3.1 Opening Session
3.2 Working Sessions
3.3 Conclusions and Recommendations
The programme of the workshop is attached as Annex II. It was divided into three major parts. The first part consisted of the presentation of principal technical papers. These included:
The second part of the programme consisted of the presentation of papers of inter-governmental organizations and of country papers on the effects of globalization and deregulation on their fisheries industries.
The third and concluding part of the workshop was devoted to working group sessions. Three working groups were formed. Working group I dealt with the implications of globalization and the forthcoming Millennium Round of Trade Negotiations on fisheries in Asia and the Pacific. Working group II dealt with credit and investment support requirements for fisheries in Asia Pacific needed to strengthen its competitive position in the global market. Working group III covered globalization and transfer of technology, exchange of information, training, research and development as well as the role of fishermen/women organizations and co-operatives.
The findings and recommendations of the working groups were then discussed and adopted in plenary. They include a number of follow-up recommendations which will have to be modified in the light of the outcome/progress of the MTN and might require FAO technical and TCDC assistance.
The opening session commenced with an inaugural address by Dr. Jung-Ook Lee, President, Korea Maritime Institute (KMI). The address was read by Dr. Seong K. Park, Senior Research Fellow, Fisheries Economics Research Division, KMI, as Dr. Jung-Ook Lee had to attend a session of the Korean Parliament.
The address of Dr. Jung-Ook Lee drew the attention of the audience to the quickly deteriorating status of fisheries resources and coastal environment in the North Pacific Ocean and elsewhere and to the fact that the dependence on ocean and coastal resources in the Asian economies had rapidly increased over the last twenty years. The transboundary character of the ocean environments and the Asian economies’s heavy reliance on foreign markets and international trade were identified by the speaker as important factors in this process. Growing population, increasing standards of living and welfare and urban and industrial development were seen as creating additional demand for food of aquatic origin and use of coastal lands.
The speaker then suggested that resource conservation measures, in order to be effective, must be applied by all countries in the region i.e. those that exploit and export fisheries resources and those that import and consume them. Dr. Lee’s address further raised the question whether resource use and trade patterns in the region and on a global scale under the present resource management regime were sustainable and how they could effect national and international markets on both ends of the supply-demand equation. The address concluded by highlighting that these and other issues were presently being discussed at OECD, WTO and APEC, by thanking FAO and APRACA for their assistance in organising the workshop and by expressing the hope that the workshop will produce some pragmatic answers, regional and global strategies and solutions to the present problems which might help the countries to use their aquatic resources and coastal environment in a more sustainable and beneficial manner.
The address of the president of KMI was followed by an address by Mr. Izzat Feidi, Chief, Fish Utilisation and Marketing Service of FAO. Mr. Feidi extended a warm welcome to the participants of the workshop on behalf of the Director-General of FAO. He also expressed his gratitude and appreciation to the Korean hosts and organisers as well as to the Asia and Pacific Rural and Agricultural Credit Association for having made excellent preparations and arrangements for this important meeting.
Mr. Feidi then drew the attention of the meeting to the fact that globalization of markets and further liberalization of trade including international fish trade had become a major theme on the international agenda. The 21 Heads of States and Governments present at the very recently concluded annual meeting of the Asia-Pacific Economic Cooperation (APEC) forum in Auckland, New Zealand, had strongly endorsed the further liberalization of world trade. The speaker further pointed out that APEC’s foreign and trade ministers had issued a joint statement that they had agreed to seek a broad based next round of global trade negotiations that focused on improving market access in industrial goods as well as in agriculture and services, to be concluded within three years. With a view to promote further liberalization of world trade, the APEC members also agreed to promote the removal of agricultural export subsidies and the phasing out of tariffs in eight product areas, including fish products.
The speaker also pointed out that there have been notes of caution at this year’s annual APEC meeting and that the trend towards economic globalization has brought not only opportunities for development but also challenges and risks. While helping to open markets, intensify competition and improve efficiency, globalization presented particularly developing countries with the issue of how to maintain their own economic security. At the meeting it was suggested that risks could be minimised by transferring appropriate technologies, cooperation in research and development and assistance in technical training.
Mr. Feidi then highlighted that participation in international trade was an important feature of many of the fishery and aquaculture economies of the world and that the participation of developing countries in this trade has therefore always been a primordial concern for FAO. Presently, FAO was undertaking an analysis of the specific needs for and the possible configuration of the FAO Fish Trade Support System by 2010. The speaker concluded his presentation by wishing the workshop participants the best of success in identifying policies and measures which can help the fisheries sectors in the countries of Asia and the Pacific to take advantage of the continuing process of globalization, to strengthen their economic, social and nutritional roles and contribution to food security as well as their contribution to the conservation and sustainable management of coastal environment and fisheries resources.
The address by Mr. Feidi was followed by an address of Mr. Yong-Jin Kim, Secretary-General, Asia Pacific Rural and Agricultural Credit Association (APRACA). On behalf of APRACA, Mr. Kim extended his welcome to the participants of the workshop and thanked the Korean hosts and FAO for jointly organising the workshop which dealt with a very important issue for financial institutions in Asia providing credit to the fisheries sectors in Asia i.e. the challenges brought about by globalization and deregulation. He then gave an overview of APRACA’s history and activities and pointed out that APRACA had presently 50 members in 23 countries including central banks, agricultural development banks and NGO’s. He also drew the attention of the workshop participants to the fact that APRACA was putting an increasing emphasis on micro-finance programmes and on linking self-help groups and financial institutions.
The address continued with a brief review of the past cooperation between the fisheries department of FAO and APRACA since 1989 which included global and regional workshops, exchange of TCDC experts, maintenance of a roster of fisheries credit experts, publication of occasional newsletters and other activities and which had strengthened the dialogue and cooperation between financial institutions, fisheries administrations and fisheries industries in Asia and the Pacific and promoted the financing of sustainable fisheries development. Mr. Kim also mentioned that the recently held General Assembly and Executive Committee of APRACA had just approved a programme of medium-term cooperation with FAO in the field of provision of credit for responsible fisheries and sustainable fisheries development the details of which would be worked out in the beginning of 2000.
Mr. Kim concluded his opening address by inviting the workshop participants to develop specific recommendations and proposals as to how financial institutions in Asia could assist the fisheries sector to take advantage of the continuing process of globalization, to strengthen their economic, social and nutritional roles, to contribute to food security and to contribute to the conservation and sustainable management of coastal environment and fisheries resources.
On behalf of the Ministry of Marine Affairs and Fisheries (MOMAF) of the Republic of Korea, Mr. Lark-Jung Choi, Administrator, Pusan Regional Office for the Ministry of Marine Affairs and Fisheries, extended a warm welcome to all participants as well as to the co-organisers of the workshop. He pointed out that Pusan as a global and regional maritime center and important fishing harbour was an appropriate venue for discussing the issue of globalization and its effects on fisheries and on the coastal environment and said that MOMAF was pleased to be associated with the workshop and any follow-up activities.
The opening session ended with a congratulatory address by Dr. Jung-Uk Lee, Director-General, National Fisheries Research and Development Institute (NFRDI) read by Mr. Hak-Kyun Kim, Director, Marine Development and Algal Blooms Department.
3.2.1 Presentation of Principal Technical Papers
3.2.2 Presentation of Papers of Intergovernmental Organizations
3.2.3 Presentation of Country Papers
3.2.4 Working Group Sessions and Workshop Recommendations
The working sessions commenced with an introduction to programme and organizational arrangements by Ms. Eun-Ju Yang, KMI and Dr. U. Tietze, FAO. The programme of the workshop was adopted with minor amendments and changes and it was agreed to form three working groups in the afternoon of the fourth day of the workshop. General topics for each working group were identified and the secretariat was asked to formulate more detailed terms of reference for each group.
- The Effects of Globalization on Marketing of Fishery Products
The paper was presented by Dr. E. Ruckes, FAO. Mr. Bishnu Shrestha, Managing Director, APRACA Consultancy Services chaired the session. Dr. Ruckes commenced his presentation by highlighting that the term globalization tried to convey the message that borders are open, trade flows are free to move between countries and that markets are international whereas they had been national before. He then referred to the results of the Uruguay Round of Multilateral Trade Negotiations which had been concluded in 1994 and to the forthcoming round of multilateral trade negotiations referred to as Millennium Round of Trade Negotiations.
The speaker pointed out that while it the general idea was that the removal of trade barriers increased competition between suppliers (and consumers) and this should keep prices down, prevent unjustified profits, ensure efficiency and result in welfare gains of all participants in the market place, in practice this was not always the case as the character of competition was largely determined by the structure of the industry and by the distribution of bargaining power among the participants in supply and product markets.
The presentation then turned to the issue of food security, to the World Food Summit Plan of Action and to the contribution of fisheries to food security. Dr. Ruckes gave an overview of trends in domestic consumption and international trade. This was followed by an outlook towards the emerging trading environment including the implementation of WTO agreements such as the ones on Subsidies and Countervailing Measures (SCM).
