.·, FISHERY Sector Policy Paper _, . ~ • •. *** HD9450.6 .S431982 •• • li~i~i~f~~l~l i SLC030269 D o I rso.6 S43 982 ! FISHERY Sector Policy Paper SECTORAL LIBRARY !NTERNI\TIONAL BANK FOR RECONSTRUCTiO~ AND DEVELOPMENT AUG 1 61984 INTERNATIONAL MONETARY FUND WASIIINGTON, D.C. The World Bank Washington, D.C. 20433, U.S.A. FISHERY Sector Policy Paper December 1982 This paper was initially prepared for presentation lo the Executive Directors of the World Bank., It was written by Alfredo Sfeir-Younis and Graham Donaldson. Vera Ullrich and Barbara Koeppel provided valuabie assistance. Emmanuel D'Silva edited the manuscript for publication. ©1982 The International Bank for Reconstruction and Development/ The World Bank 1818 H Stree.t, N.W. Washington, b.C. 20433, U.S.A. All rights reserved. Manufactured in the United States of America. Library of Cbngress Cataloging in Publication Data Sfeir-Younis,!Alfredo, 194 7- Fishery sector policy paper. Prepared b:y Alfredo Sfeir-Younis and Graham Donaldson. Bibliography: p. Includes index. 1. Fishery policy. 2. Fish trade. 3. Food supply. I. Donaldson, Graham, 1937- . II. Title. HD9450.6.S43 1982 338.3'714 82-23700 ISBN 0-8213,0138-1 First Printing; December 1982 I FISHERY Contents Page Summary ......................................... 5 Chapter 1: Status and Prospects of World Fisheries , .. 10 Supply Trends ....................... , ............ 10 Consumption Patterns ... .. ... . ......... .. .. .. ..... 16 Nutritional Importance .. . .... . ......... . .......... 20 Chapter 2: Changing Conditions for World Fisheries . 21 Extension of Jurisdiction: A New Dimension ... .. .... 21 Issues Concerning Fishery Development ............ . 24 Chapter 3: Structure and Dynamics of the Industry . . 27 Large-scale Fisheries ............................... 27 Small-scale Fisheries ..... .. ........ .. ... .. . ... .. . . . 29 Aquaculture .. .. ... . . , ........... . ................ 32 Economic Contribution of Fisheries ...... . .......... 35 Processing and Marketing: Critical Functions ......... 35 Chapter 4: Development Objectives, Constraints, and Options .................................... 38 Development Objectives . .. . ...... . . .... .. . . .. .... . . 38 Development Constraints .......................... 40 Development Options and Strategy ............. .. ... 42 Designing the Investment Program .. . ............... 43 Chapter 5: The Role of the World Bank . .. .. .. ..... 47 Past Problems with Bank-supported Projects ......... 49 Recent Trends and Future Strategy . . ...... . .. . ..... 52 Sector Management ............................... 54 Environmental Considerations . .. ... . .... . . .... .. .. . 56 List of Tables Page 1. Present Fish Catch and Potential for Major Groups of Species . .. ............. . ..... 11 2. Estimated Production and Potential of Aquaculture in Asia ........................... 13 3 4 3. Past Consurpption and Projected Demand of Fishery Products in Developing Countries ...... . 17 4. Leadirig Countries in the Harvest of Selected Species, 1973-1978 ...... . .. , ... . ... . .. . ... .. . 22 5. Relative Importance of Small-scale Fisheries (SSF) .. .. ......... . . . ......... . ............ . . 30 6. World Bank Lending for Fishery Projects, Fiscal 1964-81 .. . .. ... . .. ... . . .... .. . ..... .... 48 7. World Bank Lending for Fisheries, by Project Components, Fiscal 1948-81 . ....... . . 50 List of Figures 1. Annual World Fish Landings, 1948-77 . .. .... . . . 14 2. World ,Production of Aquatic Organisms by Type of Economy, 1966-75 .... . ........... . 15 3. Distribution of World Catch by Continents, 1977 . .. . .. ...... ... . .. ...... ..... ....... . . .. 16 4. Propo~tion of Fresh Fish in Overall Fish Consumption, 1951-71 . .. .. . . . . ..... . ... . .. . .. 19 5. The Extended Economic Zones and Scope for Fisheries ....... . ........ : ................ 81 Annexes 1. Glossary . . .... .. . . ... . ...... . .. .. ... . .... . . .. 65 2. Classification of Principal Fishing Gear ...... . . . . 67 3. Production of Protein Foods for Direct Human Consumption, 1948-75 ............ . . ... 68 4. Production of Food for Indirect Human Consumption, 1948-75 . . .. . . ...... .... .... .... 69 5. Potential Effects of Extended Jurisdiction of the Extended Economic Zones •.............. . 70 6. The Main Fishing Countries ................... 73 7. Fishery Pr oducts: World Catch of Aquatic Organisms .. . . .. . ... .. .. .. . ....... .... .. .. .. . 74 8. World Catch by Selected Countries ......... .... 77 9. Largest Producers of a Sample of Aquaculture Products, 1975 ..... .. .......... . . 78 References ..... .. . .... . .. .. .... .. ........... ... .. . 79 Summary Fishery is an important sector in most developing countries; in many cases, it contributes over 5 percent to the gross na- tional product (GNP). Some 12 million fishermen are to be found in these countries, and at least an equal number are employed in related support and marketing activities. Fish is an important source of animal protein. The average per-capita consumption of fish currently exceeds thirteen kilograms a year. In Asia, over I billion people rely on fish for their pri- mary source of protein. The total catch of fish in the world has remained fairly stable for the past decade at around 70 million metric tons yearly. It is estimated that this catch could increase to 120 million tons by managing heavily exploited stocks better and by intensified fishing of lightly harvested stocks. Of the 70 million tons of fish caught, some 50 million tons are consumed by human beings; the remainder is reduced to fishmeal, oil, and other by- products. The introduction in the 1970s of Extended Economic Zones, up to 200 miles from shore, changed the context of fishery development and management. By 1979, five developing countries-Chile, China, India, the Republic of Korea , and Peru, with 25 percent of the world's catch-were among the ten largest fishing nations. Many developing countries have entered into joint ventures and established licensing arrange- ments to achieve controlled exploitation of their offshore stocks. However, the bulk of underexplo_ited fish stocks are in tropical inshore areas of developing countries; they offer po- tential to small-scale domestic fisheries. Structure and Dynamics of the Industry Although there is a natural progression from small-scale (artisanal) to large-scale (industrial) fisheries, the two often exist side by side, often together with aquaculture. Generally, large-scale fisheries have more limitations and carry higher risk than small-scale ones. Fish stocks in offshore areas are highly mobile. Rising capital requirements and high energy costs have increased operating expenses for large boats more than for small boats; they have similarly affected onshore processing and storage. The technology employed also re- 5 6 quires highly trained personnel-crew, technicians, and managers. The resources required are all in short supply in developing countries. However, the economies of scale are significant, especially where substantial stocks are available. Small-scale fisheries provide most of the fish consumed by people in developing countries. Their advantage lies in pro- ducing for the local market and in drawing on stocks in inshore coastal or riverine fishing grounds. Because millions of arti- sanal fishermen are scattered throughout rural and coastal areas, development of this sector requires decentralized efforts. Storage and marketing are major limitations on small-scale fishery development, especially in areas that lack transport infrastructure and shore facilities. Where they are designed to permit it, such facilities can serve both large and small boats. Although conflicts between the two are frequent, they can be minimized by appropriate planning and manage- ment. Aquaculture is the smallest but fastest-growing part of fisheries. There are several million fish farmers, mainly in South Asia and Southeast Asia, each usually managing a pond less than one hectare in size. Where there is no aquaculture, it is usually because there is no tradition of eating fish. It could also be that supplies from capture fisheries provide for the existing market, or that the availability of land or water is limited. Where there are markets, and land and water are available, recent changes in technology relating to feeding, domestica- tion of new species, and management have made aquaculture an attractive prospect. Aquaculture has several advantages: relatively low fuel costs, lack of dependence on a fickle re- source base, and potential for integration with agriculture. Development Goals, Constraints, and Options For those countries that have the resources, the develop- ment of fisheries can produce considerable benefits. The ben- efits often include (i) increased employment and incomes, (ii) improved diets through increased availability of protein, (iii) additional earnings of foreign exchange through the export of high-value fish and mollusks, for which there is a substantial and growing market in developed countries, and (iv) conserva- tion of the natural resource base for harvesting in the future. The major constraints encountered in promoting fishery development are (i) the mobility of stocks (not only is it difficult to locate them, the ·risk is also there that they will move across 7 national boundaries); (ii) the lack of organizational and institu- tional arrangements at the local ievel, including the limited availability of support services such as repairs arid provision of spares, and access to credit; and (iii) institutional coristraints at the regional and national levels that include a limited capacity to plan, implement, and regulate the development of the sec- tor. Recognizing these many constraints, the options for fishery development include: (a) expanding inshore fisheries by increasing the number and size of boats allowed by the natural-resource en- dowmerit; (b) developing aquaculture as a key activity in the rural economy by integrating it with agricultural or other activities; (c) providing infrastructure, including ports and landing piers, fish hatcheries, ice plants, cold storage, transport systems, marketing centers, and distribution networks; (d) improving marketing chains; (e) upgrading extension and research services and training systems; (f) strengthening administration; (g) strengthening the institutions that provide credit, estab- lish land and water rights, and regulate fishing rights; and· (h) establishing community fishing organizations such as cooperatives. Because the structure of the fishing industry in most de- veloping countries is predominantly small in scale, because more equitable distribution of benefits is often a high priority, and because resources are scarce and large-scale operations require a far greater share of capital, most low-income and middle-income countries will probably design a strategy fo- cused on artisanal fisheries and aquaculture. The choice between these two, or the degree of emphasis on each, will depend largely on the natural-resource endowment at a coun- try's disposal. Issues that deserve special attention in fishery projects in- clude: (i) organizing an industry that involves people in re- mote, scattered villages; (ii) rationalizing the credit system that, until now, has tended to be inaccessible to small-scale fisher- men; (iii) resolving conflicts attached to land tenure in the case of aquaculture; (iv) enforcing regulations; and (v) developing 8 processing and marketing systems and other ancillary services without which an increase in production achieved through investment in harvesting will be sacrificed. Role of the World Bank Between fiscal 1964 and fiscal 1981, the World Bank 1 provided $259 million in loans for twenty-seven fishery proj- ects (that cost, in all, nearly $4 70 million). The projects can be classified into four broad categories: boat building, construc- tion and improvement of ports, development of small-scale fisheries, and aquaculture. Within these areas, funds have been allotted in the following proportions: boat building (32 percent); ports (27 percent); technical assistance (13 percent); fish ponds (15 percent); onshore infrastructure (5 percent); processing and marketing (4 percent); and the remainder (3 percent) for working capital, project preparation, repairs, and maintenance. The major objective has been to increase production for export. Nearly 60 percent of the loans were utilized for large- scale fishery development; it included the building of large vessels, as well as the facilities to service them. Processing and marketing, on the other hand, have represented a small share of total lending. A review of the Bank's experience in developing countries reveals that some significant problems have emerged in the implementation of fishery projects. Because of inadequate assessment of the social, institutional, and economic con- straints on fisheries, the rates of return on investments to fishermen, as well as to the countries, have repeatedly been less than expected. In some cases, investments have been made in large-scale fisheries that have proved inconsistent with an ap- propriate overall strategy. While most small-scale fishery proj- ects assisted by the Bank are not yet completed, it has been found difficult to coordinate the various elements of fis~eries among the large number of participating fishermen. Recently, in response to priorities established by developing countries, emphasis has shifted to financing inshore coastal 'References to the World Bank include the Internatio11al Bank for Recon- struction and Development (IBRD) and the International Development Asso- ciation (IDA). The financial year of these two institutions runs from July 1 to June 30. All costs are in US dollars. 9 fisheries, with the aim of increasing the flow of benefit~ to the rural pqpulation and raising the standard of living of fisher- men's families. Support for small-scale fishery projects is in keeping with the Bank's main development objectives. At present, twenty fishery projects, with an estimated total Bank involvement of approximately $540 million, are in- cluded in the Bank's lending program for the period fiscal 1982-86. The lending program will mainly focus on small-scale fisheries. Developing countries may also be prepared to invest in industrial fisheries; in such cases, in addition to other sources of external funding, the International Financial Cor- poration and the development finance companies may be ex- pected to be involved. It is expected that Bank-supported projects will, whenever possible, provide technical assistance to build appropriate ad- ministrative, research, and training institutions and develop environmental policy. However, the Bank expects to rely on the Department of Fisheries of the Food and Agricultural Organization of the United Nations (FAO) and other special- ized institutions to provide the necessary skills. There is no expectation that all countries that have fishery resources will wish to develop them further. However, in those situations where resources and markets are favorable, and where interest in such development exists, the Bank stands ready to provide assistance. Chapter 1: Status and Prospects of World Fisheries Millions of people throughout the world depend on the oceans, lakes, and rivers-which cover 70 percent of the e;irth's surface-for food, transportation, and recreation. In the developing countries, about 12 milliqn fishermen working fulltime and, perhaps, twice that number working parttime rely on nearby waters for their livelihood. In addition, an equal or even larger number are employed in related activities such as process~11g, marketing, di~tribution, !:>oat bui~ding, and net making. The fisheries 1 are predominantly artisanal (small~ scale), though often ip.dustrial (large-scale) · fisheries and aquaculture exist alongside. Supply Trends One-third of the world'~ catd~ in 1978 (apout 72 .3 million metric tons) was harvested by fishermen in low-income and middle-in~ome developing countries. Just as important, the potential f9r increasing the output in developing countries is substantial: it is estimated that an additional 31 million metric tons of se~food a year could be harvested from their coastal waters (see Table 1: rows "other demersal'' and !'pelagic stock" and sixth column); this would represent an increase of 60 percent over the total consumed by humans in 1977. Moreover, fish for human cqnsumption, which, according to FAO data, grew worldwide by a total of 21 percent between 1970 and 1~78, is e~pectec! to inqease further and at an even faster rate in low-income and middle-income countries as prices of livestock soar and the demand for low-cost protein rises. ~Fisheries include all activities related to the exploitation of fish; they fall into two categories: (i) capture· fisheries, which are b.y far the most important and which refer to the harvesting of natural fish stocks found in oceans, freshwater lakes, and riv~rs, along ~ith the handling, marketing, processing, and distribu- tion of fish and fish products, and (ii) aquaculture, which is performed in prackish coastal arl!as, irrigation reservoirs, canals, natural and man-made ponds, tanks, cages, pens, and lagoons. It involves propagating and raising aquatic organisms under human control and manipulating at least one stage in their life cycle befire harvesting. 