Coastal state: Meaning, Criticisms & Real-World Uses

What Is a Coastal State?

A coastal state, in the realm of Regional Economics, refers to a sovereign state or a sub-national entity that possesses a coastline bordering an ocean, sea, or one of the Great Lakes. This geographical characteristic significantly influences its economic structure, opportunities, and challenges. The designation of a coastal state carries specific legal and economic implications, as its proximity to large bodies of water often underpins key industries and necessitates particular management strategies.

The concept of a coastal state extends beyond mere geography to encompass the legal frameworks and international conventions that govern its rights and responsibilities over maritime areas and resources. For instance, in the United States, a "coastal state" is specifically defined under the Coastal Zone Management Act to include states bordering oceans, the Gulf of Mexico, Long Island Sound, and the Great Lakes, as well as territories like Puerto Rico and Guam. This legal definition enables states to receive federal financial assistance for managing their coastal zones and associated activities.⁴ The economic vitality of a coastal state is often intrinsically linked to its maritime assets, affecting aspects such as Gross Domestic Product and overall Economic Development.

History and Origin

The recognition of distinct rights and responsibilities for coastal states has evolved significantly over centuries, formalized through international law. Historically, coastal communities have always leveraged their proximity to water for trade, fishing, and defense. However, the modern legal definition and the scope of a coastal state's jurisdiction became particularly defined in the 20th century.

A pivotal moment in the establishment of international norms for coastal states was the Third United Nations Conference on the Law of the Sea, which concluded in 1982 with the United Nations Convention on the Law of the Sea (UNCLOS). Although UNCLOS does not explicitly define "coastal state," it frequently refers to the term, delineating the rights and obligations of states in their territorial seas, contiguous zones, and Exclusive Economic Zones (EEZs). These provisions underscore a coastal state's sovereignty over its land territory, internal waters, and territorial sea, along with specific rights related to the exploration and exploitation of Natural Resources within its extended maritime zones.

Key Takeaways

A coastal state is a geographical and political entity with a coastline, whose economy is often shaped by its access to maritime resources and activities.
Such states possess distinct legal rights and obligations under international and national laws regarding their coastal and maritime territories.
Key economic sectors in coastal states often include tourism, shipping, commercial fishing, energy production, and various maritime industries.
Coastal states face unique economic risks, such as those posed by climate change, including sea-level rise and extreme weather events.
Effective management of coastal zones and maritime resources is crucial for the long-term economic stability and Sustainable Development of these regions.

Interpreting the Coastal State

Understanding the economic landscape of a coastal state involves analyzing how its unique geographical position translates into financial flows and economic stability. The economic health of a coastal state is heavily influenced by its ability to manage its marine and coastal resources effectively. This includes industries like port operations, which facilitate international trade and generate significant income, as well as coastal tourism, which attracts visitors and contributes to local economies through direct spending on hospitality, recreation, and retail.

Furthermore, a coastal state often benefits from industries related to offshore energy, commercial fishing, and aquaculture. The interpretation of a coastal state's financial standing requires examining the contribution of these sectors to its overall Fiscal Policy and Tax Revenue. Policy decisions regarding environmental protection, disaster preparedness, and infrastructure development play a critical role in sustaining these economic activities and mitigating potential risks associated with coastal living.

Hypothetical Example

Consider the hypothetical coastal state of "Seaview." Seaview's economy heavily relies on its pristine beaches and vibrant fishing industry. Tourism accounts for 40% of its Gross Domestic Product, with visitors drawn to its seaside resorts and fresh seafood. The fishing industry, while smaller, provides significant employment and cultural heritage.

However, Seaview faces increasing threats from rising sea levels and more frequent severe storms due to climate change. A major hurricane, "Typhoon Tempest," makes landfall, causing widespread damage to coastal infrastructure, including resorts, fishing fleets, and public roads. The state's Infrastructure Investment in seawalls and early warning systems helped limit some damage, but the economic aftermath is substantial. Tourists cancel bookings, fishing boats are damaged, and repair costs mount. Seaview's ability to recover economically depends on its existing disaster relief funds, federal aid, and its long-term Risk Management strategies, such as investing in resilient infrastructure and diversifying its economic base.

