Abstract
Institutions matter for development but there is no clear consensus on how existing institutions can be transformed to better accommodate economic activities in an inclusive and sustainable manner (Acemoglu and Johnson 2012). Institutions can be defined in various ways. In this chapter, we consider institutions as mechanism that shape agents’ behaviors: “a system of social factors that conjointly generate a regularity of behavior” (Greif 2006, 30). Here, a system is considered as the combination of ‘rules of the game’, norms, beliefs, routines, organizations, and interactions that influence the outcome and the behavior of the various agents involved. It is also “self-sustaining salient patterns of social interactions, as represented by meaningful rules that every agent knows and are incorporated as agents’ shared beliefs about how the game is played and to be played” (Aoki 2007, 6). The common point in the above statements is the idea that institutions are the mechanisms that determine the individuals’ behaviors as well as the outcomes of complex interaction among stakeholders.
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- 1.
- 2.
According to some findings, several generations of the ISA virus developed in Chile, apart from the one believed to have come from Norway (Alvial et al. 2009).
- 3.
Currently, the ISA virus affects only Atlantic salmon .
- 4.
The gap is caused by the rise in the price of salmon. The decrease in the value of exports is smaller than that of volume due to the rise in price per kg of salmon caused by the shortage of the supply of salmon, due in turn to the decrease in production in Chile.
- 5.
- 6.
Just after the establishment of this law in March 2010, the government changed from President Bachelet to President Piniera, of the opposition party.
- 7.
The previous law did not set limits on the duration of ownership.
- 8.
The law requires a monthly payment of 2 UTM (Unidad de Fomento) per ha of cultivation center, up to the first 50 ha and 4 UTM per ha for the area exceeding 50 ha. 1UTM was US$46.58 as of March 2012. The payment was increased from 2 to 4 UTM per ha per month to 10 UTM per ha per month. The increase of revenue from concessions (patente in Spanish) was used to finance enforcement of regulations and research (Sernapesca, interview, Mr. Burgos 2011). In 2012, the fee is expected to rise further to 35 UTM per ha.
- 9.
These are Appropriate Areas for Aquaculture (AAA), Regulation on the Environment (Reglamento Ambiental para la Acuicultura: RAMA) and Sanitary Regulation (Reglamento Sanitario para la Acuicultura: RESA). AAA share common epidemiologic, oceanographic, operational, or geographic characteristics, and have complied with both environmental and sanitary regulations before granting concessions. The identification of an AAA requires examining various information including alternative uses of the site such as natural reserves, tourist attractions, indigenous population, harbor and natural habitat for other hydrobiological resources.
- 10.
This is described in Chap. 5.
- 11.
At the time when law was issued, there were four zones and 23 barrios in the 10th region and three zones and 33 barrios in the 11th region. In the 12th region, 17 areas are identified but zones and barrios are not yet clarified.
- 12.
In 2010, the 10th and 11th regions were divided into seven macrozones (four in the 10th region and three in the 11th region) and 58 barrios (24 in the 10th region and 34 in the 11th region) (RS. No 450; see Fig. 6.1) but this was modified into 61 barrios (24 in the 10th region and 37 in the 11th region) in 2011 (Subsecretaria de Pesca 2011 res, extebti 18.96).
- 13.
The original proposal for dividing fish farming areas into barrios in the 10th and 11th regions was made by SalmonChile (interview, Mr. Odebret 2011).
- 14.
Ley exenta is a form of law that does not require political approval by Congress. This law can be issued by the Undersecretariat of Fisheries.
- 15.
The fishery administration was initially placed under the Ministry of Agriculture but was transferred to the Ministry of Economy in 1978. This is due to the export potential of extractive fishery at that time. Tasks related to fishery are divided in the following manner: the Undersecretariat of Fisheries makes regulations and policy while the National Fisheries Service enforces and regulates. There were other fishery associated institutions , such as the Undersecretariat of Marine and The Fisheries Development Institute (IFOP ). The former is involved in granting permission for the use of coastal areas as well as control of shipping used in maritime transport. The latter is a private organization with public origins dedicated to conducting applied research on fishery for policy purposes. Until recently, IFOP’s research was mainly dedicated to extractive fishery but currently IFOP is increasingly involved in regulation setting research for aquaculture.
- 16.
Such as changing the organizational structure and the allocation of resources in terms of number of employees, positions, and expertise of employees. It was found that many additional staff are hired as “consultants” due to the limitation in official posts (interview with Ms. Saa 2011).
- 17.
Initially, this was a small unit consisting of eight people: four officers from the ‘Fish Sanitary Unit’ and four officers from the ‘Fish Administration Unit’ (interview, Ms. Gallardo 2011).
- 18.
These increases in the number of employees came about through increases in contract-based employees rather than increases in permanent staff.
- 19.
