably destroy those rents; b)resource mangers must therefore combat the illegal harvests vía enforcementmeasures; and c) in response to police pressure, violators may undertakecostly avoidance actions, thus hampering enforcement effectiveness.

The paper by Milliman has two major themes. First, vía a simple fisherymodel, the paper explores the impact of illegal activity and enforcementcosts on optimal resource utilization. Second, the paper recognizes that inpolicy settings the first theme is unavoidably fused with an additionalissue: in the presence of illegal activity, what should regulators maximize?In other words, how should illegally generated benefits be incorporated intoa model?

Specifically, a simple fishery model is developed with legal illegalmarkets for fish, the latter market being combated by enforcement effortsput forth by a social regulator. The possible impacts of illegal activity onoptimal fishery management are then explored, and policy implications aresuggested. Concurrently, optimal regulation is calculated when bnly legalsurplus is maximized versus when both legal and illegal surplus is maximized.

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20

T. Scudder and T. ConellyManagement systems for riverine fisheriesFAO Fish. Tech. Pao.,(263), 1985: 85 p.

Abstract

This paper is concerned specifiCally with the problems of river fisheriesand associated issues. It deals in particular with the scope for building ontraditional practices, through the participation of traditional fishingcommunities, as a means of improving the quality of river fishery management.

The paper reviews the most frequently encountered problems of riverinefisheries such as over-fishing due to population pressure or migration, andartificially induced environmental factors, such as dams, pollution anddeforestation. It lays stress on the importance of studying fishingcommunities, as well as strictly biological factors, and presents a four-stage analysis of the evolution of traditional riverine fisheries. Severalundesirable consequences of this typical evolution, both on the resourceitself and on traditional fishing communities, are identified and illustratedby case studies from the Amazon and the Zambezi. Certain types of traditionalmanagement strategies are examined and assessed for their future utility.

The current ineffectiveness of many existing government river fisheriesmanagement policies is noted, as a result of lack of resources or becausethey are inappropriate, often rooted in outdated colonial legisration. Thelack of both limited access measures and of participation by local fishingcommunities are highlighted as major deficiencies.

The paper concludes by linking these two features as crucial components ofdurable river management strategies for the future, although other

possibilities for management are also reviewed and assessed. The papercontains a comprehensive bibliography for further reading.

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21

C. WaltersAdaptive management of renewable resources.

Macmillan Publishing Company, New York: 374p.

Abstract

In Adaptive Management of Renewable Resources, noted theoretician CarlWalters challenges the traditional approach to dealing with uncertainty inthe management of such renewable resources as fish and wildlife. He arguesthat scientific understanding will come from the experience of management asan ongoing, adaptive, and experimental process, rather than through basicresearch or the development of ecological theory.

In the opening chapters, Walters reviews approaches to formulatingmanagement objectives as well as models for understanding how policy choicesaffect the attainment of theses objectives. In subsequent chapters hepresents various statistical methods for understanding the dynamics ofuncertainty in managed fish and wildlife populations and for seeking optimumharvest policies in the face of uncertainty. Walters concludes with a look atprospects for adaptive management of complex systems, emphasizing such humanfactors involved in decision making as risk aversion and conflictingobjectives as well as biophysical factors. Throughout the text he usesdynamic models and Bayesian statistical theory as tools for understanding thebehaviour of managed systems, and he illustrates these tools with simplegraphs and plots of data from representative cases.

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22

Peter Andersen and Jon G. SutinenStochastic Bioeconomics: A Review of Basic Methods and ResultsMarine Resource Economics, Vol.1, No.2 (1984): pp. 117-136

Abstract

The operational analysis of uncertainty has been carried out incommerce, government, and law since the 1940's. In fisheries economics, or,more specifically, bioeconomics, the foundations for analyzing systems underuncertainty were developed in the 1970's by biologists, mathematicians, andeconomists. The aim of this paper is to review the basics of bioeconomicanalysis under uncertainty, and to report and compare principal methods foundin the literature.

The paper requires a strong background in mathematics as the reviewcentres on the specification and interpretation thereof of complex modelswhich maximize the present value of net revenues. Additionally, a'stochastic' needs clarification. A stochastic function is one where a givenvalue of the explanatory variable, x, yields a distribution of dependent ory values.

The first section of the paper deals with one of the simplest modelsof bioeconomics under uncertainty, distinguished by being linear in thecontrol variable. Then, the authors proceed to discuss more complex modelswhich explicitly recognize risk preferences, firm and industry behaviour, andmarket price effects. In effect, these are non-linear in the control variable(i.e. harvest function).

In conclusion, the authors discuss the differences in optimal policyunder stochastic and deterministic conditions.

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23

Lee G. AndersonA Discrete Dynamic Fisheries Utilization Model: Towards The

Practical Application of Modern Fisheries EconomicsUniversity of Delaware working paper, January 15, 1987

Abstract

The problem of optimal dynamic utilization of fisheries resources wasfirst addressed mathematically in the 1970's, and the change in focus from astatic optimal amount of effort or catch to an optimal time path of effort orharvest was a big step forward in understanding economic efficiency infisheries utilization.

However, the subsequent applications to fisheries management have notbeen as useful as one might have expected. A large portion of work thatresulted from the pioneering studies has focused on steady state conditions--i.e. a solution with an optimal amount of effort and harvest which remainsthe same from period to period. Unfortunately, static solutions do not applyto real world problems, where, for the most part, steady state conditions donot hold.