10 Table 1 Present Fish Catch and Potential for Major Groups of Species Potential increase from natural stocks Potential Total world catch• ('000 tons) Aqua- Stock ('000 tons) ('000 tons) (% of potential) culture ,, 1966 Total• Manage- ment• Increased 1977 1966 1977 effort Salmon 650 453 480 70 74 170 170 + Flounder and·cod 6,700 4,692 3,786 70 57 2;914 2,500 400 (+) Herring and anchovy 15,600 13,709 1,801 88 12 13,799 13,800 Shrimp and lobster 1,670 d 830 1,542 50 92 128 25 100 (+) Tuna 2,260 1,031 1,592. 46 70 668 100 550 (+) Other demersal 0 37,100 9,628 17,097 26 46 20,003 4,000" 16,000 Other pelagic 0 40,200 13,045 28,655 32 71 11,545 3,000 8,500 (+) Cephalopods "(50,000 d). 833 1,165 2 2 (50,000) (48,000) Other mollusks Not defined 2;115 3,011 Probably large ++ Krill· (50,000 d) 123 0.2 (50',000) (50,000) Mesopelagic fish (50,000 _d) (50,000) (50,000) • Figures of catches exclude discards at sea. Potential increase by utilization of these discards included under "Management." • This column is equivalent to the difference between total estimated potential minus total world catch in 1977. 0 These species are located in coastal areas of developing countries. d ·denotes preliminary estimates. "(+)" denotes aquaculture possibilities limited to fattening with specially provided food. "+ +" or "+" denotes opportunities to increase production from aquaculture using natural food sources. Source: FAO/COFl/79/lnf. 4, May 1979, p. 22. 12 Some of the more traditional species have been fully exploited,1 particularly in the North Atlantic, and, in a few cases, their supply has been threatened. But elsewhere in the Atlantic and the Indian Oceans, there is scope for increasing production, perhaps with the exception of shrimp and deep- swimming tuna. The aggregate catch in the world grew by an average 8. 7 percent a year in th~ 1960s, and it is thought that it could increase by 50 million metric tons a year in the future: about half from rebuilding and better management of cur- rently depleted or heavily fished stocks (especially anchoveta and herring) and the remainder from intensified fishing of those stocks now only lightly or moderately harvested. Beyond this, there are also some prospects for expanded production of unconventional species, like krill, which until now have been caught only in very limited quantities. 2 The volume of production from aquaculture could also be substantially increased over the next two decades, in both developed and developing countries, because there are an estimated 23 million hectares of land that have adequate supplies of water. In particular, Asian countries, such as Burma, India, Indonesia, and Thailand, have great potential in this area (see Table 2). The scope for developing the fishing industry depends, of course, not only on the availability of the resource, but on demand as well. And while estimates of demand are carefully calculated, they cannot be assessed easily. There are many ~ kinds of edible fish, crustaceans, and arthropods that are con- sumed in varying proportions in different societies. In addi- tion, a large proportion of fish is used for purposes other than direct human consumption, especially in fish meal, which is used for animal feed. Thus, an increase in the world's con- sumption of animal protein could increase the demand for fish products. Although output has remained fairly stable in the last few years, the rate of growth in supply has declined substantially from the high recorded in the 1948-1972 period (see Figure 1). 1This means the stock has been fished to its maximum limit, beyond which the future catch is endangered. 2 For a detailed a nalysis of world fish resources, see "Review of the State of World Fishery Resources," Marine Resources Series1 Fisheries Department, FAO, Fisheries Circular No. 2, March 1981. 13 Table 2 Estimated Production and Potential of Aquaculture in Asia Potential sites Area Production for development Country ('000 ha) ('000 tons) ('000 ha)• Burma 2.9 1.5 6,477.0 Kampuchea, Democratic 0.4 5.5 15.0 Lao PDR 0.2 0.4 20.0 Pakistan 30.8 37.5 682.0 Vietnam 95.0 101.5 500.0 Bangladesh 76.5 65.0b 476.0 China 739.2 2,743.8b 53.8 Hong Kong 1.5 7.5b 2.1 India 611.9 849.0b 2,730.0 Japan 0.5 550.1b n.a. Korea, Republic of 75.3 285.8b 452.0 Nepal 0.1 5.2b 2.5 Sri Lanka 10.0 17.2b 278.0 Indonesia 266.9 199.3° 10,787.0 Malaysia 9.1 73.7b 150.0 Philippines 187.6 152.8b 526.0 Singapore 0.7 0.5b 2.4 Thailand 37.8 161.0b 4,522.0 --- Total 2,146.4 5,255.8 27,675.8 n.a. = no data available. • The areas include all existing freshwater and brackish-water swamps, many of which are important in their present state as nurseries for commercial species. The total cannot, therefore, be counted as potential aquaculture development. " Data obtained from T. V. R. Pillay, "State of Aquaculture," Table 1. The paper was presented at the World Conference on Aquaculture and International Aquaculture Trade Show, Venezia '81, held in Venice, Italy, September 21-25, 1982. Figures in Table 1 for seaweeds production have been excluded from total aquaculture production. Source: International Development Research Centre, "Research Reenforcement in Aquaculture for Countries of South Asia and Southeast Asia," Vancouver, Canada, April 27, 1978, p. 73. The decline in growth is due to the dramatic drop in the catch of anchoveta in the Pacific Ocean, off Peru and Chile. How- ever, the supply of fish for human consumption in developing countries grew by 4.8 percent a year during 1962-1975-a much higher rate than was registered for livestock (3.5 per- cent) and cereals (3 percent) over the same period. These increases generally were distributed evenly, but they were par- ticularly substantial in Argentina, Chile, Cuba, Republic of Korea, and Thailand as a result of greater domestic demand or expansion of foreign markets. Nevertheless, FAQ's supply projections suggest that it is unlikely that the average annual growth will exceed 1 percent to 2 percent during 1980-1985; during that same period, an annual growth in demand of 3.5 percent is projected. 14 Figure 1 Annual World Fish Landings, 1948-77 (million metric tons) (Millions) sci 70 ., . - Marine waters 60 .,,.. .... ·-·-·-·-·_,,, 50 • _,,. ,,· •✓ I i 40 i 30 20 10 . - - - - - - - - - - - - - - Inland waters ---::::-/'=>'~. -•,.---, 0 ,___~_ _.___ __,__ _...__ _.__ __.__ _.___..,___ 1948- 1952- 1958- 1963- 1968- 1973 1974 1975 1976 Aooh_, _.__.c__ _ _ _ , 1977 1952 1959 1962 1967 1972 Source: FAO, Fisheries Circular No. 710, Revision 1, p. 22. Rome, May 1979. By 1979, five developing cotiritries-Ch1 le, China, India, Republic of Korea, and Peru~were among the ten largest suppliers of fish and other aquatic organisms (see Annexes 5 arid 6). Moreover, low-income and middle-income countries were able to increase their share of the world's catch from 28 percent in 1966 to 33 percent in 1975 (see Figure 2). Asia ,:iccounted for the largest share, 45.5 percent in 1977 (see Figure 3). 15 Figure 2 World Production of Aquatic Organisms by Type of Economy, 1966-75 (%) .. 100 '- 90 ' - CPEs CPEs CPEs 30.0 33:0 35.0 '- 70 .... 60 '- LDCs LDCs 28.0 30.0 50 .... LDCs 33.0 40 ' - .. 30 ,_ 20 ' - DCs DCs DCs 42.0 37.0 32.0 10 ,_ 0 1966 1970 1975 Not~: LDCs = Developing Countries; DCs = Developed ~ountries; ~nd CPE~ = Centrally Planned Economies: In developed countries, Japan and Spain excepted , growth rates of fish products used for human consumption declined, while growth rates in the supply of fish meal were high. The latter were the result of increased demand for livestock feed and technological innovations in harvesting the fish (for example, use of pow~r blocks in purse seining). Thus, severe pressure was placed on many sardine-like fish stocks (such as the Atlanto~ Scandian herring) that are used in fish-meal pro- duction. 16 Consumption Patterns Of the total fish production of 70 million metric tons, some 50 million metric tons are consumed directly by humans; the remainder is processed into fish meal, oil, and other by- products. While more than twice as much meat as fish was used for direct human consumption in recent years-120 million metric tons compared with 50 million metric tons- projections by the FAO suggest that fish consumption could, nevertheless, increase by 20 million metric tons during the period 1975-1985; this increase constitutes an aggregate growth rate of 3.5 percent based on current population and per capita income growth and with no major shifts in relative prices. The consumption of fish is expected to increase from Figure 3 Distribution of World Catch by Continents, 1977 (in percent) 17 an average of about thirteen kilograms a person in 1972-1974 to an estimated fifteen kilograms in 1985. The average per capita direct consumption in the world is expected to be 4.5 kilograms above the average in developing countries. But the intake in the developing countries is expected to rise along with increases in population and incomes (see Table 3). The pro- Table 3 Past Consumption and Projected Demand of Fishery Products in Developing Countries Per person Consumption Projected demand 1972-74 1985 Live weight per kilogram World 13.1 14.9 Developing countries 8.4 10.4 Regions Far East 8.1 10.0 Africa 8.2 9.3 Latin America 7.7 8.4 Near East 3.1 4.0 Countries Korea, Republic of 38.9 46.1 Senegal 33.8 39.8 Philippines 31.4 37.8 Ghana 28.1 28.4 Malaysia 22.5 23.8 Thailand 21.1 23.7 Cuba 19.5 22.9 Chile 16.9 18.2 Peru 15.6 16.5 Bangladesh 11.6 13.4 Tanzania 11.4 12.4 Indonesia 9.6 12.0 Zaire 9.0 9.6 Nigeria 6.8 9.0 Brazil 7.4 8.3 Argentina 6.1 7.7 Turkey 5.0 6.9 Morocco 4.8 5.4 Mexico 4.6 4.8 Egypt 3.2 4.2 India 3.0 4.1 Iran 1.2 2.0 Source: FAO, "Fishery Products: Supply, Demand, and Trade Projections, 1985," ESC:Proj/78/5, June 1978. 18 jected increase in the world's demand for fish is significant if contrasted with the projected levels of production, which are lower; and unless there is an increase in supply, prices could, indeed, rise. The sharpest rise ip consumptioriis expected to take place in South Asian and Southeast Asian countries, where the net increase is projected to be 1.9 kilograms per capita by 1985 (see Table 3). In some Latin American countries, mq~t fish supplies go to the urban centers. As this population is expected to expand rapidly, growth in the demand for fish will continue in this region as well. In some Middle Eastern countries, on the other hand, the level of fish intake is low because other high- protein foods, such as meat and pulses, are available; it is also due to the lack of infrastrµcture (roads and transport) needed to supply prospective consumers. In rural areas everywhere, fish supplies are generally obtained only in canned or cured form; landlocked countries have to rely more on the usually underdeveloped freshwater fisheries and aquaculture. As fish-processing technology changed, so did the manner in which fish was consumed. During the 1950s, for example, nearly half of the world's catch was consumed fresh. By 1977, as a result of increased use of freezing techniques, expanded markets, and harvesting of new species, consumption of fresh fish declined to 30.5 percent (see Figure 4) . In contrast, frozen fish, which accounted fqr less than 1 percent of the world's consumption in the 1950s, rose to over 17 percent by 1977, since freezing facilitated the marketing of highly perishable species over .long distances. The share of canned fish consumed doubled in the period 1951-1977, rising from 6.7 percent to 13.7 percent, while cured fish (pickled, sundried, salted, smoked, and fermented), which represented 33 percent of the world's catch in 1951, accounted for only 11 percent of consumption by 1977. The drop in the consumption of cured fish ~as the result qf in- creased urbanization and considerable investment in transport and roads which allowed many fishermen to sell their stock fresh, rather than cure it as in the past. But, because curiQg is the least expensive form of processing, fish prepared in this form is mainly consumed in developing countries. Most of the fish consumed in fishing villages that are often isolated from existing markets, is cured. The potential value-added of these village-level activities is high, even in areas where primitive processing methods are used. Moreover, it is possible that as a . 19 result of the rising cost of energy and, thus, of cold storage, a larger share consumed will be of cured fish in the future. Several products are also derived from fish, in the form of oils, meal, and fertilizer. Demand for fish oil, in particular, is increasing, as itis used in paints, soaps, candles, and phar- maceutical products. In 1977 alone, 19.6 million metric tons of fish-27 percent of the world's catch-were processed irtto oils and fish meal (see Figure 4). Figure 4 Proportion of Fresh Fish in Overall Fish Consumption, 1951-71 Percent 50 □ FRESH 0 CURED 0 REDUCTION 40 ■ CANNED Ii] FROZEN 33 30 27 20 17,1 11.2 10.7 10 1951 1977 1951 1977 1951 1977 1951 1977 1971 Sources: FAQ Yearbook of Fisheries Statistics. 20 Nutritional Importance For a given outlay of funds, more animal protein of high quality can be obtained from fish than from any type of meat. As protein from livestock becomes more costly, relatively inex- pensive fish protein, the main source of animal protein in poorer communities throughout the world, will become even more important. Already, in many tropical countries, fish con- sumption now exceeds that of all other animal protein: in Southeast Asia, possibly a billion people rely predominantly on fish for animal protein. Thus, changing circumstances in this industry would affect populations far ·beyond those directly involved in the production process. The protein content of fish varies between 17 percent and 20 percent of dressed weight, and the quality of the protein, which depends partly on the method used to preserve, process, and prepare the product, is as high or higher than that of all meats and milk, though lower than that of eggs. Moreover, fish are efficient converters of feed to live weight, and where catch and handling overheads are low, they provide a relatively low-cost source of animal protein. In fact, in some Latin Amer- ican countries, the cost per unit of protein derived from fish was found to be always lower than that from beef, chicken, or pork; this relationship is expected to prevail elsewhere, as well. Because supplies are projected to fall far short of demand, and because there is considerable potential to exploit fish stocks, many of the developing countries are now considering developing their fisheries. Chapter 2: Changing Conditions for World Fisheries Extension of Jurisdiction: A New Dimension Interest in the development of fisheries increased in the late 1970s following the creation of Extended Economic Zones (EEZs). This placed jurisdiction of waters up to 200 miles from shore in the hands of individual coastal nations. Many of these were developing countries. Before 1974-1976, when the pro- posal was generally accepted, there was no international framework to determine the rights of access. Large foreign fleets routinely fished the waters of all coastal states. Although the seas theoretically belonged to all, in practice they were fished by the relatively few that had invested in highly ad- vanced technology. The developing countries, in fact, had little information about the size and location of fish stocks. But with the establishment of the EEZs, 1 the coastal states, including many developing countries, obtained jurisdiction over their adjacent ocean waters and the consequent responsi- bility for managing the resources in these areas. At present, only thirty-six countries account for 90 percent of the world's catch. Of these, more than one half is taken by Canada, France, 1 The origin of the coastal jurisdiction debate, addressed during several Law of the Sea Conferences, has long historic roots. In 1608, Hugo Grotius wrote the famous pamphlet, "Mare Liberum" (the free sea), defending the principle of open access of Dutch fleets to the Indian Ocean. The basic framework of mare _ liberum was based on two major arguments: (a) that marine resources are not exhaustible and (b) that marin e resources are not appropriable. Grotius stated that individuals could claim land ownership because land is an exhaustible resource and, therefore, it is subject to appropriation (tenancy). Mare liberum was challenged by John Selden's anti-Grotius principle of "mare clausum" (the closed sea) in 1635. Selden stated that the sea is not common to all men , and that it,just as land, can be subjected to public appropriation (tenancy). Selden's framework was based on the same principles countries use to appropriate inland waters (rivers and springs, for example), which under Roman law could become private property. In addition , Selden argued that sea resources are exhaustible and, therefore, strict licensing of foreign fishing should be en- forced. Depending on economic and social conditions, both principles-mare clausum and mare liberum-have been adopted or rejected by many nations in history. Now, most coastal states have adopted the mare clausum philosophy as applied up to 200 miles from their coasts. For detailed discussion see F.T. Christy, Jr. and A. Scott, The Common Wealth in Ocean Fishing (Baltimore: The Johns Hopkins University Press, I 965). 