COMMISSION ON SUSTAINABLE DEVELOPMENT CONSIDERS IMPACT OF TECHNOLOGY TRANSFERS ON DEVELOPING COUNTRIES
Press Release
ENV/DEV/469
COMMISSION ON SUSTAINABLE DEVELOPMENT CONSIDERS IMPACT OF TECHNOLOGY TRANSFERS ON DEVELOPING COUNTRIES
19980422 The dilemma of technology transfer was how to make new technologies available to developing businesses and countries in line with their needs, Marcello Kos Silveira Campos told the Commission on Sustainable Development this morning as it continued its discussion on the role of industry in sustainable development. Within the topic of industry, the Commission focused on the transfer of environmentally sound technologies, hearing statements on the issue by representatives of industry, non-governmental organizations (NGOs), trade unions and developing and developed countries, as well as representatives of major specific interest groups. The Commission also held a round-table discussion on the issue. Speaking on behalf of industry, Mr. Campos said the initial costs and infrastructure needs of new technologies put them out of reach of smaller countries and businesses. Governments could aid the transfer of technology from developed to developing nations by guaranteeing sufficient infrastructure for technology use, instituting an efficient market system, and protecting intellectual property. It should not be assumed that technology transfer was always from developed to developing nations, said Carol Kalafatic, speaking on behalf of indigenous peoples. Indigenous technologies were often used by big businesses with no compensation given to the local inventors. Few laws and international instruments protected the rights of indigenous peoples in such situations. Attention should be given to correcting that situation. Developing countries were exposed to the transfer of dangerous and environmentally harmful technologies, said Gordon Bispham, speaking on behalf of the NGOs. Technology was carelessly imported into many countries, which negatively impacted on foreign exchange, the physical environment, employment and social equality. In some cases, limiting technological advances would be the more appropriate course. During the discussion period, speakers said technology transfer included sharing management techniques and other business practices, not just hard technology. Governments and industry should take steps to facilitate the transfer of knowledge in addition to mechanical technology. Other speakers said that legal structures could regulate and promote the transfer of technology. The Commission will meet again at 3 p.m. today to continue its consideration of the role of industry in sustainable development, focusing on the topic of freshwater management.Commission Work Programme
The Commission on Sustainable Development met this morning to continue its consideration of the role of industry with a discussion on the topic of technology cooperation and assessment. (For background information, see Press Release ENV/DEV/467 of 21 April.)
Statements on Technology Cooperation and Assessment
MARCELLO KOS SILVEIRA CAMPOS, Manager of Technical Affairs of ABIQUIM, Brazil, said technology cooperation was the arrangement between parties to share information, know how, and managerial skills in an effort to cooperate and attain the goal of sustainable development. Technology cooperation was not limited to machinery; it included the transfer of management practices and other techniques of business. New technologies often used less resources and achieve better results in a more cost effective and environmentally friendly manner. However, such technologies could be expensive and complex and, as a result, the vast majority had originated in developed countries.
He added that the initial cost and infrastructure needs of new technologies could put them out of reach of smaller countries and businesses. The dilemma of technological cooperation was how to make new technologies available to developing businesses and countries given their needs. Since many developed nations were under pressure to restrict their budgets, technology cooperation was made more difficult. Technological cooperation was primarily a business-to-business arrangement. If companies cooperate in sharing technologies, it would create an environment of mutual benefit and sustainable development.
Governments however must assist in this cooperative arrangement, he said. Governments must guarantee sufficient infrastructure and an efficient market system as well as protection of intellectual property. Companies would not share their know-how if the result would be the theft of that know-how by others. Industry believed that technology cooperation must be based on mutual trust, taking into account the interest and needs of all stakeholders.
MILTON FREITAS, Central Unica dos Trabalhadores CUT, Brazil, said workers in the chemical companies of his country were united under a central organization that helped ensure a regulated use of technology in the chemical industry. Assessing and transferring technology in a sustainable fashion depended on the involvement of workers in decision-making. It also depended on education and training. It was most effective to involve the unions heavily in both those areas.
Unions should also be intensively involved with establishing cooperative undertakings to ensure smooth implementation of new technologies into existing systems, he said. Technology transfer and assessment, especially in the important area of chemicals, had to be carefully
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coordinated. Programmes had to be set up in a way that would make the industry more transparent, more accountable and more responsible to the workers, who were most affected by the development of technology.
GORDON BISPHAM, President of Barbados Network, speaking on behalf of the NGO Working Group on Technology Cooperation and Assessment, said technology was carelessly being imported into many countries, adversely affecting foreign exchange, the physical environment, employment and social equality. In some cases, limiting technological advances would be more appropriate than searching for the right technology. Environmentally sound technologies were total systems that included know-how, procedures, goods and services, equipment, and organizational and management procedures. Transfer of technology required human resource development and local capacity-building.
