Third world fisheries: Prospects and problems

World Developmenr. Vol Printed in Great Britain.

16, No. 6, pp. 751-757. 1988. 030>75OW88 $3.00 + 0.00 0 1988 Pcrgamon Press plc

Third World Fisheries:

Prospects and Problems

RICHARD BAILEY*

Summary. - This paper assesses the situation of the fishing industry in Third World countries today. It briefly reviews the history of the fishing industry, describes recent developments in technology and their implications, details the need for conservation efforts, and describes the diffi- culty in arriving at satisfactory regulations for the industry. In addition, the paper outlines the particular opportunities available to Third World fisheries, assesses problems and prospects, and concludes that the gap between the demand for fish and the sustainable supply of fish is likely to widen in the future.

1. INTRODUCTION

The importance of making full use of global fishing resources is widely recognized. Fisheries development is essential, both as a means of increasing levels of food production in most developing countries and as a means of improving the quality of diet in developing countries; as a source of protein, vitamins and essential minerals, fish provides an ideal supplement to the poor and monotonous diet which is the daily fare of the inhabitants of many tropical and sub- tropical countries.

However, the expansion of the annual catches of fish is no longer a simple matter today. Until the last 30 years, with some notable exceptions, oceanic resources far exceeded the human capacity to exploit them. If the demand for fish rose, it was only necessary to spend more time and effort to increase catches. For the past two decades this has no longer been the case for many of the major fish producing areas. The danger signals all indicate a situation in which the world’s fish catch will soon reach its natural limits - limits which will be below the level of world demand. How has this situation come about?

To a large extent technological change is to blame. In the past, fishermen relied on know- ledge of local weather conditions and their traditional experience of the habits and seasonal movements of the fish in the seas in which they operated. Their ability to increase the size of catches was necessarily limited and supply lagged behind potential demand. Today trawlers have acoustic resonators for tracking the fish and nylon nets capable of trapping hundreds of tons

of fish at a time. Most fishing vessels have facilities to immediately freeze the fish and sufficient power to get the catch back to port before it de- teriorates. In other cases factory ships work with the fishing fleets; these ships are able to deep freeze or pass the fish straight to their canning plants. Such ships of the so-called industrialized country fisheries can operate farther from home ports and take much larger catches than was possible in earlier days. At a more modest level, technology has come to the help of fishermen off the shores of Third World countries; these fishermen are now able to cover a wider area with the help of outboard motors clamped onto their dhows or outrigger canoes. In other words. technological advance has made it possible to exploit the world’s fisheries more intensively than ever before, but the repercussions of this rapid change are by no means all favorable.

2. HISTORY OF THE FISHING INDUSTRY

Three quarters of the world’s total fish catch is found in four areas. These are the continental shelves of the North Atlantic and Pacific Oceans,

*Richard Bailey is an Economic Consultant and writer, formerly Director of Political and Economic Planning (now incorporated in Policy Studies Institute). Publica- tions include Probkms of the World Economy (Pen- guin, 1967); Promoting Commonwealth Development (Hutchinson. 1970); Energy - rhe Rude Awakening (McGraw-Hill, 1977); The European Connection (Pergamon. 1983). Member of Council. Overseas Development Institute (1960-1982).

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and the upwelling waters along the coasts of Northwest Africa and Namibia. and of Peru and California. Annual landings of around 70 million tons of deep sea fish are almost equallv divided between developed (51%) and developing countries (49%). Production from inland waters has increased and now accounts for about 10% of the total catch.

According to FAO projections’ fish consumption increased by 20 million tons in one decade, to reach 75 million tons in 1985. However, twice as much meat as fish is still consumed by humans, some 120 million tons compared with 50 million tons. Over half the fish consumed consists of pelagic (surface) species such as herring, mackerel and tuna. The remainder are demersal (deep-water) species such as cod, haddock, hake, pollack, and all flatfish. In addition there are mollusks such as squid and the larger crustaceans such as prawns, lobster and crab.