21 Table 4 "° "° Leading Countries in the Harvest of Selected Species, 1973-1978 (pounds of live weight) 1973• 1978b Total Percent Total Percent Special Country harvest of Country harvest of category (million total (million total lbs) lbs) Ground llsh 0 USSR 7,834 30 USSR 1,920 18 Japan 7,071 27 Norway 890 8 Norway 1,861 7 Japan 782 7 UK 1,549 6 UK 513 5 World total 26,050 100 World total 10,744 100 Tuna Japan 1,368 36 Japan 1,445 38 USA 342 '9 USA 370 8 Korea, Republic of 309 8 Philippines 303 8 Spain 128 3 Korea, Republic of 247 7 World total 3,763 100 World total 3,778 100 Salmon Japan 371 36 USA 367 40 Canada 245 23 japan • 214 24 USA 213 20 USSR 158 18 USSR: 195. 19 Canada 144 16 World total 1,044 100 World total 8,895 100 Halibut USSR 83 31 Canada 90 34 Canada 40. 15 USSR 41 16 Norway 38 14 USA 16- 6 Japan· 33 12 Norway 11 4 World total 265 100 World total 261 100 Sardines/Herring USSR 1,849 16 Japan 3,389 16 Japan 1,058 9 USA 2,498 12 South Africa 1,047 9 USSR 2,001 10 Denmark 844 7 Denmark 721 100 World total 11,450 100 World total 20,794 100 Shrimp India 458 19 India 401 14 USA 372 15 USA 384 13 Thailand 244 10 Thailand 262 9 Mexico 160 7 Indonesia 234 8 World total 2,441 100 World total 2,936 100 Lobster Chile 56 13 Chile 82 21 USA 40 9 USA 36 9 Canada 36 8 \ Canada 35 9 France 29 7 UK 35 9 -World total 424 100 World total 381 100 Crab USA 235 29 USA 407 41 Japan 172 21 .Japan 161 16 USSR 41 5 Korea, Republic of 54 6 Korea, Republic of 32 4 France 39 4 •.World total 805 100 World total 987 100 Clams USA 617 45 Japan 540 32 Japan 491 36 USA 467 28 Malaysia 88 6 Korea , Republic of 173 10 Korea, Republic of 77 5 Malaysia 111 7 World total 1,374 100 •World total 1,665 100 Anchovy Japan 8,581 20 Peru 2,313 35 Peru 5,483 13 Namibia 720 11 USSR 5,387 13 South Africa 487 7 USA 393 9 USSR 448 7 World total 42,659 100 World total 6,631 100 • Frederick W. Bell, Food from the Sea: The Economics of Politics of Ocean Fisheries (Boulder, Colorado: Westview-Press. 1978), Table 3.3, p. 87. • FAD Yearbook of Fishery Statistics, 1978. N) 0 Includes flatfish, flounder, sole, hake, and haddock. (.)0 24 Japan, Norway, the UK, the USA, and the USSR. However, the ranking of the four leading producers for a sample of ten major species shifted significantly from 1973 to 1978; several developing countries either entered or moved up the ranks (see Table 4). In 1978, the Philippines appeared as the major harvester of tuna, Indonesia moved up to be among the top four shrimp producers (along with India, which has long been predominant), and Namibia ranked second to Peru in anchovy catch . A clear implication is that structural changes in the industry have already occurred which have involved some transfer of boat titles, some investment in new boats, and a proliferation of joint ventures between countries with fish resources and countries with fishing fleets. In all cases, the revenues of the developing countries concerned can only have increased. For many tropical countries, however, the major fish stocks lie inshore, within ten miles to fifteen miles from the coast. The actual location and productivity of these fisheries are deter- mined by the nature of the continental shelf-where this ex- tends out several miles, the fishing grounds are similarly ex- tended. The inshore areas largely have been unaffected by the declaration ofEEZs; in fact, th~ increased attention paid to the potential and the management of fisheries has benefited them also. In most cases, the management problems of inshore areas are similar to those in extended zones. Issues Concerning Fishery Development Linked to the rights of access are numerous complex issues. Fundamentally, there is the matter of whether to develop an indigenous fishing industry at all, or to lease the waters to foreign interests. If the decision is made to proceed with de- velopment, the following issues must be resolved : (a) the extent of foreign or domestic involvement; (b) the type of industry to promote-that is, large-scale or small-scale fisheries and/or aquaculture (see Chapter 3); (c) the kind of technology to employ; (d) the pace at which development should occur; and (e) the amount to invest in supporting infrastructure (ports, storage capacity, boat building, marketing, and so forth). The management of these newly acquired resources pre- sents developing countries with enormous tasks. To begin with, although an initial assessment of the resource must be made-in order to design appropriate investment policies- little data and expertise exist in these countries relating to the 25 nature of the fish stock. Once policy is defined, an institutional framework is needed to implement, manage, and regulate development. The job is almost Herculean because most fishery departments are poorly developed (if at all); their tech- nical and managerial expertise is in short supply and their infrastructure and equipment (docks, storage facilities , trans- port, and so forth) are virtually nonexistent. Just as weighty is the task of enforcing jurisdictional rights over the EEZs. Regulations must be stipulated about (a) the size of the mesh in the nets (large enough to allow small fish to escape); (b) the size of the net itself (to limit the amount of the catch); (c) the number of days foreign and domestic fishermen are permitted to fish the waters; (d) the size of the fishing vessel and engine (to limit the quantity of the catch); (e) the areas designated specifically for small-scale, artisanal fishermen; and (f) the weight of the total catch allowed. All these contr:ols can be (and are) violated; equipment (such as planes, radar, and patrol boats) and manpower (inspectors, pilots, and others) are therefore required to implement them. At present, many developing countries have bypassed these tasks by entering into joint ventures among themselves or with firms from developed nations. In the long run, these arrange- ments are likely to prove advantageous. The issue of whether to develop fisheries and how much to invest will be resolved to a large degree by the fertility of the coastal waters which determines the nature of the stock (the size and type). While the fertility of oceans generally is high, it is not uniform across regions and varies with weather patterns, depth of the seas, available nutrients, and water chemistry. Thus, in West Africa's very fertile water, huge sardine stocks can be found. Other species are abundant off the coast of Latin America, as well as in areas off South Asia. The number and type of species in a region also vary markedly between temper- ate and tropical environments. In temperate waters, there are few species, each with large populations; in tropical seas, there are hundreds of species, each with relatively small populations. As a result, the biological nature of the resource becomes the starting point for the gear, equipment, and modes of harvest- ing. The potential for harvesting fish stocks is not uniform. Al- ready, there are many stocks that are fully exploited as a consequence of overfishing. Others are likely to reach this ... stage in the next ten to fifteen years; this is true for most 26 mollusks, such as clams and oysters, and crustaceans, such as shrimp and lobster. However, the production of both demersal and pelagic fish 1 , though somewhat constrained in many areas, can be increased in the aggregate. In addition, there are species in various regions which are not currently harvested because they are not economically viable-that is, they bring low prices or are costly to capture. With proper management, these species could form the basis for developing the industry in some locales. Finally, the scope for fisheries development is largely limited by market coTiditions, the structure of the existing industry, and the resources that are available. Development is often constrained by different interests competing for resources, especially between aquaculture and agriculture, and between large-scale and small-scale fisheries over access to resources and markets. Of course, such constraints affect each element of fisheries differently. •• 1 Demersal species are those found near the bottom of the oceans; pelagic species are those near the surface. Chapter 3: Structure and Dynamics of the Industry Although the development of fisheries from small-scale to large-scale is the logical path, in practice, artisanal, small-scale fisheries often exist side by side with larger-scale industrial fisheries. Aquaculture can also be carried out in either a large- scale or a small-scale mode. The relative advantages and disad- vantages must be examined in detail before making a choice of investment in the large-scale or small-scale sectors. Large-scale Fisheries It is difficult to state precisely the point at which fishing enterprises should be labeled large or small. Generally, large- scale fisheries have the following characteristics. They: • are organized in a manner similar to agroindustrial firms in the developed countries; • are relatively more capital intensive; • provide higher incomes than artisanal fisheries , for both boat owners and crew; • provide most of the canned and frozen fish; • produce most of the fish earmarked for reduction 1 and export markets. In order to benefit from economies of scale, the processing and distribution functions are integrated vertically (for exam- ple, the catch with processing); they require highly concen- trated support services (ports, repair facilities, water, electric- ity, and ice) and are generally located in urban areas. While the crew is not usually involved in marketing or distri- bution directly, processing occurs on board in some cases. Because large vessels traveling long distances must preserve the catch for considerable time periods, "factory ships" have been designed that contain sophisticated preserving and pro- cessing facilities. The jobs created in large fishing enterprises are few when compared to those in small-scale operations, but employment 1 Reduction refers to the process by which fish are processed into fish meal and oil. 27 28 generated in the support industries is relatively high. Wages are similar to those in other large industries. Small-scale fishermen, in contrast, divide the catch (or the proceeds from it) among the participants. At present, there are a number of developing countries with large-scale fisheries at various stages of development. Some countries, such as Cuba, Ghana, the Republic of Korea, and Thailand, have well-developed industrial fleets that harvest stocks in distant waters. Others, such as Argentina, Chile, India, Indonesia, Mexico, Nigeria, and the Philippines, have developed large domestic fl<=;ets and processing industries, even though they have an extensive ·small-scale sector. Still other countries, such as Cameroon, Ivory Coast, Papua New Guinea, and Senegal, have a few large boats or a small process- ing industry, or both; these countries, perhaps, have the best potential for expansion. In some of the countries, the boats and factories are owned or managed by foreigners. But the proportion of the fleet that is domestically owned is increasi11g, as is its size. In general, large-scale fisheries are subject to far greater constraints and are a more riskier business than small-scale fisheries. First, they require that there be a large, continuous supply of fish, such as tuna. But as schools of fish migrate unpredictably, there is no such thing as a fully dependable stock. Second, rapidly rising energy costs have increased operating expenses for large boats much more than for small boats, thus decreasing their ability to compete. Third, capital costs are very high; a large part ·of those costs requires foreign exchange, not only for the vessels and equipment, but for the sophisticated technology needed for firms to compete with countries and corporations already advanced in large-scale fishing for the limited migratory catch. Fourth, the sophisti- cated equipment requires highly trained operators at all levels, from management to crew. In short, large-scale fisheries use up resources that are in scarce supply in developing countries and the risk that returns will not be sufficient to sustain invest- ment is very high . In most developing countries, therefore, the potential for expanding large-scale operations is extremely limited. • However, where economies of scale are important- particularly when harv·e sting large stocks of tuna, cod, other deep-sea pelagic species, and shrimp for export-large-scale fisheries have a competitive advantage. The advantage arises 29 from their low variable costs per ton of output and from their vertical integration with the processing industry. Small-scale Fisheries Small-scale fisheries are virtually the sole suppliers of animal protein to several hundred millions of people in developing countries. In Bangladesh, Burma, Cape Verde, The Gambia, Ghana, Guyana, India, Indonesia, Nigeria, Senegal, Sierra Leone, Sri Lanka, Tanzania, Togo, Trinidad and Tobago, Yemen Arab Republic, and the People's Republic of Yemen, they supply at least 75 percent of domestic demand. Further, the activities of artisanal fishermen are essential to the local economy of coastal areas, as they provide employment and income for millions of people (see Table 5). • Small-scale fisheries are generally located in rural and coastal areas, near lagoons and estuaries. • They typically overlap with such rural activities as agricul- ture, animal husbandry, and aquaculture. • They are highly labor intensive and use a minimum of mechanical power. • While they may include some motorized boats, they gen- erally exclude mechanized gear. • They retain primitive technology for handling and pro- cessing (few of them use ice or cold-storage facilities) with the result that harvesting losses are significant. • They harvest stocks with a small biomass, compared to deep-sea pelagic fish stocks, which contain a large variety of species suitable for domestic consumption. • They supply most of the cured fish and fish intended for direct human consumption. Although small-scale fisheries can also be organized for ex- ports (as has been done in Senegal), particularly when harvest- ing shrimp, mussels, and other fish of high value, its competi- tive advantage lies in producing for the local market, harvesting stocks located in coastal areas. But, because the millions of artisanal fishermen are scattered throughout rural and coastal areas, a decentralized form of development is needed if the role of this sector is to be enhanced. In the warm waters of many developing countries, the conti- nental shelves are shallow and highly productive. With some upgrading of technology (motorizing the boats, for instance) and by improving the quality of shore facilities and marketing procedures, artisanal fisheries have an advantage over large- 30 Table 5 Relative Importance of Small-scale Fisheries (SSF) Supply from SSF Production from relative to Country SSF relative to domestic Year total production consumption (%) (%) Burundi 58 58 1975 Cape Verde 75 n.a. 1976 Ghana 73 n.a. 1976 Nigeria 99 100 1970 Senegal 79 97 1975 Sierra Leone 93 n.a. 1976 Tanzania 100 100 1975 The Gambia 79 n.a. 1976 Togo 83 n.a. 1976 Bangladesh 95 n.a. 1975 Burma 83 100 1972 India 80 n.a. 1976 Philippines 55 56 1975 Sri Lanka 100 100 1976 Thailand 30 55 1970 Brazil 50 53 1976 Chile n.a. 45 1978 Guyana 100 100 1970 Jamaica n.a. 80 1978 Mexico n.a. 46 1978 Trinidad and Tobago 100 100 1971 Uruguay 31 63 1974 Venezuela n.a. 70 1978 Turkey 50 n.a. 1977 Yemen Arab Republic 95 100 1974 Yemen, PDR 90 100 1975 Note: n.a. = not available. Sources: FAQ, Fishery Country Profile. FAQ, Investment Center Preparation Reports. FAQ, Development of SSF in Southwest Asia , June 1977. SELA, Aquarius. Economic System for Latin America, 1978. scale fisheries in exploiting the underwater resources. They also have a substantial competitive advantage in processing for domestic markets (particularly in rural areas) because far less energy is used in drying, smoking, and salting activities; the cost per unit of protein, therefore, is considerably smaller. Large-scale and small-scale fisheries can complement each other in several respects: (a) as the former are developed, both . can share in the expanded local and foreign markets ; (b) both 31 categories of fisheries create employment-one in the urban centers and the other in rural areas; (c) although large-scale fisheries require large arid fairly sophisticated shore facilities, these can be used by artisanal fishern:ien, too; (d) while large- scale fisheries harvest the deep-sea stocks further away, small- scale fisheries are devoted solely to the exploitation of re- sdUrces located near the shore; and (e) as boats become mechanized and the size of the vessels increases, they can be absorbed into the industrial fishing complex. The development of small-scale fisheries, as noted earlier, entails fewer constraints and presents greater potential. The reasons are several: • The stocks fished by smaller boats are located in coastal areas and are less migratory then those fished by deep-sea vessels . Since small boats, individually, do not substan- tially deplete the stocks, there is potential, in most places, for expanding the size of the fleet. Nevertheless, sector planning must consider the collective effect of the fieet on coastal stocks. • The increasing costs of energy affect motorized vessels and processing equipment, though to a lesser degree than those for large-scale fishing. Studies have shown that for each calorie of food output, coastal fishing uses only one- fifth the fuel that deep-sea fishing requires. • Providing and servicing the vessels and equipment are more likely to be within the ability of local suppliers, though some modification of production, or training of personnel, might be necessary. As a result, the develop- ment of small-scale fisheries is less likely to drain foreign- exchange reserves and is more apt to create jobs in local support industries than large-scale fisheries. • The training required to adopt new technology to im- prove efficiency in small-scale fishing is both less costly and less intensive than for large-scale fishing. As with most large-scale operations, planning for small-scale development must consider those constraints that arise from the existing marketing infrastructure. As mentioned previ- ously, improving the capacity and quality of fish processing is critical to the attainment of the full benefit from increased catches of fish. Marketing and processing facilities are particu- larly crucial in areas where production exceeds local demand but where more distant markets offer good prices for fresh, frozen, or preserved fish of good quality. 