Biosafety, Vol 4, Paper 1, (BY98001) 1998
Online Journal - URL: http://www.bdt.org.br/bioline/by
The economics of biosafety: implications for biotechnology
in developing countries
Mywish K. Maredia
Code Number: BY98001
Sizes of Files:
Text: 37K
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Date received: 29th January 1998
Date accepted: 1st April 1998
Date published: 7th April 1998
ABSTRACT
There is a growing body of literature on the safe use of biotechnology and
the need for an international biosafety protocol and national regulations
to facilitate the safe development and transfer of biotechnology. Most of
these studies, however, address the issue of biosafety from a scientific,
legal, environmental and organizational perspective. The purpose of this
paper is to add to this discussion by providing an economic perspective on
regulating products of agricultural biotechnology, with special emphasis on
implications for developing countries who are under increasing pressure to
put a biosafety framework in place. The paper provides a brief discussion
on the economic rationale for biosafety regulations, explains the economic
benefits and costs of biosafety, and discusses the appropriate form of
biosafety policy and the effects of regulation on resource allocation.
The benefits of biosafety discussed include - the reduction of possible
human and environmental risks of biotechnology products and "accident"
costs to the society; increased predictability for a research
organization of the expected time and money to get a new product on the
market; making the products of biotechnology accessible to a country; and
the provision of certainty and stability to the social framework, necessary
for the development of biotechnology research and development activities.
Developing countries should balance these potential benefits with the
tangible costs of biosafety regulation to the biotechnology organizations
and the society. To a biotechnology organization, biosafety will increase
the research lag, production costs, transaction costs and marketing costs.
Given the scarcity of human and physical resources, setting up a biosafety
system also poses opportunity costs to the society.
The following issues need careful examination in designing a biosafety
policy in a developing country: the goal of biosafety policy; the
appropriate means of controlling risk; the impact of biosafety on
scientific development and private investments; the impact of biosafety on
the international transfer of technology and international trade; the
incidence of biosafety costs; and the size of biosafety system.
Keywords: Biosafety, economic aspects, developing countries,
agriculture, biotechnology, research
Copyright 1998 remains with the author.
Published by Bioline Publications
