Effects of Global Fisheries on Developing Countries: Possibilities for Income and Threat of Depletion

Fisheries in developing countries are often characterized by poorly defined property rights, open access, and overcapitalization. The authors explore how trade liberalization generally is beneficial, but combining it with open access may reduce a country’s welfare and fish stocks, especially when reinforced by bad subsidies.

Trade liberalization may also promote development of property rights in response to increased fish exploitation. The WTO can help facilitate trade by reclassifying subsidies to eliminate bad ones and distinguish good ones.