98
4 Institutional Frameworks for the Exchange and Utilization of PGRFA
access to plant biotechnology (this group is made up of 41 countries or 27% of
reporting countries). Especially developing countries with more financial
resources and personnel trained like China, India, the Republic of Korea,
Argentina, Brazil and Mexico are increasing their technological capacity (von
Braun and Virchow, 1997).
Consequently, developing countries rich in PGRFA and with developed or
advanced crop improvement programs presently have comparative advantages for
an internalization of the benefits resulting from PGRFA utilization and could win
through a bilateral or private exchange system. Developing countries, rich in
PGRF A but poor in technology potential, could win through the internalization of
benefits, if adequate enforcement systems are implemented. On the other hand,
because of high transaction costs for such an enforcement, these countries could
also win through the compensation solution in a very broad multi-lateral system.
PGRFA-poor developing countries, however, will push a compensation solution,
based on a multi-lateral system in which compensation is allocated by unspecified
criteria. This would be the only means which those countries could benefit from
the international exchange of PGRFA, besides benefiting from the supply of
modern varieties through international public and private channels.
Nevertheless, regardless of which exchange system will dominate, key
requirements for any system are (1) the secure conservation of PGRFA (in situ as
well as ex situ) on a national and an international level, (2) an ensured system for
crediting the supplied PGRFA, and foremost (3) a comprehensive information
system, which enables the reduction of transaction costs for PGRFA exchange as
well as the enforcement of any benefit agreements.
The system of internalization would tend to a bilateral exchange system or
imply a market approach, where either the countries or the farmers, individually or
as community, will profit directly from any germplasm exchange. Meanwhile the
system of compensation would suggest a more general, non-targeted approach for
a multilateral exchange system. One key role for the compensation system is the
establishment and utilization of an international fund as the nodal point for
financial transfer from PGRFA users (countries or private companies) to PGRFA
suppliers. The basic framework for the "International Fund for Plant Genetic
Resources" was adopted by FAO Resolution 3/91, which agreed " ... that Farmers'
Rights will be implemented through an international fund of plant genetic
resources, which will support plant genetic conservation and utilization ... " (FAO,
1996f, paragraph 16). Matters related to the legal status, policies, priorities, and
parties as well as to the financing are, however, still under discussion. In the
discussion, it is of importance to differentiate between questions concerning the
sources of funding on the one hand and the mechanisms of imposing and
distributing the funds on the other.
The majority of industrialized countries would like to see the funds already
allocated to multi- and bilateral development assistance as the major part of the
benefit sharing in a multi-lateral exchange system. For this reason, the
industrialized countries have difficulties in accepting a new fund; they prefer rather
the funding organized and directed through the existing channels. Among these are
the bilateral official development assistance, multilateral and international
4 Institutional Frameworks for the Exchange and Utilization of PGRFA
access to plant biotechnology (this group is made up of 41 countries or 27% of
reporting countries). Especially developing countries with more financial
resources and personnel trained like China, India, the Republic of Korea,
Argentina, Brazil and Mexico are increasing their technological capacity (von
Braun and Virchow, 1997).
Consequently, developing countries rich in PGRFA and with developed or
advanced crop improvement programs presently have comparative advantages for
an internalization of the benefits resulting from PGRFA utilization and could win
through a bilateral or private exchange system. Developing countries, rich in
PGRF A but poor in technology potential, could win through the internalization of
benefits, if adequate enforcement systems are implemented. On the other hand,
because of high transaction costs for such an enforcement, these countries could
also win through the compensation solution in a very broad multi-lateral system.
PGRFA-poor developing countries, however, will push a compensation solution,
based on a multi-lateral system in which compensation is allocated by unspecified
criteria. This would be the only means which those countries could benefit from
the international exchange of PGRFA, besides benefiting from the supply of
modern varieties through international public and private channels.
Nevertheless, regardless of which exchange system will dominate, key
requirements for any system are (1) the secure conservation of PGRFA (in situ as
well as ex situ) on a national and an international level, (2) an ensured system for
crediting the supplied PGRFA, and foremost (3) a comprehensive information
system, which enables the reduction of transaction costs for PGRFA exchange as
well as the enforcement of any benefit agreements.
The system of internalization would tend to a bilateral exchange system or
imply a market approach, where either the countries or the farmers, individually or
as community, will profit directly from any germplasm exchange. Meanwhile the
system of compensation would suggest a more general, non-targeted approach for
a multilateral exchange system. One key role for the compensation system is the
establishment and utilization of an international fund as the nodal point for
financial transfer from PGRFA users (countries or private companies) to PGRFA
suppliers. The basic framework for the "International Fund for Plant Genetic
Resources" was adopted by FAO Resolution 3/91, which agreed " ... that Farmers'
Rights will be implemented through an international fund of plant genetic
resources, which will support plant genetic conservation and utilization ... " (FAO,
1996f, paragraph 16). Matters related to the legal status, policies, priorities, and
parties as well as to the financing are, however, still under discussion. In the
discussion, it is of importance to differentiate between questions concerning the
sources of funding on the one hand and the mechanisms of imposing and
distributing the funds on the other.
The majority of industrialized countries would like to see the funds already
allocated to multi- and bilateral development assistance as the major part of the
benefit sharing in a multi-lateral exchange system. For this reason, the
industrialized countries have difficulties in accepting a new fund; they prefer rather
the funding organized and directed through the existing channels. Among these are
the bilateral official development assistance, multilateral and international