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The Rise of Salmon Aquaculture and the State

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The Rise of Salmon Aquaculture and the State Chilean Blue Revolution: the Rise of Salmon Aquaculture and the State By Jose Augusto Martini Costa MA Thesis submitted to the School of Graduate Studies in partial fulfillment of the requirements for the degree of Master of Arts Department of Political Science Memorial University of Newfoundland October 2019 St. John’s Newfoundland and Labrador Abstract In less than two decades, Chile moved from a nonexistent salmon aquaculture production to become a world leader. This research examines the role of state institutions in fostering a non-traditional export-led industry in Chile from 1969 to 2016. During this period, Chile experienced a forced transition towards a neoliberal economic model imposed by General Pinochet’s brutal dictatorship and maintained by subsequent democratic governments. The institutional framework set during the dictatorship of the 1970s and 1980s shaped actors and processes related to salmon aquaculture and continue to structure the industry. The history of salmon aquaculture development in Chile is marked by a paradox in which the Chilean state, the same that advocates for a neoliberal economy with a minimum state presence, continues to support, promote, finance and define the salmon aquaculture industry direct and indirectly. ii Acknowledgements There are a lot of different feelings after concluding a yearlong project like this one, including relief, happiness, and accomplishment. Still, none of this would have been possible without the generosity of some people that shared their time, knowledge, and friendship along the way. My heartfelt gratitude goes to some of them, including my tremendous brilliant supervisor Dr. Sarah Martin, who was a beacon of light that guided me in this sometimes lonely journey. And to Dr. Amanda Bittner, a mentor and, sometimes counselor, that goes beyond her job scope to listen and support students. To all other professors and staff in the Political Science Department that I had the privilege of sharing workshops, meetings, seminars, and conferences, including Dr. Russel Williams and Dr. Stephen Tomblin, both of them gave me advices that proved to be invaluable. To my cohort, which made the infamous St. John’s weather seems less unbearable, and the pile of reading less daunting, especially John, Megan, Michelle, and Rachel. A special thanks to my mentors in Brazil, Dr. Carla Rodrigues, Jorge Correa, Dr. Marcelo Kischinhevsky, and Maira Costa. They always believed that I could, even when I didn’t. Also, I would like to acknowledge the support to this research by the Ocean Frontier Institute. iii To my lifetime friends that accompany me in my darkest and brightest hours, my honest gratitude and love. My eternal gratitude goes to my mother, for her restless dedication to her children and family; and to my oldest brother, Roberto, who provided the means and the intellectual incentive to pursue this dream. And lastly, my gratitude goes to Barbara, my friend, confidant, and partner on this adventure. I will be forever grateful for the encouragement, patience, kindness, fortitude, and love. This work would not have been possible without her unconditional support. iv Table of Contents Abstract ................................................................................................................................ ii Acknowledgements ............................................................................................................. iii List of Tables....................................................................................................................... vii List of Figures .................................................................................................................... viii List of Abbreviations ........................................................................................................... ix Chapter 1 – Introduction ...................................................................................................... 1 1.1 Background ........................................................................................................ 2 1.2 Importance of the study .................................................................................... 4 1.3 Objectives of the Study ...................................................................................... 6 1.4 Research Question and Hypothesis ................................................................... 7 1.5 Limitations .......................................................................................................... 8 1.6 Structure ............................................................................................................ 8 Chapter 2 – Literature Review and Theoretical Framework.............................................. 11 2.1 Aquaculture as a concept................................................................................. 12 2.2 Salmon aquaculture in the world..................................................................... 13 2.3 Salmon Aquaculture in the Literature ............................................................. 15 2.4 Gaps in the literature ....................................................................................... 20 2.5 Theoretical Framework .................................................................................... 22 2.6 Methods and Data ........................................................................................... 25 2.7 Conclusion ........................................................................................................ 27 Chapter 3 – History of Salmon Aquaculture in Chile ......................................................... 28 3.1 Exploratory phase (pre-1960s) ......................................................................... 30 3.2 Preparatory phase (1960 to 1975) ................................................................... 34 3.3 Establishment phase (1976 to 1989) ............................................................... 36 3.4 Expansion phase (1990 to 2009) ...................................................................... 40 3.5 Current phase (2010 to ongoing) ..................................................................... 43 3.6 Conclusion ........................................................................................................ 45 v Chapter 4 – State Institutions and the Chilean Blue Revolution ....................................... 47 4.1 Exploratory phase (pre-1960s) ......................................................................... 50 4.2 Preparatory phase (1960 to 1975) ................................................................... 52 4.3 Establishment phase (1976 to 1989) ............................................................... 55 4.4 Expansion phase (1990 to 2009) ...................................................................... 60 4.5 Current phase (2010 to ongoing) ..................................................................... 67 4.6 Conclusion ........................................................................................................ 76 Chapter 5 - Conclusion ....................................................................................................... 79 5.1 Contributions to the Literature ........................................................................ 82 5.2 Future Research ............................................................................................... 83 5.3 Final Thoughts .................................................................................................. 84 References ......................................................................................................................... 86 Appendix ............................................................................................................................ 96 vi List of Tables Table 1 Development phases of salmon aquaculture in Chile .......................................... 10 vii List of Figures Figure 1 World capture fisheries and aquaculture production from 1950-2015 .............. 12 Figure 2 Number of farming concessions in Los Lagos region from 1982 to 2009 ........... 63 Figure 3 Aquaculture Production of Salmonids in Chile from 1990 to 2007 ..................... 66 Figure 4 Aquaculture Production of Salmonids in Chile from 2006 to 2017 ..................... 69 Figure 5 Institutional changes proposed after the modification of the LGPA in 2010 ...... 72 Figure 6 Production of Atlantic salmon from 2005 to 2017 .............................................. 73 viii List of Abbreviations APSTC Association of Producers of Salmon and Trout in Chile CORFO Production Development Corporation FAO Food and Agriculture Organization HI Historical Institutionalism IADB Inter-American Development Bank IFOP Fisheries Development Institute INTESAL Salmon Technology Institute ISA Infectious Salmon Anemia ITT International Telephone and Telegraph Corporation JICA Japanese International Cooperation Agency LGPA General Law of Fisheries and Aquaculture NSA National Society for Agriculture SAG Agricultural and Livestock Service SERNAPESCA National Fisheries and Aquaculture Service SUBPESCA Undersecretariat of Fisheries UN United Nations UNCTAD United Nations Conference on Trade and Development ix Chapter 1 – Introduction Salmon is not an indigenous species to Chile, yet in less than two decades, Chile moved from an inexistent salmon aquaculture production to become a world leader. Salmon farming in Chile started its development
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