enabling policies inclusive asia_2015
TRANSCRIPT
Themes Sessions: Enabling Policies for Inclusive
Business14:30 – 17:00 h
Roundtable, Inclusive Agribusiness23 Sept 2015
• Policies as enablers• “Essential” background
Scope
• Which policy domains are most important for creating direct and indirect incentives for more and more rewarding smallholder engagement in agricultural markets?
• What specific examples of policies influencing inclusive agribusiness can we draw on?
• What instruments do governments have at their disposal?
• What policy-informing and influencing processes are relevant for priority domains and instruments?
• What constructive next steps could Grow Asia take to support policy dialogue and better understanding of policy issues?
Policies as enablers: Focus questions
Enablers for Inclusiveness
Investment Financial Services
Technology and R&D Transfer and Distribution
Infrastructure Physical and Digital
Connectivity
Business Linkages Upstream and
downstream links
Labor Capacity Human Resource Development
Country-specific Political Environment
Business Climate Norms, Rules and
Regulations
Land Tenure and Property Rights
National and Regional Policies
Immediate Enablers
Useful Enablers
Necessary Conditions
Sufficient Conditions
Essential Enablers
Micro LevelEnablers specific to agri-food
sub-sectors
Macro LevelEnablers specific to country
or region
Enablers of Inclusive Agribusiness
Figure 2. Conceptual Framework for the Enablers of Inclusive Agribusiness
Scope of supportive policiesPolicies which foster social equity and inclusion of smallholder farmersPolicies which promote market access (“Free market”)Policies aimed at investment liberalizationPolicies which support good governancePolicies which incentivize companies to include smallholders
Essential Enablers at macro-level: Policy
A. Economic management Macroeconomic policy that is business-friendly Fiscal policy Debt policy
B. Structural Trade Financial Sector Business regulatory
Essential Enablers at macro-level: Policy
Types of policies
D. Social inclusion / equityGenderEquity (public resource)Building human resourcesSocial protectionSustainability of environmental institutions
B. Public sector management & institutionsProperty rights (rule based governance)Quality of budgetary & financial managementEfficiency of revenue mobilizationQuality of public administrationTransparency, accountability & corruption
Essential Enabler at macro-level: Policy
Types of policies
Governance indicators: ASEAN
Agribusiness models that enable inclusiveness
SupplyChain
Farming & Food Production
Processing & Post Harvest
Distribution, Wholesale & Retail
Marketing & Sales
Contract farming
(Nucleus estate & Multi partite schemes ++++
Contract farming between processing & manufacturing firms and small farmers ++++
Farmer-owned business links with agribiz ++
Upstream links between agribiz and smallholders ++++
Land concession
arrangements +++
Farmer-owner businesses & cooperatives’ links to agribusiness firms ++
Agribiz links with smallholder farmers ++++
Downstream links between agribbiz and smallholders ++
Management contracts
(Sharecropping) ++
“Inc
lusi
ve”
arra
ngem
ents
fo
r sm
all f
arm
ers
(Key: ++++ High adoption; +++ Moderate; ++ Low; + Infrequent)
Country Sector / Industry 1990 1995 2000 2005 2010 2011
Brunei Agriculture, hunting, forestry, fishing 0.97 1.16 1.02 0.95 0.76 0.64
Cambodia Agriculture, hunting, forestry, fishing 50.12 51.44 37.84 32.40 36.02 36.68
Indonesia Agriculture, hunting, forestry, fishing 17.55 15.36 15.61 13.13 15.34 14.72
Lao PDR Agriculture, hunting, forestry, fishing 45.06 41.81 43.48 36.25 29.72 28.37
Malaysia Agriculture, hunting, forestry, fishing 14.89 12.61 8.45 8.36 10.49 11.99
Myanmar Agriculture, hunting, forestry, fishing 57.26 59.99 57.24 46.69 36.36 38.24
Philippines Agriculture, hunting, forestry, fishing 19.14 18.89 13.97 12.66 12.31 12.78
Singapore Agriculture, hunting, forestry, fishing 0.34 0.16 0.10 0.05 0.03 0.03
Thailand Agriculture, hunting, forestry, fishing 10.01 9.10 8.52 9.23 10.86 11.63
Vietnam Agriculture, hunting, forestry, fishing 38.74 27.18 24.53 20.97 20.58 22.02
ASEAN Agriculture, hunting, forestry, fishing 14.85 13.07 11.54 10.80 12.68 13.08
Source: UNCTAD Stat (2013)
BACKDROPASEAN: The Structure of Economy by Industry (in percent to total GDP)
Top Agri-Food Players in ASEAN
1 Demographics –Population growth, Urbanization, Growing middle class (increased income)Declining & ageing farmer population
2 Diet changes 3 Declining performance of agriculture4 Environmental degradation/ Loss of land and water resources5 Climate change6 Increase in oil prices/biofuel expansion7 Rapid transformation of supply chains8 ASEAN Economic Community 20159 Urban and Peri-Urban Agriculture (UPA)10 Biotechnology11 Farmers as Entrepreneurs (away from subsistence)
Change agents in the agriculture-food security landscape
Country Urban population, % of total population
1990 2000 2012Brunei 68.6 71.2 76.0 (2011)
Cambodia - 16.0 22.0
Indonesia 30.9 42.1 49.8 (2010)
Lao PDR 15.4 22.0 34.2 (2011)
Malaysia 51.1 (1991) 62.0 72.4
Myanmar 24.8 29.1 30.8
Philippines 51.9 (1993) 48.0 48.9 (2011)
Singapore 100.0 100.0 100.0
Thailand 18.0 31.1 45.1
Vietnam 19.5 24.2 31.9
UrbanizationSource: ADB Key Indicators for Asia and the Pacific. 2013
Asia by 2050 will be >54% urban; ASEAN > 50% in 2013
Index 1DUPONT-Economist Intelligence Unit,
Global Food Security Index
Quality & Safety•Diet diversification•Nutritional standards•Micronutrient availability•Protein quality•Food safety
Availability•Sufficiency of supply•Public expenditure on agricultural R&D•Agricultural infrastructure•Volatility of agricultural production•Political stability risk•Corruption•Urban absorption capacity•Food loss
Affordability•Food consumption as % of household expenditure•% population under poverty line•GDP per capita @PPP•Agriculture import tariffs•Food safety net programmes•Access to financing for farmers
“Objective is to measure which countries are most and least vulnerable to food insecurity.”