Concluding his presentation, Dr. Ruckes touched upon issues, which might be discussed at the Millennium Round of Trade Negotiations. These included the question of subsidies as well as environmental issues. It was also expected that fishery commodities might be included in the MTN. The speaker pointed out that APEC members already included fish and fishery products in the fast track of their Early Voluntary Sectoral Liberalization initiative (EVSL) which could be seen as an indication of the strong interest among trading nations in Asia and the Pacific to include fishery commodities.
In the discussion following the presentation, the issue of import restrictions for shrimps from Asian countries because of environmental considerations (by-catch of endangered species i.e. sea turtles) was raised. It was mentioned that the concerned countries had filed a case at the WTO Dispute Settlement Body, which had decided that the import restrictions imposed by some countries were against the WTO rules. The view was expressed that trade issues should not be linked to environmental concerns as there were separate international agreements dealing with environmental issues.
Other interventions drew attention to the many conflicting interests between developed and developing countries which also included the question of subsidies and that these conflicts could threaten the future of trade in fishery products and agricultural commodities if not resolved. In response to these interventions, the speaker explained that the importance of these and other issues had been recognised and that they would be taken up during the forthcoming Millennium Round. He also pointed out that while the developing countries as well as the Least Developed Countries were actively participating in the preparatory discussions, there was a need to more specifically consider the concerns related to fishery commodities in these negotiations. He suggested that the workshop should make specific recommendations, which then could be brought by the participants to the attention of the concerned national authorities, which represented the countries in the MTN.
It was acknowledged in the discussion that in past negotiations i.e. the Uruguay Round, developing countries were not always well prepared and not fully aware of the consequences of the agreements they signed. FAO was asked to play a greater role in preparing countries for the negotiations through training and technical assistance programmes.
Regarding a question whether fisheries would be included in the MTN, the speaker reiterated that although so far, trade in fishery products unlike trade in agricultural commodities was not one of the mandated subjects, many countries were strongly in favour of adding it to the agenda, particularly the members of APEC.
- International Trade in Fishery Products and the New Global Trading Environment
The second paper on international trade was presented by Dr. E. Ruckes, FAO, on Wednesday morning. Mr. Izzat Feidi, FAO, chaired the session. The presentation elaborated on selected topics touched upon in the earlier presentation of Dr. Ruckes i.e. specific issues related to fish and fishery products which may become relevant in future multilateral trade negotiations and related past and on-going technical assistance activities initiated by FAO. The former ones included the issues of subsidies, trade and environment, examples of the settlement of disputes as well as an overview of the position of some major players on these issues i.e. Japan, New Zealand and the United States of America.
As far as trade and environment is concerned, Dr. Ruckes expected that if fishery products are included in the forthcoming round of trade negotiations, it is likely that environmental issues will be discussed and international agreements be sought which can mitigate negative environmental impacts. The speaker also thought it conceivable that eco-labelling schemes could gain ground in fisheries and aquaculture. These could develop in the private sector and under conditions where participation of developing countries could be very restricted.
Regarding technical assistance activities initiated by FAO, the speaker gave an overview of the fish trade support system initiated by FAO which consisted of five Regional Fish Marketing Information and Technical Advisory Services presently functioning as intergovernmental organizations i.e. INFOFISH, INFOPECHE, INFOPESCA, INFOSAMAK or project i.e. EASTFISH and the national project INFOYU in China. Dr. Ruckes also mentioned the FAO headquarters based GLOBEFISH database and the associated market research programme, international trade and commodity conferences, strategic studies and analyses as well as the FAO Committee on Fisheries (COFI) Sub-Committee on Fish Trade which is an international forum for Government discussion on fish trade related matters and an International Commodity Body (ICB) for preparing projects, supervising their implementation and liasing with the Common Fund for Commodities.
He also drew the attention of the workshop participants to the fact that in recent years, technical services have developed through which developing countries can obtain information and direct technical assistance in quality assurance and fish product safety in accordance with import regulations and quality requirements of the major developed country import markets.
Concluding the presentation, the speaker pointed out that past experience showed that developing country delegations at MTN tend to lack specific fishery knowledge and in turn fishery experts or officers become aware too late what the implications of newly agreed international trade rules and regulations are for their countries. Particularly developing countries should recognise that there are useful regional and international fora where technical issues of international fish trade could be discussed and where countries could influence the agenda and the depth of analysis.
In the discussion following Dr. Ruckes’ presentation, questions were raised as to the negotiating positions of Asia Pacific countries in the forthcoming MTN. According to the knowledge of the workshop participants, specific negotiating positions of individual countries had not yet been finalised or at least not been made public. APEC, however, had expressed certain views including the one that fishery commodities should be included in the forthcoming negotiations.
With a view to assist countries to prepare themselves for the new round of trade negotiations, to identify their interests with regard to the inclusion of fishery commodities, interventions from the South Pacific stressed the need for training and technical assistance and suggested that FAO should play a major role.
Several interventions suggested that WTO should not concern itself with environmental issues and that market access of fishery products should not be linked to issues such as the use of resource and environmentally friendly fishing practices and financial incentives and subsidies. In relation to trade liberalization and market access it was also pointed out that countries in Asia Pacific had considerably reduced their import duties including those for fishery commodities.
- Impact of Economic Crisis on Export-oriented Fishing Industry in Asia - towards a New Phase of Globalization
Prof. Dr. Masahiro Yamao of Hiroshima University presented the paper. Mr. Yong-Jin Kim, Secretary-General, APRACA chaired the session.
In his presentation, Prof. Yamao discussed the impact of the Asian economic crisis, which commenced in 1997, on fisheries in Southeast Asia with particular emphasis on the export oriented sector. The speaker explained that paper and presentation were based on case studies, which were conducted mainly in Thailand in 1998 and 1999. He highlighted that while the impact of the crisis differed considerably in the various countries in Southeast Asia, some valuable lessons could be learnt from the case of Thailand.
The presentation commenced with an overview of fisheries and fish exports in Thailand in the 90ies and highlighted the rapid growth of exports and structural changes followed by stagnation and restructuring. The impact of the economic crises was then examined in three cases i.e. the production and export of canned tuna, boom and collapse of shrimp exports and the decline of the culture of grouper in Thailand.
Prof. Yamao summarised the findings of his study as follows. As the economic crisis in Asia seriously damaged the national economies, domestic consumption of fisheries products as well as wholesale and retail prices declined. Exports of fish from Thailand to Asian markets also declined. With prices of production inputs such as fuel, imported machinery etc. increasing, the financial position of fish traders and processors deteriorated fast.
The speaker then drew the attention of the workshop participants to the fact that the study brought out considerable differences between export and domestically oriented fisheries and also between different export-oriented fisheries. On the one hand, devaluation of the local currency caused a boom of shrimp and tuna exports to countries outside of Asia. On the other hand, exporters who mainly catered to Japanese and Hong Kong markets were negatively effected by the economic recession in these countries.
Generally, Thai exporters also faced increasing competition from other Asian fish and shrimp exporting countries such as China, Vietnam and others, which have lower costs of labour, and of other production factors. The speaker suggested that this increasing competition might add to the pressure of over-exploitation of fisheries resources and also stimulate processors to focus more strongly on value-added fish products. Concluding his presentation the speaker mentioned that recently, Thailand had recovered some lost ground in the field of low value added products. Prof. Yamao’s paper is attached as Annex III.1.
In the discussion following Prof. Yamao’s presentation, the question was raised whether the case of Thailand’s fishery industry could be seen as an example of the negative effects which globalization can have on a developing country. In response to this question, Prof. Yamao pointed out that the export oriented fishery industry of Thailand was an example for both, positive and negative effects of globalization.
During the years of the boom of its industry which made Thailand the number one fish exporting country in the world, the country took advantage of its relative advantages which included cheap labour, easy availability of finance/capital, infrastructure, expertise, a fast increasing global demand for fishery products as well as market access in Japan, the United States, Europe etc. Through economic development in Thailand resulting in higher wages and increasing costs of production, increasing competition from other countries including China and Vietnam producing at lower cost, through the financial crisis which hit Thailand first and which made servicing of foreign debts by the fishery and other industries much more expensive and negatively effected the availability of credit, as well as through overambitious expansion plans, many advantages over other global and competing players were lost and the fishery export industry declined.
Regarding the increasing cost of labour in the Thai fishery industry, brought out by the study as one of the factors responsible for the decline of the Thai fishery industry, the question was raised whether unemployment which dramatically increased in Thailand as a result of the financial crisis did not help to bring down the cost of labour in the fishery industry. The speaker responded that this had not been the case as those who became unemployed were not willing to work in the fishery industry.
Another factor which contributed to the decline of Thailand’s export oriented fishery industry sector was identified in the discussion as the fact that the export oriented fishery sector was strictly separated from the domestic Thai market in terms of products, quality standards, marketing channels, production facilities etc. and thus could not compensate for declining exports through expanding domestically even though the scope would have been limited at a time when domestic demand also declined.
