Introduction

Most SRFC member countries have signed fisheries agreements with distant water fishing nations, through an array of agreement types, ranging from private to private types of agreement to agreements concluded between governments and block of countries such as the European Union. They all represent a source of foreign exchange for the coastal state.

Though there are variations between countries with respect to the level of the relative contribution of fisheries agreements to treasury, this contribution generally represents an important element of government finance. However, part of the financial compensations flowing from these agreements are not credited to treasury, but go directly to the institutions in charge of managing the sector.

Investment budgets and, in some cases, the operating budgets of the fisheries administration, research, and surveillance departments present a relatively high level of dependence with respect to fisheries agreements. It appears, indeed, that 75 to 100% of the investment budgets of the Fisheries Departments, in countries of the sub region, are dependant on targeted actions funds of the fisheries agreement with the European Union. This financial dependence is expected to generate major constraints in terms of organisational freedom vis-à-vis fisheries agreements and commercial partners.

Issue-problem

This dependence poses several fundamental problems:

1. Institutions getting used to the allocation of certain budgets and their resulting unwillingness to relinquish them by terminating the agreement;
2. The limited flexibility of institutions which strongly depend on decisions taken by a single foreign partner;
3. The lack of sectoral coherence, owing to the fact that the negotiation of fisheries agreements does not necessarily pay due attention to the objectives of the fisheries policy, but mostly to the financing of sectoral institutions.
4. The progressive financial disengagement of the State whilst increasingly entrusting foreign partners with the financial burden;
5. The de-structuring of political & administrative processes by giving special weight to the desiderata of foreign partners.

The new generation of European Union fisheries agreements sets out to reinforce this financial dependence of national institutions on fisheries agreements. The interference of the EU and other blocks or DWFNs, in the formulation and the running of national fisheries development programs, exposes as many opportunities as it does constraints. Coastal States face the threat of becoming more and more dependent on money and on the presence of fishing vessels from distant water fishing nations operating in the sub region.

The groundwork that is proposed considers alternatives to the mechanisms that generate financial dependence, with regards to the functionality and efficiency of national institutions. The work is structured by two major types of activities. The first is a study on dependence and its effects, the second is the active participation of national institutions in the process of establishing the facts and elaborating alternatives.

Objective

As a first step, the objective is to study the phenomenon of financial dependence which, until recently, was considered a taboo subject, and thus of ill-understood magnitude and impacts. Current data suggest that the effects of the direct and growing financial dependence of financial institutions vis-à-vis certain fisheries agreements further limit the flexibility of coastal countries to properly assess their options, and to change both strategies and partners, in the allocation of opportunities and fisheries resources, in line with future priorities of sectoral policy.

Following a series of studies conducted in close collaboration with the administrations, a series of alternative models for the capture and channelling of fisheries agreement earnings will be designed, to enable countries to better understand their situation and adopt more robust funding mechanisms, allowing them to better negotiate the terms of access along with the related financial compensations.

Approach

The work to be done will also include a series of studies that will extend over one year, aiming at analyzing the sources, effects, impacts and alternatives to the current forms of financing. This research work will be interspersed with a number of seminars and working groups that will convene at particular crucial times, in the course of the study. The current situation, in terms of results and know-how, will thus be summarized, with a view to contributing to the progress of the overall work by providing new elements, and by taking part in the analysis and synthesis of information collected in the field.

Country reports will be made available to key sector institutions, and press releases, both at the beginning and at the end of the study process will enable the public to be informed about the analyses undertaken at the highest sub region level, concerning the links between financial dependence on fisheries agreements, and the new international trade developments and structural adjustments within the sector.

Expected results

New information and the analysis conducted will enable the States to explore and adopt more solid sectoral funding mechanisms that will enhance their flexibility and guarantee their sovereignty with respect to granting and distributing fishing rights to foreign operators.