New
Transnationalism
as a Governance
Structure for
Sustainable
Development
An Analysis of the
Indonesian Tuna Sector
Amy van Bragt - 10295623 Master Thesis Political Science – International Relations
Supervisor: Dr. R. J. Pistorius
Second Reader: Dr. H.A.B. van der Heijden University of Amsterdam
Abstract
This thesis focuses on the role of certification schemes as new transnational governance. The Indonesian tuna sector has been chosen as a case study, to research if and in what way new
transnationalism as a governance theory has been put in practice. Theories on private transnational governance have focused on certification schemes in the past, but research on the attitudes towards
this type of governance of actors from developing countries has not been extensively done. This thesis wants to fill this gap by putting focus on; the way actors from within the Indonesian tuna sector are involved in governance towards sustainable development; the way actors from within the Indonesian tuna sector view certification schemes; what type of governance actors from within the Indonesian tuna sector see as most successful for achieving sustainable development. This thesis will argue that (1) the case shows the need of national governance to; (a) reach sustainable development and (b) get to MSC certification, (2) the case study relates to a new transnational governance structure as all actors perceive certification schemes as positive organisations to ensure sustainable development of the Indonesian tuna sector, (3) new transnationalism as a theory needs to be placed in the contexts of different countries and sectors as they will show a need for nuance.
Acknowledgements
This thesis has been a learning experience and at times a struggle. I could not have finished it without the advice and support of a number of people, who I would hereby like to thank. First of all I would like to thank my supervisor Robin Pistorius for his guidance and advice throughout the process, and Hein-Anton van der Heijden for being willing to read and asses this thesis. I would like to thank all the people who consulted me in the process of crystallizing my research subject. The respondents who have taken the time and effort to participate in the interviews deserve special thanks, without their help I would not have been able to do the research. Finally I would like to thank the people close to me; my parents and boyfriend Shivan Jhinkoe-Rai for always believing in me, for supporting me and for putting up with me during stressful moments; my friends; and special thanks to Susi Huisman for all the advice.
Abbreviations
ASC – Aquaculture Stewardship Council
ASEAN – Association of Southeast Asian Nations
CBI – Centre for the Promotion of Export from Developing Countries CSO – Civil Society Organization
DG – Director General
EEZ – Exclusive Economic Zone EU – European Union
ESG – Earth System Governance
FAO – Food and Agricultural Organization FFA – Pacific Island Forum Fisheries Agency FIP – Fishery Improvement Programme FSC – Forest Stewardship Council IDT - Inpres Desa Tertinggal
IOTC – International Organization Tuna Commission IUU – Illegal, Unreported and Unregulated
MOMAF – Ministry of Marine Affairs and Fisheries (Indonesia) MoU – Memorandum of Understanding
MSC – Marine Stewardship Council NGO – Non-governmental organisation
NOAA – National Oceanic and Atmospheric Administration NSMD – Non-state market driven
OECD – Organisation for Economic Co-operation and Development PTG – Private Transnational Governance
TC – Transnational Corporation
UNDP – United Nations Development Programme UNEP - United Nations Environment Programme US – United States
WCPFC – Western and Central Pacific Fisheries Commission WSSD - World Summit for Sustainable Development
Table of Contents
Abstract ... 3
Acknowledgements ... 4
Abbreviations ... 5
Table of Contents ... 6
1. Introduction ... 9
1.1 Research Question ... 91.2 Theoretical Framework: New Transnationalism ... 9
1.3 Method ... 10
1.3.1 Case selection ... 10
1.3.2 Research Methods ... 10
1.3.3 Validity and Reliability ... 11
1.4 Relevance ... 12
1.5 Main arguments ... 12
1.6 Thesis Outline... 12
2. Theoretical Framework ... 14
2.1 Defining Sustainability ... 14
2.2 The Rise of Private Transnational Governance ... 15
2.3 From Private Transnational Governance to New Transnationalism... 17
2.4 Global Certification Schemes as a Part of New Transnationalism ... 18
2.5 The Voice of Developing Countries in Global Certification Schemes ... 20
2.6 Chapter Conclusions ... 21
3. Case-Study Introduction ... 23
3.1 The Tuna Sector ... 23
3.1.1 Introduction to the Tuna sector ... 23
3.1.2 Identified Sustainability Issues within the Tuna Sector ... 25
3.1.3 Market Requirements ... 27
3.1.3.1 EU requirements ... 27
3.1.3.2 US Requirements ... 29
3.1.3.3 Japanese Requirements ... 29
3.1.4 The Marine Stewardship Council ... 29
3.1.5 The Role of Developing Countries within Certification Schemes for Fishery Products ... 31
3.2 The Case of Indonesia ... 32
3.2.2. Identified Struggles with Sustainable Tuna Management in Indonesia ... 33
3.2.3 New Transnational Organisations for Sustainability in the Indonesian Tuna Sector ... 34
3.3 Chapter Conclusions ... 35
4. Results: Attitudes towards a New Transnational Governance Structure ... 37
4.1 Position of the Indonesian Government in a Sustainable Indonesian Tuna Sector ... 37
4.1.1 Identified Struggles with Government Regulation ... 38
4.1.1.1 Illegal Fishery in Indonesia ... 38
4.1.1.2 Unreported Fishery in Indonesia ... 39
4.1.1.3 Unregulated Fishery in Indonesia ... 39
4.1.2 Identified Possibilities for State Governance ... 41
4.1.2.1 Initiated Regulation Regarding IUU... 41
4.1.2.2 Regulation Regarding Catching Methods ... 43
4.1.3 The State and New Transnationalism in the Indonesian Tuna Sector ... 44
4.2 Position of Exporters in a Sustainable Indonesian Tuna Sector ... 45
4.2.1 Identified Struggles for Exporters ... 45
4.2.1.1 Dependence on the Market ... 45
4.2.1.2 Dependence on the Indonesian Government ... 45
4.2.1.3 Dependence on the Indonesian Fishermen ... 46
4.2.2 Identified Possibilities for a Positive Influence on Sustainability ... 46
4.2.2.1 Incentives from the Market ... 47
4.2.2.2 Government Lobbying ... 47
4.2.3 Exporters and New Transnationalism in the Indonesian Tuna Sector ... 48
4.3 Position of Fishermen in a Sustainable Indonesian Tuna Sector ... 48
4.3.1 Identified Struggles for Fishermen ... 49
4.3.2 Identified Possibilities for a Positive Influence on Sustainability ... 49
4.3.3 Fishermen and New Transnationalism in the Indonesian Tuna Sector ... 49
4.4 Position of Associations in a Sustainable Indonesian Tuna Sector ... 50
4.4.1 Identified Struggles for the Associations ... 50
4.4.2 Identified Possibilities for a Positive Influence on Sustainability ... 50
4.4.3 Associations and New Transnationalism in the Indonesian Tuna Sector ... 51
4.5 Position of Certification Schemes in a Sustainable Indonesian Tuna Sector ... 51
4.5.1 MSC ... 52
4.5.1.1 Identified Struggles with MSC ... 52
4.5.1.2 Identified Possibilities for a Positive Influence on Sustainability ... 52
4.5.2 Fishing & Living and Seafood Savers ... 53
4.5.2.1 Identified Struggles for Local NGO’s ... 53
4.5.2.2 Identified Possibilities for a Positive Influence on Sustainability ... 53
4.5.3 Certification Schemes and New Transnationalism in the Indonesian Tuna Sector ... 54
4.6.1 Identified Struggles ... 55
4.6.2 Identified Possibilities for a Positive Influence on Sustainability ... 55
4.6.3 The Market and New Transnationalism in the Indonesian Tuna Sector ... 55
4.7 Chapter Conclusions ... 56
5. Conclusions and Discussion ... 59
5.1 Conclusions ... 59
5.2 Discussion ... 61
References ... 62
Annexes ... 67
A List of Respondents ... 67
B Interview list – associations/government ... 67
C Interview list – exporters ... 68
D Questionnaire – associations/government ... 69
1. Introduction
1.1 Research Question
The focus of this master thesis is the role of certification schemes, as a form of new transnationalism, within the current Indonesian tuna sector. Global certification schemes have been oriented towards developed countries from the beginning. In the past ten years more attention has been paid to the way developing countries have been included in these schemes. The upcoming of these private
