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Framework of marine fishery managementa case study of the Philippines and implications for Vietnam

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■2012 JSPS Asian CORE Program, Nagoya University and VNU University of Economics and Business Framework of marine fishery management: a case study of the Philippines and implications for Vietnam Vu Thanh Huong1 University of Economics and Business, Vietnam National University Abstract Among open - access properties, marine fishery resource is of great concern of numerous government It is because marine fishery resources contribute considerably to socio - economic development and provides a huge ecosystem goods and services to the world However, the alarming over - exploitation, environmental degradation and conflicts between stakeholders in fishery sector all over the world has urgently required a more efficient approach to manage marine fishery resources This paper argues that ecological economics is a suitable approach to address the issues of marine fishery resource use and management In particularly, the paper will focus on biological and economic aspects of marine fishery resources that must take into consideration in designing fishery policies The paper then examines marine fishery management of the Philippines based on Pressure - State - Impact - Responses framework The paper recommends that the Philippine government should construct a more appropriate marine fishery legal framework and take into consideration economic incentive programs and market - based instruments such as individual transferable quota in managing marine fishery resource Through the case study of Philippines, some implications will be drawn out for Vietnam for more efficient and sustainable marine fishery management Keywords : Marine fishery management, Philippines, Vietnam, Pressure-State-Impact-Responses Framework Email: huongvt@vnu.edu.vn; Phone: (84) 977 917 656 Introduction illustrate this approach This paper concludes with some suggestions for the Philippines and implications Marine fishery resource has become an important topic of a great deal of world development conferences It is because around 60% of the world’s ocean is out of individual countries’ power to control or belongs to the world (Iversen, 1996) Another reason is that marine for Vietnam to efficiently manage and maintain flows of goods and services supplied by the fishery resource towards sustainable development Ecological economics – interactions between the economy and ecosystem fishery resource plays a vital economic, social and environmental role and considerably contributes to the Common & Stagl (2005) state that the overlap between world development and hunger eradication In addition, the economy and ecosystem is so-called ecological fishery resource provides employment, nutrition and economics Put another way, ecological economics ecosystem services to a large proportion of the world deals with how the economic and ecological system are population interacted Even though the structure and functions of Being an archipelago, the Philippines has an exceptional diverse marine fisheries resource However, the revolution in fishing techniques including destructive fishing methods, the open - access exploitation and increased demand for marine fisheries have led to a sharp decrease in the Philippines’s fish stock, loss of biodiversity, deterioration of the marine ecosystem and conflicts between stakeholders These changes in turn adversely affects on human lives such as reducing the important source of protein and quality of life of the population They also have negative impacts on national economic growth and fisheries sustainable development (Kahn, 2005, Neiland, 2006) The same situation can be observed in Vietnam’s fishery sector (Ministry of Natural Resource and Environment, 2010, Vu Thanh Huong, 2006) economic and ecological systems are completely different, these systems are not separate Economic system is only a subsystem of and dependent on the ecosystem (Wills, 2006) For instance, the ecosystem provides inputs such as land, water, fuel and wood for economic system to operate (Costanza et al., 1997) However, it is the human activities such as agriculture, energy use, manufacturing and armed race that change the ecosystem, of which economic activities are the main ones (Field and Field., 2002) Therefore, economic activities depends on natural resources supplied by the environment to create goods and services but at the same time creates environmental problems that in turn affect the economy In short, the economic and ecological systems are interdependent and this interaction is basis for introduction of the ecological economics (figure 1) This paper argues that the environmental, socio and fishery resources requires an efficient management on this resource, in which ecological and economic aspects of fishery resource must be incorporated Ecological economics Ecology Economics economic impacts of overexploitation of marine Therefore, this paper aims at examining how ecological economics approach can be used to manage Figure 1: Ecological economics marine fishery resource and focuses on the Philippines Source: Common and Stagl (2005) where the capture of fisheries plays a vital role in the Because economy but has been vulnerable as a case study to interdependent; study of economics and study of the economy and ecosystem are ecology should be incorporated to solve environmental artisanal fishermen catch fish to feed their families and then