Sociology

The article entitled Not So Sure About The Shore is a very interesting topic on fishing. It gives us knowledge on fishing as a job and how its affects the economy and the people themselves. In this paper, we will discuss a reply or conclusion based on the article mentioned. But prior to that, we must discuss on the concept of individual transferable quota or ITQ which is the main topic of the article. According to the CRS Report for Congress entitled Individual Transferable Quotas in Fishery Management by Eugene H. Buck, Senior Analyst in Natural Resources Policy, an individual transferable quota (ITQ) is  a given or assigned privilege of having a specified part and parcel of the total yearly fish catch in the form of quota shares, as against to the conventional open-access method to commercial fisheries.  It is also one means used in fisheries to provide limit to the volume of the harvest to sustainable degrees (Buck, 2009).  Generally transferable, ITQ certificates can be sold or bought by fishing vessel owners from each other, as it is a privilege to catch a share of the total allowable catch of fish in a particular year.

Although it is originally intended to reduce overcapitalization, promote conservation of stocks, improve market conditions, and promote safety in the fishing fleet, ITQ has also been heavily criticized for increasing the incentive for fishermen to file bogus reports and  high-grade  their catch.  Processors and wholesalers could also obtain monopoly control over the landings.  It could also discourage new players into the fishery due to the additional capital investment required to purchase or lease quota shares (Karlsdotter, 2008).

International ITQ programs are said to be very effective in reducing and eliminating overcapitalization, as well as in increasing profits and overall economic efficiency.  In a study on the Icelandic ITQ regime conducted by Liu Xinshan of the Dalian Fisheries University in China, it has been observed that the effect of Icelandic ITQ is positive.  According to Xinshan s Implementation of Individual Transferable Quota system in Fisheries Management The case of the Icelandic Fisheries,  a well-explained and implemented ITQ system can meet the biological and economic objectives of fisheries management.   It is with this ITQ management that the state of marine resources has started to recover and the economic efficiency has been improved dramatically.

There are flaws, however, that are present in this system.  One is that it does not create a private property right over the fish stock.  This is one of the reasons why the system is being fiercely attacked in Iceland, plus it can also encourage the concentration of quotas and cause a higher rate of unemployment, resulting to the destruction of the country s economy.

Anna Karlsdottir s paper entitled Not Sure about the Shore Transformation effects of Individual Transferable Quotas on Iceland s Fishing Economy and Communities focuses on the response of Icelandic fishery companies to a  dynamic and changed structural environment, as well as their role in shaping the new sector with special emphasis on the economic rationale of leading seafood companies.  According to the study, ITQ has led to a drastic reduction of jobs in the fishery processing, eventually resulting to permanent closures of processing activities in major communities.  There has also been a significant decrease in the need for labor due to the increased productivity and technological innovation and automation.  The implementing body fails to see that young and skilled labor is not attracted to be part of the sector, as well as communities and women.  There also seems to be a lock-in dependence in the economists  perception of the system since offshore fleet activity has led to a more monotonous organization.  A cyborgization of fisheries also seems to occur, which might have contributed to the creation of a less attractive work environment and recruitment problems.

Having an economy that heavily depends on the fisheries, Iceland has around 80 percent of its exports dedicated to fish products alone, and another 50 percent for foreign exchange earnings.  The fishing industry contributes about 45 percent to the country s GDP, which means that any fisheries  policy can have significant implications to the economy.  Anything that affects the fishing industry has a regional impact that frequently signals political repercussions, resulting to fisheries management being a major topic in public discussions, as well as having a great influence in formulating economic and regional policies.

Even with the loss of fish diversity around the Icelandic coast, it is still the main key to the reshaping of fisheries in the nation s society.  Economic changes can lead to very high opportunity cost for the culture and the community.  As stated in the study,  a community, if fortunate, eventually emerges as assets for coastal tourism placing emphasis on leisure or other cultural characteristics.  No one can really be sure of what will happen once ITQ becomes fully integrated in the Icelandic way of fishing.

Finally, it was proven that the fishing industry has been considered as one of the most relevant business endeavors in Iceland. The policies for such activity has been provided by the government in order to aid fishermen and investors for that matter. Hence, if Icelanders are not so sure with the shore, they just need to work hard to improve the fishing industry in all related aspects.