After an introductory statement explaining why the ACMRR had decided to broaden its attention to include non-biological factors when formulating advice on policy for exploitation of aquatic resources, the Working Party (i) reviewed present economic research in aquaculture, (ii) considered the nature and methodologies of economic studies of aquaculture, (iii) reviewed short-comings of such studies, and (iv) considered what action FAO and member governments could take to improve the content and utilization of such studies. It was agreed that all forms of small-scale aquaculture should be included in the discussion, whether rural or not.
The Working Party was given briefings on the activities of FAO, ICLARM, SEAFDEC in economic studies and on the activities in the countries represented at the meeting.
FAO's main contributions presently include publication of data on production economics, and the preparation of two manuals: one on basic economics and one on record keeping for small-scale enterprises. ICLARM has followed a policy of assisting local economists to take up studies of aquaculture. This has resulted in a number of studies of the economics of aquaculture in Asia, with a recent emphasis on obtaining studies of the history of development of aquaculture in countries with an established record as aquaculture producers. Presently, IDRC and ICLARM are also establishing a network of institutions in Asia for the study of aquaculture socio-economics.
SEAFDEC's Aquaculture Department established an aquaculture economics unit in 1982. It is presently engaged in three studies:
survey of small-scale prawn producers in the Panay island;
study of tilapia cage culture in lakes
study of the socio-economic impact of aquaculture in lakes on the traditional capture fisheries in these lakes.
About ten years ago SEAFDEC also conducted a socio-economic study of aquaculture industry in the Philippines.
It was reported that the Tokyo University of Fisheries and the Fisheries Agency of Japan, have groups of researchers now working on aquaculture economics. An aquaculture economics unit has also recently been established in a Malaysian university. Other studies have recently been carried out on the economics of different aquaculture production units in Costa Rica, Hungary and Sweden. These will be ready for publication in the near future. From the review it was evident that a significant amount of information is already available with which to begin evaluation of a number of general characteristics of small-scale aquaculture enterprises.
The discussion leader categorized the economic studies of aquaculture into:
and then identified the following nine established methodologies of study:
The Working Party accepted the view that these methodologies are now well established and that there is no urgency to conduct work aimed at their improvement.
The Working Party felt that, while the methodologies for economic studies are well defined, economic studies of small-scale aquaculture suffer from a number of shortcomings. These include:
insufficient or unreliable data on physical aspects of both inputs and outputs in small-scale aquaculture activities, and use of inappropriate assumptions concerning the values of small-scale aquaculturists;
application of inappropriate methodologies for the analysis of small-scale rural activities;
tendency on the part of decision makers, primarily in government, to rely only on the conclusions of micro-economic studies, thereby ignoring the sometimes grave environmental and social consequences following the development and operation of a large number of such micro-economic units in any given area.
The Working Party also noted that the general lack of education in social sciences, and specifically in economic theory amongst those directly concerned with aquaculture in government services, is a factor which has restricted the number of economic studies of aquaculture in the past.
In view of these shortcomings, the Working Party felt it to be of importance that:
Economists studying small-scale aquaculture production units explicitly consider the alternatives for using time, money and other resources which are open to the individual expected to engage in, or already engaged in, aquaculture.
Economists ensure that micro-economic studies are based on the valuation of inputs and outputs held by the local population.
Government decision makers be aware that economic feasibility is essential but insufficient criterion. Social acceptability and environmental impact must also be explicitly considered in the course of appraisal of small-scale aquaculture development programmes.
FAO should prepare a text which illustrates the social factors relevant to planning small-scale aquaculture projects and which instructs in the analytical procedure required to apply them in project preparation.
FAO should prepare manuals on simple economics aimed at extension workers and small-scale aquaculturists, preferably of the teach-yourself nature.
Governments should provide aquaculturists and extension workers in government service with the possibilities of attending short introductory courses in economics.
Governments should, as much as possible, draw on the economic expertise available in local institutions to assist in the economic studies of small-scale aquaculture activities.
FAO, in cooperation with other international agencies, should sponsor workshops on aquaculture economics.
