The public sector GOVERNANCE AND INSTITUTIONS

offs from disease, and finding more reliable buyers. A lack of competent leadership was deemed a factor behind the shortcoming Msuya, 2013. In the Philippines, direct sales arrangements through producer associations were supposed to increase farmers’ profits. However, few associations have been able to accomplish their stated objectives, which raises the question of whether community-based seaweed farming is more efficient than individual farmers Hurtado, 2013.

5.2 The public sector

Legal and policy framework In the Philippines, under the guidance of the Philippine Fisheries Code of 1998, 17 the Bureau of Fisheries and Aquatic Resources BFAR establishes seaweed-related regulations and policies, while local government is responsible for issuing licences for seaweed farming Hurtado, 2013. A primary legal document on seaweed farming is the Fisheries Administrative Order No. 146: Rules and Regulations Governing the Gathering and Farming of Seaweeds BFAR, 1983. 18 The Administrative Order specifies issues such as eligibility for and restrictions on seaweed farming, licensing fees, duration, procedure, etc., and the rights and obligations of licensed seaweed farmers. The BFAR has also established a National Seaweed Development Program to gather information about the seaweed industry, to undertake research and development, and to facilitate technology transfers to farmers and processors Ferrer, 2002. Unlike the Philippines, other case-study countries do not have specific regulations on seaweed farming. In Indonesia, seaweed farming has been regulated as a type of “fish” under the Fisheries Law No. 312004. 19 However, seaweed farming in Indonesia has been governed and assisted by multiple government agencies, including the Agency for the Assessment and Application of Technology BPPT, the Department of Oceans and Fisheries DKP, the National Ministry of Cooperatives and Small to Medium Enterprises in Indonesia KUKM, the Regional Body for Planning and Development BAPPEDA, and the Indonesia Institute of Sciences LIPI Neish, 2013. Decentralized government agencies have been able to manage seaweed farming closely at the village level. In the United Republic of Tanzania, fisheries resource management has been governed under the National Fisheries Sector Policy and Strategy Statement 1997 20 and the Fisheries Act 2003. 21 The Act has clauses on the collectiongathering, processing and marketing of aquatic flora including seaweeds on the mainland of the United Republic of Tanzania, but none on seaweed cultivation. The Government of the United Republic of Tanzania has been trying to update the Policy and the Act to cover more specifically mariculture and seaweed farming Msuya, 2013. No licences are needed for seaweed farming in the United Republic of Tanzania. The use of farming areas is comanaged by coastal villagers. Seaweed farming may be conducted by outsiders under the permission of local farmers Msuya, 2013. Tanzanian government agencies, such as the Aquaculture Department under the Ministry of Livestock Development and Fisheries in Mainland Tanzania and the Department of Fisheries and Marine Resources in Zanzibar, have been promoting seaweed farming through the Seaweed Development Strategic Plan SDSP as well as assistance programmers such as the Marine and Coastal Environment Management Project Msuya, 2013. 17 Available at: www.fao.orgfisherysharedfaolextrans.jsp?xp_ISIS_MFN=014403xp_faoLexLang=Exp_lang=en 18 Available at: www.fao.orgfisherylegalframeworknalo_philippinesen 19 Available at: www.fao.orgfisherylegalframeworknalo_indonesiaen 20 Available at: www.tzonline.orgpdfNationalFisheriesSectorPolicyandStrategyStatement.pdf 21 Available at: http:faolex.fao.orgdocspdftan53024.pdf 48 In Solomon Islands, the Fisheries Act 1998 22 gives the minister responsible for the administration of fisheries the power to make regulations related to seaweed farming. The Ministry of Fisheries and Marine Resources MFMR has been the main government agency governing aquaculture in the country. In order to ensure the reliability and financial viability of seaweed exporters, private trading companies need to obtain seaweed commercialization licences from the Aquaculture Division established in 2000 under the MFMR McHugh, 2006; Tinne, Preston and Tiroba, 2006; Kronen, 2013. The Solomon Islands Aquaculture Development Plan 2009−2014 MFMR, 2009 established by the MFMR gives high priority to development of seaweed farming in the country. Seaweed farming development is also supported by other government agencies, such as Ministry of Agriculture and Ministry of Lands regarding issues related to land use, tenure and survey, and the Department of Environment for environmental assessments Kronen, 2013. In India, coastal aquaculture activities in saline or brackish water are regulated under the Coastal Aquaculture Authority Act 2005. 23 The Act focuses on shrimp farming, with detailed technical guidelines on shrimp farming specified in the corresponding Coastal Aquaculture Authority Rules 2005. 