problems will be unable to afford to pay the cost of using the technologies.
     Fourthly, even if a local firm is willing to pay the com­mercial rate for the use of patented technology, the patent holder can withhold permission to the firm, or impose oner­ous conditions, thus making it impossible or extremely diffi­cult for the technology to be used by the firm. Patent holders can refuse to grant permission to companies in the South to use the technologies, even if they are willing to pay mar­ket prices; or else the technologies may be made available at high prices (due to the monopoly enjoyed by the patent holders). Companies in the South may not afford to pay at such prices and if they do their competitiveness could be affected.

3.3.5     Indigenous, traditional and institutional knowledge
Local or traditional knowledge (TK) refers to information held by local or indigenous people with regard to biodiver­sity in this case (Brush and Stabinsky, 1996). Indigenous people are defined as descendants of preconquest, tradi­tional people of a certain geographic area, with a common history, culture, language and customary law. TK encom­passes information about, for example, crop landraces and their agronomic or culinary characteristics or the medicinal qualities of native species. TK is an essential aspect of an indigenous group's cultural survival; it has been developed through generations of intimate contact with the biologi­cal materials (Mauro and Hardison, 2000). It is transmit­ted in many ways, including apprenticeship with elders and specialists and oral tradition (including poems, songs and music; Posey, 2002). Although indigenous people comprise only some 5% of total world population, they have a dis­proportionately large role in the maintenance of and knowl­edge about biodiversity because they are located primarily, although not exclusively, in biodiversity centers. Further­more, with regard to crop biodiversity, indigenous or local farmers play an important role in in situ (on farm) conserva­tion of landrace varieties (Brookfield et al., 2002). TK is not, however, limited to the knowledge of indigenous people but encompasses knowledge (and associated heirloom varieties) of local, nonindigenous communities in modern societies as well (e.g., Bérard and Marchenay, 1996).
     Traditional knowledge is now widely recognized as hav­ing played and as still playing crucial roles in economic, so­cial and cultural life and development, not only in traditional societies but also in modern societies. Even today, the major­ity of the world's population depend on traditional knowl­edge and practices for food and medicines. Eighty percent of the world's people rely on indigenous knowledge for their medical needs and half to two-thirds of the world's people depend on foods provided through indigenous knowledge of plants, animals, insects, microbes and farming systems (RAFI, 1997). This recognition has heightened in recent years as a result of the increased awareness of the environ­mental crisis; the role of some modern technologies, produc­tion methods and products in contributing to this crisis; and a growing appreciation that local communities (especially in developing countries) have a wide range of traditional knowledge, practices and technologies that are environmen-

tally sound or "friendly" and that have been making use of the manifold and diverse biological and genetic resources for food, medicines and other uses. The knowledge of lo­cal communities, farmers and indigenous peoples on how to use the many forms and types of biological resources and for many functions, as well as on how to conserve these resources, is now recognized as being a precious resource that is critical to the future development or even survival of humankind. At the same time, this precious knowledge is maintained and thrives in the context of the traditional ways of social and economic life and customary practices of the traditional communities. Their rights to their knowledge, to the use of their knowledge and to the products arising from such use must be recognized. The misappropriation of their resources, their knowledge or the products of their knowl­edge would not only violate their rights, but also adversely affect the conservation and use of the knowledge and of biodiversity (as the IPRs obtained by corporations and other institutions may erode the communities' rights to continue using their resources or to continue with their traditional practices).
     The position of traditional knowledge and the rights of local communities is now widely accepted with acknowledg­ment: (1) of the role and importance of traditional knowl­edge; (2) that for traditional knowledge to be maintained, the social and economic context in which it developed and is applied has to be maintained; (3) that for this context to be maintained, the rights of local communities to their re­sources and knowledge have to be recognized and respected; and (4) that misappropriation of these rights can erode the basis of traditional knowledge and thus adversely affect the prospects of sustainable development.
     There are proposals to encourage countries to use their options under TRIPS and the CBD in favor of sustainable development. Each country should interpret the agreements in ways that are most appropriate for itself, maximizing the creative use of provisions of each agreement to suit the country's chosen policies.
     A major drawback of this approach is that developing countries in general have limited capacity (in terms of pol­icy-making, legal and administrative expertise) to analyze the international agreements and to formulate national poli­cies and draft legislation with the sophistication required. Thus, they may not be able to make full use of the flexibili­ties in TRIPS and the CBD. Also, for this approach to work, developed countries would have to allow the developing countries to make use of the flexibilities in the agreements and not unduly put pressure on them when they do so.
     This approach is an attempt to harmonize the traditional knowledge system and western IPR system. There are already some existing cases that are noteworthy. For example, India has already seen its practice in Kerala state where Jeevani—a drug with anti-fatigue properties—has been patented by TB-GRI under a benefit sharing formula with Kani Tribe. The drug was extracted from a plant called arogyapacha in lo­cal language and was developed based on lead knowledge given by the tribe. For this kind of development, it is im­portant that the system of protection takes into account the ethical norms of the community involved, intention of protection (trade or health), GI protection and benefit