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ANNEX I: The Sectoral Framework

The capacity of the aquaculture sector, like any other economic sector, is made up of several major components. Each component separates levels of general activities, and recognizes that each level has a number of similar dimensions and elements. A simple framework or matrix is then established which ensures that all the elements within the sector are identified and considered.

The sectoral framework serves many purposes. In this particular case it is being used for the framework of a national plan to develop the capacity of the aquaculture sector. It can also be used effectively by governments, development banks and others for

- country programming or regional planning,
- investment planning,

and subsequently

- sectoral analysis, either whole or in part.

It can also be used by governments, development banks and agencies, and others, including private enterprise, when concerned with projects for developing capacity in the sector; for example, for

- Project identification and baseline studies,
- Project targeting, recruiting, and work plans,
- Project reporting and project evaluation,
- Ongoing and post-project planning and review,
- Staff training, and expert/consultant briefing.

The framework divides a sector, in this case the aquaculture sector, into six sectoral levels. As the purpose of aquaculture is to produce food for human consumption, the primary beneficiaries are recognized as the first or highest level. The six levels are as follows:

(1) THE CONSUMER OR MARKET: This level includes formal and informal consumer groups, and the distribution organizations including storage. It also includes customer response to the producer.

(2) THE PRODUCER OR FARMER: This level includes the producers of the aquaculture products, and the facilities (farms and hatcheries) oriented to meet the demands of the market as they can best be determined on a continuing basis.

(3) LOCAL INFRASTRUCTURE: This level includes all the local supplies and services which support the primary beneficiaries - the producers and consumers. (i) For the consumers these are materials, energy, transportation, information, and consumer education, etc. (ii) For the producers these are seed from hatcheries or field stations, feed, fertilizers, materials and equipment, machinery, energy, transportation, local credit, and information through extension services, on-farm training, and trade publications, etc.

(4) NATIONAL INFRASTRUCTURE: This level includes higher level academic and non-academic (managerial and special) training, research and development, the central organization of credit and of all other supplies and services at the local level as described in Level (3) above.

(5) NATIONAL SECTOR MANAGEMENT: This level includes the central directorate or the government functions of the sector. These are planning, policy-making, legislation, resources mobilization, statistical information, and coordination with other national sectors, such as agriculture, energy and water resources, tourism, upper-management training, and information, etc. This level should be developed in response to the needs/demands from the higher levels, particularly Levels (1) and (2).

(6) GLOBAL AND INTER-REGIONAL MANAGEMENT: This level includes the typical international affairs of the sector, such as international research and training, and the exchange of decision-making information. It also supports capacity building at the national levels (such as providing information, guidelines, events, etc.). This level should also be developed in response to the needs/demands from the higher levels, particularly Level (5).

Each of the six sectoral levels can be analysed further according to its specific dimensions. The three dimensions identified for each level relate to the economics and socio-economics, the technology, and the management.

The Economic and Socio-Economic Dimension considers (in appropriate economic and socio-economic terms) the benefits which accrue in the aquaculture industry at each particular level, or which will accrue in the case of new development programmes or projects. It also considers the revenues (or potential revenues), the relevant economies of scale, and the existing (or required) capital investment and operational costs.

The Technical Dimension considers the many technical systems relevant to the aquaculture industry, and the resources which are available (or which are needed) to sustain them. For the most part, the relevant technical systems (or procedures, methods, approaches, etc.) have been described within Levels (1)-(6) above.

The Management Dimension considers the management systems relevant to the aquaculture industry. There are nine principal management systems which recur. These are, in brief:

- Information: required for the gathering, processing, storage and distribution of internal and external information, including computerization.

- Planning: required for policy-making, planning, feasibility studies, preparation, monitoring and evaluation, both long and short-term.

- Marketing: required for the correct determination of the end-user needs, and for promoting and selling the product.

- Feedback: required for gathering, processing, and reacting upon data based on performance.

- Financial: required for financial planning, budgeting, revenue, accounting, cost-accounting, and audit.

- Personnel: required for personnel planning, induction, training, motivation, and evaluation.

- Physical: required for the planning, procurement, inventory, operation, and maintenance of buildings, plant, and materials.

- Organization and Management: required for organizational structure, definition of function, legal personnel, allocation of roles, decision-making, implementation, and control.

- Linkage: required for external links to suppliers, environment, and end-users at other sectoral levels, and with the same level in other national sectors.

In summary, the framework acts as an Aide Memoire - although it should not be considered as a mere check list. It does ensure that no sectoral component is overlooked. This is important for the aquaculture sector which, in the past, has been predominantly biotechnically oriented to the neglect of some principal elements such as marketing, economics, social requirements, credit, management, etc. All systems and sub-systems are duly recognized, and all vertical and horizontal relationships are appropriately developed.

Depending on the required use of the framework (such as planning, sector analysis, or project identification, as described above) different emphases or necessary attention will result, or will be required.

For example, (1) if the framework is used for the development of a national plan, more emphasis will be required at the levels of national sector management and national infrastructure than at other levels - although those of the primary beneficiaries themselves merit more attention than the other two. (2) If the framework is used to make a sector analysis to identify the capital investment required by producers, then considerable emphasis will be required at the upper levels (consumers, producers and local infrastructure), with less at the lower levels (national infrastructure and sector management).

In summary, the framework is a useful tool for planning and analysis. It can be used at different depths or densities of both - in this case to structure a national plan for aquaculture development. Its great value at the present time for the aquaculture sector is to help redress the imbalances within the sector, due to the over-emphasis on biotechnology in the past. It is useful in identifying previous omissions, and subsequently in developing appropriate directions to rectify the problems and enable the capacity of the sector to be structured and advanced from a broad base.


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