*EPF521 06/13/2003
Text: More U.S. Investment in Biotech Needed, USAID Chief Says
(Adds that Africa would gain most) (3710)

The United States and the international community should continue to invest more in the development of new agricultural technologies -- including biotechnology -- to prevent millions more Africans from becoming malnourished and vulnerable to disease and infection, says Andrew Natsios, administrator of the U.S. Agency for International Development (USAID).

"Africa presents the highest potential for realizing major benefits from biotechnology" because the continent has the world's lowest productivity of staple food crops, said Natsios, testifying June 12 to a House of Representatives Science subcommittee.

He emphasized that because of drought and low productivity, this year the Horn of Africa is in the midst of a food security crisis. "In order to break the cycle of crisis in the Horn of Africa and other vulnerable regions around the world, donors must make available and countries must utilize all resources, including biotechnology, to improve their ability to meet their food needs," he said.

USAID has tripled its support of biotechnology research for Africa in the last three years, Natsios said. "Biotechnology can stimulate economic growth and food security in developing countries," he said.

The agency's approach is to link Africans with the international research community and build African leadership and decision-making about the science of biotechnology.

"Everything we do in biotechnology is done collaboratively," he said.

He said the agency is expanding its scientific staff and capabilities and is partnering with U.S. universities and the private sector to develop technologies to benefit small farmers.

Natisos pointed to Kenya, Uganda, Nigeria and South Africa as the leading African countries that support biotechnology.

Natsios refuted some of the criticisms of biotechnology that have been spread in the past few years, including that it is a tool for "forcing" Africans into accepting unwanted food.

"U.S. food aid makes the difference between life and death for millions of people in Africa," he said. U.S. food aid is made up of the same safe food we consume here [in the United States] and export to Canada, Japan and dozens of other countries that purchase it."

Following is the text of Natsios' prepared testimony:

(begin text)

Testimony of
Andrew S. Natsios Administrator, U.S. Agency for International Development before the
Committee on Science
Subcommittee on Research
House of Representatives
Washington, D.C.

June 12, 2003

Chairman Smith and Members of the Committee, I am pleased to participate in this important discussion today on biotechnology research and development in Africa.

The African Challenge

Hunger and poverty are widespread problems on the African continent. In sub-Saharan Africa, one-third of the population, almost 200 million people, are food insecure -- lacking enough food to lead healthy productive lives. Half of the population in this region, about 300 million people, lives on less that $1 per day. If current trends continue, by 2010 Africa would account for nearly two-thirds of the undernourished people in the world. This vicious cycle of hunger and poverty must be broken.

Agriculture offers the means to reverse the trends and stimulate wider economic growth. Seventy percent of the people in sub-Saharan African live in rural areas and are dependent on agriculture for their livelihoods. But in almost every crucial measure, African agriculture is lagging:

-- Globally, Africa suffers from the lowest productivity of staple food crops. Yields of basic food grains in Africa are one-fifth those of China.

-- Fertilizer use in Africa is 8 kilograms per hectare; in Latin America it is over 60 kilograms per hectare, and in Asia, over 100 kilograms per hectare.

-- Only 4 percent of Africa's farmland is irrigated; in the Middle East and Asia, the figures are 29 percent and 34 percent, respectively.

-- The Green Revolution has only begun to touch Africa in the last decade. In Asia and Latin America, between 60 percent and 80 percent of crop area is planted with modern varieties; in Africa, the figure is in the 20 to 30 percent range.

The results are stark: While per capita agricultural productivity rose sharply in the last forty years in Asia and Latin America, it actually declined in Africa. There is less food per person now than at the time of independence, and in some countries, there is much less. You see the results in the headlines -- hunger, famine, poverty, disease, and the social and political upheaval that accompany them.

But there is hope. Last month's issue of the journal Science carried an article by Professor Robert Evenson of Yale University showing that, in the last decade, improved crop varieties are finally reaching African farmers. Progress has been slow because of the harsh physical environment and the many crop pests and diseases in Africa. We need to foster this new trend to increase productivity at the farm level so that agriculture becomes an engine of growth and prosperity in Africa. If this is done well, Africa will eventually be able to feed its people.

The scientific resource base in Africa has suffered from years of underinvestment. We need to invest in science to increase productivity in the basic food crops of Africa -- corn, cassava, cowpeas, bananas, and rice. New tools in agriculture, such as the application of modern biotechnology, need to be brought to bear to address Africa's agricultural problems. Biotechnology alone cannot solve the complex problems of poverty and hunger; it is not a "silver bullet."

