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March 2000 - How location, natural resources, and different policies toward the elite's preemption of unused land shaped the historical development of different agrarian structures across Southeast Asia, conditioning agricultural growth performance until today. According to Myint's vent-for-surplus theory, development of the economies of Indonesia, the Philippines, and Thailand from the nineteenth century on took natural advantage of large tracts of unused empty land with low population density and abundant natural resources of the type typically found in Southeast Asia and Africa at the outset of Western colonization. When these economies were integrated into international trade, hitherto unused natural resources (primary commodities the indigenous people had not valued) became the source of economic development, commanding market value because of high import demand in Western economies. The major delta of Chao Phraya River was the resource base of vent-for-surplus development with rice in Thailand; tropical rain forests filled that role in Indonesia and the Philippines with respect to the production of tropical cash crops. This basic difference underlay differences in distribution of farm size: the unimodal distribution of peasants or family farms in Thailand and the coexistence of peasants and large estate farms or plantations specializing in tropical export crops in Indonesia and the Philippines. Differences in agrarian development were also shaped by different policies toward the elite's preemption of unused land. Under Spanish colonialism, the elite preempted unused land in the Philippines wholesale, bifurcating land distribution between noncultivating landlords and sharecroppers in lowland rice areas, and between plantation owners and wage laborers in upland areas. In Indonesia, the Dutch government granted long-term leases for uncultivated public land to foreign planters, but prevented alienation of cultivated land from native peasants, to avoid social instability. In Thailand, concessions were granted for private canal building, but the independent kingdom preserved the tradition of giving land to anyone who could open and cultivate it. Relatively homogeneous landowning peasants dominated Thailand's rural sector. As frontiers for new cultivation closed, the plantation system's initial advantage (large-scale development of land and infrastructure) began to be outweighed by its need to monitor hired labor. The peasant system, based on family labor needing no supervision, allowed Thailand's share of the world market in tropical cash crops to grow, as Indonesia and the Philippines lost their traditional comparative advantage. Moreover, land reform in the Philippines made land markets inactive, with resulting distortions in resource allocation and serious underinvestment in agriculture. This paper - a product of Rural Development, Development Research Group - is part of a larger effort in the group to review rural development in Asian countries. The author may be contacted at hayami@sipeb.aoyama.ac.jp.
Agricultural Industry --- Agricultural Production --- Agricultural Trade --- Agriculture --- Cash Crops --- Common Property Resource Development --- Communities & Human Settlements --- Crop --- Crops and Crop Management Systems --- Cultivated Land --- Cultivation --- Ecological Zones --- Environment --- Export Crops --- Farm --- Farms --- Forestry --- Forests and Forestry --- Green Revolution --- Industry --- International Economics & Trade --- Land Distribution --- Land Use and Policies --- Macroeconomics and Economic Growth --- Natural Resources --- Plantations --- Political Economy --- Poverty Reduction --- Produce --- Rice --- Rice Areas --- Rice Production --- Rural Development --- Rural Development Knowledge and Information Systems --- Rural Land Policies for Poverty Reduction --- Shifting Cultivation --- Tropical Products --- Tropical Rain Forests
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Policies to tax farmers in low-income countries and policies to subsidize them in high-income countries have been identified as a major source of the disequilibrium of world agriculture. Recently, as many high-performing economies in Asia advanced from the low-income to the middle-income stage through successful industrialization, they have been confronted with the problem of a widening income gap between farm and non-farm workers corresponding to rapid shifts in comparative advantage from agriculture to manufacturing. In order to prevent this disparity from culminating in serious social and political instability, policies have been reoriented toward supporting the income of farmers. At the same time, governments in middle-income countries must continue to secure low-cost food for the urban poor who are still large in number. The need to achieve the two conflicting goals under the still weak fiscal capacity of governments tends to make agricultural policies in the middle-income stage tinkering and ineffective. Greater research inputs in this area are called for in order to prevent the growth momentum of high-performing economies in Asia from being disrupted by political crises.
Agriculture --- Comparative advantage --- Consumers --- Disequilibrium --- Economic growth --- Economic Theory and Research --- Elasticity --- Emerging Markets --- Food and Beverage Industry --- Income --- Industrialization --- Industry --- Labor Policies --- Macroeconomics and Economic Growth --- Political economy --- Poverty Reduction --- Private Sector Development --- Rapid industrialization --- Rural Development --- Rural Poverty Reduction --- Social Protections and Labor
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Hayami and Godo address the major question of why a small set of countries has achieved a high level of affluence while the majority remain poor and stagnant, and looks critically at the social and cultural restraints which need to be overcome.
Development economics --- Economie du développement --- Economic development.
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Agriculture --- Economic aspects --- Agronomy --- Economic aspects. --- #ABIB:dd.prof.E.TOLLENS --- Agrarian question --- Agribusiness --- Agricultural economics --- Agricultural production economics --- Production economics, Agricultural --- Land use, Rural --- Aspect économique --- Social Sciences and Humanities. Agricultural Economics -- Agricultural Economics (General) --- ALLW. --- Agriculture - Economic aspects
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