transnational governance organisations are the result of (1) governments having limited capacity to
address global challenges and (2) the increase in the organization of societal actors on a transnational level (Dingwerth 2007: 186). Recent literature has been increasingly focused on these types of
organisations (Dingwerth 2007; Dingwerth 2008; Gulbrandsen 2009; Marx & Cuypers 2010; Miller & Bush 2014). Klaus Dingwerth has argued that certification schemes are part of new transnationalism, a form of private transnational governance whereby non-state actors make and implement rules and regulation regarding environmental issues. He argues that new transnationalism can be an effective and legitimate governance type when looking at the future of sustainability issues. This thesis will test his theory, it will assess in what way new transnationalism has set foot in the search of a sustainable Indonesian tuna sector. A research gap can be found in the linking of views from actors from developing countries to the governance of certification schemes. Therefore this research will answer the following research question:
To what extent and how is the struggle for the emergence of an Indonesian sustainable Tuna sector related to the emergence of a new transnational governance structure in support of sustainable fishery?
1.2 Theoretical Framework: New Transnationalism
In order to analyse the chosen case study this thesis will firstly focus on the concepts surrounding new
transnationalism. Chapter 2 will first provide a definition of sustainability, then an introduction to
private transnational governance and in what way it emerged will be given. This to understand the background of new transnationalism as a theory. Then the chapter will focus on new transnationalism, it will relate new transnationalism to other forms of governance to put it in perspective and show how it differs from other forms of governance. This theory has been chosen because it highlights the emergence of organisations that have been created for the purpose of rule-making and has been said to be the future of environmental governance. Fourthly the chapter will zoom in on a form of new
transnationalism, namely global certification schemes, as certification schemes will be a focal point
for the case study. As Indonesia is a developing country, the specific impact certification schemes have on developing countries and the way in which developing countries are involved in certification schemes will be analysed at the end of the chapter.
1.3 Method
1.3.1 Case selection
This thesis will focus on one case-study, “an intensive study of a single unit for the purpose of
understanding a large class of (similar units)” (Gerring, 2004: 341), namely the Indonesian tuna sector. The Indonesia tuna sector functions as a good example where a search for sustainability is an ongoing process at the moment. It is a good case to analyse if and in what ways the new transnational form of governance is present. The Indonesian tuna sector consists of a variety of actors; government, fishermen, processors, exporters, non-governmental organisations (NGO’s), associations and certification schemes. All actors play a factor within the sector and can contribute to sustainability. The question is in what ways is been looked at sustainability, what solutions for sustainability problems are being sought and what actors are involved in these solutions. The research will aim to show if new transnationalism as a governance structure, is indeed present in the Indonesian tuna sector.
1.3.2 Research Methods
The type of qualitative research that will be carried out is interviews, and the analysis of texts and documents. The analysis of texts and documents will focus on the tuna sector and its sustainability issues worldwide as well as specific for Indonesia. Different texts will be used to form a clear picture of the sector, the issues regarding sustainability in this sector and most importantly the specific case of Indonesia. These documents will consist of government information, information on relevant
certification schemes and reports from the Food and Agricultural Organisation (FAO). Sustainability in the Indonesian tuna sector is a current issue within the country, therefore there is not much
academic research available for the formation of a solid background. Scholars working on research in the Indonesia tuna and European consultants working in the Indonesian fishery sector with both Indonesian companies, the Ministry of Marine Affairs and Fisheries (MOMAF) and fishery associations have been consulted before the analysis of the Indonesian tuna sector.
To gain knowledge on the attitudes of different actors in the Indonesia tuna sector regarding
certification schemes and the future of sustainability, in depth-interviews have been conducted. To get a broad perspective on sustainability in the Indonesian tuna sector, the choice has been made to
interview actors involved in different parts of the sector. Respondents consist of people working for the associations in the fishery sector, the Indonesian government, exporters of tuna and a European consultant working in the Indonesian fisher sector. The sampling has been done through a snowball technique. People from these different groups have been approached through a personal network. The interviews that have been done are semi-structured interviews, a list of respondents can be found in Annex A. Annexes B to E contain the interview lists that have been used. They consist of a list of topics and have been adjusted for different sets of actors to specify certain questions.
1.3.3 Validity and Reliability
The used research methods pose challenges for the validity and reliability of this thesis. First of all, the semi-structured interviews might lead to false positivity. There is a chance of answering the questions more positively than the situation in reality is. This leads to concerns regarding the purpose of this thesis, namely if and in what ways there is a focus on a new transnational type of governance in the search for a sustainable Indonesian tuna sector, and what the attitudes are towards this governance type. Thus attitudes that will come forth out of the interviews might be biased.
The snowball strategy for the finding of respondents might also be a challenge. It might cause the research to be biased as some of the interviewees have met the researcher before and have relations to the other interviewees. This can lead to social desirable answers, but also to an overrepresentation of certain views, as related respondents might have similar views on the subject, while this might not be the case for all actors in the sector. The small sample of respondents makes it difficult to generalize conclusions that come out of the research.
A third challenge is the interview method. While skype interviews allow for face-to-face contact, not all respondents were able to conduct skype interviews. Two respondents have been interviewed through the means of a questionnaire. This method has caused respondents to be less elaborate in their answering and there was no possibility for the interviewer to lead the conversation and the
questioning.
The research has used different methods to address the above named challenges. One way of accounting for the small sample and snowball effect was to interview respondents from different segments of the Indonesian tuna sector, to get insight into many perspectives. Within the interview list and the questionnaire different methods have been used to answer in principle the same questions, but posed in a different fashion, as a internal control of the respondents answering.
The consultant that was interviewed has been consulted after a number of interviews already had been conducted. The consultant has worked with all interviewed respondents and has been working in the
industry for many years. As being partly unbiased, as the respondent has nothing to gain or lose by answering the questions, answers given by other respondents could be tested through his interview.
