CARIBBEAN DEVELOPMENT BANK

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1 CARIBBEAN DEVELOPMENT BANK 34 th ANNUAL MEETING OF THE BOARD OF GOVERNORS SEMINAR ON AGRICULTURE AND RURAL DEVELOPMENT Tracking Modern Biotechnology to Enhance Agriculture and Rural Development in the Caribbean Development Bank s Borrowing Member Countries Presenter: Professor Leonard O Garro Ph.D.

2 Opening Remarks I want to begin by thanking the Caribbean Development Bank for the opportunity to address you on the subject on the occasion of the Thirty Fourth Annual Board of Governors Meeting. The talk will proceed as follows: I will first introduce the nature and scope of biotechnology. I will then make reference to the emergence of modern biotechnology as a major economic activity and point out why the Anglophone Caribbean is marginal to this thrust. I will also indicate how modern biotechnology can be broadly used to enhance Caribbean agriculture and advance strategies for bringing this about and for consolidating crop production in response to ensuing potential threats. Nature and scope of biotechnology Biotechnology can be regarded as the use of biological agents including microbes, enzymes and animal and plant cells to produce goods and services of industries associated with food, beverage, pharmaceuticals, etc. It is comprised of a number of field of activities of which genetic engineering, cell culture technology, enzyme technology and fermentation technology are amongst the most important. Fermentation technology is concerned with exploitation of microbes capable of fermenting raw materials to produce commercially desirable products such as wine, cheese, beer, industrial chemicals (acetone, glycerol, citric acid, etc), polysaccharides, vitamins, amino acids, antibiotics and bulk quantities of microbes including baker s; yeast, brewer s yeast, soil amendments and biological control agents of agricultural pests and diseases. Enzyme technology is associated with the isolation of enzymes and it has given rise to industrial catalysts, therapeutic agents and analytical tools. Cell culture technology is about growing animal and plant cells to produce commercial quantities of propagative material such as seedlings and useful substances like hormones, vaccines, blood clotting agents, interferons and monoclonal antibodies. Genetic engineering, which is the field of activity giving current impetus to biotechnology, is concerned with artificial gene transfer between different organisms. It is dependent on the other field of activities to produce goods and services and it has given rise to what is referred to as modern biotechnology.

3 Global and Caribbean perspectives on market trends in modern biotechnology Biotechnology is regarded as a key industry of the 21 st Century. Many countries, mainly developed ones, have created attractive investment climates for it and the result has been a plethora of innovations producing new goods, services and hardware, all of which are beginning to affect global trade profoundly. Developing countries have generally not been able to foster a similar climate for biotechnology and as a result they are being sidelined as simply importers of associated goods and services. Moreover, the emergence of these countries institutional capacity to regulate goods and services of modern biotechnology, particularly in light of biosafety concerns which will be discussed later, has been overtaken by the previously mentioned trade. In light of the trailing position of developing countries, opportunities must be sought to address the imbalance. Global developments in modern biotechnology offer promise to address the imbalance and tracking them for this purpose should be of interest to developing countries. In this talk, I will feature one such global development and opportunities it presents for enhancing the agricultural sector of the Caribbean Development Bank s borrowing member countries (BMCs). Regulation of modern biotechnology as a global development and its relevance to agriculture I will approach the talk within the context of the Cartagena Protocol on Biosafety (Biosafety Protocol), which is the United Nations global system for managing trade in genetically modified organisms (GMOs) which are among the primary outputs of modern biotechnology. The Biosafety Protocol is slanted towards agriculture and it can be a guide to countries wishing to develop an agrobiotechnology industry which conforms to internationally acceptable standards. The general focus of the Biosafety Protocol is on GMOs that will be placed on the market. Reference to market covers releases to the environment, as would be the case in planting seeds of a genetically modified crop. The 2