But it is a critical part of the solution, and cannot be ignored. Why? Analysis from the International Food Policy Research Institute (IFPRI) shows that by 2020, between 6 and 16 million more African children will be malnourished if we do not turn the situation around. What does this mean? Sadly, it means that if we do not act, poverty, disease and death will increase in Africa. The World Health Organization tells us that 56 percent of all child mortality is due to underlying malnutrition that makes children vulnerable to disease and infection.

But, if we can increase annual crop productivity growth from 1.5 percent to 2.5 percent, the opposite happens. In that case, 11 million fewer children will be hungry, and millions less will die young from diarrhea, malaria and other diseases. Knowing this, can anyone in good conscience say that we should close off a whole new area of science that can help us reach these and greater goals?

Unfortunately, some outside groups have actively spread misinformation about biotechnology, trying to sow confusion and fear. I would like to take a few minutes to describe to you some of the falsehoods that have been spread by those who for unfathomable reasons want to prevent the benefits of modern science from helping some of the world's poorest farmers.

Frequent Criticisms Leveled at Biotechnology

Charge: Biotechnology is not what Africa needs, and investment in it is taking away from other interventions.

In the wake of the International Food Policy Research Institute studies, it is patently untrue to assert that Africa does not need biotechnology. Africa needs agricultural growth, and economic studies tell us that accelerated productivity growth due to biotechnology will be crucial to reducing hunger and poverty. It is not true to say that biotechnology takes away from our other investments; biotechnology complements and enhances those investments. What is true is that other donors should be doing far more, but because of political constraints, they under-invest in biotechnology.

Charge: Accepting biotechnology crops will make African farmers dependant on multinational companies.

USAID is working with African universities and national research programs to develop African solutions to Africa's problems. In some cases, they may choose to work with international partners as a means of accessing important new technologies. Local companies may do the same thing. These alliances are happening in Africa, India and elsewhere. Farmers in Africa will be able to decide for themselves whether biotech crops are in their economic interest. If biotech seeds give them a good return, then and only then will they decide to purchase the seeds.

Charge: Biotechnology-derived crops will adversely affect the environment in Africa.

In science, there is no such thing as "no risk" with any new crop variety of any other technology. But all experience to date, here in the United States, Canada, Argentina, the Philippines, India and South Africa, shows that potential risks can be managed in safe and effective ways. The safety of biotechderived crops needs to be examined by applying science-based biosafety policies. USAID supports capacity building in public institutions in Africa so that they can operate good, effective regulatory systems. USAID is working with African partners to understand and manage potential environmental issues such as gene flow, for example.

While not downplaying risk, we also need to consider the environmental and health benefits of biotechnology, for example, in reducing use of dangerous pesticides. The New York Times has reported that, in China, farmers who have adopted biotech cotton no longer need to purchase atropine for themselves and their children. Their children were literally being poisoned by pesticides. Now they can enjoy a safer and cleaner environment.

Charge: Growing biotechnology-derived crops will harm export of agricultural products to Europe.

There is no question that the lack of a functional; science-based regulatory system and the irrational fear of biotechnology in the European Union have affected development of biotechnology products in Africa. The reality is that most biotechnology applications for smallholder, food-insecure farmers in Africa are not likely to affect commodities exported to Europe. Unfortunately, misinformation has added to these concerns that somehow biotech genes will cross from one species to another, from corn to fruit trees, or equally wild assertions.

Charge: U.S. food aid containing biotech crops is a tool to dump unwanted grain and force Africans into accepting biotechnology.

U.S. food aid makes the difference between life and death for millions of people in Africa. Despite this, rumors have been spread that pig genes are being cloned in crops destined for countries with large Muslim populations. Even African senior government officials have shared these concerns with me. The truth is that U.S. food aid is made up of the same safe food we consume here and export to Canada, Japan and dozens of other countries that purchase it. Furthermore, the food is intended for consumption and would be poorly adapted and of little interest to farmers if planted under Africa's environments.

Potential of Biotechnology in realizing Agricultural Productivity in Africa

Africa presents the highest potential for realizing major benefits from biotechnology precisely because it lags behind the rest of the world in using agricultural inputs. Low yields due to pests, diseases, drought and even poor soils can be boosted by application of readily available tools of biotechnology, and bring significant economic benefits to small-scale farmer.

