31383 World Bank Technical Paper Europe and Central Asia Environmentally and Socially Sustainable Development Series Public Disclosure Authorized A Sector Study of the Joint Economic Research Program The World Bank and the Government of Kazakhstan INNOV ATIONS IN FISHERIES MANA GEMENT FOR KAZAKHSTAN Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized William Sutton Simon Diffey Tomislav Petr Kazakhstan Fisheries Sector Study • World Bank/Government of Kazakhstan 1 Final Report • May 2005 2 Standard Disclaimer/Copyright Statement Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Kazakhstan Fisheries Sector Study • World Bank/Government of Kazakhstan 3 CURRENCY EQUIVALENTS (As of January 15, 2004) Currency Unit = Tenge (KZT) US$1 = KZT 142 FISCAL YEAR January 1 to December 31 ACRONYMS AND ABBREVIATIONS ACP Agricultural Competitiveness Project APPAP-II Agricultural Post Privatization Assistance-II B/Z Bukhtarma/Zaisan CEP Caspian Environment Program CFP Common Fisheries Policy CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora CN Concept Note EEZ Exclusive Economic Zone EU European Union FAO Food & Agriculture Organization of the United Nations FC Fisheries Committee FMIS Fisheries Management Information System FPIP Fisheries Program Implementation Plan FRPC Fisheries Research and Production Center Final Report • May 2005 4 FSST Fisheries Sector Study Team GDP Gross Domestic Product GEF Global Environment Facility GIS Geographic Information System GOK Government of Kazakhstan HACCP Hazard Analysis Critical Control Points IUU Illegal, Unreported and Unregulated JERP Joint Economic Research Program JSDF Japanese Social Development Fund KZT Kazakhstan Tenge (KZT 150 = US$ 1) LIL Learning and Innovation Loan MCS Monitoring, Control and Surveillance MEP Ministry of Environmental Protection MOA Ministry of Agriculture MOEBP Ministry of Economy and Budget Planning MOF Ministry of Finance MOT Ministry of Transportation mt metric ton NGO Non-Government Organization OECD Organization for Economic Cooperation and Development SOE State Owned Enterprise TURFS Territorial Use Rights Fishery System UK United Kingdom US United States WTO World Trade Organization Kazakhstan Fisheries Sector Study • World Bank/Government of Kazakhstan 5 Table of Contents Foreword ......................................................................................................................... 8 Executive Summary ........................................................................................................ 9 How Can the Sector Reach its Potential? .................................................................... 11 1. Setting the Scene .................................................................................................. 15 A. The Sector Has Good Potential ............................................................................... 15 B. There are Market Opportunities ............................................................................... 18 C. Priorities for Development ....................................................................................... 20 D. More Public Involvement is Necessary to Address These Priorities ......................... 21 2. Ensuring Sustainability of Capture Fisheries ..................................................... 24 A. Threats to Capture Fisheries ................................................................................... 26 B. The System for Allocating Use Rights ...................................................................... 31 C. The Legal Environment ............................................................................................ 33 D. Monitoring, Control and Surveillance ....................................................................... 35 E. An Innovative Approach to Management: Co-Management ...................................... 38 F. Preservation of Threatened Stocks........................................................................... 42 3. Expanding Markets and Increasing Value Added .............................................. 47 A. Development of the Processing Sector.................................................................... 47 B. Increasing Private Investment................................................................................... 49 C. Increasing Returns to Fishers from the Market ......................................................... 50 4. Investing in technology ........................................................................................ 52 A. Improving Hatchery Production ................................................................................ 52 B. Promoting Aquaculture............................................................................................. 54 C. Developing Small Water Bodies .............................................................................. 56 D. Exploiting Under-developed Aquatic Resources ...................................................... 57 5. Reforming the Administrative Organization ........................................................ 60 A. Improving the Management Structure .................................................................... 60 B. Improving Management Capacity ............................................................................ 63 C. Research ................................................................................................................. 64 D. Public Expenditures in the Fisheries Sector ............................................................ 66 6. Annexes .................................................................................................................. 73 Final Report • May 2005 6 List of Tables Table 1.1: Fisheries roles within a market economy in Kazakhstan ........................................... 22 Table 2.1: Summary of management approaches by fishery type ............................................. 40 Table 5.1: Suggested key fisheries services impact indicators and means of verifying them ... 72 List of Figures Figure 1.1: Capture fisheries in Kazakhstan by basin, share of total volume (2003) ................. 17 Figure 1.2: Total retail sales of fish and fish products in Kazakhstan, mt (1992-2002) .............. 18 Figure1.3: Consumption of fish and canned fish, kg/capita/year (1998-2002) ........................... 19 Figure 1.4: Trade in Fish and Fish Products (1995-2002) .......................................................... 20 Figure 2.1: Official fish catches in Kazakhstan (1997-2003) and estimated true catch for 2002, ‘000 mt...................................................................................................... 21 Figure 2.2: Sturgeon quotas and actual catches in the Ural-Caspian basin Kazakhstan, mt .... 22 Figure 2.3: Species composition of catches in Lake Balkhash, mt (1930-2000) ....................... 23 Figure 3.1: Volume of processed fish, mt (1998-2002) ............................................................... 47 Figure 3.2: Pike-perch price structure by basin in 2003 (KZT/kg) .............................................. 51 Figure 5.1: Republican fisheries services expenditures and share of national GDP (1999-2004) .................................................................................................................................. 71 List of Boxes Box 2.1: What do we mean by sustainable fisheries management? .......................................... 24 Box 2.2: Code of Conduct for Responsible Fisheries ................................................................. 25 Box 2.3: The Syr Darya Control and Northern Aral Sea (SYNAS) Project .................................. 28 Box 2.4: Case study—Lake Balkhash fishery ............................................................................. 29 Box 2.5: Case study—Mnemiopsis in the Black Sea and its impact on fish ............................... 31 Box 2.6: Examples of various fisheries control techniques ........................................................