The blue economy : Origin, challenges, and prospects

The concept of the Blue Economy is not a new one, but it has recently gained significant attention. Gunter Pauli, an entrepreneur and economist, first introduced the concept in 2010 in his book, The Blue Economy: 10 Years, 100 Innovations, 100 Million Jobs. He defined the Blue Economy as “The regeneration of the ecosystem in a logic of abundance and autonomy.” He also stated that “the Blue Economy does not recycle, it regenerates.” He is considered to be the father of the Blue Economy Theory.

It’s not a complicated or sophisticated concept, but a way to trade via water in more advanced ways, plus exploring new avenues, such as maritime trade and other precious treasures that deep waters in oceans contain.

Later, the concept was reintroduced in 2012 at the UN Sustainable Development Conference (Rio+20) in Doha, Qatar, as part of Sustainable Development Goal (SDG) 14. The conference made a point for sustainable management in defense of the marine ecosystem, emphasizing that a healthy ecosystem leads to more production.

According to the World Bank, the Blue Economy is the sustainable use of ocean resources to help promote economies, the livelihoods of populations living near coastal areas (one estimate calculates that 40% of the population lives near coastal areas), and also to take care of the health of the ecosystem. The concept enables the use of ocean resources for efficient and effective economic growth.

Dimensions of the Blue Economy: The Blue Economy Growth (BEG) has diverse dimensions. Historically, the common ones were fisheries, transport (shipping), and tourism. On the other hand, emerging ocean activities include:

= Aquaculture

= Seabed extractive activities (e.g., mineral extraction in deep waters)

= Marine biotechnology and bioprospecting, which is a vast field dealing with scientific exploration for medical drugs, chemical products, and enzymes. It also plays a role in the advancement of aquaculture and seafood safety.

= The most important dimension in the current era is offshore renewable energy.

Renewable energy has historically been gained from major sources such as solar energy from the sun, wind energy, biomass from plants, geothermal from heat inside the earth, and hydropower from flowing water.

This concept enables the use of ocean resources for efficient and effective economic growth. It also plays a role in preserving and protecting the health of marine ecosystems.

In one statement, Darian McBain, Visiting Professor in Practice with the LSE Grantham Research Institute on Climate Change and Environment, said, “it is difficult to make a transition to net zero nor achieve any semblance of a stable plant for people and nature if we do not start to think, dream and act on blue oceans.” This reveals the importance of the Blue Economy.

The concept of the Blue Economy is mostly viewed and discussed as an alternative economic model for sustainable development. Water is said to cover as much as 71% of the earth’s surface. This proportion makes up almost 96% of the biosphere. The ocean is capable of providing much of the world’s population with food and livelihood. At the same time, it is a significant means of global trade and transport. It is also noteworthy that the marine and coastal environment constitutes major resources for the global tourism industry, which supports all important aspects.

The sea also offers extensive potential for renewable “Blue Energy”, produced from wind. The oceans carry enormous potential to meet sustainable development goals. However, this is only possible if oceans are maintained as a healthy sector.

Definitions and Pillars: The World Bank further defined the Blue Economy as the “sustainable use of economic growth, improved livelihood and jobs.” Different entities have defined it based on their needs and understanding.

The European Commission defined it as including all economic activities related to water (i.e., coasts, seas, and oceans). It definitely covers a wide range of interlinked established emergency sectors. It is now more than an emerging concept; it is a widely used term. The Centre for Blue Economy added that it includes the overall contribution of the oceans to economies. Nevertheless, there is a need to also consider the environmental and ecological sustainability of the oceans. Lastly, consider the ocean economy as a future growth opportunity for both developed and developing economies.

Recently, a UN representative defined it as an economy that is comprised of a specific range of economic sectors and related policies that will determine together whether the use of ocean resources is sustainable. A significant challenge here is to understand how to manage the many aspects of oceanic sustainability, ranging from fisheries to ecosystem health to preventing pollution.

It is said that the Blue Economy consists of three pillars:

1. Environmental

2. Economical

3. Social

The Blue Economy takes care of all three pillars of sustainability.

Since the emergence of the concept of Blue Economic Growth, the developing nations, particularly Small Island Developing States (SIDS), have been the driving force behind it. However, the Blue Economy is equally relevant and important to other coastal states as well.

The Blue Economy in Pakistan: Sea trade is not a new activity. It is, in fact, a very old form of trade used to build economic growth.

Pakistan is rich in terms of having a coastline of over 1000 kilometers along with a 290,000 square kilometer extended exclusive economic zone, which is a source of seafood (fisheries), minerals, and energy resources. This can be a source of additional revenue once things are established. The opportunities in Pakistan are manifold, including fisheries, tourism, transport, minerals, and most importantly, the prospects of renewable energy. All these avenues can serve as a great source of enhancing economic growth.

