Managing Fishing Capacity: Instruments, Global Trends, & Options

1. Managing Fishing Capacity:Instruments, Global Trends, & Options Rebecca Metzner Fisheries Officer FAO Fisheries and Aquaculture Department GFCM Workshop 17-19 February 2010

2. Overview • Reminders • Overview of instruments • Global trends in managing fishing capacity • Available options

3. Vision Reminders • A world in which responsible and sustainable use of fisheries & aquaculture resources make an appreciable contribution to human well being, food security and poverty alleviation.

4. Overcapacity Reminders • Overcapacity • the generic term for levels of fishing capacity that are greater than the desirable target level of fishing capacity

5. Why does overcapacity develop? Reminders Overcapacity in fisheries develops primarily as a consequence of the absence of clearly defined property rights and the way in which fishers react to the influences or incentives that they face under such conditions. FAO, 2004

6. Impacts of overcapacity Reminders • Depleted abundance • Overinvestment • Reduced returns to capital and labor • Decline in the safety and quality of life • Increasing political strife

7. Overview of Instruments

8. Instruments Overview of Instruments • Code of Conduct for Responsible Fisheries (CCRF) • International Plan of Action for the Management of Fishing Capacity (IPOA – Capacity) • The regional approach (RPOA) • The national approach (NPOA) • The “No NPOA” countries

9. Global Trends in Managing Fishing Capacity

10. On the Management Side Global Trends in Managing Capacity • Managing, not controlling • Social forces • Economic forces • Collaboration

11. On the Management Side Global Trends in Managing Capacity • Tenure security • Rights-based approaches • Building on & enhancing existing social structures

12. On the people side Global Trends in Managing Capacity • Collaboration • Rights plus responsibilities • Empowerment, self determination • The adjustment element • Bills, obligations, families, politics

13. Available Options

14. 3 Options Available options • Do nothing • Control • Manage • What are the implications of each option?

15. Management of Fishing Capacity Available options • Overall purpose • sustainability • stock diversity • social benefits from ecosystems • Commercial perspective: • trying to ensure profitability • Operational perspective • avoiding overcapacity • encouraging involvement

16. Elements of Success Available options • Sustainability • a function of the willingness to uphold limits on catches • Commercial viability • a function of the type of management program • Participation • encouraging additional participation without disadvantaging current participants • inspiring participation, not circumvention • making circumvention / non-compliance undesirable

17. Desired Levels of Capacity Available options • Greater stock diversity • Lower production costs • Increased social benefits • Purpose of capacity management: • prevent the development of overcapacity, or • bring the existing capacity into line with the predefined target level of capacity

18. The technical tools Available options • Two categories • incentive blocking tools • incentive adjusting tools

19. Category 1: Incentive Blocking Tools Available options • Based on input controls: • limited entry programs, permit moratoria, license limitation programs • buyback programs • gear and vessel restrictions • total allowable catches (TACs) • vessel catch limits • individual effort quotas (IEQs)

20. Category 1: Incentive Blocking Tools Available options • Effect: drive fishers to maximize revenues by maximizing catch quantities • overcapitalization and overinvestment • commercial waste • escalating management and enforcement costs • resource collapse due to overfishing

21. Category 1: Incentive Blocking Tools Available options • Incentive blocking programmes are only effective in reducing capacity in the short term. FAO, 2004

22. Category 2: Incentive Adjusting Tools Available options • Effect: drive fishers to maximize profits by minimizing expenses • entrepreneurial nature of fishing is changed from competitive hunting to production • sustainability & commercial concerns are aligned

23. Category 2: Incentive Adjusting Tools Available options • Based on user rights & security of tenure • "group" fishing rights including • community development quotas (CDQs) • community-based management user rights, shares • cooperative fishing rights • area or region-based Territorial Use Rights (TURFs) • individual fishing quotas (IFQs) & individual transferable quotas (ITQs)

24. What now?

25. Implement effective management systems What now? • Problem: • Poor governance + perverse incentives • Challenge: • Recognize the commercial forces of any size of fishing operation • Recognize need for tenure security • Solution: tenure security • Purpose designed and built • Socially legitimate and viable • Myriad of options

26. Engage countries What now? • Problem: • Struggle to implement CCRF, shift away from productivism • Challenge: • National political will • International cooperation • Solution: • Ongoing collaboration to build skills, means, know-how • Support expansion of regional cooperation

27. Realizing our Quest What now? • Consider regional collaboration • Elements of a RPOA PREAMBLE • I. DEFINITIONS • II. BACKGROUND • III. NATURE AND SCOPE OF THE RPOA-CAPACITY • IV. VISION, MISSION AND STRATEGY OF RPOA–CAPACITY • V. PRINCIPLES AND PROCESS • VI. CURRENT EFFORTS TO MANAGE FISHING CAPACITY • VII. PURPOSE AND OVERALL OBJECTIVE • VIII. STRATEGIC INTERVENTIONS • IX. SPECIFIC ACTIONS • X. IMPLEMENTATION AND MONITORING OF THE RPOA-CAPACITY

28. Realizing our Quest What now? • Catalyzing and driving change • Securing investment in transitions • Ensuring fish are vibrant elements of food security

29. Thank you