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IFPRI Food Policy Review: Measuring the economic impacts of transgenic crops in developing agriculture during the first decade - Approaches, findings and future directions

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May 2009

International Food Policy Research Institute (IFPRI) Food Policy Review No. 10

Measuring the Economic Impacts of Transgenic Crops in Developing Agriculture during the First Decade
Approaches, Findings, and Future Directions
Melinda Smale, Patricia Zambrano, Guillaume Gruère, José Falck-Zepeda, Ira Matuschke, Daniela Horna, Latha Nagarajan, Indira Yerramareddy, and Hannah Jones
2009
Foreword

Biotechnology in agriculture has generated a great deal of controversy in recent years. Of the many scientific advances that have occurred in plant breeding since Gregor Mendel conducted his experiments about 150 years ago, crops with genetic modifications seem to have been accorded a unique status. The use of crops that are modified by the transfer of genes across species has provoked concerns that continue to be echoed in the media and the academic press and have reached into the fields and lives of farmers in both rich and poor countries. An issue that remains unresolved is that what consumers and producers in rich countries may want is not necessarily what producers and consumers in poor countries may need (and want); hence, the preferences of the rich countries—transformed into science and development policies—may hinder the poor’s access to needed technologies.

This review of scholarly literature explores a key concern of IFPRI’s: whether biotech crops can benefit poor farmers. The authors examine the issue by emphasizing the methods applied to empirical data from developing countries, because these methods influence the nature of economists’ findings and how they interpret them. The authors consider the economic impacts of biotech crops not only on farmers, but also on consumers, the agricultural sector as a whole, and international trade. They have also compiled a web-bibliography, bEcon, which is available to researchers, particularly those in developing countries, as a tool to further their own understanding of the evidence.

The authors conclude that biotech crops have promise for poor farmers. Further in-depth investigation is required. Bt cotton is by far the most studied biotech crop, but analysis of the economic impacts of other crops has only begun. Impacts on poverty, inequality, health, and the environment need more rigorous exploration. Particular aspects of biotech crops—such as the institutional organization of their supply, the way that knowledge and transgenic seed are diffused in communities, and the costs and benefits of biosafety regulations—warrant in-depth investigation. So far, the published economics research that has applied a clearly identified method to empirical data collected in the fields of farmers in developing countries is limited. One reason is that few biotech crops have been introduced in developing-country agriculture, partly due to slow or hindered bio-policies and regulatory frameworks. Development cooperation organizations have not sufficiently invested in these; the above-mentioned preferences of some rich countries come into play here again. IFPRI is assisting developing countries to develop and implement such appropriate regulatory frameworks.

I trust that this report and the related web-bibliography will assist developingcountry researchers in establishing their own evidence base and will help in their endeavors and encourage them to address the important questions that remain to be answered. Agricultural productivity and environmental challenges—including climate change—and growing long-term food needs will require access to and utilization of advanced biotechnology in developing-country agriculture.

Joachim von Braun
Director General, IFPRI

 

 

 

 

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