and resource problems Ecological study may be sell the unused catch or they may be engaged in fishing to adequate to describe these problems, but it does not serve their own interests or hobbies involve analysis of human activities Economic study deals with how the scare resources should be allocated Biological and economic characteristics of marine fishery resource and enables us to understand and evaluate the impacts of economic activities on the ecosystem The determination of optimal allocation of resources calls for understanding of both economic behaviours and the whole ecosystem (Kahn, 2005) Therefore, ecological economics can be viewed as an appropriate approach to deal with the environmental and resource problems, in which economic theories and models are utilized to find out the optimum resource allocation Marine fishery resource is renewable because the resource can grow in time and has reproductive capacity One important feature related to renewable fishery resource is the reproductive rate If the rate of harvest is persistently higher than the reproductive rate, the fish stock will decrease and be extinct (Common and Stagl, 2005) Kahn (2005) states that the growth of fish can be A frameworkd of marine fishery resource described as a logistic function Figure reveals that initially, the growth rate increases with increase in fish management population However, after X2, the growth rate starts to Marine fishery resource and fisheries sector decrease and eventually falls to zero when the Marine fishery resource is a part of the marine population reaches the maximum level of K This ecosystem and defined as stock of marine living situation can be explained by biological factors that organisms and their habitat (Clay et al., 1999) when fish population increases, competition for Marine fisheries sector can be divided into capture and culture fisheries (Murray et al., 2006) The former which will be discussed in this paper includes the capture of wild fish and other living animals in seawater The later is the farming of aquatic animals resources increases and the diseases also grow as well Point K is regarded as biological equilibrium or carrying capacity of the environment More importantly, when the growth rate (G) is equal to harvest rate (H), the growth function is exactly the harvest function As a result, the point X2 is considered and plants and also called aquaculture the maximum sustainable harvest or yield that can be Iversen (1996) classifies capture fisheries into three types: commercial, subsistence and recreational attained when the harvest rate H2 is exactly the same as the growth rate G2 (Common and Stagl, 2005) fisheries He argues that there is a really clear distinction between commercial and recreational fisheries based on objectives of capture Commercial fishermen aim at seeking profit while recreational ones participate in fishing because of numerous reasons such as satisfying their hobbies or reducing stress without profit motives The third type of capture fisheries, that is subsistence or artisanal fisheries, can be considered as an intermediate type between commercial and recreational fisheries It is because The analysis of growth function suggests that fishery resource is renewable but also destructible Therefore, it is of great importance for policy makers to understand the biological characteristics in general and the growth rate or fish population in particular to identity maximum sustainable Then, based on maximum sustainable yield, the government can determine correct resource pricing and avoid misallocation of the country’s resource into fisheries sector In other words, biological factors have (Gordon, 2002) The tragedy of common fishery important implications for fishery management requires government intervention in defining property Catch, growth rights to reduce fishing effort and attain an efficient Costs Revenue, social outcome b a G2 = H2 G1 AC = MC c W = H1 MR K X1 AP Fish population X2 x Figure 2: Growth function of fish resource z Fishing effort Figure 3: The tragedy of common fisheries Source: Gordon (2002) Source: Common and Stagl (2005), Kahn (2005) Besides biological characteristics, the economic feature In summary, the fact that fisheries resource is common of fisheries resource, a common property, is also of property has led to overexploitation of fish stock As a increasing fishery result, fishery regulations are required to control the management policies In open - access fisheries, harvest rate so that it does not exceed the reproduction everyone can freely harvest the fish stock whenever he rate and limit the access to the resource However, it is pleases He can decide on how may fish to catch, noted that management of fisheries resource must be where to catch, what fish to catch and what type of based on both economic and ecological knowledge gear used He concerns about his own private costs about fishery resources Gordon (2002) highlights the rather than the cost imposes on others when fish importance of ecological economics in fishery becomes scarer As a consequence, the amount of management when he states that research on fishery fished actually harvested will be higher than the resource utilization during the last 50 years has not socially efficient amount The fish stock will promptly been adequate because these research are based merely be depleted or tragedy of common will occur (Field on biological knowledge rather than economic and Field., 2002) characteristics of the fishing industry (Gordon, 2002) Figure describes the tragedy