The purpose of this paper is to describe a discrete dynamic model ofoptimal fisheries utilization and a solution algorithm which make the resultsgenerally acceptable. The algorithm searches for an optimal time harvest pathrather than steady state conditions. Finally, the discrete model requiresless data than the continuous model.

The first section of the paper provides a description of the motivationfor the model and a brief overview of the analysis to follow. In the secondsection there is a review of the optimal depletion of a non-renewableresource--a similar framework is possible. Then, the author describes andinterprets the basic analytical model in implicit terms. Finally, the paperpresents a description of a solution algorithm for the model which can formthe basis for economic advice for practical fisheries management.

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24

Jon M. Conrad and Richard Adu-AsamoahSingle and Multispecies Systems: The Case of Tuna in the Eastern

Tropical AtlanticAmerican Journal of Agricultural Economics, Vol.13, No. 1 (1986):

pp. 50-68

Abstract

The commercial tuna fishery in the Eastern Tropical Atlantic (ETA) isbased on harvest from three species of tuna: Yellowf in, Skipjack, and Bigeye.The three species can be mixed in a single school, and thus, vessels such aspurse seiners and bait-boats which harvest near surface schools do not haveperfect species selectivity.

In this paper models are developed to examine the bioeconomics of thisfishery. In the first model, species are presumed ecologically independentand selectively harvested. Values are assigned to the parameters of a Gordon-Schaefer Model for each species based on secondary data from two sources.

In the second model, two of the species (Yellowfin and Skipjack) areassumed to be interspecific competitors and jointly harvested independent ofthe third species (Bigeye). Data on landings, effort, cost, and revenue areassembled allowing estimates of the bioeconomic parameters for the model.Specifically, optimal levels are established for effort, stocks, and yieldsand compared to the model above where all stocks are assumed independent.

Finally, equilibria from both models are compared, and Managementpolicies from a single and multispecies perspective are explored.

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John P. DollTraditional Economic Models of Fishing Vessels: A Review with

DiscussionMarine Resource Economics, Vol.5 (1988): pp. 99-123

Abstract

There has been a considerable amount of literature on market supplyand demand analysis for fishery economics. However, little has been saidabout the supply response for individual vessels or aggregation to fleet ormarket supply. Most discussions of supply have been couched in long-runaggregates, and based on well-known biological models.

The purpose of this paper is to review the vessel production function,cost curves, and related short-run concepts as presented in the conventionalliterature of fishery economics. In contrast to analysis in the past, thisreview applies traditional concepts from the standard theory of production tofishing vessels.

The theme of the paper is that the conventional rationale underlyingthe assumed shapes of textbook cost functions is not always applicable tofishing vessels. The assumption of conventional static theory are appliedto the activities of the fishing vessel, and the production process of effortis combined to consider short-run cost functions, supply curves andproduction functions for vessels.

Finally, implications for research and modelling are offere'd.

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26

Donald A.R. George, Leslie T. Oxley and Colín J. RobertsProduction relationships in fishing: a survey of the literature

and a vintage approach to modellingEconomics Research Paper, N°1, 1988, Seafish: 39p.

Abstract

The main aim of the paper is to provide a basis for the development ofa model of the UK fishing industry catching behaviour, which combines aplausible specification of production possibilities with an economicobjective function consistent with the share system of remuneration.

The study begins with an overview of the economics of productionfunctions, highlighting the neoclassical and vintage capital approaches, andreviews the existing literature on fisheries catching behaviour in the lightof these approaches.

The literature on remuneration systems, participatory firms and theimplications of share systems is then reviewed.

Finally, the structure of the proposed model is described, drawingtogether properties of the vintage capital approach, specific details onfisheries economics and the characteristic of the share system.

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27

David J. GilbertUse of a Simple Age-Structured Bioeconomic Model to Estimate

Optimal Long-Run SurplusesMarine Resource Economics, Vol.5 (1988): pp. 23-42

Abstract

Until 1986, management of the New Zealand coastal fisheries had hardlyrestricted total fishing effort except for mesh size and minimum fish sizerestrictions. However, mounting concern over declining catch rates anddeclining stocks finally led to the new management regime's being introduced.In 1986, the government introduced a system of individual transferable quotas(ITQ's) within total allowable catch (TAC) limits for most major commercialfinfish stocks. Problems developed when the initial allocation for somestocks exceeded their total allowable catches thus making it necessary to butback immediately some of the quota.

The analysis described in this paper was carried out to assist thegovernment in deciding what maximum tender price was appropriate to acceptfor a quota in each stock being bought back. Using a simple age-structuredbioeconomic model, long-run optimal surpluses were estimated which were usedto calculate the maximum prices the government should pay for each quota. Inessence, the long-run value of a quota would be equivalent to the net presentvalue of the surplus at the dynamic maximum economic yield.

In concluding, it was found that long-run surpluses proved to bedependent on the relative changes in catch rates and costs of fighing whichresulted from changes in stock biomass. Surpluses of up to 45% were obtainedfor heavily exploited, long-lived stocks, whereas only small long-runsurpluses where obtained for short-lived or very lightly exploited stocks.