This has been demonstrated to be the case in the adoption of biotechnology-derived corn and cotton among smallholder farmers in South Africa, the only country to adopt these crops in Africa. In the Makatini Flats in South Africa, seventy percent of the cotton grown is "Bt cotton," containing a pest-resistant gene derived from the bacterium Bacillus thuringiensis (Bt): Small-scale cotton farmers in this region, primarily women, typically farming just a few acres, have captured significant economic benefits due to increased yields, decreased pesticide usage and overall saving in farm labor. Yield increases have been greater than 30 percent. These increases combined with decreased input and labor costs have resulted in income increases of approximately 30 percent. Similarly, farmers growing insect-resistant yellow and white corn in South Africa are starting to see increased economic benefits, and the acreage of these biotechnology derived crops is rising.

To realize the potential of biotechnology we will need to foster international partnerships to enable African scientists to apply biotechnology in the near term, while building their human and institutional capacity in the longer term. Some African political leaders recognize the role of science and technology in improving African agriculture. President Obasanjo of Nigeria has publicly endorsed biotechnology and criticized the efforts of those seeking to prevent its benefit from coming to Africa. South Africa has moved even farther forward, approving new crop varieties just recently. It is encouraging to see Africa's two largest economies embracing these new technologies. We can hope their example is emulated elsewhere.

USAID's Biotechnology Effort

USAID has been, and continues to be, a leader in taking on these challenges to ensure that Africa is part of this new scientific revolution. In the last three years, we have more than tripled our support for biotechnology through the launching of the Collaborative Agricultural Biotechnology Initiative (CABIO).

The CABIO Initiative is one component of our overall agricultural strategy for stimulating economic growth and food security in developing countries. It brings to bear the tools of modern biotechnology to increase agricultural productivity and improve environmental sustainability and nutrition. We conduct research and analysis to develop technology and policy, we build human and institutional capacity, and we broadly engage our partner countries in every aspect of the program. The CABIO Initiative builds upon USAID's 12 years of experience in biotechnology, carrying forward lessons learned while adapting to changes in the economic and regulatory realities.

In Africa, the activities of the CABIO Initiative are directly linked to President Bush's Initiative to End Hunger in Africa (IEHA). This initiative calls for a partnership with African leaders and governments to work together to invest in a smallholder-oriented agricultural growth strategy. Science and technology, including our support for biotechnology, is one of the two major thrusts of IEHA, with markets and trade being the other.

USAID's biotechnology approach in Africa has two, goals:

-- to link Africans to the international research community to develop biotechnology for the benefit of small African farmers; and

-- to build African leadership and decision-making, vis-a-vis using biotechnology domestically, to ensure that Africa drives its own future.

To achieve these goals USAID has supported a number of important African organizations to develop strategies in biotechnology in leading countries like Kenya, Uganda, Nigeria, and South Africa. We also support networks of agricultural research institutions that can expand the impact of research beyond one country. These include the sub-regional organizations, Association for Strengthening Research in East and Central Africa, and the West and Central African Council for Agricultural Research and Development. USAID is also supporting the Forum for Agricultural Research in Africa (FARA), an emerging voice for African agriculture, which is linked to the implementation of the African-led New Partnership for African Development (NEPAD).

Partnerships and Alliances

As we move forward in realizing the potential of this technology for Africa, we recognize that we will have greater impact through strategic partnerships and alliances between our development resources and with those engaged in the cutting-edge science. Our key partners in this effort are public and private sector institutions, in the United States, in African countries and international organizations.

U.S. universities and industry lead the world in biotechnology research: USAID is partnering with these institutions to develop crops resistant to diseases and pests. A number of U.S. universities partner with USAID in developing technologies to address agricultural constraints in Africa and in policy development and outreach activities in biotechnology. These include Cornell University, University of California at Davis, Tuskegee University, Michigan State University, and Purdue University. We also work closely with centers of excellence, the Danforth Plant Science Center in St. Louis being a prime example:

Since the earliest programs in Africa, the Agency has leveraged the tremendous investments and technical expertise of the private sector through partnerships aimed at developing technology for small farmers. Beginning with a partnership with Monsanto Company to develop virus-resistant sweet potatoes for Kenya in 1990, we have continued engagement with the private sector. We have an on-going partnership with Syngenta Company to develop insect-resistant potatoes for Africa.

Biotechnology also opens up new avenues to fight old problems. The World Health Organization tells us that between 100 million and 140 million children in the developing world suffer from vitamin A deficiency. Each year, between one-quarter and one-half million of these children go blind, and many more die as a result of greater susceptibility to infection. In a partnership involving Monsanto Company, Iowa State University, the University of Illinois, and two Consultative Group for International Agricultural Research (CGIAR) centers, USAID is supporting the development of vitamin A enhanced corn for Africa. In India, we are developing vitamin A mustard oil. It will also have potential to save lives in some parts of Africa.