of common fishery The A framework for marine fishery management optimal level of fishing is at point x where MC is equal Caddy (2004) argues that a holistic approach DPSIR to MR At point x, fisherman will earn the area wabc (Driving forces – Pressure – State – Impact – more than employees in an alternative industry Responses) may be integrated into fishery management Therefore, workers in the alternative industry will be In some cases, this approach may be reduced to PSR induced to enter fisheries sector until earning of (Pressure – State – Responses) or generally to PSIR fishermen and workers in alternative industry are the (Pressure - State - Impact - Responses) A framework same As a result, the open – access number of fisheries for fishery management based on PSIR approach is are z that is higher than the social optimal number x shown in Figure importance for design of STATE PRESSURE (Factors affecting fishery) (Stock RESPONSE IMPACT condition; productivity) (Comparison (Efficiency of management with responses) norms, criteria) Biomass, Changes in age or Effective effort, F number of condition factor, size structure, no of adjustment, licences, capacity, , growth egg/recruit, diversity, effort environmental population discard rate exerted, changes, predators fecundity Conflicts Common asset, Fishing rate, between control, MCS efficiency, cap on capacity stakeholders Figure 4: PSIR approach to fishery management TAC of nets The limits on fishing can also be the minimum Source: Caddy (2004) size of fish to be caught or the seasons or areas that no Note: TAC: Total Allowance Catch; MCS: Monitoring, one is allowed to have access to fishery resource Control and Surveillance; F: Fishing mortality (Iversen, 1996) When considering effects of open - Figure suggests that fishery management and regulation should be designed based on taking into consideration how pressures from human activities (such as fishing effort) in relation with ecosystem pressures (like environmental changes) impact fishery ecosystem states In addition, how fishery ecosystem changes (for example growth rate, fish age, and structure) affect human activities and the ecosystem as a whole must also be considered The above approach can be put into place only if policy makers or fishery access regulations, two opposite effects must be carefully taken into account It is because on the one hand, these regulations are designed to cause inefficiency because more resources are required to harvest a given amount of fish Typically, the fishing cost grows and the unprofitable fishermen would better to leave the industry, resulting in decline in fishing efforts On the other hand, these regulations can also result in improvements in fish population that in turn tends to lower catching costs managers incorporate knowledge about biotic, abiotic The later type of regulations, limited entry techniques, and human components of the whole ecosystem and has recently paid more attention and tries to address the their interactions into fishery management (Arancibia problems and Munoz, 2006) The fishery regulations can be overcrowding and overcapitalization”, in fishing divided into two types including open - access activities to attain the maximum sustainable yield regulations and limited entry techniques These regulations can be categorized into three main Most fishery regulations are based on open - access techniques that aim at biological regulation This type of regulations targets to keep fish population at a given level, theoretically at the sustainable maximum yield X2 shown in Figure 2, by imposing restrictions on how, which, when, where and how many fish may be caught (Kahn, 2005) For example, method of fishing can be regulated by limiting boat size, gear type or the length of common resource, “over-fishing, forms: taxation, output controls and input controls For instance, taxation is imposed based on the maximum resource rent the fishery can generate A recent approach is individual transferable quota in which each fisher is assigned a part of total allowable catch through auction, lottery or past catch Input controls can be implemented by imposing restrictions on the number of boats operating on a certain fishing ground (Kahn, 2005, Iversen, 1996, Meany, 1987) The result of limited access regulation is that the private fishing life” Therefore, it is not surprising that the Philippine cost increases but in a manner that the social welfare fisheries sector has been one of major sector and the may increase country ranked 6th in the world among leading fishing It can be said that efficient management of the fishery resource can only be attained based on appropriate fishery regulations However, one difficulty in designing regulations is that information about optimum sustainable yield or impacts of over-fishing on the ecosystem and human activities is asymmetric Another difficulty is that many countries, especially developing countries like he Phillippines and Vietnam, have insufficient resources to put such regulations in countries in 2009 with its total production of 5.08 million metric tons of fish, crustaceans, mollusks, and aquatic plants (including seaweeds) The Philippines’ production constituted 3.12% of the total world production of 162.8 million metric tons whereas Vietnam’s total fisheries production in 2009 was around 4.83 million metric tons and Viernam ranked 7th after the Phillipines (Bureau of Fisheries and Aquatic Resouces, 2010) place Finally, none of regulations can completely solve In the Philippines, the marine sector is