83179 1 Turning the Tide SAVING FISH AND FISHERS: Building Sustainable and Equitable Fisheries and Governance 2 ©2005 The International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW Washington, DC 20433 Telephone: 202-473-1000 SeaWeb Produced by SeaWeb 1731 Connecticut Avenue, NW 1 4th Floor Internet: www.worldbank.org/fish Washington, DC 20009 E-mail: kkelleher@worldbank.org www.seaweb.org All rights reserved. Based on the original document, World Bank Report No. RIGHTS AND PERMISSIONS 29090-GLB: Saving Fish and Fishers: Toward Sustainable and Equitable The material in this work is copyrighted. Copying and/or trans- Governance of the Global Fishing Sector mitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemi- nation of its work and will normally grant permission promptly. 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The boundaries, colors, denominations, and other information shown on any map in this work do not im- All other queries on rights and licenses, including subsidiary ply any judgment on the part of the World Bank concerning the rights, should be addressed to the Office of the Publisher, The legal status of any territory, or the endorsement or acceptance World Bank, 1818 H Street, NW, Washington, DC 20433, USA; of such boundaries. fax 202-522-2422; e-mail pubrights@worldbank.org. 2 An Emerging Crisis—Ocean Health and Fish Stocks in Decline It is difficult to comprehend the size of our oceans and The Food and Agriculture Organization of the United seas. Together these bodies of water cover 70 percent of Nations (FAO) monitors trends in the world’s fisheries. the earth’s surface and contain more than 90 percent of According to FAO, a quarter of the world’s fishstocks all the life on earth. If Mount Everest, the tallest moun- are fished at an unsustainable level. Half of all stocks tain in the world, were at the bottom of the ocean, its are fully exploited, with no scope for further increases peak would still be one mile underwater. in catches (see figure 1). Seven of the 10 top marine fish species—which together account for about 30 percent With such vast capacity, it is no wonder that not so long of all capture fisheries production—are fully exploited ago, many scientists and fishers claimed we would never or overexploited. The ability of these stocks to recover be able to over-harvest the ocean’s bounty. But scientific from human pressure or from natural disturbances (such evidence clearly shows that this assumption was false. as adverse climate conditions, pollution, and disease For example, the Millennium Ecosystem Assessment, the outbreaks) is severely compromised. first global assessment of the state of the world’s eco- logical health, published in March 2005, identified global Total world fisheries production has increased steadily fisheries as one of five global systems in critical condi- from 19 million tonnes in 1950, to 100 million tonnes tion. This is just one of many studies that show how on in 1989, to 133 million tonnes in 2002. Marine capture local, regional, and global scales, we are taking fish out fisheries (excluding aquaculture and fresh water capture of the sea far faster than many of our existing fishstocks fisheries) increased production to about 80 million tonnes can replenish themselves. by the end of the 1980s, and have sustained production at that level since (see figure 2). These data fully confirm that we have reached the maximum long-term potential Figure 1. State of world stocks in 2004 3 of the world’s marine capture fisheries. ����������� �� Even though the level of the world’s catch from marine fisheries has remained about the same since the 1980s, ��������� �� this does not mean that the total amount of fish in the sea has remained the same. In many areas, greater fish- �������������� ��� ing effort and better-equipped vessels with increasingly efficient gear are needed to catch the same amount ���������������� ��� of fish. ���������� ��� ���������� Analysis of global fisheries data has shown decreases in the mean size of individual fish and in the value of the ���������������� �� catches. As it becomes harder to catch large, valuable fish, fishers switch their targets and gear to take small- �������������������������������������������� er and often less valuable species. As a result, we are Source: FAO sequentially removing larger fish at the top of the food chain and catching smaller and smaller fish. 4 Why Should We Care About Fisheries? Clearly, overfishing can lead to a loss in biodiversity— in foreign exchange earnings for developing countries. both directly through the removal of fish, and indirectly This value is greater than the value of the combined net through its effects on food webs and highly diverse com- exports of rice, coffee, sugar, and tea (see figure 3). The munity structures such as coral reefs. However, overfishing