Institut für Lebensmittel- und Ressourcenökonomik der Rheinischen Friedrich-WilhelmsUniversität zu Bonn

AN EMPIRICAL INVESTIGATION INTO THE FACTORS CRITICAL TO THE
EFFECTIVENESS OF ABS IMPLEMENTATION AT THE NATIONAL AND
INTERNATIONAL LEVELS

Inaugural-Dissertation
zur
Erlangung des Grades
Doktor der Agrarwissenschaften
(Dr.Agr.)
der
Landwirtschaftlichen Fakultät
der
Rheinische Friedrich-Wilhelms–Universität
zu Bonn

vorgelegt am 26.11.2014
Sem T. Shikongo
aus
Luderitz, Namibia


Supervisor:

Prof Dr. Karin Holm-Müller

Co-Supervisor:

Prof Dr. Thomas Heckerlei


einen polyzentrischen Ansatz für die ABS-Implementierung zu wählen, der sich auf die
Erfahrungen des institutionellen Lernens gründet. Dieser Ansatz betont, dass die
Implementierung des Protokolls nur dann erfolgreich sein kann, wenn die Privatwirtschaft
sowie indigene und lokale Gemeinschaften in den Prozess eingebunden werden.
Die Namibische Fallstudie zeigt die Nützlichkeit der identifizierten kritischen Faktoren und
Indikatoren für die Beurteilung von ABS Implementierung. Für Namibia wurde diese
Entwicklung als klar positiv eingeschätzt. Die Ergebnisse der Fallstudie können zur Gestaltung
einer angemessenen ABS-Politik sowie zur Optimierung ihrer Durchführung beitragen.

III


ABSTRACT
The research presented in this thesis firstly investigates critical factors for assessing the
effectiveness of existing Access and Benefit Sharing (ABS) instruments at the national and
international levels with respect to the effective implementation of the associated goals in line
with Article 15 of the CBD. The analysis and identification of indicators for the critical factors
took place within the theoretical framework of New Institutional Economics (NIE).
A global stakeholder survey on the necessary conditions for effective ABS instruments
implementation confirmed the importance and validity of the theoretically derived critical factors
and their indicators. Besides, it was confirmed that national ABS policy and implementation
respond to dynamic internal and external factors like political pressure, changing market
demand, new competitors, new scientific findings, technology innovations, criticism from
NGOs, industry, media, governments as well as legal changes.
The study also looked at the question as to whether institutional learning was observed during
the negotiation of the Nagoya Protocol. This was confirmed given that different innovative
processes were used to transcend some of the blockages that blocked fluidity in negotiations
and one can thus indeed speak of a significant learning process during the negotiations of the
Nagoya Protocol. Based on the insights from the findings, a polycentric approach to ABS
implementation is suggested, importantly involving both the private sector and indigenous and

support, especially in the final stages of the work and write up process, as well as for
encouraging me to finish.

A special thanks to my friend Dr. Nortin Titus for his comradeship and encouragement
throughout this long walk and my friend Heinrich Appies.

Many thanks to my colleagues at the Directorate of Tourism in the Ministry of Environment and
Tourism and the other Ministry Staff for their support and continuous encouragement.

I am indebted to my good friends and fellow ABS Warriors who stood beside me through all
this time in particular, Mr. Pierre du Plessis, Olivier Rukondo, Leontine Crisson, Kabir Bavikate,
Cyril Lombard, Andreas Drews, Konrad, Uebelhoer, Suhel Al Janabi and his family, Toivo
Uahengo. I salute you all.

I would like finally to express my gratitude to my entire family especially my mum Frieda N
Shikongo, my daughter (Nelago), Aino Shipuata, Elia, Kabi, Leonard, Uncle Vatie, Imke,
cousins, uncles, aunties and all my friends for their support over the years, their guidance, their
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understanding and for allowing me to be gone from home for long periods especially over
festive seasons to be in Germany and for believing in me.