divided into two the problems of open – access fisheries Therefore, the sectors including aquaculture (culture) and capture cooperation between economists and ecologists is of The capture fisheries ssector in turn can be divided into great importance in supporting governments to two sub – sectors including municipal and commercial determine feasible and efficient fishery policies Municipal fisheries refers to small – scale capture Overview of marine fishery sector in the fisheries operated by without vessel or with vessel less than three gross ton within 15 km from the coastline In Philippines resource contrast, commercial fisheries uses boats more than Marine fishery resource three gross ton and can operate only outside of Table 1: Marine fishery resource of the Philippines Item Areas fisheries is not developed in the Philippines (Barut and Garvilles, 2009) Total marine territorial water area municipal water or beyond 15km limit Recreational 2,200,200 sq km Socio, economic and environmental importance of marine fishery resources - Coastal 266,200 sq km - Oceanic 1,934,000 sq km In the Philippines, fisheries sector plays a vital socio – 184,600 sq km economic and environmental roles The sector 27,000 sq km contributes about 4% to the country’s annual GDP and 17,460 km 19% of gross value added in agriculture, fishery and Source: Bureau of Fisheries and Aquatic Resouces forestry In 2010, total volume of fisheries production (2003) reached around 5.2 million metric tons and valued at Shelf areas (Depth 200m) Coral Reef Area Coastline The Philippines is an archipelago in South East Asia and made up of around 7101 islands with a long coastline of around 17,460 km, and a large shelf and coral reef areas (Table 1) In addition, the Philippine water “contains some of the world’s richest ecosystem” and it also has an “exceptional high diversity of marine about 221.05 billion pesos Of which, the aquaculture fisheries subsector contributed the highest value of about 82.86 billion pesos or 37.5 % Next is municipal fisheries subsector with a total production of 77.74 billion pesos Total fish caught by marine fishermen was valued at 70.2 billion pesos while inland fisheries production was valued at 7.54 billion pesos The commercial subsector contributed 60.46 billion pesos that brought about USD 803 million for the Philippines or 27.3% to the total fishery output (Table 2) (Bureau comapred to USD 524 million in 2003, with the of Fisheries and Aquatic Resouces, 2010) leading export commodities including tuna, seaweed Table 2: Value of fish production (Unit: billion Pesos) and shirmp (Table 3) The foreign trade performance of the country in fisheries sector registered a surplus in the Year Aquacul Municipal Commeric- -ture Total al period 2003 – 2010 (Bureau of Fisheries and Aquatic Resouces, 2010) 2010 82.86 77.74 60.46 221.05 2009 81.50 75.38 58.70 215.58 2008 81.67 70.97 63.17 215.81 2007 61.60 62.21 54.74 180.55 2006 55.67 59.15 48.55 163.37 2005 49.17 49.95 47.27 2004 44.82 45.67 2003 37.20 2002 2001 Table 4: Fisheries contribution to foreign trade in the Philippines 2003 2010 Quantity Value Quantity Value 146.39 (Metric (USD (Metric (USD 48.35 138.85 tonne) million) tonne) million) 40.66 42.00 119.87 Export 202,016 524.0 220,992 803.0 35.42 38.16 39.68 113.26 Import 150,533 79.0 202,157 187.2 36.63 34.22 36.09 106.94 Balance 51,483 441.0 18,835 615.8 Items Source: Bureau of Fisheries and Aquatic Resouces Source: Bureau of Fisheries and Aquatic Resouces (2003, 2010) (2003, 2010) The fishery sector also provides employment to a large Fisheries sector is also a major source of nutrition proportion of the population, especially for those living Israel (1999) states that it provides around 75% of the in the coastal areas In 2010, the industry directly total animal protein requirement of the country that is created jobs for around 1.6 million fishermen, of which higher than the total amount of protein of both poultry the municipal fisheries sector accounted for about 1.3 and livestock combined In 2003, a Philippine person million while the commerical and aquaculture sectors annually consumes 38 kg of fish, accounting for 11.7% added some 16,497 and 226,195 employment, of total food intake (Bureau of Fisheries and Aquatic respectively (Table 3) (Bureau of Fisheries and Aquatic Resouces, 2010) Resouces, 2010, NAST, 2011) The marine resource does not only plays important Table 3: Fisheries contribution to employment creation socio- economic role but also provides vital ecosystem in the Philippines (persons) services Bebet et al (2005) point out that two most important ecosystem services provided by the marine Items 2003 2010 Total 990,872 1,614,368 Aquaculture 258,480 226,195 Municipal 675,677 1,371,676 56,715 16,497 Commercial resource is that the huge source of wave energy form the ocean and the capacity to absorb disposal from human activities For instance, in 1995, it is estimated that the marine resource has brought $428 worth environmental waste disposal services to the Source: Bureau of Fisheries and Aquatic Resouces Philippines (2003, 2010) The analysis of the Philippines’ marine sector revealed Moreover, the fisheries sector is also a source of export that the capture sector plays a vital role to its economy the given period A survey of six coastal provinces in and deserved a holistic approach of management The the Philippines for the hook-and-line type shows that same situtation can be observed in Vietnam, where CPUE is sharply declining to 3.1 kg/unit of effort in capture sectors contributes around 