The Incofish WP 8 Rashid Sumaila (& Team) Fisheries Economics Research Unit UBC Fisheries centre and University of Namibia Incofish Mid-Term Workshop March 12-16, 2007

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

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.

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.

Deliverable 2 Ecosystem values Submission: Month 19, Nov. 30, 2006 Market: –Fishery values; –Tourism/recreational values; Non-market: –Meta-analysis of available valuation results.

Deliverable 2 (cont’d) Habitat-fishery interactions and values; Discounting & future generation values; Use of ecosystem models to explore consequences of ineffective management.

Deliverable 3 Analysis 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.

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).

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.Global ex-vessel fish price database: construction and applications 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 # , The University of British Columbia, Vancouver, BC, Canada.

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., The nature and magnitude of global non-fuel fisheries subsidies. Fisheries Centre Research Reports 14(6), p Sumaila, U.R., L. Teh, Watson, R., P. Tyedmers, D. Pauly Fuel subsidies to fisheries globally: Magnitude and impacts on resource sustainability. Fisheries Centre Research Reports 14(6), pp Sumaila, U.R., Khan, A., Teh, L., Watson, R., Tyedmers, P., Pauly, D Subsidies to high seas bottom trawl fleet and the sustainability of deep sea benthic fish stocks. Fisheries Centre Research Reports 14(6), pp

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

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 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) Louise Teh and U. Rashid Sumaila (in press) Malthusian Overfishing in Pulau Banggi? Marine Policy.

Presentations and media Presentations: –Several, some high-powered. –Lots of media attention for our work.

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.

Why the concern about subsidies? Subsidies are substantial and have to be paid by someone; Global estimates: – FAO estimate: US$54 billion annually; – World Bank estimate by Milazzo in 1998 was US$ billion per year; – Re-estimated in this work to be between billion annually.

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.

Why the concern about subsidies? Overcapacity and overfishing overcapitalization and subsidies Fishing Intensity Biomass Courtesy V. Christensen Biomass t·km -2

Why the concern about subsidies? Source: Froese and Pauly (2004).

How subsidies induce overfishing MEY MSY Bionomic equilibrium (BE) Total cost of fishing effort (TC) Total Revenue (TR) Fishing effort (E) TR & TC ( $) E1E1 E2E2 E3E3 Max. rent TC1 TC2 BE 2 BE 1 TR & TC ($) E3E3 E4E4 Fishing effort (E) Cost-reducing subsidies Gordon Schaefer bioeconomic model

Identifying & categorizing subsidies FAO (2002, 2004) guidelines; Milazzo (1998); OECD publications; Potential impact on fish stocks.

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;

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.

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.

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.

Total global subsidies

Comparing estimates

Subsidies by category

Subsidies by geographical region

Subsidies by major fishing nations

Subsidy indices Percentage of ‘Bad’ subsidy to total subsidy’; Ratio of landed value/total subsidy; Number of fishers to per $1000 subsidy.

Indices: Top 10 performers Countries % (Bad/Total Subsidy)Country LV/Total SubsidyCountry # Fishers/ $1000 Subsidies New Z.0.0Nigeria21Nigeria3523 Peru1.0New Z.14Indonesia996 Nigeria4.4Chile10Egypt626 Ireland14.0UK8Bangladesh411 USA20.7 Netherla nds6China389 Sweden22.2Iceland5Vietnam263 South Africa27.6 Indonesi a5India242 Japan28.7Turkey5Sri Lanka202 UK33.8Australia5Philippines173 Canada35.2Sweden5Pakistan128

Indices: Bottom 10 performers Country % (Bad/Total Subsidy)Country LV/Total SubsidyCountry # Fishers/$1000 Subsidies Namibia87.4Peru0.8France7 India87.6Brazil0.8Peru6 Taiwan88.0Bangladesh0.6 New Zealand6 Spain89.7Ghana0.5Australia4 Yemen90.9Latvia0.5Iceland4 Thailand92.1Taiwan0.4Namibia2 Brazil94.0Thailand0.4Argentina2 Turkey96.7Japan0.4Canada1 China98.8Denmark0.2Denmark1 Malaysia99.7Ukraine0.2Angola0

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.

Thanks for your attention EC Contract No