The Incofish WP 8

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The Incofish WP 8

• Rashid Sumaila ( Team)
• Fisheries Economics Research Unit
• UBC Fisheries centre
• and
• University of Namibia
• r.sumaila_at_fisheries.ubc.ca

Incofish Mid-Term Workshop March 12-16, 2007
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Outline

• Project objectives
• Deliverables
• Publications
• Presentations and media
• Fisheries subsidies
• Further work.

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Project objectives

• Provision of social and economic data to the
  project database
• Valuation of marine ecosystem goods and services
• Develop economic and social indicators of
  ineffective management
• Develop policy options for sustainable coastal
  resources management
• Write final Work Package report
• Publish at least 5 papers in the primary
  literature.

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Deliverable 1 Economic Social Database
(Submission Month 13, May 31, 2006)

• Economic and social data
• Coastal stakeholders and social data
• Economic data
• Price
• Cost of fishing
• Non-market values
• Subsidies.
• Institutional data.

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Deliverable 2Ecosystem valuesSubmission Month
19, Nov. 30, 2006

• Market
• Fishery values
• Tourism/recreational values
• Non-market
• Meta-analysis of available valuation results.

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Deliverable 2 (contd)

• Habitat-fishery interactions and values
• Discounting future generation values
• Use of ecosystem models to explore consequences
  of ineffective management.

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Deliverable 3Analysis of ineffective management
Indicators (Submission Month 25, May 30, 2007)

• Indicators of ineffective management
• Poverty index
• Subsidy index
• Conservation index
• Overcapacity index
• Policy sensitivity index.

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Deliverable 4, 5 and 6

• Deliverable 4 Policy options (Submission Month
  31, Nov. 30, 2007)
• Deliverable 5 Final Report (Submission Month
  34, Feb. 28, 2008)
• Deliverable 6 5 Scientific papers (Submission
  Month 34, Feb. 28, 2008).

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Publications (Valuation)

• Sumaila, U.R., Dale Marsden, Reg Watson, and
  Daniel Pauly (in press) Global ex-vessel fish
  price database construction and applications
  Journal of Bioeconomics.
• Sumaila, U.R. (in press) Getting values and
  valuation right A must for reconciling fisheries
  with conservation. Proceedings of the American
  Fisheries Society Conference.
• Alder, J., S. Hopkins, W. W. L. Cheung and U.
  Rashid Sumaila (2006). Valuing Marine Habitats
  Fantasy or Fact? Fisheries Centre Working Paper
  2006-03, The University of British Columbia,
  Vancouver, BC, Canada.

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Publications (Subsidies)

• Clark, C.M., G. Munro and U.R. Sumaila (in
  press). Buyback, subsidies, the time consistency
  problem and the ITQ alternative. Land Economics.
• Khan, A., Sumaila, U.R., Watson, R., Munro, G.,
  Pauly, D., 2006. The nature and magnitude of
  global non-fuel fisheries subsidies. Fisheries
  Centre Research Reports 14(6) , p. 1-34.
• Sumaila, U.R., L. Teh, Watson, R., P. Tyedmers,
  D. Pauly. 2006. Fuel subsidies to fisheries
  globally Magnitude and impacts on resource
  sustainability. Fisheries Centre Research Reports
  14(6), pp. 39-49.
• Sumaila, U.R., Khan, A., Teh, L., Watson, R.,
  Tyedmers, P., Pauly, D. 2006. Subsidies to high
  seas bottom trawl fleet and the sustainability of
  deep sea benthic fish stocks. Fisheries Centre
  Research Reports 14(6), pp. 47-51.

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Publications (Future generations)

• Berman, M. and U.R. Sumaila (2006). Discounting,
  amenity values and marine ecosystem restoration.
  Marine Resource Economics. 21 (2) 211-219.
• Sumaila, U.R. and C. Walters (2007). Making
  future generations count Comment on Remembering
  the future. Ecological Economics 60(3), 487-488.
• Sumaila, U.R. (2005). Differences in economic
  perspectives and the implementation of
  ecosystem-based management of marine resources.
  Marine Ecology Progress Series, 279-282.

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Publications (General developing countries)

• Sumaila, U.R. and K. Stephanus (2006). Declines
  in Namibia's pilchard catch the reasons and
  consequences. In Rognvaldur Hannesson, Manuel
  Barange and Samuel F. Herrick Jr. Climate Change
  and the Economics of the World's Fisheries-
  Examples of small pelagic stocks. Edward Elgar,
  Cheltenham, UK, pp. 205-214.
• Perry, R.I. and U.R. Sumaila (2007). Marine
  ecosystem variability and human community
  responses the example of Ghana, West Africa.
  Marine Policy 31(2) 125-134.
• Louise Teh and U. Rashid Sumaila (in press)
  Malthusian Overfishing in Pulau Banggi? Marine
  Policy.

