5th trondhiem

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Published on November 29, 2007

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Biodiversity, grassroots green innovations and poverty alleviation role of institutions, initiatives and incentives :  Biodiversity, grassroots green innovations and poverty alleviation role of institutions, initiatives and incentives Anil k Gupta Sristi and Indian institute of management, ahmedabad anilg@sristi.org www.sristi.org www.nifindia.org www.indiainnovates.com Slide2:  biodiversity Modern R and D Give me a place to stand, I will move the word Poverty and biodiversity :  Poverty and biodiversity Has any global evidence emerged after 1989-1991 papers? Gupta, A.K. (1991a) "Why does poverty persist in regions of high biodiversity? : a case for indigenous property right system", Int. conf. on Property Rights & Genetic Resources sponsored by IUCN, UNEP and ACTS at Kenya, June 10-16, 1991 ; Gupta, A.K. (1991b) "Sustainability Through Biodiversity: Designing Crucible of Culture, Creativity and Conscience", International Conference on Biodiversity and Conservation held at Danish Parliament, Copenhagen, November 8, 1991. IIMA Working Paper No.1005.; Ecology, Market Forces and Design of Resource Delivery Organizations, paper prepared for International Conference on Organizational and Behavioural Perspective for Social Development, Dec. 29, 1986-January 2, 1987 also in Int. Studies in Management and Organization, 18(4) 64-82, 1989, Gupta Anil K 1997b Managing Ecological Diversity, Simultaneity, Complexity and Change:. An Ecological Perspective. W.P.No. 825. IIM Ahmedabad. P 115, 1989 Slide4:  http://www.povertymap.net/publications/doc/iucn_2004/stunting.cfm Narrow base of food basket:  Narrow base of food basket “Of the approximately 270,000 known species of higher plants, 10,000-15,000 edible species are known, of which around 7,000 have been used in agriculture, although only a few hundred are deemed to be important at a national level. Thirty crop species alone provide an estimated 90% of the world population’s calorific requirements, with wheat, rice, and maize providing about half the calories consumed globally. Although several hundred species of animals have been used for human food at one time or another, 14 species of livestock currently account for 90% of global livestock production”. Source:http://www.unep-wcmc.org/latenews/Biodiversity%20and%20Poverty%20Reduction%20UNEP-WCMC.pdf Also see, poverty and biodiversity linkage http://www.undp.org/biodiversity/biodiversitycd/BioBrief1-poverty.pdf 2006 Climate change, poverty, biodiversity:  Climate change, poverty, biodiversity “Overwhelming scientific evidence implicates greenhouse gases generated by human activity in changing the global climate. Simultaneously, record numbers of people subsist in poverty and massive biodiversity losses continue largely unabated. Making matters worse, these challenges reinforce one another. Climate change can exacerbate poverty and accelerate biodiversity loss. Poverty often forces local people to exploit their environment unsustainably. And degraded environments in turn can contribute to poverty and hasten climate change”. First ever standards linking climate change, biodiversity and poverty seek global peer review, 08.06.2004, http://www.innovations-report.de/html/berichte/umwelt_naturschutz/bericht-30050.html Process::  Process: The biodiversity is high in the rain forests, mountains, some of the arid and semi arid areas, humid areas, primarily due to diversity in soil, climate and other physical and social structures. Slide8:  Why do markets for diversity not arise? ( except wine, cheese, honey to some extent) Can innovations help? Why demand for diverse colors, tastes, shapes and qualities of natural products not exist?.:  Why demand for diverse colors, tastes, shapes and qualities of natural products not exist?. Markets are ruthless:  Markets are ruthless is manual always better than machines?:  is manual always better than machines? Mead beer Wine : fermentation of flavours Mead source, south africa : http://iqhilika.co.za/index.htm Slide16:  Products of mass consumption particularly when processed by machines have low variability because throughput by machines has to be of uniform quality and maturity level ( for instance for processing tomatoes to make ketchup, local varieties will not be suitable because these are not synchronous in maturity, have uneven ripening status and thus, taste, color and flavour can not be standardized). Slide17:  The cost of inventory, transportation, display in shelves of a large varieties of say tomato is obviously quite high compared to only one or few varieties. Consumers who do not demand larger varieties either because they have not been exposed to the same or are unwilling to pay the extra costs, also contribute to lower demand of biodiverse products. Bread, beer and wine: Saccharomyces cerevisiae diversity reflects human history, JEAN-LUC LEGRAS, DIDIER MERDINOGLU, JEAN-MARIE CORNUET,RANCIS KARST, Molecular Ecology, 16 (10) 