Weekly Blog Post

http://www.aps.sn/aps.php?page=articles&id_article=95742

The Policy Network of Fisheries in West Africa said today, May 8, 2012, that they welcomed the Senegalese government's decision to cancel the authorization to fish on the high seas pelagic resources. Senegalese authorities have canceled 29 fishing authorizations granted to foreign trawlers to make fisheries in Senegal more sustainable. For more than ten years, Senegal has been a victim of bad governance leading to a type of 'tragedy of the commons'. The decline of fish stocks have left the resources in a state of overexploitation. The NGO thinks that a fisheries policy "creates wealth and jobs in Senegal through the establishment of a new form of participatory governance where actors are placed in the heart of decisions and actions implemented". This action will ensure adequate provisions for Senegalese households, stabilize Senegal's fishing industry, and support the local economy.

This relates to supply and demand. Before the cancellation of the authorizations, supply of fish was low in Senegal, causing the quantity of supply to move to the left, decreasing the quantity of demand and raising the price. This was an inefficient use of natural resources. Cancelling the authorizations will eventually restore supply of pelagic fish, and the supply curve will return to normal. Price will be lowered, and the quantity of demand will return to the equilibrium.