export value of the total world trade of fish and fisher- represents far more than an ecological loss. Overfishing ies products (including aquaculture) was US$58.2 billion can have dramatic impacts on the world’s poor, who both in 2002. Half of this figure comes from developing coun- eat fish and rely on fish as a source of income. Overfishing tries, many of which also generate substantial additional can lead to fewer jobs, can increase the cost of fish, and income from licensing foreign access to their fisheries. can reduce an important revenue stream for developing countries. In other words, there is a direct link between THE FISHERIES TRADE BENEFITS DEVELOPING COUNTRIES overfishing and poverty. For these reasons, the fisheries In 1985, developing countries were net importers crisis is of immediate concern to the World Bank. of fishery products with over 1.2 million metric tonnes imported. By 2002, in perhaps one of the most dra- FISHERIES ARE IMPORTANT ECONOMICALLY matic shifts in trade balances for a natural resource Globally over 1.3 million decked and 2.8 million undecked commodity, developing countries were net exporters fishing boats extract 93 million tonnes of fish with a first- of fishery products, with total exports of 28 million hand sales value worth US$78 billion annually. Fish is the metric tonnes. Figure 3 shows how the fisheries sector most heavily traded food commodity and the fastest represents more than 10 percent of the total merchan- growing ‘agricultural’ commodity on international mar- dise export of at least 20 countries, most of which are kets. In 2002, net exports amounted to US$17.4 billion developing countries. FISHERIES RELIEVE POVERTY The fishing, aquaculture, and fish production sector em- ploys some 150 million people in developing countries. Figure 2. World production (million tonnes) from capture fisheries and aquaculture* ��� �������������� 5 There are 38 million full-time fishers, with many others ������������������ employed as part-time fishers or working in associated ��� ������������������ activities such as industry services, processing, marketing, ��� �������������� boat building, and gear making. FAO estimates that glob- �� ally the number of full-time fishers has been growing at an average rate of two-and-a-half percent per year since �� 1990—or a total of 400 percent since 1950. As a compari- �� sion, there has been a 35 percent increase in the number of individuals who work in agriculture since 1950. �� � Growth in fisheries employment has been mainly in �������������������������������������������������������������������������� small-scale fisheries in the developing world. For ex- ������������������������� ����������� *excluding aquatic plants Source: FAO ample, 90 percent of the world’s fishers are from Asia and Africa, where poverty among coastal communities is often particularly high. For many poor families, fishing is a way of reducing their vulnerability to risks by supple- menting and diversifying their incomes. Fishing is often the last resort livelihood for the poor. 6 Figure 3. FISHERIES PROVIDE A KEY SOURCE OF PROTEIN Net exports of selected agricultural commodities in developing countries Fish represents a valuable source of micronutrients, minerals, essential fatty acids, and proteins. The impor- ����������� tance of fish as nutrition is particularly high in develop- �� ing countries, where the total protein intake level may be low. For 2.6 billion people in developing countries, �� fish provides more than 20 percent of the animal pro- <������ tein consumed, compared to eight percent in industrial <������ <������ countries. This percentage rises to more than 50 per- �� cent of total animal protein in small island developing states and in countries such as Bangladesh, Cambodia, � Democratic Republic of Congo, the Gambia, Ghana, Equatorial Guinea, Indonesia, Japan, Sierra Leone, � and Sri Lanka. A decline in fishery resources caused by overfishing, or a significant increase in the price of food �� fish would seriously affect the nutritional status of ma- � � � � � � � � �� � �� �� ��� �� �� ��� �� jor population groups. �� ��� �� � �� �� �� �� �� �� �� �� Source: FAO 7 SUSTAINABILITY OF FISHERIES IS LINKED TO HEALTHY ECOSYSTEMS IN THE OCEANS Figure 4. Scientists agree that overexploitation of fisheries re- The Relative Importance of Trade in Fishery Products in 2000: Percentage of Total sources poses the greatest threat to the ocean environ- Merchandise Exports ment. As a result of fishing pressure, we are already see- ing great changes in entire ecosystems caused by the NATION loss of parts of marine food webs. Greenland 93.9 Seychelles 78.2 THE INTERNATIONAL COMMUNITY IS CONCERNED Faeroe Is. 75.3 The threat of the collapse of major global marine fisher- Iceland 64.4 ies and ecosystems has caused a strong international re- Kiribati 58.4 Maldives 53.8 