60% of total marine 2000 from more than 40 kg in 1940 (NAST, 2011, produciton Bebet et al., 2005, Green et al., 2003) The declining Analysis of capture marine fishery management in the Philippines under PSIR CPUE is therefore another pressure on the Philippine fisheries sector and potential reason for conflicts between stakeholders framework Under the PSIR framework, design of efficient fisheries regulations and policies must be undertaked based on analysis of Pressure, State and Impacts of the sector Therefore, this paper will analyse the above mentioned factors before drawing out policy implications for the Philippines and also Vietnam Pressures from human forces and environmental changes The Philippine fishery sector has experienced an adverse fluctuation due to pressures from both human forces and climate changes Figure 5: Decline in average CPUE in six provinces in the Philippines Source: Green et al (2003) The most obvious pressure is the increasing fishing effort in the Philippines fisheries sector over time Actually, the number of fishers and boats increases, fishing technologies is more developed and illegal fishing with destructive fishing methods are more common Fishing effort has witnessed sharp increases for both small pelagic and demersal fisheries over the 1965 - 1985 (Israel, 1997) Green et al (2003) also worry that after 1985, the commercial fishing effort continued growing and reached 2.09 million HP in 1997 that is 45% above the optimum level of 1.14 million HP Therefore, it is unavoidable that fish population of the Philippines has under pressure of increasing fishing effort (NAST, 2011) Pressure on the fisheries sector also originates from the proliferation of other industries such as agriculture, industry, tourism, oil and gas exploration, minerals and mining For example, agriculture discharges residuals from livestock, poultry and fertilizers into coastal water, contributing to the deterioration of the fisheries habitats In addition, most of the coastal areas adjacent to industrial and urbanized areas in the Philippines are increasingly polluted by hazardous industrial wastes and domestic wastewater that lead to fish kills The development of tourism in the Philippines also threats the coastal areas In fact, the tourism increases the sewage and may lead to the physical alternation of the marine ecosystem for tourist users It is also a More seriously, even more effort has spent on catching, supplement reason for the over-fishing to meet tourists’ the total number of fish per unit of effort has steadily demand decreased, indicating the severe situation of over-fishing CPUE for both small pelagic and demersal fisheries experience a downward trend over Increasing population and demand for fishery products is considered as a pressure for marine fishery resource as well According to estimates by National Statistic effort, the volume and value generated by the Office of the Philippines (2000), the Philippines has Philippine fisheries sector has fluctuated and decreased experienced a high annual population growth rate of to just 1% in 2009 and 2010 2.36% in the period 1995 – 2000 to reach more than 76 million in 2000 NSO also estimates that if this growth rate continues, Philippine population will double in 29 years Admittedly, this rapid growth of population together with the increasing price of exported fishery products has accelerated the demand for this type of As a consequence, despite the growing fishing effort, the fisheries production has grown at the slower rate than total GNP and crop production over the last two decades For this reason, the share of fisheries production to national GNP has getting smaller from 5% in the late 1990s to 4% recently In addition, from products and put more pressure for marine fishery the world’ 4th largest fish producer in 1985, the resources of the country Philippines is now at 7th Therefore, it can be said that Besides human activities, environmental changes are over-capitalization has severely occurred in the great threats to fisheries resources For example, Bebet Philippine sector and requires government regulations et al (2005) announce that annual surface temperature to reallocate the country’s resources has slightly increased over the Philippines by 0.5 Secondly, the over – fishing in municipal water has degrees Celsius from the 1980s, resulting in 6% decrease in rainfall In addition, the sea level has risen by 20 to 40 centimetres in Manila from the 1960s up to now with unusual weather pattern such as unusual typhoon, red tides and meteorological disturbance It is undeniable that these adverse changes will have negative impacts on fisheries habitats such as water quality and temperature These changes in turn results in increasing diseases and loss of biodiversity and affect negatively on human activities (Bureau of Fisheries and Aquatic Resouces, 2010) State and impacts The above mentioned pressures on fisheries resources have lead to negative impacts on the Philippines’s economy, society and the environment as well Firstly, pressures on fishery resource has led to over – worsen poverty among municipal fishermen One reason is that an increasing number of municipal fishermen must increase fishing effort to compete with each other in municipal water The result of that is the decline in CPUE or lower productivity of municipal fishermen For example, according to Bebet et al (2005), the annual catch of municipal fishers has decreased by 30% compared to that of 1991 That lower productivity causes their living quality to continue