Poverty Reduction through Sustainable Fisheries: Emerging Policy and Governance Issues in Southeast Asia

1. Introduction and Synthesis

INTRODUCTION AND SYNTHESIS 1 1 INTRODUCTION AND SYNTHESIS Roehlano M. Brionesa and Arnulfo G. Garciab OVERVIEW Fisheries, which cover both aquaculture and capture of wild stocks, are an important source of food and livelihood for the poor in Southeast Asia. In this region, fish consumption provides a large share of animal protein to the average person’s diet, from 40 per cent in the Philippines and Thailand to 57 per cent in Indonesia and Cambodia. Low-value fish, in particular, is a staple in the diets of the poor. Fisheries comprise a fast-growing subset of agriculture. Production growth in the region has averaged 4.4 per cent annually from 1980-2004, almost twice the 2.7 per cent production growth of other agricultural products over the same period. Moreover, the share of fish in all agricultural exports in the region reached 19 per cent in 2004, which is triple of 1980’s share of only 6 per cent. In addition, the value of fish exports in 2004 ($9.5 billion) exceeded that of fruits and vegetables ($4.1 billion), cereals ($3.9 billion), coffee, tea, and cocoa ($2.7 billion), and poultry ($0.7 billion; all data from FAO, 2006). Despite its importance, the fisheries sector remains a neglected area in agricultural research and development, long dominated by crop agriculture. Fortunately, in recent years, this neglect is being corrected, as the economic contribution and dynamism of fisheries have become more prominent. However, expectations of sustained growth for fisheries-dependent a Research Fellow II, Philippine Institute for Development Studies, Philippines. (Corresponding Author. Email: ) b Manager, Research and Development Department, SEARCA, Philippines. ROEHLANO M. BRIONES AND ARNULFO G. GARCIA 2 communities are tempered by concerns about the precarious state of aquatic resources. The links among fisheries, poverty, and sustainability raise a host of important and open questions for policy research. To address these concerns, a regional conference was held under the auspices of the Southeast Asian Regional Center for Graduate Study and ResearchinAgriculture(SEARCA),theWorldFishCenter,andthePhilippine Council for Aquatic and Marine Research and Development (PCAMRD). The conference brought together leading regional and international fisheries policyexpertsandpractitioners.Theconferencereviewedexistingknowledge and identified priority research areas and policy directions for increasing and sustaining benefits from fish production for the rural poor. Findings and recommendations would contribute towards region-wide research and capacity-building program on fisheries and rural development by SEARCA and its partners. This introductory paper synthesises the salient findings of the papers in this volume, as well as the priority issues for policy research in Southeast Asian fisheries. FRAmEWORk As seen in Figure 1.1, the “circular flow” captures, in a simplified way, how aquatic resources generate benefits within a market economy. Households andproducersrepresentthetwofundamentalentitiesofaneconomicsystem. Households obtain aquatic products from producers who, in turn, obtain resources through the allocative decisions of households. In the upper loop, production and distribution of goods are driven by market forces (i.e., supply and demand) at the local, national, and international levels. As a result, producers receive payments for their output from households. In the lower loop, the allocation of resources to production is determined by access rights, institutional arrangements, and the management regime. Consequently, households receive payments from producers for the resources (natural as well as labour and capital) provided to producers. Hence, households, on a micro-perspective, obtain benefits from fisheries through consumer products, mainly food and livelihood. INTRODUCTION AND SYNTHESIS 3 Figure 1.1 Flow of product and value in aquatic resource systems At the market level, adjustments in supply, demand, and prices, both in the domestic and international arena, affect fisheries and the well-being of fish-dependent populations. It is through these market variables that tax, subsidy, and trade policies (both domestic and foreign) can have far-reaching impacts on food and livelihoods derived from fisheries. The participation of the poor in fisheries depends critically on the nature of the technology that is used. The poor may have problems gaining access to certain types of technologies due to requirements for investment, knowledge, or skill, combined with credit market failure, and insufficient human and physical capital. The issue of inclusion encompasses not just the initial production source, but also the rest of the supply chain. The way value-added concentrates across the chain – and the segments of the chain where the poor may be found – are factors in determining the spread of benefits from economic expansion of fisheries. Another factor that determines the...