Interventions of workshop participants suggested that in order to better protect their fisheries sectors from negative influences of changes in export demand and markets as well as regional and global macro-economic conditions, Governments should ensure, through introduction of quality standards and regulations and other measures, that export and domestic fishery products were more compatible and that export oriented and domestic fishery industries were to a greater extend complementary as it had been the case in Thailand.
- Economic and Financial Viability of Marine Capture Fisheries - a Global Comparison
Dr. U. Tietze, FAO, presented the paper. Mr. Yong-Jin Kim, Secretary-General, APRACA, continued as chairperson.
On the outset of his presentation, the speaker pointed out that presently special efforts were being made by national governments and international organizations in connection with the implementation of the Code of Conduct for Responsible Fisheries, to reduce and adjust, where appropriate, the capacity of fishing fleets and to diversify fishing effort away from overexploited fisheries resources to less exploited ones. It was in this context that the Fishery Industries Division of FAO, in cooperation with national fisheries administrations and research institutions had carried out a study between 1995 and 1997 on costs and earnings of the most common fishing craft and gear combinations in selected countries of Asia, Africa, Latin America and Europe.
The findings of the study were summarised as follows. The case studies of fishing units in Latin America, Africa, Europe and Asia suggest that - in most cases and in spite of heavily and sometimes overexploited fisheries resources - marine capture fisheries are still an economically and financially viable undertaking generating sufficient revenue to cover the cost of depreciation as well as the opportunity cost of capital and thus generating sufficient funds for reinvestment as well as employment, income and foreign exchange earnings. In order to strengthen and sustain the economic role of the fisheries sector and to conserve and rehabilitate fisheries resources and coastal environment, a limitation and reduction of fishing effort and conservation and rehabilitation of fisheries resources was urgently needed.
The speaker observed that the number of subsidies for the fisheries sector in developing countries had recently been greatly reduced. At present, subsidies were only available, in some cases, for offshore fishing, artisanal fisheries and fisheries co-operatives and for fishing operations in remote and underdeveloped areas. These subsidies were mainly available in the form of capital subsidies and reduced duty on fuel and even these were in the process of being further reduced.
Attention was also drawn to the fact that the findings of the study suggested a different picture from the one projected in the special chapter on “Marine fisheries and the law of the sea: a decade of change” in the FAO publication “The State of Food and Agriculture 1992” which, based on data from 1989, suggested that the global marine capture fishery industry is incurring considerable losses, including operational ones.
The speaker attributed the differences to the following factors. First, the earlier global SOFA estimate was arrived at through macro economic analysis and interpretation and extrapolation of secondary data while the more recent findings of the studies presented in this report are based on micro economic analysis and primary data collection. Furthermore, the scenario presented in SOFA 1992 was based on calculations which incorporated methodological shortcomings such as the overestimation of the costs of fishing through the assumption of an annual depreciation of 10 percent of the replacement cost of a fishing vessel and related high estimates of the annual cost of maintenance and repairs. When considering the differences between the findings of the studies presented in this report and the estimates of SOFA 1992, it was also noted that the focus of the recent studies was on developing countries in Asia and, to a lesser extent, on developing countries in West Africa, Latin America and certain European countries while the previous estimate was global, including North America, the former USSR and Oceania.
The speaker concluded his presentation by pointing out that the study was presently being updated and expanded to more specifically investigate the role of financial transfers and external costs and benefits.
In the discussion following Dr. Tietze’s presentation, it was generally noted that the findings of the study showing that most marine capture fisheries were economically and financially viable, were quite different from the picture that had been projected in the press in recent years suggesting that marine capture fisheries were globally incurring heavy operational losses and only kept operational by huge Government subsidies. Regarding the methodology of the study it was suggested to include in future also an estimation of the Catch per Unit of Effort (CPUE) for each of the craft and gear combinations studied.
Questions were raised regarding the decline and negative financial returns of small-scale gillnetting in Indonesia shown by the study. The participant from the Directorate-General of Fisheries of Indonesia explained that an important factor contributing to this could be competition from other, more efficient fishing gears i.e. purse seines on the same fishing grounds and overexploitation of certain pelagic resources. Other interventions stated that also elsewhere in Asia, the number and profitability of small-scale gillnetting has declined because of competition from other gears such as trawlers and purse seines and over-exploitation of resources.
Other interventions focussed on how to strengthen the economic performance of fishing industries. The role of proper planning of credit and investment needs under consideration of sustainable levels of resource exploitation and fishing fleet capacities in close cooperation between financial institutions, fishery industries and fisheries administrations was highlighted.
It was also pointed out in the discussion that the economic viability of marine capture fisheries could only be ensured if fishing effort was effectively limited to sustainable levels. In this context the role of TACs (total allowable catch quotas) was discussed and it was stressed that it was important to establish a dialogue and mutual trust between fishing industry and concerned Government authorities when designing, introducing and monitoring fisheries management measures.
Another question raised was whether reduction of fishing effort could lead to a better economic viability of fishing operations and to a long term increase in catches. The question was answered in the affirmative provided that adequate technical and investment support is provided to the fishing industry for the necessary process of adjustment including the diversification of fishing effort and replacement of fishing vessels. It was also suggested to use financial incentives to promote and support the necessary changes.
- The Code of Conduct for Responsible Fisheries: a Contribution to Global Regulations of Fish Trade
Mr. Izzat Feidi, Chief, Fish Utilisation and Marketing Service, FAO presented the paper. The session was chaired by Mr. Benedicto Bayaua, APRACA
In his presentation, Mr. Feidi gave an overview of background and contents of the Code of Conduct for Responsible Fisheries, which had been adopted by the Twenty-eight Session of the FAO Conference in October 1995. The speaker pointed out that the Code was of a voluntary nature and covered all fisheries including aquaculture and related activities such as post-harvest and trade. It sought to ensure that aquatic resources are exploited and utilised responsibly and in a sustainable manner.
Mr. Feidi then highlighted the priority issues for implementation of the Code and explained the FAO strategy for its implementation in collaboration with other international, regional and national bodies including non-governmental organizations. The strategy included three major steps which focussed on international awareness, application and monitoring.
Concluding his presentation, Mr. Feidi highlighted that although the Code of Conduct was voluntary in nature, many of its aspects were based on elements of binding international agreements. Several Governments around the world had already enacted laws and regulations for the responsible management of their fisheries and more and more Governments were in the process of doing the same. This made the Code an important contributor to the sustainable use of fishery resources and also effected and regulated fish trade on a global scale. Mr. Feidi’s the paper is shown in Annex III.2.
In the discussion following Mr. Feidi’s presentation, questions were raised as to how FAO is promoting the practical adoption of the Code of Conduct for Responsible Fisheries. The speaker explained that three main strategies were being followed i.e. enhancement of awareness of the Code among other things through translation and distribution, preparation and dissemination of technical guidelines and adaptation of the Code to local circumstances and conditions.
Other interventions focussed on practical problems relating to the implementation of the Code at the national level. It was also discussed how the article on coastal management could be implemented in co-ordination with concerned agencies and players outside the fisheries sector.
Interventions by participants from the South Pacific drew the attention of the workshop participants to the fact that they had little control over fishing practices in their EEZs as these were mainly exploited by long distance fishing fleets from other countries. In this context, the problem of discarding sharks at sea and only landing shark fins was mentioned which still continued despite international agreements on this issue.
Participants also suggested that FAO should prepare and disseminate case studies on the implementation of the Code at the national level.
- Global Trends in Fishing Technology and their Effect on Fishing Power and Capacity
The paper, prepared by Dr. W. Thiele, Senior Fishery Industry Officer, FAO Rome, was presented by Dr. U. Tietze, FAO. The session was chaired by Dr. Seong K. Park, KMI.
The presentation started with a historical overview of the development of marine capture fisheries and long distance fishing fleets which experienced dramatic changes during the second half of this century when the principle of “Freedom of the Seas” was replaced by the UN Convention of the Law of the Seas and the establishment of Exclusive Economic Zones (EEZs).
The third quarter of the last century was described as a period of technical innovations in vessel and gear design and operation, which gave rise to significant increases of total production and substantial improvement of working conditions of fishers including safety aspects. With increasing production, concerns grew regarding over-exploitation of fisheries resources and the UN Conference on Environment and Development (UNCED) expressed a formal and global concern about the sustainability of the fisheries sector and adopted a programme of action i.e. agenda 21.
The presentation then went on to explain the concept of fishing capacity and attempts to reduce it. Fleet reduction programmes were implemented in many countries and had showed some success. It was also mentioned that recent studies had shown that half of the fishing vessels over 100 GT were older than 20 years and would be scrapped or decommissioned over the next 10 years. This process could lead to a natural reduction of fishing fleet capacity provided the rate of construction of new vessels was limited.
