Cover
FAO FISHERIES TECHNICAL PAPER 245 FIPP/T245






Territorial use rights and economic efficiency: the case of the Philippine fishing concessions




Table of contents

by
Ian R. Smith
Senior Scientist and Director
Traditional Fisheries Programme
International Centre for Living
Aquatic Resources Management (ICLARM)
Makati, Metro Manila, Philippines

Theodore Panayotou
Visiting Professor of Resource Economics
and A/D/C Associate for Thailand
Agricultural Development Council
Department of Agricultural Economics
Kasetsart University
Bangkok, Thailand



Reprinted 1992

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities or concerning the delimitation of its frontiers or boundaries.

M-43
ISBN 92-5-102137-6

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FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 1992
© FAO


PREPARATION OF THIS DOCUMENT

This document was prepared by ICLARM for the FAO Workshop on Territorial Use Rights held in Rome, 6–10 December 1982, and is being published as part of a series of technical papers relating to the “Practices of Fisheries Management”.

ACKNOWLEDGEMENT

We would like to thank Ms. Luz Yater, ICLARM research assistant, for collecting the field data reported in this paper and the personnel of the Bureau of Fisheries and Aquatic Resources (BFAR), Region VI (Western Visayas) for their assistance and cooperation. Also, we would like to thank John Maclean of ICLARM who kindly critiqued earlier drafts of this paper and David Korten of USAID for his suggestions. Responsibility for the final contents, however, rests with the authors.

Distribution: For bibliographic purposes this document should be cited as follows:
FAO Fisheries Department
FAO Regional Fisheries Officers
Directors of Fisheries
Selector SM
Fisheries Management Selector
Authors
Smith, I.R. and T. Panayotou, 1984 Territorial use rights and economic efficiency: the case of the Philippine fishing concessions. FAO Fish.Tech.Pap.,(245): 17 p.
ABSTRACT
This paper discusses the mechanics and implications of municipal concessions in the Philippines which govern the use of municipal waters for fish corrals, oyster culture beds and gathering of milkfish fry. These concessions or territorial use rights are awarded annually by the resource owner (the municipality) to the highest bidder. In the case of milkfish fry gathering, the concessionaire assumes monopsonist rights of first purchase from fry gatherers. The implications of this system for economic efficiency and equity are discussed theoretically with supporting data from milkfish fry concessions in Antique Province. It is concluded that the system increases economic efficiency in resource use and generates significant income for municipalities which they can then redistribute as they see fit, and therefore not necessarily for the special benefit of fishermen.

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CONTENTS

1.INTRODUCTION
2.MUNICIPAL MILKFISH FRY GATHERING CONCESSIONS
3.A THEORETICAL MODEL OF THE CONCESSION SYSTEM
4.EMPIRICAL EVIDENCE IN SUPPORT OF THE THEORETICAL MODEL
5.DISCUSSION AND CONCLUSIONS
6.REFERENCES