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John 0.S. KennedyA computable game theoretic approach to modelling competitive fishing.

in 'Proceedings of the International Conference on Fisheries',University of Quebec, Rimouski, Canada, August 1986

Abstract

If recruited fish moves between the fishing zones of severalnations, and each nation imposes quotas on the total catch taken by itsfishermen, the nations face a game-type problem in determining their optimalquotas. Each nation may know that reducing its quota is in the interest ofoverall efficiency, but may suppose that reductions will be exploited by theother nations. A recent example of this dilemma was the problem faced by theAustralian Government in imposing a quota on the Australian catch of southernbluefin tuna, and insisting that the Japanese Government at the same timerestrict the Japanese catch.

There are various possibilities for modelling each nation's quotadecisions as a non-cooperative game. In this paper game-theoretic approach ispresented which enables solutions to be obtained recursively using dynamicprogramming. The approach is applied to the southern bluefin tuna fishery.Results on quotas and welfare are compared with those obtained forcooperative joint maximisation of welfare.

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29

R. Willmann and S.M. GarcíaA bio-economic model for the analysis of sequential artisanaland industrial fisheries for tropical shrimp (with a case study

of Suriname shrimp fisheries).FAO Fish.Tech.Pao., (270), 1985: 49p.

Abstract

This paper presents the design and the parameters of a bio-economicmodel of sequential artisanal and industrial fisheries for tropical shrimp.It consists of a biological part based on a yield per recruit (Y IR) Thomsonand Bell model and economic part based on a simple input-output model.

The model has been computerized to provide fishery administrators andresearchers with an analytical tool, which is relatively easy to be

understood and operated and is highly flexible as it can easily be adjustedto the amount of data available and as all parameters can be changed toreflect the conditions of the particular fishery under investigation.

Further, the use of the computer facilitates the conduction of sensitivityanalyses, which are of particular relevance in developing countries, wherethe lack of adequate data and reliable statistics frequently necessitates theassessment of the robustness of the results and the related policy advice tolikely errors in the applied parameters.

The model and the computer programme have been used to analyze theshrimp fisheries of Suriname. The analysis is based on a review of presentbiological knowledge on the entire Guyana-Brazil shrimp resource, a modestamount of biological and economic data available in Suriname and on datataken from similar but better studied species or fisheries in other parts ofthe world. The simulation results presented and the policy advice given havetherefore to be interpreted with caution and have to be reviewed when moredetailed and reliable data become available on Suriname's shrimp fisheries.

Two main conclusions emerge from the analyses, namely that (i) astrong expansion of artisanal fisheries for juvenile penaed shrimp in coastalswamps is likely to lead to a reduction in the shrimp catch and grossrevenues of the offshore trawler fleet and that (ii) the offshore trawlerfleet is heavily over-capitalized. These conclusions are rather insensitiveto changes in the applied parameters within reasonable limits and allow forthe formulation of two related policy advices. First that the shrimp nurseryareas should be carefully protected from damaging human interventions, notonly in regard to excessive fishing effort but also in respect to negativeinfluences of competing users of coastal areas such as agriculture orindustry (use of pesticides, drainage of swampy areas, land reclamation.etc).Second, that a gradual reduction in the number of shrimp trawlers allowed tofish in Surinames's EEZ leads to higher national incomes under the conditionthat the additional profits created by such a reduction can be extracted forthe benefit of the national economy.

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30

W.H.L. AllsoppFishery Development Experiences (1985)

Fishing News Books, Ltd., Farnham, Surrey, England

Abstract

Three chapters of this ten chapter book were selected for review basedon their general nature and applicability to the development of a fishery.The author attempts to make an assessment of fishery development'sachievements, successes, and failures, and determine what lessons may belearned for future endeavour.

In the first chapter, entitled 'historical perspectives and performancein fisheries development' the author sets the stage for the book. Thediscussion begins with an overview of the time frame involved in thedevelopment of fisheries for post-colonialistic countries. The historicaltrends are summarized including the acceleration of worldwide efforts todevelop fisheries in these parts of the world. The ímpetus for these effortswas an attempt to meet food needs from the dramatic population increases.Next, the chapter looks at the results of the development programs vis a visproduction figures, and he concludes that the initial production increaseshave levelled off in the 1980's because of overexploitation and lack ofinvestment capital. The last section of the chapter takes forward-lookingposture by developing broad objectives for fishery program development andlaying out an actual institutional framework for a fishery plan. Finally,Allsopp suggests that a post-facta diagnosis process be used to analyzedevelopment programs thus far, and he outlines an evaluation prcicedure fordoing this.

Chapter 3 is entitled 'motorization of a West African canoe fishery',and consists of a review of a project to increase the number of motorizedcanoes in an unnamed country. The aim of the project was to completemotorization of the canoe fishing fleet and set up coastal supply and servicecentres. The author then outlines the actual inputs of capital (i.e. motors)and labour (i.e. technicians) over the 5 year period, resulting outputs offish produced, and finally. impacts in the region. There were increases inproduction from 80.000 to 202,000 tons over the five year period in additionto increases in total effort (numbers of canoes motorized). There is also aninteresting socioeconomic evaluation of the project impact. Finally, anoverall assessment is discussed including an important section of 'lessonslearned'.