The speaker also highlighted the negative impact on the environment of certain fishing methods and that technological developments aimed earlier to increase catch efficiency were now directed towards fisheries conservation and environmental protection. An overview of the development of the number of fishers and of fishing vessels and gear followed after which the need for research on environmental impact of fishing gear and ongoing initiatives were described.
The presentation concluded by projecting that catch of marine fish couldn’t be significantly increased unless organisms lower in the food chain such as Krill and mesopelagic species are exploited and utilised more extensively.
In the discussion following the presentation, the issue of discarding undesired by-catch at sea was further debated It was pointed out that because of an ever-increasing demand for fish and in the context of globalization, all species caught could find a market either domestically or abroad provided the fish was properly handled and preserved. One of the main issues to be addressed in order to avoid discarding of by-catch at sea was identified as the upgrading of on-board handling, storage and preservation facilities.
Other interventions focussed on fleet reduction programmes. It was pointed out that new vessels with similar technical dimensions were often more catch efficient due to more efficient fishing gear, navigational and fish finding equipment. Questions were also raised and answered regarding the fleet reduction programme of the European Union and how far it has been successful in terms of reduction of tonnage, horsepower and fishing capacity. Other interventions suggested a closer cooperation between fisheries administrations and financial institutions in order to reduce fishing capacity and guide it towards a sustainable level.
- Adjustment of Fishing Fleet Capacity in Korea to Sustainable Resources Exploitation, Programmes and Achievements
Dr. Seong-Geol Hong, KMI, presented the paper. The session was chaired Dr. Seong K. Park, KMI.
Dr. Hong started his presentation by pointing out that it was a lesson from human history that irresponsible fisheries can deplete fisheries resources. He explained that in the case of Korea, the number of fishing vessels began to increase since mid-1970s. Resource-destructive fisheries began to develop along with the increase of fishing vessels. In 1982, the Korean Governments introduced regulations on the limits of the number of fishing permits to control the ever-increasing trend of fishing vessels. In 1987, the Korean Government began to control the total tonnage of each fishing sector.
The speaker concluded that there were two ways to attain a reduction of fishing fleet capacity. One was to let inefficient fishermen exit the market on the basis of market principles, and the other was through buyback of fishing vessel and fishing licenses by the government. As it was not expected that fishermen would leave the sector on a voluntary basis, the Korean Government chose a buyback programme to reduce the fishing fleet. The reduction of fishing capacity was seen as a way of input control through buyback of fishing vessels.
Dr. Hong then explained that the buyback programme of Korea had two objectives. The first one was the conservation of fisheries resources and the second one the enhancement of economic efficiency of the fishery industry. During the period of 1994 to 1998, the Korean government spent 93,644 million Won to scrap 614 fishing vessels. The Korean government’s main target was to reduce the use of resource-destructive fishing methods. The speaker concluded his presentation by informing the participants of the workshop that the Korean Government was planning to spend a further 348,549 Million Won to remove 2, 421 vessels engaged in adjacent fisheries. The paper presented by Dr. Hong is shown in Annex III.3
In the discussion following the presentation, the functioning of the buy-back programme for fishing vessels in Korea was further elaborated on. It was explained that the programme was operated by the Central Government and was based on voluntary participation. Boat owners were compensated according to a valuation of the fishing vessel while crewmembers received a 6-month welfare payment. There were often disputes between boat owners and Government agencies regarding a realistic valuation of the vessel. In response to questions it was pointed out that no information was being collected in what the amount received by the vessel owners was invested in. Fishermen often remained unemployed.
It was also explained that in addition to the buy-back programme, the issue of new fishing licences through local Government authorities had been limited to levels, which were thought to be sustainable. Regarding the financial viability of marine capture fisheries which were shown as greatly overexploited in the paper, it was noted with surprise that many of these fisheries were still financially viable according to the information provided in the paper.
Other interventions related to the question how the Maximum Sustainable Yield (MSY) of the various fisheries involved in the fishing capacity reduction programme was monitored.
- Changes of Credit Support to Fisheries Sectors in Asia in the Context of Structural Adjustment Programmes
Mr. Bishnu P. Shrestha, Managing Director, APRACA Consultancy Services presented the paper. Mr. Moale Vagi, Rural Development Bank of Papua New Guinea, chaired the session. Mr. Shrestha gave an overview of recent changes in the agricultural and fisheries credit scenario in Asia in the context of structural adjustment processes and in response to the financial crisis of 1997 and 1998.
Regarding the sources of credit, Governments and Government agencies still played an important role in providing credit even though their share was declining in the context of deregulation and liberalization of markets. While the share of multi- and bi-lateral development agencies and funds which provided credit through projects had also been declining over the last years, the share of non-governmental organizations and banks which are using their own rather then Government funds for lending was increasing. Fishermen associations, co-operatives as well as informal sources of credit still played an important role.
As far as bank lending for agriculture and fisheries was concerned, Mr. Shrestha observed that many banks had changed from retail banking to wholesale banking and were providing credit to groups and associations rather than to individual borrowers. This reduced transaction costs and greatly facilitated the access of small-scale farmers and fisherfolk to rural credit. The presentation went on to describe the features of micro-finance programmes.
A description of the changes, which had occurred with regard to the terms of lending, followed. These included interest rates, which had been deregulated in most countries and were no longer subsidised. The speaker pointed out that lending at market rates and paying market rates on deposits enabled banks to cater more efficiently to the needs of their clients including those in the small-scale and medium-scale sector. The presentation concluded with an overview of changes of the role of central banks in rural credit.
Following Mr. Shrestha’s presentation, the discussion focussed on whether deregulation of economies and financial sectors in Asia had a positive or negative impact on the flow of credit to the fisheries sector in Asia. Most interventions suggested that the flow of credit to fisheries in Asia had quantitatively increased and qualitatively improved as a result of deregulation. Attention was also drawn to the fact that banks acted less as wholesale and more as retail lenders. They acquired their own expertise in the field of fisheries credit, among other things by employing technical officers with a background in fisheries.
Other interventions mentioned that as a result of more flexible and demand oriented lending policies and procedures, loan recovery in the fisheries sector had improved in many countries. As far as interest rates are concerned, market oriented interest rates were used now rather than subsidised interest rates as in the past.
Among new focuses and innovations in rural credit, infrastructure development funds were mentioned where banks provided loans to local Governments and organizations for improvement of rural infrastructure. Micro-finance schemes also were more widely used to cater to the credit needs of rural communities including fishing communities.
- The Role of Subsidies, Fiscal and Credit Policies in Fisheries and Agriculture and Livestock Development in Korea
Two papers and presentations i.e. the first one dealing with subsidies and fiscal policies and the second one with credit policies covered the topic. Dr. Seong K. Park, KMI, presented the first paper and the second paper was presented by Prof. Dr. Young-Chul Kim, Kon-Kuk University. Mr. Moale Vagi, Rural Development Bank of Papua New Guinea, chaired the session.
In the first presentation, Dr. Seong K. Park, gave an overview of Government financial transfers to the fisheries sector in the Republic of Korea. Following WTO and OECD classifications, the speaker distinguished between direct transfers from government budget, transfers in the form of market price support, cost reducing transfers and general services including infrastructure support, fisheries administration, management, research and development. In quantitative and qualitative terms, the total value of financial transfers to the fisheries sector in the Republic of Korea in 1997 amounted to 7.04% of the value of the total fisheries production in the same year. If general services are not taken into consideration, the ratio of Government financial transfers to the value of fishery production was 2.3%.
Dr. Park’s presentation continued with an overview of fisheries resources, fishing fleet capacity and efforts of the Government to reduce fishing capacity. The speaker pointed out that nowadays many fishery experts and international fishery organizations perceive that ineffective management is a fundamental obstacle against fisheries sustainability, and that this problem has not yet been dealt with successfully or at all in the vast majority of countries, including most of the large fishing nations.
Coming back to the role of economic incentives, Dr. Park observed that even though there were only few systematic investigations of the relationship between fisheries management and government-funded and -directed economic incentives in the Korean fisheries sector, there existed a wide social consensus that economic incentive policies have to be redirected towards programmes aimed at reducing fishing effort or limiting production expansion. The role of economic incentive policies associated with government financial transfers in Korea would be gradually redirected towards non-actionable subsidy programmes, which are implemented in support of a newly developed strategic fishery plan.
The speaker explained that the strategic fishery plan had been prepared to provide a framework for moving forward on such major fishery priorities as environment-friendly fisheries development, balanced world-class science and technology promotion, fishing community development, and new market arrangements. The broad objective of the Korean fisheries strategy was to secure maximum social, economic, scientific and sovereignty benefits for Koreans from Korea’s marine living resources. The paper presented by Dr. Park is shown in Annex III.4.