action. The World Summit on Sustainable Development Panama 37.4 (WSSD), held in Johannesburg, South Africa (2002), and Mozambique 28.4 the 2003 G8 Ministerial Meetings in Evian, France called Senegal 27.0 on the international community to act to reverse the im- Nicaragua 20.3 pacts of overfishing. The World Bank is mandated to as- Namibia 19.8 sist countries in achieving the global fisheries targets set Mauritania 16.5 by the WSSD. Peru 16.1 Belize 14.4 Sierra Leone 13.3 Myanmar 13.2 Morocco 12.8 Madagascar 12.2 Ecuador 12.1 Vietnam 10.3 Source: FAO 8 The Causes of the Fisheries Crisis The causes of overfishing primarily stem from the grow- through the sale of fishing rights to foreign fleets can ing global demand for fish products, in turn, a result of in- conflict with efforts to sustainably manage fishstocks by creasing populations and incomes. Improved technology setting lower catch limits. allows fishing to expand to ever more distant and deeper waters. Subsidies often maintain fleets at levels beyond DEMAND—MORE PEOPLE ON THE PLANET WANT MORE FISH that which can be supported by the natural resource As population increases, so does the total demand for base. The difficulty in creating effective governance sys- fisheries products. Globally, per capita consumption of tems also contributes to the existing fisheries crisis. food fish products has increased from 10.5 to 16.5 kilo- grams per year over the last three decades. Future de- GOVERNANCE—THE NEED TO IMPROVE CURRENT PRACTICES mand is predicted to reach about 20 kilograms per per- Fish are mobile and traditionally a common resource son by the year 2020. The share of fish consumption in with free access for all. It is often difficult for the fish- developing countries has risen from 45 percent in 1973, ing industry and governments to agree on a manage- to 70 percent in 1997. The growth in aquaculture activi- ment system. Even with an agreed management system ties worldwide has also resulted in increasing demand in place, difficulties in enforcement of regulations and for fish feed. The percentage of the global fishmeal pro- changes in the fishery can render such a system disas- duction used by aquaculture has risen from 10 percent trous. In many countries the basic regulatory framework in 1988, to an estimated 35 percent in 2000. for fisheries management is weak or non-functional. Efforts to improve fisheries management can also be The projected gap between supply and demand in fish marred by differences between groups within the in- products is of particular concern in some regions. For dustry and governments. For example, attempts to example, the International Food Policy Research Insti- maximize revenues from foreign exchange earnings and tute and the WorldFish Center project that by 2020, the gap between supply and demand in Africa will continue to grow, even if existing levels of wild-caught fish can be maintained and aquaculture continues to progress at the current rate. SUBSIDIES—A DRIVING FORCE IN CREATING OVERCAPACITY Many subsidies are introduced for what are presumed to be socially beneficial reasons, and are not inherently perverse. However, it is now clear that the existence 9 of billions of dollars of subsidies in the fisheries sector TECHNOLOGY—FISHERS THAT ARE BETTER AT CATCHING FISH undermines efforts to develop and manage sustainable Even as the global fishing fleet has remained relatively fisheries. A number of studies by the World Bank and stable in number of vessels over the last decades, im- other international organizations estimate the range of proved fisheries technology has meant the catching ca- global subsidies as between US$12 billion and US$20 pacity has increased enormously. It has been estimated billion a year. Up to half of these subsidies promote that since 1965 there has been a 270 percent increase overcapacity and over-capitalization, leading to overex- in average fishing power. In the past, the capabilities of ploitation. The remaining subsidies are directed toward fishing vessels and the technology available to detect fisheries management, research, conservation, and pro- and catch fish often limited fishing activities to near- grams designed to reduce overfishing. shore areas, or shallow waters. The open ocean and the deep sea provided natural refuges for fish. Today, Global Positioning Systems (GPS), echo sounders, and mono- filament nets all greatly enhance the efficiency of fishing operations. For example, in the Pacific Island countries, outboard motors have allowed small-scale fishers to ex- ploit remote fishing grounds previously accessible only to local communities. 