7. Globalization and Fisheries: Welfare Implications of Export Trade in Asia

Global market integration has accelerated in recent decades, and with it the supply of exported fish has shifted from developed to developing countries. Fish is also important for the diets and livelihoods of the poor in developing countries. Hence, concerns have been raised about the impact of export-oriented fisheries on the poor. The first concern is that, on the demand side, export-oriented fisheries are diverting domestic production from meeting domestic food requirements. We examine this objection from the viewpoint of the nine top fish producers in developing Asia, based on supply and demand projections from a multi-market equilibrium model of the fish sector. Over the next 15 years, fish consumption per capita is projected to rise in most of these countries, even as export prices are expected to climb. On the other hand, a decline in export price growth may cause a minor to dramatic fall in net export growth, with only a minimal increase in domestic consumption growth. Hence, imposing disincentives or restrictions on exports may forfeit large gains on the supply side, with negligible gains in domestic consumption. The second concern is that, on the supply-side, benefits from export-oriented fisheries are reaped mostly by big, commercial producers. It is true that poor fishers, fish farmers, and traditional processors are marginalized in the export chain, due to the technical and financial requirements of meeting modern quality and food safety standards. However, rather than restrict globalization, the response should be to make the export chain more inclusive, by rationalizing regulatory standards in developed countries, as well as by organizing and enabling small-scale enterprises in developing countries to compete against large-scale farms or vertically integrated processors.