1.4 Relevance
This thesis wants to see if Dingwerth’ (2007) theory on new transnationalism is to be found in current searches for sustainability. The thesis aims to fill in a research gap surrounding private transnational governance in developing countries. Previous research has not yet shown the way in which actors from developing countries deal with certification schemes and moreover, the way they see the place of certification schemes in environmental politics.
1.5 Main arguments
This thesis will show that new transnational governance can partially be found in the Indonesian tuna sector. Three main arguments derived from the research are; (1) the case shows the need of national governance to; (a) reach sustainable development and (b) get to MSC certification, (2) the case study relates to a new transnational governance structure as all actors perceive certification schemes as positive organisations to ensure sustainable development of the Indonesian tuna sector, (3) new
transnationalism as a theory needs to be placed in the contexts of different countries and sectors as
they will show a need for nuance.
1.6 Thesis Outline
This thesis will be structured as follows. Chapter 2 will be concerned with the theoretical framework as laid out in the second paragraph of this chapter. Following the theoretical framework, chapter 3 will be providing an introduction to the case-study. It will firstly focus on the tuna sector as a whole. It will introduce the tuna sector and target the main sustainability issues that are present within the sector. Hereafter the chapter will focus on market requirements regarding the export of tuna. The Marine Stewardship Council (MSC) will be the main certification scheme this thesis will focus on, as it will show to be an important factor and component of Indonesian sustainability. Then the chapter will zoom in on the Indonesian tuna sector. It will name the sustainability issues specific to its sector and will focus on some local certification schemes. Chapter 4 is concerned with the results from the conducted interviews. It will showcase the attitudes of the respondents regarding six main actors in the Indonesian tuna sector and will analyse in which way the case-study fits into new transnationalism. The chapter will analyse if theory meets reality. Chapter 6 contains the conclusions that can be drawn
from the conducted research and will discuss limitations of this thesis and possibilities for future research.
2. Theoretical Framework
This chapter will be concerned with the theoretical framework of this thesis. The theoretical
framework will mostly focus on new transnationalism as a theory. New transnationalism as a theory is a useful way to analyse current issues in the environmental realm. This theory has been chosen in order to develop a framework to analyse the actuality of the Indonesian tuna sector. The theory highlights the emergence of organizations that have been formed for the purpose of rulemaking. Global certification schemes are a form of new transnational organizations. As certification schemes will show to be an important element in sustainable fishery and as the case-study will show that certification schemes are also an important factor in the search of a sustainable Indonesian tuna sector, this chapter will pay attention to these types of organizations and the effect and influence they have on developing countries.
Firstly a definition of sustainability will be given, as it is a leading concept in this thesis. The second paragraph will provide an overview of theories on private transnational governance, to showcase the emergence of governance structures in the environmental sphere. After shedding light on the debate surrounding private transnational governance, the chapter will highlight the emergence of new
transnationalism as a part of private transnational governance theory. New transnationalism focuses
on non-state actors that create and maintain rules and regulation regarding sustainability issues. Certification schemes are organisations that consist of non-state actors creating and maintaining rules and regulation regarding sustainability issues. The fourth paragraph will focus on these certification schemes. The paragraph will discuss the emergence of these organizations and will provide a basis for the certification scheme that will be the central new transnationalistic organization in the case study; namely the Marine Stewardship Council (MSC). The chapter will end with an elaboration on the way developing countries are affected by certification schemes and in what way they have access to certification.
2.1 Defining Sustainability
This thesis revolves around new transnational governance as a mode of sustainable governance of the tuna sector. There are many definitions of sustainability, and it is crucial for the understanding of this research to define what is meant when speaking of ‘sustainability’. As the case study in this thesis focuses on the fishery sector, the definition of sustainability is focused on the sustainable development of the fisheries sector.
The Food and Agricultural Organisation (FAO) has defined sustainable development as: “the management and conservation of the natural resource base, and the orientation of technological and
institutional change in such a manner as to ensure the attainment and continued satisfaction of human needs for present and future generations. Such sustainable development (in the agriculture, forestry, and fisheries sectors) conserves land, water, plant and animal genetic resources, is environmentally non-degrading, technologically appropriate, economically viable and socially acceptable” (FAO 1988). The World Wildlife Fund (WWF) also highlights the importance of living in such a manner that the environment is not compromised for generations to come, and defines sustainable
development as: “living within the limits of the natural environment without compromising the need of future generations” (WWF website1). The centre of both of these definitions, development that ensures resources will not be comprised for future generations, is also shared by the United Nations Environment Programme (UNEP), as was it shared in the World Summit for Sustainable Development (WSSD). (FAO 2007: 6).
These definitions applied for the tuna sector will entail the long-term production of tuna with respect to natural resources, in a way that it leads to socio-economic development for local fishery
communities and for other users of the resources.
2.2 The Rise of Private Transnational Governance
Global environmental politics has seen an increase in private transnational governance (PTG). Where
transgovernmental governance and intergovernmental governance used to be the leading regimes,
PTG has been on the rise in issues regarding the environment, labour conditions and social conditions.
Private transnational governance relates to the governance of state actors such as;
non-governmental organisations (NGOs), transnational corporations (TCs) and civil society organizations (CSOs). These actors have expanded their scope and modes of operation through the creation of norms, rules and standards. (Bernstein & Cashore 2007; Cutler 2002; Falkner 2003; Kalfagianni & Pattberg 2013; Ruggie 2004). The rise of private transnational governance has been triggered by a few phenomena.
Globalization has triggered the rise of private transnational governance. Private transnational
governance theory is a relatively new phenomenon, but theories on involvement of private actors in
governance are not. Transnational civil society gained more attention in the 1990s (Ruggie 2004: 502), but already existed in the 19th century (Falkner 2003: 73). Processes of globalization gave way to TCs who organized and started to sponsor environmental regimes and the evolvement of environmental standard setting (idem.: 75). In this view globalization is linked to the privatization of global markets, and the influences of markets on governance. The expansion of the function of the state gave way to
global governance, in first instance this was purely public authority. “A general insight is that governance is becoming less hierarchical and beyond control of states. Through globalization and transnationalization, political, administrative and jurisdictional levels have become interrelated and
interdependent.” (Bäckstrand et al. 2010: 9). It is thus argued that governance layers have become interrelated with the coming of globalization.
With the coming of globalization, industrial organization of value chains has moved to the global level, creating global value chains (Fransen 2012; Gereffi, Humphrey & Sturgeon 2005). The process of differentiation, whereby different elements in production have been taken apart and have been dispersed among different companies, or even different countries. This means that governance over a single value chain is no longer in the hands of one national government, for it has been dispersed beyond state boundaries. Cutler (2002: 23) has argued that this deregulation of industry and the authority gained by private actors through the age of neo-liberalism gave way to private transnational governance
There are different theories on the rise of private transnational governance. There are authors that claim that PTG has been able to challenge state governance because of the declining influence of the state itself (Dingwerth 2007; Gereffi, Humphrey & Sturgeon 2005; Strange 1996). There is another group of authors that argue that it is due to the pressure of non-governmental actors itself that has triggered the rise of private transnational governance (Falkner 2003; Fransen 2012).
