Biotechnology, Agriculture, and Economic Growth in Paraguay

Industrial Dynamics AH2004 Professor: Kristina Nystrm

Students: Cindy Gmez Alder Oleksandr Dobrobaba

Master Program - Economics of Innovation and Growth 2nd Period 1st Semester KTH - 2010

Biotechnology, Agriculture and Economic Growth in Paraguay

Introduction1 This paper is an initial research about how biotechnology applied to agriculture affects the economy of developing countries? In order to address this broad issue, in a clear and short way, we provide two sections: one consist of GM crops in developing countries, which gives an introduction of why and how biotechnology is becoming a powerful tool for the world, why is it important to help developing countries in the development of this technology, and the international and regional regulations and agreements that organizes and guide the development and application of biotechnology in agriculture. The second section consists on a case study focused on the GM soybean production in Paraguay (South America), its economic importance, regulation related to the introduction of this type of technology in the agricultural system, and how the use of this technology has evolved since its introduction into the country in 1997. 1. Biotechnology in Agriculture - GM Crops in Developing Countries The current worlds population is over 6 billion people and increasing approximately by 80 million annually, and because most of this growth is in developing countries, this means that the ratio between developed and developing countries will tend to decrease. Therefore, the demand for food will increase by 41% for cereal between 1993 and 2020, by 63% for meat and by 40% for roots and tubers (Pinstrup-Andersen, 2001), according to the forecast made by The International Food Policy Research Institute (IFPRI). The increasing amount of food production to cover the population growth cannot be obtained from increased use of land for agricultural purposes. Almost all land, which can be used for agriculture is already in use. Moreover, it should be taken into consideration that the land is unequally distributed between farmers and multinational companies. In developing countries farm size tend to be small, and studies made by FAO showed that nearly 50% of farms are smaller than 1 hectare (FAO, 2000). Thus, it is viable to increase the amount of food per hectare (effective yields); this can be achieved by applying biotechnology in agriculture. Using biotechnology can potentially increase food output, improve nutritional specifications of food, and eventually improve living standards (Graff, Roland-Holst and Zilberman, 2006). Technology in agriculture can be used to improve different agronomic properties of crops: tolerance to herbicides, insect resistance, resistance to various deceases, and tolerance to environmental conditions, such as droughts and freezing, salinity of soils. Crops with these properties will cut production costs and give more reliable yields per hectare, as well as contribute to environmental quality by reducing use of agrochemicals. Nutritional specifications can be improved by means of biofortification (improving crops by increasing volume of vitamins, micro and macronutrients and other plant components, such as isoflavones) and by improving crops efficiency (making easier the digestion of plant fibers, shifting up energy content of crops) (Graff, Roland-Holst and Zilberman, 2006). Theory developed so far is pointing out some direct and indirect effects of biotechnology applied to agriculture. Among direct effects can be mentioned: increased production (yields per hectare), increase in sales volume due to higher yields, higher nutritious level, among others. Consequently, this technology will create the path to products with higher nutritional value, lower production costs, lower usage of chemicals, and other benefits. In regard to indirect effects an eventual reduction in the level of food prices will improve the life quality of those with low income in developing countries (Graff, Roland-Holst and Zilberman, 2006). One important aspect of the GM crops is that its properties vary depending on the conditions of the fertile soil of each country where they are sowed. For this reason, it is important to make use of GM

