An Empirical Analysis of the Social and Ecological Outcomes of State Subsidies for Small-Scale Fisheries: A Case Study from Chile

Abstract

ABSTRACT. Small-scale fisheries, which are often associated with low levels of income and poor infrastructure, receive substantial funding from governmental institutions worldwide. Very few empirical studies have explored the outcomes of these investments for people and ecosystems. This paper presents the findings of a study aimed at assessing the social and ecological outcomes of government subsidies for small-scale fisheries through an analysis of 32 fishing villages, referred to as caletas, in Chile over a 12-year period. Findings suggest that the funding appears to be higher for those caletas with the highest value landings and is unrelated to socioeconomic need or poverty; that caletas in rural areas receive less investment than their urban counterparts; that funding did not lead to a positive improvement in either the landings or income for fishers; and, finally, that funding appears to be a consequence of, rather than a reason for, the ecological and productive history of fisheries. These findings challenge two assumptions informing the debate about subsidization in small-scale fisheries: first, that subsidization will lead to over-exploitation, and second, that subsidies are supplied to alleviate poverty.

Contribution of Subsidies and Participatory Governance to Fishers' Adaptive Capacity

“…In addition, our review of the allocation of fisheries subsidies in the broader Baja California Sur region, based on the official data, suggests that during the 2007 to 2012 time period, fishers from La Paz received less than 10% of the total amount (US$ 500,000) allocated to such subsidies programs, while fishers from the northwestern part of the state, who are better organized and have developed close relationships with authorities at the national level, received considerably higher government support over the same period (CONAPESCA, 2015). Similar patterns of unequal access to government support have also been observed in other Latin American countries such as Chile (Mondaca-Schachermayer et al., 2011).…”

“…For example, some rough estimates suggest that a small-scale fisher receives almost 200 times less fuel subsidies a year when compared with the average industrial fisher (Jacquet & Pauly, 2008). According to Mondaca-Schachermayer et al (2011), the main focus of the subsidies in small-scale fisheries sector is to alleviate poverty and to improve both social and ecological sustainability of the fishery either through specific programs (e.g., sustainable livelihoods) or through general funding schemes (e.g., credits and loans). Some fishery subsidy programs have been specifically designed to strengthen fishers' adaptive capacity and the social and ecological sustainability of their fisheries, in both developed and developing countries (Markus, 2010;Robles-Zavala, 2014).…”

Integrating human and ecological dimensions: The importance of stakeholders’ perceptions and participation on the performance of fisheries co-management in Chile

“…In addition, accessibility (e.g. those MEABR in isolated location or with easier access) has had implications on MEABR performance, as those MEABRs near urban centers have received more funding from governmental institutions [ 105 ], but are also more vulnerable to illegal fishing [ 4 , 77 , 106 ]. Other factors affecting MEABR performance are economic profitability and the biological productivity of the assigned MEABRs [ 104 ].These conditions influence fishers’ relationship to resources, organization, functioning, and MEABR development.…”

Subsidies—Help or Hurt? A Study from Vietnamese Fisheries

“…These data have been used by many researchers for important empirical publications (e.g., Yagi, Senda, and Ariji 2008;Sumaila, Dyck, and Cheung 2013;Sakai 2017). Surveys are another data source (e.g., Nguyen and Flaaten 2016 for Vietnamese fisheries) or data collected directly from national or local agencies (e.g., Yagi, Ariji, and Senda 2009;Schachermayer et al 2011). A noteworthy study done by Sakai, Yagi, and Sumaila (2019) provides a nice overview of existing studies, both theoretically and empirically, on fisheries subsidies and discusses their roles in the policy-making process.…”

“…Increased output is also observed for fuel support schemes, but this might erode over the years (Nguyen and Flaaten 2016). Furthermore, the size of the subsidy does not determine the fisheries outcome (Schachermayer et al 2011).…”