Briefing on:

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
  Economists 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 OECDs 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
• A first 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 Committees 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/