2091-2102, May 2007 :  Bread, beer and wine: Saccharomyces cerevisiae diversity reflects human history, JEAN-LUC LEGRAS, DIDIER MERDINOGLU, JEAN-MARIE CORNUET,RANCIS KARST, Molecular Ecology, 16 (10) 2091-2102, May 2007 Fermented beverages and foods have played a significant role in most societies worldwide for millennia. To better understand how the yeast species Saccharomyces cerevisiae, the main fermenting agent, evolved along this historical and expansion process, we analysed the genetic diversity among 651 strains from 56 different geographical origins, worldwide. Their genotyping at 12 microsatellite loci revealed 575 distinct genotypes organized in subgroups of yeast types, i.e. bread, beer, wine, sake. Some of these groups presented unexpected relatedness: .However, up to 28% of genetic diversity between these technological groups was associated with geographical differences which suggests local domestications. Focusing on wine yeasts, a group of Lebanese strains were basal in an FST tree, suggesting a Mesopotamia-based origin of most wine strains. In Europe, migration of wine strains occurred through the Danube Valley, and around the Mediterranean Sea. An approximate Bayesian computation approach suggested a postglacial divergence (most probable period 10 000–12 000 bp). As our results suggest intimate association between man and wine yeast across centuries, we hypothesize that yeast followed man and vine migrations as a commensal member of grapevine flora. Five key lessons from the experience of honey bee network :  Five key lessons from the experience of honey bee network a) Building a regional, national, and international registry of traditional knowledge and innovations based on biodiversity  may help in reducing transaction costs of the potential entrepreneurs, investors, fellow learning communities and even traders; Slide20:  Innovations and traditional knowledge Investment Enterprise GOLDEN TRIANGLE OF CREATIVITY Transaction costs :  Transaction costs Searching information: biodiversity leads, opportunities for investment, value addition finding suppliers negotiation Drawing up a contract Ex -ante Ex -poste Monitoring and enforcing compliance Side payments Conflict resolution Redrawing the contract if nothing else works Slide22:  How do we share the benefits? How to reward: Portfolio of Incentives for farmers’ innovations:  How to reward: Portfolio of Incentives for farmers’ innovations Forms of incentives Material non material Target Of individual Incentives collective Slide24:  b) Compliance with the Prior Informed Consent of the communities to respect their knowledge rights for eventual benefit sharing, keeping in mind the share of not only individual knowledge holders, but also their communities, nature conservation, and the ones who add value and augment innovations/ Traditional knowledge etc., in a transparent manner; Slide25:  c) pooling the best traditional practices and grassroots innovations where necessary to develop new natural products for diffusion through commercial and non commercial channels. These could be through small and medium scale enterprises, having benefit sharing contracts with small or medium scale corporations; even large corporation, cooperatives and other forms of economic initiatives Horizontal markets :  Horizontal markets d)development of lateral or horizontal markets instead of reliance only on verticals; so that many of the self help micro finance groups move towards micro-venture finance based entrepreneurial groups ( we have heard a great deal about micro finance, when did we last hear about micro venture finance? ) , e) Open source technology banks as well as IP protected knowledge base to support livelihood options of disadvantaged communities:  e) Open source technology banks as well as IP protected knowledge base to support livelihood options of disadvantaged communities . In order to pursue these objectives, SRISTI has organized Traditional Food Festivals, Shodh Yatras (walk through the villages every summer and winter, so far we have walked about 4,000 km in India), natural product development in Sadbhav-SRISTI-Sanshodhan -laboratory, create demand for richer and diverse food of poor people in urban areas to create market and non market based models of poverty alleviation and sustainable resource use practices. Slide28:  Recipe competitions Traditional food festival Shodh yatra : learning walk, 19th walk in Jammu and kashmir, June, 2007:  Shodh yatra : learning walk, 19th walk in Jammu and kashmir, June, 2007 Slide31:  Local Knowledge: Global Institutions Why should local knowledge experts disclose their knowledge to institutional experts Asymmetry in standards of IP protection :  Asymmetry in standards of IP protection organized sectors vis a vis unorganized sectors of knowledge knowledge produced in long past and the one developed in recent past Knowledge , innovations and practices produced by individuals vis a vis by communities Slide33:  How does one address the tensions in dealing with public, community and private proprietary knowledge around