The officers are placed as follows: five in the 10th region, ten in the 11th region after ISA compared to one in the 10th region and one in the 11th region before ISA. At the time of the interview (Nov. 2011), the head of the department, Ms Gallardo, reported that there were about 50 officers in her unit administering the sanitary issues in the following regions: Metropolitan region (RM), 7th, 8th, 9th, 14th, 12th, 11th and 10th. In addition to 50 officers enforcing sanitary regulations, there are additional officers to administer environmental regulations, although environmental staffs are not as numerous as sanitary staff (interview, Ms Gallardo 2011).
- 20.
The average price of salmon was declining from US$5.9 per kg in 1992 to US$3.1 per kg in 1999. As a result, mergers and acquisitions took place in order to (1) increase the scale of production to lower unit costs and (2) secure inputs and services through vertical integration within the main production line of salmon farming firms (including fish feed, eggs and smolt production (pisciculture), the fattening phase , and processing). For instance, the leading Chilean firm, AquaChile, merged with Salmon Pacific Star in 1999, acquired Best Salmon in 2003, Salmon Chiloe, Salmon Cailin, Salmon Maulin and Aquas Claras in 2005 and went into the fish feed business with BioMar as Alitec in 2006. The same was true for Marine Harvest, which was acquired by the Dutch animal feed company Nutreco in 1999, acquired Stolt Seafarm (pisciculture) in 2008 but then sold to Norwegian firm Panfish, which also purchased Fjordo Seafood Chile in 2009. Fjordo Seafood itself was the result of a merger between Salmones Linao and Salmones Tecmar in 1999. These mergers and acquisitions transformed the industrial structure into an oligopoly in 2007, which is discussed in Chap. 4.
- 21.
See Chap. 4 for more details.
- 22.
It was first established in 1986 and called the Association of Chilean Salmon and Trout Producers (APSTC). APSTC limited its membership to producers of salmon and trout. In 2002 it changed its name to SalmonChile and opened its membership to input and service providers.
- 23.
In the 2000s, the Association created voluntary standards of traceability and systems and quality assurance for the salmon industry in order to respond to increasing international requirements. Instituto Technologia de Salmon (The Salmon Technology Institute, INTESAL), an institute associated with SalmonChile, created Integrated Management Systems (Systema Integrado de Gestion: SIGES) combining major standards in the global market such as ISO, OSHA, HACCP, and best-practice guidelines. SalmonChile was trying to harmonize SIGES to global standards among the members of Salmon of the Americas in 2004. The harmonizing of standards continued until recently, as SalmonChile signed an agreement in 2010 to launch standards called SALMONGAP, the first internationally recognized standards for the cultivation of salmon in Chile following the GLOBAL GAP (Ibieta et al. 2011).
- 24.
In the early 2000s, the Association took part in formulating the National Aquaculture Policy (PNA) by the National Aquaculture Commission, and was a party to signing the cleaner production agreement with public sector organizations at the regional level.
- 25.
This view was also shared by the Mr. Odebret, the Manager of SalmonChile (interview, Mr. Odebret 2011).
- 26.
These were the Office of the Undersecretariat of the Marine, the Office of the Undersecretariat of Fisheries, the National Fisheries Service, the Hydrographic and Oceanographic Service of Marine, the General Water Authority, the National Commission for Environment, and the General Treasury of the Republic. Many organizations were involved in permitting aquaculture; hence the law was created to simplify the procedure.
- 27.
In order to cultivate salmon in the open ocean, firms were required to obtain concession rights; however, this process took rather a long time (on average between 7 and 8 years (interview, Mr. Sandoval 2011). A shorter process was achieved during the period 2003–2006. This corresponds to the period when Mr. Sandoval was Undersecretary of Fisheries.
- 28.
No contact was made between the Undersecretary of Fisheries and SalmonChile between 2006 and 2007. This is due to the difference in the priority put on this sector (more on small-scale fishery) by the new Undersecretary of Fisheries, a successor of Mr. Sandoval, at that time (interview, Mr. Sandoval 2011).
- 29.
Detail is documented in Iizuka (2003).
- 30.
As of 2013, OLACH does not seem to be in operation.
- 31.
These are mainly the new entrant firms. For instance, Salmones Cupquelan, whose cultivation center was in a secluded area in Aysen (the 11th region), was considered to be one that may have had good sanitary management until its cultivation site was also affected by the ISA virus in 2011.
- 32.
Salmones Friosur was considered to be one, as it was not affected by ISA for a long time. It was suspected that it might have had different sanitary management due to more experience in sanitary conditions as it also deals with chicken and pork.
- 33.
Those firms that produced a higher percentage of salmon coho, for example, Mirasol.
- 34.
For instance, Marine Harvest was the top exporter in 2007 but in the first half of 2011, it is the 11th exporter of salmon by value.
- 35.
The following firms joined ACOTRUCH in addition to the original founding members: Salmones Chile, Salmones Ice Val in 2009, Piscola Entre Rios and Sea Salmon Ltda in 2010, and Trusal in 2011. Trusal left SalmonChile to join ACOTRUCH.