Chapter 7 is entitled 'institutional organization for inland fisheriesresearch and development', and review a case history of an inland fisheriesdevelopment project in an Asían country. The objectives of the project wereto conduct research on inland fisheries management, promote measures torestore and protect inland fish habitats, and to provide coordinated trainingprograms for staff of the country's agricultural university. As in theprevious chapter, there is a summary of all capital and labour inputs. Outputin this project was not measured in terms of fish production, but instead interms of the institutional framework established including staff and supportservices, laboratories and administrative services, and local fisherycentres. Finally, the author concludes with sections on impacts andassessment.

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31

M. Ben-Yami and A.M. AndersonCommunity fisheries centres: guidelines for

establishment and operation.FAO Fish.Tech.Pan., (264), 1985: 94p.

Abstract

The community fisheries centres (CFC) strategy is presented as anorganizational concept for providing the basic infrastructure and servicesneeded to deal with the problems confronting small-scale fisheriesdevelopment. Various types of fishermen's organizations, integrateddevelopment strategies, and the options for the technical services andsupport modules which go together to make up a CFC are examined in detail.

Particular attention is given to participatory identification ofimportant problems facing the fisherfolk, and the planning, mobilization oflocal resources, and implementation of local based microprojects to deal withthem.

The operation and management of the CFC, and of the associatedmultidisplinary Fisheries Development Unit which provides technical supportand training to one or more CFCs, is covered in some detail. A final chapteris devoted to the possible role of fisheries cooperatives in a CFC context.

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32

Henry Bienen and John WaterburyThe Political Economy of Privatization in Developing Countries

World Development, Vol.17, No.5 (1989): pp. 617-632

Abstract

Though this article does not address fisheries economics specifically,it is included in this document because it discusses development from abroad, political/economic perspective. The issues raised concerningprivatization, capital, and markets are relevant to administrators who areresponsible for fishery development projects.

Privatization in less-developed countries (LDC's) refers her to thesale or leasing of assets in which the state has a majority interest, andthe contracting out of publicly provided services. Privatization is in parta response to the need for fiscal austerity. Its pace and scope will bedetermined by the way in which the public sector was built. Privatization iseasier to implement than has been supposed because its austerity and equitycosts are relatively small compared to those of broader structural adjustmentprocesses.

However, there is also a high opportunity cost in time and managementfor the complicated task of preparing public assets for sale. Capital marketthinness characterizes LDC's, and 'popular capitalism' does not appear to bea realistic option. In LDC's privatization is likely to be entangled inregional and ethnic conflicts.

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33

Francis T. ChristyA re-evaluation of approaches to fisheries development:the special characteristics of fisheries and the need

for management.in 'Indo-pacific fishery Commission (FAO): Symposium on theexploitation and management of marine fishery resources inSouth East Asia, Darwin, Australia, 16-17 February 1987

Abstract

Large potential gains from marine fishery resources can be realisedthrough development projects if two conditions are met:first, the specialcharacteristics that distinguish fishery resources from other naturalresources must be fully understood and accommodated in the preparation of theprojects; and second, these characteristics must be effectively dealt with bythe adoption and implementation of management practices.

There are several special characteristics to fisheries. But the mostimportant ones are the natural limits to the yields from the resources andthe free and open access to the resources. There also several managementmeasures that can deal with these characteristics, the most important ofwhich is the control over the amount of investment in fish catching.

This paper deals with the two conditions for successful fisheriesdevelopment. It discusses the significance of these and describes some of thetasks that need to be fulfilled in order to meet the conditions. It isrestricted to the problems of capture fisheries, primarily thdse of themarine environment.

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FAORevolving loan funds and credit programmes forfishing communities: management guidelines.

FAO, Rome, 1989

Abstract

The guidelines commence by setting out the rationale and objectives forrevolving loan funds in fisheries projects and credit programmes for fishingcommunities.It is strongly recommended that - wherever possible - revolvingloan funds should be established and operated in cooperation with financialinstitutions such as rural/agricultural/ cooperative/commercial banks, localcredit and savings associations, and contribute to the development ofinstitutional credit and savings facilities for small-scale fisheries.

Fishery credit arrangements are usually administered partly by projectsand partly by financial institutions and/or local credit and savingsassociations. The guidelines refer to technical components of creditprogrammes rather than to institutional arrangements, which vary according tolocal factors.

After describing the factors to be considered before setting up arevolving loan fund or fisheries credit programme, including resources,environmental and macroeconomic aspects and related information requirements,the guidelines describe the various elements of lending policy as well asnecessary institutional arrangements. Lending and loan recovery proceduresand the administration of the revolving fund are then dealt with'in detail.

Each chapter concludes with a checklist addressing all issues relevantthe establishment and operation of a revolving fund.

An annex gives examples of all necessary documents, procedures andforms, most of which have already been successfully used.

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35

D.F. Gr6bovalMajor economic considerations for the preparation and negotiation

of fisheries joint ventures (with special reference toAfrican fisheries)

Working Paper N°40, Regional project for the development andmanagement of fisheries in the Southwest Indian Ocean

Abstract

The document addresses the major economic issues and some relatedfinancial considerations raised in the preparation, negotiation andimplementation of fisheries joint-ventures by African coastal countries.

The introduction is a reminder of the importance of foreignparticipation in the exploitation of fisheries resources which came under thecontrol of coastal African states following the extension of their nationalfisheries jurisdiction.