32 When development is not planned, conflicts are common; it is, typically, the small fishermen who suffer from them. Dis- putes arise, for example, when both small-scale and large-scale fisheries compete in the same fishing grounds (as has occurred in Brazil, Malaysia, the Philippines, and Thailand) or for the same domestic market (as in Panama and the Philippines). In Malaysia, the contest over fishing grounds was so violent that several fishermen were killed. The first type of conflict usually results in reduced catch and the second in depressed prices- for the artisanal fishermen. A reduction in catch-where fishing grounds are harvested by small and large operators alike-results from two major factors: the gear that is employed and the intensity of the fishing effort. For example, several types of mini-trawlers, used mainly for harvesting shrimp, also capture as a bycatch the juvenile fish that breed on shrimp grounds and that often represent the only source of income for nearby small-scale fisheries. The amount of fish caught and discarded by these trawlers can amount to 80 percent of their total catch. Worse still, it is believed that these stocks cannot be replenished. This and other types of conflict can be minimized only by appropriate planning and regulation of fishing activities. Where development plans provide for an orderly progression from subsistence to commercial to industrial modes of produc- tion, conflicts can usually be minimized. One strategy would be for authorities to permit small-scale fisheries to expand, rather than to introduce the other where it does not yet exist. Some- times, however, the effects of well-intended strategems can be limited: governments might provide, for instance, wholesale marketing facilities to be shared by both small-scale and large- scale operators; while this measure may appear to be equitable in principle, in practice, the larger enterprises will be able to set the price of fish and, consequently, disputes may surface. Regardless of the exact measures chosen to decrease potential struggles, authorities will need to consider the issue of compe- tition carefully. Aquaculture At present, there are several million fish farmers, most of whom live in South Asia and Southeast Asia. Each usually manages a small pond that is less than one hectare in size. Where adequate markets exist, the development of aquacul- ture can contribute significantly to consumption, employment, and income. 33 In those countries where aquaculture is not established, it is generally because (a) there is no tradition of eating fish and, consequently, demand for fish is low; (b) fish harvested in coastal waters, or rivers, adequately supply the existing mar- ket; or (c) there is a strong focus on agriculture and authorities have decided to use public land (that might have been suitable for fish farming) for further development of agriculture. Credit is generally easier to obtain for agricultural produc- tion. It is only recently that the World Bank began to increase the number of loans made to finance aquaculture projects (in Egypt, India, Panama, and the Philippines, for instance). In some areas, the expansion of aquaculture has displaced the growing of rice, particularly in areas where marketing facilities are adequate. Some rice farmers in Indonesia have shifted to aquaculture largely because roads existed that allowed fish to be transported to urban centers. The government, in turn, responded by building marketing facilities and providing credit through local banks. As a result, fish farming became an important element of the rural economy. While there are literally millions of hectares of public land that could be leased for aquaculture, governments have been reluctant, until now, to become involved. This is largely be- cause of (a) a lack of awareness of the potential value of the asset; (b) an insufficient number of trained people to manage the leasing process; (c) the cumbersome nature of providing access to the land/water; and (d) the absence of guidelines for setting the price of the lease (which must take into account the amount of work involved in rehabilitating the body of water to make it productive). However, activities associated with aquaculture can maximize the natural and human resources in the region. The rural landless can be provided access to productive resources and afforded the means to increase their incomes. Aquacul- ture can also be integrated with other rural activities, such as, for example, livestock production or rice cultivation. A rela- tively new approach has been to farm fish in mangrove areas (shallow waters); in Northeast Brazil, for instance, certain species of crabs have been grown in mangroves. for several years. Elsewhere, this approach is just now being developed on a commercial scale. Various natural resources exist such as wastelands and flood-control areas, now idle, that could be utilized for aquaculture and, at the same time, could be used to enhance other development activities. For example, fish ponds can be 34 used simultaneously to produce aquatic vegetables and flowers and as a means of purifying sewage water. In fact , mixed cropping can substantially increase rice yields, since fish excreta fertilize the paddies and fish eat weeds. Embankments of fish ponds can be utilized for arboriculture. Ponds can be used for watering livestock and raising ducks, and once the fish are mature, the water can be released for irrigation purposes. Where the water that is suitable for aquaculture is privately owned , it is ieased by landlords to tenants. Where publicly owned, governments may, through their state farms, choose to lease to private individuals or collectives, or retain it as com- mon property .. Where the land and water are publicly owned, conflicts tend to arise when various interests compete for the use of the resources. For example, there may be competition between farmers and fishermen for access rights and conflicts between them if pesticides or fertilizers contaminate ponds and lakes. Clashes with tourism interests surface over rights to beach areas that are also used by artisanal fishermen for clam, mus- sel, and oyster beds; in most cases, the fishermen are displaced. In Panama, the issue of access was successfully resolved when the government turned the management of bodies of water over to local sch_ools. The government goal has been to provide fish to families in the area. The fish are not sold, and access by villagers to the ponds is based on the amount oflabor they contribute. The ponds have also been used to train stu- dents in fish-farming techniques. The scheme has worked so well that a surplus of fish has been produced which has been distributed freely to feed school children. Teachers have noted that students are more alert and active and many believe that the change is due to an increased intake of protein. If the land or water is leased to private individuals or firms , the price and length of the contract frequently are at issue. Conflicts occasionally surface because local authorities tend to favor shorter leases, while fishermen, who require longer periods to build and harvest stocks, favor longer ones. The quality of the water also affects the number of harvests per year, and it is often difficult for local authorities to price the resource fairly. Before any major investment in fish farming is undertaken, issues ofland tenure and water rights·must be resolved. Where the land or water is publicly owned, or where water must be diverted from rivers and streams, potential conflicts must be 35 resolved; or else they will create an unstable and risky envi- ronment that could undermine the viability of the investment. The constraints stemming from underdevelopment of market- ing or from a shortage of skills-constraints _ t hat are similar to those confronting the small-scale fisheries-must also be dealt with. These problems are discussed in Chapter 4. - On balance, however, the advantages of aquacuiture-the relatively low consumption of fuel, the lack of dependence on a fixed resource base, and the. potential for integration with agriculture-'-are substantial. The prospects for expanding aquaculture activities to the point that commerciai and export markets can be supplied have been enhanced by recent im- provemeri.ts in management and feeding technology and by the domestication of fast-growing species of fish and shrimp. Most of these technologies are at a stage where they can be transferred easily to other c6imtries after adaptive research is undertaken that takes into ·account factors such as climatic conditions, water quality, and management. For these reasons, the development of aquaculture warrants serious considera- tion in both low-income and middle-income countries. Economic Contribution of Fisheries While it is generally difficult to determine the precise value- added of fishing activities (little data exist on the subject), experience in several developed as well as developing coun- tries indicates that growth in the fishery sector stimulates de- velopment and, thus, employment in related industries which contribute significantly to the total value-added. These indus- tries include transport, shipbuilding, repair and maintenance, processing, ice making, cold storage and freezing activities, and animal-feed production and packaging. Thus, while the fishery industry, generally, constitutes only a small portion of total economic activity, in several countries where it is more developed (such as Indonesia, Malaysia, the. Philippines, Senegal, and Thailand) it accounts for at least 5 percent of GNP (see Annex 5). Processing and Marketing: Critical Functions Handling and Processing. Because fish is a highly perishable commodity, it is estimated that up to 10 million metric tons are lost a year due to improper handling, processing, and mar- keting. Of this, 5 million tons are estimated to be lost as 36 bycatch, 1 3 million tons due to insect infestation, and the re- a mainder as result of other spoilage. These losses equal nearly 20 percent of the world's catch allocated for direct human consumption. In fact, the potential for salvaging the 5 million metric tons of fish lost as bycatch (particularly that associated with shrimp trawling) is great-if fishermen choose to diversify their prod- ucts. In saving this part of the harvest, the energy expended in, say, trawling, would be utilized more efficiently. Other losses caused by improper handling, processing, and marketing are difficult to define and quantify. When the qual- ity (texture and freshness) is reduced, the product can usually be sold to those who could not afford the fish otherwise. Actual irrevocable losses, therefore, may be less than the 10 million tons. Marketing. In general, fishermen are rarely ever, and their families -only occasionally, involved in marketing activities. If the family gets involved in marketing, it is usually because it lives fairly close to an urban center and because the marketing infrastructure (roads, waterways, vehicles, and so forth) needed to transport the fish to adjacent markets exists. These elements are available, for example, within a 50-mile to 100- mile radius of Manila; here fishermen's wives frequently do the marketing; as a result, such families have higher incomes than those that only harvest the catch. Most often, however, fishing villages are isolated, and the marketing is performed by a moneylender who travels from village to village, or to nearby cities, with the catch he collects from the individual fishermen. Because the total catch of most fishermen is small and the cost of marketing is high, there have been, until now, few options for the individual fisherman other than the one de- scribed in the preceding paragraph. This form of marketing is, however, open to abuse since there are no controls. For exam- ple, if a moneylender has provided credit to a family for food or medical care during a slack season, he can secure the fisherman's catch at whatever price he sets. When there are several middlemen competing in the same locale, however, abuse is less likely. 'Bycatch refers to the fish caught in the nets used to harvest other species and which are subsequently thrown back into the sea, either damaged or dead . 37 If significant investment is made to capture fish, and pro- duction increases, current marketing practices will have to be altered. Several alternatives are possible; these include allow- ing private entrepreneurs (the middlemen or fishermen's wives) to do the marketing, or forming marketing coopera- tives. Because of the nature of-the industry, parastatals have proved to be relatively inefficient: fish tend to be caught in the middle of the night while parastatal staff are at sleep, so the produce often spoils before it can be collected. However, gov- ernment agencies (like the Philippines Marketing Board) are needed to perform regulatory functions such as controlling quality, preventing value-added from concentrating in the hands of those outside fishing activities, and providing sanitary services (for example, water supply and shelter) that are indis- pensable for selling fish. When cooperatives are organized properly, they can beef- fective in increasing the incomes of fishing families. Successful cooperatives are usually located close to cities, have fairly siza- ble membership (for economies of scale), and their managers are well trained to handle a diverse set of tasks. Before any development in the fishery sector can be ex- pected, marketing arrangements must be improved substan- tially. Without improvement, serious problems are almost cer- tain to arise and the return to investments in the capture of fish will be minimal. Similarly, investment in research, exten- sion, training, and organization-all related to processing and marketing-is essential if large postharvest losses that could result from a rapid increase in the production of a highly perishable product are to be reduced. Chapter 4: Development Objectives, C0nstrairtts, and Options Development Objectives For those countries with access to fishery resources, the beµefits to be gained from developing fisheries are numerous. An expanded fishing industry can often increase incomes and employment, improve the diet of many people by increasing domestic protein supplies, generate forrign-exchange earn- ings, conserve natural resources, and promote a more equita- ble distribution of benefits by providing low-income groups with the JTieans to become productive. Income levels ef fishing households. A key objective in the de- velopment of fisheries is to raise incomes in the small-scale, artisanal sector. Although fishing families tend to work ardu- ously qnd under cqnditions of great risk, their incomes are typically below those of other groups in rural areas. While this is not true for all, it is certainly the case for the large majority of families involved in small-scale fishing . In Malaysia, for exam- ple, where per capita income ($1,620 in 1980) is the highest of all developing rountries in Southeast Asia, about 73 percent of fishermen households live beneath the official poverty line. Several factors account for such low incomes. First, as fishing activities expand, free entry into the sector tends to exhaust the resource with inevitable consequences. Second, the unique skills the fisherman develops are not readily transferred to other sectors during slack seasons, or when production drops sharply. And the fisherman's attitude toward his work in which he views it as a way of life poses an obstacle to his shifting to sectors unrelated to the sea. Third, the limited extent of capital expansion ensures a low rate of growth in productivity: small- scale fishermen are locked into low-level subsistence in a way that is similar to the fate of small-scale farmers deprived of technological change. Finally, because the major capital equjpment-----;the boat-cannot be divided or expanded, it cannot, therefore, provide employment for additional family members; this limiting factor becomes a problem because the average size of a fishing family tends to be larger than other rural families (and these, in turn, are usually larger than urban families). In Indonesia, for example, surveys have found that fishing families have one more member than other families. 