In the second presentation on the topic, Prof. Young-Chul Kim gave an overview of credit policies and programmes for the fisheries sector in Korea. As far as institutional credit is concerned, the speaker concluded that it still played a very significant role in Korean fisheries. Interest rates in Government sponsored credit programmes were subsidized and the speaker feared that this adversely affected the savings market. Also, subsidised interest rates were thought to favour large fishing households rather than small ones mainly because of the interest-elastic nature of large fishing household's demand for credit. A higher interest rate policy, however, was applied in the mutual financing programmes of fishery cooperatives in Korea.
The speaker continued his presentation by elaborating on credit and savings mobilisation programmes of fishery cooperatives in Korea. He explained that the main concerns were to mobilize funds for lending, to increase efficiency of credit use at household level and to improve loan repayment. As far as the first aspect was concerned, Prof. Kim pointed out that fishery cooperatives in Korea have been able to gradually increase deposits and savings and build up their own funds for lending rather than relying on funding from Government, central bank and foreign donors. In a comparison of average annual growth rate of deposits and loans, the speaker showed that deposit growth was particularly high at the National Federation of Fisheries Cooperatives.
The presentation continued with an overview of factors affecting fisherman’s savings, of sources of fishery households borrowing, of interest rate policies and concluded with a discussion of the factors affecting fisherman’s repayment performance.
The discussion following the presentations focussed on the question whether the reduction of cost reducing subsidies and financial transfers to marine capture fisheries would ultimately lead to a better supply of fish. The speaker pointed out that this should be expected, as the recovery of over-fished stocks would ultimately result in a better yield.
Other interventions related to the role of fishermen co-operatives in Korea including their role in providing credit to members and the factors influencing recovery of loans. It was explained that by-laws and regulations effecting the functioning of co-operatives in Korea had been changed, with the objective to change co-operatives from “top down” to “bottom up” organizations. The transformation, however, proceeded slowly as the members were still used to the old way of functioning.
The question was raised whether foreign banks, which have recently started to operate in Korea, were effecting the role of the co-operative sector in the field of credit. In response to this question it was pointed out that foreign banks were presently buying Korean banks which had gone bankrupt and that they were expected to play a role in domestic lending, too. It was also pointed out that fisheries co-operatives in Korea were financially sound and did not need to be afraid of competition.
Regarding past subsidised credit operations of fisheries corporations in Korea, the question was asked what their economic impact on the small-scale fisheries sector in Korea had been. The speaker explained that co-operative credit had helped the small-scale fisheries sector to free itself from the influence of local moneylenders and indebtedness and operate in an economically viable manner. It had thus improved the well being of the people employed in the sector and that of their families.
Another issue, which was raised in the discussion, was unemployment generated through reduction of fishing capacity and buy-back programmes. The speaker pointed out that in addition to those who become unemployed as a result of fishing fleet reduction, other members of fishing communities who found employment in industries and services and also became unemployed during the economic crisis. Once unemployed they returned to their villages and this was creating problems for which no solutions had been found yet.
As far the management of fisheries resources was concerned it was pointed out that a combination of reduction and limitation of fishing licences in combination with buy-back programmes was seen as appropriate strategy for Korea. Total Allowable Catch Quota’s (TACs) were not seen as appropriate management instrument considering Korea’s multi-species fisheries.
- Coastal Area and Fisheries Management and Environmental Conservation in Korea
Dr. Jihyun Lee, KMI, presented the paper. Dr. Sun-Pyo Kim, KMI, chaired the session.
In her presentation, Dr. Lee made reference to the Code of Conduct for Responsible Fisheries, which was adopted by the Twenty-eighth session of the FAO Conference in 1995. She emphasised the importance of integrating fisheries into coastal area management and that the code recognised the essential linkages between marine fisheries and coastal areas management.
The speaker went on to explain that since mid-1980s, the Korean Government had made a series of efforts for developing a national mechanism of integrated coastal management. This culminated in the Coastal Management Act being passed in February 1999. The Coastal Management Act enabled the Ministry of Maritime Affairs and Fisheries (MOMAF) to play the leading role in co-ordinating and harmonising various coastal activities, including coastal land development, fisheries and environment conservation, among other things through the formulation of an Integrated Coastal Management Plan.
The presentation continued with an explanation of the institutional framework and policy measures for coastal management in Korea including such issues as the legal framework, the integration mechanism, the mechanism of coastal resources allocation, cooperation and coordination among agencies, monitoring and research and risk assessment.
In the discussion following the presentation Dr. Lee, it was observed that while fisheries management was quite advanced in the Republic of Korea, coastal area management was presently more in the planning stage and had only commenced in 1994. It was explained that initially the work was carried out under the Ministry of Science while it now falls under the jurisdiction of the Prime Minister’s Office.
Responding to questions from participants, the speaker pointed out, that presently, there was no master plan nor were there any pilot projects at the regional/local level and that the on-going work was process-oriented and mainly focussing on planning. Other interventions discussed how conflicts between different sectors and stakeholders regarding the use of coastal areas were being resolved.
Interventions from the Philippines and India informed on the state of development of coastal area management programmes in those countries. In the Philippines, in the course of decentralisation, legislation had been passed and local authorities had been established at various levels i.e. region, province, municipality to take care of management and conservation of natural resources and environment in coastal areas. In India, a coastal management plan was just being discussed in parliament.
It was generally agreed that in addition to passing legislation and preparing integrated coastal management plans, much more efforts in the field of public awareness and education were to be made.
- Present and Future Role of INFOFISH with Special Reference to Globalization in Fisheries in Asia
The paper was presented by Dr. K.P.P. Nambiar. The session was chaired by Mr. Izzat Feidi, FAO.
Dr. Nambiar began his presentation with an overview of the origin of INFOFISH as an FAO executed project. He then turned to INFOFISH’s present role as intergovernmental organization and gave an overview of its activities and publications. Dr. Nambiar also summarised the impact of INFOFISH on Asian Fisheries in the field of trade promotion, market information and publications, provision of technical advisory services as well as specialised services.
The second part of Dr. Nambiar’s presentation consisted of an overview of Asian fisheries and international trade. The speaker then focussed on the challenges posed by globalization and highlighted emerging opportunities. The last part of the presentation drew attention to sustainability aspects including the questions of excess capacity and subsidies.
Concluding his presentation, Dr. Nambiar stressed that INFOFISH would continue its present activities in Asia and would be expected to play an even more active role in assisting countries as a result of globalization. A special focus would be placed on technology transfer, manpower development and investment promotion for the fisheries sector in the coming years. The paper presented by Dr. Nambiar is shown in Annex III.5
In the discussion following the presentation of Dr. Nambiar, questions were asked and answered regarding present and future activities of INFOFISH and regarding changes in the membership of INFOFISH
With reference to Dr. Nambiar’s analysis of Asian fisheries and recent developments, interventions where made regarding the excellent performance of China in global trade of fishery products even though China was not a member of the WTO. The question was raised whether membership of WTO was really a pre-requisite for a successful participation in global trade. Other interventions focussed on the recent decline of fish production in North Korea.
- Japan
Prof. Dr. Masahiro Yamao, Hiroshima University, presented the country paper on Japan. Mr. Izzat Feidi, FAO, chaired the session.
Prof. Yamao commenced his presentation with an overview of Japan’s Marine Fisheries. According to latest figures, there are 278 200 fishers in Japan out of which 237170 are employed in coastal fisheries and 41 030 in distant water fisheries. The number of fishing vessels was given as 168 084. As far as production is concerned, Prof. Yamao explained that the total fisheries production of Japan stood at 7.41 metric tons, valued at 2.22 trillion yen.
The marine production accounted for 98% of the fishery production i.e. 7.26 tons valued at 2.67 trillion yen out of which 3.34 MT valued at 0.54 trillion yen comes from offshore operations, 1.78 MT. valued at 0.66 trillion yen from coastal fishing, 1.27 MT. valued at 0.6 trillion yen from culture and 0.86 MT. valued at 0.26 trillion yen is contributed by the distant water fishing fleet. As far as changes in the volume of catch by type of fishery over the last two decades are concerned, the speaker explained that catches in distant water and offshore fisheries had peaked in 1987/88 and since then declined to levels of the early seventies. Coastal fisheries production and marine aquaculture had reached its peak at the end of the eighties and since then remained at the same level.
The speaker continued with an overview of supply and demand of fishery products in Japan, changes in the types of fishery products and changes in import patterns.
He highlighted the fact the demand by far exceeded domestic supplies and that in 1998, imports of fishery products, in terms of weight, amounted to 88% of the domestic production. As far as the sources of imports are concerned, imports from the USA, Korea and Thailand had declined and those from China, Indonesia and the Russian Federation had increased.
With reference to the latest report on the survey of the fishery economy of the Ministry of Agriculture, Forestry and Fisheries of Japan, the speaker then went on to analyse trends in main economic indicators. Regarding revenue of capture fisheries in terms of income by tonnage of coastal fishing vessels, Prof. Yamao observed that between 1992 and 1996, income had declined for three out of four categories of coastal vessels. As far as income of fishery households is concerned, fishery income and wage income stagnated between 1989 and 1996 while other income increased. With regard to the profitability of small to medium fishery enterprises in Japan, the speaker explained that the situation had slightly deteriorated since 1990 but roughly remained the same between 1992 and 1996 with 54% of enterprises making a surplus and 46% making a loss.
