Export feasibility study of Pohnpein marine venture

Export feasibility study of Pohnpein marine venture

[Abstract]: US subsidized funds have been the primary source of revenue for the FSM for decades as the nation never developed a market economy. This funding is being withdrawn and the nation must develop a self-supporting economic base. The export of marine ornamentals has been identified as a potentially profit-generating industry, and this dissertation examines the economic feasibility and the environmental and cultural impact of harvesting and exporting Pohnpein fish. Economic evaluation is derived by applying a Cost Effective Analysis. There are seven constraints associated with this analysis: environmental, financial, distributional, management, transportation, cultural, infrastructure. This analytical framework addresses the three research objectives of this study: a cost estimation of the venture, identification of a profitable mix of fish, and the effect the monopoly structure of the FSM transport industry has on export viability. It was determined that a product mix of 21 species of fish could generate a positive revenue stream. It is unknown, however, how many firms the industry could support as quantitative data on the fish stock of Pohnpein waters has not been published. Analysis of environmental and cultural constraints revealed multiple intangible costs and consequences of the export. It could not be determined if the monetary contribution to Pohnpein society would be enough to offset these negative repercussions as such alterations could not be reversed or replaced. The negative intangibles of the export impact so heavily on the NPV that viability is reduced to 0. As a result, economic justification of the export is not present as overall outcome of the export to society could not be fully calculated.