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62 CHAPTER 3


Ex Ante Impact of GM Crops in SSA


The adoption of GM varieties worldwide has expanded considerably since they were first commercialized in 1996. Originally only four countries approved the adoption and use of transgenic crops covering an area of just above 11 million hectares. In the case of cotton, GM varieties have been com- mercialized in 10 countries: Argentina, Australia, Brazil, China, Colombia, India, Mexico, South Africa, the United States, and most recently, Burkina Faso. In parallel, the areas of non-GM conventional cotton have been decreas- ing in favor of Bt and HT cotton. James (2011) estimates that in 2011, more than 68 percent of world cotton was planted to GM varieties, including both open-pollinated varieties and hybrids. In 2009 the International Food Policy Research Institute published a


review of the economic impact of these crops in developing economies and the methods used to evaluate this impact (Smale et al. 2009). The review revealed that very few studies have addressed the potential or actual impact of GM crops on smallholders in SSA. Aside from numerous publications of the actual impact of Bt cotton and Bt maize in South Africa, the number of ex ante eval- uations is still limited in Africa. In East Africa De Groote et al. (2003) evalu- ated the potential for Bt maize; Edmeades and Smale (2006) discussed the potential impact of a GM banana on smallholder farmers in the Uganda high- lands. In West Africa, Horna et al. (2008) assessed ex ante GM vegetables in Ghana. More recently Vitale at al. (2008, 2010) have documented the impact of Bt cotton in Burkina Faso. Given the importance of cotton in SSA and the availability of the


technology, most of the ex ante evaluations have concentrated on GM cotton, especially Bt cotton. In West Africa for instance, Cabanilla, Abdoulaye, and Sanders (2005) developed a linear-programming model to assess the potential cost to West Africa, Mali in particular, of not adopting Bt cotton. Elbehri and MacDonald (2004) and Langyintuo and Lowenberg-DeBoer (2006) have carried out evaluations mainly based on trade models. Most recently, a study by Falck-Zepeda, Horna, and Smale (2008) examined the potential of Bt cotton for the West Africa region with emphasis on Benin, Burkina Faso, Mali, Senegal, and Togo using an eco- nomic surplus approach. These studies conclude that there would be significant losses in economic


benefits if Bt cotton is not adopted. Several of these studies also point to important institutional issues as significant determinants of the level and social distribution of benefits. A key institutional issue seems to be the decision


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