The last part of Prof. Yamao’s presentation was devoted to the explanation of the concept of the so-called new project for promotion of comprehensive restructuring of core fisheries in Japan. The reforms, which are to be undertaken, can be divided in conventional structural reforms and new structural reforms. Prof. Yamao explained that the former ones would be implemented in all on-going fisheries and aim at rehabilitation of depleted fishery resources, strengthening of fisheries management bodies and restructuring of fishery production. The latter ones will only be implemented in selected mainly large-scale fisheries and aim at downsizing and restructuring fisheries enterprises and increasing their economic efficiency and productivity.
In the discussion following the presentation of Prof. Yamao, attention was drawn to the fact that employment in fisheries in Japan was declining, the average age of fishermen increasing and fishing as an occupation was becoming less and less attractive. The share of imports of fish products compared to domestic supplies was expected to increase further in future.
In the context of above observation, recent changes in the role of fisheries co-operatives in the management and exploitation of fisheries resources in Japan were discussed in great detail. It was mentioned that the membership of fishermen co-operatives in Japan, which had exclusive fishing rights in coastal waters, was declining and that the average age of members was increasing. It was suggested that if this trend was continuing coastal fisheries resources might not be fully exploited in future. An intervention from Korea suggested that fishermen co-operatives in Korea were undergoing similar changes as fisheries co-operatives in Japan.
It was also observed that while in the past, fishing effort has often exceeded the maximum sustainable yield, fishing effort in coastal waters was presently declining because of buy-back programmes of fishing boats, introduction of Total Allowable Catch quotas and the declining number of coastal fishermen.
In response to a question whether their were any ideas in Japan as to what could be done to ensure that coastal fisheries resources were fully exploited in the future, the speaker informed that there were proposals to open up the present fishing rights system and to promote so called Core Fisheries and also to give fishing rights to other countries.
Other interventions debated whether TACs were an appropriate management tool in multi-species fisheries. While in Korea it was felt that they might not work, Japanese experiences suggest that they might work if a second species is included in the quota.
As far as the role of fisheries co-operatives in aquaculture is concerned it was explained that they were quite successful.
- Indonesia
Mr. Ali Supardan, Directorate-General of Fisheries of Indonesia presented the paper and Dr. K.P.P. Nambiar, INFOFISH, chaired the session.
The presentation commenced with an overview of Indonesian fisheries. This included fishery resources and their level of exploitation, fishery production, utilisation, marketing and trade. A review of changes in fisheries policies and regulations and of policies and programmes related to the supply of credit to the fisheries sector followed. The speaker highlighted that with a view to stimulate fisheries development and to enhance the competitive capacity of Indonesian fish and fishery products in the global market, the Government of Indonesia had launched a series of deregulation packages. Mr. Supardan then assessed the effect of above changes on fisheries development in Indonesia.
Regarding marine fisheries, the speaker observed that fishery production had increased due to increased productivity and an increasing number of fishing vessel. As importation of fishing vessels had been liberalised, the Indonesian fishing fleet was now increasingly exploiting resources in the EEZ and replacing foreign fishing vessels for which Mr. Supardan did not see any more need in the next Millennium. He also drew attention to the improvement of the so-called fishing lane rules, which were meant to protect coastal fishermen and to force larger vessels to fish offshore.
Other positive effects of deregulation and structural changes in Indonesia on the competitive competence of fishery industries in Indonesia highlighted by the speaker included value-added fishery products, the new fish inspection and quality control system which had been accepted by the European Union and Canada while good progress had been made with USA and Australia.
Concluding his presentation, Mr. Supardan highlighted that in Indonesia, the fisheries sector was seen as the prime mover to overcome the still on-going economic crisis. The newly formulated so called Government Policy for Reformation Development set up in November 1998 explicitly stipulated the important role of fisheries in overcoming the economic crisis, and a special crash programme had been launched for boosting the export of fisheries commodities in Indonesia.
In an attempt to accelerate growth it has been estimated that the fisheries sector needed RP 34640 billion in investments out of which RP 30 000 billion were expected to be provided by the private sector and RP 4640 billion by the Government. The speaker noted that as far as the Government contribution was concerned, the fisheries sector needed credit facilities from banks or other institutions, which would match the special business characteristics of fisheries. Unfortunately, no such facilities were presently available in Indonesia. The paper on Indonesia is shown in Annex III.6.
In the discussion following the presentation, participants expressed their appreciation of the rapid increase of the value of Indonesia’s fisheries production throughout the recent economic and financial crisis. In response to questions, it was further explained how Indonesia’s fisheries sector has benefited from globalization and liberalization of imports and exports through reduced duty on imports, increased market access within the Asean Free Trade Area and overseas markets. Fish exports also benefited from the devaluation of the Indonesian currency.
Other interventions focussed on the supply of credit to the fishery industry to meet the needs for working capital and capital investments. It was explained that after the deregulation of financial markets and the banking sector in Indonesia, there were no more special lines of credit for the fisheries sector available after 1990 and the credit needs of the fisheries sector were looked after by commercial banks, agricultural banks and informal lenders.
- Philippines
Ms. Glenda A. Biboso, Development Bank of the Philippines, presented the paper. Dr. K.P.P. Nambiar, INFOFISH, chaired the session
Ms. Bibosa started her presentation with an overview of the fisheries sector of the Philippines and of the state of fisheries resources and the coastal environment. She then went on to inform on fisheries and coastal management regulations in the Philippines and elaborated on the implementation of the Philippine Fisheries Code of 1998 and of the “Agriculture for the Masses”(AMFP) fisheries programme.
The speaker highlighted that the fisheries code provided for a much stronger and closer co-ordination of the activities of the Bureau of Fisheries and Aquatic Resources (BFAR) with those of other agencies i.e. local government units, law enforcement agencies, financial institutions, training and extension agencies which are concerned with fisheries development and the management and conservation of fisheries resources and coastal environment. Ms. Bibosa described the AMFP as the new fisheries master plan and core programme for the rehabilitation and development of fishery resources and coastal environment. Lead agencies involved in implementation were BFAR and the Department of Agriculture (DA).
The speaker then went on to describe the policy and other changes in the fisheries of the Philippines which have been introduced to improve conservation and management of fisheries resources and to strengthen the competitive position of the fisheries sector in the context of globalization. The main windows, which the Government has opened to globalization were identified as liberalization of imports and exports of fish and fishery products, liberalization of technology transfer from other countries and liberalization of joint ventures in fisheries where Filipinos are majority shareholders.
The results of these measures included improved yield, better access to institutional credit and improved product quality of aquaculture for both, domestic and export markets. Better management and rehabilitation of marine fisheries resources through the new policies mentioned above, together with more efficient and resource friendly fishing methods as well as handling and processing facilities and methods were expected to eventually lead to higher yields, better sustainability of capture fisheries and fishery products of higher quality and value.
Ms. Biboso also observed that liberalization and deregulation in the fisheries sector of the Philippines had been initiated by Government perhaps at a time when the sector or at least certain sub-sectors was not yet prepared for it. This was seen as reason why the small-scale sector in rural areas had not benefited yet from globalization but rather been negatively effected, among other things, through price competition by imports of cheap fish. Entrepreneurs in the medium to large-scale sector, however, who had managed to upgrade their production technology, product quality and access now markets had benefited from globalization.
The presentation was concluded with recommendations for future policy directives, which aim at providing support to the fisheries sector in order to enhance its competitive advantages.
The discussion following the presentation of Ms. Biboso, focussed on fisheries resources management and environmental conservation through the newly established Fisheries and Aquaculture Resources Management Councils at the various levels i.e. municipality, province and region. It was observed that in spite of a comprehensive legal and institutional framework, destructive fishing methods such as poisoning of fish and use of dynamite were still widely used. The speaker explained that more efforts needed to be made in the field of public awareness creation and education and that it was particularly difficult in countries such as the Philippines which consisted of a large number of islands to control and stop illegal fishing operations.
Other issues discussed were the regulation and monitoring of fishing effort and more particularly zoning of fishing grounds and marking of fishing vessels. Responding to queries regarding the supply of institutional credit, it was explained that demand exceeded supply by far.
- India
The paper was presented by Mr. M.A. Upare, National Bank for Agriculture and Rural Development The session was chaired by Dr. K.P.P. Nambiar, INFOFISH
Mr. Upare commenced his presentation with an overview over India’s fisheries sector including fisheries resources, their present level of exploitation and future potential, inland fisheries, marine fisheries, mariculture, brackishwater fisheries, exports, processing facilities, infrastructure and institutional credit facilities. The speaker elaborated on the role of the National Bank for Agriculture and Rural Development (NABARD) which was the most important institution in the country that provided credit to the fisheries sector. NABARD's main role was to refinance commercial and agricultural banks. The institution also assisted in the preparation and appraisal of projects, banking plans and in the monitoring of their implementation.