10 General Guidelines for Tools Available to Restore Successful Fisheries the World’s Fisheries Management The problem of overfishing is complex. Although there is no Successful fisheries management systems need to meet single solution to the fisheries crisis, there are a number of objectives in at least three domains: management approaches and instruments that can lead to ■ the biological—conservation and sustainable use more sustainable use and productivity. For any given fishery a objectives; unique combination of tools will be needed. The World Bank, ■ the economic—wealth and efficiency objectives; working with the international community, can support client ■ the social—meeting equity objectives, in terms of countries to selectively use the policy tools and the programs access to resources, distribution of benefits, and described below. human welfare. IMPROVEMENTS TO GOVERNANCE A successful management regime must also reflect a re- The World Bank recognizes that governments face a major alistic political consensus among key stakeholders, and challenge to establish effective governance systems that en- have the institutional capacity to define an appropriate sure sustainable supplies of fish. balance among these contending domains and objec- tives. In addition, successful management must adapt However, there are important opportunities for the World Bank itself to changes in the fishery. and the international community to build programs to improve fisheries governance. Limiting access to fishing is a fundamen- tal first step. This can be done through management programs, such as licensing, rights-based management, co-management, community management, and international fisheries agree- ments. Controlling the size and capacity of fishing fleets and their activities—the “fishing effort”—is equally important. The World Bank can help client countries design programs to offset the political or social costs of implementing pro-poor policies or removal of excess fleet capacity. 11 MANAGEMENT TOOLS Ecosystem-Based Management Large, Old Female Fish Produce More Fish During the last few decades, fisheries management plans In a study of 76 Marine Protected Areas, abundance have generally been focused on the main target species approximately doubled, biomass increased 2.5 times, in a fishery. However, fishing activities usually impact non- average body size increased by approximately one third, and the number of species present per sample target species and affect overall ecosystem functions increased by one third. (such as predator-prey interactions, species composition, nutrient flows, and habitat quality). Thus, sustainable fish- In part, this is because of a concept that describes the importance of old females that contribute a large eries management approaches require consideration and amount of eggs. For example, one 10 kilogram red management of the entire marine ecosystem that sup- snapper (Lutjanus campechanus) produces over 20 ports the fisheries—not just the target species. times more eggs at a single spawning than 10, one ki- logram snappers. Researchers have also recently found Marine Protected Areas that the eggs from older females produce larvae that A Marine Protected Area (MPA) can offer a range of protec- grow faster and are more resistant to starvation than larvae from younger females. tion—from complete prohibitions against removal of any living creature, to other regulations such as seasonal clo- sures or restrictions on the removal of specific species. the design of MPA networks, supporting alternative liveli- Science has shown that MPAs contribute to sustainable fish- hoods for affected fishing communities, and creating more eries. Marine reserves serve as refugia for target species, al- equitable systems for benefit sharing. lowing them to survive critical parts of their life cycle in order to mature and reproduce. Over time, the fish populations Buybacks in the protected areas grow and help repopulate the adja- In many fisheries, it is necessary to reduce the current fish- cent fishing grounds, the so-called “spillover” effect. The ing fleet, or fishing capacity, in order to achieve sustain- long-term benefits to fishers can outweigh the short-term able fishing levels. ‘Buybacks’ are a means of removing loss that they may experience in the early years when the fishing vessels from the fleet by decommissioning ves- MPAs are established and fishing grounds are closed. The sels or buying back fishing licenses. These programs have World Bank can help mitigate these short-term economic had mixed success; because of the level of funding and hardships through fostering science-based approaches to controls required, there is more experience implement- 12 ing buyback systems in industrialized countries than in the unwanted result of concentrating wealth in the hands developing countries. of a few. The application of property rights as a fisheries management tool requires analysis of opportunities and Co-Management and De-Centralized Decision-Making challenges on a case-by-case basis, and must meet equity Co-management refers to an