The argument made by this first group of scholars, that governments are leaving a gap when it comes to the governance of environmental issues (Dingwerth 2007; Gereffi, Humphrey & Sturgeon 2005; Strange 1996), can be illustrated through the following. When looking at environmental issues, it becomes clear that there has been a lack of sound governance through state actors. Binding agreements on the international level or instruments on the national level, which can either be legally binding solutions or spreading information towards consumers about sustainable products and production, could trigger sustainable production and consumption. But international agreements have failed and non-legal instruments do not trigger enough sustainable consumption. (Gandenberger et al 2011: 109).
The rise of private transnational governance can also been seen as an outcome of pressure
administered by non-state actors, and thus being seen as actively acquired, instead of merely filling the gap (Falkner 2003; Fransen 2012). Falkner (2003: 76) argues that most cases of PTG are not purely private, but consists of a mix of regimes, where there is a fine line between the public and the private. What Falkner (2003) sees as the ‘pure’ form of PTG, which is governance that is completely outside of the real of state governance, is not the only reality when it comes to PTG. The pressure
in a later stage are adopted by states. In this way private transnational governance is more hybrid, and moves from the private sphere to the public sphere where national or international law incorporates governance structures influenced by non-state actors. (Falkner 2003: 76).
Governance at the global level has encountered a shift from state control to the involvement of private
actors, such as consumers, NGOs and TCs. This phenomenon has been analysed in two ways; namely state authorities not addressing environmental issues which triggered non-state actors to do so, and secondly non-state actors actively pressuring governmental authorities to focus on environmental issues. The next paragraph will showcase the transformation from private transnational governance to
new transnationalism as theories.
2.3 From Private Transnational Governance to New Transnationalism
This paragraph builds on private transnational governance as explained above. New transnationalism is a theory which takes PTG a step further, as it can be defined as the creation and implementation of rules by non-state actors. Where PTG also entails the influencing of governance structures by private actors, new transnationalism purely focuses on actors and organizations outside of the governmental realm that are actively constructing regulation regarding environmental issues. (Dingwerth 2007). In order to place new transnationalism this paragraph will discuss three types of governance as set out by Dingwerth (2007) and Earth System Governance (ESG) theory (Biermann 2010), before elaborating on new transnationalism.
To get to the theory of new transnationalism, Dingwerth (2007) first distinguishes three types of
governance. These types are; intergovernmental governance, which is state cooperation through
governments; transgovernmental governance, this is when policy problems are addressed by different national parliaments; and lastly transnational governance, where non-state actors influence
governments or intergovernmental organisations. If we take private transnational governance, as explained in the first paragraph, and see it as the overarching theory, it can be seen that Dingwerth (2007) highlights different aspects. Transnational governance, relates to private transnational
governance but limits it to defining it as merely influencing governments and intergovernmental
organisations. Biermann (et al. 2010) conceptualize Earth System Governance (ESG) as: “the
interrelated and increasingly integrated system of formal and informal rules, rule-making systems, and actor-networks at all levels of human society (from local to global) that are set up to steer societies towards preventing, mitigating, and adapting to global and local environmental change and, in particular, earth system transformation, within the normative context of sustainable development” (Biermann et al. 2010: 279). As with transnational governance, ESG sees a transition towards non-state governance, where different actors influence the governance processes regarding sustainable
development. It goes a step further than the influencing of governmental organisations, transnational
governance. New transnationalism can also be viewed as a part of PTG, but is purely focused on the
rulemaking of non-state actors and thus builds on the previously named governance types.
With his research, Dingwerth (2007) is seeking ways to optimize governance regarding the environment. He argues that new transnationalism can be an effective and legitimate governance structure when dealing with such issues (Dingwerth 2007: 9). The emergence of new transnationalism shows the phenomenon of organisations that are being formed for the sole purpose of private
transnational rule making. As with every governance theory, there are positive and negative elements in new transnationalism. A negative, or better said deficit, of transnational rule-making is that decision making and rule making is being done by non-authorised actors. The legitimacy of stakeholders and rule makers is always in question, for they have no official mandate for the decision making they are conducting. Dingwerth (2007: 200) considers this as the ground for power struggle within
transnational rule-making processes. He argues that there is democratic potential within these processes. Transnational rule-making often requires transparency throughout the decision making processes.
Organisations that design, implement and maintain regulation regarding the environment, are the type of organisations that fit in to new transnationalism as a theory. Getting a better insight in private
transnational rulemaking is a crucial element in answering the main research question of this thesis, as
one of the organisations set up for the purpose of private transnational governance is the Marine Stewardship Council (MSC). MSC is a global certification scheme and an organisation that designs, implements and maintains regulation. Chapter 4 partially focus on MSC in the light of the Indonesian tuna sector. The next paragraph will focus on global certification schemes as a part of new
transnationlist theory to provide the theoretical background for this organization.
2.4 Global Certification Schemes as a Part of New Transnationalism
Dingwerth (2007) acknowledges certification schemes as a part of new transnationalism. They can be seen as active organizations that create and implement transnational rule-making in the environmental sphere.
The last two decades have shown a new trend towards standard setting. Non-state actors have created new type of institutions for transnational environmental governance. These new institutions are market based certification schemes. These schemes go beyond voluntary measures, and are governance mechanisms that involve compliance of members. (Gulbrandsen 2010: 1-2).
Global certification schemes are a form of private transnational governance and new transnationalism. These schemes can be seen as organisations that actively create norms and form rules and regulations. They are private rule-setting organizations that guide and prescribe environmentally and socially responsible behaviour in a range of policy areas including; fisheries, forestry, agriculture and tourism, to name a few. (Cashore 2002: 506). Actors from different parts of value chains in the named areas work together to attain more sustainability. These networks bring together different types of actors, and the “main objective of these networks is to realize more sustainable production and consumption patterns from within the existing market structures” (Gandenberger et al. 2011: 108). Many of these networks use certification as the mechanism to accomplish this. They argue that certification schemes have gained a market-share and respond to the demand for sustainable products from consumers, both private and public. But it is difficult to assess the influence of private transnational governance on sustainability as research shows mixed outcomes; it can have a positive influence on sustainability in value chains but it can also cause negative social or environmental effects such as unequal distribution of the impacts or a shift in problems. (idem.: 110).
Certification organizations are formed either by business actors alone or in collaboration with environmental and/or societal nongovernmental organizations and, sometimes, governments with a view towards fostering sustainable practices on the basis of private rules and standards. (Kalfagianni & Pattberg 2013: 232). These organizations create certification processes in order to ensure
sustainability within supply chains. The Forest Stewardship Council (FSC) was a pioneer in this light. As an organization, the FSC put down the groundwork for certification as a policy instrument
(Cashore 2002; Dingwerth 2007; Marx & Cuypers 2010). The organization created rules and standards and many more followed.