Biotechnology, Agriculture and Economic Growth in Paraguay seeds that are applicable in certain weather conditions, resistant to specific insects and deceases, among other factors. Importing generic varieties from abroad may not be a rational decision because foreign biotechnology might cause damages to the local biodiversity of the country. On the other hand, modifying local varieties to safeguard the biodiversity of the country demands a certain level of research activities, which most of the developing countries lacks. This leads to the importance of investments on R&D in biotechnology in agriculture. Developing low-income countries, which are among the biggest producers of crops in the world, usually have a weak agricultural science sector and infrastructure constraints, which leads to import of biotechnology seeds, creating damages to their environment (Graff, Roland-Holst and Zilberman, 2006). The sustained growth of modern agricultural biotechnology has in 2009 led to an overall area of 134 million hectares with genetically modified crops. From that total amount, 45.73 million hectares, corresponding to 34.14% of the overall area, are in countries of the Southern Agricultural Council (CAS). This region includes Argentina, Brazil, Paraguay, and Uruguay, where GM crops are permitted to be commercialized (i.e. planting, processing, human and animal consumption), and Chile, where the reproduction of vegetable material for propagation is allowed, especially seeds for export (CAS, 2010). 1.2. Research and Development of Biotechnology for Agricultural purposes Policymakers in both developed and developing countries have come to the conclusion that significant investments in research activities in agriculture are essential. But the role of government institutions, research universities and private-sector organizations involved in the research process varies among the countries (Beintema and Stads, 2010). Many of the biotechnological innovations and much of the product development research were historically done in OECD countries (Organization for Economic Cooperation and Development), while the economical and social potential of the research activities are vital for developing countries. For example, recent studies show that use of Bt cotton (which is now widely cultivated in the USA) in India and China will provide higher yields in these countries (Qaim & Zilberman, 2003). However current tendencies show that the global share of expenditures on R&D tend to decrease in developed countries, from 62 to 56% between 1981 and 2000, while consequently increasing in developing low- and middle-income countries from 38 to 44% during the same period (Beintema and Stads, 2010). Developing countries of great importance in terms of crops production are mainly concentrated in two regions: Asian-Pacific and Latin American and Caribbean (LAC). When looking more closely at these geographic regions, the following trends occur regarding R&D: In the Asia-Pacific region (not taking into account its developed countries Japan and South Korea) 6.2 billion of dollars was spent on R&D in agriculture in 2002 (in 2005 adjusted prices). China and India are responsible for almost 70% of this total (3.0 and 1.4 billion dollars respectively) (Beintema and Stads 2008a, Chen and Zhang 2010). In the LAC region 3.2 billion dollars was spent on agricultural R&D in 2006 (in 2005 adjusted prices), while most of these expenditures were done in Brazil (which accounted for 42% of the total), Argentina and Mexico. (Beintema and Stads, Avila, Fachini 2009).

As can be seen in each region there are dominant countries in terms of spending on R&D in agriculture, while other countries in the region tend to face certain constraints. In order to understand these significant differences, it would be helpful to look at the number of researchers and the role of national governments expenditure in research and development in the countries of these regions.

Biotechnology, Agriculture and Economic Growth in Paraguay

Overall it can be observed that there is an increase of employed full-time equivalent (FTE) researchers in agriculture in the countries of these two regions. In particular (Beintema and Stads, 2010): In the Asia-Pacific region, China had 80 000 FTE researchers in agriculture in 2008, which is the worlds largest number. The other 11 countries of the region had large variation in terms of number and qualification of researchers in agriculture. The share of researchers with MSc or PhD degrees was higher in South Asian countries than in Southeast Asian (where in Laos, Vietnam, Philippines and Papua New Guinea there were few well-qualified researchers). The mean value of PhD and MSc degrees in the region are 35 and 39% accordingly. In the LAC region there were 19 000 FTE researchers in agriculture in 2006, and 70% of them came from Argentina, Brazil or Mexico. The following, which are Chile, Colombia, Peru and Venezuela each accounted for roughly 4%, and the remaining countries of the region accounted for the remained 14%. During 1981-2006 there was a significant growth of the number of researchers in Argentina and Mexico, while in El Salvador, Guatemala and Honduras they experienced a negative growth because of decreased government spending on education. The share of researchers with PhD, MSc and BSc degrees was higher in Latin America than in Central America (Brazil, Chile and Uruguay had the most qualified researchers). The mean value of PhD, MSc and BSc degrees in the region are 33, 32 and 35% accordingly. (Beintema and Stads, 2010).

