The response of the CGIAR Private Sector Committee to the third CGIAR system review. The comments deal with the importance of CGIAR collaboration with the private sector, and the mechanisms for ensuring collaboration. They urge definitional clarity, particularly of responsibilities, and urge the creation of a central legal/policy body for areas that define the operation of the system as a whole. The Committee finds the report lacking in concrete and realistic priorities, and urges more direct attention to the problems of Africa. It believes that the private sector may provide resources to the CGIAR in cases of mutual benefit, but doubts that companies will become members.Agenda document, CGIAR International Centers Week 1998

CGIAR Private Sector Committee

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1Document No:  ICW/98/14Distribution:  GeneralDate:  October 23, 1998International Centers Week 1998October 26 - 30Washington D.C.Shaping the CGIAR’s FutureComments of the Private Sector Committeeon the CGIAR System Review ReportAttached is a Private Sector Committee (PSC) note on the CGIAR System Review.  Thesecomments follow the PSC meeting held on October 1-2, 1998.CGIAR Secretariat  •  Mailing Address: 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.  •  Office Location: 701 18th Street, N.W.Tel: (1-202) 473-8951  •  Cable Address: INTBAFRAD  •  Fax: (1-202) 473-8110  •  E-mail: CGIAR@cgnet.com or CGIAR@worldbank.org2REPORT ON THE CGIAR SYSTEM REVIEWCOMMENTS OF THE PRIVATE SECTOR COMMITTEEThe CGIAR Private Sector Committee (PSC) applauds the System-wideReview Committee for the completion of its difficult and important task.  Werecognize the difficulty of this effort in attempting to review a system that mustbe responsive to many diverse stakeholders and external political realities.The PSC also notes the importance of this initiative given the recent changeswhich are affecting the whole of the international research system a liberalizedglobal trading environment, an accelerated technological push in agriculturewhich is being largely driven by the biotechnology “revolution”, an increasingtrend towards privatization of agricultural research and the continuingrequirements to address the needs of the poor in the face of escalatingpopulation pressures and a diminishing natural resource base.As a committee that has been established to articulate the position andinterests of the agribusiness sector, the PSC has the somewhat easier task ofexamining the results of this review within the context of a more narrowlyfocused framework.  In that context, we have taken the opportunity to commenton the System Review’s results, with the ultimate hope of identifying orclarifying those issues which may pose concerns for agribusiness or whichmay offer opportunities for a more effective collaboration between the CGIARand the private sector.  To elucidate our position, we have posed the followingtopics raised by the report and have provided comments that reflect ourperspective and interests.Importance of Private Sector-CGIAR CollaborationIn commenting on this report, we believe it is important to restate ourinterest in the process and in the CGIAR system at large.  Currently, the privatesector is a major sponsor of research in agriculture and agricultural systems.The research is both applied and basic in nature, as exemplified by the recentsizable investments of companies in the area of genomics and sustainabledevelopment.  The contributions of the private sector to the contemporaryagricultural research system are significant.  Furthermore, recent trends,resulting in an unprecedented consolidation of the industry, will insure that thesignificant resources of the private sector continue to be a major force inscientific discovery.With the expanding role of agribusiness in international research comesan increasing recognition of the need to sustainably address issues of globalfood security in a manner which complements the efforts of other institutions,such as the academic and government research institutions and the multi-lateral entities, such as the CGIAR.  In short, we are a major part of the system3and, as a result, must recognize our likely impact and work to insure that thesystem, as a whole, operates in a manner which is efficient and productive.Mechanisms for CollaborationThis will require a coordinated effort among research organizationswhich addresses both technical (or functional) roles as well as a coordinationin policy areas which may ultimately impact the operating efficiency of the entireinternational agricultural research system.  From a technical perspective, the PSC recognizes the need to expanddialogue between the Private Sector the CGIAR in order to better understandrespective missions, strengths and markets.   This is particularly true for the“newer” technology areas, such as biotechnology, where the private sectorretains a distinct advantage in terms of resources and scientific progress.Continuing advances in biotechnology, which have greatly accelerated varietydevelopment and value creation, are resulting in expanded areas of researchand product focus for the private sector with the result that previously untappedor unexplored markets are becoming more attractive.  Respective marketanalysis is required to fully articulate and rationalize areas of potentialcollaboration between the CGIAR and agribusiness research entities.  