The creation of norms and rules is an intrinsic part of global certification schemes, and thus fits in to the theory of new transnationalism, as formed by Dingwerth (2007). The organisations that create and maintain certification schemes, are brought to life because of the non existing public rule setting within the global realm. Transnational organisations that form certification schemes, pose questions that have also been raised by Dingwerth (2007); namely questions regarding the legitimacy and effectiveness of these organisations (Dingwerth 2007; Kalfagianni & Pattberg 2013; Mutersbaugh et al. 2005). As state governance is, in most instances, democratically chosen, private rule setting is being critically viewed when it comes to their type of governance. The focal point of democratic legitimacy can be on various topics.
Organizations that are the product and producers of global certification schemes are examples of “a growing market of non-state processes in which issues are defined, rules are made, and compliance with these rules is monitored.” (Dingwerth 2008: 608). The growing attention to these schemes has
also reached the developing world. Many products that are being exported from developing countries to the markets of developed countries are subsequent to the emphasis on sustainable produce, which can involve the demand for certified products. This thesis focuses on the Indonesian tuna sector where certification is also becoming an important factor, as will be shown in the next chapter. The next paragraph will focus on the involvement of developing countries in certification schemes, as Indonesia is a developing country.
2.5 The Voice of Developing Countries in Global Certification Schemes
As Dingwerth (2008) notes, transnational governance schemes and certification schemes have a great impact on Southern stakeholders, “they shape the meanings of key normative concepts, induce important discursive shifts in the field of sustainability politics, and bring about changes in political practice at the level of governments, international agencies, and non-state actors” (Dingwerth 2008: 620). Certification schemes can be seen as vessels for transnational rulemaking. These schemes are part of new transnationalism as a theory and are increasingly important in the tackling of issues in the environmental realm. It has been argued in the past that global certification schemes were influenced and governed by stakeholders from OECD countries. The role of Southern stakeholders was merited to being actors that experience the impact that evolves from global certification schemes. The question is if developing countries are indeed getting certified, as the global demand for certified products
increases, and new transnationalistic theory emphasizes the importance of certification schemes for the future of private governance. (Dingwerth 2007: 110-112).
As a lot of raw materials are to be found in the global South and as global production chains have dispersed across the globe, where low value-adding processes are outsourced to the South, it seems apparent that Southern stakeholders are bound to be experiencing a large impact from global
certification schemes. Each actor that is involved in or affected by governance schemes has their own values and interests (Marx & Cuypers 2010: 430). It is argued that developing countries are mostly left out of these governance schemes, “it is primarily developing countries that are left with little capacity to influence, or resist, the setting of international environmental standards by private
actors.”(Falkner 2003: 77-78). Falkner (2003: 78) argues that in state forums, the developing countries at least get to be represented in the equal manner.
Apart from a lack of involvement of Southern actors in the governance of certification schemes, there is also a lack of certifying in developing countries (Gandenberger et al. 2011; Gulbrandsen 2009; Marx & Cuypers 2010). Many certification schemes have been focused on the global north and are underrepresented in the southern regions. One reason that has been given is that northern countries have a higher percentage of ‘green’ markets where they export their products to. These green markets
require certain standards, such as certification schemes, therefore ‘forcing’ northern actors to get certified (Marx & Cuypers 2010: 412). A second reason is accessibility to the labels. Costs for certification are high and standards are often very stringent and difficult for developing countries to implement each requirement. Capacity and skills to abide by all the requirements is a barrier (Gulbrandsen 2009; Marx & Cuypers 2011). When looking at labels as the FSC (Marx & Cuypers 2011) and the MSC (Gulbrandsen 2009) these issues become apparent. Only a small percentage of certified companies come from developing countries, in the case of MSC this is only 8% of fisheries as a whole and even less for the tuna sector. Indonesia does not have any certified fishery at the moment (MSC website2).
2.6 Chapter Conclusions
This theoretical chapter has shown that there has been a shift towards private transnational
governance within environmental sustainability issues. Table 1 summarizes the types of governance
discussed in this chapter.
Table 1 Summary of Discussed Governance Types
Dingwerth (2007) has analysed global certification schemes and has argued that organizations have been brought to life for the purpose of transnational rule making. He has argued that these
2 http://www.msc.org/track-a-fishery/fisheries-in-the-program/certified, visited on 15 January 2015
Theory Governance type Main actors Main points
Intergovernmental Governance State actors; - Government State cooperation through governments Transgovernmental Governance State actors; National parliament Cooperation between national parliaments Transnational Governance Non-state actors;
- NGOs - Civil Society - TCs Etc. State actors Influencing of governments and intergovernmental organisations by private actors
Earth System Governance Non-state actors Influencing of the governance process New Transnationalism Non-state actors;
- NGO’s - Civil Society - TCs
Etc.
The making of rules and regulation by non-state actors Certification schemes as governance organisations and creators and implementers of regulation
organizations are the future in governance of environmental issues. Certification schemes can be seen as the vessels. These organizations form labels which contain transnational rules for companies to abide by, with the purpose of creating a more sustainable environment. The developing world, as a large part of the world that produces and exports products, seems to be less influential in these schemes. The schemes do not always have equal representation of stakeholders and the certification labels which have emerged from these schemes are difficult to obtain by southern stakeholders.
The next part of this thesis will focus on a case study of the Indonesian tuna sector, where can be seen that the Indonesian actors are trying to find a way towards a sustainable sector. The case study will be analysed using a new transnationalistic perspective. The literature falls short in its research on the view of Southern stakeholders. Literature has mostly been focussing on the impact of certification schemes on developing countries and the influence developing countries can have on these schemes. There has not been research done regarding the ways actors from developing countries think of certification schemes and if they see these schemes a solution for sustainability issues. The analyses will show in what way the case will fit in to the new transnationalism theory that Dingwerth has set out. The question is if the Indonesian tuna sector will indeed focus on PTG schemes and in what way southern actors themselves are involved in the process towards sustainability. The analysis will show the way the Indonesian stakeholders think about PTG and how they see the path towards a sustainable sector.
3. Case-Study Introduction
This thesis will focus on the Indonesian Tuna sector. This case-study has been chosen due to its actuality, and link to new transnationalism. The Indonesian tuna sector is in a struggle towards sustainability at this moment and various factors are of influence in this process. The certification scheme MSC is one of these factors. As shown in chapter 2, certification schemes are argued to be part of new transnationalist theory, which makes the Indonesian tuna sector a case study in which can be seen what role certification schemes actually play.
In this chapter an introduction to the case-study will be provided. The first part will focus on the tuna sector as a whole. It will show some statistics regarding the present-day trends in the sector. After this introduction the focus will be put on the sustainability issues within the tuna sector. The following section will shed some light on market requirements. The three main export markets for Indonesian tuna exporters are the European Union, the United States and Japan, as has been shown through interviews (chapter 4 will go in depth on these interviews). The market requirements can be an influence on the search for sustainability. The next step is a focus on the Marine Stewardship Council as the largest label for marine fisheries in the sector an introduction will be given. After an
introduction on MSC, the role of developing countries within MSC and sustainable fishery initiatives as a whole ,will be shown.
