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Financial Support to Fisheries

Implications for Sustainable Development

image of Financial Support to Fisheries

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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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).

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