Assessing Societal Costs and Benefits of Fisheries in Developing Countries: the ECOST project Pierre Failler, Haoran Pan, et al CEMARE, Department of Economics, University of Portsmouth, UK E-mail: Pierre.Failler@port.ac.uk or Haoran.Pan@port.ac.uk Tel: +44 (0)2392 844 085 The precautionary principle of consilience of ecosystems and societies: Development of an assessment method of the societal cost for best fishing practices and efficient public policies SIXTH FRAMEWORK PROGRAMME, INCO-DEV, PRIORITY A.2.2 Reconciling multiple demands on coastal zones

Major concerns Food security issues: less and less fish for local population (prices going up) Equity and poverty issues: concentration of financial assets in a few hands (mainly traders) without wealth redistribution Overexploitation issues: export species overexploited and ecosystems dammaged

eCOST background and objectives Johannesburg Plan of Implementation Integrated ocean and coastal management Fisheries Conservation of biodiversity Protection from marine pollution Science and observation Small island developing States The project falls under the logic of the decision of Johannesburg to restore the marine ecosystems for 2015 through the establishment, by 2012, of networks of protected areas and the philosophy of the Code of Conduct for Responsible Fisheries (CCRF) for a responsible fishery

Its objectives include 1-Development of far-reaching research into the capacity of traditional models to take into account the reality of ecological, economic and social effects using purely theoretical considerations, the experience of past application, and a questioning of the notion of value. 2-The construction of an efficient model for societal cost. This model is based on the consilience between economics, sociology and ecology, and takes into account the variable nature of resources and marine environmental changes. 3-Comparison of the societal costs of fishing activities. Comparative work carried out on three levels: firstly, work on the ecosystem showing the repercussions of the use of distinct techniques and practices; secondly, comparison of the ecosystems themselves in order to highlight the responses made by the ecosystems to anthropic pressure; and thirdly, a comparison of ecosystems that have free or regulated access and the ecosystems found within marine protected areas. 4-Definition of options for public policy by the formulation of certain principles found within the framework of the CCRF for responsible fishing

3 Eco-Regions and 9 Countries AFRICA Coastal Upwelling Ecosystem - the Bolama and Bijagos marine protected area Senegal Guinea Bissau Guinea Conakry ASIA Great Delta Ecosytem - the Vo Doi marine protected area Perl River (China) Chao Phraya (Thailand) Mekong (Vietnam) Caribbean Coral Reef Ecosystem - the Parque Nacional des Este Jamaica Dominicana Republic Trinidad and Tobago

The fisheries production, resource use, and income distribution Aquatic Resource Processing Distribution Consumption Landing Distribution Consumption Consumption Fishing Service Employment Population Functional income distribution Personal income distribution Labor, capital incomes Personal incomes

An economic model to assess economic costs and benefits of fisheries Ecological changes Benefits Growth Capital Labour Capital Labour Stock CPUE table Distribution Processing Production Effort Price Price Price Use table Revenue Cost Revenue Cost Revenue Cost Surplus Surplus Surplus Service Capital income Labours’ income Capital income Labours’ income Capital income Labours’ income Costs Consumption Social changes Benefits

How to measure the societal costs in monetary value? Social cost (depletion) Social cost (disturbance) Social system Economic cost (correction) Economic cost (operation) Social benefit (consumption) Economic cost (depletion) Economic system Social benefit (improvement) Economic benefit (surplus) Ecological cost (degradation) Economic benefit (exploration) Ecological system Ecological benefit (restoration) Ecological benefit (protection or management)

The indicator of economic costs and benefits EI – indicator of economic costs and benefits of fisheries N – total national population Nfish – total fishery population VAfish – fisheries sector’s total value-added GDP – gross national products

The value-added of fisheries society where cap, fbs, pro and mak represent sub-sectors of fisheries such as wild fish capture, fishery-related business service, processing and marketing, respectively.

