Public Disclosure Authorized THE POLITICAL ECONOMY OF NATURAL RESOURCE USE LESSONS FOR FISHERIES REFORM Public Disclosure Authorized April 2010 Global Program on Fisheries (PROFISH) AGRICULTURE AND RURAL DEVELOPMENT Sustainable Development Network Public Disclosure Authorized THE WORLD BANK Washington DC Public Disclosure Authorized THE POLITICAL ECONOMY OF NATURAL RESOURCE USE LESSONS FOR FISHERIES REFORM Report prepared for Global Program on Fisheries (PROFISH) EDITED BY Donald R. Leal Property and Environment Research Center © 2010 The International Bank for Reconstruction and Development / The World Bank 1818 H Street, NW Washington, DC 20433 Telephone: (202) 473-1000 Internet: www.worldbank.org/rural E-mail: [email protected] All rights reserved. The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. 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April 2010. Agriculture and Rural Development Department. The World Bank. Washington DC. Contents List of figures ii List of tables iii Abbreviations and acronyms iv Preface vii Acknowledgments viii Chapter 1 New directions in fishery management 1 Anthony Scott Chapter 2 African fisheries development aid 21 Stephen Cunningham and Arthur E. Neiland Chapter 3 The political economy of institutions and resources 45 James A. Robinson Chapter 4 Legal issues in fisheries reform: Lessons from resource management 57 Barton H. Thompson, Jr. Chapter 5 The allocation and dissipation of resource rents: Implications for fishery reform 79 Terry L. Anderson and Gary D. Libecap Chapter 6 Governance and fiscal requirements for marine resources management 97 Jon G. Sutinen Chapter 7 Pathways to fishery reform: Accounting for political economy 119 Robert T. Deacon Chapter 8 The political economy of development aid and marine fisheries reform 143 Mick Moore Chapter 9 The political economy of wildlife management in East and Southern Africa 157 Fred Nelson Chapter 10 Brazilian land policy reform 175 Bernardo Mueller Chapter 11 Australia’s water reform effort: Progress and prospects 193 Jeff Bennett Chapter 12 Lessons for fisheries reform and development assistance 207 Donald R. Leal About the contributors 223 i List of figures 2.1 Fisheries development aid projects worldwide by number and value, 1973–2001: 34 Number of projects 2.2 Fisheries development aid projects worldwide by number and value, 1973–2001: 35 Total value 2.3 Fisheries development aid in Africa by number of projects and value, 1973–2001: 35 Number of projects by sector 2.4 Fisheries development aid in Africa by number of projects and value, 1973–2001: 36 Value of projects 2.5 Policy projects in Africa by type, 1973–2001 40 2.6 Policy projects in Africa by value, 1973–2001 41 6.1 Fisheries governance system 101 9.1 Tourism receipts in sub-Saharan Africa in total, and in East and Southern Africa 160 combined, from 1990 to 2005 9.2 Annual revenue from trophy hunting in sub-Saharan African countries 160 9.3 Levels of corruption and strength of the rule of law in East and Southern African 166 countries, with New Zealand also included for comparative purposes ii List of tables 2.1 Fisheries development aid—Top 10 global donors 31 2.2 Fisheries development aid—Top 10 global recipients 32 2.3 Fisheries development aid in Africa—Top 10 donors 32 2.4 Fisheries development aid in Africa—Top 10 recipients 33 4.1 Definitional elements of property rights in resources 65 5.1 Tobacco Trust Fund allocations 87 iii Abbreviations and acronyms ABC allowable biological catch ADMADE Administrative Management and Design for Game Management Areas AERE Association of Environmental and Resource Economists AfDB African Development Bank ASDF Asian Development Fund BDP Botswana Democratic Party BIDS Bangladesh Institute of Development Studies CAMPFIRE Communal Areas Programme for Indigenous Resources CAS Country Assistance Strategy CDC Center for Disease Control and Prevention CFA Conservation Finance Alliance COAG Conference of Australian Governments CSEC Challenger Scallop Enhancement Company CSP Country Strategy Paper DAC Development Assistance Committee DFID United Kingdom Department for International Development DWF distant-water fleet ECPA Electric Consumers Protection Act of 1986 EPA Environmental