ABSTRACT
The utility of economic theory in analyzing the economic potential of ocean-based activity has been limited by two complementary difficulties: the need to bring economic analysis of ocean affairs into the mainstream of economic theory and policy. Second one is the need for an analytical framework which contributes to the ordering of research and facilitates creation of research priorities in policy studies. A macro-economic framework would encompass partial equilibrium studies, and would also contribute to improving the methodology employed. The chapter presents a report on the historical background that lies behind the development of a project that contributes to the creation of the desired macro framework and additionally creates an order of research and policy priorities. The new account makes economics more useful in the analysis of ocean activity. The so-called Nathan Report attempts to measure the economic value—the gross value of output—from ocean resources.