The government sector is the main source of funding directed to R&D in these two regions. In 2006, of total researchers, 61% from Asia and 62% from LAC region were working in the government sector, with the exception of India, where more researchers were employed in higher education than in the government sector (Echeverria and Beintema 2009). Only 7% of the funding was through donor contributions (in the form of loans and grants), mostly in countries as Laos and Nepal in Asia and Nicaragua in Latin America. Funding obtained from private and public enterprises was 7% on average, but the share tends to increase in China, Indonesia and Chile. Internally generated revenues, for instance from levies on export or production of the crops are also becoming an important source of funding in countries like Chile, Mexico, Colombia, India, China, Indonesia, Malaysia and Sri Lanka (Beintema and Stads, 2010). As another option considered, expansion of international partnership, public and private, may serve as a funding for future researches, which may lead to innovations in agriculture in developing countries. A significant example of cooperation in R&D within developing countries is the agreement signed within a joint-action plan between the government of Brazil and China for 2010-2014. The ministries of agriculture of Brazil and China agreed to: Advance high-level mutual visits and visits of agricultural experts, establish an information sharing system, strengthen cooperation on agricultural research and trade of agricultural products, host joint workshops and seminars on agricultural technologies, establish joint labs in Brazil and China, intensify cooperation on international agricultural affairs, promote mutual investments in the agricultural sector, involve financial bodies such as the China Development Bank, Banco do Brasil and BNDES in agricultural cooperation2. Research and development in general, and R&D in biotechnology, in particular, are really important not only from the point of view of future revenues, but also as a resource for human capital development. Low-income countries have difficulties in doing researches in agricultural

Biotechnology, Agriculture and Economic Growth in Paraguay field because of the insufficient levels of investment in education due to lack of prioritization of government expenditures, insufficiency of private capital due to unattractive investment climates for private investors (Graff, Roland-Holst and Zilberman, 2006). 1.3. Regulations applied to GM crops in Developing Countries Policies towards regulation of using GM crops are developed at different levels international, regional and national. This development needs to be as rapid as the evolution of biotechnology. It is difficult to retrieve it in developing countries, because they are not so active participants in international organizations and relationships. However, such countries should ensure that regulations and policies relating GM crops are being applied and that they correspond with the whole system of international governance in this field. Thus, there are some legally binding, such as international regulations regarding GM crops and non binding codes of practice. The followings should be bound: The Cartagena Protocol on Biosafety under the Convention on Biological Diversity (2000); Conventions within the UN, such as Convention on the Law of the Sea (1982), the International Plant Protection Convention (1997), the Aarhus Convention (1998), The International Treaty on Plant Genetic Resources for Food and Agriculture (2009); Agreements by the World Trade Organization (WTO), in particular Agreement on Technical Barriers to Trade (1994), Agreement on the Application of Sanitary and Phytosanitary Measures (1995); The Codex Alimentarius which is a set of international codes of practice. Set of policies regarding biodiversity safety and commercial use of GM crops in countries from the CAS (Consejo Agropecuario del Sur Southern Agricultural Council). This is a regional government network of Ministers of Agriculture of Latin America countries, which include Argentina, Brasil, Chile, Uruguay and Paraguay.

None of these instruments covers the all sectors concerned. Each regulates some part of the field and has its own scope of application. Consequently, all documents and regulations are almost of the same legal value. The legal instruments mentioned above are addressed to help developing countries to reinforce their national legislation relating GM crops, promote harmonization of national regulations as well as assist in establishing appropriate institutional structures. 2. Biotechnology and Crop Production in Paraguay - GM Soybeans production 2.1. Economic Importance of GM Soybeans in the Paraguayan Economy The cultivation of soybeans (conventional seeds) had been introduced into the Paraguayan agriculture in the 1920s. In the early 1970's, the soybean crop was established as a supplementary item to wheat production. In the mid 70s, the good development of the seeds under the local conditions and the mid-term strong world demand for agricultural commodities such as oilseeds, caused that soybean plantations shifted downwards wheat production positioning itself as one of the most important commodity for the economy (Olmedo and Heisecke, 2008). This happened as a result of making use of the comparative advantages in production and rising prices due to increase in world demand for this commodity (World Bank, 1972). The positive evolution of prices during the 70s and 80s increased the amount of land destined to produce soybeans, which at the time where intensive in the use of herbicides. These herbicides were a great part of the cost of producing soybeans.