3.1 The Tuna Sector
3.1.1 Introduction to the Tuna sector
Fishing has always been an important occupation. Fishery used to be marginalized in societies, there was not much government regulation in the sector until a century ago, until then it was mostly
governed through self regulation. With the process of globalization came a change in the fishery sector it became one of the world’s most traded products from agriculture (Bavinck et al. 2014: 149). Total production of captured fish increased tremendously from 17 million tonnes in 1950 to 92 million tonnes in 2012 (FAO 2012).
Tuna is a high end fishery product, and is a crucial product to Pacific Island countries (Barclay & Cartwright 2007: 348). Most tuna is being caught in the Western and East Pacific Ocean. As can be seen in figure 1, the total catch of tuna has increased from approximately 0,4 million tonnes in 1950 to 4,4 million tonnes in 2010. 3
Figure 1: Total Tuna catches per Ocean
Source: Bush et al., Wageningen University
The tuna sector has a transboundary nature (Bush et al. 2013: 107), the fish stocks swim through different parts of the ocean, migrating with the seasons. The production of tuna has increased over the last 60 years, as can be seen in table 2. The most popular species are the albacore, bigeye, skipjack and yellowfin tuna.
Table 2: Total catch of tuna by species
Species 1950 2012
Albacore 108 thousand tonnes 236 thousand tonnes
Atlantic Bluefin 25 thousand tonnes 13 thousand tonnes
Bigeye 19 thousand tonnes 314 thousand tonnes
Pacific Bluefin - 26 thousand tonnes
Skipjack 51 thousand tonnes 964 thousand tonnes
Southern Bluefin - 9 thousand tonnes
Yellowfin 28 thousand tonnes 802 thousand tonnes
Source: FAO 2012
There are different method of catching tuna; purse seine, pole and line and longline4. The four most caught species are all subject to the different catching methods, but there is still a large difference to be
4 Purse Seine fishery is fishery by the means of ‘a long wall of netting framed with a lead line of equal or longer
length than the float line. The net entraps the entire school of tuna. The net catches a large amount of fish, also fish not specifically sought out to catch, as the net entraps everything and thus also specie of tuna that are not planned. By catching has negative impact on different species as well, such as dolphins and turtles (FAO http://www.fao.org/fishery/fishtech/40/en). Pole and line fishing consists of a hooked line which is attached to a pole. This technique is mainly used for tuna, and is labour intensive, as the fishermen have to control the lines by standing on railings or platforms. This type of fishing can be seen as less attractive because it not only involves a
seen. Figure 2 shows the different catching methods used for each species. It can be seen that there has been an increase in the purse seine fisheries in the period from 1980-2013. In the period of 2000 – 2007 there was even a 40% overall increase in purse seine fishing, most of which occurred in the waters surrounding the Pacific Islands (Langley et al. 2009: 274).
Figure 2 Indonesian Domestic Catches per Method (tonnes)
Data source: WCPFC 2013 Yearbook
The next section will show what sustainability issues come with the different catching methods and the fishing of different types of tuna.
3.1.2 Identified Sustainability Issues within the Tuna Sector
The biggest concern in the tuna sector is the over-exploitation of recourses. Purse seine fishing is a large factor causing overfishing. The method of purse seine leads to catching large quantities of fish at a time. The nets do not only catch the fish that are being sought to be caught, but the fishermen catch everything that comes in the way of these large nets. The species that are suffering the most from overfishing are the yellowfin and bigeye tuna, which are endangered species. A lot of young fish are being caught which puts more pressure on the reproduction of the fish. (Bush et al. 2013: 109). There
lot of labour, but the catch is also less as one line catches one fish at a time (FAO http://www.fao.org/fishery/fishtech/40/en).
is a need to halt the extensive catching of these species in order to get the fish stocks back to a healthy level. If the younger tuna would be able to mature, the reproduction of the fish would keep more of a balance in the species. The least appreciated tuna; the skipjack which is also the smallest type of tuna is being promoted to fish to lower the pressure on the yellowfin and bigeye (Bush et al. 2013:109).
Another way of trying to get resources back to a healthier level is to use a different fishing method than purse seine. A more ecologically friendly way of fishing is pole and line fishing, at the same time it is the most labour intensive type of fishing (Barclay & Cartwright 2007: 351). Although this type of fishing is being promoted and takes away negative side effects of purse seine fishing, it can be an economically negative alternative in the eyes of fisherman. An issue that is inherent to the species is its migratory nature. To fight sustainability issues it is important to adapt measures to the
transboundary nature of the species, and have regional and international cooperation regarding the fish stocks (Bush et al. 2013; Comitini & Hardjolukito 1985).
It is argued that the fishermen themselves are ultimately the ones with the most influence on the sustainability of the tuna sector (Bush et al. 2013: 107). The fishing practices they use are of major influence on the sustainability of the fish. The fishermen however, are dependent on a multitude of factors including; buyer requirements, national rules and regulations and competition from other fisheries. Governments can play an important role in providing a sustainable guideline and rules for the nations sector, but corruption within governments can also stagnate the process towards
sustainability. Illegal, unreported and unregulated (IUU) fishing is a major threat to fishery stocks over the world. It is estimated to be equal to around 21% - 46% of reported catches and valued at $0,7 - $1,5 billion US dollars (FFA 2011: 354). IUU fishing also plays a major role in the Indonesian fishery sector. IUU fishing is split up in to three types of unwanted fishing; illegal, unreported and
unregulated fishing. (FFA 2011: 352-353 Wagey et al. 2009: 3; Sodik 2009 : 67-68). Research has shown cases of corruption within national government, causing licenses to fish in certain areas to be given to external parties. (Barclay & Cartwright 2007: 352).
Barclay and Cartwright (2007) argue that even though fishermen would switch to an alternative catching method, the underlying sustainability issue does not go away. They argue that the overarching problem can be found in the management of the sector; “while the more recent work demonstrates that earlier arguments about reducing purse seine effort for sustainability and
profitability were too simplistic, the fact remains that bigeye and yellowfin stock depletion remains a problem for both the purse seine and longline fisheries, and that successful management is the key to both sustainability and profitability” (Barclay & Cartwright 2007: 353). A governance system
whereby governments collaborate with associations and others from the industry together with NGOs is seen as a step towards a better governance structure of the tuna sector. (Barclay & Cartwright 2007:
356). Governance through the means of certification schemes are also viewed as an innovative strategy to tackle sustainability issues (Miller & Bush 2014: 1; Mutersbaugh et al. 2005). Thus the question remains what governance method will be effective and implemented to attain a sustainable sector.
Bush et al (2013) have raised the question if sustainability is feasible at all “Sustainability is also a question of equity, taking into consideration both the benefits of tuna fisheries to coastal states, as well as the ‘burden’ of implementing conservation measures.” (Bush et al. 2013: 109). This highlights one of the main concerns for developing countries regarding the decision to go for more sustainability in the sector or not (Bush et al. 2013:119; Barclay & Cartwright 2007: 349). Who is going to pay for the measures?
