Getting the economics and the incentives right: Instrument choices in rebuilding fisheries

It is now generally agreed that all natural resources, including marine capture fishery resources, are properly regarded as “natural” capital. From this it follows that, when one talks about rebuilding capture fishery resources, one is talking in terms of a “natural” capital investment program. After discussing the basic economics underlying an optimal fisheries capital investment program, the chapter will go on the discuss the incentive structures that are to be in place, at both an intra-EEZ level, and at an international level, if the resource investment program is to be successful. This chapter will draw heavily upon work that the author has been doing for the FAO, in conjunction with The World Bank and FAO study: The Sunken Billions: The Economic Justification for Fisheries Reform.