It is clear that projects such as these require the best science available. USAID is, of course, first and foremost a development agency. Although we are expanding our scientific staff and capabilities, we recognize that to capture the cutting edge of science, for example, to use crop genomics to produce more drought tolerant varieties, we will need to partner with the scientific resources of agencies such as the U.S. Department of Agriculture and the National Science Foundation. Similarly, the private sector is a major source of cutting-edge technology. We have found that those in the private sector are more than ready to see their skills applied to the needs of poor people. All of these alliances can lead to breakthroughs that can ultimately benefit farmers here at home, as well as in Africa and the rest of the developing world.

We are also partnering with others outside the U.S. Government, such as the international agricultural research centers (IARCs) sponsored by the Consultative Group on International Agricultural Research. These centers provide a vital link in our efforts to integrate biotechnology into programs to develop improved, higher-yielding and more stress-tolerant crop varieties. Some of the technologies we are supporting include virus-resistant cassava, fungal-resistant bananas, "golden maize," drought-tolerant wheat, insect-resistant cowpea, and many others. The CGAIR centers serve as a bridge between universities and other advanced institutions in the United States and international nongovernmental organizations and other partners working with millions of farm families in Africa and elsewhere in the developing world. Increasingly, USAID is designing its investments to strengthen linkages between our U.S. partners and the research and development programs of the CGAIR centers, increasing the effectiveness of all partners in applying science and also in making sure that innovative technologies reach the farmer.

We are also working closely with the Rockefeller Foundation to establish the African Agricultural Technology Foundation (AATF). The Foundation is a new and unique public-private partnership designed to assist smallholder farmers in Africa to gain access to existing agricultural technologies, including biotechnology, with the goal of relieving food insecurity and alleviating poverty. USAID contributes $500,000 a year of core support to the AATF. AATF complements and links with additional USAID funding through our African partners. I am sure Gordon Conway will discuss the AATF in more detail.

Summary and Conclusions

I would like to conclude by underscoring the importance of African leadership and partnerships with African countries and institutions. The region faces the greatest needs, and provides a compelling case for harnessing all tools in the fight against hunger and poverty. These are not just biotechnology tools, but they include biotechnology, and these tools can help us realize a new Africa where food security and prosperity predominate, and where hunger and famine are things of the past.

USAID's programs in biotechnology reinforce the ability of Africans to make their own decisions. Everything we do in biotechnology is done collaboratively -- from problem identification and priority setting to aiding the development of policies designed to establish risk assessment programs and protect intellectual property. Our programs are demand-driven. Our African partners want and need the strategic uses of biotechnology in agricultural research and development. USAID is committed, with your help and support, to ensuring that the scientific revolution in agriculture bypasses no one, least of all poor farm families in Africa.

A small farmer in South Africa is already living this vision of Africa. On his 10 acres, T.J. Buthelezi grows biotech cotton and gets four times the yield he used to. For the first time, he says, "I'm making money!" He and his wife have been able to decide how to spend and invest their newfound income, instead of struggling just at the subsistence level. His example is not unique. Farmers are finding that biotech crops can give them money for school fees, medicines and other necessities that just a few years ago were luxuries.

I am glad to tell you that this hopeful outlook is Africa's own vision. Two weeks ago, the Forum on Agricultural Research in Africa, charged with the agenda of the New Program for Africa's Development, or NEPAD, held a meeting in Dakar. I would like to read you one of the six priorities that are contained in the Dakar Declaration:

"[the participants]...declare their commitment to-building Africa's human and physical capability in biotechnology to be able to engage with global public and private sector partners to capture the advances needed to sustainably intensify African agriculture..."

That need is urgent. This year the Horn of Africa is in the middle of a serious food security crisis caused, in part, by drought and low agricultural productivity. The United States alone has provided more than $350 million of food aid to address urgent food needs in the region. In order to break the cycle of crisis in the Horn of Africa and other vulnerable regions around the world, donors must make available and countries must utilize all resources, including biotechnology, to improve their ability to meet their food needs. Through biotechnology, improved drought and pest resistant seeds have been developed that mitigate the effects of adverse weather and insects on food production. Through U.S. leadership in investments in science and technology, the international community can help Africa strengthen its agriculture and ensure that the specter of famine is someday just a memory.

USAID is ready and eager to work with your Committee, with others in Congress, and within the Executive Branch in making our common vision, shared between the United States and Africa, of an Africa without starvation and famine, a reality in our lifetime.

Thank you.

(end text)

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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