Social Design and Management, 2021

An additional view from agricultural

and fishery science specialist

Nobuyuki Yagi, Ph.D.

Picture : Gifu City Government (https://www.ukai-gifucity.jp)
 My background
• Bachelor of Agricultural Science (UTokyo)
• MBA (Wharton, UPenn)
• PhD Agricultural Science (UTokyo)
• Studies on socio-economic aspects of fisheries
and agriculture in Japan and other countries
including Cambodia, Indonesia, and Vietnam.
• A member of Scientific Advisory Group (SAG) of
the Globally Important Agricultural Heritage
System (GIAHS) Program of the Food and
Agriculture Organization of the United Nations
(FAO) from 2019 to 2022
 Things to be considered in designing
social functions or institutions

1. Uneven distributions of costs and benefits in

establishing new social rules
2. Unforeseeable nature of transaction costs
(people tend to avoid internal conflict)
3. Volatilities and unpredictability of benefits
4. Multiple values and objectives
5. Side-effects (externalities)
 My experience in
government policy
reform in 2018-
2020

I have faced serious

criticisms when I
showed my support to
the policy reform.
(some contents were
explained in my book)
Norway Photo: Nobuyuki Yagi
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Norway
Photo: Nobuyuki Yagi 7
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 Norway
Photo: Nobuyuki Yagi 9
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Indonesia

Photo: Nobuyuki Yagi

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Indonesia
Photo: Nobuyuki Yagi
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 Indonesia

Photo: Nobuyuki Yagi 13

Kerala, India
Photo: Nobuyuki Yagi 14
 Characteristics of Japan’s Fisheries

Small scale fishing boats Photo: Nobuyuki Yagi15

95% of Japanese fisheries are coastal small-scale
fisheries, and their contributions for the
conservation need to be further encouraged
 Photo: Nobuyuki Yagi
Labor intensive works: landing port
 Photo: Nobuyuki Yagi
Many employments: females’ involvement 18
 Different aspects in fishery business

Asia Norway, Iceland, or some

other Europe
Small scale boats Large industrial boats
Many middlemen in No landing market (only
landing market processing factories exist)
Products are perishable Sales negotiations are
and fishermen needs to already conducted in the
sell fish very quickly sea using internet
Domestic fish Fishing is an exporting
consumption is important business
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 Biological Diversity in the Ocean
（Census of Marine Life）2001-2010
 Institution theory for
sustainable management
Elinor Ostrom (1933-2012)
Nobel Prize in Economics in 2009
Ostrom’s 8 Principles:
1.Clearly Defined Boundaries
2.Congruence (benefit distribution)
3.Collective-Choice Arrangements
4.Monitoring
5.Graduated Sanctions
6.Conflict-Resolution Mechanisms
7.Recognition of Rights to Organize (no IUUs)
8.Nested Enterprises (multiple layers)
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 Without Free Riders (no external players)

Present value
The present of future
cost of expected
return
managing (increased
fishery catch) of the
management

Rule-implementations and conflict-resolutions

are easier in a framework like this. 22
 Potential un-even distributions of the
costs and benefits
Stakeholders Costs Benefits
Small-scale fishers high unpredictable
Large-scale fishers middle high
Local buyers high almost none
Large supermarkets none high
Suppliers none middle
Fish consumers (rural) high none
Fish consumers (city) none middle
Geographic unevenness:
winners are located in city, and loses in rural areas
Revenue (Yen) Fisher’s unstable revenue

Time (months)
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 Fishers need to pay oil, gears, loan for a boat.
Consequently, they receive more volatile cash flow.
Revenue (Yen)

Fishers’
receivables

Time (months)
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A story of a side effect
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産卵期は
6−7月ごろ

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孵化は7−8月頃

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The triple bottom line of the
sustainable development

Environment

Economics

Socio-cultural
Once again: things to be considered in
designing social functions or
institutions
1. Uneven distributions of costs and benefits in
establishing new social rules
2. Unforeseeable nature of transaction costs
(people tend to avoid internal conflict)
3. Volatilities and unpredictability of benefits
4. Multiple values and objectives
5. Side-effects (externalities)