I dedicate this work to one who inspired me, gave me the way and showed me that there is
always a way, this too shall pass, my name sake Dr. Shafishuna Nujoma, Founding Father of
the Republic of Namibia.

It is further dedicated to my friends who have gone over the great divide and who I know stood
with me through many hardships: My father Jonas Haufiku, the late Mr. Peter Kirsten, Mr. Job
Plaaitjies, Mr. Johannes Amuthenu, Mr. Enock Boet Jantje, Herman Weitzel, Vidette

1.7 STUDY OVERVIEW ................................................................................................... 39
1.7.1 Research Approach and Structure of the Thesis .................................................. 39
CHAPTER 2 ......................................................................................................................... 42
THEORETICAL FRAMEWORK OF THE STUDY ................................................................. 42
VII


2.1 INTRODUCTION ........................................................................................................ 42
2.2 THE RELEVANCE OF NIE FOR ABS......................................................................... 44
2.2.1 Property Rights Theory ........................................................................................ 45
2.2.2 Principal Agent Theory (Formal Contract Theory) ................................................ 46
2.2.3 Transaction Costs Economics .............................................................................. 51
2.2.4 Social Capital and its Relevance to ABS .............................................................. 54
2.2.5 Effectiveness and Efficiency of ABS Instruments from an NIE Perspective .......... 55
2.2.6 Efficiency and its Relevance to ABS .................................................................... 56
2.2.7 Legitimacy and ABS............................................................................................. 57
2.2.8 Legitimizing Authority at the level of Governance ................................................. 57
2.2.9 Legitimizing Coercive Power at the Level of Institutional Environment ................. 58
CHAPTER 3 ......................................................................................................................... 60
LITERATURE REVIEW: BIOPROSPECTING THE ISSUES ................................................ 60
3.1 INTRODUCTION ........................................................................................................ 60
3.2 BIOPROSPECTOR DEFINED .................................................................................... 61
3.3 INTERNATIONAL RESPONSE TO REGULATE ABS: THE CBD AND THE
NAGOYA PROTOCOL ON ABS ....................................................................................... 62
3.4 THE MARKET FOR BIOPROSPECTING ................................................................... 63
3.5 THE LINK BETWEEN BIOTECHNOLOGY AND BIOPROSPECTING ........................ 67
3.6 THE NAGOYA PROTOCOL ON ACCESS AND BENEFIT-SHARING AND ITS
LINK TO BIOPROSPECTING........................................................................................... 68
3.6.1 The Core Elements of the Nagoya Protocol ......................................................... 70
3.6.2 Access ................................................................................................................. 70

4.2.1.2 The Australian Case ......................................................................................... 80
4.2.1.3 The South African Case .................................................................................... 82
4.3 EFFECTIVE IMPLEMENTATION OF THE NAGOYA PROTOCOL ............................. 84
4.3.1 Need for Legal Clarity, Transparency and Certainty ............................................. 88
4.3.1.1 Use of the Definition of Genetic Resource as provided for by the Protocol ........ 89
4.3.1.2 Use of the Definition of the Concept of Utilization of Genetic Resources ........... 89
4.3.1.3 Supporting ABS Complying Users to Minimize the Challenge of NonCompliance................................................................................................................... 89
4.3.1.4 Measures for Dealing with Benefits Arising ....................................................... 90
4.3.1.5 The Use of Primary Legal Vehicles of Access to Genetic Resources ................ 90
4.3.1.6 Assurance of Contractual Certainty ................................................................... 91
4.3.1.7 Industry Standards ............................................................................................ 91
4.3.1.8 Clear Basic Commercial and Administrative Rights on the Provider Side .......... 91
4.3.1.9 Compliance Measures ...................................................................................... 92
4.3.1.10 The Use of Model and Default Clauses ........................................................... 93
4.3.1.11 Incentive Measures in both Provider and User Countries ................................ 93
4.3.1.12 Measures to Ensure Equity and Equality ......................................................... 93
4.3.1.13 User-Side Approaches .................................................................................... 93
4.3.1.14 Provider Side Approaches .............................................................................. 94
4.3.1.15 Informational Mechanisms .............................................................................. 94
4.3.1.16 Use of an ABS Clearing House Mechanism (CHM) ......................................... 94
4.3.1.17 National Decision-Making Procedures ............................................................ 95
4.3.1.18 Information on Evidentiary Rules .................................................................... 95
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4.3.1.19 ABS Ombudsman ........................................................................................... 95
4.3.1.20 Communication Processes and Strategies and Disclosure Requirements....... 95
4.3.1.21 Enabling Bilateral Action ................................................................................. 95
4.4 CONCLUSION............................................................................................................ 96
CHAPTER 5 ......................................................................................................................... 98