4 Biosafety Protocol came into effect on September 20, All the BMCs will be Parties to the Protocol and will therefore be bound to facilitate trade in GMOs. For the purpose of this paper I will select two of the most important features of the Biosafety Protocol and point out their potential for impacting agriculture. I confine my remarks to plant agriculture which is currently more targeted by modern biotechnology than the other primary food sectors. The first feature underscores the potential of modern biotechnology to benefit mankind and the Biosafety Protocol promotes distribution of associated benefits among countries through trade. The other feature is a provision for protecting the environment and promoting sustainable development in the face of inherent potential risks linked to some applications of modern biotechnology. The Biosafety Protocol, in this regard, became the first binding system to link trade and the environment. Application of modern biotechnology to agriculture: scope, requirements, constraints and prospects I will now discuss the potential impact of modern biotechnology on agriculture with links to rural development in BMCs. As far as the first feature is concerned, the potential benefits of modern biotechnology are mainly linked to gene transfer by genetic engineering. With genetic engineering, the hereditary material or DNA of one organism can be altered to contain genes from different organisms in precise ways without regard for dissimilarity of the organisms involved. This ability to engineer hereditary material has given rise to life forms called GMOs, living modified organisms or transgenic organisms. The relevance of biotechnology targeting genetic engineering of plants is that it can be used for crop improvement. In this use, desirable or agronomically important genes are sought and introduced into crops. These genes are frequently used for controlling insect pests and diseases caused by microbes. All of these infestations reduce crop yield if they 3

5 are unchecked. Improving crop adaptability to drought or other growth-limiting situations such as saline soil in Guyana is desirable. Marginal and subsistence crops, both of which are often of critical importance to indigenous people, rural communities and resource-poor farmers, should also be among those targeted for improvement or upgrade by modern biotechnology. Use of modern biotechnology to improve crops in BMCs is predicated on ability to undertake the following key tasks: 1. isolation and characterization of genes controlling desirable agronomic traits. 2. development of gene transfer systems applicable to tropical crops. In addition to these requirements an extensive array of ancillary and support competences is needed for GMO development. Moreover, only a well planned biotechnology industry enabled by policy can provide the competences required. How can capacity be built in the context of the Biosafety Protocol? The answer is that the Protocol itself contains capacity building mechanisms to assist developing countries in acquiring the necessary competences to implement and operate it efficiently. The competences required for the Biosafety Protocol s effective implementation and operation are generally the same as those needed to set up and run a biotechnology industry and include gene transfer techniques applicable to crop improvement. The capacity building mechanisms of the Biosafety Protocol were instituted to facilitate technology transfer in attempt to broaden distribution of potential benefits of modern biotechnology. Given the current lack of capacity among BMCs to exploit modern biotechnology, I urge them to embark on building capability commensurate in scale and range of competences to service an agrobiotechnology industry. The Biosafety Protocol can be used to enable agriculture with links to rural development through opportunities it provides to develop an agrobiotechnology industry which at least supplies competences for crop improvement 4

6 by genetic engineering. Other appropriate multilateral or bilateral agreements in which BMCs are involved should be used to similar effect. Biosafety and socio-economic concerns I now turn my attention to the relationship between the Biosafety Protocol and potential risks associated with modern biotechnology. This is the second feature of the Biosafety Protocol I referred to earlier. Genetic engineering eliminates all natural barriers to exchange of genetic information between all forms of life. Eliminating these barriers creates possibilities for unlimited combinations of genetic material in GMO development. However, inherent in the use of the technique in this way is a degree of unpredictability relative to intended outcomes. For this reason and in the absence of historical data on GMO use, the Biosafety Protocol acknowledges the need for caution to minimize potential adverse impacts. With trade in GMOs and products derived from them, risks of adverse nature may therefore be anticipated. In the context of agriculture several concerns feature frequently. There is concern that some GMOs if released in the environment may become invasive species and cause damage to ecosystems. There are also concerns about what is referred to as gene flow. Gene flow is the possibility of transferring a gene from a genetically modified (GM) crop to conventional relatives by cross pollination. The ecological significance of gene movement from GM crops into unintended parts of the environment is unknown. At the very least, this type of gene transfer is problematic for situations in which GM crops must co-exist with other crops not derived from genetic engineering without contamination from transgenic plants. Another concern is that plants engineered for resistance to viruses may generate new diseases. Engineered virus resistant crops DNA usually contain viral genes which can be transferred by a special mechanism to other virus types infecting the same crop. In this way, new viral strains may emerge. 5