arrangement whereby a objectives, both in terms of access and distribution. government and users of the resource share the respon- sibility for management of the fisheries. This has been Monitoring and Enforcement Tools one of the most successful approaches to fisheries man- Effective monitoring, control, and surveillance (MCS) agement. The advantage is that the fishers can influence are fundamental to enforcement of fishery regulations. the decisions made, while governments can ensure that Trained fishery officers and cost-effective technologies long-term management objectives are met. Participa- are required. Technology now has the potential to track tion in decision-making gains the support of the fishers, and detect fishing vessels worldwide, including those confers legitimacy on the regulations, and fosters com- engaged in Illegal, Unreported, and Unregulated (IUU) pliance, which may also reduce the costs of monitoring fishing. The international community can help develop- and surveillance. ing countries strengthen their MCS capacity and imple- ment sound fisheries governance in order to meet the Rights-Based Management fisheries targets set by the WSSD. Another management technique is to assign different forms of property rights to what previously has been con- Certification Programs for Fish Products sidered an open-access resource. Some of these systems The international trade in fisheries is very large—almost are known as Individual Transferable Quotas (ITQs), An- US$60 billion annually—and fish products are the fastest nual Catch Entitlement (ACE), and Territorial Use Rights growing internationally traded agricultural commodities. in Fishing (TURFs). While there is general agreement that Certification programs can promote sustainable fishing open access to oceans and lakes has led to overfishing, and poverty reduction by creating market mechanisms ending open-access regimes means that some people will that encourage fisheries to be managed in compliance be excluded from fishing. Experience shows that property with a suite of criteria such as stock condition and eco- rights systems can improve profitability, but may also have system impact (see Certifying Sustainability). 13 countries. The growth of aquaculture has been staggering. Certifying Sustainability Over the last 30 years there has been a 9.1 percent annual The Marine Stewardship Council (MSC) is one ex- growth in aquaculture around the world, with the greatest ample of a fisheries certification program. MSC ac- contribution to this increase coming from China. credits third party certifiers to determine if fisheries meet its environmental standard for sustainable and well-managed fisheries. Fisheries that Many types of aquaculture have very low impact on the meet the standard have permission surrounding environment. This is particularly true for to use the MSC label in marketing seaweed and cultured species such as carp, oysters, and materials and products from that some species of tilapia that feed on plants and plankton. fishery can display the MSC label. However, some aquaculture activities can have negative environmental impacts, such as local pollution from fecal Promotion of Alternative Livelihoods matter, or from the use of antibiotics or pesticides. Plants Promoting fisheries management programs alone, which and animals that escape from aquaculture operations can can result in lost livelihoods and employment, is neither have negative impacts on wild populations through the appropriate nor politically viable. Therefore, the promo- spread of disease or from competition between farmed tion of alternative livelihoods has become a common com- and wild populations. Disease transmission can create a plementary feature of fisheries reform. These alternative financial burden on the industry and require measures to livelihood programs often have the twin goals of reducing sterilize surrounding aquatic systems. the fishing effort and raising the economic standard of living of coastal fishing communities or individual fishers, Another challenge for aquaculture is its dependence on the whose income from fishing is often declining steadily. use of products from wild-caught fish as feed for farmed fish. Many cultured species, such as shrimp or salmon, grow AQUACULTURE: TOWARD SUSTAINABILITY AND RELIEF FOR best when fish proteins and oils are included in their di- WILD STOCKS ets. These ingredients for fish feeds are derived from fish- There is enormous potential for aquaculture to respond meal, fish oil, and ‘trash’ fish, which was often discarded to the growing demand for fish products and relieve pres- in the past. In 1988, aquaculture consumed 10 percent of sure on wild capture fisheries—especially in developing the world’s fishmeal supply and 16 percent of the global 14 supply of fish oil. By 2000, these percentages had grown How the World Bank to 