6.2 CRITICAL FACTORS DERIVED FOR THE STUDY ................................................. 108
6.2.1 List of Critical Factors ........................................................................................ 108
6.3 THE ONLINE ABS SURVEY - RESULTS ................................................................. 109
6.3.1 Demographics.................................................................................................... 109
6.3.2 The Definition of the Effectiveness of Domestic ABS Administrative, Policy
and Legal Framework ................................................................................................. 110
6.3.3 The Types of User Firms Involved in the ABS market ........................................ 111
6.4 RESULTS AND DISCUSSIONS FOR THE FACTOR ANALYSIS ............................. 111
6.4.1 Theoretical Underpinning for Factor Analysis on ABS ........................................ 111
6.4.2 Assumption Testing for Factor Analysis ............................................................. 112
6.4.3 Type of Factor Analysis: Principal Component Analysis ..................................... 112
6.4.4 Number of Factors and Items Removed............................................................. 113
6.4.5 Rotation Method ................................................................................................ 114
6.4.6 Factor Loadings ................................................................................................. 114
6.4.7 Labeling of Factors Derived ............................................................................... 115
6.5 THE INDICATORS DERIVED FOR THE CRITICAL FACTORS ............................... 115
6.5.1 Indicators for Good Governance Structure as a Critical Factor .......................... 115
6.5.2 Indicators for the Assignment of Intellectual Property Rights as a Critical
Factor ......................................................................................................................... 118
6.5.3 Indicators for Non-Complex Administrative Structure as a Critical Factor ........... 121
6.5.4 Indicators for Time Lags to Benefits as a Critical Factor .................................... 125
6.5.5 Indicators for Information Assymetry as a Critical Factor.................................... 128
6.5.6 Indicators for the Efficient Understanding of the ABS Market Structure as a
Critical Factor ............................................................................................................. 132
6.5.7 indicators for Valorisation of Biodiversity as a Critical Factor ............................. 138
6.5.8 Indicators for Measures to Build (Trust) Social Capital as a Critical Factor ........ 142

XI




XII


7.4.2 Non-Continuity of Key Negotiators and Characteristics of the Key Negotiators
................................................................................................................................... 179
7.4.3 Use of Language and Ways of Communicating ................................................. 179
7.4.4 Blocking of Movement in One Forum to Await Perceived Progress in Another ... 180
7.4.5 Innovation and Adaptive Management of the Negotiating Process for the
Nagoya Protocol ......................................................................................................... 180
7.4.6 A New Way of Interaction for ABS Implementation ............................................ 188
7.5 CONCLUSION AND RECOMMENDATION .............................................................. 191
CHAPTER 8 ....................................................................................................................... 193
AN ASSESSMENT OF NAMIBIA AS A CASE STUDY, AND ITS UTILISATION OF THE
CRITICAL FACTORS IN RELATION TO ABS .................................................................... 193
8.1 INTRODUCTION ...................................................................................................... 193
8.2 OBJECTIVE OF THE STUDY ................................................................................... 194
8.2.1 Specific Objective 1 ........................................................................................... 194
8.2.2 Specific Objective 2 ........................................................................................... 194
8.3 LITERATURE REVIEW - THE EVOLUTION OF ABS IN NAMIBIA ........................... 194
8.3.1 ABS in Context - Key Concepts of ABS in the Namibian Context ....................... 194
8.3.2 The Namibian Response to ABS........................................................................ 196
8.3.3 The Namibian National Biodiversity Strategy and Action Plan and ABS
Implementation ........................................................................................................... 197
8.3.4 Development of Namibia’s ABS Legal Framework ............................................. 201
8.3.5 Emergence of a National Approach towards ABS .............................................. 203
8.3.6 Assessing the Effectiveness of Namibia’s ABS Legal Framework ...................... 206
8.4 METHODOLOGY ..................................................................................................... 209
8.4.1 Introduction ........................................................................................................ 209
8.4.2 Literature review ................................................................................................ 209