The main economic issues addressed in this document largely relate tothe role of the coastal states in ensuring:

A proper assessment of the commercial and economic feasibility ofthe activities to be undertaken by the joint venture

The accommodation of immediate commercial objectives with broaderdevelopment goals;

The respect of "economic fairness" in the investment and commercialtransactions connected with the joint venture, as well as in thesharing of the benefits which it is expected to produce.

As developed in the second section, these issues arise mostly from thefact hat the partners to any joint-venture are bound to have bothcomplementary and conflicting objectives when it comes to the nature of theactivities to be undertaken and the sharing of responsibilities and benefits.

Section 3 analyses how proper planning could enable the coastal statesto identify the fisheries in which joint-ventures could be encouraged and theconditions under which they could contribute to national developmentobjectives.

Section 4 addresses the major elements which differentiate an economicappraisal of a joint-venture project from a commercial one, special emphasisbeing given to the assessment of secondary costs and benefits as well as tothe ways and means to facilitate appropriate transfers of technologies andskill, and to reinforce the expected catalytic impact of joint-ventures.

Section 5 deals with transfer pricing and other related-partiestransactions, providing guidance for the monitoring and enforcement of a fairpricing of major inputs and outputs.

The document concludes by identifying basic conditions and capabilitiesthe coastal states need to develop or strengthen in order to take fulladvantage of the development opportunities joint-ventures can offer.

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S. JentoftModels of fishery development

Marine Policy, Vol 9 number 4, October 1985: pp. 322-331

AbstractCo-operative organizations has rarely been regarded as a general

remedy to management problems and 'market failures' of the fishing industry.Instead, the cooperative alternative has most often been introduced ad hoc,in times of crises, and as a solution of last resort. Drawing on Norwegianand Canadian experiences for illustrative purposes, this paper discusses thespecific fisheries problems to which the cooperative approach has beenapplied, in four sections the cooperative alternative is discussed: as avehicle for controlling distributional processes within the fishing industry;as a tool for handling problems of coordination among production andmarketing units; as a way to fulfil the needs for regulation of competitiveactions stemming from the common property resource base; as an instrument forinnovation and regional development within fishing communities. It is arguedthat the cooperative approach has much broader potential than has beenrecognised in the past and that it deserves more serious consideration whenappropriate means for solving management problems in the fisheries aresought.

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J.E. Reynolds and D.F. GrébovalSocio-economic effects of the evolution of Nile Perch fisheries

in Lake Victoria: a review.CIFA Tech.Pap., (17): 148p.

Abstract

The fisheries of Lake Victoria have undergone very substantialchanges in recent years owing, in particular, to the rapid proliferation ofthe introduced Nile perch (Lates niloticus). There has been intensecontroversy over the impact of this introduced predator species on thefisheries of Lake Victoria, especially with respect to the ecologicaldisruption caused on endemic species and its possibly adverse socio-economicconsequences.

The present review of the socio-economic aspects of the evolutionof the Nile perch fishery shows the impact of the Nile perch to have beenboth profound and ambiguous. Globally, the Nile perch fishery has been sotar an exceedingly positive development from an economic benefit and foodresource point of view. On the other hand, some serious issues warrantcareful consideration and further analysis. These relate to the distributionof benefits, especially with respect to the relative role of artisanal andlarger-scale fishery operations, and to the fundamental question of

sustainability. It is suggested that, under proper management, the fisheriesof Lake Victoria and the Nile perch fishery in particular, could continue toprovide high yields and substantial benefits for the riparian communitiesconcerned.

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Richard B. Pollnac and Michael T. Morrissey (eds.)Aspects of Small-Scale Fisheries Development (1989)

International Center for Marine Resource Development (ICMRD)University of Rhode Island, Kingston, Rhode Island

Abstract

Small-scale fisheries development is a complex process requiringeverything from availability of the resource and capital to consumeracceptance of the product. The scope of this book reflects that complexityin its consideration of stock assessment, fisheries technology, social andcultural aspects of fishermen, fishery economics and marketing, food science,and management. The chapters presented are actually individual papersprepared by their respective authors.

The first chapter examines the relationships between reproductive valueand optimal harvesting strategies in four fish species. Implications formanagement of the species are discussed.

In the second paper the authors investigate the feasibility ofdifferent technologies for developing a swimming crab fishery in Ecuador.Turning to socio-cultural factors, the third chapter examines the differencesin perceptions of the occupation of fishing between open ocean and gulffishermen in Costa Rica, and suggests that development programs that requirefishermen to change their mode of fishing may involve resistance andrecruitment problems.

The fourth paper is concerned with the relationships among incomevariability, uncertainty, and investment orientations among small-scalefishermen in Costa Rica. Economics is analyzed again in the fifth paper wherethere is an evaluation of several artisanal fisheries projects which wereimplemented in Senegal over the past decades.

In the sector of marketing. the author of the fifth paper discussesoptions for developing new markets for Latín American small-scale fishermen.Then in the sixth paper. a mictohiological and fish quality assessment inGuatemala and Costa Rica are presented demonstrating the need for improvedquality control to reduce post harvest losses and provide a better consumerproduct_

The final paper discusses factors involved in determining the costeffectiveness of gathering information for fisheries management. This is

pertinent for developing countries where limited resources are available formanagement.