Biotechnology, Agriculture and Economic Growth in Paraguay

During the 1980s soybean plantations expanded to such an extent that this crop became an important segment of the country's production surpassing the 500.000 hectares of sowed area. Furthermore, in the 90s, the implementation of new techniques to reduce the appearance of pests (direct sowing) and the introduction of biotechnology (GM soybean) were key factors that lead to double the sowed area with this crop. In this way, soybeans sowed area reached more than 1.200.000 hectares (Olmedo and Heisecke, 2008) by the end of the 1990s. The first international registers of GM soybeans in Paraguay, in terms of sowed hectares, are from year 2003 where the ISAAA showed a figure of zero hectares of GM soybean for this country. In 2004, there was a striking appearance of Paraguay as a GM soybean producer with 1.2 million hectares (which represented 62% of the country total soybeans sowed area in that year). Interestingly, the fact of having international figures from 2004 can be explained by the entrance of Monsanto3 into the soybean seed provision, with the Roundup Ready (RR) seeds, for the Paraguayan soybean production scheme4. In figure No. 1, it can be seen the area destined to GM soybeans from year 2004. It has grown steadily until 2008 at an average of 15% each year per year. In 2009, Paraguay was registered as the seventh largest producer of GM soybeans in the world and third in Latin America, behind Argentina and Brazil. Figure No. 1
Area Harvested with GM soybeans - Paraguay
3 2.5
Million Hectares

Area Harvested with Soybeans (Million Hectares)

Total Area Harvested of Oilseeds, Soybeans Total Area Harvested of GMO's Oilseeds, Soybeans % of Area Harvested with GMO Oilseeds, Soybeans

Year

2 1.5 1 0.5 0 2003 2004 2005 2006 2007 2008 2009

2003 2004 2005 2006 2007 2008 2009

1.55 1.94 2.00 2.43 2.43 2.65 2.55

0.00 1.20 1.80 2.00 2.43 2.64 2.20

0% 62% 90% 82% 100% 100% 86%

Source: Total area Harvested of oilseeds, soybeans USDA; Total Area of GM Oilseeds, soybeans ISAAA, 2009 Summary Report.

Paraguay - GM Soybeans

Evolution year to year

In terms of total production of soybeans crops, together these countries produced in 2009 near 45% of the worlds soybeans, with Paraguay as the sixth largest producer and the fourth largest exporter of this crop in the world5. When comparing the period 2001-2009 to the one from 1992-2000, it can be seen that there has been an important average increase in cultivated area as well as in production of soybeans of around 134,6% and 96,9%, respectively6. These important figures can be explained by the continuous rise in international prices for oilseeds which motivated producers to carry on in the business. Furthermore, the international trade figure for soybean seeds have shown a positive evolution along the same period of time 2001-2009 when compared to the period 1992-2000, with an average increase of more than 100% in terms of value (US dollars). Moreover, in the same period of time (2001-2009), the share of soybean seeds exports represented, on average, 33% of the total exports 7. In addition, the soybean product chain (composed by soybeans seeds, soybeans cakes, expeller and soybean oil) reached almost 45% of the total exports of this country. In year 2009, around 80% of the total income from foreign trade came from the primary sector (IICA, 2009).

