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Economic Drivers of Illegal, Unreported and Unregulated Fishing. Carl-Christian Schmidt* Head of the Fisheries Division OECD Paris, France. * Views expressed are those of the author and do not necessarily represent those of the OECD or its Member countries.

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economic drivers of illegal unreported and unregulated fishing

Economic Drivers of Illegal, Unreported and Unregulated Fishing

Carl-Christian Schmidt*

Head of the Fisheries Division

OECD

Paris, France

* Views expressed are those of the author and do not necessarily represent those of the OECD or its Member countries

iuu fishing activities an outline
IUU Fishing Activities-- an outline --
  • Why have we failed so far to address IUU effectively?
  • Drivers of IUU Fishing Activities
  • How big is the problem?
  • Where is IUU a problem?
  • Environmental, social and economic consequences of IUU
  • Changing the incentive structure: An agenda for the future
why have we failed so far to address iuu effectively
Why have we failed so far to address IUU effectively?
  • We have not addressed IUU as an economic activity
  • We have not understood the economic and social drivers that lead to IUU
the economic framework
The Economic Framework
  • (1) Expected profit from IUU > 0 ↔ Expected benefit > Expected sanction
  • or (2) E (π) > 0 ↔ E (B) > E (S)
  • or (3) P2 x (B) > P1 x (S),
  • Where:
  • E (π): expected profit
  • E (B): expected benefit
  • E (S): expected sanction (in absolute value)
  • Prob1: probability of being punished,
  • Prob2: probability of not being punished, with P2 = (1-P1),
drivers of iuu fishing activities
Drivers of IUU Fishing Activities
  • Overcapacity in the worldwide fishing fleet
  • Market demand and the price for IUU fish
  • Level of MCS operations
  • Level of sanctions, including fines and non-monetary sanctions
  • Management regimes
  • The current international framework
  • Economic and social conditions of fishers
how big is the iuu problem
How big is the IUU problem?
  • Anecdotal evidence
  • The nature of IUU activities
  • Estimates by regional fisheries management organisations
  • Estimates by NGOs + COLTO/OPRT
  • And where does this lead us?
where is high seas iuu a problem
Where is High Seas IUU a problem?
  • CCAMLR -- Patagonian toothfish
  • IOTC -- tuna
  • ICCAT -- tuna
  • NEAFC -- redfish
principal environmental social and economic consequences of iuu
Principal Environmental, Social and Economic Consequences of IUU
  • Stock impacts
  • Bio diversity; by-catches and accessory catches e.g. birds
  • Keep subsistence fishers from developing countries at bay; poor and unsafe working conditions
  • Direct economic impact on fishers dependent on the stock i.e. lower income
changing the incentive structure an agenda for the future
Changing the incentive structure:An agenda for the future

Improve domestic fisheries management and address overcapacity: should improve fishers income

More monitoring, control and surveillance (VMS) and improve use of existing techniques – BUT COSTS

Trace vessels registration

Higher and concerted levels of penalty/fines

changing the incentive structure an agenda for the future1
Changing the incentive structure:An agenda for the future
  • Eliminate markets for IUU fish (trade measures, embargoes, port state controls, traceability)
  • RFMOs: Empowerment and increased budgets
  • Open membership of RFMOs and implement incentive structures more conducive to reducing IUU
  • Is it time to rethink the high seas governance regime?