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Giulio PontecorvoThe State of Worldwide Fishery Statistics: A Modest Proposal

Marine Resource Economics, Vol.5 (1988): pp. 79-81

Abstract

To preface the article, the author states 'the information andanalytical gap between those who are responsible for management,conservation, and exploitation of fisheries and the economists who work onfishery problems is typified by the deplorable state of the economic dataavailable for economic analysis and management purposes'.

The paper then gives a historical perspective how world fishery expertshad addressed the issue of improving fishery statistics over 30 years ago.The following recommendations were given at that time by one expertconcerning the need for economic statistics: 1) the efficiency of a fishery,or how productively the industry utilizes inputs such as labour, capital, andsupplies, and 2) the input-output relationships of a fishery with laterstages of fish distribution and marketing, and with other industries, andalso the comparison of the fisheries with other industries as to size,

employment, income, etc.

The paper discusses how these recommendations are still valid today,and adds that with today's world concern for global consequences, it is thejoint responsibility of each nation and a global agency such as the Food andAgricultural Organization (FAO) of the United Nations.

Specifically, Pontecorvo suggests the following three points: 1) FAOshould adjust its geographic areas and biological classifications to

adequately measure what is happening in today's fisheries; 2) there is a needto have time series data on capital, labour, and prices in key countries inaddition to the existing data on physical volume of catch; 3) stockassessment data is required, or, at the very least, biological warning signsfor different rates of stock utilization.

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Jahara YahayaFishery Management and Regulation in Peninsular Malaysia: Issues

and ConstraintsMarine Resource Economics, Vol.5 (1988): 83-98

Abstract

In Malaysia, the official view held by fishery managers is that fisheryresources in the inshore waters (0-2 miles) have been biologicallyoverfished. This has prompted the introduction of new management policiessuch as license limitation, allocation of fishing grounds, and mesh sizeregulation.

This paper examines a number of issues and constraints confronting theimplementation of these policies. In most tropical fisheries countries likeMalaysia, these issues and constraints are more complicated than mereoperational difficulties (enforcement problems, bureaucratic inefficiencies,etc.) commonly associated with fishery management in the developed countries.This stems from not only the dualistic nature of the Malaysian fisheriessector--that is, large-scale commercialized fisheries on the one hand, andtraditional small-scale artisanal fisheries on the other-but also the glaringsocioeconomic inequalities between the two.

The paper also examines the potential effects of the licenselimitation, allocation of fishing grounds and mesh size regulation policieson productivity of the individual fishermen, employment, cost of fishing, andpressure on fish stocks.

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James L. AndersonPrivate Aquaculture and Commercial Fisheries: Bioeconomics and

Salmon RanchingJournal of Environmental Economics and Management, Vol.12 (1985):

pp. 353-370

Abstract

The role of private aquaculture of salmon has become a highly debatedissues in the Pacific Northwest. The controversy revolves around a particulartype of aquaculture: salmon ranching. This process involves the hatching andraising of salmon in captivity, then releasing them to the open ocean toawait their eventual return.

This paper, using a rigorous mathematical/graphical treatment, showsthat common property problems associated with open access salmon ranching inthe absence of a commercial fishery result in inefficiency characterized byoverstocking. The presence of an open access fishery presents additionalcommon property problems which will inhibit the development of fish ranching.At prices where salmon ranching does occur, the open access commercialfishery will tend to overexploit the natural fish stock to a greater extentthan if there were no salmon ranching. It is shown that there exists a rangeof prices where both fish stocks can coexist with open access. The range ofprices under which both species can coexist can be increases through eitherrestrictions of fishery effort or reducing the catchability of avaculturedstock.

Finally, the paper discusses the cooperative management of bothaquaculture and commercial fishing results in profits from both activitiesand will not cause extinction of the natural fish stock.

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Trond Bjordal and Jon M. ConradThe Dynamics of an Open Access Fishery

Canadian Journal of Economics (1987): pp. 74-85

Abstract

It has been shown that open access exploitation of common property fishresource frequently causes severe stock depletion. With the exception of workdone by Wilen, the research done on the dynamics of open access or free entryfisheries is mainly theoretical.

The purpose of this paper is to provide an empirical application, basedon the North Sea herring fishery, with special reference to the question ofstock extinction under open access. Specifically, a discrete time non-lineardeterministic model for an open access fishery is developed and the

equilibrium is characterized. The open access exploitation of North Seaherring during the period 1963-77 is analyzed. Alternative productionfunctions are considered and estimated for the Norwegian purse seine fishery.Further, the bionomic equilibrium and approach dynamics are presented whenprices and costs are changing.

The results indicate that the resource stock was saved from possibleextinction by the closure of the fishery at the end of the 1977 season.Additionally, the author gives estimates for the optimal stock level as wellas sustainable yields. Finally, he and recommends that, with the recovery ofthe resource, a transferable quota system be implemented internationally.

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Linda L. HudginsNegotiating Fishing Access Rights in the South Pacific

Asia Pacific Economies: Promises and Challenges, Vol. 6 (1987): pp. 243-257

Abstract

The 22 island states and territories of the South Pacific claim morethan 30 million square kilometres of ocean within their respective ExclusiveEconomic Zones (EEZ's). The most commercially exploitable product is thetuna. the distant water fleets of the United States and Japan currentlyharvest over 90% of the tuna in the area. The island states have had limitedsuccess in developing domestic fishing fleets and rely on selling accessrights to their EEZ's in order to capture the income flows from the marinewealth.