Fish has been exploited in Western Europe and North Africa for thousands of years. In ear- liest times most fish was consumed as soon as possible after catching, but gradually, with the growth in population, new techniques such as smoking, sub-drying, salting and fermentation came into use and allowed for storage and later consumption of fish. The Industrial Revolution, beginning in the late 1700s in Britain, had a considerable impact on the fishing industry. A series of inventions led to the creation of steampowered fishing vessels able to operate farther away from home ports. Onshore marketing, processing and distribution all increased in efficiency. The major breakthrough in fishing methods came with the use of trawling first in the English Channel and later in the southern basin of the North Sea. As this extended outwards to more distant waters the need arose for ice making techniques to keep fish fresh on the journey back to port. The development of railways and the growth in urban population made possible the sale of fish farther inland, and to meet this demand European trawlers moved on to the distant waters of the Barents Sea and Iceland.

A major change in the fishing industry took place after the end of World War II.* The traditional fishing nations of Britain, France, West Germany, Norway and Spain were joined by the USSR, East Germany and Poland. Greece, Italy and Yugoslavia also expanded their activities. Fishing became a more capital-intensive industry operated by companies and state-subsidized en- tities with fleets able to stay at sea for long periods and to process and freeze their catches on board. Powerful diesel engines, hydraulic win- ches and steering, echo sounders for vertical searching, and navigational aids all helped to in-

crease efficiency and enable much larger catches to be brought to market. The countries most affected by the modernization of the industry were the traditional fishing nations of Western Europe, the United States, the USSR and Japan, and Chile, Peru, India, South Korea, China and Indonesia in the Third World.

About 70% of the world catch of 70 million tons is currently used for human consumption while the remaining 30% is converted into fishmeal or oil for animal use. According to FA03 estimates the Third World will account for 60% of world fish consumption by the end of the century, which by that time could exceed 110 million tons including fish from inland waters. About 35% of the world catch enters international trade with developing countries comprising about half of the total, with exports valued at US $100 million. Third World fisheries are the main expor- ters of shrimp and supply about half the world’s fishmeal exports, mainly from the Peruvian anchovy fisheries.

3. NEED FOR A FISHERIES POLICY

The developments in fishing technology have opened up the prospect of a significant increase in food, particularly protein, supplies available to the Third World. However, this potential can only be reached if certain conditions are met. Fishermen are not farmers; they do not cultivate crops but, like hunters, take what is available and when one area is exhausted move on to another. Periodic collapses in over-fished areas have flashed a warning that without cooperation in the conservation of certain species, stocks will be depleted to the point where further fishing becomes impossible. Fishing in the North Sea was prohi- bited from 1977 to 1980, and restrictions were im- posed on amounts after that. Northwest Atlantic catches of cod fell from 1.5 million tons to 600,000 tons in the same period. Similarly, the pilchard catch off the coast of Namibia fell from over one million tons to 12,000 tons. The short- age of fish is not, however, attributable only to over-fishing. Natural causes reduced the herring stock in the North Sea, and farther afield the appearance of the warm water current “El Nina” played havoc with Peruvian anchovy fisheries.

The solution to the problem of over-fishing clearly demands cooperation between fishing nations and agreement on the measures needed to conserve stocks. The difficulties involved in securing such coordination are, however, considerable. National interests have frequently been put before long-term requirements. During the 1970s more than 100 countries extended their

THIRD WORLD FISHERIES 153

national fishing boundaries to 200 miles offshore. These Exclusive Economic Zones (EEZ’s), established under the Convention on the Law of the Sea now account for more than 95% of all fish caught. The change has meant that British and other deep-water fleets have been excluded from Icelandic waters which they had tradi- tionally fished. Countries such as Turkey and Chile, which had previously had only small fishing fleets, began to build up their fishing capacity. Other maritime states began to charge rent to industrial fishing nations for permission to operate in their fishing grounds.

The problems facing the establishment and en- forcement of a fishing policy which would pre- serve stocks and ensure a livelihood for those employed in the industry is well illustrated by the protracted negotiations leading up to the Com- mon Fisheries Policy (CFP) of the European Economic Community (EEC).’ Six, then nine, and later 12 countries were involved in this case. The original six EC members agreed on a pro- visional fisheries policy in 1970, three years before Britain, Denmark and Ireland joined the Community. A further 13 years went by before the Common Fisheries Policy was signed by the nine members on 25 January 1983. Greece accepted the CFP after joining the Community at the beginning of 1984. From the beginning of 1986 Spain and Portugal became involved. This long delay in reaching an agreement demon- strates clearly the problems of the fishing industry.