Practical Applications

The concept of a coastal state is critical in various practical applications, particularly concerning economic planning, resource management, and international relations. Governments of coastal states often develop specific economic policies aimed at maximizing the benefits from their coastal and marine environments while minimizing risks.

These applications include:

Tourism Development: Coastal states frequently invest in tourism infrastructure and marketing, recognizing the significant Economic Development potential of beaches and coastal attractions. Beaches alone contribute substantially to the national economy, with a large percentage of tourism revenue generated in coastal states.³
Maritime Trade and Logistics: Port cities within coastal states serve as vital hubs for global trade, influencing import/export dynamics and necessitating investments in modern port facilities and logistics.
Fisheries Management: Coastal states implement regulations and quotas to ensure the sustainability of fish stocks, balancing economic output with ecological preservation.
Energy Exploration: Many coastal states are involved in offshore oil, gas, and renewable energy (e.g., wind farms) projects, which can be significant sources of revenue and employment.
Environmental Protection and Climate Resilience: Given their vulnerability to climate change, coastal states are at the forefront of developing Environmental Regulations and adaptation strategies to protect coastlines, manage erosion, and prepare for sea-level rise. The U.S. Bureau of Economic Analysis (BEA) provides specific economic data and tools like RIMS II to help coastal areas understand the economic impact of various activities and make informed decisions.²

Limitations and Criticisms

While coastal states benefit from unique economic opportunities, they also face inherent limitations and criticisms. A primary concern is their susceptibility to environmental challenges, particularly climate change impacts such as sea-level rise, coastal erosion, and increased frequency and intensity of severe storms. These phenomena can lead to substantial property loss, disruption of economic activities, and significant costs for repair and adaptation. Reports highlight the devastating economic impact of rising sea levels on coastal properties and communities.¹

Over-reliance on a single economic sector, such as tourism or fishing, can expose a coastal state to significant Market Volatility. Fluctuations in tourist demand, changes in fish populations, or global energy prices can have disproportionate effects on the state's economy. Furthermore, the high population density in many coastal areas can strain infrastructure and necessitate substantial Public Finance outlays for services and maintenance. Balancing economic development with environmental conservation also presents a continuous challenge, as rapid urbanization and industrial activity can degrade coastal ecosystems, impacting the very resources that drive the economy.

Coastal State vs. Exclusive Economic Zone (EEZ)

The terms "coastal state" and "Exclusive Economic Zone" (EEZ) are closely related but refer to distinct concepts in international law and economics. A coastal state is the sovereign political entity—a country or a sub-national division—that has a coastline. It is the geographic and political actor that exercises jurisdiction and rights.

An Exclusive Economic Zone (EEZ), on the other hand, is a maritime area adjacent to the coast of a coastal state, extending up to 200 nautical miles from its baselines. Within its EEZ, a coastal state has sovereign rights for the purpose of exploring and exploiting, conserving, and managing natural resources, whether living or non-living, of the waters superjacent to the seabed and of the seabed and its subsoil. While the EEZ is a zone over which the coastal state exercises specific rights, the coastal state itself is the entity that possesses and manages that zone. Essentially, the EEZ is a significant component of a coastal state's economic territory, but it is not the state itself.

FAQs

What are the main economic benefits for a coastal state?

Coastal states often benefit from thriving tourism industries, lucrative fishing and aquaculture sectors, strategic ports for international Trade Agreements and shipping, and access to offshore energy resources like oil, gas, or wind power.

How does climate change affect the economy of a coastal state?

Climate change poses significant economic risks to coastal states through rising sea levels, increased coastal erosion, and more frequent and intense storms. These can damage infrastructure, displace populations, disrupt industries, and necessitate substantial Capital Expenditures for mitigation and adaptation efforts.

What are the challenges in managing a coastal state's economy?

Key challenges include balancing economic development with environmental protection, managing the impacts of climate change, addressing population density and infrastructure needs, and ensuring economic Diversification to mitigate risks associated with over-reliance on a few sectors.

Are all countries with coastlines considered "coastal states" under international law?

Generally, yes, any country with a coastline is considered a coastal state in international maritime law. This grants them certain rights and responsibilities, particularly concerning their territorial waters and Exclusive Economic Zones (EEZs) as defined by the United Nations Convention on the Law of the Sea (UNCLOS).