The purpose of this paper is to present a model of the demand forfishing access rights in order to address the policy question of how theowners of marine resources can receive their 'fair' share of rents vis-a-visthe distant water fleets of these other countries.

Specifically, a factor input theoretical approach is used to illustratethat the demand for fishing access rights is a derived demand from the finalproduct market. In order to sell access rights to fish for tuna the islandstates must know the demand value of the resource. In the end, the ability ofthe resource owner to extract rents will depend on their relative marketposition in the international market.

Finally, the author argues that the demand for access rights willcontinue to be an economic issue for South Pacific countries regardless ofwhich foreign fleet is involved. In conclusion, the paper discusses theeconomic policies available to the island states.

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Douglas W. Lipton and Ivar E. StrandThe Effect of Common Property on the Optimal Structure of the Fishing

IndustryJournal of Environmental Economics and Management, Vol.16 (1989): pp. 45-51

Abstract

This article refutes earlier work done by McKelvey on the analysis ofmarket structure in a common property fishery. McKelvey's hypothesis was thatcoexistence of a specialized technology (i.e. single species) and a moregeneralized technology (multi-species) in the same fishery depends on thefluctuations of prices and fish abundance. Further, the randomness in theindustry's environment is necessary for the optimal intertemporal strategy tocontain coexistence of two vessel types.

The author argues that these conclusions can be established andextended within a less elaborate but more general economic model. An optimalindustry structure may be coexistence even in a deterministic world,providing the cost structure of the firm exhibits certain properties.

To analyze the issue of market structure in the presence of potentialmultiproduct processes, the authors employ the multiproduct, contestablemarket framework suggested by Baumol. A hypothetical cost structure anddemand situation is provided to illustrate that coexistence of flexible andinflexible technologies can be optimal even in a deterministic world. Themarket structure in a common property regime is them compared with astructure which assures economic efficiency.

In summary, it is demonstrated that common property leads to an excessof specialist firms.

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Gordon R. MunroThe Management of Shared Fishery Resources Under Extended Jurisdiction

Marine Resource Economics, Vol. 3, No.4 (1987): pp. 271-296

Abstract

One of the major management issues to have arisen as a result ofExtended Fisheries Jurisdiction (EFJ) is the management of transboundary orshared fishery resources. These resources have been defined by the U.N. Lawof the Sea Convention as those 'occurring within the exclusive zones of twoor more coastal states or both within the exclusive economic zone and in anarea beyond and adjacent to it'.

This paper reviews the issue from a bioeconomic perspective. A majorconclusion arising from this review is that it should in principle bepossible for joint owners of shared resources to develop effective jointmanagement programs, even though they may have significantly different viewson optimal management strategy. Finally, avenues of future research on theissue are also discussed.

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A. ScottDevelopment of property in the fishery

Marine Resource Economics, Vol.5 (1988): pp. 289-311

Abstract

To what extent is the recently invented individual catch quota a formof real property right? This article introduces six quantitativecharacteristics of all personal interests in land and natural resources. Itis shown that medieval fishing rights had some of these characteristics, butthese rights were not developed in the common law of property. The articlethen turns to modern regulatory licenses and catch quotas and examines theextent to which they embody property characteristics. In a degression, theobstacles to political acceptance of the individual fishery property conceptare served. The papel- concludes by suggesting that catch quotas may developonto shares in the fish stocks or biomass itself.

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Eric E. AndersonTaxes vs. Quotas for Regulating Fisheries Under Uncertainty: A Hybrid

Discrete-Time Continuous-Time ModelMarine Resource Economics, Vol. 3, No. 3 (1986): pp. 183-207

Abstract

There are a wide variety of regulatory instruments available forachieving economic efficiency in markets where externalities exist. All ofthem, when correctly designed, are equally effective, provided that completeinformation is available and that adjustments to the level of the instrumentscan be made costlessly. However, with the presence of uncertainty, it is willknown that one instrument or another may produce a higher expected presentvalue of net social benefits than the others. How uncertainty affects thechoice of instruments specifically in fishery management and in other dynamicoptimization settings is less well known.

A combination discrete-time and continuous-time stochastic model of adynamic fishery is used to compare the relative performance of a per unit taxand a quota in this paper. The analysis confirms the conclusion reached inthe general literature on optimal instrument choice under uncertainty: whichinstrument performs most efficiently depends on the specific fishery beingregulated.

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Trond BjorndalProduction in a Schooling Fishery: The Case of the North Sea Herring

FisheryLand Economics, Vol.65, No.? (1989): pp. 49-56

Abstract

The North Sea herring fishery takes place in the central and northernNorth Sea. A very important behavioral characteristic of North Sea herring istheir schooling behaviour. Schooling takes place both to make the search forfood more effective and to reduce the effectiveness of predators. Likewise,the schooling behaviour has peimitted the development of very effective meansof harvesting, in particular the purse seine. Thus, open access to thefishery may cause severe stock depletion.

The purpose of this paper is to undertake an empirical analysis of theharvest production function for the North Sea herring fishery. The approachis to specify a general production function, where output (harvest) is afunction of variable inputs and fixed factors. Specifically, outputelasticities (i.e. percent change in output for a given price change) andreturns to scale will be analyzed. The work is based on cross-sectional datafor 1968, 1971, and 1975.

