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Governing Through Markets: Societal Objectives, Private Property Rights and Small-Scale Fisheries in Denmark

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Part of the MARE Publication Series book series (MARE,volume 13)

Abstract

This chapter explores the relationship between small-scale fisheries and market-based governance systems such as individual transferable quotas. The analysis is prompted by the wide-ranging introduction of private and transferable Vessel Quota Shares in the Danish demersal fisheries. The chapter documents both quantitative and qualitative changes in the fisheries due the introduction of market mechanisms. Among these changes has been a concentration of resource ownership, changes in the social organization favoring larger operations with better access to legal advisors and financial capital. Consequently, operators in small-scale fisheries are facing challenges, when acting on the quota market, and in general the small-scale sector is in serious and structural decline. The chapter discusses characteristics of the Danish fishing fleet in relation to instruments and actions available for a governing system governing through markets. The specific instruments put in place to protect and safeguard small-scale fisheries are analyzed and discussed. As part of this, the chapter asks how the introduction of market mechanisms changes and transforms the overall governability of the small-scale fisheries. The chapter argues that social objectives have been marginalized and that this development reduces the overall governability of the sector. Moreover, participation of operators in the distribution of fishing quotas has increased through joint quota companies, guilds and through the flexible and dynamic, but individual, every-day market transactions.

Keywords

  • Privatization
  • Social objectives
  • Market governance
  • ITQs
  • Policy design

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Fig. 17.1

Notes

  1. 1.

    This and the following sections are based on a reading of the weekly magazine for fishers, “Dansk Fiskeritidende” between 1970 and 1980, supplemented with personal interviews.

  2. 2.

    Legally, a fishing vessel can be owned in Denmark by either a commercial fisher with “A” status, or by a company of which two-thirds is held by commercial fishers with “A” status. A commercial fisher with “A” status is defined as a person who: (1) has Danish citizenship or who has been living in Denmark for at least two years; (2) has been occupied with commercial fishing with “B” status (having an income from commercial fishing) for at least 12 months; and (3) has at least 60 % of his income from commercial fishing.

  3. 3.

    The following analysis is based on official data from the Ministry of Food, Agriculture and Fisheries (VQS sizes and catch registrations in 2007 and 2011) and the EU fleet register (for gear types in 2007 and 2011). Where the data has been ambiguous (in particular concerning gear types), I have induced corrections based on my personal observations and interviews.

  4. 4.

    A large portion (16 %) was allocated to so-called “Flying Dutchmen”, vessels existing only on paper as licenses and catch history. This could be due to wreckage, but in this case it also represents the early quota trade between 2005 and 2007.

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Correspondence to Jeppe Høst .

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Høst, J. (2015). Governing Through Markets: Societal Objectives, Private Property Rights and Small-Scale Fisheries in Denmark. In: Jentoft, S., Chuenpagdee, R. (eds) Interactive Governance for Small-Scale Fisheries. MARE Publication Series, vol 13. Springer, Cham. https://doi.org/10.1007/978-3-319-17034-3_17

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