Fish Population Dynamic and Stock Assessment

10.4.7. Methods of regulation

The question of management essentially is concerned with the means of rationalization of an open access fishery. Rationalization schemes popularly followed in fisheries management are: direct limitation of output, eumetric fishing, taxation and direct limitation of input through licensing. The merits and demerits of these schemes are dealt with below.

i. Direct limitation of output : This scheme is exemplified by the traditional closed seasons and quota system followed in many developed countries. They place a direct limitation on the output through individual quotas. Nevertheless, the scheme is disadvantageous since it is very difficult to enforce and also creates a disruption in supplies.

ii. Eumetric fishing : This scheme calls for gear restrictions to achieve a right age composition of the catch for a given level of effort. The demerit of this scheme is that it forces the fleet on to a higher cost curve dissipating thereby the potential economic benefits. No economic gains can be obtained by allowing the fish to grow to a size that is eumetric with the gear since the marginal revenue from growth is just offset by: (a) the marginal cost of programme implementation, and (b) the marginal losses to natural mortality (Crutchfield, 1979).

iii. Taxation : Taxation plays a dual role in the rationalization of a overcapitalized fishery. One of the uses of taxation is that it can act as a means of offsetting the effects of an otherwise efficient management regime (e.g., licence limitation programme) on the distribution of wealth, income and employment. A highly successful limited entry programme unaccompanied by any tax measure to capture a part of the economic rent created may effect transfer of income and wealth in a direction unacceptable to the society. Any measure that confers substantial gains on private enterprises at considerable social costs is not favoured. The major advantage of a tax on the remaining participants in an efficient fishery is its ability to convert the social costs of management to an explicit charge on the productive activity that gives rise to them. The other use of taxation is its ability to influence the level and composition of effort; it can be so devised as to convert the several types of externality plagueing an open access fishery into contractual costs to the individual decision maker.

iv. Direct limitation of input : This scheme may be implemented through a licence limitation programme which is preferred to all other schemes, for, it is easily enforcible and causes no disruption in supplies. Yet, it is confronted with certain important issues as: (a) the controversy over licensing the vessels or fishermen; (b) allocation of licences between different and conflicting interests (e.g., different gear or vessel types operating on a single stock); (c) number of licences to be made available; and (d) criteria for basing the issue of licences.