4. LESSONS FOR THE THIRD WORLD

There are several lessons for the Thiril World from the difficulties encountered by the Euro- pean Economic Community in agreeing on a fisheries policy. First, fish conservation cannot be managed in a purely national context. Some fish, for example cod, caught fully grown in the waters of one country may have spawned and matured in the waters of other countries. Conservation measures must be synchronized for all areas concerned. Second, fishermen must realize that the protection of fish stocks is the best guarantee of the future viability of the industry and the main- tenance of the food supply that it represents. The usual attitude of the national industry is that all will be well provided they have exclusive access to their traditional fishing grounds. Third, the regulation of fish stocks will involve the laying off of boats from time to time. Aid to cover the losses involved helps to make such measures acceptable. Fourth, national aid schemes are often protectionist and unfair in their effects on

other countries. For example fuel subsidies granted by one country subsidize costs and do not lead to any improvement in the industry but simply keep alive what would otherwise be loss- making activities. The same is true of straight payments to producer organizations to enable them to regulate the market for fish products. Investment aids which help the industry to adapt to the changing environment have a much more positive impact.’ Finally, a number of other measures are vitally necessary if the fishing industry is to be preserved or enhanced: research aid for the development of new fishing methods, assistance in surveying new fishing grounds, help in the ex- ploitation of new or unusual species of fish, tech- nical assistance and training, and aid for the promotion of fishing products.

5. INTERNATIONAL COMPETITION AND FURTHER REGULATION

The pressure on the world fishing industry has not been so severe as that in heavy manufactur- ing industries such as steel and shipbuilding. However the fact that it is concentrated in a few locations, many without alternative employment. has increased its political importance. At one time Britain had the world’s largest fishing fleets and even in 1945 it still had the major fleet in Western Europe. Yet by 1979 several other countries had moved ahead of Britain in gross registered tonnage. These were the USSR, Japan, Spain, the United States, Peru, South Korea and Norway. Using weight of catch as the criterion, India, Chile and Indonesia were also included.

Relations with third, i.e. non-member, countries form an integral part of the Common Fisheries Policy of the EEC. A resolution passed by the Council of Ministers on 3 November 1976, the Hague Resolution, provided for agreements both on fishing by third country vessels in the fishing zones of member states, and on fishing rights for Community fishermen in third country waters. So far as European waters are concerned these arrangements concerned fishing in the waters of Norway and Sweden, and until they became members of the EEC, those of Spain and Portugal. In addition to these arrangements, the Community has historic interests in more distant waters where fishing rights have been given in exchange for trade concessions or financial compensation. The Community’s agreement with Canada for quotas covering the Newfoundland Banks and other east coast fishing grounds is an example of such access to resources in exchange for access to markets agreements. Other agreements provide for financial compensation in re-

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turn for fishing opportunities for EEC vessels. The amount of compensation is related to the quality and value of the fish available. Agree- ments of this kind have been made by the Com- munity with Senegal, Guinea Bissau. Guinea Conakry. Equatorial Guinea, Sao Tome and Principe. and the Seychelles.

The EEC Common Fisheries Policy was only part of the movement towards a worldwide regulation of the fishing industry. In the 1970s the major fishing nations unilaterally established 200 mile exclusive fishery zones off their coasts over which they claimed sovereign fishing rights. By 1980 such zones, either existing or planned. covered 130 million square kilometers, an area equal to 35% of the world’s ocean surface and 90% of the world’s land mass. The new limits were endorsed by the Convention on the Law of the Sea signed in Jamaica in December 1982. This treaty provides an “oceanic constitution” covering every aspect of legal rights from free passage to continental shelves, to the distribution of minerals lying on the deep sea bed. It was negotiated by delegates from 1.59 countries including the Group of 77 developing countries. The mining regulations are highly controversial and have not yet become fully operative. The fisheries provisions were accepted as confirma- tion of action already taken or promised by governments.