decreasing over time Bebet et al (2005) state that their annual incomes are only a half of national level In the Philippines, municipal fishers are regarded as the poorest of the poor in the society and have been in vicious circle It means that because of poverty, they try to catch more More fishing effort worsens the overexploitation that in turns cause low productivity and deteriorated income of municipal fishers capitalization in fisheries sector which implies that resources devoted to fisheries sector can be used more efficiently in other economic sectors In other words, the opportunity costs of efforts spent on the fishery sector is not appropriately estimated, driving in the misallocation of resource in the fisheries sector and low productivity Eventhough the growing fishing The third impact is the social conflicts among stakeholders The conflicts arise between municipal and commercial fishers, municipal and municipal, commercial and commercial and between fishermen and environmentalists Of which the conflict between municipal and commercial fishers is of great concern As stated previously, according to Local Government Law, municipal fishers have the exclusive right to guideline is of great importance for the government in harvest in municipal water within 15 km from the making fishery regulations shoreline It means that commercial ones can only Policy responses operate beyond 15km However, in reality, a lot of commercial boats are not adequately equipped As a result, they choose to illegally operate in municipal waters rather than in the permitted areas With more efficient fishing gear, their illegal operation worsens the existing lower productivity and poverty of The diversity of marine fishery resource and above complicated pressures and impacts call for an integrated management in which the cooperation between government organizations, between economics sectors; and participation of the community in protecting the marine fishery resource is of great municipal fishers (FAO, 2011) importance Thus, over the last two decades, the Fourthly, the decline in fish stock, loss of diversity and degradation of the environment are unavoidable results of increasing fishing effort, over – exploitation and Philippines has put great effort to construct a legislative regulations and encourage the community to participate into fishery preservation destructive fishing methods In fact, it is estimated that over the period 1998 - 2001, the fishing rate in the Philippines was 30% higher than the natural producing capacity of fish stock Many important species are under serious threats such as sea turtles, sea snakes, whales and dolphins Some of species are threatened to be extinct such as whale sharks and coral reefs More seriously, in some heavily exploited areas such as The Philippines has issued several laws associated with fishery resource such as 1991 Local Government Code, 1998 Fisheries Code, 2001 Wildlife Conservation and Marine Pollution Decree Among these legislative documents, the Fishery Code enacted in 1998 can be regarded as the primary law on fisheries management The law is important because it clearly recognizes that Manila Bay and Samar Sea, large, long – lived and conservation and protection of fishery resources high – value fish are caught The remaining is small, towards sustainable development is a key objective of immature, short – lived and low – value ones As a the Philippines In addition, it covers comprehensively consequence, the reproduction capacity of fish will be policy instruments used in fishery management negatively affected, the fish stock eventually declines The Fishery Code acknowledges that the correct and loss of biodiversity occurs It is undeniable that resource pricing is vital to determine accurately fees these adverse changes will in turn negatively affect imposed on fishing activities The correct price must marine ecosystem process, because the marine reflect the true value of resource rent and is constructed ecosystem can smoothly and properly functions if it based on maximum sustainable yield In addition, consists of a wide variety of species, sizes and ages accurate pricing helps to corrects the existing resource (Green et al., 2003, FAO, 2011) misallocation to fishery sector and avoid over – fishing Among the above problems, environmental degradation and poverty among municipal fishermen are regarded by the Philippine government as the most serious and urgent ones It means that the objectives of However, it is noted that determination of the correct maximum sustainable yield is not easy task that requires understanding of both economic and biological aspects of the marine fishery resource the sector are not merely to raise output but to move Delineation of property right for municipal fishers is towards sustainable development of marine fishery also mentioned in the Fishery Code More specifically, resource and alleviate poverty in the coastal areas This it stipulates that municipal fishers are entitled to operate within 10 km from shoreline, where vessels are granted licence (Bebet et al., 2005) commercial fishers are banned This stipulation is Therefore, in reality, the licensing system has little necessary because it enables to limit the access to effect to reduce the problems of open – access municipal waters that have already been over – problems but a tool to merely generate state revenue exploited However, this regulation is still controversial It is because this regulation is contradicted with Local Government Law that stipulates the municipal water