Transcript APRC/04/4 - International Food Policy Research Institute

Rapid Growth of Selected Asian
Economies:
Lessons and implications for agriculture
and food Security in the region
P.K. MUDBHARY
FAO-RAP Policy Assistance Branch
IFPRI-ADB POLICY FORUM
9-10 August 2007
Manila, Philippines
Contents

Introduction

Policy Lessons and Implications

Implications of Growth in Mega Economies

Conclusions and Recommendations
Introduction
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The Asia-Pacific Region has grown most
rapidly in the world.
Rapid growth in India and China has led to
the largest reduction in the number of poor
and hungry.
Several other countries in the region have
grown rapidly with similar results.
Introduction (Continued)
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Poverty incidence fell. Average daily food
intake increased with rise in per capita
income and food production and fall in real
price of food.
Yet the region has the largest number of the
poor and food insecure people in the world.
The agriculture sector has grown but faces
new policy challenges.
Introduction (Continued)
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Eradicating absolute poverty and hunger, i.e.
achieving
MDG-1,
remains
a
major
development challenge.
Five rapidly growing countries – China, India,
Korea, Thailand and Viet Nam – studied to
o learn from their experiences with economic
growth, agricultural development and their
impact on poverty reduction and food
security, and emerging challenges
o draw policy lessons and implications for
other countries in the region.
Introduction (Continued)

This presentation highlights the major
experiences, lessons and implications
of rapid growth in selected Asian
countries for agriculture and food
security in the region.
Development Experience and
Trends
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Since launching of economic reforms, in
China in 1979 and in India in 1991, both
economies have grown rapidly.
Other selected countries: Republic of Korea,
Thailand and Viet Nam also achieved rapid
growth and economic transformation.
Agriculture sector played a pivotal role in the
early stages of growth and is still important.
Development Experience and
Trends (Contd.)
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The results are generally promising,
wide adoption of improved technology and
remarkable increase in food production
growth of non-farm rural enterprises
lowered population growth rate
increased per capita food consumption
reduced number of undernourished
decrease in poverty incidence
higher income and improved living standards.
Development Experience and
Trends (Contd.)
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Structural changes have occurred:
Significant decline in agriculture’s share of GDP
Slow down in agricultural growth rate
Increasing urbanization, growing importance of
non-farm income
Food consumption, marketing and trade patterns
are rapidly changing
Agricultural production system is diversifying
away from cereal crops to livestock and highvalue products; and is commercializing.
Development Experience and
Trends (Contd.)
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Major policy challenges
Reversing slowdown in agricultural growth
Addressing environmental issues related to
intensification;
Assisting small farmers in adjusting to shocks
from trade liberalization and commercialization
Ensuring biosecurity, including food safety.
Policy Lessons and Implications
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Policy lessons from selected countries
Favorable and stable macroeconomic policy
environment – fair and stable exchange rate, low
inflation, market price and trade liberalization
Institutional reforms – particularly long-term
security of tenure, appropriate regulations
Strong public sector support to agriculture –
research and extension, investment in irrigation
and infrastructure
Implications of Growth in Mega
Economies
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Growth in the Chinese and Indian economies will
create opportunities and challenges for the
agriculture sector
It will expand export opportunities for certain
agricultural commodities for countries in the
region, but they need to be competitive.
They will also face increased competition from
China on some agricultural products and textiles
India will also open export opportunities for some
commodities.
Conclusions and
Recommendations
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Agriculture continues to be important for
economic growth, poverty alleviation and food
security
Give due priority and allocate more resources to
agriculture and rural development to address
growing inequality
Recent deceleration in agricultural growth must
be addressed urgently – emphasize R&D, small
farmers and sustainable natural resource
management
Conclusions and
Recommendations
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Governments must be pro-active to facilitate
agricultural restructuring in response to
changing market and trade opportunities
While battling for a improved market access
globally, there is need to domestic policy and
institutional reforms to enhance efficiency and
competitiveness, and promote public-partnership
Thank you for your attention