local community, public and privately managed biodiversity resources? Resource right regimes Slide34:  1) Protection of Traditional Knowledge Within the Traditional knowledge systems, there are innovations and improvements by individuals and communities which need protection so that potential investors can have incentives to invest and recover one’s investments. IF TRADITIONAL KNOWLEDGE is public domain, then there is no reason for any exploiter of this knowledge with in or outside the country to have obligation to compensate or reward the knowledge provider. Further, the TKs in many cases when blended with modern science and technology can generate immensely valuable solutions for societal problems and opportunities for improving livelihood opportunities for knowledge holders. Another very important ethical, moral and institutional issue is as to why should traditional knowledge holders be expected to disclose their knowledge to national research institutions when these institutions can not protect their rights? See the Experience of National Innovation Foundation, India ( www.nifindia.org ) Ethical correction required in knowledge economy lessons of honey bee network:  Ethical correction required in knowledge economy lessons of honey bee network All university and research institute scientists in developing and developed countries, working on Traditional knowledge must be advised to use PIC form ( see www.nifindia.org ) so that they do not publish the results of their research without complying with the following guidelines (a) share it back with the knowledge holders and providers in local language, (b) take prior informed consent of the traditional knowledge holders, and Slide36:  (c) ascertain uniqueness of their results so that intellectual property rights protection opportunities are not missed. (d) feel obliged to share part of their pecuniary gains if any, through the licensing of such technologies produced through value addition in traditional knowledge, back with the specific communities or a national or international fund. Slide37:  (e) help in managing this fund may be managed by non-bureaucratic body responsible for sharing it fairly and without much transaction costs with traditional knowledge holders. (f) change the guidelines of AAAS, SSRC of developed countries and other research bodies around the world urgently to reflect this ethical correction. (g) develop collecting society model developed for music for reducing transaction costs of the knowledge holders Slide38:  Every patent applicant is obliged to disclose whether the resource and/or knowledge obtained from third parties for developing the patent claims have been obtained lawfully and rightfully. The ‘lawful’ access would imply that whatever laws exist in the source countries, have been complied with. The ‘rightful’ would imply that the prior informed consent of the knowledge providers has been obtained. Disclosure requirement in patent applications Slide39:  International registry of sustainable technological innovations and traditional knowledge SRISTI (Society for Research and Initiatives for Sustainable Technologies and Institutions) had made a proposal for INSTAR (International Network for Sustainable Technology Applications and Registration) in 1993. The purpose is to provide a low transaction cost system to innovators and traditional knowledge holders to obtain worldwide protection and have incentives for disclosure. Traditional knowledge holders in many developing countries which do not have capacity to set up such systems in next decade or two would suffer if such a registry was not there In TRIPS there is a provision for an international registry to be negotiated for wines and spirits. There is no reason why such a negotiation should only concern itself with the interests of a particular European country at whose behest, this clause was incorporated in the TRIPS. [1] National and international registry systems have been proposed to incorporate the elements of innovation patent system so as to provide incentives to local communities, herbalists and developers of plant varieties to share their knowledge without forgoing the benefits possible through intellectual property protection. The issue still remains as to whether knowledge produced over a long period of time through cumulative contribution of communities in a given region should get only a short duration protection and that too with limited claims. There are several other reasons why a registry may help the innovators and TK holders even if with shorter duration protection: Slide40:  the possibility for potential investors, entrepreneurs and R and D partners to seek collaboration with innovators and TK holders would be very low if they did not have access to registry which would reduce transaction costs (TC) in the process, the possibility of willing partners filing joint IPRs for longer duration may also be low if the registry was not there, the technological obsolescence factor being high, many leads might not have much value if not explored within ten years any