Property rights and fisheries management

 

 

 

The Issue

Reference to property rights in fisheries is often controversial because of different interpretations of the concept, the variety of forms that property rights might take and equity problems associated with the assignment of rights.

Once the natural capacity of a fishery resource to supply is exceeded by the demand for that resource, there is a need to limit its harvest in some way. This means either limiting fishing effort, the combination of people, fishing gear, boats and ancillary equipment needed to harvest the fish, to indirectly limit the quantity of fish that might be caught, or limiting the catch directly. In essence, it means an end to open access and that some people, using a combination of fishing gear, boats and other equipment, will have the right to fish while others will be excluded.

Allowing some to continue in the fisheries while excluding others, is the process of establishing rights to the stream of benefits that arise from the use of the resource. A 'right' is the capacity to assert a claim and have others respect it. A property right is a defensible claim to a stream of benefits arising from things and resources. Property rights thus constitute the essential basis for effective fisheries management. Ending open access necessarily involves creating some form of property rights.

Property rights may be vested with individuals or companies as private property rights, with communities or with groups of individuals as common property, or they may be vested with the state at a national or sub-national level, or with a group of states, as public property.

Possible solutions

The rights-based management system established for a fishery should meet certain requirements if it is to be successful:

  1. Property rights to harvest fisheries resources must be clearly defined. They should explicitly state the extent of the right, whether it is to a share of the catch, or to a defined amount of fishing effort, or to catch fish in a particular geographic area. The less clear the rights are, the more difficult it is to enforce them as ambiguity generates debate and uncertainty. Even if there is some limitation on access, without properly defined rights participants in a fishery will tend to compete for as large a share of the resource as possible, up to the point where the additional revenue produced is equal to the cost of competing for the resource.
  2. The rights should be structured in such a way as to make enforcement a cost-effective and realistic proposition. Enforcement, or the capacity to insist that the claim to the benefits from use of the resource be respected, is inextricably linked to the concept of a property right. A rights-based system must be able to exclude non-rights holders from access to the resource. If property rights are not enforced, open access occurs, as anyone may lay claim to the benefit of the resource.
  3. The rights should provide incentives that encourage optimal use of fisheries resources by adjusting fishing effort to that which is just sufficient to achieve optimal harvesting in the long term. The more permanent the right, the greater will be the incentive to nurture and conserve the resource. But, Government commitment to achieving certain social objectives, such as provision of employment, may limit its capacity to achieve to provide permanent rights.

In some developing countries and among coastal communities of some developed countries, traditional fishing rights exist. Often these rights are not sufficient to provide the incentives needed to achieve effective management of the fisheries. However, they generally provide the best foundation on which to establish rights which provide the correct set of incentives and, therefore, they should not be ignored. Simply replacing existing rights in such communities with other rights may damage the cause of effective management of fisheries.

Recent action

Interest in and use of property rights has grown considerably in recent years both in relation to the management of fisheries within national jurisdiction and on the high seas. During the last decade, international agreements, extending governance of fisheries on the high seas, have sought to establish mechanisms to limit fishing on the high seas. The process of limiting access to high seas stocks means granting rights to some while excluding others. The mechanism used to achieve this has been by extending and further defining obligations arising from flag state jurisdiction over vessels flying their flag and by building on the responsibility of all states to cooperate in the conservation and management of high seas fish stocks (established by UNCLOS). These developments represent a major step in the direction of more effective management of fisheries resources. However, capacity to enforce rights on the high seas remains weak because the 1995 UN Fish Stocks Agreement and the FAO Compliance Agreement (1993) have not yet entered into force and many fishing nations have not yet ratified or acceded to them.

Outlook

Globally, the increasing scarcity of fisheries resources in relation to demand for fish and fish products will continue to expose the unsustainable nature of open access utilisation of fisheries resources. This will create increasing stakeholder pressure for clearly defined and enforceable property rights. Interest in the use of property rights is expected to continue to grow as the concept, and its link to effective fisheries management, is more widely understood.

 

Prepared by Peter Manning
Development Planning Service

 

reference sources

"Use or property rights in fisheries management"; proceedings of the FishRights99 Conference. Two volumes

 

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