is between and 15km For this reason, conflicts between commercial and municipal fishers arise between 10 and 15 km and over – fishing are worse this area as well Besides setting up the legal framework, the Philippine government implements projects to establish marine sanctuaries in some islands such as Apo, Gilutongan and Mabini These sanctuaries contribute to develop tourism, raise revenue for local community and also attract the participation of community stakeholders in protecting the marine environment For instance, the Command - and - control instruments are determined Apo Island Marine Sanctuary has attracted the Siliman in the Fishery Code One important provision is University into its project A staff of researchers and monetary rate for penalties on some violations such as students of the university has enthusiastically involved illegal fishing, use of destructive fishing methods and in providing substantial research and supports to even aquatic pollution However, the problem is that in protect the sanctuary Often, local community has the practice, this regulation is not effective because right to involve in planning and implementing fisheries activities are not adequately observed , sanctuary projects Marine sanctuaries also bring especially at off-shore areas higher yield and incomes for local fishermen and at the Moreover, the Fishery Code mentions economic incentives and disincentives such as effluent fees, user fees and negotiable permits (Israel and Roque, 1999) in the fishery sector However, one controversial point is same time raise local awareness about preserving marine system for the sustainable development Reason for success of these sanctuaries is largely community – based approach Bebet et al., 2005) that this regulation only applies to aquaculture sector However, it is noted that not all sanctuaries are rather than commercial and municipal sector whose successful because illegal fishing and pollution from harvested quantity and values are really considerable adjacent areas reduce benefits from sanctuary projects From above analysis, it can be seen that the Fisheries Another program is retraining and employment These Code mentions both open – access and entry – limited programs are designed to support fishermen who want techniques However some regulations of this Code to change their jobs These programs are highly such as correct pricing of natural resource only stops at appreciated because under the effort to reduce fishing the theoretical ground and some are controversial The effort, there will certainly have a part of unprofitable question is that how to implement it in practice and to fishermen to leave the industry and change to other improve its enforcement In addition, the Fishery Code employment does not pay much attention to correcting problems of Conclusion and recommendations the existing licensing system except for low license fee For instance, the current licensing system has not imposed limits on the number of number of license and Marine fishery resource plays a vital role for the economy, contributes to eradicate hunger and is a vessels that can register Furthermore, under – source of employment and nutrition, especially for the registration is common with only around 25 – 30% of developing and archipelagic country like the Philippines In the Philippines, however, this resource of municipal and commercial fishermen Therefore, the has been under great pressures from both human and government should rely on both scientific and natural to economic information to made appropriate decision overcapitalization and over – fishing that in turn causes More importantly, coordination between government decline in fish stock, loss of biodiversity, degradation levels and agencies in implementing legislations and of the marine environment and socio-economic loss strengthening of law enforcement is of great forces These pressures have led The Philippine government has gradually applied ecological economics approach into regulating the marine fishery resource and tried to solve open – access problems However, these efforts are needed strengthening Based on the analysis of pressures, impacts and responses, the paper suggests some following recommendations for the Philippines and policy implications for Vietnam, a counry that has been observed to copte with the similar state, pressure and also impacts as the Philippines Application of market – based instrument Individual Transferable Quota is increasingly used in importance Economic incentive , social and environment programs The governments should pay more attention to incentive programs for fishermen who are volunteering to change to other jobs and strengthen to propagandize and educate local communities about preserving the marine environment The projects on preserving marine environment should also be encouraged and supported In addition, marine sanctuaries should be widen and established in all coastal areas R&D on marine fishery resource should be enhanced to facilitate policy makers many countries in the world and proved to be efficient In conclusion, it can be said that management of to manage fishing effort Therefore, it is required that natural resource is required to rely on both ecological two government shoutl take into consideration this and economic aspects, especially for resource that instrument Auction for conservation projects on plays a vital socio- economic and environmental role marine fishery resource such as marine sanctuary but at the same 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