Abstract
The current export boom in natural resources is considered to be the ‘new window of opportunity’ for many developing countries endowed with natural resources. Recent studies (Blomström and Meller 1991; de Ferranti et al. 2002; Maloney 2002; Sinnoit et al. 2010; Perez et al. 2009; Iizuka and Soete 2011) indicate that natural resource-based activities can be knowledge intensive, which contrary to earlier understandings, would lead them to productivity-led development pathways.
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Notes
- 1.
An exercise of this sort is currently being applied in an experimental preliminary phase in Chile—see Chap. 7 of this book.
- 2.
Stirling (2008, 2010) emphasizes the need for democratic and participatory regulatory mechanisms, especially to deal with ‘ignorance’—unknown knowledge. Although we fully admit the importance and relevance of his argument, we will use his framework to focus on the areas where experts need to convert ‘ambiguity’ and ‘uncertainty’ knowledge into more calculative ‘risk’.
- 3.
Natural resources such as air and water are typical example of commons . Commons has the properties that can have excludability (it is costly to exclude others from using the resources) and subtractability (each user is capable of subtracting from the welfare of other users).
- 4.
- 5.
This was confirmed in the recent public lecture by Mr. Mario Pucchi, of AquaChile SA—the largest Chilean salmon farming firm. He said: ‘production is 50 % larger per concession in Chile while total cultivation area is 70 % smaller’ (Pucchi 2009).
- 6.
Hardin (1968), in explaining ‘the tragedy of the commons ’, used a simple model of ‘herder’ behaviour. By putting one more cow in a limited space of land (common), the individual benefit maximization attempt—through the eventual overloading of the resource—would cause a reduction in the collective benefits to all users of the common.
- 7.
The economic conversion rate is the rate at which kilograms of feed are converted into 1 kg of salmon in economic value terms. The biological conversion rate is only in biological terms.
- 8.
One of the former directors of a salmon firm estimated the industry’s total loss as a result of the ISA crisis at US$550–600 million. This included overall loss of biomass, loss of growth, loss of increased treatment costs, operational costs, and processing costs (Johnson 2007).
- 9.
There are some changes in the division of barrios ; for details, see Chap. 6.
- 10.
The authors are aware that the dynamic game-theoretical notion needs to be incorporated into the model to be more realistic. However, the following section will deal only with the static model to calculate the risk. The calculation of game-theoretical interactions would require data that are not available.
- 11.
Notice that the elasticity involved in the model reflects a certain amount of discretion. It was chosen with the advice of industry experts.
- 12.
The exercise is carried out only for the Los Lagos region due to data availability.
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Iizuka, M., Zanlungo, J.P. (2016). Environmental Collapse and Institutional Restructuring: The Sanitary Crisis in the Chilean Salmon Industry. In: Hosono, A., Iizuka, M., Katz, J. (eds) Chile’s Salmon Industry. Springer, Tokyo. https://doi.org/10.1007/978-4-431-55766-1_5
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