Definition, Justification, and Emergence of Property Rights 25
(It is not clear, though, why the Indians did not make collective agreements
to limit hunting rather than establish property rights.
18
)
(c)Rights to the resources of the sea: fisheries, oil, and minerals from the
seabed.For most of history, there were no property rights in the ocean’s
fisheries because fish were in inexhaustible supply for all practical purposes.
Certain fisheries came under strain with the introduction of trawler fleets
in the late nineteenth century, however, and fish populations are under
significantly greater pressure today because of the increased scale of, and
the modern methods employed in, fishing (factory fleets, miles-long nets,
electronic detection of fish). In response to the need to preserve the fisheries,
countries have developed, through a series of treaties, property rights in
the fish found in their coastal waters; at present, a country enjoys such
rights in an Exclusive Economic Zone (EEZ) extending two hundred miles
from its coastline. This gives a country a natural incentive not to deplete
its fisheries because it will then enjoy a greater catch in the future, provided
that the fish in question do not tend to swim outside the EEZ.
Likewise there were no property rights established for oil and minerals
from the seabed until it became apparent, around the end of the Second
World War, that extraction might be commercially viable. Today, coastal
countries have property rights to the resources of the seabed within the
EEZ, which gives them (or, more precisely, companies granted licenses by
them) a motive to explore, develop technology for extraction, and then to
exploit oil and mineral resources (to date, principally manganese nodules).
Outside the EEZ, property rights to the seabed will be partial, governed
often by an international authority according to a complex provision of a
treaty on the law of the sea.
19
18. This advantage of property rights must have outweighed the costs of enforcing the
rights. It is not evident what these costs were. It is unlikely that the Indians actively policed
the borders of their lands, for that would have been inordinately expensive. Perhaps it was
sufficient for a landowner to monitor the small area near his beaver lodges for strange traps
and, if such traps were discovered, to lie in wait for interlopers.
19. For a brief description of the development of property rights in ocean resources,
see Biblowit 1991, 79–81. See also Eckert 1979, Hannesson 1991, Scott 1988, and
Sweeney, Tollison, and Willett 1974 for economically oriented analyses of the subject. On
the law of the sea treaty, see Agreement Relating to the Implementation of Part 11 of the
United Nations Convention on the Law of the Sea, with Annex, July 28, 1994.