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Hyde and David H. Newman, with a contribution by Roger A. Sedjo No. 135 A Strategy for Fisheries Development. Eduardo Loayza, in collaboration with Lucian M. Sprague No. 136 Strengthening Public Service Accountability: A Conceptual Framework. Samuel Paul No. 137 Deferred Cost Recovery for Higher Education: Student Loan Programs in Developing Countries. Douglas Albrecht and Adrian Ziderman No. 138 Coal Pricing in China: Issues and Reform Strategy. Yves Albouy No. 139 Portfolio Performance of Selected Social Security Institutes in Latin America.

Problems of using water from a common pool, pollution problems, etc. certainly exist in agriculture. In the fishery, such externalities are simply more pronounced because of weak private property rights in a key production input: the fishery resource itself. Page 5 peculiar to the fishery, these pecuniary externalities should be considered in the design of fishery development policies to avoid unintended consequences. In addition, there are inter-industry externalities involving the fishery. A seafood processing plant that dumps its waste into water may be imposing an externality on recreational swimmers.

Identifying and understanding "externalities," and devising policies to mitigate their effects, is essential in state-of-the art fisheries development. It is my hope that the concepts and analyses contained in this paper will be studied with interest, and prove useful to those searching for creative approaches in dealing with complex development and management issues in the fisheries sector. GERSHON FEDER CHIEF AGRICULTURAL POLICIES DIVISION AGRICULTURAL AND RURAL DEVELOPMENT DEPARTMENT Page vi Table of Contents Abstract viii I.

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