Spoiled Tuna: a Fishing Industry Gone Bad

Jacobs, Matthew; Hezel, Francis X. (2002-02-15). [www.micsem.org Spoiled Tuna: a Fishing Industry Gone Bad]. Micronesian Counselor (Report). Kolonia, Pohnpei: Micronesian Seminar. pp. 1–8.

• Has attachment: File:SL8AG9T3.pdf

Abstract: T here is no doubt that tuna and the FSM have a strong relationship. Traditionally tuna has been one of the primary sources of food and will most likely continue to be well into the future. Many Micronesians know how to fish. Their knowledge comes from a long line of forefathers who sought the tuna in the sea to feed their families, and to support their subsistence economy. As a cash economy became more widespread, tuna was useful because it was an easily tradable commodity. A Micronesian could catch tuna, get it to an available market, and immediately see the rewards of his time on the sea.

As the FSM gained independence and looked for ways to develop its economy, tuna took on a renewed importance. Tuna was no longer only looked upon to provide for a family, but to provide for a nation; the market was no longer down the road, but rather hundreds of miles away; the fishermen no longer fished for a day, but rather weeks or months at a time. The late 1980's were a time when the U.S. dollar was coming down from its inflated highs, foreign fleets roamed the FSM seas in search of bountiful tuna supplies, and Japan was an economic powerhouse. In other words, the timing was perfect for the FSM to start the export of fresh tuna to a lucrative Japanese market...

...In the eyes of some leaders, the decision to remove the fishing industry from under the control of the government was a sign of failure. Politicians saw the move toward privatization as a mark of surrender, something like leaving a boat untethered in a storm. This may be the reason why no publicly owned fishing company has ever been sold, transferred, or divested to the private sector and seen as a good deal. But, with the governments scrambling for more money and the pot of investment money constantly shrinking, the need to invest more wisely becomes more apparent with each dip in the pot.

Simply put the FSM does not have the money to keep bailing out its failing fishing companies with "government money", yet with no solutions in sight, massive operating losses, and the Compact tap slowly closing, something must be done soon.