8.7.2.1 Effective, Functional and Non-Complex Administrative Structure/Framework
is in Place ................................................................................................................... 241
8.7.2.2 Institutional Efficiency and Administrative Efficiency ....................................... 243
8.7.2.3 Discussion of Indicators Derived for this Critical Factor ................................... 244
8.7.2.4 Addressing or Accounting for Time Lags to the Generation and Sharing of
Benefits ...................................................................................................................... 245
8.7.2.5 Discussion of the Indicators Derived for this Critical Factor ............................. 246
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8.7.2.6 Summarizing Remarks for Phase 2 ................................................................. 247
8.7.3 Phase 3: Informed Decisions On ABS And Its Marked 15 Years After
Independence ............................................................................................................. 248
8.7.3.1 Efficient Understanding of The ABS Market Structure within which the
Transaction Must Take Place ..................................................................................... 248
8.7.3.2 Discussion of the Indicators Derived for this Critical Factor ............................. 250
8.7.3.3 Presence of an Effective and Functional Biodiversity Valorization Strategy
at National Level ......................................................................................................... 251
8.7.3.4 Discussion of the Indicators Derived for this Critical Factor ............................. 252
8.7.3.5 Summarizing Remarks for Phase 3 ................................................................. 253
8.7.4 Phase 4: Current State Of Affairs With ABS (2005 – 2012) ................................ 253
8.7.4.1 Effective Measures to Address Information Asymmetry in the ABS
Implementation Framework ........................................................................................ 253
8.7.4.2 Discussion on the Indicators Derived for this Critical Factor ............................ 254
8.7.4.3 Presence of Effective and Efficient Measures to Build Trust (Social Capital)
Amongst Stakeholders ................................................................................................ 255
8.7.4.4 Discussion on the Indicators Derived for this Critical Factor ............................ 256
8.7.4.5 Summarizing Remarks for Phase 4 ................................................................. 256
8.7.5 The Internal and External Factors That Impact On The Critical Factors As
Derived From The Global Survey On ABS. ................................................................. 258

Appendix 5 Factor Analysis Results Addressing Or Accounting For Time Lags To The
Generation And Sharing Of Benefits................................................................................... 331
Appendix 6 Factor Analysis Results Efficient Understanding Of The ABS Market
Structure Within Which The Transaction Must Take Place ................................................. 334
Appendix 7 Factor Analysis Results Presence Of An Effective And Functional
Biodiveristy Valorization Strategy At National Level ............................................................ 337
Appendix 8 Factor Analyais Results Effective Measures To Address Information
Asymmetry In The ABS Implementation Framework Are In Place ...................................... 340
Appendix 9 Factor Analysis Results Presence Of Effective And Efficient Measures To
Build Trust (Social Capital) Amongst Stakeholders ............................................................. 343
Appendix 10 Factor Analysis Results For An Effective And Functional Biodiveristy
Valorization Strategy At National Level ............................................................................... 346
Appendix 11 Factor Analysis Results For The National And International Levels
Indicating Whether Crticial Factors Are Valid ...................................................................... 349
Appendix 12 Factor Analsys Results Of Internal And External Factors That May Impact
On ABS Implementation ..................................................................................................... 353
XVI