Biotechnology, Agriculture and Economic Growth in Paraguay

The economic positive effects of the production of soybeans are not only derived from international trade. There are many other important aspects within the production of soybeans such as industrialization. Although, this activity is still in an embryonic stage, the government is supplying the regulations needed to create a favorable business climate to attract foreign investment. A recent interview with Brazilian investors provided information about the benefits in social and economic terms will help Paraguay, reducing in this way the amount of natural soybeans being exported (with low value) for manufactured goods (with added value) 8. The exports of these manufactured products from soybean seeds are, nowadays, around 13% (BCP, 2009). The soybean production chain related to foreign trade has proven to be settled in the economic system of the country (IICA, 2009). Many sectors of the economy perceive the positive impact of the existence of the soybean production chain, some of these sectors are: transport (transport system), services (agriculture and economic consulting, logistics services for harvest, among others), financial (production credit systems) (IICA, 2009). Finally, it is important to mention the magnitude that the agriculture sector have in the Paraguayan economy. On average, for the period 2004-2009, the share of Agriculture GDP in the total GDP has been around 18%. This share has increased around 4% in comparison to the period 1995-20009. In this way, the introduction of new plantation techniques and the use of biotechnology through the GM soybeans (Olmedo and Heisecke, 2008) can be some important variables which contribute to this positive change in the Agriculture GDP. 2.2. Beginning of GM Soybeans Production in Paraguay and Evolution of Regulations According to the official sources, the activities with biotechnological products in agriculture in Paraguay began in 1997 under the Decreed N 18.481/97 issued by Paraguayan Executive Power. This first regulation established the mechanisms for evaluating the introduction of the use of biotechnology into the Paraguayan agriculture as well as provided an initial regulation frame for its use in experimental fields (confined liberalization), and for future commercial applications. The latter functions are under the COMBIO (Biodiversity Commission) 10, dependency of the MAG (Ministry of Agriculture)11 (CAS, 2010)12. Before the Decreed N 18.481/97 was enacted by the government, there already existed regulations to withhold upcoming impacts of environment, fauna and flora, nature of seeds, intellectual property rights, and protected areas and consumers rights13. Despite the fact of having these regulations, adjustments and policies strengthening were needed in order to follow a good path in the introduction of this technology into the country (PROCISUR, 2001). In 1999, the MAG enacted the Resolution No. 554/99 regulating the use of GMOs in the 1999/2000 growing season. It banned commercial cultivation of soybeans, cotton and transgenic corn, but for the first time allowed the introduction of this crops for experimental purposes (PROCISUR, 2001). In regards to the liberalization of the GMOs seeds into the natural environment with experimental purposes, the Committee of Biological Biodiversity allowed Monsanto to experiment with varieties of the Roundup Ready (RR) soybean for the growing season 1999/2000 (PROCISUR, 2001). In the following years more regulations were enacted regarding not only the improvement of other aspects of biotechnology in agriculture (specifically regarding GM soybeans regulations, such as: evaluation, use, property rights, among others.) but as well those with the purpose of reinforcing previous laws, seeking to protect the environment, fauna, and flora where this technology was to be applied. Institutions like SEAM (Environment Secretary) 14, SENAVE (National service for vegetables and seeds quality and sanitation)15, SENACSA (National Service for animal quality and sanitation)16 were created to achieve part of the needs for regulations in this regard.

Biotechnology, Agriculture and Economic Growth in Paraguay In 2008 the Instituto Paraguayo de Tecnologa Agraria (IPTA)17 was created to generate, recover, adapt, validate, disseminate and transfer agricultural technology and resource management of genetics. Its functions, among others, are the generation and adoption of new technologies in agriculture, livestock and forestry18. The creation of this institute was the beginning of the real public development in biotechnological research studies. This assertion is supported due to the fact that this institute has a committee which assesses currents and future research studies; this committee is not designated politically which means its free from biased decisions; it is filled by professionals from the private sector, members of livestock and agriculture producers unions, and academics from the national university. Furthermore, in 2008 as well, the Agriculture Ministry, through the Executive Power, presented a Biodiversity Law Project to the National Congress in order to achieve a national Law frame in this respect. This Project was not approved. Nevertheless, in order to strengthen the regulations applied to the use and commercialization of GMOs in the country, the Agriculture Ministry proposed the modification and amplification of the Decreed N 18.481/97 as a means to strengthen the Biodiversity Commission functions (CAS, 2010), which led to creation of the Decreed N 12.706 which modifies the latter law. Nowadays, there are many other governmental and non-governmental institutions safeguarding different aspects of agriculture regarding the use of biotechnology in Paraguay, these institutions are the following: Instituto Nacional de Alimentacin y Nutricin INAN Ministerio de Salud Pblica y Bienestar Social MSPyBS Universidad Nacional de Asuncin UNA Faculty of Agrarian Sciences. INBIO (Instituto de Biotecnologa, NGO) 19 UGP (Union of unions of Paraguay)20

