Question

1. This question is on the economics of fisheries.

1. [4 marks] With the aid of a suitable fully labelled diagram, explain how efficiency can be attained in the management of fisheries?
2. [2 marks] How would a decrease in the cost of harvesting fish affect the rate of harvesting fish?
3. [5 marks] Define the term “open access resource” and explain what often goes wrong in open access fisheries? Do these problems arise in all fisheries?
4. [3 marks] Propose some policies for improving the management of open access fisheries.

Answer 1

a) The management of fisheries can be more efficient if the following factors are taken into consideration .

1. The biological constraints should be identified and the potential yield has to be estimated.

2. Through data collection and fisheries assessment targetreference point needs to be established.

3. Management strategy should be adjusted according to the identified and monitored environmental impacts.

4. Goals and objectives set must be realistic.

5. There should be controls on fishing efforts and capacity.

6. Risk assessment and management must be done.

7. Access rights must be established and enforced.

b) The decrease in the cost of harvesting will increase the rate of harvesting.

c) Open access resource is a limited resource that appears to be limitless to each individual. One use the resource without taking into account the effect of their use on others.

Under these conditions the amount of fishing is greater than the socially optimal level. This leads to depletion of fish stocks. Profits from the activity is also dissipated.

d) The policies for improving the management of open access fisheries are

1. Limiting the season

By restricting the time of harvesting over exploitation can be reduced to a great extend.

2. Taxing

This makes the fishermen to pay an amount more than direct cost as tax

3. Establishing common ownership

Common ownership can be employed by creating fishing cooperatives . This will induce the fishermen to use the resources efficiently.