A problem within Southeast Asia is that demand for fisheries keeps rising, where keeping a sustainable, healthy resource base seems to be more and more difficult to maintain. To create guidelines for the sustainable fishery on yellowfin and bigeye tuna, transnational governance arrangements are being created. These arrangements are mostly focused on a market driven mechanism, to provide economic incentives (Bush et al. 2013: 111). The global market has a large impact on the tuna sector. As market requirements change and ask for a more sustainable product, the supplier has to make changes to be able to keep their markets intact.
3.1.3 Market Requirements
Sustainability and governance of the tuna sector is also linked to market requirements. Private transnational governance when linked to production chains, has a market driven aspect (Cashore 2002). The increased market share of certified produce leads to an increasing demand to sustainable tuna. Pressures from the market can affect producers, if they want to be able to sell their produce or increase their sales they will respond to market demands. Three markets have been identified as top importers of tuna (FAO 2012: 80) and top markets for Indonesian exporters, this is based upon the conducted interviews. These three markets; the European market, the market of the United States and the Japanese market, have implemented requirements that have to be met by exporters. These
requirements are an important factor of influence on the types of produce and the actions needed to comply with these requirements. As will be shown below, all three markets focus on sustainable practices and require documentation regarding traceability of the tuna and want to ban IUU fished products.
3.1.3.1 EU requirements
Tuna is a high-value fishery product in the European Union (EU). The tuna species that are being sold to the region are; skipjack tuna (57%), yellowfin tuna (28%), bigeye tuna (9%), albacore tuna (5%), and bluefin tuna (1%) (CBI Market Intelligence). When exporting fish to the EU exporters have to
abide to legislation. The EU has a list of requirements, if exporters do not meet these they have a very slim chance to sell to this market.
Requirements that are to be met concern different elements of the product for example: label and packaging. The label of the tuna has to consist of many elements: the commercial and scientific name of the species, production method, catching area, way of presentation of the product, the net weight, minimum durability, the European sellers’ name, conservation temperature, EU approval number, batch number, and the nutrition of the fish (CBI 2013). If we look at this list of requirements the reference to the species, production method and catching area refer to the sustainability of the product that is being sold. But not all sustainable requirements are a must to enter the market.
By law exporters are required to meet the criteria as shown in the bottom section of the pyramid (figure 3), which also refer to sustainable related requirements. Traceability of the product is a must.
Figure 3 Buyer requirements for fresh tuna in the EU
Source: CBI Market Intelligence
Transparency within the production line is very important, importers need to be able to trace the product back throughout all stages of production, from catching the fish, processing the fish, and the further distribution of the products in between all different stages (CBI 2013; CBI 2014). Providing a catch certificate is a mandatory. This has come in to European food law place in 2010, and ensures the vessels that has caught the fish, flag state authority5, validation, and transportation details as an effort to address IUU fishing.(CBI 2013; FFA 2011: 352).
5
Listing the flag state authority has to be done to ensure that the vessels that have caught the fish are indeed members of the state they are claiming to fish for (CBI 2013).
3.1.3.2 US Requirements
The United States, together with Japan, are the main importers of fish worldwide (FAO 2012a: 16). The US has different agencies regarding food safety and quality regulation of imported products. Requirements regarding sustainable products are monitored by the National Oceanic and Atmospheric Administration Fisheries (NOAA Fisheries). The import requirements differ slightly per species and per type of product; fresh, frozen or canned. All products need to come with a certificate of origin, this certificate must clarify which area the fish comes from, what type of fishing gear has been used, name and country flag of the vessel, and the dates of the trip the tuna was caught. A dolphin safe status also has to be reported, meaning that no dolphins were killed or seriously injured during the fishing trip. (NOAA Form 370).
3.1.3.3 Japanese Requirements
As mentioned, the Japanese market counts as one of the main importers of fish worldwide, tuna being one of the main imported species (FAO 2012a: 16). Requirements for exporters of tuna are concerned with fishing certificates (Japan Ministry of International Trade and Industry 2008). As for the EU market, exporters to the Japanese market need to provide a catch certificate for tuna, which also shows that the catching has been done legally. The forms are the same NOAA forms as need to be used for the US market (USDA 2013).
3.1.4 The Marine Stewardship Council
This paragraph will focus on the Marine Stewardship Council. This focus is chosen because it is the largest certification label in wild catch fisheries and because the market interest in certified tuna is growing (FFA 2011: 346). Dingwerth’ (2007) theory on new transnationalism has argued that there is a trend towards transnational schemes and rulemaking for sustainability. As MSC is the largest label it would seem probable, as derived from the theory, that the tuna sector will focus on getting MSC certified, as will be highlighted in chapter 4. Therefore this section will elaborate on this specific scheme.
The Marine Stewardship Council is brought into life to promote sustainable fisheries. The organization was initiated by the World Wide Fund for Nature (WWF) and Unilever in 1996 (Auld 2007: 24-25; Gulbrandsen 2009: 655). It was inspired by the success of the Forest Stewardship Council, which was a pioneer in certification. As an organization, the FSC put down the groundwork for certification as a policy instrument. The organization created rules and standards and was an example for certification schemes that followed. (Auld 2007; Cashore 2002; Dingwerth 2007; Gulbrandsen 2009; Gulbrandsen 2010).
MSC was established as, and still is, an independent organization, with a multi-stakeholder
governance structure. The organization built on the code of conduct for responsible fisheries that was created by the FAO (FAO 1995). The MSC principles are all in line with the code of conduct
regarding fisheries, designed by the FAO. The code demands a sustainable utilization of fishery resources. It was declared that “states commit themselves to the conservation and sustainable use of marine living resources under national jurisdiction” (FAO 1992)6
. The code of conduct also embodies nuances for developing countries. An example where the code of conduct considers developing countries, is the acknowledgement of the difficulty developing countries have when trying to achieving sustainability; “The ability of developing countries to fulfil the above objectives is dependent upon their capabilities, including the financial, scientific and technological means at their disposal. Adequate financial, scientific and technological cooperation should be provided to support action by them to implement these objectives” (ibid). The code of conduct, apart from being the starting point for the MSC rules and regulations, also is adopted by regional governmental
organisations. One of these organisations being the Association of Southeast Asian Nations, ASEAN. In the past decade, the association has held two conferences regarding sustainability within fisheries. These conferences have been building on the code of conduct set up by the FAO and adapting it to the region (ASEAN 2011).
MSC consulted multiple stakeholders when forming its main principles (Gulbrandsen 2009: 655). The mission of MSC is “to use our ecolabel and fishery certification program to contribute to the health of the world’s oceans by recognising and rewarding sustainable fishing practices, influencing the choices people make when buying seafood, and working with our partners to transform the seafood market to a sustainable basis” (MSC website7). The MSC has three main principles that every fisher should meet when applying for the label. “The three main principles of the MSC require (1) that the fishing activity must be at a sustainable level; (2) that fishing operations should be managed to maintain the structure, productivity, function and diversity of the ecosystem on which the fishery depends; and (3) that the fishery must meet all the local, national and international laws and must have a management system that responds to the changing circumstances and maintains sustainability” (Gulbrandsen 2009: 656).
