The exploitation of resources in the South China Sea: How territorial disputes facilitate a Tragedy of the Commons

The South China Sea (SCS) is of global importance: it hosts one of the busiest trade routes in the world, and contains large amounts of natural resources such as fish, oil and gas as well. The SCS is also one of the most contested pools of water on the globe. Numerous countries claim (parts of) the SCS, and conflicting claims have resulted in a highly disputed environment. Mainly China has been assertive over the region, claiming a large part of the SCS with the so-called Nine Dash-line. This struggle over the resources in the SCS has caused states to move in rather destructive manners. Overfishing, (testing for) resource extraction and reforming islands have caused massive damage to the SCS and its marine populations. Due to lack of regulation and cooperation, local people as well as corporations are not only unhindered in taking destructive actions, they are incentivized to do so. The situation in the SCS is a dire one, fish populations are already at an all time low, putting the...Show moreThe South China Sea (SCS) is of global importance: it hosts one of the busiest trade routes in the world, and contains large amounts of natural resources such as fish, oil and gas as well. The SCS is also one of the most contested pools of water on the globe. Numerous countries claim (parts of) the SCS, and conflicting claims have resulted in a highly disputed environment. Mainly China has been assertive over the region, claiming a large part of the SCS with the so-called Nine Dash-line. This struggle over the resources in the SCS has caused states to move in rather destructive manners. Overfishing, (testing for) resource extraction and reforming islands have caused massive damage to the SCS and its marine populations. Due to lack of regulation and cooperation, local people as well as corporations are not only unhindered in taking destructive actions, they are incentivized to do so. The situation in the SCS is a dire one, fish populations are already at an all time low, putting the meals and jobs of millions of people at risk. A solution is called upon, but due to conflicting claims of countries, causing mistrust and increased militarization, this is not in sight. This thesis aims to explain the situation in the SCS, and will do so on two levels. First, it will explain the situation states find themselves in and which choices present themselves when operating in the SCS. As said, that situation creates an environment where locals as well as corporations find themselves being able to overexploit, thus eventually destroying the natural resources the SCS contains. Fish is one of the most overexploited thereof, with marine populations showing sharp decline in numbers since the last decades. Therefore this thesis will secondly present an analysis on what situation fishermen find themselves in. Both these parts will be explained through game theory. Multiple models will be presented to explain the interactions that countries and their populations find themselves in, and why they make the choices they make. Lastly, some propositions will be made on how to create an environment in which these problems can be overcome and create a well-managed sea.Show less

Leiden University Student Repository

Documents

In Collections

The exploitation of resources in the South China Sea: How territorial disputes facilitate a Tragedy of the Commons