35 percent and 54 percent respectively. In order to avoid dependence on fishmeal and fish oils, the industry Is Contributing is developing substitutes derived from soy, yeasts, and The World Bank’s current efforts concentrate on coastal palm oil. management, inland fisheries, and smallholder aquacul- ture operations, mostly in developing countries in Africa Restocking and Stock-Enhancement Programs and East Asia. The natural supply of juveniles limits the size of many exploited stocks of aquatic organisms. Consequently, The World Bank will broaden its support for sustainable there has been an increased interest in stock-enhance- fisheries at country, regional, and global levels, and is es- ment programs. Most stock-enhancement programs tablishing a new Global Program for Sustainable Fisheries involve the release of juveniles reared in hatcheries, or (PROFISH). In implementing this program, the World Bank the collection, rearing, and transplantation of wild juve- is focusing on policy reforms guided by the FAO Code of niles. It is important to closely monitor stock-enhance- Conduct for Responsible Fishing, and is working with glob- ment operations to ensure that released organisms al partners, including the Food and Agriculture Organiza- enhance, and do not compete with, existing wild popu- tion, the International Union for the Conservation of Nature lations, or reduce genetic biodiversity of wild stocks. (IUCN), WorldFish Center, and regional organizations. PROFISH will focus on good governance, sustainable fisheries policies, and the promotion of effective fisheries strategies. In cooperation with the Global Environment Facility (GEF), the World Bank is participating in regional fisheries initiatives, such as the Strategic Partnership for Sustainable Fisheries in Sub-Saharan Africa, and building on GEF’s large marine ecosystem projects. 15 The World Bank’s Commitment to Fisheries The rationale for greater involvement in fisheries issues by ■ Raising the awareness within industrial countries of the the World Bank and the international community follows di- need for reform in areas such as subsidies; rectly from the World Summit on Sustainable Development ■ Providing support and training for human capacity (WSSD) and the Millennium Development Goals (MDGs). building, including development of effective negotiat- ing skills and strategies; These initiatives identify an imperative to reduce poverty ■ Supporting more services to marginalized rural fishing among 30 million small-scale fisheries and their depen- communities and assisting coastal communities in man- dents, now faced with declining income. These initiatives aging their fisheries in a sustainable manner; also speak to the urgent need to address the looming ■ Promoting establishment and implementation of ma- ecological crisis associated with overfishing and degrad- rine reserves and protected areas; ed aquatic ecosystems. ■ Providing technical support for the development of sustainable aquaculture activities. The World Bank, working with its client countries and the international donor community, has the capacity to com- The Bank recognizes that it is time for a proactive, in- bine policy dialogue at the highest levels with specific ternational approach to improve the fisheries sector investments. It plans to help mount a global effort to re- worldwide. The challenge in moving toward a sustain- vitalize fisheries by: able fishing industry is to maintain economic growth and ■ Strengthening the institutions dealing with the gover- development by enhancing productivity and the wealth nance of fishing in the developing world; of fisheries, while avoiding the overfishing and ecological ■ Including a fisheries component in the national develop- degradation that we see today. ment and poverty alleviation strategies of countries; ■ Helping countries develop the legal and regulatory The World Bank is committed to helping establish institu- frameworks for sustainable fisheries; tions, values, and practices that will safeguard the future ■ Supporting the establishment of market-based incentives of fish resources and the health and livelihood of commu- for sustainable fishing and curtailing open access to fish- nities who depend on these resources for their income, eries through rights-based fishery management regimes; nutrition, and quality of life. 16 PHOTOGRAPHY CREDITS (numbered from left to right) Cover photograph, inside cover, p.2 photo 2; p.3 photo 1; p.4 photo1; p.5 photo 1, 2; p.6 photo 1; p.7 photo 1, 2; p.8 photo 1; p.9 photo 1; p.10 photo 3; p.13 photo 1, 2, 3; p.14 photo 1; p.15 photo 2; inside back cover, back cover. Photographer: Mr. Desire Minko BP 788 LBV Libreville Gabon E-mail: dminkoh@yahoo.fr Telephone: +241 293878 Page 8 photo 2; p.11 photo 1 Photographer: Kieran Kelleher Page 12, courtesy FAO Page 14, L.O.Lie, Fiskebåtredernes Forbund 17