Institutional Change and Effective Financing of Agricultural Research in Latin America

Abstract

This paper reviews recent institutional changes and innovative mechanisms for funding of agricultural research in Latin America, including commercialization of research results through joint public-private sector ventures, competitive funds, research foundations, farmer-managed levies on agricultural production, and greater involvement of universities and private agribusiness. Although all of these mechanisms are playing an increasing role in alleviating the chronic underfunding of national agricultural research systems in Latin America, the public sector remains the main source of funding. It is imperative that public funding be increased to address new demands (e.g., natural resource management) and to fill a growing gap in the maintenance of and investment in physical and human capital infrastructure for research. The execution of research tasks could be done by several public and/or private elements of the national system. Reforms in the traditional national research institute model of agricultural research are needed to make it attractive for governments, farmers and the private sector to invest in agricultural research.