The speaker then described changes in the fisheries sector, which had occurred as results of globalization in the fields of shrimp aquaculture, inland fisheries, mariculture and fish processing and marketing. This was followed by a description of changes of laws and regulations which included land reforms, leasing policy changes for inland water bodies, judicial directives for aquaculture and related to the ban on import of shrimp by the USA. A detailed description of changes of fisheries credit policies and programmes concluded the overview of the changes and developments, which have taken place in India.
The presentation concluded with an assessment of the effects of these changes on different segments of the fisheries sector. Mr. Upare observed that in capture fisheries and aquaculture, liberalization and deregulation had resulted in considerable initial production increases. Because of the absence of proper consideration of environmental and sustainability concerns and related regulations, the initial gains could not be sustained, however.
In the case of large-scale commercial marine fishing the speaker noted that this had been introduced in India mainly through joint ventures involving foreign fishing vessels.
Their numbers had increased rapidly over a relatively short period after Government liberalised policies and regulations concerning joint ventures. As no proper management measures and regulations and no system for monitoring them had been put in place, many of these fishing vessels started fishing in inshore areas and this led to conflicts with coastal fisheries. Following the recommendations of the so-called Murari Committee, joint venture agreements are presently not being renewed and no new ones are being issued. In order to utilise off-shore resources, the committee had recommended the modernisation of traditional fishing vessels and introduction of resource specific vessels of about 20 meter overall length but not much has happened.
The small-scale artisanal fisheries sector had expanded rapidly with liberal credit and subsidy support from Government but it had now been recognised that there was excess capacity in the traditional sector and credit and subsidy support programmes for the acquisition of traditional fishing boats have been stopped.
Also in the case of shrimp culture, a rapid development over a relatively short period supported through liberalization of joint venture policies, land reforms and changes of rules and regulations had taken place. While this development initially resulted in fast increasing export earnings and profits, in the absence of environmental and other regulations, it eventually resulted in the fast spread of diseases in a negative impact on the environment and in the near collapse of the industry. Following a Supreme Court ruling no new licenses are being issued for the time being and an aquaculture authority was set up to regulate and monitor future aquaculture activities and integrate them with coastal management.
A sustained positive impact of the changes, which took place in India in the context of globalization, was observed in the fish processing and marketing sector and particularly in the export oriented sector. Mr. Upare particularly highlighted the increasing diversity of value-added products and the overall increase of the value of exports. The speaker concluded his presentation with recommendations on how to strengthen management, conservation and development of fisheries in India and the competitive position of the fisheries sector in the global context.
The discussion following the presentation by Mr. Upare, focussed on various aspects of the functioning of the National Bank for Agriculture and Rural Development (NABARD) in India. The speaker explained that the refinance provided by NABARD to agricultural development and commercial banks in India was provided in a demand oriented manner and that NABARD paid interest on the funds it received from the Reserve Bank of India.
It was also pointed out that the rapid growth of the Indian fishing industry including the export oriented sector had been greatly helped by NABARD which had not only provided refinance but also assisted in the preparation of technical and financial feasibility studies, investment programmes, banking plans etc.
Questions were raised on the viability of fish culture in paddy fields in India and the speaker explained that there was a serious problem with insecticides in India.
- Bangladesh
The paper was presented by Mr. Ansar Uddin Ahmad, Bangladesh Bank. The session was chaired by Mr. Benedicto Bayaua, APRACA.
Mr. Ahmed gave an overview of the fisheries sector of Bangladesh which consisted of inland open water capture fisheries, closed water culture fisheries, coastal aquaculture and marine fisheries. He highlighted the growth which had taken place in inland aquaculture, coastal aquaculture and inland open water capture fisheries and stressed that there was still potential for further sustainable growth and that environmental and resource sustainability concerns needed to be properly addressed also in future. The speaker then summarised the development of the fish processing industry in Bangladesh and noted the rapidly increasing export earnings of this sector, which made a very significant contribution to the overall, export earnings of the country.
Regarding globalization, deregulation and liberalization and their impact on the fishery industry in Bangladesh, the speaker highlighted that these had a very positive effect which could be seen in the steady increase of the revenue generated by fisheries in Bangladesh. He also stressed that environmental and resource sustainability concerns were seriously addressed through introduction and monitoring of relevant regulations and rules.
The presentation went on with an assessment of credit and financing arrangements and constraints and Mr. Ahmed noted considerable improvements in credit supply to the fishery industry in Bangladesh, which he attributed to the successful liberalization of financial markets in his country. A description of the on-going fisheries development programmes, which form part of the Fifth Five-Year Plan (1997-2002), followed and the speaker highlighted the major programme areas. Mr. Ahmed also gave an overview of fisheries development policy and strategy, foreign investments in the fisheries sector and fisheries rules and regulations. Mr. Ahmed concluded his presentation with specific recommendations as to how to how to ensure short-term and long-term growth and development of the fishery industry in Bangladesh.
In the discussion following the presentation of Mr. Ansar Uddin Ahmad, it was observed that the fishery industry of Bangladesh had greatly benefitted from globalization, liberalization and deregulation and the value of its fisheries production had grown considerably.
In response to questions what effect deregulation of financial services had on interest rates in lending for agriculture and fisheries, the speaker explained that interest rates had actually come down in accordance with the rates of return on investments which prevailed in agriculture and fisheries in Bangladesh. It was also observed that agricultural and fisheries credit in Bangladesh had become more efficient and demand oriented as a result of deregulation and liberalization of financial markets.
Questions were asked how banks in Bangladesh had acquired the expertise to cater more effectively to the fisheries sector and the speaker responded that the acquisition of expertise was mainly done through the employment of technical fisheries staff by commercial banks, agricultural banks, the central banks and by NGOs which were providing credit to the fisheries sector.
Other questions were asked regarding the share of fisheries credit in Bangladesh and it was explained that in Bangladesh, 20% of all institutional credit went to the agricultural sector and approximately 10% of the agricultural credit went to the fisheries sector.
The issue of the impact of annual flooding and cyclones on fisheries in Bangladesh was also raised and it was pointed out that while tropical storms could destroy fish ponds, fishing vessels and infrastructure, flooding also had beneficial aspects such as the fertilisation of agricultural lands, support of floodplain fisheries, spawning grounds etc. Rehabilitation programmes were frequently needed in Bangladesh as well as re-scheduling of loans. Responding to questions whether insurance programmes were available for the fisheries sector in Bangladesh, the speaker replied that insurance cover could not be claimed, as natural calamities could not be insured in Bangladesh.
Other interventions raised the issue of the per capita fish consumption in Bangladesh and it was explained that due to rapid population growth the per capita consumption had come down. In response to questions whether increasing exports of fishery products were not responsible for declining per capita consumption, it was replied that this was most likely not the case as mainly shrimp and high value species were exported which traditionally only had a small domestic market while low value species such as sardines and mackerels were now imported into Bangladesh where they were meeting with considerable demand.
- Egypt
The paper was presented by Dr. Ashraf Sabet, Arab Academy of Science and Technology, Alexandria. The session was chaired by Mr. Benedicto Bayaua, APRACA
Dr. Sabet commenced his presentation with an overview of the economic role of the fishery sector in Egypt, which contributed 1.6% to the Gross Domestic Product of the country. With regard to globalization and liberalization, the speaker pointed out that Egypt was moving under its open door policy to expand its private sector.
The presentation continued with a description of Egypt’s fisheries sector, which was divided in the Mediterranean and the Red Sea fisheries. When compared to inland, the contribution of marine fisheries to the total production was relatively small i.e. 22%. Domestic demand exceeded supplies and 25 - 30% of all fish consumed in Egypt was imported. It consisted mainly of low priced fish such as mackerel and scad. The speaker pointed out that Egypt also exported fish, which consisted mainly of high value species such as groupers, sea bream, sea bass and others.
Concluding his presentation, Dr. Sabet stressed that Egypt was fully committed to globalization, deregulation and liberalization and that the fisheries sector was going to benefit. The speaker also mentioned that the most pressing problem was the overexploitation of fisheries resources and that adequate regulations and measures needed to be put in place to rehabilitate these resources and to reduce fishing effort to sustainable levels.
The discussion following the presentation focussed on the serious decline of fisheries resources in the Mediterranean.
- Fiji
The paper was presented by Mr. Malakai Tuiloa, Ministry of Agriculture, Fisheries and Forestry. The session was chaired by Mr. Benedicto Bayaua, APRACA
Mr. Tuiloa gave an overview of Fiji’s fisheries sector and highlighted the changes which have occurred over the last few years as well as achievements. Regarding the latter, the speaker drew attention to the fisheries programme under the newly introduced Commodity Development Framework of the Government which offered various economic incentives, technical assistance, development of infrastructure etc. meant to promote the development of private sector domestic industries.
