Presentation on theme: "Lessons and implications for agriculture and food Security in the region IFPRI-ADB POLICY FORUM 9-10 August 2007 Manila, Philippines Rapid Growth of Selected."— Presentation transcript:
Lessons and implications for agriculture and food Security in the region IFPRI-ADB POLICY FORUM 9-10 August 2007 Manila, Philippines Rapid Growth of Selected Asian Economies: P.K. MUDBHARY FAO-RAP Policy Assistance Branch
Contents n Introduction n Policy Lessons and Implications n Implications of Growth in Mega Economies n Conclusions and Recommendations
Introduction n The Asia-Pacific Region has grown most rapidly in the world. n Rapid growth in India and China has led to the largest reduction in the number of poor and hungry. n Several other countries in the region have grown rapidly with similar results.
Introduction (Continued) n Poverty incidence fell. Average daily food intake increased with rise in per capita income and food production and fall in real price of food. n Yet the region has the largest number of the poor and food insecure people in the world. n The agriculture sector has grown but faces new policy challenges.
Introduction (Continued) n Eradicating absolute poverty and hunger, i.e. achieving MDG-1, remains a major development challenge. n 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) n 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 n Since launching of economic reforms, in China in 1979 and in India in 1991, both economies have grown rapidly. n Other selected countries: Republic of Korea, Thailand and Viet Nam also achieved rapid growth and economic transformation. n Agriculture sector played a pivotal role in the early stages of growth and is still important.
Development Experience and Trends (Contd.) n 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.) n 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 high- value products; and is commercializing.
Development Experience and Trends (Contd.) n 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 Policy lessons from selected countries 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 n Growth in the Chinese and Indian economies will create opportunities and challenges for the agriculture sector n It will expand export opportunities for certain agricultural commodities for countries in the region, but they need to be competitive. n They will also face increased competition from China on some agricultural products and textiles n India will also open export opportunities for some commodities.
Conclusions and Recommendations n Agriculture continues to be important for economic growth, poverty alleviation and food security n Give due priority and allocate more resources to agriculture and rural development to address growing inequality n Recent deceleration in agricultural growth must be addressed urgently – emphasize R&D, small farmers and sustainable natural resource management
Conclusions and Recommendations n Governments must be pro-active to facilitate agricultural restructuring in response to changing market and trade opportunities n 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