The fight against illegal, unreported and unregulated (IUU) fishing activities has recently become a high priority in the international fisheries management agenda. While a number of academic contributions have sought to improve the understanding of the problem, most remain limited in scope. To help policy makers obtain a more comprehensive picture of the situation, the OECD Committee for Fisheries recently completed a study addressing the full economic dimensions of IUU fishing in an integrated manner. This paper presents the analytical framework developed by the OECD as well as some of the key results of the study regarding the causes of and the potential solutions to this widespread problem.
While the problem of fishing activity regarded as illicit is scarcely new [1], only recently has it become a major international issue. One reason is the recognition by the international community of the extent of the problem, which affects both domestic waters and the high seas, as well as all types of fishing vessels, regardless of their size or gear. The international community has also become increasingly concerned by the contribution of illegal, unreported and unregulated (IUU) fishing to the downward trend in stock status observed since the 1950s. In this context, any behaviour likely to undermine endeavours to manage and rebuild fish stocks, such as IUU fishing, is no longer considered as economically and politically acceptable. Indeed, some countries, such as Australia, consider the breach of sovereignty associated with IUU fishing operations as a particularly sensitive issue [2].
Following the first major international initiative to deter and eliminate IUU fishing, the 2001 FAO International Plan of Action [3] and [4], the necessity to curb this economically, environmentally and socially harmful activity has been echoed and reinforced in various international fora. These include the 2002 World Summit on Sustainable Development (the WSSD, where governments called for the control of IUU by 2004 [5]), the 2003 G8 (the Action Plan of which urged for the elimination of IUU fishing) and the UN General Assembly. The subject has also received some interest from the academic community [6], [7], [8], [9] and [10]. However, most of the papers published to date either remain at a theoretical level or focus only on specific, selected facets of IUU fishing. For example, Erceg [10] focuses her analysis on the controls imposed by State on their nationals as a way of deterring IUU fishing.
Pursuing an alternative strategy, the OECD Committee for Fisheries recently completed a major 3-year study, the explicit objective of which was to address the full economic dimensions of IUU fishing in an integrated and comprehensive manner [11]. The rationale for this decision was to make sure that all underlying causes of IUU fishing have been correctly identified in order to select the most appropriate solutions to the problem. This work has been partly based on the outcome of an international workshop hosted in April 2004 by the OECD Committee for Fisheries, which sought to present empirical evidence on the nature and extent of IUU activities. Participation came from governments, IGOs, NGOs, RFMOs and academia [12], [13], [14], [15] and [16].
The aim of this paper is to present the analytical framework used in the OECD study (see [11]), which elaborates on the model developed by Charles et al. [6]. Drawing on a systematic comparison between fishing operators complying with regulations and IUU fishing operators, the following section describes the major causes for engaging in IUU fishing activities. The final section explores actions that could be taken to modify IUU operators’ incentives structure by reducing revenues from IUU fishing, increasing the operating costs for IUU activities, increasing the capital costs of IUU/FOC vessels, and by increasing the cost of risk of engaging in IUU activities.
IUU fishing is a worldwide problem, affecting both domestic waters and the high seas, and all types of fishing vessels, regardless of their size or gear. IUU fishing is harmful to current global fish stocks and undermines the effectiveness of measures adopted nationally, regionally and internationally to secure and rebuild fish stocks for the future. Hence, IUU fishing not only generates harmful effects on economic and social welfare, but also further reduces incentives to comply with rules.
In order to combat the different types of IUU fishing activities, different responses and widely different actors are involved. This paper shows that multiple possibilities exist to address the multiple roots of the problem, provided that measures are effectively applied. Yet, it is also recognised that every measure carries a cost and further investigation is, in general, needed to clarify each respective benefit.
Some responses rely on the national legal framework which may need improvement; others rely on international frameworks, as is the case with RFMOs. The analysis, for instance, shows that whereas increasing penalties and the detection likelihood can be a way forward to reduce illegal fishing, limitations remain when the crew involved in IUU fishing activities originates from low income countries. In such a situation, alternative measures must be worked out, including the establishment of cooperation and development programs and the identification of the beneficial owner of the vessel(s).
Recognising the limited success that “traditional” control and surveillance-like measures have had in the past in addressing those specific unregulated fishing activities, this paper proposes several alternative or complementary initiatives that can be envisaged, such as the use of non-discriminatory trade measures and the extra-territorial application of domestic sanctions. It also suggests that, in general, new forms of governance of the high seas should be considered to improve the effectiveness of the current legal framework.