Thus, inour view, a re-examination of the CGIAR’s targeted market is critical toeliminate duplication of effort and to re-direct financial resources to those areasof research or crops which are unlikely to be the focus of commercial concerns.This should ultimately ensure better access to needed technologies.With respect to policy considerations, the PSC recognizes the difficultythe CGIAR system faces, as a result of its diverse base of stakeholders,especially in those areas that are controversial, such as the development of anintellectual property rights policy.  However, it is imperative that the systemoutline an operational framework which will eliminate the areas of policyambiguity which currently plague the system and prevent more effectivecollaboration with the private sector.   In our view, a more active approach,rather than passive, is required if the system is to retain its scientific relevancein the face of a complex array of factors which are currently driving internationalagricultural research.Currently, the review does not address the CGIAR’s responsibility toadvocate policy positions that directly impact its ability to successfullyimplement its mandate.  For example, if the system recognizes an importantrole for biotechnology research in sustainable food production, it shoulddevelop system-wide positions on key policy areas that ultimately control thedelivery of biotech research products to those likely to benefit.  The CGIARsystem should articulate a clear viewpoint and operational stance oncontroversial areas to avoid further marginalization of its efforts on behalf of thepoor.4Definitional Clarity to Ensure CollaborationIn order to optimize collaboration between the CGIAR and the privatesector, definitional clarity on key areas is required to promote a commonunderstanding of mission and activities.  Areas that require clear and concisenomenclature are as follows:authority - who has it? where does authority reside within the CGIAR tonegotiate on areas of functional significance? for policy concerns? forlegal considerations?rights and responsibilities - should be defined for intellectual property;for product liability; for product stewardshipmarket segmentation - who does what? on what? and where?agricultural extension - what should the CGIAR assume?  to what extentcan it advocate on behalf of National Agricultural Research Systems(NARS)?  where can it leverage the resources of the private sector in theresearch to product to distribution continuum?Creation of a Central Legal/Policy BodyThe PSC supports any governance structure that clearly outlines or defines anoperational structure for setting policy and for negotiating agreements in an efficient andconsistent manner.  We could envision a system that allows for negotiating flexibility atthe technical level but would identify a more centralized body for those areas that defineoperation of the System at large.  At a minimum, points of contact and resources shouldbe clearly defined and obvious to those in the private sector who may have an interest incollaborating with the System.Technical Focus of the CGIAR - Relevance and Priority SettingIn our view, the report falls short of recommendations that address thecurrent relevance of the system’s crop and research focus to address globalfood security into the coming century.  Stated goals (frontier science, capacitybuilding, natural resource management and downstream development) areoverly broad and ambitious, especially given current and projected financialresources.  The PSC would strongly recommend some form of System-widetechnical priority setting which is consistent with (as previously stated) marketsegmentation, intra- and inter- Center comparative advantage and cropmandate relevance in the context of a more liberalized system for global tradein agricultural commodities and products.5Focus on AfricaIn line with the preceding point, the continual problems plaguing foodsecurity in Africa require more directed attention.  A geographical examinationof effort and funds should be considered with respect to Africa.  The CGIARshould consider its role with respect to Africa in consideration of the activities ofother bi- and multi-lateral efforts.  To what extent has the system considered itsrole from a leadership vs. implementation position?   Does it have acomparative advantage where Africa is concerned and, if so, does thatadvantage exist in the ability to focus on needed research for Africa, on aknowledge of socio-economic conditions driving agricultural productivity inAfrica, or in the area of natural resource systems management?   To whatextent can the System leverage its comparative advantage with the expertiseresident in the private sector to accelerate agricultural transformation in Africa?  A task force composed of various stakeholders could be considered toaddress the unique problems of food security in Africa.Private Sector Membership in the CGIARThe PSC believes that it is unrealistic to expect that the private sector willpay for membership in the CGIAR system and that such an expectation impliesa necessary dependence on the system which may not be rational in thecurrent political climate.  One of the strengths of the private sector lies in thecreation of value and an ability to leverage this capability to attract other entitieswhich create value.  To the extent that this situation exists within the CGIAR, itwould be reasonable to expect limited situations where the private sectorwould (and currently does) provide financial or in-kind resources in exchangefor a perceived value contribution of the system.

Comments of the Private Sector Committee on the CGIAR System Review Report

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Comments of the Private Sector Committee on the CGIAR System Review Report

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