1 Community-based Management in Japan: An Overview of the Institutional Framework and Transaction Costs MAKINO Mitsutaku Fisheries Research Agency, Japan

2 Contents Historical Overview of Japanese Fishery Management Regime (esp. changes in the formal institution after the modernization). Brief Analysis of Fisheries Transaction Costs in Kanagawa Prefecture (including the cost sharing btw. Local Fishermen and Government) Background paper: Marine Policy 29: (2005)

3 Early Feudal Era (- about 1700) Coastal waters were considered to be extensions of the land, and coastal villages were responsible for establishing rules governing local resource use (i.e. communal ownership of coastal area/resource). Offshore areas are basically open access.

4 Later Feudal Era (about 1700 – 1868) Labor-intensive and capitalized fisheries developed ( beach seine fisheries, large set-net fisheries) A few fishermen monopolized coastal fishery. At the Offshore area, large-scale fisheries operators established their own guilds and made rules, protected by feudal loads.

5 Modernization Period ( ) In 1854, Japan abolished the national seclusion policy of 200 years, and feudal era ended in New government carried out dramatic modernization of institutional framework As for Fishery, introduction of Top-Down, centralized license system in 1875, and dissolved into chaos, like civil war.

6 Meiji Fishery Law First law that put fishing rights and licenses in a statutory form. Rights were granted to local fishermen ’ s organizations and individuals. The nature of rights was property rights. Esp. after the amendment in 1910, exclusive real rights. The concentration of the fishing rights to a few big right holders.

7 Fishery Reform after the WWII ( ) Under the Allied Occupation, sweeping changes in national institutional framework (e.g., current constitution). Allied Power requested democratization of the fishery. To cope with domestic food shortages, and to improve the economic status of the fishermen actually engaged in fishery operations.

8 The Current Fishery Law (1949-) The fundamental concept (Section 1 of the law) is “ the multiple utilization of sea areas ”. To arrange and coordinate various fishing operations using fishing rights/licenses with designated area, gear, and species. Fishing rights are not exclusive real rights, but limited real rights (non-transferable). Various levels and scales of coordinating organizations have been instituted.

9 Coordinating Organizations Formal organizations Informal Org. ( Since 2001 )

10 Recent Legislation and Amendments In 1990, Resource Management Agreement System (i.e.official support system for resource management by FMOs) TAC (since 1997 for 7 species) and TAE (since 2001) In 2001, Basic Law on Fisheries Policy:

11 Brief Analysis of Transaction Costs : Case of Kanagawa Prefecture Coastal and Offshore fishery Production: $84,600,000 (in 2001). More than 3000 vessels are operating.

12 The Role of Local Government Responsible for the administrative procedure, and give scientific and legal advice. 132 staff in Prefectural fisheries division. (85 of them are for research) Only one policing boat (34t, 5 crews) Annual budget: $58,100,000 (including personnel expenses. About 0.4% of the prefecture total budget.)

13 Expenses by Kanagawa Pref. 10% 0.6% 2.9% 71%

14 Expenses by Local Fishermen Payment to local Fisheries Cooperative Associations as Membership fees or service charges: $6,768,000.(about 8%) 24 local FCAs in Kanagawa Pref. (186 personnel) Local FCAs are responsible for making FCA regulations, catch record management, and offer support for FMO rule-making, etc.

15 Fisheries Transaction Costs in Kanagawa Pre. ($1000)

16 Some Emerging Issues Entry barrier and competitiveness Governance of Multiple Coastal Use (esp. Recreational Use and Public Involvement) Environmental Stewardship Coastal Ecosystem Management (esp. Marine Protected Areas)

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18 TAC species Saury (Cololabis saira) Walleye pollack (Theragra chalcogramma) Jack mackerel ( Trachurus japonicus) Spotlined sardine (Sardinops melanostictus) Chub Mackerel (Scomber japonicus, S.australasicus) Sagittated calamary (Todarodes pacificus) Snow crab (Chionoecetes opilio)

19 Infrastructure Constructions Infrastructure costs is not Transaction Cost Shared with distant water fishery (and recreational uses) It should be examined more detail, including its necessities If included, B/A = 0.76, D/C = ( operational costs for fishing households are not included)