24 Cultivation of aquatic plants is not specifically referred to in the Act or the Rules. However, with the Coastal Regulation Zone CRZ extended to include 12 nautical miles of territorial waters in the recently issued Coastal Regulation Zone Notification 6 January 2011, 25 more formal regulations over seaweed farming in India could be put in place in the future. The National Fisheries Development Board NFDB, which was chartered in 2006 for supporting fisheries and aquaculture development in India, has developed a series of “guidelines” on fisheries and aquaculture activities, 26 among which the Guidelines on Seaweed Cultivation 27 specify a government assistance scheme for the seaweed industry and its implementation procedures. Licensing In the Philippines, a licence is mandatory for seaweed farming in public waters. Only citizens of the Philippines or a business entity controlled with more than 60 percent of the capital stock by citizens of the Philippines are eligible for a seaweed farming licence. The duration of the licence is up to ten years and subject to renewal. The licence fee is PHP50 about USD1.2 per hectare. A family is only eligible for one licence. In principle, the maximum farm size is one hectare for a family farm and 30 ha for a business entity partnership, associations, cooperatives or corporations. These general regulations specified in the Fisheries Administrative Order No. 146 BFAR, 1983 may be altered by local government according to special local conditions. For example, in Calatagan, the local government has limited the maximum farm area per household to 2 000 m 2 in order to provide opportunities to more potential farmers and at the same time maintain the quality of coastal waters Espaldon et al., forthcoming. Established by government for environmental sustainability andor social equity, regulations over seaweed farming such as those in the Philippines inevitably impose 22 Available at: www.fao.orgfisherylegalframeworknalo_solomonislandsen 23 Available at: http:faolex.fao.orgdocspdfind66493.pdf 24 Available at: http:faolex.fao.orgdocspdfind66500.pdf 25 Available at: http:moef.nic.inassetsso19e.pdf 26 Available at: www.coochbehar.gov.inFisheryPDFfilesNFDB_Guidelines.pdf 27 Available at: http:nfdb.ap.nic.inhtmlseaweed.htm constraints on seaweed farming development. Such constraints may result in economic inefficiency. For example, more productive farmers may have difficulties in expanding their operations because of the restrictions on farm size. Studies should be conducted to evaluate the impacts of formal or informal government regulations on the economic efficiency of seaweed farming; such studies would shed light on the way of achieving optimal trade-offs among the economic, social and environmental dimensions of seaweed farming. In Indonesia, the government has tried but failed to establish a licensing scheme to regulate seaweed farming; tenancy issues have been usually decided by community members through a participatory approach 28 Neish, 2013. It appears that the lack of formal regulations has not deterred the rapid expansion of seaweed farming in Indonesia. However, this situation may change as competition over coastal natural resources e.g. from the tourism industry intensifies. 29 In Solomon Islands, private trading companies need to acquire a licence to export raw seaweeds. Seaweed export licences were issued to six exporters in 2005, but only two licence holders actually exported seaweed during the year; and only one exporter renewed its licence in 2006 Tinne, Preston and Tiroba, 2006. A main concern over the licensing system is that the bureaucratic system may hinder the development of the industry, especially when government lacks the capacity to manage it properly. However, proponents argue that, as the volume of the country’s seaweed production is limited, the licensing system could avoid unnecessary competition and give more reliable exporters sufficient profit margins to survive and thrive Tinne, Preston and Tiroba, 2006. In the United Republic of Tanzania, licensing has not been a major barrier for commercial seaweed exporters entering the business because the government has generally wished that the existence of more buyers would give seaweed farmers more options to sell their produce. However, as discussed above, it appears that the “free trade” model did not help solve the problem of low seaweed prices. Indeed, instead of paying higher prices, seaweed buyers in the United Republic of Tanzania often competed for more seaweed by lowering their quality standards MNRT, 2005. This situation raises the question of whether regulations on seaweed exporters e.g. a more stringent licensing system similar to that of Solomon Islands are warranted. Quality standards The low quality of seaweed is deemed a perennial problem in carrageenan seaweed industry. Ideally, the market mechanism could motivate farmers to improve the quality of their seaweed produce by rewarding such efforts with higher prices, but this may not be the case in practice. For example, seaweed buyers in the United Republic of Tanzania usually paid uniform prices for all seaweeds regardless of their quality MNRT, 2005. In the Philippines, traders or processors sometimes tolerate malpractices such as adulterating seaweed with water, salt andor other impurities, especially when seaweed is in short supply Hurtado, 2013. The public sector could help to improve the quality of seaweed by establishing quality standards. In the Philippines, standard-setting government agencies have established quality standards for dried raw seaweed Hurtado, 2013. In Solomon Islands, one immediate action in its Aquaculture Development Plan 2009–2014 is 28 Participatory governance takes the form of self-regulation and comanagement with neighbouring and competing farmers working together to coordinate environmental and production measures. Compliance is enforced by peer pressure. The motivation may be altruistic, but also self-interested in order to maintain a healthy husbandry environment Hishamunda et al., 2012. 