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Welfare Effects of Fisheries Boom in Lake Victoria

This study examines the welfare effects of the fisheries boom in Lake Victoria, Africa's largest inland fishery. It analyzes the impact of free trade and open access on food security, income distribution, and nutrition. The results highlight improvements in welfare but also challenges such as malnutrition and income disparity. The study emphasizes the importance of improving the status of women for better outcomes.

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Welfare Effects of Fisheries Boom in Lake Victoria

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  1. ENVIRONMENT AND TRADE IN A WORLD OF INTERDEPENDANCE. WWW.ENTWINED.SE ENTWINED

  2. International Institute of Fisheries Economics and Trade (IIFET) 2010 Montpellier, 13-16 July 2010 Welfare Effects of Fisheries Boom in Lake Victoria Håkan Eggert, Mads Greaker and Asmerom Kidane* University of Gothenburg, *University of Dar es Salaam Financial support from Entwined, Mistra and Environment for Development, Sida is acknowledged. Thanks to the World Bank for the 1993 survey data. www.efdinitiative.org

  3. Lake Victoria fisheries • Africas largest inland fishery • Total landings 1 million tons in 2006 • Nile perch export $ 150 million from Tanzania (2008), 5% of total exports • Overfishing

  4. Nile perch landings 1977-2008 FAO, fishstat 2010

  5. Nile perch cpue kg/boat year From Warui, 2007

  6. Free tradebeneficial • Free trade and open access is not alwaysbeneficial Chichilnisky, 1994; Brander and Taylor, 1998; Hannesson, 2000; Copeland and Taylor, 2009 + Hartwick’srule (1977)

  7. Claim that fish exports contribute to food insecurity ”…unrestricted trade has contributed to food insecurity and reduced nutrition…” (Abila, 2003) Abila and Jansen, 1997; Jansen, 1996; Bokea and Ikiara, 2000 - Darwin’s Nightmare

  8. Annual growth in Tanzania 1993-2008 was 4.5% HDI, UNEP World Bank survey 1993 EfD survey 2008 520 households in Mara and Mwanza Household Budget Surveys (HBS) provide - reference years 1991, 2000 and 2007

  9. Lake Victoria

  10. Results

  11. Results

  12. Results USD 1 = TShs 1,300, October 2008

  13. Table 5. OLS Regression on Income measured as log expenditure per adult equivalent. OLS Regression Income (log expenditures per adult equivalent)

  14. Conclusions • Welfare has improved slightly 1993-2008 • The fraction of poor reduced in the urban areas • Education level improved both in rural and urban areas • <10 km from lake significantly better off

  15. Conclusions cont. • Substantial real price increases for meat and fish 1993-2008 • Still, unacceptable high numbers of children malnourished (Geheb et al, 2008) • Change of income distribution within hh, men control the fishery income while women often not directly benefit from it (Geheb et al, 2008) • Improving status of women vis-à-vis men likely improves nutrition of children (Smith et al, 2003)

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