The management of fisheries by catch quotas has a long history
in a number of areas and has probably been the most common method of controlling
exploitation of fish stocks. However, in recent years, management by global
Total Allowable Catches (TACs) has not been able to address the rapid
improvements in harvesting technology and has therefore not generally been
successful in limiting fleet capacity. This drawback, combined with practical
difficulties of monitoring and enforcing TACs, has resulted in a poor record of
achieving fish stock sustainability and of optimizing the economic performance
of fisheries. However, recent advances in and adoption of the techniques of
management by Individual Transferable Quotas (ITQs), which provide greater
incentives for sustaining and optimizing economic performance of fisheries, have
again focused attention on quota management. The increasing interest in ITQ
management has, however, not been matched by the availability of a theoretical
framework for quota management that considers the various biological, economic
and financial influences as part of an integrated management system. This paper
is the first of a projected series that not only examines the theoretical basis
of quota (particularly ITQ) management as an integrated system, but also draws
on practical experiences in various parts of the world to provide guidance for
agencies examining quota management in fisheries. The present paper covers the
biological, economic and financial issues that need to be considered in setting
the TAC and in allocating the TAC both among participants in the fishery and
between the participants and the regulatory agency. Later papers will address
administration of the quota management system, compliance and surveillance
Issues and secondary markets for quotas.
