What is Benefit Sharing in Genetic Resources?

S7-SA6-0710

Grade Level:

Class 12

AI/ML, Physics, Biotechnology, FinTech, EVs, Space Technology, Climate Science, Blockchain, Medicine, Engineering, Law, Economics

Definition

What is it?

Benefit Sharing in Genetic Resources means fairly and equally sharing the advantages that come from using natural plant, animal, or microbial genetic material. When someone uses genetic resources, like a special plant from a village, and makes a profit (e.g., by creating a new medicine), a part of that profit or benefit must be shared with the people or community from where the resource originated.

Simple Example

Quick Example

Imagine a farmer in a small Indian village has a special type of turmeric that grows only in their field and helps heal wounds very fast. If a big company uses this turmeric to make a new, popular healing cream and earns crores of rupees, 'Benefit Sharing' means the company should share some of that profit with the farmer or the village community.

Worked Example

Step-by-Step

Let's say a company discovers a unique medicinal plant in a forest managed by a tribal community. They use its genetic material to develop a new anti-aging cream.

1. **Discovery & Use:** The company identifies a rare plant in a tribal community's traditional lands, known for its skin-healing properties.
2. **Product Development:** They extract genetic compounds from this plant and, after years of research, develop a highly effective anti-aging cream.
3. **Market Success:** The cream becomes a bestseller, generating a profit of ₹50 crore in its first five years.
4. **Benefit Sharing Agreement:** Before starting, the company signed an agreement to share 5% of its net profit with the community.
5. **Calculation:** 5% of ₹50 crore = (5/100) * ₹50,00,00,000 = ₹2,50,00,000.
6. **Sharing:** The company transfers ₹2.5 crore to a fund managed by the tribal community for their development projects (like building a school or hospital).

**Answer:** The tribal community receives ₹2.5 crore as a shared benefit.

Why It Matters

Benefit Sharing ensures fairness and justice, especially for indigenous communities who have protected these resources for generations. It promotes ethical use of nature and encourages new careers in fields like environmental law, biotechnology ethics, and sustainable development. This concept helps us use natural resources wisely for everyone's good, not just a few.

Common Mistakes

MISTAKE: Thinking benefit sharing only means giving money. | CORRECTION: Benefit sharing can be monetary (money) or non-monetary (like sharing technology, training, building schools, or providing access to research results).

MISTAKE: Believing genetic resources are only about plants. | CORRECTION: Genetic resources include all living things – plants, animals, fungi, and microbes (like bacteria) – and their genetic material.

MISTAKE: Assuming benefit sharing is optional for companies. | CORRECTION: In many countries, including India, there are laws (like the Biological Diversity Act) that make benefit sharing a legal requirement, not just a choice.

Practice Questions

Try It Yourself

QUESTION: A pharmaceutical company uses a special fungus found in a forest to create a new antibiotic. If their profit is ₹100 crore and they share 3% as benefit, how much do they share? | ANSWER: ₹3 crore

QUESTION: A community shares knowledge about a drought-resistant crop with a seed company. The company sells seeds globally. Name two non-monetary benefits the company could share with the community. | ANSWER: Providing advanced farming training to the community members, or building a research facility in their village.

QUESTION: A local village has a unique type of mango tree. A food company develops a new juice using this mango, making ₹20 crore profit in 2 years. They agree to share 4% of the profit. If the village decides to use half of this shared amount to build a new well and the other half for school supplies, how much money goes to school supplies? | ANSWER: Total shared profit = 4% of ₹20 crore = ₹80 lakh. Money for school supplies = ₹80 lakh / 2 = ₹40 lakh.

MCQ

Quick Quiz

What is the main goal of Benefit Sharing in Genetic Resources?

To allow companies to use genetic resources for free.

To ensure fair distribution of advantages from using genetic resources.

To stop anyone from using genetic resources.

To make all genetic resources government property.

The Correct Answer Is:

The main goal is to ensure fairness (equity) so that those who provide or conserve genetic resources also get a share of the benefits derived from them. Options A, C, and D do not reflect the core principle of fair sharing.

Real World Connection

In the Real World

In India, the National Biodiversity Authority (NBA) and State Biodiversity Boards implement the Biological Diversity Act, 2002. For example, if a researcher or company wants to use a traditional medicinal plant found in an Indian forest for commercial purposes, they must seek approval from the NBA and agree on a benefit-sharing arrangement with the local Biodiversity Management Committee (BMC) of that area. This ensures local communities, like those in the Western Ghats or Himalayan regions, receive a share of benefits if their traditional knowledge or resources are used.

Key Vocabulary

Key Terms

GENETIC RESOURCES: Any material of plant, animal, microbial or other origin containing functional units of heredity. | INDIGENOUS COMMUNITIES: People who have lived in a particular area for a very long time, often having traditional knowledge. | MONETARY BENEFIT: Benefits shared in the form of money or financial payments. | NON-MONETARY BENEFIT: Benefits shared in forms other than money, such as technology transfer, training, or infrastructure development. | BIODIVERSITY: The variety of life on Earth, including plants, animals, fungi, and microorganisms.

What's Next

What to Learn Next

Next, you can explore "Traditional Knowledge and Intellectual Property Rights." This will help you understand how the age-old wisdom of communities is protected and how it connects with modern laws, building on your understanding of why sharing benefits is crucial.