Financial Support to Fisheries

Financial Support to Fisheries

Implications for Sustainable Development You do not have access to this content

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16 Aug 2006
9789264036642 (PDF) ;9789264036635(print)

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OECD governments pay out around USD 6 billion a year to support the fisheries sector. Some of this expenditure is provided to help ensure the effective management of fisheries through the provision of research, administrative and enforcement services. However, its effects on economic profitability and resource sustainability are open to debate. Such support has often been linked to over-fishing and over-capitalisation, and its reform may lead to improved economic, environmental and social outcomes. This report analyses the impacts of such transfers from a sustainable development perspective by addressing the economic, environmental and social dimensions of financial transfers. Through this innovative focus, this study will deepen policy makers’ understanding of the complex issues at play in the fisheries sector — a sector that is characterised by ongoing concerns regarding economic profitability, community resilience, and resource sustainability.
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  • Executive Summary
    The fisheries sector in OECD countries receives around USD 6.4 billion a year in transfers from governments. Around 38% of the transfers is provided for the management, research and enforcement of fisheries while 35% is directed to the provision of fisheries infrastructure.
  • Government Financial Transfers to Fisheries in OECD Countries
    The debate over financial support to the fisheries sector has spawned a variety of definitions and classification frameworks, with potential for creating confusion about coverage and the implications for policy. The definition used by the OECD is government financial transfer (GFT) which is the monetary value of government interventions associated with fisheries policies. This chapter discusses definitional issues and data limitations, and presents the data in OECD countries for the period 1996-2003.
  • A Sustainable Development Framework for Assessing the Effects of Government Financial Transfers
    This chapter provides an overview of the concept of sustainable development and discusses its application to the analysis of GFTs provided to the fisheries sector. A checklist approach to analysing the effects of subsidy programs within the framework of the sustainable development paradigm is proposed as a way of developing a pragmatic and simple approach to answering the key policy questions on fisheries GFTs.
  • Analysis of Specific Government Financial Transfer Categories

    This chapter presents a detailed analysis of the effects of different types of government financial transfers on the fisheries sector based on the sustainable development framework elaborated in the previous chapter.

  • Key Policy Insights
    This report highlights a number of important policy messages that may assist OECD governments (as well as non-OECD governments) in assessing the effects of financial support to the sector.
  • Historical Data 1996 - 2003
    These data are for government financial transfers to the marine capture fisheries in OECD countries and exclude transfers to the aquaculture and processing sectors. The data have been obtained from the annual statistical returns from OECD Member countries. In some cases, gaps in the data for particular years have been filled by OECD Secretariat estimates.
  • The Economic Effects of Transfers to the Fisheries Sector
    This chapter reviews the economic effects of government financial transfers. Using a model of fisheries, it applies a matrix approach to determine the effects of transfers under different combinations of management parameters (including whether or not there are property rights over the resource and whether catch or effort controls are used).
  • The Environmental Effects of Transfers to the Fisheries Sector
    The environmental effects of GFTs provided to the fisheries sector closely follow from the economic effects analysed in the previous chapter. This chapter presents the analysis from a different perspective using the checklist approach developed for the environmentally harmful subsidies
  • Social Impacts of Government Financial Support of Fisheries
    This chapter seeks to identify the key policy and analytical issues in assessing the social effects of providing subsidies, within a sustainable development framework. A range of frameworks that can help the social analysis are identified but none are found to be ideally suited to the fisheries sector.
  • Social Capital and Fisheries Subsidy Reform
    Using the concept of social capital the paper examines the interrelationships between fisheries governance and performance and government financial transfers to the fisheries sector. It is argued that social capital plays a crucial role in promoting trust and cooperation among fishers, both of which are needed to reduce the ‘race to fish’ and ‘effort creep’ inherent in fisheries.
  • Canada's Response to the 2003 Cod Fishery Closure
    This case study forms part of Canada’s contribution to the OECD Committee for Fisheries project analysing the effects of government financial transfers (GFTs) on the fishing industry. Earlier Committee work had focused on trade and economic impacts; the analysis has been broadened in the current programme of work to include the effect of GFTs within a sustainable development paradigm.
  • Analysis of the Fishery Agreement between the Seychelles and the European Union
    The Seychelles Republic comprises an archipelago of 115 islands in the Western Indian Ocean, northwest of Madagascar far from African coast. The islands like Madagascar, Mauritius or Reunion, are isolated in the Indian Ocean, away from commercial ways.
  • Fisheries Subsidies in Norway
    Fisheries subsidies in Norway have a long and interesting history. In the first years after the Second World War the fisheries of Norway were quite profitable, and reserve funds were accumulated through levies on exports of fish. After a few years the fishing industry began to lag behind other industries in terms of productivity, and the funds were used to support declining incomes in the industry.
  • Analysis of Subsidies to Decommissioning Vessels and License Retirement in Australia
    Concerns about the overcapacity of global fishing fleets and the unsustainable harvest of fish stocks have resulted in increased attention being directed at subsidies to fishing. There is currently significant debate on the environmental and trade impacts of the various subsidies used worldwide and the manner in which subsidies should be disciplined.
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