2.3. R&D and GM Soybeans in Paraguay As it has been said before, Biotechnology in agriculture has the potential to improve living standards in low-income countries. Paraguay, classified as a developing country with an income per capita of $ 2.365 (World Bank, 2009), has an important path to follow in the development of this technology in the agricultural sector. In order to achieve technological progress the use of intellectual property rights is one frequent polity applied by the governments (William, 2010) in order to create incentives for research and development (R&D) investments in the country. The latter is established under the law 385/94 about protection for new varieties of cultivars (Law 385/94). This law determined a system of two possible ways to register GMOs and organic seeds. Under the system established by the law mentioned above there could be protected cultivars (with property rights), but not authorized to be produced and then used commercially; and cultivars which are not protected (without property rights), but empowered to be produced and then be commercialized. Under this law Monsanto managed to register the first commercialized transgenic varieties of soybeans with its technology Roundup Ready (RR) in Paraguay in 2004, which were destined to be used in the agricultural year of 2004/2005 due to lack of seeds at that moment 21. The agreement between the government and Monsanto has acknowledged it a property right under the Law 385/94. Professionals from the private sector in 2004 set eyes on the importance of working in the development of more varieties applied to different types of fertile regions for agriculture in the

Biotechnology, Agriculture and Economic Growth in Paraguay country and decided to create a non-governmental organization, INBIO, to undertake professional research in agricultural biotechnology22. INBIOs aim is, specifically, to develop research in biotechnology applied to agricultural purposes as well as to provide assistance to producers (in large and small scale). Furthermore, the organization collaborates with the Academia of the National University Agrarian Science Faculty - in the development of new techniques and technology applied to crops such as soybeans, wheat, corn, sunflower, canola, and other typical crops related to the small producers such as cotton, sesame seeds, stevia, sugar cane, horticultural and fodder. INBIO also cooperates with researchers from the Agriculture Ministry and with organizations such as CAPECO (Paraguayan Chamber of Cereals and Oilseeds Exporters) 23, FECOPROD (Federation of Production Cooperatives)24 , and APROSEMP (Seed Producers Association of Paraguay)25. Some other important organizations related to INBIO are: CAP (Agricultural Coordinator of Paraguay)26 Soybean Producers Association27

The development regarding GM soybeans has shown an important evolution. Not only the numbers of varieties of soybeans have increased, but also the companies, laboratories, and international organizations related to biotechnology in agriculture (which must be registered as branch in Paraguay) have increased by patenting or registering their GM soybeans varieties in the national register in SENAVE, whether as a protected or unprotected cultivar. The number of registered protected cultivars has increased from 5 in 2004 to 28 in 2009. In relation to the cultivars register for commercialization (some of which are not register as protected) in 2004 were 7 varieties and in 2009, 11. Both these figures show a positive effect in the last 5 years in the field of biotechnology applied to agricultural purposes, taking GM soybeans as the main technological product under constant research28. Figure No. 2
Evolution GMO soybeans varieties in Paraguay - NRPC and NRCC
50 40 30 20 10
0 2002 2003 2004 2005 2006 2007 2008 2009
New varieties of GMO soybeans
Cummulative sum of new varieties

140 120 100

Units

60
40 20 0
New commercialized GMO Soybeans

Cummulative sum of new commercialized GMO Soybeans

Source: Own elaboration with data from the National Register of Protected and Commercialized Cultivars SENAVE, Paraguay, 2010.

Conclusion There has been an increase in understanding the importance of the biotechnology in the production of soybeans during the last 8 years in Paraguay. This can be seen on the creation of a governmental institution (IPTA) focused on research and development in biotechnology applied to agriculture as well as on the increase in the registered number of genetically modified seeds (GM soybeans varieties). Moreover, NGOs such as INBIO promote and motivate R&D in the sector, not only in the production area, but as well at an educational level.

