1. DISCIPLINING FISHERIES SUBSIDIES: INCORPORATING SUSTAINABILITY AT THE WTO & BEYOND Fisheries Development Strategies: Past, Present, and Way Forward Lidvard Grønnevet Environment Department World Bank Thursday March 1, 2007

2. OVERVIEW DEVELOPMENT OVER TIME PRESENT WORLD BANK ACTIVITIES SUCESSFUL FISHERIES MANAGEMENT WAY FORWARD

3. TRENDS IN FISH PRODUCTION (FP) AND HUMAN POPULATION (HP). Production: million metric tones. Population: billions.

8. TRENDS IN FISHERY PRODUCTS EXPORT AND IMPORTS US $ billons

9. Exporters and importers of large pelagic fish (62% of exports) EEZ fished Importing country

10. Exporters and importers of invertebrates (62% of exports) EEZ fished Importing country squid crab, squid octopus lobster shrimp shrimp, squid

12. SHIFTING PARADIGMS IN FISHERIES DEVEOPMENT PHASE 1Direct production input: boats, gear, motors, ice-machines etc. PHASE 2Technical training: technical experts, local training institutions, training abroad PHASE 3Framework and management: laws, fishery regulations, management training, management experts PHASE 4Monitoring control and surveillance: boats, planes, software, training PHASE 5Co-management & institution building: setting up new institutions, modifying old ones PHASE 6Regional programmes, rights-based management (licences, IQs, IVQs ITQs

13. Anchoveta variation El Niño

14. Evolution of the focus of fisheries sector assistance

15. Total World Bank costs and number of fisheries projects and fisheries project components (1980- 2003)

16. PROFISH Global Program on Sustainable Fisheries OBJECTIVE: ‘strengthen governance of the world’s marine fisheries’ Two tracks: 1. Country-level sector reform roadmaps to achieve effective sector governance and reform aligning donor interventions capacity building 2. Regional and global initiatives building regional and global awareness and consensus using improved fisheries management tools

17. the rent drain telling the story of overfishing in economic terms make country-level estimates of rent loss to support reforms build economic arguments to justify the political and social costs of change – a focus on finance ministers “Where is - Fish in - the Wealth of Nations?” – track the depleting capital account and to follow the estimates … develop an arsenal of tools to capture lost rent, including a roadmap for the political economy of reform address the social costs of adjustment (e.g. fleet reduction) build equity into change management (pro-poor) Preliminary global estimate: US$ 50 billion/ year

18. SDN Vice Presidency for Sustainable Development Integration of ESSD and INF to SDN The new Vice Presidency for Sustainable Development will work across all spaces – from the biggest cities to the smallest towns, at the global, national, and local levels –

19. Agriculture - Fisheries ~ 20% wheat & 5% of rice are exported; Exports in 2000 : 26 million tonnes of product worth 55 million USD; ~ 40% of fish produced are exported; Imports : 27 million tonnes worth 61 million USD. INDICATORAGRICULTUREFISHERIES Tenure/ ownership private property transferable rights common property, poorly-defined rights Resource/ crop fixed, measurable mobile, hidden Capital fixed (farm, equip.) mobile (vessels) Weather impactseasonal daily + seasonal Harvest/ market seasonal, ‘mono’ daily, multispecies Productsdurable highly perishable

20. Successful Fisheries Management  Dimensions for success in fisheries management: Economic - meeting wealth and efficiency objectives Societal - equity objectives; distribution and access Biological - meeting conservations objectives Political – stability in relation to political changes  Require institutional capacity to define balance and to implement responsible over time  Require institutional and policy environment that creates incentives to conserve fish and optimize wealth generation  Political commitment and will are essential (From Bostock 2005)

21. Changes in catch and season length in the central Gulf of Alaska halibut fishery from 1970 to 1994, before the introduction of IFQs

23. 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

24. LESSONS FROM NAMIBIA: Right based fisheries management system. Gives incentive to harvest effectively. Generates considerable resource rent. Effective enforcement of rules. Cooperation and support from fishers. Payment (fees) for the right to fish. Establishes the principle that broader society has the right to benefit from the productivity of the natural resources. Also: that management of the fishery is part of the cost of fishing. (Ensures that portion of the rent does not become capitalized into the trading of rights.) Overcapacity can create economic vulnerability that can seriously undermine the robustness of the management system. (P. Manning 2005)

25. SIERRA LEONE Objectives The aims of the paper are to: (i)present an assessment of the fisheries sector in Sierra Leone, highlighting the potential opportunities for contributing to national development, and the major issues which need to be addressed in order for this to be successful and sustainable; (ii) outline a broad strategy for fisheries development in Sierra Leone; the main features of this strategy would be expected to form the basis of a dedicated programme of support by donors to underpin and enable its successful implementation in the future.

26. Focus: wealth-based approaches that aim to optimize economic returns from fisheries for the long- term benefit of society in Sierra Leone. Goal: to ensure that the fisheries sector makes a significant contribution to sustainable development and pro-poor economic growth in line with the national PRSP.

27. FSS will focus on four sets of outputs: Opportunities for sustainable fisheries development - identified, assessed and supported; An enabling environment for sustainable fisheries development will be created and enhanced over time; Capacity will be created to capitalize on opportunities, in both the public and private sectors, to create and sustain both the enabling environment and fisheries management systems; Fisheries management system options will be analyzed, leading to the establishment and operationalisation of appropriate fisheries systems in Sierra Leone over time.

28. www.worldbank.org/fish