The lead in bringing about the new situation was taken when the Icelandic government passed a Law on Scientific Conservation of the Con- tinental Shelf Fisheries in 1948. This did not extend the three mile limit but claimed special jurisdiction over fish stocks beyond this area, on the grounds that Iceland exported 90% of its catch. In 1952 the fishing limits were extended to four miles, then to 12 miles in 1958, to 50 miles in 1972 and to 200 miles in 1974. Chile, Peru and Ecuador extended their fisheries zones in 1952 and by 1974 some 38 Third World countries had followed their example. The Organisation of African Unity recognized the right of each of its member coastal states to establish a 200 mile Exclusive Economic Zone, and the rights of 74 non-aligned states at their third conference in September 1973. Australia, China and Canada assumed jurisdiction over 200 mile zones on 1 January 1977 and the United States on 1 March 1977. The European Economic Community did not declare a 200 mile zone until October 1976, following action by Iceland and Norway.

6. PROSPECTS FOR THE INDUSTRY

The UN Food and Agriculture Organization

(FAO) has estimated that the gap between world supply of and demand for fish will rise from its present level of eight million tons to around 30 million tons by the end of the century, largely due to the forecast increase in populatton. This means that the total world deep sea catch for fish and shellfish for human consumption. now about 75 million tons, will rise to 93 million tons. Such an increase will not be easily achieved as the average yearly increase has been reduced to 1% (from 6% in the 1960s). as a result of depletion of stocks. changes in demand patterns, spoliation, and the absence of abundant unexploited stocks that can be readily caught and marketed.

The FAO estimates that the developing countries net only a minor share of the 100 or so species of fish regularly caught for human consumption. This represents no more than 50,000 tons of demersal species and 40.000 tons of tuna annually. Various explanations for this low out- put include lack of capital and specialist staff, and inadequate infrastructure and technology. But the greatest problem is that a large portion of the fish caught is eaten by insects or perishes before it c.an reach the consumer. Some five to six million tons are lost in this way annually in tropical waters.h

7. OPPORTUNITIES FOR THIRD WORLD COUNTRIES

The FAO World Fisheries Conference held in Rome in June 1984 was the first major public occasion for a discussion of the different aspects of world fisheries since the adoption of the Con- vention on the Law of the Sea in 1982.’ The creation of 200 mile Exclusive Economic Zones presented coastal Third World countries with the opportunity to draw up a strategy aimed at con- serving and developing global fishing resources. The discussion centered on three main themes: adjustment to the new regime of the oceans, meeting the challenge of fishery development, and ensuring a better future for fishermen. The industrialized nations and those developing countries with fleets fishing in distant waters are undergoing a slow decline. Fish prices have risen faster than those of other kinds of meat, partly through the higher cost of oil, and partly because of the decline in stocks of the species in greatest demand. At a time when world demand for fish is accelerating with the growth of population and incomes, the fish catch is leveling off. Of the 76 million tons taken in 1983 only about two-thirds went for human consumption while the remainder was used for fishmeal or lost through waste and spoilage.


The objective set at the FAO conference was to double the amount of fish available for human consumption that is the total catch less the one- third used for fishmeal. by the end of the century, and to ensure that a reasonable share of the increase went to people in developing countries. Five special action programs were approved. These involve:

(i) proposals for the planning. management and development of fisheries;

(ii) encouragement of small-scale fisheries; (iii) aquaculture; (iv) international trade in fish and fishery pro-

ducts; and (v) the promotion of fisheries for alleviating

undernutrition. The World Bank and other funding agencies were urged to give special attention to projects for investment in fisheries. International cooperation was called for to combat pollution in the EEZs of the developing countries. Consideration is to be given to the special problems of the land- locked countries, particularly in the African Sahel.

These measures, approved by the FAO conference, indicate an awareness of the nature of the problems facing the fishing industry and a deter- mination to cooperate in seeking solutions to them, A great deal of effort will be required in this endeavor. The three main areas to be addressed are: the operation of EEZs, small- scale fisheries development, and aquaculture.