38 39 Of critical importance, also, is the fact that incomes are directly related to ownership of the means of production (boats and gear) and to the degree to which the family participates in, and controls the proceeds from, marketing and processing. IricolT!eS earned by boat owners are generally almost twice that of boatless fishermen; and in the majority of instances, fisher- men neither own boats nor become involved in ancillary ac- tivities. Distribution of the catch varies from place to place, but regardless of the unique local arrangements, long-standing patterns are accepted as the norm and are difficult to change. Usually, however, distribution is related to boat and gear own- ership and to the organization of marketing and processing. The total catch is divided in parts, with the boat owner receiv- ing a large percentage, perhaps one-half of the catch, 1 and crew members receiving equal shares of the remaining supply. In some cases, part of the catch is given for religious or cultural reasons to villagers who are not directly involved in fishing. Contribution to nutrition. Expansion of domestic supplies of fish-freshwater as well as saltwater fish-will make an im- . portant contribution to nutrition, in both urban and rural areas. Fish, an important source of animal protein, may reach low-income consumers who normally find it difficult to satisfy their animal protein needs. With effective marketing and, in some areas, by making use of existing modes of transport, the nutritional effects could be considerable. In several countries, the cost of one gram of protein of several species of fish is much lower than that of meat, which makes fish relatively more affordable to low-income groups. Generation of foreign exchange. Although many small-scale fishermen operate at a subsistence level, a significant number also produce for the local market and a few, in recent years, have become export oriented (for example, those living in Burma, Chile, India, Indonesia, and Thailand). In fact, where methods art largely labor intensive and, therefore, unintere,stc ing to large-scale fisheries, part of the catch of species of fish and mollusks of high value is earmarked for the highly profit- able foreign market. Conseryation of the resource. If managed properly, fish stocks are renewable; unfortunately, proper management is no easy 1 Calculated as roughly one-third for boat depreciation, one-third for the engine, and one-third for the owner himself. 40 task. To begin with, the various species have "critical zones" - that is, they have limits up to which they may be safely - harvested-which, if disregarded, can result in their exhaus- tion. Thus, it is essential to establish precisely what that limit is. While this is never simple, it is particularly complicated when there are multiple species in the same stock. 1 The critical zone varies from species to species: For example, shrimp may be caught in large quantities and still reproduce quickly; whales will not. The critical zone may also change when the amount of one species in a stock is reduced by overfishing since species often exist interdependently. As a result of overfishing, the total catch in the period from 1972 to 1978 declined in the North Sea (by 4.6 percent a year) and in the South Pacific (by 4.9 percent). Specifically, in the North Sea, production of groundfish (flounder, sole, and halibut) dropped by 4.1 percent a year, and cod (hake and haddock) declined by 6.2 percent. On the other hand, the catch of species like lobster and tuna increased (by 2.8 percent and 5.6 percent, respectively) because they have relatively large populations and were not overfished. With reduced harvests, income drops and unemployment rises. For example, in Central Java, Indonesia, where 1.8 mil- lion households earn their livelihood from fisheries, stocks have been depleted and, in some cases, families have been forced to migrate to the cities. In many instances, however, fishermen respond to the reduction of catch and size (since only the juveniles remain) by harvesting other species. Such a step can raise problems, too, because the vessels and equip- ment used for fishing one variety may be inappropriate for another. Development Constraints Mobility of stocks. Unlike other industries, where the factors of production (land, equipment, and other inputs) are fixed, fish· are mobile, with many species migrating thousands of miles across national boundaries. If fishermen or fleets in the- waters of one country overfish a stock before they migrate into the waters of another nation, the catch is reduced for the 'Stock refers to a species, subspecies, geographical group, or other category of fish that can be managed as a unit. 41 fishermen in the next coastal state. Aggressive fishing practices can also alter the reproductive cycles of species. Agreements, therefore, must be reached between nations about the quantity of the catch to be allowed, either to domestic or foreign inter- ests, or common fishing zones must be established, as was agreed upon by Uruguay and Argentina. Availability of credit. Because artisanal fishermen have gen- erally had little access to the formal credit system, they have been unable to obtain the capital needed to improve their boats and gear, not only to expand production but merely to con- tinue current operations. Because most fishermen have no collateral (land, boat, or equipment), banks are unwilling to provide credit. Moreover, even those that have boats are often unsuccessful in obtainingloans because the banks consider the boat-which is usually the fisherman's only collateral-a risky investment. Unlike land, boats can be lost easily. In most cases, fishing families have scant savings to make initial payments that are required by credit institutions. They find debt- repayment schedules difficult to meet: the schedules usually do not correspond to the time when they can expect to earn income from the catch. Finally, credit has rarely been provided to those involved in any of the support activities, such as mar- keting, processing, and warehousing. Fishermen have turned to local moneylenders who, besides providing them with small loans for their fishing activities, give credit for household needs. Because of their familiarity with the region, moneylenders often also take up marketing, which the small-scale individual fisherman is unable to do profitably. If a decision is made to invest in fisheries, measures must be taken to ensure that fishermen have access to credit. Providing access to credit does not necessarily eliminate the local moneylender from the process, because credit institutions still will be unable to lend to fishermen in remote villages. If the moneylender feels he may be eliminated, resistance could be generated which could, in turn, threaten the existence of the program. It is essential, therefore, that means be found to expand institutional lines of credit without making the moneylender redundant. Institutional constraints. In addition to the problems associ- ated with marketing, credit, and so forth, there are elements in the economy, or in governmental institutions, that could limit the development of fisheries. For example, there may be vested interests, such as firms that have enjoyed long-standing 42 control over the sector, that may be threatened by the de- velopment of new fishery projects. In such a case, severe con- flicts could materialize that might restrict access to the fish resource, or to critical inputs. Middlemen who currently con~ trol the flow of credit might attempt to impede measures to rationalize the system if they sense competition. Regulations must be drawn up and institutions formed that can mediate disputes; they must be armed with sufficient authority to en- force their rulings. Problems also could surface due to inadequacies in the in- stitutional framework. For example, serious obstacles could evolve surrounding the flow of information and services to fishermen in isolated areas. Until now, extension services have focused almost entirely on agriculture. As a result, no channel exists for transmitting to fishermen information about the availability of financing, water quality, government regu- lations, new technology, and the like. Such bottlenecks must be eliminated if the various parts of the system are to operate smoothly. Development Options and Strategy Faced with such constraints, the options availabie for the development of fisheries include: • Expanding inshore fisheries by increasing the number and size of boats as allowed by the natural endowment of a country's resources; • Developing aquaculture as a key activity in the rur;il econ- omy by integrating it with agricultural or other activities; • Providing infrastructure facilities, including ports and • landing piers, fish hatcheries, ice plants, cold-storage plants, transport systems, marketing centers, and distri- bution networks; • Improving marketing chains; • Upgrading extension and research services and training programs; • Strengthening the administration of fisheries; • Strengthening the institutions that provide credit, estab- lish land and water rights, and regulate fishing rights; • Establishing fishing community organizations such as co- operatives. Past experience with development efforts in fisheries has underscored the complementarity of many of these actions. Investments in research, extension, training, and organization 43 related to processing and marketing are essential to the reduc- tion of large postharvest losses that would almost certainly result from r.apid increases in the production of an extremely perishable product. While the benefits from fishery development can be signific cant, the difficulties in implementing an appropriate strategy are substantial. Because the structure of the fishing industry in most developing countries is predominantly small in scale 1 because !flOre equitable distribution of benefits is often a high priority, ·and because financial resources are scarce, most low- income and middle-income countries will probably focus their attention on artisanal fisheries and aquaculture. The choice between, or degree of emphasis on, these two will depend largely on the natural resources at a country's disposal. Where stocks in rivers , lakes, or coastal waters are abundant, capture fisheries will obviously appear as the more attractive alterna- tive, though there may be potential for some aquaculture de- velopment, as well. Where overfishing has threatened to de- plete the resource base, the second option will seem more reasonable. There are, of course, problems inherent in the nature of the industry that relate to conservation of the species and the migra~ion of stocks. Beyond these there are other difficulties attached to (a) organizing an industry that involves people in remote, scattered villages; (b) rationalizing the credit system which, until now, has been unavailable to small-scale fisher- me}?; (c) r-esolving the conflicts attached to land tenure (in aquaculture) ; (d) enforcing regulations; and (e) developing processi~g and marketing systems and other ancillary services without which cj.ny increased production will be sacrificed. Finally, the design of fii,hery development should include a framework for formulating laws and regulations that will re- solv~ disputes over rights of access to waters and on land tenure and, thus, avoid the displacement of artisanal fisher- men. Enforcing and administering such policies, no doubt, will require sustained expenditures; without them, the overall in- vestment could be jeopardized. Designing the Investment Program A number of factors must be considered when designing programs and projects for fisheries. The quality of fish stocks and of water, the location and extent of demand, the pattern of production, the level of technology, and the distribution of 44 population must be examined as they will affect the nature of the programs. Equally critical is the matter of timing. Projects that have sought to alter existing conditions far too rapidly, or not quickly enough, or have sought to ignore them entirely, have been delayed or have failed completely. Moreover, because a whole system of complex elements must be introduced- training fishermen in the use of new equipment, establishing a marketing network, building processing facilities, organizing cooperatives, rationalizing credit, and the like-more time than is usually allotted by development agencies must be provided for the projects to be implemented and for results to begin to appear. The location of markets and the level of demand, obviously, will determine the type and location of investments in support industries. Where fishing villages are near, or have easy access to, urban areas, marketing infrastructure will enable fisher- men to sell fresh catch at higher prices. Where villages are far from consumption centers, or when domestic demand for fresh fish is insufficient to absorb supply, investment in processing facilities can ensure that the catch will reach the markets in good condition. - It is also important to determine the level of prevailing technology in fisheries and support industries that supply the inputs. After all, the degree of education and experience of fishermen will affect their willingness to adopt innovative technologies and their ability to assimilate changes. It also will influence the cost of establishing or improving extension ser- vices and training' programs, for the wider the gap between current practice and the change envisioned in the project, the greater the cost of implementing and maintaining the innova- tion. If engines are introduced, for example, mechanics are needed to repair them. On the other hand, changes that are less profound and that are perceived by fishermen to be advan- tageous will be more readily adopted. The local economy is also more likely to benefit if indigenous boat builders and other suppliers of inputs are able to provide service and repairs when needed. Thus, it may be more practical to improve the productivity of existing technology (perhaps, by supplying new tools to local shipbuilders) than to impose more mechanized, technologi- cally advanced equipment. Experience also indicates that proj- ects attuned to prevailing local conditions cost less and are 45 easier to replicate than those designed around packages of alien technological innovations. Along these lines, it is impor- tant to recognize that while new technology may appear, on the surface, to be positive, it may, in fact, not benefit the fishermen at all. Unless fisherfolk are trained to make repairs, the intro- duction of motorized boats will only result in the hiring of outsiders to perform a function that formerly had been taken care of by themselves. There are other factors that must be considered at the de- sign stage. Improving the usefulness of water and swamp lands by stocking them with fish not only builds up a resource, it also employs rural people and improves the nutrition of low- income groups at low cost. Planning cannot be done in isolation; environmental con- cerns require a cross-sectoral approach. For example, the qual- ity of water may be affected by irrigation infrastructure or pollution from industries. As a result, the spawning of fish and biological growth may be affected, which , in turn, may de- crease productivity and incomes of fishermen. Flood-control projects, therefore, should include measures (like fish ladders, for example) that are needed to minimize_ the negative effects on fish production. Similarly, where industries or agricultural activities are located near water, attention should be paid to the danger of pollution and to measures that can be taken to minimize its effect. Every fishery project should_contain components that will create or strengthen those institutions that provide services that result in private costs and risks being reduced to a level that will attract and sustain private investment. Such institu- tions include those that provide credit, regulate interactions among individuals, coordinate private and public activities, and assist in organizing cooperatives. To manage fisheries, authorities will need to become in- volved in regulatory and control functions to encourage eco- nomic activity, protect the country's natural resources, and develop the sector in a manner and at a rate that is optimal. To control the exploitation of their resources, governments can make use of quotas, licensing, and seasonal closures; establish restricted fishing zones; and regulate fishing gear. Because most of these measures involve restricting individual action and, therefore, profit, resistance from particular interest groups will need to be overcome and conflicts among compet- ing individuals and groups resolved. 