64
3 Economic Framework of Conservation
efficient internalization, if desired and economically sound. In analyzing the in
situ conservation according to the social marginal costs of the country, it has to be
realized, however, that the total amount of traditional varieties is produced or
maintained by farmers on too much land, which could have the potential of being
used for the production of more food by utilizing "modern" production systems,
including modern varieties.
Instruments like a tax or coercion will not be effective in reducing the land
utilized for less productive production systems, because the farmers in marginal
areas have no other choice than to utilize these systems including the traditional
varieties. Therefore, the economic and ecological marginalized areas, in which
most of agrobiodiversity is produced and conserved de facto until now, needs
external investment in infrastructure and technology to reduce the production
limitations and to increase national food production. In the long run it should be in
the interest of all developing countries, to reduce the economic and ecological
marginalisation of areas through investments and at the same time to increase the
marginal costs of the farmers utilizing traditional production systems by
increasing the opportunity costs of maintaining traditional varieties. Consequently,
the amount of area utilized by these systems and therefore the level of
agrobiodiversity would decrease.
In the future, assuming an increase in the production in the present
marginalized areas, the question will be, with which economic instruments and
incentives can agrobiodiversity be kept at the social optimum, securing nonmarketable genetic resources? For the time being, the question will, however,
remain: how can the marginalized farmer benefit from the produced good
"agrobiodiversity" and how can the area utilized for traditional varieties be
reduced without losing varieties?
3.4.2
Economic Mechanisms of Incentives for the Conservation of PGRFA
As has been shown, the major cause-complex for the decline of PGRF A in
farmers' fields is the missing mechanisms to incorporate the social value of
PGRFA conservation into the product of PGRFA. Until now, the price for
agrobiodiversity is nothing more than the price for a specific variety on the local
food or other agricultural market. This price underrates the value of genetically
coded information incorporated in the traditional variety. Because of changes in
technology applications as well as economic development, the opportunity costs
for the maintenance of a traditional variety will rise, and the incentives to maintain
that variety will decrease. Hence, the market forces are presently unable to secure
the economic correct balance of conservation of PGRFA and changes in land-use
patterns, i.e., the optimal conservation level.
In this section the feasible incentives will be discussed (Chap. 3.4.2.1) and an
applicable approach is outlined for a "controlled in situ conservation" (Chap.
3.4.2.2).
3 Economic Framework of Conservation
efficient internalization, if desired and economically sound. In analyzing the in
situ conservation according to the social marginal costs of the country, it has to be
realized, however, that the total amount of traditional varieties is produced or
maintained by farmers on too much land, which could have the potential of being
used for the production of more food by utilizing "modern" production systems,
including modern varieties.
Instruments like a tax or coercion will not be effective in reducing the land
utilized for less productive production systems, because the farmers in marginal
areas have no other choice than to utilize these systems including the traditional
varieties. Therefore, the economic and ecological marginalized areas, in which
most of agrobiodiversity is produced and conserved de facto until now, needs
external investment in infrastructure and technology to reduce the production
limitations and to increase national food production. In the long run it should be in
the interest of all developing countries, to reduce the economic and ecological
marginalisation of areas through investments and at the same time to increase the
marginal costs of the farmers utilizing traditional production systems by
increasing the opportunity costs of maintaining traditional varieties. Consequently,
the amount of area utilized by these systems and therefore the level of
agrobiodiversity would decrease.
In the future, assuming an increase in the production in the present
marginalized areas, the question will be, with which economic instruments and
incentives can agrobiodiversity be kept at the social optimum, securing nonmarketable genetic resources? For the time being, the question will, however,
remain: how can the marginalized farmer benefit from the produced good
"agrobiodiversity" and how can the area utilized for traditional varieties be
reduced without losing varieties?
3.4.2
Economic Mechanisms of Incentives for the Conservation of PGRFA
As has been shown, the major cause-complex for the decline of PGRF A in
farmers' fields is the missing mechanisms to incorporate the social value of
PGRFA conservation into the product of PGRFA. Until now, the price for
agrobiodiversity is nothing more than the price for a specific variety on the local
food or other agricultural market. This price underrates the value of genetically
coded information incorporated in the traditional variety. Because of changes in
technology applications as well as economic development, the opportunity costs
for the maintenance of a traditional variety will rise, and the incentives to maintain
that variety will decrease. Hence, the market forces are presently unable to secure
the economic correct balance of conservation of PGRFA and changes in land-use
patterns, i.e., the optimal conservation level.
In this section the feasible incentives will be discussed (Chap. 3.4.2.1) and an
applicable approach is outlined for a "controlled in situ conservation" (Chap.
3.4.2.2).