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Golden Rice and the Looming GMO Trade Debate: Implications for the Poor

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  • Anderson, Kym
  • Pohl Nielsen, Chantal

Abstract

The first generation of genetically modified crop varieties, currently most widespread in the maize and soybean sectors, sought to increase farmer profitability by improving agronomic traits. The next generation of biotech research is focusing also on breeding for attributes desired by consumers. Although not yet commercially available, a new variety of rice, known as ?Golden Rice?, has been genetically engineered to contain a higher level of vitamin A. Thus in contrast with the current commercial applications of biotech crops, this new rice variety aims directly at benefiting consumers rather than producers. More specifically, it aims at improving the health of poor people in developing countries who rely on rice as their main staple food (or would do if it was cheaper) and whose diet is nutrient-deficient. This Paper analyses empirically the potential economic effects of such an innovation in an environment of heated debates about the risks and benefits of these biotech developments. The emergence of genetically modified foods is generating policy reactions that are delaying the development and adoption of what promises to be a high-payoff technology, particularly for the world?s poor. These policy reactions may lead to trade disputes, in which case the way this GMO issue is addressed in the WTO?s dispute settlement body could have profound implications for poor households in developing countries.

Suggested Citation

  • Anderson, Kym & Pohl Nielsen, Chantal, 2004. "Golden Rice and the Looming GMO Trade Debate: Implications for the Poor," CEPR Discussion Papers 4195, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4195
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    1. Jackson, Lee Ann & Anderson, Kym, 2003. "WHY ARE US AND EU POLICIES TOWARD GMOs SO DIFFERENT?," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57898, Australian Agricultural and Resource Economics Society.
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    Cited by:

    1. Bimal Kumar Ghimire & Chang Yeon Yu & Won-Ryeol Kim & Hee-Sung Moon & Joohyun Lee & Seung Hyun Kim & Ill Min Chung, 2023. "Assessment of Benefits and Risk of Genetically Modified Plants and Products: Current Controversies and Perspective," Sustainability, MDPI, vol. 15(2), pages 1-25, January.

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    More about this item

    Keywords

    Gmos; Golden rice; Rice policy; Wto agreements; Consumer preferences;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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