7 There are also concerns about potential risks to human health. One main reason is that genetic engineering routinely moves proteins into human food supply from organisms that have never been part of the human diet. Many of these proteins may be food allergens. Another concern is that resource-poor farmers could be impacted negatively if pricing of seeds of lucrative GM crops is restrictive. An eventuality of this type will not broaden the benefits of modern biotechnology. What is the relevance of these potential threats to BMCs? The following observations are helpful in providing an answer: 1. The small island states among BMCs possess fragile ecosystems that are highly vulnerable to natural disasters and external threats by invasive biological agents including plants, animal and microbes. These islands are also characterized by a tight cluster of small farms lacking significant physical barriers between them to isolate crops from invasive biological agents or gene flow. 2. Several BMCs notably Surinam, Belize and Guyana are mega-rich with respect to biodiversity, which they are bound by international conventions to conserve. They also possess indigenous human settlements whose livelihoods are set in an environment sustained by the rich biodiversity. 3. BMCs are also heavily dependent on food imports and agricultural inputs including seeds and microbial biological agents, all of which have become targets for the application of molecular biotechnology. 4. Another relevant observation on most BMCs is the importance of domestic agriculture to the corresponding economies as shown in the table below. 6

8 Table 1 Economic Contribution of Agriculture in Borrowing Member Countries Country Percent of Gross Percent of Foreign Percent of Labour Domestic Product Exchange Earning Force Anguilla Antigua & Barbuda Bahamas Barbados Belize British Virgin Islands Cayman Islands Dominica Grenada Guyana Jamaica St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Surinam Trinidad and Tobago Turks and Caicos Islands Notes: - Data not available ;... Less than one per cent 1 Data are for Data are for 2001 Source: Caribbean Development Bank; FAO STAT and World Bank Development Indicators

9 On the basis of the observations above, it can be concluded that GMOs could be considered great potential threats to agriculture with implications for rural development and sustainable livelihoods in BMCs. There are also potential threats to biodiversity. Response to concerns Not withstanding the promise of modern biotechnology, agriculture also requires the highest level of safeguard from potential adverse effects. The Biosafety Protocol is relevant in this context. Parties to the Biosafety Protocol are required to be proactive in the face of potential threats linked to GMOs in commercial use. Under the Biosafety Protocol proactive action, initially in the form of risk assessment, will be triggered by applications to a competent authority for permission to place GMOs on the market. The outcome of the risk assessment will be used to decide if permission should be granted and if so whether or not mandatory risk containment procedures are required. Compliance with the Biosafety Protocol therefore will reduce the potential for uncontrolled or erroneous introduction of GMOs on the market. This is especially important for BMCs in light of their general small size, limited resource base and the overall relevance of threats highlighted earlier. Capacity to comply with the Biosafety Protocol in the area of biosafety is lacking in the BMCs. The Biosafety Protocol s capacity building mechanism previously mentioned should be called upon again to assist with developing the relevant competences. As mentioned before, acquiring these capabilities is better pursued in the context of a comprehensive policy to develop a biotechnology industry with links to agriculture. Further support, not necessarily provided for by the Biosafety Protocol s capacity building mechanisms, may be required to address the special vulnerabilities of agriculture and related areas in the BMCs. Despite the potential diversity of GMOs of relevance to agriculture, risk assessment and risk management will be approached on a case-by-case 8

10 basis. Proactive action through the case-by-case approach has limitations and represents minimal obligations under the Biosafety Protocol. Countries are accordingly encouraged in their self interest to elaborate more comprehensive levels of safeguards against the potential adverse effects of GMOs intended for the market. A strategy is therefore required to augment protection contemplated under the Biosafety Protocol. One strategy I wish to propose is one which maintains planting material of selected crops at all times and in quantities sufficient to replace predetermined acreage of these crops in event of GMO-related damage in the field or through trade. The proposed strategy is an industry-level response to prospective macro-level forces linked to modern biotechnology and which may impact adversely on agriculture and the environment. Crops could be selected for maintenance based on their importance to export agriculture and/or food security and vulnerability to potential threats. Most BMCs have already identified crops for export promotion and food security as shown in the table below. 9

