The Ocean Economy: A Humanitarian Crisis Out of Sight Out of Mind
The ocean economy: a negative externality caused by the interaction between ocean-based industries and consumers resulting in unquantifiable and uncontrollable spillover effects on ecosystems, a humanitarian crisis swept under the rug, and a tragedy of the commons so exploited that in 30 years time marine biologist Dr Sylvia Alice Earle predicts “the oceans will be virtually empty.” The ocean economy reaps fatal consequences and no one wants to claim liability. Nobody owns the ocean, and not one individual has the incentive to act responsibly to protect it.
The Organisation for Economic Co-operation and Development (OECD) defines the ocean economy as, “the sum of the economic activities of ocean-based industries, and the assets, goods, and services of marine ecosystems.” Predicted to grow by $3 trillion in annual production by 2030, the ocean economy has been predicted to grow faster than the entire global economy from 2010 to 2030. This unprecedented economic growth has issued social and environmental concerns, particularly regarding ocean industrialization, ocean privatization, the inequitable distribution of the benefits of ocean use, and the spillover effects on marine ecosystems.
A study on transnational corporations in the ocean economy has shown that the ten largest companies in eight core ocean-based industries generate around 45% of each industry’s total revenues. Furthermore, aggregating across all eight industries, the 100 largest corporations generate around 60% of total revenues2. Among these 100 largest corporations, offshore oil and gas accounted for nearly 65% of total revenues, followed by shipping (12%), shipbuilding and repair (8%), maritime equipment and construction (5%), seafood production (4%), cruise tourism (3%), and port activities (2%)2. Among these same 100 transnational corporations, those headquartered within the United States generated around 12% of the total revenue, followed by Saudi Arabia and China (8%), Norway (7%), France (6%), the United Kingdom (5%), South Korea, Brazil, Iran, the Netherlands, and Mexico (4% each).
This small number of corporations generating the majority of the ocean economy’s total revenue exhibits a monopolistic market structure which raises concerns about ensuring the sustainability and equity of ocean use. A global and complex supply chain of transnational corporations allow for them to capitalize on and monopolize markets. As a result, many transnational corporations exploit social and environmental standards and find ways to avoid costly sustainable practices with the end goal of maximizing immediate profits. This is exacerbated by areas of weak ocean governance, policing and corruption.
Development towards a sustainable ocean economy will not only require stricter and improved government policies, but also support from civil society, scientists, and most importantly the private sector. The dominance of a small number of transnational corporations in the ocean economy makes it even more important for transparency and accountability.
Incentive-based policies issued by banks, stock exchanges and shareholders, and even transnational corporations can reinforce a sustainable and equitable ocean economy. Banks can institute sustainability criteria that give them the ability to monitor companies through environmental risk assessments, measurements of CO2 emissions, etc. to ensure that responsibility for ocean use is being met. With 60% of the 100 largest corporations publicly listed, stock exchanges and shareholders can also establish listing rules that require transnational corporations to be transparent and follow sustainable practices. In addition, transnational corporations can administer “green clubs,” which are groups of companies that commit to undertake sustainability measures. The aforementioned ideas are only as good as the administration that enforces these targets, and while difficult to achieve they must be striven for if we are to have a chance of living with a healthy ocean.
The ocean is a deep, vast space of dark secrets; it is so hard to monitor and regulate which makes it all the more a lucrative opportunity for businesses to capitalize on. What we need is transparency, accountability, and a wide body of do’s and don'ts that are widely agreed upon, easy to interpret, and enforceable. Today, turning a blind eye is the same as contributing to the destruction of the ocean ecosystem; failure to take action now will yield irreversible damages with immeasurable consequences to the ocean and human species. It is our responsibility to take initiative immediately, however small that may be; whether that be making changes in our daily habits such as buying less plastic, reusing plastic, emailing government officials on environmental policies, pressuring transnational corporations to take accountability and make changes, there is always something we can do.
Written by Cailee Kim
Edited by Andrew McArthur
Sources:
https://advances.sciencemag.org/content/7/3/eabc8041
https://www.greenbiz.com/article/7-ways-bridge-blue-finance-gap-protect-oceans
https://civileats.com/2020/11/09/the-continued-fight-over-farming-the-oceans/
