This is a summary paper on the redistribution and restructuring of the South African squid industry. Political normalisation in South Africa during 1994, and the drafting of the new Marine Living Resources Act 1998, led to the imperative to transform the fishing sector to more equitably reflect the racial demographics of the country. The current approach to redistribution in the squid industry is a command and control instrument. It takes access rights, in the form of fisher permits, away from existing boat owners and redistributes them to new entrants from historically disadvantaged communities. The lack of human skills and capital - which is a persistent legacy of apartheid - of the new entrants, coupled with one year tenure of permits, has resulted in a market for paper permits. This system also results in income, rather than wealth, redistribution. An incentive market based process of transformation is proposed. It is argued that long term access rights on vessels can be used as a behavioral incentive for boat owners to internally transform their own ownership structures to reflect the demographic distribution of the country.
Mather, D., W. Sauer and P. Britz. Redistribution and Transformation in the South African Fishing Industry: The Case of the Squid Fishery. In: Microbehavior and Macroresults: Proceedings of the Tenth Biennial Conference of the International Institute of Fisheries Economics and Trade, July 10-14, 2000, Corvallis, Oregon, USA. Compiled by Richard S. Johnston and Ann L. Shriver. International Institute of Fisheries Economics and Trade (IIFET), Corvallis, 2001.