46 By far the most difficult conflict to resolve is that which arises between the domestic fishery sector and foreign fleets. To restrict effectively access to coastal waters, governments must invest in expensive surveillance equipment; even then, en- forcement is difficult. One approach used by developing coun- tries is to seek out joint ventures; these may include intergov- ernmental agreements, reciprocal fishing rights, and licensing arrangements with foreign fishing interests. In such cases, the developing countries hope to benefit from the transfer of technology and management expertise, from additions to capi- tal stock, and from training programs. At the sa_ m e time, they anticipate that the ventures will create jobs, increase produc- tion and incomes, and generate foreign exchange. In fact, such arrangements are not always advantageous. Benefits have often failed to materialize, while fish resources, in soine cases, have been seriously depleted. Plans for interna- tional cooperation, therefore, should be critically examined to assess not only the probability that agreements will be horiored, but also that the technology, training, and capital promised are in line with the development strategy. Just as important, such transfers may have high hidden costs because resources may have to be diverted from domestic fisheries to mainta.in a higher level of technology than was originally sought in the development plan , Chapter 5: The Role of the World Bank Between fiscal year 1964 and fiscal year 1981 , the World Bank provided $259 million for twenty-seven fishery projects; the total cost of these projects amounted to nearly $4 70 million (see Table 6) . Although Bank-supported fishery projects have been quite diverse, they can be classified into four broad categories: boat building, construction and improvement of ports, the development of small-scale fisheries, and the de- velopment of aquaculture. Within these areas, funds have been allotted in these proportions: boat building (32 percent), ports (27 percent), technical assistance (13 percent), fish ponds (15 percent), onshore infrastructure (5 percent), processing and marketing (4 percent), and the remainder for working capital, project preparation, repairs, and ma1ntenance (see Table 7) . Among the various regions , Europe, Middle East, and North Africa received the largest share (33 percent), fol- lowed by South Asia (25 percent), East Asia and the Pacific (23 percent), Eastern Africa (10 percent), Latin America and the Caribbean (7 percent), and Western Africa (0.5 percent). Until quite recently, the major objective of the Bank's lend- ing for fisheries had been to increase production for export and to generate foreign exchange; nearly 60 percent of the loans made were for the development of large-scale fisheries, including large vessels and the facilities to service them. Pro- cessing and marketing, on the other hand, represented only a small share of total lending. The Bank's first fishery project, in 1964, provided $7.8 million to Taiwan, China 1 for boat build- ing; it was followed three years later by a $14.4 million loan for a second phase of the project. The Bank's loans for the con- struction and renovation of port facilities in Iceland, India, and Tunisia were designed to improve the handling and transporting of the catch produced by commercial and, to some extent, small-scale operations. Funds for facilities such as cold-storage plants, freezing centers, and ice plants were also included. Where assistance was provided for small-scale coastal fisheries, it was used to rehabilitate landing sites, acquire 1 At the time, the authorities on T aiwan represented China in the Bank. 47 48 Table 6 World Bank Lending for Fishery Projects, Fiscal 1964-81 (in million dollars) Fiscal year Total Total of Board Bank IDA Bank project approval Country Project name loan credit lending cost 1964 China• Fishing vessel I 7.8 0 7.8 9.4 1967 China• Fishing vessel 11 14.4 0 14.4 17.7 1969 Ecuador Fisheries 5.3 0 5.3 6.6 1970 Ghana Fisheries I 0 1.3 1.3 2.3 1971 Indonesia Fisheries 0 3.5 3.5 4.3 1972 Tunisia Fisheries 0 2.0 2.0 3.1 Panama Fisheries I 3.4 0 3.4 5.4 1973 Yemen, PDR Fisheries development I 0 3.5 3.5 4.2 Philippines Fisheries 11.6 0 11.6 18.5 1974 Iceland Fishing harbor rehabilitation 7.0 0 7.0 11.3 Indonesia Ag ri cultural fisheries II 0 6.5 6.5 12.9 1975 Iran Fisheries I 12.5 0 12.5 18.0 Yemen, PDR Fisheries supplement 0 1.6 1.6 2.0 1976 Burundi Fisheries 0 6.0 6.0 8.6 Philippines Fisheries II 12.0 0 12.0 23.5 1977 Tanzania Fisheries I 0 9.0 9.0 12.4 Panama Fisheries II 7.5 0 7.5 12.6 India Fisheries 14.0 4.0 18.0 38.0 1978 India Marine fisheries II 0 17.5 17.5 36.5 1979 Tunisia Fisheries II 28.5 0 28.5 67.5 Yemen, PDR Fisheries 11 0 10.0 10.0 32.0 Bangladesh Oxbow Lake fisheries 0 6.0 6.0 7.5 Maldives Fisheries 0 - 3.2 3.2 3.9 1980 Kenya Fisheries I 0 10.0 10.0 14.9 Yemen, Arab Rep. Artisanal fisheries 0 17.0 17.0 30.3 India Fisheries IV, inland 0 20.0 20.0 40.8 1981 Egypt Fish farming development 0 14.0 14.0 26.3 Total 124.0 135.1 259.1 470.5 Note: This table lists only those projects devoted exclusively to fisheries. It does not include 26 agricultural projects with fisheries components that were approved during the same period. • At the time, the authorities on Taiwan represented China in the Bank. motorized boats, provide extension services and technical as- sistance, and carry out feasibility studies (such as in Tunisia); 49 and to renovate canoes, upgrade gear, and improve marketing and processing (as in Tanzania and Burundi). • Some small amounts of money were loaned for aquaculture activities, but these were included mainly as components of credit projects and were aimed at improving productivity to meet the increased local demand for fish. Components included the rehabilitation of existing fish ponds and the construction of new ones, the provision of hatcheries, the construction of access roads, and the development of local organizations to manage these activities. In the Philippines, for example, Bank-assisted rural credit projects contained fishery components ($4· million in 1974) to finance boats, fish ponds, and fish pens and $14.6 million to train fish-pond managers and upgrade technical institutes for training in fisheries. To date, however, the lending program has largely reflected an ad hoc approach : No real assessment has been made of the potential contribution of fisheries to economic development. Past Problems with Bank-supported Projects A review of the Bank's experience 1n this sector suggests that fishery projects have encountered significant problems that have resulted from an inadequate assessment of the social, institutional, and economic constraints on fisheries in the de- veloping countries. Factors that were initially overlooked (such as a lack of support industries, for example) eventually caused delays in the construction of large vessels. These delays, along with a general lack of assimilated technical knowledge, a short- age of trained personnel, limited capacity and efficiency of landing facilities, and poor information on the location of fish stocks were subsequently responsible for disappointing pro- duction levels achieved using the large, expensive vessels con- structed under these projects. Because of an inadequate assessment of such constraints in both the large-scale and small-scale sectors, the profitability of the investment for the countries and individual fishermen was overestimated. Delays led to cost overruns. Operational and maintenance costs (especially for fuel) were also underesti- mated, while projections on the quantity and value of produc- tion overlooked the problems associated with inefficient oper- ations. Although most small-scale fishery projects assisted by the Bank are not yet completed , a similar pattern of problems is emerging. While it is true that somewhat less technical exper- (.J1 Table 7 0 World Bank Lending for Fisheries, by Project Components, Fiscal 1948-81 (in thousand dollars) Processing, marketing, other Other Incremental . Total equipment; infra- working Technical project Country Project Vessels• Ports• Facilities• ana vehicles• structure• Ponds' capital assistance" cost' China1 Fishing vessels I 7,708 725 9,400 Fishing vessels II 14,586 1,416 17,702 Ecuador Fisheries 5,274 192 1,160 6,626 Ghana Fisheries I 1,633 88 484 2,297 Indonesia Fisheries I 2,460 540 130 322 180 300 4,308. Tunisia Fisheries I .2,564 279 3,126 Panama Fisheries I • 3,440 ·- 440 670 5,350 Yemen, PDR Fisheries development I 571 ,1,323 165 1,336 • 4,185 Philippines Fisheries I 6,630 100 620 6,960 820 800 18,500 Iceland Fishing harbor rehabilitation 8,450 630 11,290 Indonesia Agricultural fisheries II 2,713 160 100 2,066 3,202 891 680 12,895 Iran Fisheries I 10,750 480 600 2,394 18,000 Yemen, PDR Fisheries supplement 1,500 1,500 Burundi Fisheries development 1,721 757 3,081 8,619 Philippines Fisheries II 5,500 300 1,100 _ 10,800 23,500 Tanzania Fisheries I • 3,877 294 385 402 2,857 12,375 Panama Fisheries II 5,380 2,661 349 1,162 12,559 India Fisheries 8,000 11,200 \ - 600 2,600 2,900 38,000 India Marine fisheries II 6,900 13,500 1,200 3,600 1,400 36,500 Tunisia Fisheries II • 14,155 35,868 5,398 67,531 Yemen , PDR Fisheries II 13,340 1,340 4,400 200 3,610 32,000 Bangladesh Oxbow Lake fisheries 600 1,862 1,637 397 788 7,458 Maldives Fisheries 2,960 60 150 10 3,890 Kenya Fisheries I 1,100 3,100 1,600 5,300 14,900 Yemen, Arab Rep . Artisanal fisheries 4,640 9;600 820 1,000 2,640 30,300 • India Fisheries IV, inland 3,600 18,700 6,500 40,800 Egypt Fish farming development 1,300 11,500 3,600 .2,700 26,300 Total 112,562 96,512 380 14,274 18,362 54,748 11,643 47,069 469,909 Percentage of base costk 31 .6 27.1 , 0.1 4.0 5.2 15.4 3.3 13.2 • Includes investments for hulls, engines, small equipment, spare parts, and generators for a wide variety of fishing vessels and some fish carriers, lift nets, sets of gear, and construction , supervision, and interest costs. • Items include costs for construction of new and rehabilitation of existing port facilities, jetties, landing piers, including buildings, port equipment and slipways, tugs and barges where financed, and aids to navigation such as lights, markers, and buoys. ' Workshop equipment and repair facilities. • Principally includes ice making , freezer and cold-storage facilities, processing equip- ment, and infrastructure including buildings, refrigerated vehicles, and equipment. • Other shore facilities as well as roads and water-supply infrastructure. ' Construction of new and rehabilitation of old ponds, including land acquisition, hatchery facilities, engineering, and construction costs. • Incremental capital, where specified. • Naval architects, master fishermen and other fishery specialists to provide technical assistance. Also includes extension, training, project monitoring and evaluation where specified, and some studies. ' Includes contingencies. 1 At the time, the authorities on Taiwan represented China in the Bank. • Baseline costs exclude contingency allowance. 52 tise is required for improving, maintaining, and operating the equipment associated with small-scale fisheries, other prob- lems have surfaced: For example, because there are far more participants, coordinating the various elements becomes a sig- nificant obstacle. At almost every juncture-from providing credit, organizing training for fishermen, facilitating licensing, and arranging for the efficient handling of the catch- numerous individuals and groups, both public and private, must interact. In a developed economy, this interaction tends to occur spontaneously to the mutual benefit of all concerned. But in less-developed settings, additional incentives often are needed to encourage interaction in th_e direction desired. Efforts to develop small-scale fisheries are still relatively recent, and experience needs to be gained by policymakers about the elements that affect performance. Therefore, proj- ects must be monitored and evaluated, both before and after they are completed, to enable sector planners and project managers to utilize the country's resources most efficiently. Experience has shown that projects can serve as instruments to improve weak local institutions by providing funds for the hiring and training oflocal staff; this is especially important as governments place increased emphasis on fishery activities in rural areas where institutions are usually the least developed. Recent Trends and Future Strategy In recent years, in response to the rearrangement of priorities in developing countries, emphasis by the Bank in lending to the sector has shifted to financing inshore coastal fisheries. The aim of such financing is to increase the flow of benefits to the rural population and to raise the standards of living of fishermen's families. By supporting projects for small-scale fisheries, the Bank will be meeting its overall objectives that include: (a) improving the incomes and well-being of large numbers of rural poor by enhancing the productive resources available to them and by increasing their productivity; (b) providing a reliable and adequate supply of nutritious food at prices that people can afford; and (c) increasing the export earnings of developing countries, whenever possible, by expanding the production and processing of commodities for which there are global markets. Loans to this sector will generate both employment and income for some segments of the population that live on the margin of existence. To the extent that greater quantities of fish can be harvested, food supplies can increase and nutri- 53 tion can be improved, and foreign exchange can be earned when small-scale operators harvest fish products of high qual- ity. At present, twenty fishery projects with an estimated Bank funding totaling approximately $540 million are included in the lending program for the period fiscal 1982 to fiscal 1986. While there will be differences among the projects, it is expected that most will focus on increasing the marketable surplus of small-scale operations and aquaculture. The proj- ects are to accomplish this goal by providing assistance and technology to improve the harvesting, handling, processing, storage, transport, and distribution activities and allow for a more efficient organization of the sector. To improve harvest- ing, the projects are likely to supply more efficient boats and engines to enable artisanal fishermen to exploit fish stocks further offshore and to operate more frequently, quickly, and safely. Investments will also flow into marketing and distribution systems (cold storage, refrigeration, transport, and so forth) since these are considered essential to the expansion of small- scale production. Not only will these investments contribute to improving the quality of the product and reducing postharvest losses due to spoilage, they will also provide fishermen with access to more distant markets. Technical assistance will also be provided. In addition to the conventional support for financial assessment and planning, assistance will focus on fishing technology and its transfer; construction of port infrastructure and landing facilities; pro- cessing and marketing arrangements; fishing-sector manage- ment, policies, and regulations; and promotion of conserva- tion and environmental policies. However, in view of the mod- est pool of expertise available in the Bank, collaboration with other agencies, notably with the FAO, will be extremely impor- tant in ensuring that developing countries receive the help they need. 1 At the same time, a number of fishery experts 'With its staff of 400 professionals, FAO's Department of Fisheries has the quantity and quality of expertise to provide developing countries with a wide range of services: for example, in designing programs, conducting preinvest- ment studies and project fe asibility assessments, providing advice on joint ventures, and the like. Through the Cooperative Program established by FAO and the World Bank, FAO has been involved in the preparation of a large proportion of the Bank's fishery projects and is likely to continue in this fashion. 