29 According to the news report “Bali seaweed farmers under threat”http:beatmag.comdailybali- seaweed-farmers-under-threat, seaweed farmers in some areas of Bali, Indonesia, need enabling regulations to help them cope with the increasing pressure from tourism and property development. 50 to establish seaweed quality standards MFMR, 2009. In the United Republic of Tanzania, the Seaweed Development Strategy Plan SDSP has suggested several quality standards and encouraged seaweed farmers to obey and seaweed exporters also called developers to enforce quality standards MNRT, 2005. Public assistance The case studies have documented many cases of public assistance to seaweed farming by government, development agencies, NGOs andor research communities. Typically, public assistance includes providing seaweed farmers with farm materials cultivars, ropes, tie-ties, etc., training, extension, business development services, financial services, and funding supports. In the Philippines, the BFBR has also supported the establishment of seaweed nurseries to address the issue of inadequate cultivars Hurtado, 2013. In India, the NFDB has offered funding support to establish seaweed processing plants Krishnan and Narayanakumar, 2013. In Indonesia, 40 percent of surveyed farmers had received grants or soft loans from government agencies Neish, 2013. In Mexico, inhabitants of Dzilam de Bravo expected public funding to help them engage in seaweed farming Robledo, Gasca-Leyva and Fraga, 2013. In the United Republic of Tanzania, government has provided planting materials to seaweed farmers in order to reduce their dependence on exporters Msuya, 2013. In India, seaweed farmers in Tamil Nadu have been able to obtain a partial subsidy from a rural development agency, which has subsidized up to half the cost of their investments Krishnan and Narayanakumar, 2013. Liaison and mediation are another type of public assistance. In Zanzibar, the United Republic of Tanzania, government has tried to facilitate farmers and exporters to sign agreements on contract farming and mediate their conflicts and disputes, but it seems that the efforts have not always been successful Msuya, 2013. In Solomon Islands, the MFMR has been asked to negotiate with shipping companies on behalf of seaweed farmers for lower freight rates Kronen, 2013. Global carrageenan seaweed farming has also benefited from technical research and dissemination undertaken by research communities Msuya, 2009. The University of the South Pacific has tested quarantine protocols for introduced seaweed and developed training manuals for prospective farmers Sulu et al., 2003; Pickering, 2006. Manuals and monographs have been published by SEAPlant.Net based in Indonesia and these are available on the Internet. In the Philippines, academic experiments have been spearheaded by the University of the Philippines as a leading research institution, the Southeast Asian Fisheries Development Center-Aquaculture Department, and Cargill Texturizing Solution SAS France, a multinational carrageenan company based in the country Hurtado, 2013. In Mexico, the pilot project was an academic experiment, and the Center for Advanced Studies and Research CINVESTAV has emerged as the leading research centre in that country Robledo, Gasca-Leyva and Fraga, 2013. The paper on Indonesia in this technical paper recognizes that much of the seaweed research in the Coral Triangle has been done in the Philippines Neish, 2013. The India case study describes the activities of the Seaweed Research Association, the Aquaculture Foundation and other NGOs. Not only have they undertaken research, they have also assisted farmers with training, financing and collaborative development Krishnan and Narayanakumar, 2013. Public assistances have not always been effective. For example, in the United Republic of Tanzania, the SDSP has multiple objectives, including fostering a conducive investment environment, reducing the dependence of seaweed farmers on exporters through capacity building, expanding extension and research, increasing productivity through best management practices, and increasing awareness of the potential of seaweed farming as an income-generating business MNRT, 2005. However, the SDSP has been mostly ineffective because of a lack of implementation. The lack of extension officers has been one of the problems. Despite many efforts of fisheries officers, conflicts between seaweed farmers and buyers have remained a major issue, deterring the development of seaweed farming in many regions Msuya, 2013. Public assistance provided by development agencies and other donors is often implemented through short-term projects and, hence, faces the issue of continuity. For example, seaweed farming in Solomon Islands has relied significantly on projects funded by the European Union Member Organization such as the Rural Fishing Enterprise Project RFEP and the Commercialization of Seaweed Production in Solomon Islands CoSPSI project Kronen, 2013. As the CoSPSI project was finishing in 2009, one of the immediate actions in the Solomon Islands Aquaculture Development Plan 2009– 2014 was to explore ways to sustain seaweed farming development after the end of the project MFMR, 2009.

6. LESSONS LEARNED AND THE WAY FORWARD