Competitive Advantage – Govt Intervention and the Tuna Industry

Leading on from class, and the exchange between myself and Rene, i thought i should share the story of the Tuna Industry in Australia and just how much better off they are with the introduction of a quota system that factors into account the size of the breeding pool/bio-mass.
Firstly, while Japan is often times guilty of doing the wrong thing – the International body established to protect the Southern Bluefin Tuna (SBT), only works because they drove it initially and still purchase some 95% of world supply. As Japan buy the end product, they are able to obatin buy-in from all member nations (including many undeveloped/developing nations). (NB while Japan took initiative, they are guilty of overfishing their agreed to quota)
The article link I have provided is an excellent example of comparing two coins of the same industry – where one is actually increasing the bio-mass and looking to protect the future of the industry, the other is harvesting unsustainably. Happy to discuss further, as I am well acquainted with the industry down south, but it shows very clearly how by increasing the regulation in an industry, it can produce optimal ‘economic’ outcomes.
PS apologies for any typos – its a french keyboard
Cheers, Barry

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Posted in ecological degradation

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