Environmentally sustainable technologies had to be compatible with nationally determined socio-economic, cultural and environmental priorities, he said. Some obstacles to better utilization of technology, he said, included the use of external personnel instead of qualified nationals, lack of information on internationally available technologies and under-utilization of technical extension services to disseminate environmentally sound technologies. Integrating environmentally sound technologies into sustainable development required communication with those most likely to be affected to determine what was desired. Further, fair and transparent linkages had to be established between stakeholders, and effective monitoring systems had to be designed and implemented. Science and technology councils at the national and local levels, and talent and technology banks at the regional level should be established. Those bodies would be quasi-governmental, and all stakeholders would be represented.
ADAM VAI DELANEY (Papua New Guinea) said that one problem with discussion on technology transfer in the Commission was that the discussion usually focused on government, but such transfers were generally between companies in the private sector. The general trend of governments was to allow businesses and market forces to work on their own. Generally, once an environmentally sound technology was identified, it would eventually get transferred through private initiatives. That had been the case with partnerships involving Canada and the European Union.
Markets alone, however, could not ensure the adequate sharing of technology, particularly when governments continued to be the major contractors in many countries, he said. Governments could play a role in helping to facilitate the transfer through an efficient system of licensing users and providers of technology. Technology generally originated in universities and other institutions, and the problem was how to get those technologies to users without violating intellectual property laws and trade barriers. A licensing process would solve that problem.
TOM HOULIHAN, speaking for the United States Department of Commerce,
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said there was a need for a technology verification programme to assist potential users, providers and government regulators in the transfer process. Such a programme would require a panel of experts, business members, NGO representatives, governments and all stakeholders to provide for an evaluation of new technologies. The evaluation process would feature such elements as the submission of applications for users and a review of the technology to assure its usefulness and safety. That evaluation would ensure that the technology "passed muster" and allowed for cooperation between all parties. The panel would also determine the costs of the infrastructure needed for the maintenance of that technology.
The proposed panel would also serve as a clearing house and evaluator for the marketplace to determine a technology's usefulness, he said. Such a technology verification programme would lead to the removal of barriers, limit liability factors, and provide entrepreneurs a way to enter the world marketplace. It would also limit the risk to the general public of harm from technology.
ULVIK KARLSSON, speaking on behalf of children and youth, said technology transfer was generally thought of as moving technology from the North to the South. While northern companies were generally criticized for irresponsible behaviour in the South, which they should be held accountable for, buyers of the technology in the South should also be held accountable. If countries in the South received cash by allowing northern companies to do business in their countries, they should also share in the responsibility for safety.
CAROL KALAFATIC, speaking on behalf of indigenous peoples, said that serious consideration should be given to the role of indigenous technologies that were used by companies in developed countries. Often such technologies were used by large companies with no compensation given to the local inventors. One example of that was the herbal and natural medicines developed in Madagascar that were now being marketed by big pharmaceutical companies. There were few laws and international instruments to protect the rights of indigenous peoples in such situations. She urged the Commission to support the draft declaration on the rights of indigenous peoples.
Discussion
In a subsequent discussion, the Commission heard views from representatives of industry, trade unions, NGOs, interest groups and Members States on the transfer of technology.
Citing an initiative put forward by NGOs yesterday, support was expressed for the holding of a meeting to review voluntary initiatives by industry aimed at supporting sustainable development. The Chairman said there was agreement that the first stages of such a meeting should be held during the Commission's current session.
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The performance of companies from the developed world was disappointing with respect to technology transfer, one speaker said. Companies had made many promises at the United Nations Conference on the Environment and Development (UNCED), but they had not honoured those commitments. Others stressed the need for technology transfer to be socially and environmentally friendly. That meant that standards had to be set and all stakeholders had to be considered and involved.
Technology transfer was not just a matter of hard technology exchange but also the human services aspect, other speakers said. Developing countries needed foreign investment, but it had to be socially and ecologically sound. The problem with foreign direct investment was that it was directed only to a small group of countries.
A representative of industry said that the transfer of knowledge was an aspect of technology transfer. Eco-efficiency measures came from such transfers of knowledge, as did further foreign direct investment and official development assistance (ODA). Often, however, there was corruption in a country or copyright laws were not honoured. That created a poor environment for the transfer of any technology. The NGO claim that technology had a negative effect on local conditions was surprising, since it seemed that developing countries wanted technology.
Another speaker said that creating supportive legal and legislative structures was key to building enabling environments for technology transfer, but too much government involvement hampered it. Transfer should not be mandated or regulated, but should be carried out through such measures as public-private partnerships. Government and business should work together with such instruments as microcredits and tax credits for developing businesses.
Many speakers addressed the problem of worker hazard in the transfer of technology resulting from unsafe industry practices. The tools currently used for ensuring worker safety were ineffective. Many stressed the need for technology transfer to consider the environment, society and business. Other speakers pointed to safe, developmentally friendly practices in many industries, including chemicals, transportation, oil and sports.
One speaker pointed to the experience of his company in developing a new type of metal technology. The company had hired local researchers in each of the global areas where it was active. It had a standard contract, which was negotiated differently at the various plant locations, and payment was made to local plants when the technology went into the development phase.
Another speaker pointed to solar energy as a cheap form of technology transfer that was going from South to North. Another speaker said that South Africa would be holding a conference to promote knowledge and cooperation on production aspects of technology transfer. Another gave examples of projects that could be entered into storehouses of technology, which had been proposed by NGOs.
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