With the support of this programme, the domestic longline fishery for tuna had almost doubled its production in the EEZ of Fiji over the last four years. Mr. Tuiloa saw scope for further increasing the production and supplying skipjack and tunalike species to the Pacific Fishing Company, among other things through introduction of more fishing vessels.
Other development opportunities, which were supported by the Government of Fiji through provision of economic incentives, infrastructure and technical assistance included the promotion of export of fresh tuna for the Japanese Sashimi market as well as the fishery for deepwater snappers. As far as the artisanal fisheries sector is concerned, the speaker noted a decline in the number of licenses and in quantity and value of the total production.
The presentation then continued with a description of Government support to the fishing industry which included the development and implementation of a new tuna management plan, development of onshore infrastructure facilities, the introduction of newly designed fishing vessels and the provision of economic incentives consisting of duty exemptions, tariff concessions, export incentives in the form of income tax reductions, accelerated depreciation allowances and other measures.
The speaker then gave an overview of the deregulation policy of the Government of Fiji which was introduced in 1997 and assessed its impact on the fisheries sector. Among other things, Mr. Tuiloa stressed that liberalization of trade and imports of fisheries products had a negative impact on the domestic small-scale fisheries sector as it increased competition and put pressure on fish prices thereby making it difficult for local producers to cover their cost of operation. Concluding his presentation, the speaker suggested to review some of the present legislation which has been passed in the context of deregulation and put in place policies and measures to protect local fisheries industries until they are strong enough to compete in global markets.
In the discussion following the presentation of Mr. Tuiloa, a specific problem of fishery industries in Small Island Developing States was highlighted i.e. the fact that in the context of globalization and liberalization of trade, cheap imports could enter the country and compete with the domestic fishery sector while this sector found it difficult to compete in export markets because of small-scale of operation, lack of experience and expertise and lack of finance and credit to meet its working capital and capital investment requirements. The speaker requested FAO, APRACA and INFOFISH to organise a workshop in Fiji, which would provide advice on these issues.
In connection with above it was considered whether the increase of import duties might be a suitable measure to protect the local fishery industry. An intervention suggested that while this case could be certainly argued it might not be advisable to increase import duties for fishery products as the preferential treatment for sugar in Fiji might fall in the next WTO round and this would not go well with the establishment of new import barriers.
Other interventions focussed on the traditional fishing rights system in Fiji and other countries in the South Pacific where coastal fishing communities were owners of the fisheries resources in coastal waters. It was pointed out that they needed to be involved if these resources were to be developed for exports.
- Papua New Guinea
The paper was presented by Mr. Moale Vagi, Rural Development Bank of Papua New Guinea. Mr. Benedicto Bayaua, APRACA, chaired the session
Mr. Vagi commenced his presentation with an overview the marine fisheries sector of Papua New Guinea. He highlighted that subsistence fisheries are the most important component of PNG’s domestic fishery industry both in terms of value and volume. Prawn fishery was identified as the most valuable commercial fishery. As far as the level of fisheries resources in PNG is concerned, the speaker assessed most resources including coastal fisheries resources as underexploited. It was also mentioned that most fisheries development projects, including donor-aided projects, had been unsuccessful because of insurmountable social, economic and technical barriers.
The speaker then described changes in laws and regulations, which effect the fisheries sector, and the organizations and agencies dealing with fisheries in PNG and maintaining contact with regional and international fisheries bodies. This was followed with an overview of credit facilities for the fisheries sector. Regarding development prospects and constraints of the fisheries sector in PNG, Mr. Vagi suggested there was scope for expansion of both offshore and coastal fisheries in PNG as well as for the development of local markets through improved distribution, better use of by-catch, especially from tuna fishing and value-added processing.
As regards offshore tuna fisheries, Government placed priority on domestication of the industry and was attempting to develop domestic fleets and processing facilities. Constraints to domestication were identified as lack of entrepreneurial capital and skills and lack of a conducive fiscal and policy environment.
The discussion following the presentation of Mr. Vagi focussed on the sudden increase of exports of fishery products from Papua New Guinea in 1998. It was noted that this increase had taken place without any increase in the number of fishing boats and in the supply of credit to the sector. As a possible explanation for the sudden increase in exports, the activities of a foreign fishing fleet in the waters of Papua New Guinea were mentioned whose catch might have been exported from Papua New Guinea. As in the case of Fiji, it was observed that no viable export fishery industry had developed yet in Papua New Guinea
The afternoon of the second last day of the workshop was devoted to working group sessions. The working groups were preceded by a plenary session during which the secretariat of the workshop presented draft terms of reference for three working groups, which were then discussed and finalised. This was followed by working group sessions, which continued throughout afternoon and early evening. The findings of each working group were presented, discussed, amended and adopted in plenary on the final day of the workshop.
The topics discussed in the three working groups were the following:
The conclusions and recommendations of the workshop as adopted in plenary can be summarised as follows.
The findings and recommendations of the Workshop suggest that many countries in Asia and the Pacific benefited and expect to continue to benefit from globalization and deregulation. These benefits include improved quality and better access of their fishery products to markets in other countries within and outside of Asia and the Pacific, increased export earnings, better exchange of technology, increased productivity and efficiency and better supply of fishery products for local populations through liberalization of imports of fishery products.
Experience also suggests that above benefits can only be realized, if Governments introduce appropriate policies and measures to properly manage, conserve and rehabilitate fisheries resources and coastal environment. Otherwise, globalization might encourage the overexploitation of natural resources, cause damage to the coastal environment and lead to social conflicts.
In this context, the practical adoption of the Code of Conduct for Responsible Fisheries at the national level was considered to be of utmost importance and particularly the enhancement of the awareness of the Code through translation and distribution and through preparation and dissemination of technical guidelines. FAO was also requested to assist in the preparation and dissemination of case studies on the implementation of the Code at the national level.
It had also been realized by many developing countries that compliance with existing agreements had turned out to be rather difficult and costly due to financial requirements and manpower needs. Further assistance from bi- and multilateral sources was essential for timely and effective implementation of the agreements.
Negative effects of globalization and deregulation identified in the Workshop included increased competition for the small-scale domestic fisheries sector mainly through import of low priced fish products. It was felt that special measures are needed to protect and strengthen this sector, which include technical assistance, training and investment support as well as possibly fiscal measures and economic incentives.
It was also observed that globalization can negatively effect food security, for example if exports of fishery commodities are not compensated for by appropriately priced imports. In order to avoid critical loss of food security, appropriate measures should be put in place whenever there is a danger that international demand could reduce the availability of fishery products for local populations.
Regarding tariff reductions, mention was made of the Early Voluntary Sectoral Liberalization programme of APEC, which includes fishery products. It was recommended that countries should evaluate their possible obligations under this scheme, which would refer not only to tariff rates but also to standards and non-tariff barriers. Fish exporting countries have a major interest in tariff reduction and it was noted that fish exports played a very important role for the economies of many developing countries in the region.
Regarding the role and use of financial transfers and subsidies it was recommended that these must be scrutinised and assessed in the light of the given situation of any particular country taking into consideration their impact on conservation and management, on international trade, their social and economic implications and the contribution of fisheries to food security.
With a view to enable domestic fisheries industries in Asia and the Pacific, particularly in Small Island Developing States, to successfully compete in the global market, national Governments, FAO, APRACA and INFOFISH were requested to provide special support to fishery industries in the facilitation of technology transfer, information exchange, training, research and development, investment and credit support and through introduction of conducive fiscal and regulatory policies and measures as appropriate.
In the field of training and exchange of information, it was recommended, among other things, that FAO should disseminate experiences in developing countries of successful adaptation of private fishery enterprises, fishermen/women organizations, co-operatives and Government organizations to processes of globalization. Technical assistance should also be provided for the preparation of guidelines on transfer of knowledge, skills and technology through joint ventures. Furthermore it was suggested that technical and funding support should be provided to fisheries education and training institutes in developing countries to design and test short-term training courses for trainers of trainers on globalization in fisheries and pertinent international conventions.
As far as research and development is concerned, it was proposed that technical and funding support should be provided to developing countries by national and international sources and donors, among other things for the conduct of case studies on the successful adaptation of private fishery enterprises, fishermen/women, co-operatives and Government organizations to processes of globalization, on the impact of liberalization of imports of fishery products on food security and nutritional status of low-income consumers, on the on the impact of taxation, tariffs and fiscal policies on economic efficiency and environmental and resource sustainability of fisheries industries in developing countries.
It was also considered pertinent to develop guidelines on policies and measures to prevent unauthorised export of genetic resources from the country of origin and on negotiating favourable mutually agreed terms of such export if any.
Regarding the role of fishermen/women organizations and fisheries co-operatives in the context of globalization, it was suggested that they would benefit from a reorientation towards improving economic efficiency through privatisation, professional management and other means and strengthening their role in environmental conservation and integrated fisheries management. The reports of the three working groups as amended and adopted in plenary are shown in Annex IV.