way, the possibility of learning from one another might increase if there was a registry. Many times this goal gets neglected in the debate and to us in Honey Bee network, lateral learning among the local innovators and communities is a central concern. Surviving collectively is some thing that registry can facilitate. The cost of filing patent can be very high. For example, a US patent application in 90s could be about 20,000 USD while in EU, it could cost twice that amount. However, this cost varies a great deal and in thirty two countries it was found to vary from USD 355 to 4772 in 1990s (Helfgott, 1993). We need to devise ways of reducing these costs for small innovators and traditional communities. INSTAR, an international registry might offer one way. Grassroots to global( G 2 G), new mantra :  Grassroots to global( G 2 G), new mantra So far the globalisation has meant generally squeezing of spaces for small innovators and entrepreneurs. It has been by and large a one-way street. The Honey Bee Network has been trying to reverse this process. It is trying to create a new ethics and institutional culture in which grassroots innovations developed by often uneducated or less educated or valorised to address global as well as local demands. Already the innovative products from Indian grassroots have reached five continents. But, a great deal remains to be done. Poor not just as consumers alone, but as providers:  Poor not just as consumers alone, but as providers the mechanism of mentoring small, scattered and disconnected innovators without access to much education, banking or communication systems is not easy. Distributed mentoring is a challenge that we have to meet, if Grassroots to Global (G2G) has to become an international reality. In other words, if triangle of linking innovation, investment and enterprise has to be formed across the world, then transaction costs of each actor will have to be reduced considerably using on-line and off line platforms (see Tianjin declaration, China, May 31, 2007, www.sristi.org). Assume that a Norwegian entrepreneur selects an innovation from India and wants to set up an enterprise in South Africa with investment from say, US, then a G2G model would have come about. Likewise, if entrepreneurs in developed countries can find applications for ideas of grassroots innovators in third world, then a poverty alleviation model will emerge which would look at poor as provider of solutions. Diversity, development, dignity will manifest when ethics, equity, excellence, efficiency, empathy, environment and education fuse. Sristi’s Formula of sharing of benefits:  Sristi’s Formula of sharing of benefits Innovator 30 per cent Nature 05 Community 05 Innovation Fund 20 ( to help other healers, Herbalist, innovators) Research & Field Trials 15 Overhead expenses 15 Contingency Fund 05 Women knowledge promotion Fund 05 Total 100 composition:  composition Herbavate Cream Composition 1Each 10 gm contains;1Oil extract equivalent to: 1Calotropis gigantea (Aak). :4gm,. Curcuma longa (Haldi). :0.5gm,. Pongamia glabra (Karanja). :0.1gm,. Solanum xanthocarpum (Kantakari). :0.2gm,. Camphor (Kapoor). :2% w/w,. Apricot oil. :0.04ml,. in a cream base All ingredients have proven efficacy in Ayurveda. Mind to market: the case of herbavate :  Mind to market: the case of herbavate Herbvate: a skin ointment :  Herbvate: a skin ointment Herbavate s based on the knowledge of seven innovators from six districts Sabarkanth, Panchmahal, Dang, Mahsana, Patan and Bhavnagar of Gujarat. Herbavate exhibits remarkable properties against eczema and variety of inflammatory and infectious skin conditions. The innovators of Herbavate: 1. Amratbhai Shankarbhai Rawal, Mehsana Gujarat. 2. Kunjubhai Kakadiyabhai Bhoya, Dang Gujarat 3. Pujabhai Dabhi, Sabarkantha, Gujarat 4. Karshanbhai Parmar, Sabarkantha Gujarat 5. Laxmanbhai Pagi, Panchmahal, Gujarat 6. Lilabhai Rawal, Patan Gujarat 7. Lakhabhai Becharbhai Khatana, Bhavnagar Gujarat Growth pr0moters:  Growth pr0moters Technology developed by sristi lab by pooling local knowledge of farmers and herbalists licensed to Matrix agro-chemicals Raw materials sourced form people Benefits to be shared during dec 1-4, 2007 What can be done with it?:  What can be done with it? Slide50:  Summing up: What is the resource in which poor are rich? knowledge, values, ethics Slide51:  What do we do: Document, valorize, pool the best practices, develop new products and take these to social and economic markets Slide52:  Benefits sharing will take place only when value is added and markets are made to work in favour of poor Honey bee network has shown, it is possible Journey of augmenting grassroots innovations continues :  Journey of augmenting grassroots innovations continues Creativity counts Knowledge matters Innovations transform Incentives inspire Join honey bee network, help creative knowledge rich economically poor people learn from each other honeybee@sristi.org www.sristi.org www.nifindia.org www.indiainnovates.com Gian.org

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