Role of the state and financial institutions in financing the fishing industry

The experience of the Government in the recovery of loans for 28 foot mechanized vessels has been unsatisfactory. The author examines the various aspects which have contributed to this situation, and considers arrangements for financing purchase of such vessels. The risks associated with the investment in 38 foot vessels are high, and it seems that the reluctance of private investors to make the required contribution from personal funds is a result of fear of the unknown. Current incentives provided by the Government to the private sector for the purchase of 38 foot vessels are considered to be adequate.

Socio-economic and marketing aspects of Laila and Bottom Long Line fisheries in the Kalpitiya peninsula of Sri Lanka

Surrounding Net Fishery (laila) and Bottom Long Line Fishery which operate in the coastal waters of Kalpitiya Peninsula, compete for the same fish resources, resulting in a fishery dispute between the respective fishermen. Both fisheries target demersal as well as mid pelagic fishes, such as travellys (parava), mullets (galmalu) and barracudas (ulava). As the dispute had an adverse impact on the social harmony in the fishing community of the area, a socio-economic survey was conducted to study the underlying factors and to suggest policy measures to resolve the issue. The laila fishermen were resident fishermen in the Kalpitiya Peninsula while bottom long line fishermen were migratory fishermen from Negombo and Chilaw areas in the west coast of Sri Lanka. The Kalpitiya peninsula is located in the North West coast, some 50 km away from the west coast. Although the educational level and literacy rate of the laila community was below that of the bottom long line community, the laila community was economically better off. The net economic returns from laila fishery were superior to that from bottom long line fishery. The boat owner's and crew's share per operation of laila fishery were Rs.3,736 and Rs.947 respectively. The same figures for bottom long line fishery were Rs.588 and Rs.327 respectively. The resource rent from laila fishery was Rs.5,860, however, and much higher than that for bottom long line fishery (Rs.275), showing that the laila fishery exploits the targeted fish resource at a much higher rate compared to bottom long line fishery. This situation badly affects the equitable distribution of resources between the two fishing communities and results in unequal economic gains. Based on the findings of this study, certain input/output controls are proposed to address this problem, among which is the need to increase license fee for laila fishery units to offset the higher exploitation rate of fish resources.

The socio-economic and cultural structures of the fisherfolk communities

Fishing communities that have exploited the resource for generations constitute the main stakeholder groups in the fisheries of Lake Victoria. Several studies have examined Uganda's Lake Victoria fishing communities and characterised key stakeholders at community level over the last decade (SEDAWOG 1999a and b; Geheb 1997; FeSEP 1997; Kitakule 1991). The communities are made up of scattered settlements at the shores and on islands. The categories of people living in these communities include fishers who consist primarily of large numbers of male youths who provide labour to boat and gear owners. There are resident and non-resident fish traders who after securing their supplies at the beaches, depart for their market destinations. In addition, there are fish processors, mostly operating traditional and improved smoking kilns. Many other people, dealing in provisions and supplies also stay at the beaches, their activities depending on the level of fish catch. The fishing communities of Lake Victoria, Uganda, include auxiliary livelihood activities such as boat building, net repairing and transportation; bait supply and beachside kiosks, video halls and retail shop business. Other economic activities are brick making, charcoal burning/wood trade, farming and livestock keeping.