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Briefing on: THE OECD STUDY ON: GOVERNMENT FINANCIAL TRANSFERS AND RESOURCE SUSTAINABILITY

Briefing on: THE OECD STUDY ON: GOVERNMENT FINANCIAL TRANSFERS AND RESOURCE SUSTAINABILITY FISHERIES MARKET LIBERALISATION MANAGEMENT COSTS ECONOMIC AND SOCIAL SUSTAINABILITY INDICATORS At the European Association of Fisheries Economist’s XIII Conference Salerno 18-20 April 2001

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Briefing on: THE OECD STUDY ON: GOVERNMENT FINANCIAL TRANSFERS AND RESOURCE SUSTAINABILITY

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  1. Briefing on: • THE OECD STUDY ON: GOVERNMENT FINANCIAL TRANSFERS AND RESOURCE SUSTAINABILITY • FISHERIES MARKET LIBERALISATION • MANAGEMENT COSTS • ECONOMIC AND SOCIAL SUSTAINABILITY INDICATORS At the European Association of Fisheries Economist’s XIII Conference Salerno 18-20 April 2001 by Ola Flaaten, Head of the Fisheries Division Directorate for Food, Agriculture, and Fisheries

  2. Mandate for the GFT Study • At its 79th Session, held on 2-4 April 1997, the Fisheries Committee decided to study government financial transfers and their impact on fisheries resource sustainability.

  3. Executive Summary Key Findings of the Study: • The nature of government financial transfers in OECD Member countries has changed since the 1970s and 1980s, when they were aimed at developing fisheries. • Government financial transfers to the fisheries sector in OECD member countries amounted to USD 6.3 billion in 1997. • Most transfers (USD 4.9 billion or 77 per cent) are general services that are devoted to fisheries infrastructure and expenditure on activities, such as research and enforcement, that are essential for ensuring the sustainable use of fish stocks and the aquatic ecosystem. • The effect of transfers on resource sustainability is difficult to determine, as there are many influences on fish stock health that are difficult to disentangle.

  4. Executive Summary - continued • The possible negative effects of some kinds of transfers can be reduced or minimised when transfers policies and resource management policies are coherent. • Scope exists for industry funding of adjustment programs and programs that ensure sustainable fisheries. • Some transfers can imbed industry expectations that may complicate future adjustment efforts. • Some countries consider that the reform of their financial transfers policies, combined with other management measures, have been successful with respect to their resource management objectives. • Capacity reducing transfers and dependency reducing transfers, combined with appropriate management measures, can reduce pressure on fish stocks.

  5. Table 2. Estimates of Government Financial Transfers to Marine Capture Fisheries in OECD Countries: 1997 (USD million)

  6. Table 2. Estimates of Government Financial Transfers to Marine Capture Fisheries in OECD Countries: 1997- continued (USD million)

  7. Table 3. Estimates of Government Financial Transfers to Marine Capture Fisheries in OECD Countries - Classification by Program Objectives: 1997

  8. Table 3. Estimates of Government Financial Transfers to Marine Capture Fisheries in OECD Countries - Classification by Program Objectives: 1997 - continued

  9. Study on Fisheries Market Liberalisation "A study that will explore world and regional fish trade flows, issues and problems. This will include an analysis of how fisheries trade and production are likely to be affected by reductions in present tariff levels and by changes in non-tariff barriers. In addition the study will explore the effects of changes in restrictions on investment, access to services, subsidies in the fisheries sector, as well as other relevant factors.” COFI Summary Record 83rd Session

  10. Study on Market Liberalisation • Description of major markets, products and trade flows • Inventory of tariff and non-tariff measures, assistance measures and restrictions on investments and services • Analytical classification • Identify linkages (qualitative) • Analyse impacts (qualitative) • Quantifying impacts • Develop composite indicators.

  11. FISHERIES MANAGEMENT COSTS • The OECD’s Fisheries Committee is undertaking a study that: v Documents the fisheries management systems in use, the fisheries services provided to support management systems, and the method of funding those services, for all OECD countries. v Analyses how fisheries services and their costs vary between countries, fisheries and management systems. v Shows how countries have improved, or propose to improve, the way that fisheries services meet the requirements of fisheries management systems.

  12. Member country contributions • Country Notes • Fishery Case Studies

  13. Synthesis Report Executive Summary 1. Introduction 2. Rationale for fisheries management 3. Identifying the costs of fisheries management 4. Delivery and funding of management services 5. Study findings Afirst draft of the synthesis report will be presented to the88th session (October 2001) with a view to final adoption at the 89th (spring 2002) or 90th sessions (autumn 2002).

  14. ECONOMIC AND SOCIAL SUSTAINABILITY INDICATORS FOR FISHERIES This study will seek to develop fisheries social and economic indicators to be used as tools in policy analysis. The most important part of the Committee’s work when developing indicators will be to: • Agree on the specific policy questions to be addressed • Select the most appropriate indicators for evaluation of the impact of policies on the fishery system.

  15. Indicator Requirements For the indicators to be effective and workable to assist Member countries and the Committee in assessing the economic and social performance of their fisheries, they must be: 1. Policy relevant; 2. A. Available for all countries; or B. Available at community/regional level in all countries; 3. Designed for international comparison; and 4. Simple and easy to interpret.

  16. Examples of Policy Issues Market price development Industry performance Government Financial Transfers Management costs Other use and non-use values Social issue Prepare a survey and Issues Paper for Consideration at the October 2001 Session Taking Account of the Range of Activities in this Area

  17. References: • OECD (2001) Effects of Liberalising Trade in Fish, Fishing Services, and Investment in Fishing Vessels. Prepared by Professor Rögnvaldur Hannesson, Consultant to the OECD. Paris (forthcoming). • OECD (2000) Transition to Responsible Fisheries - Economic and Policy Implications. Paris. • Case studies, background material and staff papers related to the government financial transfer study are available at http://www.oecd.org/agr/fish/

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