Archive for June 23rd, 2010

Why are fisheries declining?

June 23, 2010

WTO’s Annual Trade Report will be on the theme – “Trade in Natural Resources: Challenges in Global Governance”. So, WTO has this interesting e-forum to discuss the relationship between international trade and natural resources. In this interesting initiative, people are asked to discuss relevant issues on the topic in form of shirt articles. WTO then publishes them on its website.

I came across this interesting piece by Rashid Sumaila (Associate Professor, University of British Columbia Fisheries Centre) and Leslie Delagran (Economist, Oceana). The authors point that fisheries are decling and the reason is the government subsidies:

Rather than collecting rents from resource exploitation, governments have been actively subsidizing fishing, leading to even greater fishing effort and resource depletion. Subsidies that expand fishing capacity, including subsidies for vessel construction and modernization, operating costs (particularly fuel), construction of fishing ports and processing plants, payment for foreign access agreements and marketing support are estimated to total about $16 billion globally each year (Sumaila et al., in press).

This has been distorting the incentives and people aer just overexploiting the fisheries. This is even the case for private fisheries and not just for commons.

Impact of computers on human capital

June 23, 2010

Number of governments have taken initiatives to provide subsidies to poor people that help buy computers. The question is have computers helped children improve their performance?

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Assorted Links

June 23, 2010
  • There is news that Peter Orszag will leave OMB office in July. Simon Johnson proposes Paul Krugman for  Office of Management and Budget
  • Gold Standard Blog on the bond bubble
  • Cowen explains Germany’s fiscal policy
  • WSJ Blog points to Fed’s new book – Teal Book. It will merge the green and blue book and hence the colour teal. Green book contains analysis of US economy and is prepared by Fed staff It is given to FOMC members 6 days before the monetary policy meeting. Blue Book looks at monetary alternatives ahead of the meeting.
  • WSJ Blog points suburb population has slowed down

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