Technological Choice

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N-S wrangle over terms of technology transfer

C Raghavan and K P Khor

NORTH-SOUIH dlfferences on Intellectual property rights loomed large at the Prepcom consultations on the question of transfer of environmentally sound technology

The discussions were on the basis of a draft decision put forward by the Group of 77 and China which calls for the establishment of mechanisms to facilitate easler and cheaper access of envtronmentally sound technology for the developing countries

The United States however Insisted that intellectual property rights should be fully protected Third World delegates said if this was adopted It would make the transfer of environmentally sound technology to the South Impossible.

Among other things the G77 and China have called for the development of an International mechanism to purchase patents for their transfer to developlng countries on non-commercial terms and the easing of the transferof patents and know-how Including issues of period of patent protection as also transfer of these technologies on concessional and preferential terms

The G77 and China said that the discusslons in New York should focus on the Identificatlon with a view to establishing appropriate international mechanisms to promote facilitate and finance the transfer of environmentally sound technology on concessional and preferential terms.

Such mechanisms the C77 and China said should also aim at:

  • supporting the development of endogenous capacity building in the Third World;
  • ensuring the access of developIng countries to scientinc and technological Information in particular state-of-the-art technologies through establishment of International databases at regional and national centres easily accessible to potential users of information related to technology optlons tradlng condltions implementation costs and technologlcal security;
  • exchange of experiences among developing countries on developing capaclty for technological assessment environmental and risk assessment of technology, particularly new technologies to enable choices to be made of environmentally sound technology;
  • purchasing patents for transfer to developing countries on non-commercial terms;
  • developing safeguards on transfer of technologies especially new technologies which had not been approved in the country of origin on environmental or health grounds;
  • sponsoring regular and short term visits or facilitating permanent return of quall ed experts in the field of environmentally sound technologies of developing-country origin currently working in developed country institutions;
  • facilitating the main tenance and promotion of such technologies that might have been neglected or displaced in the developing countries.

Other elements include

  • creation by the ICs of systems of Incentives riscal or otherwise. to stimulate the transfer by companies operating under their jurisdiction of environmentally sound technologies to developing countries;
  • ways and means of promoting favourable access by developing countries to processes equipment and expertise fordevelopment and use of such technologies;
  • easing the transfer of patents and know-how including issues of period of patent protection; and
  • incorporating in the draft UN code for transfer of technology transfer of environmentally sound technologies.

In the consultations the C77 and China came under strong pressure from the United States which wanted the tnclusion of the protection of intelleclual property nghts as a key principle in technology transfer Alternatively the US said the moves to promote technology transfer on preferential terms to developing countries should be without prejudice to the protection of Intellectual property rights.

Responding to this Pakistan s Zulflgar Ali Qureshi appealed to the US not to include such a clause anywhere in the text as IPR protection constituted a formidable barrier to technology transfer. Insistence on this he said would thus pre-empt all the actions UNCED intended to take on transfer of environmentally sound technology and make the whole document under negotiations absolutely void and inoperable. The delegates would have come to Ceneva to discuss nothing and the whole exercise would be like whistling in the wind.

Canada and Netherlands (on behalf of the EC) also proposed the addition of a clause to the effect that mechanisms aimed at encouraging improved flows of environmentally sound technology to developing countries should also make use of commercial mechanisms.

This was opposed by Indian delegate M Sanwal who argued that the use of commercial mechanisms to transfer technology would go against the pnnciple of transferring technology on concessional and preferential terms - principles that had been already agreed to UN Ceneral Assembly resolution 44 /228 which established UNCED

The Indian position was supported by several other developing countries including Ghana and Tunisia. Both the US proposal and the Canada proposal were put in brackets for further discussion at Prepcom 4

The wide North-South divergence over technology transfer is certain to be one of the major bones of contention in the drafting of Agenda 21 action programmes at Prepcom 4. While developing countnes insist on easier access to environmentally-sound technologies the industrtal majors seem adamant in fully protecting the propnetory rights of their corporations and ensure for them global monopolies in this area

If industrial countries insist on us paying the full commercial cost for royaltles then that would negate the preferential and concessional terms already agreed on commented on Third World delegate.

Some Northern countries he said seemed to have forgotten that to resolve the senous environment crisis UNCED required the development of political will to make sacrillces and not the selfinterested protectlon of narrow commercial Interests. This requires environmentally sound technologies to be transferred to developillg countries and thus an exception must be made to patent protection forsuch technologies that are needed to improve the environment and sustain development


Source: C Raghavan and K P Khor, 'N-S wrangle over terms of technology transfer', Third World Resurgence, No 14/15, p29.

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