The Convention on the Law of the Sea gives very wide discretionary powers to the governments of coastal states. Fishing fleets from the industrialized countries were already operating in some of these waters before the Convention was implemented. The governments concerned can now consider whether to grant access to foreign fleets or to exclude them and take sole fishing rights in the EEZ. In some cases governments may decide to allocate a part of their zone under license for a definite period and with precise conditions regarding stock preservation. Some governments, whose offshore fishing has re- mained undeveloped, have extended fishing rights to a foreign power contingent upon pay- ment of a lump sum for fishing rights and the sale of a specified tonnage of fish in the market of the host country. Such an arrangement allows a developing country to secure the use of the fishing, processing and marketing services of the foreign power for the development of its EEZ. An alternative arrangement is to set up joint-ventures under inter-governmental agreement, as in the case of Indonesia and Japan. The intention is that these arrangements will create jobs, increase fish production and incomes, and generate foreign

exchange. The Falklands exclusive fishery zone is the latest example of this development.

There is always the danger that the Third World partner will not receive all these benefits and that the zone may be over-fished and stocks depleted before the local fleet has become fully developed. These arrangements present adminis- trative problems for the host country. If fees pay- able by the foreign operator are related to catch, measures are necessary to limit and detect eva- sion of the terms of the agreement. Lump sum payments appear to be the simplest.method but as these require the foreign operator to take most of the risks, payments are fixed at a lower level than in other types of concession. Patrolling and inspecting a 200 mile EEZ requires considerable logistic skills involving the use of special vessels manned by personnel trained to enforce regulations of fishing time, species caught and conservation measures. A further complication is that the industrialized countries have restrictions on the import of some fish, and fishing products face a range of tariff and non-tariff barriers notably in the European Community.

8. TYPES OF OPERATION

(a) Arrisannlfisheries

In most developing countries artisanal fishing is the main type of operation. The largest enter- prise engaged in the actual catching operation consists of one boat, owned or hired by a working fisherman or a family. Some of these small-scale operators earn a respectable living, especially in the Arabian Gulf where some Omani fishermen earn over $100 a day. Earnings on this scale are exceptional, however. In Asia, small-scale fisheries provide two-thirds of the total catch; in Africa they account for five-sixths of the total. Artisanal fisheries have a comparative advantage in production for a local market, but as they are scattered throughout productive coastal and inland waters it is difficult for central government agencies to organize development programs. There is scope for investment, however, in pro- viding motorized boats, improving shore facilities and developing processing and marketing.

(b) Aqrcacuhre

Aquaculture, or fish farming. is the fastest growing part of the world fishing industry. In 1983 some nine million tons of fish were pro- duced in fish ponds. on land. and in fish ranches, huge floating cages in the sea in which shoals of

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fish are kept in a controlled environment. Aquaculture has a long history in Asia, particularly in China where it produces about five million tons a year. Little progress has been made so far in African fish farming. Even in the relatively advanced aquaculture areas of Southeast Asia, only about one-tenth of the potential area for development has been used. Conflict of interest over the use of water for agriculture and aquaculture is currently holding up progress. Until governments adopt a more positive attitude towards aquaculture, loans and grants will not be readily forthcoming for fish farming projects. The difficulties in managing access to water supplies, and the leasing of land and rights to water will probably be best overcome by state schemes rather than by attempting to encourage indi- vidual projects.

The developing countries are the world’s major shrimp producers with some 40 countries accounting for nearly 70% of the global catch and an estimated 75% of total trade.” This market domination is expected to continue, according to a survey carried out by the International Trade Centre, provided certain measures are taken. Increased export earnings could be achieved through higher yields and improved quality in spite of the fact that only limited possibilities exist for increasing the size of the catch. As in other parts of the fishing industry better marketing information and more efficient marketing techniques are needed. Shrimp farming is most significant to Third World nations as a means of earning foreign currency. The principal im- porters are Japan, the United States, Western Europe, Australia and Hong Kong. Commercial shrimp farming is now undertaken in a number of developing countries helped by low labor costs and climatic advantages.