54 currently are being recruited to join the Bank. Further, several consulting firms have expanded their capacity in this area in response to perceived opportunities attached to the adoption ofEEZs. Adequate professional resources are likely, therefore, to be available. The preparation and appraisal of fishery projects may need much longer time because fisheries contain so many complex elements and require so many specialized skills-such as in fishing technology, port facilities, and marketing-in addition to those normally required for financial and economic analysis. The implementation periods also are likely to be longer than with other projects because the changes expected in institu- tions have been found to require longer periods before they materialize. Development, at both the sector and project levels, therefore, should be planned sequentially, so that the social and technical changes that are necessary can be brought about gradually, without causing undue resistance from fishermen. The new strategy will be followed only in those situations where developing nations themselves desire to develop fisheries as part of their development strategy and seek the Bank's assistance in the fisheries sector. It assumes that suffi- cient flexibility exists to include fishery projects and fishery components in the Bank's lending programs for individual countries. The World Bank's lending program for fishery projects will mainly focus on small-scale fisheries. However, developing countries may also be prepared to invest in industrial fisheries. In such a case, in addition to other sources of external funding, the International Finance Corporation (IFC), or the develop- ment finance companies (DFCs) may be expected to be in- volved. While IFC will enter into direct partnership with pri- vate interests, DFCs will provide lines of credit to banks in the various countries. In addition, bilateral aid agencies might become interested in financing and providing technical assis- tance for large-scale fisheries, as well. Sector Management Given the complex social, economic, and institutional nature of fishery development, it is expected that Bank-supported projects will, whenever possible, provide technical assistance to build appropriate administrative, research, and training in- stitutions and develop environmental policy. Again, the Bank does not expect to expand its own expertise in these areas; 55 rather, it will rely on the FAO's Department of Fisheries and other specialized institutions to provide the necessary skills. Expertise is needed by developing countries to plan and coordinate strategies so as to allocate limited resources effi- ciently; this requires technical and management skills that are in scarce supply in most low-income and middle-income coun- tries. The Bank can make an important contribution to build- ing up these capabilities at the government level by providing financial assistance for training and institution building. When developing a natural resource that can be over- exploited, it is essential that countries be able to assess the supply and regulate the exploitation of the resource. The countries, therefore, must have the skills, technology, and funds to (a) determine the location and size of the fish stocks, (b) assess, monitor, and manage the fish stocks, and (c) stock Jakes and various rivers where feasible. They also must have patrol boats and radio equipment to enforce regulations. In addition, the sociocultural characteristics of the rural populations must be carefully considered, particularly of those who live outside the social and economic mainstream, or of those who reside in remote or isolated communities. There is a strong likelihood that there will be resistance from these groups to new technologies, training, and to the organization and regulations planned by sector-management authorities. With an understanding of such .factors, planners can modify innovations to promote greater acceptance: Bank-supported projects will provide for the specialized expertise needed for information gathering and analysis in all these areas, as well as the sophisticated equipment require1 for the management of resources. In the past, the Bank has supported fishery-research pro- grams in a number of countries. In the future , efforts will be expanded to include research on: (a) the resources (land, fish, and water) available to rural people; (b) fish species to assess the possibility of introducing new varieties into lakes, rivers, and reservoirs and to determine the extent to which lagoons; estuaries, brackish water systems, and low-quality land might be utilized; (c) the impact of projects on production and em- ployment at the regional and local levels; (d) ways to adapt new technology to national and local conditions; (e) patterns of consumption of, and demand for, fish; (f) those features of successful projects that can be replicated; and (g) the activities and motivation of people in rural areas. 56 In addition, the Bank will support research that is specifi- cally related to the development of aquaculture; this might include: (a) investigating the species naturally occurring in proposed project locations and their preferred food, with the aim of maximizing the use of existing resources; (b) determin- ing the technical and economic feasibility of combining com- plementary activities (such as aquaculture with livestock or crop production), and (c) studying the physiology of matura~ tion and spawning, the effects of pollution on these activities, and the nutritional characteristics of various types of fish in various processed forms. The Bank also is assisting research by supporting national research institutions in developing countries that are able to respond to the identified concerns, as well as international research centers (such as the International Center for Living Aquatic Resource Management located in the Philippines) and by promoting the creation of an international network that would disseminate experience in fishery management, new technology, and research findings. The Bank also will consider lending for training programs for supervisory and managerial staff and for fishermen. In addition, projects will include funding for training individuals involved in processing and marketing activities. While some formal instruction may be necessary, it is expected that, in a majority of cases, training will occur on the job, or in service. The creation of permanent training institutions ·devoted to upgrading and promoting university-level graduates will gen- erally be avoided. Environmental Considerations Though most developing countries had not previously given ' much thought to environmental considerations, awareness of the ecological consequences of development is growing rapidly. Thus, Bank-assisted activities can help disseminate information to developing member countries on the potential . effects of projects on the environment. Where no adequate natural-_r esource conservation programs or institutions exist, the Bank's activities may be instrumental in promoting them. In conclusion, it should be noted that there is no expectation that all countries with access to fishery resources will wish to promote their development further. However, where re- sources and markets are favorable to such development, and where there is interest in such development, the Bank stands ready to provide assistance. FISHERY-in pictures .. ,) i-.:;!;\, • 1• , '. . .l i ·I .(:.... I!>. Fish being sold in the central market in Burundi. Before any development in O the fisheries sector can be expected, marketing arrangements must be improved substantially to reduce postharvest losses. } • -~.~~.-:;_ _~ • .~ ---:~~ - . --=·-........ , . . .- -· ~-~ J Fresh fish are placed on trays at a fish-smoking center on the outskirts of @ Abidjan, Ivory Coast. The center has developed processes for conserving fish up to forty-five days with the help of the Food and Agriculture Organization of the United Nations. Prawns are graded, frozen, and packaged for export in a fish-processing plant in India. The integrated fisheries project was supported by a loan from the World Bank Group . In all, the Bank has provided developing countries $259 million for twenty-seven fishery projects between 1964 and 198 I. r -· ,,. ·-- . ....- ...... - .,.. ·- -;:;• ~ ... . ' - -~ - ~~-•x~~ fa t ~:.::~ ~ I ~ .~ - ~ - ~ \ 1 ~ •- ~..,_. .. . j',......... . J. - .., - Breeding and raising freshwater trout in Iran. Various natural resources that lie idle- wastelands and flood-control areas, for example- can be utilized for aquaculture as well as for other development activities. . Fishermen unloading their catch from a fishing vessel at the port of Terna, © Ghana. Improving infrastructure facilities, such as ports and landing piers, are essential for expansion of fisheries . Trainees stretching filets of dogfish onto wooden frame for sundrying at a marine fisheries technical school in Senegal. There is a need for upgrading of extension and research services as well as the training of staff to provide better services to small-scale fishermen. © A fisherman repairs his boat in the Yemen Arab Republic. While some small-scale fishermen may use motorized boats, they generally do not own mechanized gear. A crab trap used by artisanal fishermen in Haiti. With some upgrading of Q technology and by improving shore facilities, small-scale fisheries can have an advantage over large-scale ones in exploiting underwater resources. Harvested fish in a trough at an Ismailia fish farm in Egypt. The International Finance Corportion, an affiliate of the World Bank, provided $9.7 million to support the introduction of Chinese fresh water, fish-farming technology at this farm. There is considerable scope for private-sector investment in industrial fisheries in developing countries. €) r:·: '{ ;l' ' ' ~ ··.:....,.. ~~ ~' ~ ,.:/.:- t\ Small-scale fisheries often exist side-by-side with larger-scale, industrial ~ fish eries as the Panamanian boats in this picture indicate. In fact, the two types of fisheries can complement - rather than compete with - each other. A group of fisherm en tending their nets in the Philippines. The organization of cooperatives can be effective, if done properly, in increasing incomes of fishing families. A Sri Lankan woman collects sun-dried fish in Degombo; this form of processing fish is the least expensive. The potential value-added of this village-level activity is high . Annex 1 Glossary 1 Arthropods: Animals having an external skeleton segmented to allow for movement (crustaceans). Biological balance: Stable and constant state in the structure and operation of an ecosystem. Biomass: Amount of animal or vegetable matter of tissue contained in a population of a species in a given unit of area or volume of habitat. Canned fishery products: Fish, shellfish, or other aquatic animals packed in cans, jars, or other containers. Cephalopod: Any of a class of mollusks including squid, cuttlefish, and octopus. Coastal zone: Strip of land of variable width along the shoreline under the direct environmental and economic in- fluences of the adjoining body of water. Conservation and management: Refers to alrthe rules, regu- lations, conditions, methods, and other measures that are useful in rebuilding, restoring, or maintaining a fishery re- source and that are designed to assure that irreversible or long-term adverse effects on fishery resources are avoided. Continental shelf: The seabed and subsoil of the submarine areas adjacent to the coast, to a depth of 200 meters or, beyond that limit, to where the depth of the superjacent waters admits to the exploitation of the national resources of such waters. Cured fishery products: Products preserved by drying, pick- ling, salting, and smoking. Demersal: Refers to fish that live on, or adjacent to, the sea bottom. Ecology: Field of sciences that deals with the relationships between living organisms and their environment. Environment: Sum of the physical, biotic, arid social factors and conditions directly or indirectly affecting the develop- 1 Conseil International de la Langue Franc;ais (adapted by Paul Brace) , Glossary of the Environment (Praeger Special Studies, 1977); American Heritage Dictionary ofthe English Language (Houghton, Mifflin Co., 1969); Alan Gilpin Dictionary on Environmental T erms (Routledge & Kegan Paul, London, 1976); Fishery Conser- vation and Management Act of 1976, Public Law 94-265, 94th Cong., H.R. 200, April 13, 1976, Washington, D.C.; and NOAA, U.S. Department of Com- merce, Report of the National Marine Fisheries Service for the Calendar Year 1978, July 1979. 65 66 ment, life, and activities of organisms and populations, in the short and long terms. Estuary: Place where a river empties into the open sea (river mouth), forming a bay subject to tidal effects, where fresh- water and seawater mix, creating unique ec0logical condi- tions, and where development usually causes substantial pol- lution. Fingerling: Young or small fish. Fish: Includes finfish, mollusks, crustaceans, and all other forms of marine animal and plant life other than marine mammals, birds, and highly migratory species. Fish meal: A high-protein, animal-feed supplement made by cooking, pressing, dryi~g, and grinding fish or shellfish. Fish oil: An oil extracted from body (body oil) or liver (liver oil) of fish and marine mammals; mostly a byproduct of fish-meal production. • Fishery: One or more stocks of fish that can be treated as a unit for purposes of conservation and .management. Fishery resource: Any fishery, any stock cif fish, any species of fish, and any habitat of fish. Fry: Small fish, especially young, recently hatched fish. Gross registered tonnage (GRT): This is the internal cubic capacity of all space in ahd on the vessel. GRT is expressed in tons of 100 cubic feet. . • Hatchery: Place where eggs, especially those of fish or domes- tic fowl, are hatched (i.e., to produce from eggs). High seas: All waters beyond the territorial seas. Highly migratory species: Species that, in the course of their life cycle, spawn and migrate over great distances in the oceans. Industrial fishery products: Items processed from fish, shellfish, or other aquatic plants and animals that are not consumed directly by humans. Krill: Planktortic crustaceans that constitute the principal food of whalebone whales. Maximum sustainable yield (MSY): This is the largest animal catch or yield in terms of weight of fish caught that cart be taken continuously from a stock under existing environmen- tal conditions. Nutrient: Organic or inorganic substance, including protein, fat, carbohydrates, vitamins , and minerals, constituting the nutritive element of food used for a living organism. 67 Pelagic: Relating to communities of marine organisms that belong to the open sea, living free from direct dependence on bottom or shore. Pollution: Emission of pollutants-physical, chemical, or biological substances resulting from human activities that reduce certain qualities of the environment-into the envi- ronment, or results of this emission. Stock of fish: Species, subspecies, geographical groupings, or other category of fish that can be managed as a unit. Annex 2 Classification ol Principal Fishing Gear 1. Hand diggers and collectors Manually operated rakes or digging equipment for mollusks , crustaceans, or other burrowing animals Trained mammals or birds 2. Dredges Power-operated rakes or excavators for mollusks 3. Spears Hand-held spears on a shaft Harpoons (shaft with detachable head on a line) for large fish Explosive harpoons for whales 4. Stupefying aids Poisons, explosives, or electricity 5. Hooks on lines Hand-held casting lines Trolling lines towed from boat Set lines (long lines) with many hooks on surface or bottom 6. Stationary entangling nets Gill nets With single wail of mesh Trammel nets with multiwalled mesh 7. Stationary enclosures Large net enclosures, corrals, true traps for coastal fish Small net enclosures, tykes, bag nets for river fish Rigid pots for eels, crustaceans B. Mobile enclosing nets Trawls towed along bottom or at mid-depths Seines pulled on bottom toward a fixed point Purse seines' floating with purse line to dose bottom of seine Falling nets, cast nets Lift nets Source: W. F. Royce, Introduction to Fisheries Science (New York: Academic Press, 1972). 