Biodiversity and Business: Coming to Terms with the 'Grand Bargain'

The Convention on Biological Diversity incorporates an exchange that has been described as a 'grand bargain' which balances the needs of both technologically and biologically endowed countries. The role of genetic resources in R&D and sales varies by industry sector, however, so it is difficult to generalize on company demand for genetic resources and fair and equitable benefit-sharing. It is important, therefore, to examine the particular features of industry R&D programmes, providers of genetic resources, and trends in benefit-sharing partnerships in specific industry sectors. This article examines markets for genetic resources, costs and duration of R&D, types of genetic resources accessed, providers of genetic resources and benefit-sharing partnerships in the pharmaceutical, biotechnology, crop protection, seed, botanical medicine, horticulture, and personal care and cosmetic industries. The article concludes that experience and 'best practice' in benefit-sharing have progressed quite significantly on a number of fronts in the past decade, including the development of corporate policies in response to the CBD. The most effective form of benefit-sharing, and realization of the ' grand bargain' envisaged by the CBD, is found through partnerships between private-sector and source-country institutions that link commercial use with sustainable development and biodiversity conservation.