BIOLOGICAL DIVERSITY - THE INTERNATIONAL MANAGEMENT OF GENETIC-RESOURCES AND ITS IMPACT ON BIOTECHNOLOGY

This paper discusses the approaches to safeguard biological diversity which were adopted at the Earth Summit. After addressing the benefits of biological diversity which are related to innovations in the biotec hnology industry, it shows that project-related support can overcompen sate for its administrative deficiencies by avoiding rent-seeking. The control of environment-friendliness can serve as an effective, althou gh insufficient second-best instrument unless a consistent compensatio n rule is found that ensures both compliance and efficiency. The paper also shows that the agreed-upon preferential access of developing cou ntries to patented biotechnological products will encounter many probl ems.