Appendix 13 Questionnaire for the Namibian Case Study on ABS ..................................... 357
Appendix 13 ABS Excerpts From The Namibian National Biodiversity Strategy And
Action Plan (NBSAP) .......................................................................................................... 362

XVII


LIST OF TABLES
Table 2.1:

Property Rights Theory and its relevance to ABS


Use of legal tools

Table 5.1:

Technical details of the face-to-face expert interviews that preceded the online
survey

Table 5.2:

Technical details of the online ABS global survey

Table 5.3:

Type of data calculated by Kendall’s tau-b

Table 5.4:

Type of data calculated by Kendal tau-c

Table 5.5:

The technical details of the online ABS global survey

Table 5.6:

The statistical measures applied in the evaluation of the online survey

Table 6.1:



Table 6.9:

Indicators for measures to address time lags to the generation of benefits

Table 6.10:

Indicators for measures to address information asymmetry

Table 6.11:

The various stakeholders who participated in the ABS Negotiations and their
respective interests

Table 6.12

Indicators for efficient understanding of the ABS market structure

XVIII


Table 6.13

Indicators for measures to address valorization of biodiversity in provider
countries

Table 6.14

Indicators for measures to build trust amongst stakeholders in the ABS game



Results for Phase 2

Table 8.6:

Results for Phase 3

Table 8.7:

Results for Phase 4

Table 8.8:

Assessment of good governance structure in both provider-and user-countries
based on derived indicators

Table 8.9:

Assessment of assigning property rights and intellectual property rights based
on derived indicators

Table 8.10:

Assessment of administrative structure/framework based on derived indicators

Table 8.11:

Assessment of accounting for time lags to the generation and sharing of
benefits based on derived indicators


Table 8.18:

Cases of genetic resources that have been of interest and that have been
processed in Namibia
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Table 8.19:

Analysis of Material Transfer Agreements in Namibia over a period of five years
(2012 – 2008)

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LIST OF FIGURES
Figure 5.1

The model for Principal Component Analysis

Figure 5.2

The Factor Analysis Process

Figure 8.1

The Namibian Pipeline Approach

XXI



Appendix 8:

Factor analysis results presence of an effective and functional biodiversity
valorization strategy at national level

Appendix 7:

Factor analysis results effective measures to address information
asymmetry in the ABS implementation framework are in place

Appendix 8:

Factor analysis results presence of effective and efficient measures to build
trust (social capital) amongst stakeholders

Appendix 9:

Factor analysis results for an effective and functional biodiversity
valorization strategy at national level

Appendix 10:

Factor analysis results for the national and international levels indicating
whether critical factors are valid

Appendix 11:

Factor analysis results of internal and external factors that may impacts on
ABS implementation

EU - European Union
GATT - General Agreement on Tariffs and Trade
GIZ - German Agency for Technical Cooperation
GR- Genetic Resource
GRID - Genetic Resources Information Data Base
IA - Institutional Arrangement
IBPC - Interim Bioprospecting Committee
ICEMA - Integrated Community Based Ecosystem Management Project
IE - Institutional Environment
INP - Indigenous Natural Product
IR - International Regime
IRC - Internationally Recognized Certificate
IPR - Intellectual Property Rights
IPTT - Indigenous Plant Task Team
ITPGRFA - International Treaty Plant Genetic Resources for Food and Agriculture
JHB - Johannesburg
LIC’s - Local and Indigenous Communities
MAT- Mutually Agreed Terms
MAWRD - Ministry of Agriculture Water and Rural Development
MET - Ministry of Environment and Tourism
XXIII


MEAs - Multilateral Environmental Agreements
MTAs - Material Transfer Agreements
NIE - New Institutional Economics
MOU - Memorandum of Understanding
NAC - National Competent Authority
NAD - Namibian Dollar
NBRI - National Botanical Research Institute

It changes them
Changing people, it transforms everything
It is only those with utmost sincereity
Who can transform everything
It will change
If you do your utmost, one by one,
The world will change.
The Classics: Asian Verse

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