9. CONCLUSIONS

The development of the fishing industry offers the opportunity for Third World countries to increase their food supplies. Fish has an intrinsic cost advantage over other kinds of food, as the raw material is free. The annual running costs of a small trawler (up to 80 feet) for ocean fishing are about $200,000. Such a vessel may land 600 tons of cod or 1,500 tons of sardines a year, which gives an average cost for a ton of fish caught of between $300 and $130. This compares with the wholesale price of beef which is above $500 a ton

in Argentina. It has been estimated that it takes only one-tenth as much energy to fuel a trawler and catch and refrigerate a pound of cod as it does to put one pound of weight onto cattle fed on soyabean meal.Y These facts can be demon- strated in general calculations but it must be remembered that to produce these results the industry must be efficiently organized and operate in a system of environmental controls which en- sures the conservation of fish stocks, regulates pollution and provides adequate onshore land- ing, processing and marketing conditions.

At present, Japan is the world’s largest consumer of fish importing nearly one-quarter in value of the world’s fish trade. In addition, Japa- nese vessels catch and land a further IO million tons a year, which is roughly equivalent to the amount caught by West European fishing fleets. The developing countries now land roughly half of the world’s total catch but it is by no means certain that they can maintain the modest rate of increase over the mid 1970s which this represents.

The biggest gains from the introduction of the 200 mile limit have gone to Canada and the United States. Some developing countries with long coastlines such as Chile and Turkey have only small fleets, which will require heavy investment to bring up to the level required to cover the vast area of sea available in their Exclusive Economic Zones. Some countries, notably Thai- land, have lost some traditional fishing grounds with the introduction of the 200 mile limit.

There are also geographical factors to be taken into account. A shift in the Humboldt current in the early 1970s abetted by serious over-fishing, led to the collapse of Peru’s coastal anchovy fishing. The attempts to offset the decline in stocks of traditional species by establishing new fisheries for species such as kapelin, sprat, pollack, lantern fish and krill have not yet been fully tested in practice. For example, in 1979 the FAO reported that while methods of harvesting and processing krill had been developed, the product was not commercially attractive.

In short, the prospects for increasing the global fish production from the current 75 million tons to the forecast 100 million tons by the year 2000 probably cannot be achieved on a sustained basis.” More sober forecasts see the annual catch fluctuating between 65 million and 75 million tons over the next two decades.” Such pessimism might prove unjustified if governments improve the management of their fisheries, if unexploited stocks such as those around the Indonesian islands are developed, and if greater attention is paid to aquaculture. A change in emphasis in the world aid programs in


favor of fish will be necessary if Third World tries the legal authority to manage their offshore countries are to realize their full potential. At the fisheries. The convention does not ensure that same time fishing programs will require disci- this will take place, and the risk remains that the plined management otherwise past experience balance between demand and the sustainable of rapid growth, over-fishing and abrupt decline yield of the basic biological system of the oceans is likely to be repeated. The Convention on the will widen. Law of the Sea gives the coastal developing coun-

NOTES

FAO (1984).

European Economic Community (1985).

FAO (1984).

Common Fishery Policy, Regulation Number 170183.

5. FAO (1979).

6. Overseas Development Institute (1984).

7. The Economist (1984).

8. Standard Chartered Review (1984).

9. The Economist (1981).

10. Brown (1981).

11. Council on Environmental Quality and the US Department of State.

REFERENCES

Brown, Lester R., Building a Sustainable Society (London: W. W. Norton and Co., 1981).

Council on Environmental Quality and the US Depart- ment of State, “The Global 2000 Report to the President” (Washington, DC: July 1980).

European Economic Community, Common Fisheries Policy, European Documentation (Luxembourg: 1985).

Food and Agriculture Organization, World Fisheries and the Law of the Sea (Rome: FAO, 1979).

Food and Agriculture Organization, Yearbook of Fishing Statistics (Rome: FAO, 1984).

House of Lords Select Committee on the European Communities. The Common Fisheries Policy (Lon- don: HMSO, December 1984). paras. 30-55.

Overseas Development Institute, “Fisheries and the Third World” (London: Overseas Development In- stitute, June 1984).

Standard Chartered Review, “World market for shrimps” (September 1984).

The Economist, “World fishing flounders” (23 June 1984).

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Third world fisheries: Prospects and problems

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