Economist Intelligence Unit, Global Food Security Index
Country Rank GFSI Score Country Rank GFSI ScoreUSA 1 89.3 Indonesia 74 46.7
New Zealand 13 82.8 India 68 50.9
Australia 9 83.8 Myanmar 78 44.0Singapore 2 88.2 Pakistan 77 45.7
Japan 21 77.4 Bangladesh 89 37.4
S. Korea 24 74.8 Nepal 85 40.5
Malaysia 34 69.0 Cambodia 96 34.6
China 42 64.2Thailand 52 62.0
Sri Lanka 63 53.7 Canada 7 84.1
Vietnam 65 53.4 Brazil 36 67.4Philippines 72 49.4 Argentina 37 67.1
Congo (DR) 105 30.1
“Objective is to measure which countries are most and least vulnerable to food insecurity.”
2014 May 2015
Index 2: The “Rice Bowl Index” (RBI)
SYNGENTA & FRONTIER STRATEGY GROUP
RICE BOWL INDEX: Full Year Update 2012-2013Countries with relatively high Robustness (Score >50): Australia, Japan, New Zealand, Taiwan
Hungry people as an indicator of food insecurity
FAO 2014: State of Food Insecurity in the World 2013
1 in 10 people inASEAN is hungry!
How food secure are we?
Regional Programmes
ASEAN– ASEAN Integrated Food Security (AIFS) Framework – Strategic Plan of Action on Food Security in the ASEAN
Region (SPA-FS)– ASEAN Plus Three Emergency Rice Reserve (APTERR)– ASEAN Food Security Information System (AFSIS)
– ASEAN Multi-sectoral Framework on Climate Change: Agriculture and Forestry towards Food Security (AFCC)
– ASEAN+3 Comprehensive Strategy on Food Security and Bioenergy Development (APTCS-FSBD) Framework
– Strategic Plan of Action on Food and Energy Security (SPA-FES)
Structure of ASEAN Cooperation in Food, Agriculture and ForestryStructure of ASEAN Cooperation in Food, Agriculture and Forestry
ASEAN Ministers of Agriculture and Forestry (AMAF)
SOM-AMAF
AWG on Halal Food *
ASEAN Food
Security Reserve Board *
ASWG on Agric.
Training &
Extension
ASWG on Agric.
Coopera-tives
ASWG on Crops
ASWG onLivestock
ASWG on Fisheries
ASEAN Senior
Officials on Forestry(ASOF)
Joint Committee onASEAN Coop. & Joint Approaches in Agric. &
Forest ProductsPromotion Scheme
ACEDACBoard *
EWG on Harmonization
of Phyto-sanitary Measures
EWG onHarmonization
of MRLs of Pesticides
FCG on ASEAN-
SEAFDECCollaboration
AEG on Herbal and Medicinal
Plants
AEG on Forest Product
Development
AEG on CITES
NFPWG/ Industrial Clubs
CarrageenanCocoa
Coconut
Vegetable Oil
Forest Products
Coffee
Tea
Pepper
Peas & BeansTapioca
ASEAN Focal Point on
Veterinary Product
ATF on Codex
Note:SPS: Sanitary and PhytosanitaryARASFF: ASEAN Rapid Alert System for Food and FeedATF: ASEAN Task ForceAWG: ASEAN Working GroupASWG: ASEAN Sectoral Working GroupEWG: Experts Working GroupAEG: ASEAN Experts GroupNFPWG: National Focal Point Working GroupTEG : Technical Experts GroupAFP : ASEAN Focal PointsATWG : ASEAN Technical Working GroupATF : ASEAN Task ForceSOM : Senior Officer Meeting(*) : Supported by a dedicated secretariat
As of 19 February 2014
AWGon Pan ASEAN
Timber Certification
AEWG on International
Forest Policy Process
ATF onHPAI
ATWG on Agric.
Research &
Develop-ment
TF on ASEAN
Standards for Horticultural
Produce
ASEAN AVRDC
Regional Network
(AARNET) Steering
Committee *
ASEAN Social Forestry
Network *
ATF on Genetically
Modified Food
Testing Network *
ASEAN Wildlife Enforcement
Network (ASEAN WEN)*
Tuna
ASEAN Fisheries
Consultative Forum *
EWG on ASEAN
GAP
ASEAN Shrimp Alliance *
ASEAN SPS Contact Points
ACCAHZ Preparatory Committee
ad hoc groups:•ASEAN ad hoc
Veterinary Epidemiology
Group•ASEAN ad hoc Communication
Group for Livestock•ASEAN Laboratory
Directors Forum
ARASFF *
ATF on Organic
Agriculture