Units

80

Biotechnology, Agriculture and Economic Growth in Paraguay

Furthermore, one of the main factors to achieve competitiveness and efficiency in the development of this type of technology is good regulation. The government must provide the appropriate regulations to what is to come in regard to this field. Some ways to foresee needed adjustments in regulations are through regional agreements between countries and nongovernmental organization, such as FAO, CAS, IICA, OEA and many others; as well as alliances with developed countries from which Paraguay could learn and apply from transference of knowledge. One example in the region is the agreement between Brazil and China (industrialized countries) to work together in the development of biotechnological research in agriculture. Nowadays, the Agricultural GDP accounts for nearly 20% of the total GDP in Paraguay which means that the improvement of the Paraguayan economy can be explained, to an extent, by the evolution of the agricultural sector. The fact of having found a technology which can provide more yields of production with less cost per hectare makes it one of the greatest alternatives for increasing food production in the world. In the Paraguayan case, five years have gone by since the first GM soybeans commercialized varieties were release into the production system, and in such short period of time, there are considerable economic and intellectual benefits achieved. References 1. Pinstrup-Andersen, P. (2001). The Future World Food Situation and the Role of Plant Diseases. The Plant Health Instructor. DOI: 10.1094/PHI-I-2001-0425-01. http://www.apsnet.org/publications/apsnetfeatures/Pages/WorldFoodsituation.aspx#n otes 2. FAO (2000). Food and Agriculture Organization of the United Nations Electronic Forum on Biotechnology in Food and Agriculture. Conference 1. March. 3. Graff, Roland-Holst and Zilberman (2006). Agriculture Biotechnology and Poverty Reduction in Low Income Countries. World Development. Volumen 34, No. 8, pp. 14301435. 4. Marcos Regulatorios de Biodiversidad y Situacin de las Aprobaciones Comerciales de Organismos Genticamente Modificados en los Pases del Consejo Agropecuario del Sur (CAS). Polticas Pblicas en Biotecnologa y Bioseguridad. Consejo Agropecuario del Sur. June, 2010. 5. Beintema and Stads (2010). Public Agricultural R&D Investments and Capacities in Developing Countries. Agricultural Science and Technology Indicators (ASTI). 6. Qaim and Zilberman (2003). Yield effects of genetically modified crops in developing. Science 299, pp 900-902. 7. Beintema and Stads (2008). Measuring Agricultural research investments: a revised global picture. Washington, D.C. International Food Policy Research Institute. 8. Chen and Zhang (2010). Agricultural R&D as an engine of productivity growth: the case of China. Report prepared for the UK governments foresight food and farming futures project. International Food Policy Research Institute. 9. Beintema, Avila and Fachini (2010). New developments in the organization and funding of public agricultural research in Brazil. ASTI country notes. Washington, D.C. International Food Policy Research Institute. 10. Echeverria and Beintema (2009). Mobilizing financial resources for agricultural research in developing countries: trends and mechanisms. Rome, Global forum for Agricultural Research. 11. Olmedo and Heisecke (2008). El complejo soja en la economa del Paraguay.