In view of Pakistan’s geo-oceanic position, the year 2020 was declared the “Year of the Blue Economy” by the then Prime Minister Imran Khan. However, due to the COVID-19 crisis, the official launch was delayed. The Blue Economy promises many investment opportunities in the maritime sector. Pakistan is blessed with significant natural seawater resources, including an extended coastline with an abundance of marine resources, harbors, sea trade, and maritime professionals who take part in the development of the sector.

It all started seriously in 2012, with the aim to improve human well-being. The other target was to achieve social equity while significantly reducing environmental risks and ecological scarcities. The World Bank alternatively defines it as the “sustainable use of ocean resources for economic growth, livelihood of the population, and most importantly, the health of the ocean ecosystem.”

For a country like Pakistan, it can help in promoting economic growth and creating new jobs, thus reducing the number of unemployed people. It can, rather it will, also help in promoting the development of new technologies related to the ocean, for example, renewable energy and the tourism industry at large.

Sadly, governments in Pakistan have not planned a strategy for the Blue Economy Model. Now it’s time to pay adequate attention to this model, which has been largely adopted by both developed and developing economies.

Sister Ports: Gwadar and Chabahar: The Iranian envoy suggested that the Gwadar and Chabahar ports should be declared “Sister Ports.” This good news was reported in every leading newspaper on March 15, 2024. The Ambassador of Iran stated this when he visited the Islamabad Chamber of Commerce and Industry (ICCI). He suggested a very encouraging roadmap for trade between the two countries. He rightly pointed out the need to connect with regional and global trade through these ports. He was addressing the business community. He said both countries should also have strong maritime and sea links in addition to air links. This will strengthen the economic relationship between the two countries, and Pakistan will also be connected to regional and global trade.

He specifically emphasized the closeness of maritime links, especially of the ports of Karachi, Gwadar, Chabahar, and Bandar Abbas. Both parties discussed the trade of petroleum products, storage, and other activities through blue waters.

The figures he stated regarding the current bilateral trade volume between Iran and Pakistan are encouraging; it is $2.5 billion and witnessed an increase of 11% in the last 11 months.

At this stage, it is important that the government should allocate sufficient funds in the Annual Budget for research in the blooming sector of the Blue Economy. Investment here for research and development is important. It will help in understanding the ocean ecology and resources that can be fully utilized. In this regard, the whole process needs to be outlined in a specific policy framework. It will help in the smooth working for development and sustainable growth. Investments are required in an important blue area for the smooth functioning of the protection of the marine ecosystem.

Moreover, it is also important to create awareness regarding the Blue Economy among the masses, including investors, traders, and the unemployed population. Arranging seminars and lectures on the topic at the college and university level will add value in disseminating knowledge and promoting awareness on the growing sector. It would be a good idea to select potential and aspiring candidates for internships in the sector. After adequate training, jobs may be offered to the willing and aspiring candidates. The Blue Economy has potential in abundance to hold a large proportion of economic growth and general prosperity for human livelihood. Hence, it promises to be a great source of food (fisheries) along with other sea resources.

Research on Fisheries in Pakistan: It is noteworthy that Dr. Ambreen Fatima, of the Applied Economics Research Centre at the University of Karachi, conducted a research study in 2023. This study is an extension of a project funded by the World Bank. The geographical focus of the study was the two provinces, Sindh and Balochistan, with targeted areas specifically where fishing activities were widespread. This study addressed the pivotal aspects of the sector, encompassing regulatory frameworks and technical and socio-economic dimensions.

The study highlighted the issues and challenges hindering sustainable fishing practices. These include primarily:

1. Weak licensing and registration procedures

2. Weak enforcement of fish protection and overfishing regulations

3. Limited institutional capacity

4. Unregulated fishmeal production

5. Undocumented environmental concerns, to name a few important ones.

The research revealed that the majority of fishing households live below the poverty line with limited livelihood opportunities. This community specifically has low human capital formation and weak leadership, hence weak decision-making. The reason is that people are either illiterate (53%) or only went to primary school. The percentage of the trained population only comes out to 4%. The above figures infer that the targeted community lacks education and training. Further assessment identified that the depletion of fish stocks could push the fishing community into further poverty.

In order to combat the above shortfall, the children of the community should be sent to school. It is also advised to motivate investors, both local and foreign, to set up processing industries, most probably close to fishing areas.

The study concluded with an important aim to capitalize on fisheries and aquaculture. These sustainable practices may help reverse the depletion of the ecosystem. It will continue to offer economic gains that will reduce the level of poverty.

Conclusion: To conclude, the 21st century marks the utmost importance of the Blue Economy to the world as well as to Pakistan. It will also play a role in SDG 14, in managing marine resources and environmental pressures. Goal 14 also aims to conserve and use the oceans, seas, and deep water resources sustainably.