AKST Systems in Latin America and the Caribbean: Evolution, Effectiveness and Impact | 105

Table 2-8. Global investment in research & development in selected countries (in billions of international
2000 dollars and in percentage).*

 Selected countries/regions

Amount
1995

Total
2000

Participation
1995

Total (%)
2000

Developed Countries (23)

461.4

574.0

82.1

78.5

USA

196.4

263.0

 

35.0

36.0

Japan

90.0

99.5

16.0

13.6

Developing countries (141)

 

100.3

157.0

17.9

21.5

Asia Pacific (26)

   
China
19.5
48.2
3.5
6.6
India
11.7
20.7
2.1
2.8
LAC (32)
17.2
21.2
3.1
2.9
Brazil
9.8
12.4
1.7
1.7
World Total
561.6
730.9
100
100

*Local currency converted to international dollars using the Purchasing Power Parity index (PPP).
Source: Pardey and Beintema, 2006.

and regional trade negotiations, including those that Central America is launching into with Europe and those that being explored with Asian countries, is copious and will produce new challenges in terms of improving the competitiveness of agriculture in the region.

2.4.6 Markets
Urbanization and globalization processes in LAC and worldwide, together with increases in per capita income, have had a major impact on creating demand for different types of goods, and also on the characteristics of the
products and services demanded by consumers. The last few decades have brought changes in consumption patterns and new requirements associated with changing consumer preferences in terms of health, food safety, food quality and certification, which are being incorporated into national regulations and the international agreements that regulate world food trade.

The growing demand for differentiated products, with more services and value added, plus other characteristics such as the environmental and cultural nature of products, identification of origin and processes, and so on, imply modifications to the traditional demand for innovations from the AKST system. It is not enough to have an approach centered on the product, the producer, or the use of technologies to increase productivity and the food supply; every day brings more demands, but also new opportunities to build competitiveness through value added, based on a proper understanding of demand and the supply of products and services that are aligned with consumer preferences.

In this respect, reference should be made of the many organizations dedicated to Fair Trade, a movement that began in the mid 1980s. Its purpose is to treat rural producers of goods and services in poor countries fairly. This entails offering fair compensation for these products, to cover production and labor costs. It also leads to a revaluation of the work carried out by indigenous peoples, Afro-Americans, and other ethnic minorities, and discourages slave labor and child labor. It makes it possible to secure long-term contracts

 

 that ensure a steady source of income and reduce market uncertainty. It also encourages the improved management and conservation of biodiversity and the environment, and provides support for producers to acquire the knowledge and skills needed to become better at business and marketing, and even increases their self esteem. Products marketed under this scheme vary in their characteristics and points of origin. Countries that stand out include Guatemala, Honduras, Nicaragua, Ecuador, Bolivia, Brazil, Panama, Peru, Colombia, Mexico, Chile, and Costa Rica.

Until now, most AKST system institutions have not assigned a high priority to these aspects, or to the different links of the agrifood chains. Moreover, they do not have the necessary technical and human resources. These new challenges will become more critical in the coming decades. It is
clear that, in future, the AKST system will be unable to limit its activities to the traditional supply-side approach to technological innovation. A high priority will have to be given to identifying and responding to demand, and to developing new ways of organizing the production and marketing of agrifood products (organizational innovations), so as to effectively meet new consumer demands.

2.5 Effectiveness and Impact of the AKST System
2.5.1 On production systems
2.5.1.1 The traditional indigenous and campesino systems
Traditional indigenous and campesino production systems have historically been considered by the AKST system an obstacle to development. Its social actors have suffered from a low political and organizational profile, and it has been addressed in a marginal and reductionist way, ignoring the complex dynamics of production in the rural milieu (Armiño, 2002; Macías, 2002; Santamaría et al., 2005; Martínez et al., 2006; OAC and IICA, 2006; Raigoza et al., 2006).

In the last two decades, the traditional campesino and Afro-American farming systems and the indigenous produc-