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Presentations and media

• Presentations
• Several, some high-powered.
• Lots of media attention for our work.

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Fisheries subsidies A definition

• Fishery subsidies are financial payments
• from public entities to the fishing sector,
• which help the sector make more profit than
• it would otherwise.

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Why the concern about subsidies?

• Subsidies are substantial and have to be paid by
  someone
• Global estimates
• FAO estimate US54 billion annually
• World Bank estimate by Milazzo in 1998 was US
  14-20 billion per year
• Re-estimated in this work to be between 30-34
  billion annually.

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Why the concern about subsidies?

• Subsidies have socio-economic, distributional and
  trade impacts on fishing communities, regions and
  countries
• Fisheries subsidies recognized world wide as
  contributing to overfishing.

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Why the concern about subsidies?

• Overcapacity and overfishing
• overcapitalization and subsidies

Biomass
Biomass tkm-2


1.8-2.51.5-1.81.2-1.50.9-1.20.7-0.90.6-0.70.
4-0.60.3-0.40.2-0.30.1-0.20-0.10-0
Courtesy V. Christensen
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Why the concern about subsidies?
Source Froese and Pauly (2004).
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How subsidies induce overfishing
Gordon Schaefer bioeconomic model
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Identifying categorizing subsidies

• FAO (2002, 2004) guidelines
• Milazzo (1998)
• OECD publications
• Potential impact on fish stocks.

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Identifying categorizing subsidies

• Good subsidies (investment programs in fish
  stocks)
• Fisheries management and services
• Fisheries research and development.
• Bad subsidies (disinvestment programs in fish
  stocks)
• Tax exemption programs
• Foreign fishing access payments
• Boat construction renewal and modernization
  programs

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Identifying categorizing subsidies

• Fishing port construction and renovation
  programs
• Fishery development projects and support
  services
• Marketing support, processing and storage
  infrastructure programs, and
• Fuel subsidies.
• Ugly subsidies (programs can be either good or
  bad)
• Fisher assistance packages
• Vessel buyback programs
• Rural fishers community development programs.

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Computing subsidies

• Created a database of the 12 types of subsidies
  identified for 144 maritime countries for 1995 to
  2005
• Information for each country was filtered into 3
  groups
• Group 1 Monetary value of subsidy available
• Group 2 No subsidy amount reported but it is
  known that subsidies are provided
• Group 3 Either no information, or where we know
  that no subsidies were provided.

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Computing subsidies

• Obtain a ratio of subsidies to countries landed
  value (LV) for Group 1
• Obtain developed developing country mean of
  this ratio for each subsidy type
• Use weighted averages to fill the gaps, i.e.,
  computed Group mean multiplied by LV for Group 2
  countries
• Sum subsidies for all countries (known and
  estimated amounts) to obtain global magnitude.

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Total global subsidies
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Comparing estimates
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Subsidies by category
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Subsidies by geographical region
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Subsidies by major fishing nations
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Subsidy indices

• Percentage of Bad subsidy to total subsidy
• Ratio of landed value/total subsidy
• Number of fishers to per 1000 subsidy.

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Indices Top 10 performers
Countries (Bad/Total Subsidy) Country LV/Total Subsidy Country Fishers/ 1000 Subsidies
New Z. 0.0 Nigeria 21 Nigeria 3523
Peru 1.0 New Z. 14 Indonesia 996
Nigeria 4.4 Chile 10 Egypt 626
Ireland 14.0 UK 8 Bangladesh 411
USA 20.7 Netherlands 6 China 389
Sweden 22.2 Iceland 5 Vietnam 263
South Africa 27.6 Indonesia 5 India 242
Japan 28.7 Turkey 5 Sri Lanka 202
UK 33.8 Australia 5 Philippines 173
Canada 35.2 Sweden 5 Pakistan 128
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Indices Bottom 10 performers
Country (Bad/Total Subsidy) Country LV/Total Subsidy Country Fishers/1000 Subsidies
Namibia 87.4 Peru 0.8 France 7
India 87.6 Brazil 0.8 Peru 6
Taiwan 88.0 Bangladesh 0.6 New Zealand 6
Spain 89.7 Ghana 0.5 Australia 4
Yemen 90.9 Latvia 0.5 Iceland 4
Thailand 92.1 Taiwan 0.4 Namibia 2
Brazil 94.0 Thailand 0.4 Argentina 2
Turkey 96.7 Japan 0.4 Canada 1
China 98.8 Denmark 0.2 Denmark 1
Malaysia 99.7 Ukraine 0.2 Angola 0
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Further work

• Continue
• populating our databases
• developing our valuation approaches
• working on socio-economic indicators
• Collaborate with work package 7 on the global
  cost of overfishing, and the conservation index
• Working towards deliverables 4, 5 and 6.
• Present in a number of forthcoming meetings.

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Thanks for your attention
EC Contract No. 003739