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5.3<br />
REWARDING BENEFITS THROUGH PAYMENTS AND MARKETS<br />
THE ECONOMICS OF ACCESS AND<br />
BENEFIT SHARING (ABS)<br />
“My father said: You must never try<br />
to make all the money that's in a deal.<br />
Let the other fellow make some money<br />
too, because if you have a reputation<br />
for always making all the money, you<br />
won't have many deals.”<br />
J. Paul Getty<br />
This section looks at economic factors that influence<br />
the value of genetic resources (5.3.1) and considers<br />
ways to overcome current constraints on maximising<br />
such value (5.3.2). This is a key issue to those who<br />
own genetic resources or involved in land use decisions<br />
that affect them. Typically such groups are<br />
made up of relatively poor rural farming or indigenous<br />
communities. Benefits from genetic resources could<br />
play an important role in improving their livelihoods<br />
as well as stimulating better use of stocks of genetic<br />
materials. The resulting gains could thus be spread<br />
more widely between developing and developed<br />
countries.<br />
A key CBD objective is the fair and equitable sharing<br />
of benefits arising from the utilisation of genetic re-<br />
Sector<br />
Pharmaceutical<br />
Biotechnology<br />
Crop protection products<br />
Agricultural seeds<br />
Ornamental horticulture<br />
Personal care, botanical<br />
and food & beverage<br />
industries<br />
sources. Following the call for action by Heads of<br />
State at the World Summit for Sustainable Development<br />
(Johannesburg, 2002), negotiations are now<br />
under way within the CBD to develop a dedicated international<br />
regime to implement relevant provisions of<br />
the Convention (see 5.3.3 and 5.3.4 below).<br />
5.3.1 THE VALUE OF GENETIC<br />
RESOURCES<br />
Genetic resources provide source material for a range<br />
of commercial products from mainstream pharmaceutical<br />
to botanical medicines, new seed varieties, ornamental<br />
horticultural products, new enzymes and<br />
microorganisms for biotechnology, crop protection products<br />
and personal care and cosmetic products. Table<br />
5.2 presents data on the estimated size of the market<br />
for these product categories and the percentage derived<br />
from genetic inputs to provide an indication of<br />
the economic value of activities dependent on genetic<br />
resources.<br />
A key question in the ABS context is how much of the<br />
Table 5.2: Market sectors dependent on genetic resources<br />
Size of Market<br />
US$ 640 bn. in 2006<br />
US$ 70 bn. in 2006 from public<br />
companies alone<br />
US$ 30 bn. in 2006<br />
US$ 30 bn. in 2006<br />
Global import value US$ 14 bn<br />
in 2006<br />
US$ 22 bn. for herbal supplements<br />
US$ 12 bn. for personal care<br />
US$ 31 bn for food products<br />
All in 2006<br />
Comment<br />
25-50% derived from genetic resources<br />
Many products derived from genetic resources<br />
(enzymes, microorganisms)<br />
Some derived from genetic resources<br />
All derived from genetic resources<br />
All derived from genetic resources<br />
Some products derived from genetic<br />
resources. Represents ‘natural’ component<br />
of the market.<br />
<strong>TEEB</strong> FOR NATIONAL AND INTERNATIONAL POLICY MAKERS - CHAPTER 5: PAGE 34<br />
Source: SCBD 2008