Introduction to Socioeconomic Issues

Globally, modern biotechnology is rapidly being adopted in the key sectors of health, agriculture and industry. However, its application and development in agriculture, in particular, poses a challenge to African countries in terms of how benefits can be derived from the technology while minimizing costs and potential risks to humans and the environment.

An Africa-wide needs assessment conducted by ABNE in 2008 and 2009 revealed the need for evidence-based information on biotechnology to enable countries make informed decisions on how to benefit from the technology while protecting farmers, consumers and the environment. A follow-up ABNE gap analysis on the socio-economic aspects of biosafety was quite revealing:

  • regulators lack information on the socio-economic impacts of modern biotechnology;
  • lack of a clear understanding of the meaning of socio-economic considerations in biosafety because the Cartagena Protocol on Biosafety does not define what these considerations are;
  • lack of clarity on the process of incorporating socio-economic considerations in actual decision-making. Consequently, it is unclear when socio-economic considerations are required, what information should be used for the analysis, how that analysis should be done, and by whom.

The afore-mentioned suggests the need to examine the economic implications of adopting modern biotechnology particularly in the case of African countries as they are not as advanced in the development and regulation of biotech products. This is the area where cost-benefit analysis and value judgements, based on economic implications and other factors are made (Byrne, 2004). Assessment of the socio-economic impact of a new technology is an invaluable input in regulatory decision-making. The adoption of a technological innovation implies a certain amount of risk and managing this risk is an important component of decision-making. The recognition of this resulted in the request by some national regulatory systems for the inclusion of socio-economic considerations in the biosafety decision-making process.

This inclusion stems from Article 26 of the Cartagena Protocol on Biosafety which states that:

  1. The Parties, in reaching a decision on import under this Protocol or under its domestic measures implementing the Protocol, may take into account, consistent with their international obligations, socio-economic considerations arising from the impact of living modified organisms on the conservation and sustainable use of biological diversity, especially with regard to the value of biological diversity to indigenous and local communities.
  2. The Parties are encouraged to cooperate on research and information exchange on any socio-economic impacts of living modified organisms, especially on indigenous and local communities.

Nevertheless, considerable variation exists among economic models for impact evaluation of a technology (Cohen and Komen, 1994; Paarlberg, 2008). The peculiarity of issues associated with the adoption of biotechnology will entail guidance for most African nations in the cost of regulatory compliance, taking cognizance of the nature and requirements of the various regulatory systems. As a result, the socioeconomic impact of modern biotechnology in developing countries must be considered within national contexts.

The socio-economics section of this website provides information and technical support to regulators to enable them rationalize the costs and benefits of modern biotechnology, as well as provide guidance on implementing regulations through the adoption of best practices in evidence-based decision-making. The delineation of the parameters here is for adaptation to fit the national contexts. Thus the ABNE socio-economic support system as outlined in this website will not only be responsive to the country-specific needs and concerns but note the uniqueness of each regulatory system. The ultimate goal is to provide information and analysis that will assist Member States design and implement policies and mechanisms that appropriately incorporate socio-economic considerations into biosafety decision-making.