Protection Agency EU European Union FAO United Nations Food and Agriculture Organization FCA fisheries cooperative association FERC Federal Energy and Regulatory Commission FMO fishery management organization GB Grameen Bank GDP gross domestic product GEF Global Environment Facility GL gigaliter GNI gross national income GTZ German Development Agency ha hectare IBRD International Bank for Reconstruction and Development of the World Bank Group iv ICRG International Country Risk Guide IDA International Development Association of the World Bank Group IFC International Finance Corporation IFPRI International Food Research Policy Institute IIFET International Institute for Fisheries Economics and Trade IMO International Maritime Organization INCRA Instituto Nacional de Colonização e Reforma Agrária (Brazilian National Institute for Colonization and Agrarian Reform) ITQ individual transferable quota IUCN International Union for Conservation of Nature IUU illegal, unreported, and unregulated IVQ individual vessel quota kg kilogram(s) Kt kiloton(s) m meter(s) MCA Multi-Criteria Analysis ML megaliter MSA Master Settlement Agreement of the Tobacco Trust Fund MSC Marine Stewardship Council MST Movimento Sem-Terra (Brazilian landless peasants movement) NAQS National Ambient Air Quality Standards NEPAD New Partnership for African Development NGO nongovernmental organization NOAA National Oceanic and Atmospheric Administration NSW New South Wales NWC National Water Commission NWI National Water Initiative OD Official Aid ODA Official Development Assistance OECD Organisation for Economic Co-operation and Development OOF Other Official Flows PAF Partnership for African Fisheries PERC Property and Environment Research Center PLAID Project-Level Aid v PROFISH Global Program on Fisheries of the World Bank Group PRSP Poverty Reduction Strategy Paper RBM rights-based management RCRA Resource Conservation and Recovery Act RDC Rural District Council RIS Regulatory Impact Statement SCS Scientific Certification Systems, Inc. SOFIA The state of world fisheries and aquaculture SSA sub-Saharan Africa SWAPO South West People’s Organization TAC total allowable catch TNC The Nature Conservancy TURF territorial use right UN United Nations UNCLOS United Nations Conference on the Law of the Sea UNEP United Nations Environmental Programme UNIDO United Nations Industrial Development Organization USAID United States Agency for International Development USSR Union of Socialist Soviet Republics WCPA World Commission on Protected Areas WSSD World Summit on Sustainable Development ZAWA Zambian Wildlife Authority vi Preface The release of Sunken billions: The economic justification for fisheries reform has drawn renewed attention to the enormous loss of wealth suffered in fisheries each year due to weak fisheries governance and the need for fundamental fisheries reform. Such reform calls for directly and effectively addressing the “tragedy of the commons” plaguing the world’s fisheries, whose symptoms include persistent overfishing and fleet overcapitalization, and addressing the political economy challenges of developing country-specific pathways of reform. Despite growing evidence of success in selected fisheries, less than two percent of the world’s fisheries have actually undergone effective reform because of these challenges. While Sunken billions paints a very dismal picture of the world’s fisheries, it does have a silver lining. It is estimated that the world’s fisheries could generate at least US$50 billion per annum and the economic benefits generated could be much higher if management systems were established to enable investment in growing this important economic sector in a sustainable manner. Equally important, the potential pay-off from economic fisheries reform is not only globally significant for the sector, it is crucial for enhancing economic growth and alleviating poverty in developing countries with significant fisheries assets. This report seeks to move this debate forward by discussing key lessons drawn from reform experience in the wider natural resource sector that might inform successful reform in fisheries. This report is a compilation of 12 papers prepared by acknowledged international