Participation in certification schemes as MSC is voluntary, one needs incentives to get certified. MSC is a costly label and it is likely that producers who are faced with little problems to begin with will participate in the label, because adjusting to fit the criteria will be relatively easy to do. MSC is overrepresented by large scale and small scale fisheries in developed countries (FFA 2011). The types of fish that is mostly certified are different types of whitefish. It is argued that “many fishers, in fact,
6
http://www.fao.org/docrep/003/V5321E/V5321E11.htm#ch9.5, visite don 10 November 2014
are excluded from even considering MSC certification because of the actions of others that are beyond their control” (Gulbrandsen 2009: 658). This problem asks for cooperation among fishers, and a co-management of the resources available.
As argued, most MSC certified fishers come from developed countries, it was even so that in 2008 only three fisheries from developing countries were MSC certified (Gulbrandsen 2009: 658). Interesting questions are; if certification schemes are in fact the future of environmental governance ,and how do developing countries fit in to these schemes, as it has been shown that almost no fisheries from developing countries have gotten certified in the past 20 years.
3.1.5 The Role of Developing Countries within Certification Schemes for Fishery Products
MSC has recognized that fisheries from developing countries have bigger challenges to overcome and get certified than fisheries from developed countries. A lack of proper governance of sustainability in the tuna sector has been tried to fill up by MSC. As a private transnational governance scheme the MSC is trying to fill the governance gap through its certification programmes. It is argued that MSC lacks the ability to deal with the social aspects of fisheries, this was especially an issue in developing countries (Auld 2007: 26; Gulbrandsen 2009). Criticism has been given on the MSC label, not only because of the inaccessibility for developing countries (Auld 2007: 29; Gulbrandsen 2010: 132), but it was also seen as a barrier for developing countries, a way to block their market potential (Auld 2007: 29).
As said, in 2008 only three fisheries from developing countries had been certified. MSC is now trying to change that number around through the start of the ‘MSC Developing World Program’. The label has brought different stakeholders together and tried to inform people about the MSC programme (MSC8). MSC has recognized that it can be difficult for small-scale and fisheries from developing countries to reach certification. They have seen the issues in knowledge about certification, institutional weakness, capacity and a lack of resources. They are pointing out to an ‘improvement phase’ in which different stakeholders come together, identify the gaps and try to find measures to fill the gaps. This phase is seen as an in-between step to certification. (MSC 2013). The organization has build a step-by-step plan to inspire partnerships. They provide guidelines on which partnerships can build activities and take the first steps towards certification. The role played by MSC holds is that of a ‘partnership broker’, whereby the organization will provide guidance and play an intermediary role.
The next section will focus on one country within the ASEAN region, Indonesia. This country will be the case study of this thesis. Indonesia as a country is dependent on tuna, it is a major source of
income. The next section will introduce the Indonesian tuna sector and will highlight sustainability challenges within the sector and will show what initiatives in line with new transnationalism have been started to address these issues.
3.2 The Case of Indonesia
3.2.1 Introducing the Tuna Sector in Indonesia
As a country with over 18.100 islands, the economy of Indonesia relies on its natural recourses, one of these recourses being fishery (Pomeroy 1995: 146). The fishery sector as a whole is an important income source and employment sector. Production of fish has risen tremendously over the past 60 years (graph 2).
Graph 2: total production of captured fish
Source: FAOSTAT 20069
One of the most important species that can be found in the Indonesian waters is tuna. The Western and Central Pacific Ocean has the largest tuna fishery (Barclay & Cartwright 2007: 348). Tuna catches in Indonesia have increased tremendously over the past three decades. Catches per species have
increased 7-fold on average between 1980 and 2013 (WCPFC 2012).
Indonesia has a long history of community-based fisheries, where a system of restrictions applies. This system resembles modern-day regulation regarding closed off fishing areas and rules regarding
seasonal fishing. From the mid 1990s a plan was laid out by the government to promote economic growth through small scale, local fisheries. This programme, Inpres Desa Tertinggal (IDT), which was initiated in 1994, was believed to lead to a more sustainable sector. The process involved
government, local fishers and NGOs and promoted decentralization but has not been successful (Pomeroy 1995: 157).
3.2.2. Identified Struggles with Sustainable Tuna Management in Indonesia
It has been argued that management of fisheries in Southeast Asia is lacking strength. In order to make management for the sector successful fisheries have to cooperate. In order to make existing and future regulations effective all actors in the sector need to be involved (Pomeroy 1995:144). Pomeroy (1995) argues that a trend in Southeast Asia was to increase the role of governments in fisheries management, without much success. He saw the way forward as cooperation between the government and local community, a type of ‘community-based resource management’ (Pomeroy 1995:145).
A problem with the management of the tuna sector in Indonesia is that not only Indonesian fishermen are fishing in the Indonesian waters. Fishermen from Thailand, Taiwan and the Philippines also make use of the Indonesian waters (Heazle & Butcher 2007: 277). Foreign vessels fishing in Indonesian waters makes it even harder to move towards are more sustainable fisheries sector in Indonesia. It is not only a difficult task to get the whole Indonesian fishery sector in the same state of mind, but it also asks for a control over those foreign vessels that are fishing in Indonesian territory. Illegal fishing is detrimental to overfishing and a strain on the Indonesian tuna sector. (FFA 2011; Heazle & Butcher 2007; Sodik 2009; Wagey et al 2009).
In 1982 Indonesia became an official archipelagic state with exclusive economic zones (EEZ) (Comitini & Hardjolukito 1986; Heazle & Butcher 2007: 277). The development of EEZs brought more control over fisheries, where sea used to be a free territory where everyone could fish, it now became a territory of the coastal state (Hannesson 2008: 887). After the realization of EEZs and thus the loss of free fishing, Thai fishing companies made deals with Indonesian companies. The
Indonesian companies helped Thai fishing boats when in trouble and obtained licences for them so that the Thai could fish in the Indonesian waters. The Thai vessels had to abide by certain rules10, which were ignored by the fishermen, resulting in illegal fishing activities. There is a debate whether or not the Indonesian navy has actively been trying to prevent the illegal activities. On the hand the low numbers of illegal fishermen that have been caught, are explained by a lack of resources to catch them. Another argument that has been made is that the navy takes bribes from the illegal fishers, and consciously keeps illegal fishing activities going. (Heazle & Butcher 2007: 278). Corruption within the Indonesian navy is argued to be partially caused by the fact that the military, navy and police raise money on their own to complete their budget, one part of which thus comes from bribes. The
10 Thai fishing vessels had to have fishing nets with a minimum mesh size, the crew had to have a set percentage
of Indonesian workers, and they had to bring all their caught fish to an Inonesian port (Heazle & Butcher 2007: 278).