Results indicated that there is a rising marginal product to thevariable input in the fishery, which came as a surprise to the author.Fishery regulations were found to be either ineffective or causing boats tooperate inefficiently.

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Grant T. CrothersIndividual Transferable Quotas: The New Zealand Experience

Working Paper, Ministry of Agriculture and Fisheries

Abstract

In 1986 the government of New Zealand implemented a management policybased on individual transferable quotas (ITQ's). This was in response to theneed to conserve a declining inshore fishery and a desire to maximize the neteconomic return from its fishery resources.

The paper is a detailed review of how New Zealand implemented thisplan. The introduction of ITQ's established long-term economic principleswhich have created a new fisheries management environment. Within certainconservation constraints, allocation of fisheries resources is now largelydictated by market forces.

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LIST OF IFIP REPORTS - LISTE DES RAPPORTS PPEC

I. TECHNICAL DOCUMENTS / DOCUMENTS TECHNIQUES

Gréboval D., A. Bonzon, M. Giudicelli and E. Chondoma, Baseline Survey Report1989 (1987) on inland fisheries planning, development and management

in Eastern/Central/Southern Africa. UNDP/FAO Regional Projectfor Inland Fisheries Planning (IFIP). RAF/87/099-TD/01/89 (En):104 p.

Gréboval D., A. Bonzon, M. Giudicelli and E. Chondoma, Rapport sur l'étude de1989 base (1987) sur la planification, le développement et

l'aménagement des p6ches continentales en Afrique Orientale/Centrale/Australe. Projet Régional PNUD/FAO pour la Planificationdes Pêches Continentales (PPEC). RAF/87/099-TD/01/89 (Fr): 110 p.

Gréboval D., and B. Horemans (eds), Selected Papers presented at the SADCC/FAO1989 Training Workshop on Fisheries Planning, Victoria Falls, Zimbabwe,

15-24 Novembre 1988. UNDP/FAO Regional Project for InlandFisheries Planning (IFIP). RAF/87/099-TD/02/89 (En): 138 p.

Horemans B., et Maes M. (éds), Rapport de la consultation technique sur les

1989 lacs Cohoha et Rweru partagés entre le Burundi et le Rwanda(Bujumbura, 13 et 14 Décembre 1989). Projet Régional PNUD/FAO pourla Planification des Peches Continentales (PPEC). RAF/87/099-TD/03/89 (Fr): 94 p.

Gréboval D Management of the New Fisheries of Lake Victoria: Major socio-1989 economic issues. UNDP/FAO Regional Project for Inland Fisheries

Planning (IFIP), RAF/87/099-TD/04/89 (En): 25 p.

Gréboval D. (ed), Principles of fisheries management and legislation of1990 relevance to the Great Lakes of East Africa: introduction and case

studies. UNDP/FAO Regional Project for Inland Fisheries Planning(IFIP), RAF/87/099-TD/05190 (En): 40p.

Créboval D. (éd), Principes d'am4nagement et de législation des pêcheries des

1990 grands lacs de l'Afrique de l'Est: Introduction et etudes de cas.Projet Régional PNUD/FAO pour la Planification des Pêches

Continentoles (PPEC). RAF/87/099-TD/05/90 (Fr): en préparation

Bean C.F., Introductory guide to the economics of fisheries management. UNDP/1990 FAO Regional Project for Inland Fisheries Planning (IFIP),

RAF/87/099-TD/06/90 (En): in preparation.

IFIP/SWIOP Workshop on Economics Aspects of Fisheries Development and1990 Management. Volume I: Report and Technical Documents. UNDP/FAO

Regional Project for Inland Fisheries Planning (IFIP), RAF/87/099-TD/07/90 (En): in preparation.

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IFIP/SWIOP Workshop on Economics Aspects of Fisheries Development and1990 Management. Volume II: Case studies. UNDP/FAO Regional Project for

Inland Fisheries Planning (IFIP), RAF/87/099-TD/07/90 (En): inpreparation.

Corsi F., Evaluation des pêcheries zairoises des lacs Edouard et Mobutu/1990 Albert. Projet R6gional PNUD/FAO pour la Planification des Pêches

Continentales (PPEC). RAF/87/099-TD/08/90 (Fr): en préparation

II. WORKING PAPERS / DOCUMENTS DE TRAVAIL

Bean C.E., Selected abstracts of basic references and current literature in1989 fisheries economics. UNDP/FAO Regional Project for Inland

Fisheries Planning (IFIP), RAF/87/099=WP/01/89 (En): 51p.

Ssentongo G. W., Fish and fisheries of shared lakes of Eastern/Central/1989 Southern Africa. UNDP/FAO Regional Project for Inland Fisheries

Planning (IFIP), RAF/87/099=WP/02/89 (En): in preparation.

Nfamara J.D., Recent observations on the fisheries of lake Tanganyika.1990 UNDP/FAO Regional Project for Inland Fisheries Planning (IFIP),

RAF/87/099-WP/03/90 (En): in preparation.

Horemans B., Socio-economic surveys of theartisanal fisheries on Lake Malawi:1990 a case study (Part I: preparatory work). UNDP/FAO Regional Project

for Inland Fisheries Planning (IFIP), RAF/87/099-WP/04/90 (En):in preparation.

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