11 Table 2 Main Crops Identified for Food Security and/or Export Agriculture in Borrowing Member Countries Country Crops Anguilla - Antigua & Barbuda Bahamas Barbados Belize Fruits, vegetables, hot pepper Citrus, avocado, vegetables Sugarcane, vegetables, root crops, fruits, hot pepper Rice, sugarcane, banana, citrus, beans, papaya, vegetables, hot pepper British Virgins Island - Cayman Islands - Dominica Grenada Guyana Jamaica St. Kitts/Nevis St. Lucia St. Vincent and the Grenadines Surinam Trinidad and Tobago Banana, hot pepper, plantain, citrus, root crops, vegetables, avocado coconut, papaya Nutmeg, cocoa, banana, fruits, hot pepper, root crops, vegetables, papaya Sugarcane, rice, spices, pineapple, coconut, plantain, vegetables Sugarcane, banana, root crops, hot pepper, coffee, fruits, papaya Sugarcane, root crops, vegetables Banana, hot pepper, fruits, spices, coconut, vegetables, papaya Banana, root crops, fruits, spices, plantain, coconut, hot pepper, papaya Rice, banana, root crops, vegetables, fruits Sugarcane, fruits, vegetables, hot pepper Turks and Caicos Islands - Main Source: FAOSTAT and World Bank Development Indicators,

12 Indices of vulnerability based on risk assessment will have to be derived to meet the crop selection requirement. Planting material should be bulked preferably as seeds or tissue culture plantlets for efficiency with respect to production, storage, maintenance, transport and overall control of the propagative material. The proposed strategy will also form the basis for the previously mentioned programmes of crop improvement by genetic engineering, which is dependent on plant tissue culture for GM crop development. Plant tissue culture in its own right can also be used to improve crops. Marginal and subsistence crops can be promoted or upgraded, at least by making bulk quantities of high quality planting material available. Planting material maintained as seeds or tissue culture plantlets has limited shelf life and must be replaced periodically. In this regard, the strategy proposed can be operated as a regular supply system of planting material to farmers also. A supply system organized in this way creates opportunities to develop and enforce quality standards for planting material, as would be required in any case but are generally lacking for indigenous crops. This supply system will also be a critical point of support by the proposed strategy for crops cultivated for export and food security. It can also be used to buffer potential dislocation of agriculture by GMO trade if its use is accompanied by promotion and incentives to make cultivation of affected crops viable. Capacity, including physical facilities and technical, scientific and administrative competences will be required to match the scale and complexity of the proposed strategy. Programmes to build effective capacity in tissue culture and seed technologies in CARICOM countries have been previously undertaken by the Food and Agricultural Organization (FAO) of the United Nations. These programmes should be built upon. The proposed strategy augments and consolidates another important initiative targeting BMCs. It extends the scope of the disaster preparedness plan by taking into account potential adverse impact of GMO on agriculture. 11

13 Implementing the proposed strategy will involve varied and complex considerations. Many of these including crop selection, the forms in which planting material will be maintained, scale of bulking of this material and corresponding institutional capacity required, have been mentioned earlier. Other relevant considerations relate to location and coordination of activities for bulking and storing planting material, transboundary movement of propagative material and overall feasibility of the proposed strategy. 12

14 Conclusions Problems impacting Caribbean agriculture are complex and a multi-disciplinary approach is required to find solutions. To date there has been no serious attempt to include modern biotechnology in plans to tackle these problems. This is a reflection of absence of policy to promote biotechnology research and development. As pointed out earlier such a policy is necessary to create a biotechnology industry inclusive of the capacity to enable and safeguard agriculture. A policy to promote and regulate biotechnology research and development should, inter alia: establish BMCs overall policy objectives in the field of biotechnology research and development and identify policy directives to achieve these objectives; promote balance between biotechnology, the environment and social and economic development; establish standards and procedures to manage research and development in biotechnology; establish standards and procedures for facilities engaged in biotechnology research and development; identify mechanisms by which biotechnology research and development and the release of GMOs are to be regulated; identify methods by which GMOs are to be regulated, controlled and managed to support biotechnology research and development in BMCs; establish standards and procedures for registration and accreditation of facilities 13

15 for biotechnology research and development in BMCs; and identify appropriate mechanisms including economic instruments, for enforcing and implementing the policy. To date, BMCs have been unengaged in the global trend to develop modern biotechnology and have been rendered irrelevant with respect to ownership of associated goods and services in trade. As a consequence also, they lack safeguards against potential threats posed by modern biotechnology. In the case of agrobiotechnology, this situation can be partly redeemed by the Biosafety Protocol through opportunities for benefit sharing and by a strategy proposed in this talk for consolidating primary production, albeit in the face of potential threats. I hope governments with the assistance of the donor community will adopt a plan of action to address the issues raised. 14