- 36.
The shock from ISA did not affect the suppliers immediately. Even after the suspension of cultivation sites, washing and maintenance work on nets continued.
- 37.
There is a high percentage of informal activities in the service suppliers of the salmon industry.
- 38.
This Mesa de Salmon , although the name is the same, is different from the one organized in 2008.
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List of Articles Used from Aqua.cl
2007, 21 Nov. Salmonicultores y gobierno realizaron simposio por virus ISA.
2007, 11 Dec. El ‘G6’ busca solucionar lso desafios de la salmonicultura.
2008, 18 Jan. Sernapesca desmiente informacion sobre posibles responsabilidades en aparicion de virus ISA.
2008, 17 Mar. Salmonicultores adelantan nueva estrategia el ISA.
2008, 3 July. Positivos resultados arrojo mission tecnologica sobre medidas de bioseguridad.
2008, 8 August. Encuesta analizo la percepción de la industria salmonicultora en la región de Los Lagos.
2008, 21 Nov. Industria del salmon acuerda Neuvo sistema de Produccion.
2008, 10 Oct. Industria del salmon anuncia cambios en su modelo productive para el 2009.
2009, 12 Jan. Epicentro de virus ISA se translada a la Region de Aysen, y Sernapesca confirma presencia en truchas.
2010, 2 Sept. Mario Montanari se refiere a las proyecciones de Invermar y a la actual situacion gremial.
2010, 2 Sept. En conflicto en el gremio salmonicultor que termino con la salida de AquaChile.
2010, 8 July. Alberto Montanari afirma que SalmonChile no debiera hacer el papel de fisicalizador sanitario.
2010, 20 Sept. Salmones antartica renuncio a SalmonChile.
2013,9 Feb. Fue Publicada en el Diario Oficial nueva Ley de Pesca No. 20.657.
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Appendix: Some Further Institutional Changes Taking Place in Chile’s Fishery Sector
Appendix: Some Further Institutional Changes Taking Place in Chile’s Fishery Sector
Institutional change in Chile with regard to aquaculture is an ongoing process. The above chapter contained information until 2011. The following details some of the changes that have taken place while this chapter was being written.
The new fishery law (Ley de Pesca, Ley No. 20.657) was published in the official newspaper on 9 February 2013. This law focuses mainly on the extractive fishery part of the law, modifying the LGPA and its modifications (Ley No. 18.892); however, some of the issues apply to aquaculture (Revista Aqua, 9 Feb. 2013). Some of the principles demonstrated by this law (Ley No. 20.657) clearly show the change of perspective within the ministry and the sector as a whole towards managing natural resources for long-term economic activity. For instance, it is noteworthy that this law states that government’s principal focus is ‘sustainability of hydrobiological resources’ rather than just ‘administration of access to resources’, as in the past. The following lists some of the main points of this law:
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The central issue of the new regulation is sustainability of fishery resources. The new law incorporates maximum sustainable yield standards so that resources can be used for the medium and long term. These criteria have been shared and evaluated by international NGOs such as Greenpeace, OCEANA, and WWF, among others.
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Decisions need to be made according to scientific and biological criteria, not just according to the high participation of stakeholders in the sector. Various scientific committees are to be created to support such a process.
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Incorporate more social protection for workers, such as incorporation of a social platform for industrial workers, including life insurance etc.
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Strengthen research capacity through creation of a National Research Programme for Fishery and Aquaculture. The basic research of this program will be done by the Instituto de Fomento Pesquero* (IFOP ), whose budget will be directly dependent on the Ministry of Economy. The existing programme, administered by the Fishery Research Fund (Fondo de Investigacion pesquera: FIP), will be integrated with the above programme. The evaluation system involving external evaluators will be established to evaluate quality of researches conducted by the program.
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Strengthen the institutional capacity of the National Fisheries and Aquaculture Service** to monitor and enforce regulation.
* Up to now the IFOP was an independent research organization; the budget from the government for contract research was not on budget basis (interview, IFOP, Mr Guzman 2011).
** The National Fisheries Service changed its name to the National Fisheries and Aquaculture Service by Ley No. 20.597 published in Diario official, 3 Aug. 2012.
As can be seen from the above, some changes are already taking place in the right direction, such as incorporation of the sustainability concept, incorporating third-party evaluation (NGOs etc.), emphasizing scientific rigour, transforming institutions to strengthen research (IFOP , FIP), incorporating and strengthening evaluation, checking (technical committees, incorporation of NGOs and others) and enforcement (strengthening the National Fishery and Aquaculture Service) mechanisms.
Source: Undersecretariat of Fisheries (Subsecretaria de Pesca), 23 Nov. 2012. www.sernapesca.cl (accessed 10 Feb. 2013).
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Iizuka, M. (2016). Transformation of Institutions: Crisis and Change in Institutions for 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_6
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