The value-added of marine capture sector is where m, s, t, and c indicate metiers, species, time, and intermediate costs, respectively. CPUE -- a table of catch per unit of effort with two dimensions, metier by species U -- a table of intermediate uses of commodities or services with two dimensions, commodity or service by metier E -- a vector of the fishing efforts by species. PLs,t -- a vector of the landing prices of fishes by species Pc,t -- a vector of the prices of intermediate commodities or services

The catch of fish, CAT, is The biomass stock at present period depends on both the level and growth of the biomass stock, and also the catch at previous period where BIOM and BG are the biomass stock and its growth rate, respectively.

The production or make table, CPUE, will change subject to the availability of biomass stock where and are the CPUE table and biomass stock in a reference year, respectively.

The value-added of fish processing sector is where s2 -- the species processed Q -- the quantity of processed fishes X -- the activity of the processing sector Ppro -- a vector of the prices of processed fishes.

The value-added of fish marketing sector is where s3 -- the species sold Q -- the quantity of sold fish products X -- the activity of the marketing sector Pmak -- a vector of the selling prices of fish products

The value-added of fishery-related business services is where X -- the activity of the fishery-related business service sector Pfbs -- a vector of the prices of processed fishes.

The indicator of social costs and benefits Income distribution: from functional to personal Social indicators: poverty, gender development, food security

Fishery society population by group Fishing-depended groups by small-scale and industry-scale and by employee and employer Processing-depended groups by small-scale and industry-scale and by employee and employer Marketing-depended groups by small-scale and industry-scale and by employee and employer Service-depended groups by small-scale and industry-scale and by employee and employer Government – representing the national population

Fishery society employment by group (1) Production Small-scale fisher (male/female) Industrial fishing worker (m/f) Small-scale owner (m/f) Industrial owner (m/f) Foreign fleets - government (3) Distribution Small-scale dealer (m/f) Retailer (m/f) Export worker Local wholesaler (m/f) Exporter (2) Processing Small-scale fish-processing worker (m/f) Industrial fish-processing worker (m/f) Small-scale fish-processing owner (m/f) Industrial fish-processing owner (m/f) (4) Business service Small-scale worker (m/f) Industrial worker (m/f) Small-scale owner (m/f) Industrial owner (m/f)

From functional to personal income distribution Small-scale fisheries group average income N – population size of fishery community L – labor force employed Y – total income AY – average income ss – small-scale sf – small-scale fisher sd – small-scale dealer sw – small-scale worker Total income: Average income per employment: Average income per capita:

(2) Group average income for industrial fishers (workers) ine –industrial fisheries employee ifw – industrial fishing worker ipw – industrial processing worker rt – retailer is – industrial service worker m - metier Total income: Average income per fisherman across metier: Average income per employment: Average income per capita of fisherman group:

(3) Group average income for industrial fishers (owners) inr – industrial fisheries employer ik – industrial skipper ipc – industrial owner (processing) lw – local wholesaler ex – exporter isc – industrial service owner Total income: Average income per skipper: Average income per employer: Per capita income of fisheries employer group:

(4) Government income from foreign fleet PG – the price of access rights QF – the quantity of fishes harvested by foreign fleets Total government revenue from foreign fleets: Per capita government revenue from foreign fleets:

Sen’s comprehensive measure of poverty (1976) S – Sen poverty index H – the poverty headcount ratio I – the average income shortfall of the poor in percentage terms G – Gini coefficient of inequality

FGT comprehensive measure of poverty (1984) – P-alpha poverty index AY – poverty line i – ith group n – number of groups for all

Fish consumption index for food security F – fish consumption index FC – average fish consumption of each fishery group in KG i – ith group 50 – 50 KG consumption of fish C – constant – average price of fish

Gender development index W – gender development index Yw – total income of women in each group Ym – total income of men in each group i – ith group

Combined measure of social indices SI – combined social indices

The indicator of ecological costs and benefits ELI -- indicator of ecological costs and benefits of fisheries w -- weights of each species,

The indicator of societal costs and benefits where

Empirical case studies Apply to nine fishery regions in developing countries Compare results on current stage of fisheries in each region Policy simulation for future practice Data requirements A regional SAM with fisheries details Some time-series data on production and consumtion, and value