An institutional analysis of biotrade contract implementation

Since the early 1990s, after independence, the Namibian government has advocated the commercialization of marula oil production. A central part of this has been support for Eudafano Women’s Cooperative in Ovamboland, including its engagement in biotrade contracts, such as an ABS (Access to genetic resources and Benefit Sharing) contract to supply marula oil to a European cosmetic ingredient company. Marula is a multi-purpose half-domesticated indigenous fruit tree found throughout southern Africa. In Ovamboland traditional rules regulate collection and processing of marula fruit as a collaborative women’s activity and biotrade contracts are also seen as opportunities to empower women. This study aims to explore the impacts of biotrade contracting by documenting the mechanisms of institutional change accompanying introduction of marula biotrade in Namibia. It employs an analytical framework that combines Hagedorn’s Institution of Sustainability and Williamson’s four-level model of institutions with an understanding of power conceptualized through reference to Simon’s bounded rationality. Following Charmaz’s methodology of grounded theory and with reference to post-colonial African economic theory, qualitative primary and secondary data are used to develop representations of systems of human thought. These representations are interpreted as a series of institutional changes related to biotrade in Namibia, in collection of oil nuts or government administration. Designed institutional changes associated with biotrade are found to exacerbate power asymmetries and to be accompanied by unintended institutional changes that run counter to ABS objectives. It is concluded that careful attention should be paid to unintended consequences if ABS biotrade implementation is to achieve its aims.