3.2 Economic Valuation of Environmental Goods at a National Level
53
famine will be more likely to occur in developing countries in the future (Smale,
1997), where the immediate food supply through the established food help
channels will be faster than breeders' attempt of supplying new varieties. On the
other hand, the genetically coded information useful in tackling the problems may
be available in other genetic resources or synthetic compounds may be developed
(von Braun and Virchow, 1996). There is already some evidence that the elasticity
of demand for PGRFA may be much higher than expected: ICRISAT has put its
PGRFA collection under the auspices of FAD. Consequently, everyone asking for
genetic resources for research and development must confirm that the material
received will not be patented or other wise protected and that the benefits resulting
from its use will be shared with the country of origin (ICRISAT, n.d.)24. Since
ICRISAT started sending this standard order form to all requesting germplasm, the
overwhelming majority does not send the order form back and seems no longer
interested in the germplasm requested (Pundis, 1996). Particularly interesting is
that not only private breeders, but also universities and national genebanks are
reacting in this way. Because of the uncertainty of the future development in
property rights, an agreement like the CGIAR's order form may be more of a
disadvantage than charging a specific contribution and being awarded the property
rights for the genetically coded information. The Willingness to pay for genetically
coded information may be higher than the willingness to accept legal
uncertainties. This corresponds with statements from the Indian private breeding
sector, which is willing to pay for obtaining germplasm from the Indian national
genebank (Kush, 1996).
However, as long as PGRFA are existent in the broad diversity, and as long as
they are accessible at low costs in ex situ storage facilities, genetically coded
information contributes significantly to the breeding value of new varieties.
Additionally, conventional market mechanisms are not able to incorporate
intergenerational aspects of PGRFA conservation and the irreversibility loss of
genetic resources.
At present, the values of the use and non-use aspects of PGRFA are rising
simultaneously because of increasing demand on the one hand and decreasing
supply on the other. In the future, this value will depend heavily on technical
improvements and development, as depicted in and described below.
,.. Since 1991, ICRISAT has placed germplasm under the auspices of FAO, based on the
Agreement between ICRISAT and FAO dated 26 October 1991. In ICRISAT's Standard
Order Form for 'designated germplasm' the person or institution requesting the germplasm
has to agree on (ICRISAT, n.d.):
..... notto claim ownership over the material received. nor to seek intellectual property rights
over that germplasm or related itiformation. to ensure that any subsequent person or
institution to whom they make samples of the germplasm available. is bound by the same
provision . ..
53
famine will be more likely to occur in developing countries in the future (Smale,
1997), where the immediate food supply through the established food help
channels will be faster than breeders' attempt of supplying new varieties. On the
other hand, the genetically coded information useful in tackling the problems may
be available in other genetic resources or synthetic compounds may be developed
(von Braun and Virchow, 1996). There is already some evidence that the elasticity
of demand for PGRFA may be much higher than expected: ICRISAT has put its
PGRFA collection under the auspices of FAD. Consequently, everyone asking for
genetic resources for research and development must confirm that the material
received will not be patented or other wise protected and that the benefits resulting
from its use will be shared with the country of origin (ICRISAT, n.d.)24. Since
ICRISAT started sending this standard order form to all requesting germplasm, the
overwhelming majority does not send the order form back and seems no longer
interested in the germplasm requested (Pundis, 1996). Particularly interesting is
that not only private breeders, but also universities and national genebanks are
reacting in this way. Because of the uncertainty of the future development in
property rights, an agreement like the CGIAR's order form may be more of a
disadvantage than charging a specific contribution and being awarded the property
rights for the genetically coded information. The Willingness to pay for genetically
coded information may be higher than the willingness to accept legal
uncertainties. This corresponds with statements from the Indian private breeding
sector, which is willing to pay for obtaining germplasm from the Indian national
genebank (Kush, 1996).
However, as long as PGRFA are existent in the broad diversity, and as long as
they are accessible at low costs in ex situ storage facilities, genetically coded
information contributes significantly to the breeding value of new varieties.
Additionally, conventional market mechanisms are not able to incorporate
intergenerational aspects of PGRFA conservation and the irreversibility loss of
genetic resources.
At present, the values of the use and non-use aspects of PGRFA are rising
simultaneously because of increasing demand on the one hand and decreasing
supply on the other. In the future, this value will depend heavily on technical
improvements and development, as depicted in and described below.
,.. Since 1991, ICRISAT has placed germplasm under the auspices of FAO, based on the
Agreement between ICRISAT and FAO dated 26 October 1991. In ICRISAT's Standard
Order Form for 'designated germplasm' the person or institution requesting the germplasm
has to agree on (ICRISAT, n.d.):
..... notto claim ownership over the material received. nor to seek intellectual property rights
over that germplasm or related itiformation. to ensure that any subsequent person or
institution to whom they make samples of the germplasm available. is bound by the same
provision . ..