Biotechnology, Agriculture and Economic Growth in Paraguay 12. World Bank (1976). The Agriculture Sector of Paraguay. Report No. 933-PA. Latin America and the Caribbean Region. Country Programs II. 13. Williams, Heidi (2010). Intellectual property rights and innovation: Evidence from the human genome. MIT Department of Economics and NBER. August. 14. CAS (2010). Marcos Regulatorios De Bioseguridad Y Situacin De Las Aprobaciones Comerciales De Organismos Genticamente Modificados En Los Pases Del Consejo Agropecuario Del Sur, Cas.. 15. PROCISUR (2000). Estrategia de Biotecnologa Agropecuaria para el Cono Sur. Programa Cooperativo para el Desarrollo Tecnolgico Agroalimentario y Agroindustrial del Cono Sur IICA. 16. Bravo, Elizabeth (2005). Los Derechos de Propiedad Intelectual y los OGM. Boletn N 116 de la Red por una Amrica Latina Libre de Transgnicos. February. 17. Sector Productivo News Site. http://sectorproductivo.com/agricola/institucional/4650inbio-una-institucion-que-apuesta-por-el-desarrollo-del-pais-. 18. World Bank database http://data.worldbank.org/indicator/NY.GDP.PCAP.CD
Cindy Gmez Alder and Oleksandr Dobrobaba would like to thank the important support of the Ministry of Agriculture of Paraguay (DIA), the non-governmental organization INBIO, and many others who helped us with relevant data, information and guidance to achieve this paper. To all of you, thank you very much. 2 Joint Action Plan between the government of the Peoples Republic of China and the government of the Federative Republic of Brazil 2010-2014. 22/04/2010. 3 The Monsanto Company is a U.S.based multinational agricultural biotechnology corporation. It is the world's leading producer of the herbicide glyphosate, marketed as "Roundup". Monsanto is also the leading producer of genetically engineered (GE) seed; it sells 90% of the world's GE seeds. http://en.wikipedia.org/wiki/Monsanto. 4Information obtained from Ministry of Agriculture - Paraguay. 5The calculation has been made by the students with data from: http://www.fas.usda.gov/psdonline/psdResult.aspx. 6 The calculation for the comparison of the periods of time under analysis where done by the students with data from the Paraguayan Central Bank. 7 The calculation for the comparison of the periods of time under analysis where done by the students with data from the Paraguayan Central Bank. 8 http://www.ultimahora.com/notas/376869-Paraguay-ahora-es-atractivopara-industrializacion-de-soja 9 The calculation for the comparison of the periods of time under analysis where done by the students with data from the Paraguayan Central Bank. 10 Comisin de Biodiversidad Agropecuaria y Forestal (COMBIO). Created by Decreed N 18.481/97. 11 Ministerio de Agricultura y Ganadera (MAG). 12 According to the report from the CAS, this first regulation issued by the Paraguayan government was before the Cartagena Protocol was signed by this country. 13 Law No. 253/93 which approves the Convention on Biological Diversity, the Law No. 294/93 for Environmental Impact Assessment, Law 385/94 of Seed and Cultivar protection, the Plant Protection Law 123/91, Law No. 96/92 of Wildlife, the Law No. 352/94 of Protected Areas, Law No. 836/80 Health Code and Law No. 1334/98 on Consumer Protection and User. 14 Secretara del Ambiente (SEAM), created by Law N 1.561/2000, in 2000. 15 Servicio Nacional de Calidad y Sanidad Vegetal y de Semillas (SENAVE), created by Law N 2459/04, in 2004. This law focused in one governmental institution the application of most of the phytosanitary regulations, there were no new regulations enacted with this law. 16 Servicio Nacional de Calidad y Salud Animal (SENACSA), created by Law N 2426/04, in 2004. 17 Instituto Paraguayo de Tecnologa Agraria, created by Law N 3788/10, in 2010. 18 Information obtained from the issued law number N 3788/2010 which creates the Instituto Paraguayo de Tecnologa Agraria. 19 Instituto de Biotecnologa Agrcola (INBIO) - Institute of Agricultural Biotechnology, created in year 2004 by professional from the private sector. 20 Unin de Gremios del Paraguay, created by workers in the agricultural private sector. 21 Monsanto SA of Paraguay, through Resolution 167/04 of the Ministry of Agricultue, obtained the registration of transgenic soybeans (Glycine max (L.) Merrill): AW AW 7110 and 5581 in the Register of Protected Varieties in SENAVE. 22 Instituto de Biotecnologa Agrcola (INBIO) - Institute of Agricultural Biotechnology. 23 Cmara Paraguaya de Exportadores de Cereales y Oleaginosas 24 Federacin de Cooperativas de la Produccin. 25 Asociacin de Productores de Semillas del Paraguay 26 Coordinadora Agrcola del Paraguay 27 Asociacin de productores de Soja. 28 This analysis has been made by the students with data from the National Register of Protected and Commercialized Cultivar from SENAVE.
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