68 Annex 3 Production of Protein Foods for Direct Human Consumption, 1948-75 (million metric tons) 50 - - - - 40 < o ,,, - - >- - _,- t- 30 - >- - ! .- ·.. ---- - >- 20 -1 -- 2 '"" 3 ,-.. ,___ ,__ - I< - 10 - - 4 ,•~ ' - 0 1948/1952 . 7 7 1952/1956 1965 n ,< 1970 " ~ .. 1975 n Legend: 1. Fish 2. Beef 3. Pork 4. Eggs 5< Mutton Not shown - production wet weight of milk Sources: FAO Production Year Book; FAO Year Book of Fishery Statistics 69 Annex 4 Production of Food for Indirect Human Consumption, 1948-75 (million metric tons) 70 - 60 50 - : 40 - 30 I- _ 20 ..... --.-... .. .! - -- ~ ..... - ..... - 1 10 ... ~ 2- - ~ ~ ~ i::-- ._g 1948/1952 m .... Fh 1952/1956 1965 ~ 1970 n ,. 1975 [ Legend: 1. Soybean 2. Fish for Meal 3. Cottonseed 4. Sesame Seed 5. Peanut 6. Sunflower 7. Linseed Note: a) Whole weight market production before processing b) Does not include reduction of parts of fish used for other purposes. Sources: FAQ Production Year Book; FAO Year Book of Fishery Statistics Annex 5 -..J 0 Potential Effects of Extended Jurisdiction of the Extended Economic Zones Past catches Potential losers Potential gainers Continuing opportunities• Area ('000 tons) (%) Major• Minor Major• Minor Large• Moderate .Northwest Coastal 2,037 47 German DR, Bulgaria, Cuba, Canada , France Canada Atlantic Non coastal 2,292 53 Germany FR, Denmark, France, Greenland, Total 4,329 Poland, Iceland , Italy, USA Portugal, Japan, Norway, Spain, USSR Romania, UK Northeast Coastal 7,023 66 Denmark, Bulgaria, Japan, Iceland, Ireland , UK and others Ireland, Atlantic Noncoastal 3,667 34 France, Norway, Norway, USSR (blue whiting) UK Total 10,690 German DR , Netherlands , UK Germany FR, Sweden Poland , Spain Western Coastal 1,338 90 Cuba , Japan ,d Bahamas , USA (small Guyana, Mexico, Central Noncoastal 143 10 Rep. of Korea, d France, Guyana, pelagic fish) Venezuela Atlantic Total 1,481 USA, USSR Mexico, USA, Nicaragua, Suriname Eastern Coastal 1,426 42 France, Japan, Bulgaria, Cuba , Mauritania, The Gambia, Mauritania, Central Noncoastal 1,930 58 Rep. of Korea, German DR , Morocco, Guinea , Morocco, Atlantic Total 3,356 Norway, Ghana, Greece, Senegal Guinea-Bissau , Senegal Spain, USSR Italy, Nigeria Poland , Portugal, Romania, USA Mediter- Coastal 1,097 · 96 Greece, Italy, Algeria, raneanand Noncoastal 40 4 Japan ,d Spain Morocco, Black Sea Total 1,137 Tunisia Southwest Coastal 781 97 B__razil, Japan, d Argentina, Argentina Uruguay Atlantic Noncoastal 24 3 Rep . of Korea, d Brazil , (resources of Total ~ USSR, Othersd Uruguay Patagonia Shelf) Southeast Coastal 1,231 41 Cuba, Japan, Bulgaria, Ghana, Angola, Angola, Atlantic Non.coastal 1,771 59 Poland, Spain, Italy, Israel, Namibia, Namibia Total 3,002 USSR Portugal, South Africa Othersd Western Coastal 1,538 88 USSR• Japan/ Rep. France• India, Maldives, N. Arabian Sea India, Indian Noncoastal 201 12 of Korea,d Island Territories , {myctophids) Saudi Arabia, Ocean Total 1,739 Spain, Sri Lanka, Somalia Yemen PDR, Othersd Yemen AR, Somalia, Seychelles, Oman, Pakistan Easterri Coastal 726 89 Thailand, Japan,d Australia, India Bangladesh , Indian Noncoastal 88 11 Others Rep. of Koread Bangladesh, Burma, Ocean Total ~ Burma India, Indonesia Northwest Coastal 11,595 80 Hong Kong, China, Pacific Noncoastal 2,936 20 Japan, Rep. Japan, Total 14,531 of Korea, USSR USSR, Others Northeast Coastal 521 19 Japan, Bulgaria, Canada, Canada, Pacific Non coastal 2,254 81 USSR German DR, USA USA Total 2,775 Rep. of Korea, ·Poland, Others ..;y Annex 5 -1 N) Potential Effects of Extended Jurisdiction of the Extended Economic Zones (continued) Past catches Potential losers Potential gainers Continuing opportunities• Area ('000 tons) (%) Major• Minor Major• Minor Large• Moderate Western Coastal 4,293 90 Japan,d Rep. of Koread Kampuchea , Indonesia, Indonesia Kampuchea, Central Non coastal 479 10 Thailand Vietnam Malaysia, Island (small pelagic Malaysia, Pacific Total 4,772 Territories , fish) Papua Papua New Guinea, New Guinea , Philippines , Philippines Vietnam Eastern Coastal 692 71 Japan,d Canada, Rep . of Mexico Colombia, Costa Mexico, Central Non coastal 287 29 USAd Korea, d Poland, Rica, Ecuador, USA Pacific Total ~ USSR, Othersd El Salvador, Guatemala, Panama, Nicaragua, Peru, USA Southwest Coastal 76 28 Japan,d Rep. of Korea,d New Zealand Australia Australia, Pacific Non coastal 199 72 USSR Othersd New Zealand Total ~ Southeast Coastal 5,514 99 Cuba, Japan, Chile, Chile , Chile, Pacific Non coastal 48 1 USA Peru Peru Peru Total 5,562 0 • Only countries with moderate-sized underexploited resources (some tens of Identified resources of half a million ton or more. thousands of tons) are listed. Virtually all coastal waters have some minor under- • Mostly tuna; includes catches outside 200 miles. exploited resources off their coasts , though their exploitation may not be economically ' Catches around Kergualen. feasible. Source: E . A. Perez, " Benchmark Facts on RP Fisheries in World Perspective," • Major gainers or losers relate to fisheries over 50,000 tons. Fisheries Today, Vol. 11, No. 4 (November 1979), p. 8. 73 Annex 6 The Main Fishing Countries Fish catch as a percentage of Value per Total Value per gross national ton• value person product Country ($) ($ million) ($) (GNP) Japan 315.0b 3,371.9 31 .1 1.4 USSR 350.oc 3,016.5 12.1 0.9 China 450.oc 3,408.3 4.2 2.6 Norway 119.5 355.5 89.7 2.7 USA 339.9 907.4 4.3 0.1 Peru 37 .4 85.9 5.8 1.2 India 226.4 443.3 0.8 0.8 Thailand 211.0 357.1 9.0 5.0 Korea, Republic of 235.0b 388.8 11.8 4.5 Spain 425.0b 667.4 19.1 1.8 Denmark 163.1 238.9 47.5 1.4 South Africa 57.3 76.3 3.2 0.4 Indonesia 411.0c 534.3 4.3 6.2 Philippines 411.1 513.3 12.8 . 6.6 Canada 260.6 300.1 13.6 0.3 UK 335.4 383.8 6.9 0.3 Iceland 140.0b 126.9 598.4 20.5 Korea, People's Demo- cratic Republic of 235.0c 188.0 12.5 4.0 France 634.4 505.5 9.7 0.3 Nigeria 200.oc 133.0 2.2 1.9 Chile 13.8 9.2 0.9 0.1 Brazil 370.0b 218.3 2.1 0.5 Poland 350.oc • 202.9 6.1 0.5 Mexico 300.7 145.0 2.7 0.4 Malaysia 617.6 274.7 23.6 6.2 Senegal 281.6 91.2 21.6 10.5 Note: Data on value per ton obtained by: • Dividing total value by total tonnage where both are available for 1973 (from FAO Yearbook of Fishery Statistics). • By calculating value per ton for a series of previous years and then extending the trend. ' By comparing with a country or countries with a similar economic structure, a similar fishing industry, and location in the same region. "Total value" data are either those given by FAO or calculated from the FAO volume data. "Value per person" data are obtained by dividing total value by population (UN Demographic Yearbook) . "Fish catch as a percentage of GNP" data are value per person data divided by per capita income (Handbook of International Trade and Development Statistics, Supplement 1973). Source: Fishing News, Vol. 16, No. 9 (September 1977.) Annex 7 --J ""- Fishery Products: World Catch of Aquatic Organismsa Average 1980° Change 1970-73 1974 1975 1976 1977 1978 1979 Preliminary 1979-80 (%) (in thousand tons) WORLD TOTAL 64 ,200 66,592 66,479 69,863 69,164 70,544 71,347 70,842 - 1.3 DEVELOPED COUNTRIES 34 ,386 36,736 37,178 38,575 37,982 37,432 37,383 37,608 - 0.6 North America: 4,022 3,821 3,835 4,152 4,216 4,783 4,922 4,895 Canada 1,212 974 993 1,102 1,235 1,366 1,411 1,305 - 5 United States 2,810 2,847 2,842 3,050 2,980 3,418 3,511 3,590 + 2 Western Europe 11 ,073 11 ,295 10,989 12,030 12,078 11,440 11 ,134 11 ,029 European Economic Community: 4,635 5,121 4,856 5,023 4,810 4,844 4,623 4,800 + 4 Denmark 1,384 1,835 1,767 1,912 1,806 1,740 1,738 2,000 +15 France 772 793 784 787 744 777 732 700 - 4 Germany, Federal Republic of 505 526 442 454 432 412 356 315 -12 Italy 406 426 406 420 380 402 427 457 + 7 Netherlands 329 326 351 285 313 324 324 328 + 1 United Kingdom 1,099 1,079 969 1,026 997 1,030 905 817 -10 Others 140 136 137 139 139 158 140 183 +31 Portugal 456 430 375 346 310 255 242 260 + 7 Spain 1,530 1,498 1,512 1,469 1,389 1,373 1,205 1,250 + 4 , Iceland 762 945 995 986 1,374 1,567 1,645 1,510 - 8 Norway 2,985 2,579 2,481 3,361 3,402 2,587 2,650 2,417 - 9 Others 0 705 722 770 845 793 814 769 792 + 3 Eastern Europe and USSR: 8,829 10,596 11 ,493 11 ,509 10,562 9,977 10,259 10,118 - 1 Poland 528 679 801 750 655 571 601 640 + 6 USSR 7,735 9,256 9,970 10,132 9,351 8,915 9,114 8,910 - 2 Others 566 661 722 627 556 491 547 568 + 4 Oceania: 176 203 172 187 210 223 237 237 Australiad 114 134 109 110 128 123 127 120 - 6 New Zealand 62 69 64 76 83 100 110 117 + 6 Other Developed Countries: 10,286 10,821 10,687 10,697 10,915 11,010 10,852 11 ,329 Japan 9,497 10,101 9,895 9,994 10,123 10,184 9,945 10,398 South Africa 597 592 600 595 550 600 659 635 - 4 Israel 27 24 24 26 24 26 27 26 Others 165 104 168 82 218 200 270 DEVELOPING COUNTRIES 29,814 29 ,856 29 ,302 31,288 31 ,1 81 33,112 33,964 33,234 - 2.2 Africa: 3,618 4,025 3,700 3,533 3,533 3,634 3,526 3,219 - 9 Morocco 278 285 224 281 255 287 280 Ghana 228 220 255 238 268 264 230 Nigeria 385 473 466 497 504 519 535 451 -16 Senegal 259 357 363 362 348 359 308 Tanzania 173 171 196 239 288 295 344 240 -30 Namibia 634 840 761 574 404 418 327 211 -35 Others 1,661 1,679 1,435 1,342 1,466 1,492 1,502 1,499 Latin America: 10,462 7,447 6,604 8,201 6,818 8,736 10,028 9,579 - 4 Mexico 407 402 468 526 611 703 875 1,252 +43 Chile 1,036 1,128 899 1,379 1,319 1,929 2,633 2,817 + 7 Ecuador 115 174 222 298 434 617 644 Peru 7,530 4,145 3,448 4,344 2,537 3,369 3,682 2,709 -26 Argentina 224 277 211 266 370 519 566 390 -31 Brazil 602 726 753 653 748 803 843 850 + 1 Uruguay 17 16 26 34 48 74 108 130 +20 Others 531 579 577 701 751 722 677 787 +16 Near East: 737 873 843 813 820 789 771 Asia: 14,225 16,688 17,260 17,790 19,025 18,891 18 ,526 18,532 South Asia: 2,908 3,418 3,440 3,377 3,585 3,425 3,487 3,361 - 4 India ' 1,801 2,255 2,266 2,174 2,312 2,306 2,343 2,200 - 6 ....:r Others 1,107 1,163 1,174 1,203 1,273 1,119 1,144 1,161 + 1 Ol Annex 7 -:c Ol Fishery Products: World Catch of Aquatic Organismsa (continued) Average 1980b Change 1970-73 1974 1975 1976 1977 1978 1979 Preliminary 1979-80 (%) ('000 tons) East Asia: 6,106 7,057 7,424 7,874 8,688 8,757 8,620 8,671 + 1 Indonesia 1,249 1,333 1,382 1,479 1,568 1,642 1,766 1,853 + 5 Korea, Republic of 1,089 1,688 1,887 2,118 2,085 2,091 2,162 2,090 - 3 Malaysia 378 525 474 517 619 685 698 765 +10 Philippines 1,167 1,371 1,443 1,393 1,508 1,495 1,476 1,507 + 2 Thailand 1,597 1,516 1,553 1,659 2,188 2,095 1,716 1,650 - 4 Others 626 624 685 708 720 749 802 806 Centrally Planned Economies: 5,211 6,213 6,396 6,539 6,752 6,709 6,419 6,500 + 1 China 3,482 4,134 4,247 4,320 4,463 4,394 4,054 4,135 + 2 Others 1,729 2,079 2,149 2,219 2,289 2,315 2,365 OTHER DEVELOPING COUNTRIES 772 823 895 951 985 1,063 1,133 1,133 + 2 • Excluding all aquatic mammals and aquatic plants . b Including estimates (1979 data repeated) for countries for which 1980 data are not yet available. c Including Greece. • Data available on fiscal year (July-June) basis only. so·urce: 'FAD, Fish Utilization and Marketing Service, Fishery Industries Division, "Fishery Commodity Situation and Outlook 1980/81 ," FAD Fish. Gire., (737):31pp, May 1981. 77 Annex 8 World Catch by Selected Countries, 1960-78 (million metric tons) 11-------------------------- ..... -- I . . .' / ./• -- 10~----l-------l-----l-- -j,.' .. ,, PERU I I ' ' "' . I ./ II .. ....••• · ··•... 9 / I ..,,, I \ I ./~:1R I \ \ 8 ~----I----J.----l-----i---~-+----1---.L..-l-"------+----l--~ I .... V • / 7 __ , -, ·, / . / ..... / I 6 t=~':+====t='-~,--=z:p-,c.._1_--rt__1_T_1 I I 5 / I I . •· .. --- REPUBLIC OF KOR DENMA 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 78 Annex 9 Largest Producers of a Sample of Aquaculture Products, 1975 (Tons) (Tons) Finlish Mussels China 2,200,000 Spain 160,000 India 490,000 Netherlands 100,000 USSR 210,000 Italy 30,000 Japan 147,291 France 17,000 Indonesia 139,840 World 325,517 Philippines 124,000 Thailand 80,000 Bangladesh 76,485 Clams Nigeria 75,000 Korea, Republic of 24,920 Poland 38,400 Philippines 33 World 3,980,492 World 24,953• Shrimps and Prawns India 4,000 Others Indonesia 4,000 Scallops 62,600 Thailand 3,300 Cockles 29,987 Japan 2,779 Seaweeds 1,054,793 World 15,663 Grand Total 6;099,289 Oysters Japan 229,899 USA 129,060 France 71,448 World 591,386 • Since for clam production the countries listed are the only ones indicated in the source, they add up to the world total shown. Source: T. V. R. Pillay, "The Status of Aquaculture, 1975." The Paper was presented at the FAD Technical Conference in Aquaculture, Kyoto, Japan, 1976. 79 References L. G. Anderson, The Economics of Fisheries Management (Baltimore: The Johns Hopkins University Press, 1977). F. W. Bell, Food from the Sea: The Economics and Politics of Ocean Fisheries (Colorado: Westview Press, 1978). F. T. Christy, Jr. and A. Scott, The Common Wealth in Ocean Fishing (Baltimore: The Johns Hopkins University Press, 1965). Committee on Fisheries (COFI), "Review of the State of World Fishery Re- sources" (FAO, Rome, October 1979). D. K. Emmerson, "Rethinking Artisanal Fisheries Development: Western Concepts, Asian Experiences," Staff Working Paper, No. 423 (Washington: World Bank, 1980). FAO; Report of the Consultative Group Meeting on Small-Scale Fisheries Development in the South ChinaSeaRegion, No. SCS/GEN/76/9, Manila, Philippines, February 1977. G. M. Gerhardsen, "Strategies for Development Projects in Small-Scale Fisheries : A Contribution to Policy Formulation" (FAO, Rome, 1979). A. S. Msangi and J. J. Griffin, eds .,International Conference on Marine Resource Development in Eastern Africa (The University of Dar es Salaam, Tanzania, April 1974). D. Pauly, "Theory and Management of Tropical Multispecies Stocks: A Re- view, with Emphasis on the Southeast Asian Demersal Fisheries," ICLARM Studies and Reviews No. l (Manila, Philippines, 1979). I. R. Smith, "A Research Framework for Traditional Fisheries," ICLARM Studies and Reviews No. 2 (Manila, Philippines, 1979). Credits Cover: Bill Fraser Picture Section: I. F. Botts, FAO 2. Priya Ramrakh a , UNICEF 3. Ra y Witlin, World Bank 4. Ray Witlin , World Ba nk 5. F. Botts, FAO 6. Maya Bracher, FAO 7. Tomas Sennett, World Bank 8. Alfredo Sfeir-Younis 9. Kay Chernush, World Bank 10. Alfredo Sfeir-Younis I I. Ed Hoffman, World Bank 12. Yosef Hadar, World Bank Foldout Map: Jody Dugan RTHEAST - -- ·wEs TLANTIC ~ ESTERN CENTRAL -------- . , '-o:. ATLANTIC ,._._ -::~..:... ~:f~:-· :~·.. ::. -~-- ~~ - ::/! • ~ ~~~ . ~ = .•,-:::~ (.) EASTERN CENTRAL PACIFIC it u - - l ..... ---~-· ,~~~~~- ti, :"-::· .'.-::: ·.-<';;-=::,~cc-: : .lll. :.;.=.;.;.;:-:-;-,...:~~==-- . "':'~.::::;...-:.....,....,-.:.. ~ :-.•::3:·;::;-,:: - _:: :::.. 5:- '.::.:::,:~;';:. SOUTHEAS PACIFIC • -~ -,~--· - . ~c.:·,~~ ,~ = ~~~@ ".:~ ~ SOUTHV'IESTPACIFIC - : : : .;;:...= ::: i=::--= :.:::, "~~ ANTARCTIC PACIFIC The denominations, the cfassiflcatlons, the boundaries, and the colors used In this map do not Imply on me part of The World Bank and its affiliates any judgement on the legal or olher status of any territory, or any endorsement or acceptance of any boundary. December 19821 The Extended Economic Zones and Scope for Fisheries - Regional catch of 0.25 million metric tons of fish - Regional catch of 1 million metric tons of fish '-----4 Boundaries of major marine fishing areas 200 nautical mile limit under the Extended Economic Zone (EEZ) Countries that may gain in fisheries in excess of 50,000 tons per year by extending their national jurisdictions over fisheries to 200 nautical miles Countries with over 100,000 artlsanal fishermen Countries with aquaculture production exceeding 1,000 tons per year ----:::;,.- Major River Systems International Boundaries Sources: 1. Food and Agriculture Organization. 2. R. Pillai, "The State of Aquaculture" Paper presented at FAQ Technical Conference on Aquaculture, Kyoto, Japan, May 26, 1976. 3. World Conservation strategy: Living Resource Conservation for Sustainable Development Prepared by the International Union for Conservation of Nature and Natural Resources, Gland. 5wi1zerland, 1980. 4. FAO. Atlas of the Living Resources of the Seas, Rome, 1971. . - .. ..:.,_ ices of The World Bank Senegal: The World Bank, Immeuble S.D.I.H ., 3, Place de l'Independance, Dai<1r, Senegal; mailing address-B.P. 3296 adquarters: 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. Somalia: .The World Bank, c/o Somali Commercial & Savings Bank Building (4th Jew York Office: floor) , Mogadishu, Somalia; mailing address -P.O.- Box 1825 The World Bank Mission to the United Sri Lanka: The World Bank , People's Bank, Head Office (10th floor), Colombo 2, Nations/New York Office Sri Lanka; mailingaddress-P.O. Box 1761 747 Third Avenu e (26th floor) Sudan: The World Bank, 28 Block 2H , Baladia Street, Khartoum, Sudan; mailing I New York, N.Y. 10017, U.S.A. address-P.O. Box 2211 lropean Office: The World Bank, 66, avenue d'lena, 75116 Paris, France Tanzania: The World Bank , N.I.C. 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