ARTICLE: "Global Fishing Trade Depletes African Waters: Poor Nations Get Cash, The Rich Send Trawlers; A Dearth of Octopus," by John W. Miller, Wall Street Journal, 18 July 2007, p. A1.
ARTICLE: "The New Wal-Mart Effect: Cleaner Thai Shrimp Farms," by Kris Hudson and Wilawan Watcharasakwet, Wall Street Journal, 24 July 2007, p. B1.
Reference my recent column on global warming versus other enviro concerns better tackled earlier (a la Bjorn Lomborg's subsequent arguments).
The big driver here is the global push to eat less red meat and eat more fish. That, as they say, changes everything. So the depletion issue ends up resembling that of oil: the Core gobbles up all its stuff fast and then starts to go farther afield to deplete the resources of the Gap.
In this piece, the focus is on Africa, which our intell community says loses about $1b a year in maritime resources that are simply stolen without payment.
But as this story points out, even when paid, Africa is getting ripped off. Why? Same old same old on Core subsidies to their own industries which makes them an overwhelming force when cruising the Gap, depleting historic fishing waters.
The Core spends upwards of $30 billion a year (EU leads at 7, then Japan at 5, then India right behind and China approaching 3, Brazil at 2, Russia right behind and U.S. at a mere 1.2). Against that sort of well-endowed competition for resources, the local Africans have little chance:
Such policies boost the number of working boats, increase the global catch and drive down fish prices. That makes it more difficult for fisherman in poor nations like Mauritania, who get no subsidies, to compete.
The end result: African waters are losing fish stock rapidly, with ramifications both to the economies of Africa's coastal nations and to the world's ocean ecology.
Fishing stocks are down 50% in three decades in the regional waters.
You want to whine on about how many inches the oceans rise this century or when the "oil peak" really hits, neither compares in immediacy (or idiocy, for that matter) with this.
You make it that much harder for coastal Africa, you maroon interior Africa (home to the largest chunk of Collier's "bottom billion") even more. Ninety-nine Chinese fishing boats in Mauritania's waters alone right now. Expect that number to go down on its own?
So the fishing subs start to smell an awful lot like our ag subs: question isn't, are we going to get our fish so much as what will be the price and how much do we create a floor that shuts out Africa?
The answer offered from Serafin Fernandez, managing director of a company that owns a Spanish vessel that harvests octopus around Mauritania:
"You have to have the EU, the Russians, the Chinese and all the small boats," he says. The solution, he contends, is for African countries to keep a tighter grip on their own waters, and to manage their resources through joint ventures with the help of fishing companies like [his own].
Is this not what we've basically done in the U.S. in cases of overfished areas?
But the key is the transparency, which Africa has little of. Stuff goes on like crazy in their waters and African coastal nations do not have a clue.
So boosting the transparency is key, and that's why I find this article so timely. One of my two pieces in the October issue of Esquire addresses a key part of the solution set here.
Better example of the sort of rule-set exporting we're (meaning, private sector) doing right now on maritime issues is Wal-Mart forcing Asian shrimp farmers to clean up their act (Wal-Mart's not waiting on the "great shrimp contamination story of 20XX!").
Wal-Mart's power over its middlemen is legendary: they set a new rule and the suppliers in turn put the screws to the OEMs or farmers.
The destruction of mangrove swamps and the pollution of natural waterways with waste from shrimp ponds has long drawn the ire of environmentalists, but in the past two years, Rubicon Resources LLC, a Los Angeles-based supplier of farmed shrimp to Wal-Mart, has bought and upgraded roughly 150 Thai shrimp farms. Among Rubicon's changes: increasing the testing and documentation of what is in its ponds, planting mangrove elsewhere to make up for the trees destroyed by its farms and standardizing treatment of the water discharged from its ponds.
Rubicon is pushing to meet a year-end deadline that all phases of shrimp production adhere to environmental and social standards backed by Wal-Mart, Red Lobster operator Darden Restaurants Inc, and other big buyers. The U.S.-based industry group that drafted the standards, the Global Aquaculture Alliance, plans to unveil similar guidelines this year for farming of tilapia and catfish, with standards for salmon following later. Wal-Mart pledges to endorse those, too, and to require compliance from its suppliers.
Now, make no mistake, the pressures created by this dynamic will mean a lot of inefficient and pollutive small firms will get bought up and consolidated by larger companies, with the first ones being foreign-based. You can lament this loss of the "old ways," just like we all cry over the loss of the family farm here in the States, but that's how you get the safety locked down despite the high volume.
And in the end, that's how we export rules, the most important export we have.
So when people say, "I wish Tom spoke more about soft power," they're just not paying attention to what I am saying and have been saying all along: rules are everything, and we're the world's biggest exporters of rules. Go back to PNM. This is the basis of everything I do and preach.
It's also why I'm senior managing director of Enterra Solutions, who's entire raison d'etre is the dynamic management of complex ruleset environments.