GEOG 240 Topic 4: Agricultural and Industrial Development Francis Yee Camosun College

Abbreviations  GNI – Gross National Income  GDP – Gross Domestic Product  FDI – Foreign Direct Investment  NIE – Newly Industrialized Economies  ASEAN – Association of Southeast Asian Nations  G7 – Group of Seven  G20 – Group of Twenty  GPN – Global Production Network

Asia-Pacific Agricultural and Industrial Development I.Agricultural Systems, Growth and Food Security II.Food Security III.Patterns of Industrialization IV.Industrial Development Factors

I. Agricultural Systems, Growth and Food Security A.Agricultural Systems 1.Shifting Cultivation 2.Sedentary Farming 3.Green Revolution 4.Plantation B.Agricultural Growth, Output and Employment C.Food Security

1. Shifting cultivation  a slash and burn method,  rotation of land, and  common in forested and upland areas;  problems of deforestation and forest fire,  declining in most places due to development, Raising of livestock is an important agricultural activity in Tibet, China (Photo by F. Yee, 2007)

2. Sedentary farming (Rice production)  intensive use of land, high productivity,  small plots, use of machines not common,  increasing use of chemical fertilizers and pesticides,  rice production in most parts of Asia Rice farming in Burma (Photo by F. Yee 2005

3. Green Revolution  high-yielding seeds allow an increase in production of rice, wheat, and corn  Wide application of fertilizers and irrigation water;  increase landlessness due to rising costs of inputs Green revolution was implemented in many parts of China. (Photo of farms in Sichuan by F. Yee, 2007)

4. Plantation  production of single crop for exports,  introduced during colonial times,  use of imported labour common,  e.g. oil palms Tea and tobacco now replace opium production the Golden Triangle, borders between Thailand, Laos and Myanmar (Photo by F. Yee, 2005)

B 1. Agricultural Growth in Asia: higher than global average

2. Agricultural Output: the share of GDP by agriculture declined in most Asian countries and reduced its importance in the economy below ¼ in most countries.

3. Agricultural Employment: major economic sector in absorbing employment but its share of total is declining; contributed to >2/5 of employment in SE Asia

II. Food Security A.Patterns of Hunger B.Who are the Hungry? C.Factors of Food Shortages Rapid decline of farmlands occurred in the Pearl River Delta region due to industrialization and urbanization (Photo by F. Yee, 2005)

A. Patterns of Hunger

1. Undernourished Population: below the minimum of 1800 calories per day a)11% of total population (>200 million) in E and SE Asia (below the developing countries’ average of 16%) b)Varied from <5% in S. Korea to 38% in Timor. c)Most countries experienced a drop in the proportion of undernourished population

2. Hunger Index: a combined indicator of % of children undernourished, % of children under 5 years of age undernourished, and mortality rate of children under five. a)Low in S. Korea, Singapore, Japan, b)moderate in China and Malaysia, c)7 of the 10 SE Asian Countries have a serious or alarming hunger problem. (Weightman, 2012)

3. Regional Variations – uneven hunger levels at local villages and regions  High incidents of hunger occurred in : a)Places with frequent tropic storms and flooding (e.g. central Philippines) b)Tribal and hilly regions (e.g. N. Thailand) c)Drought-prone and poor soil (e.g. W China) d)Remote areas with poor transport (e.g. Tibet)

B. Who are the Hungry? 1.Rural people - children in rural areas are more than twice as likely to be underweight while income for rural women was too low to provide enough food for the family 2.Migrant workers – unable to pay for rising food prices due to low pay 3.Tribal groups – loss of access to their traditional lands and forests and other resource on which they depended for food and livelihood 4.Low social class – often being discriminated against and unable to have adequate access to food Children in rural Burma has a high hungry index (photo by F. Yee 2005 in Tachilek, Burma)

C. Factors of Undernourishment 1.Global economic crisis: many people suffered from unemployment and loss of income which rendered them unable to buy food 2.Higher food prices: global supply are dwindling and prices increased by 50%, many poor people were priced out of the food market and forced to sell their land 3.Reduced crop yields – due to global warming and unsustainable practice 4.Changes in Production – a shift away from farming for human consumption to crops for biofuels and cattle feed (Weightman 2012)

III. Patterns of Industrialization in Asia A.Industrial Growth B.Industrial Employment C.De-industrialization D.Export processing zones E.High- tech industry Workers’ housing in a Batam industrial park, Indonesia (Photo by F. Yee, 2007)

A. Industrial Growth: higher growth than other sectors, moderate to high rates of growth in most countries

Economic Structure – declining share of industry in Japan and S. Korea but rising in Chin and Vietnam

B. Industrial Employment  New international division of labour - relocation of industrial jobs from developed countries to NIEs 1980s-1990s – the ASEAN-4 (Thailand, Malaysia, Philippines, and Indonesia) 1990s on – China, Vietnam  Labor intensive industry & employment in NIEs Low capital and technology requirements: textiles, clothing, footwear, and electronics assembly

C. Export Processing Zones  Objectives: attract foreign investment Generate employment Transfer of technology Increase exports of industrial products  Policies: tax incentives, serviced lands and buildings utilities and transport infrastructure, reduced government red-tape  Results major centre of industrial production and exports. provided large #of employment opportunities Generated significant foreign exchange earnings through exports  “Successful” Examples Taiwan, South Korea, Malaysia, Vietnam, China, etc. Shenzhen was established as one of China’s Special Economic Zones in 1979 (Photo by F. Yee, 2007)

D. High-tech Industry  High-tech Industry: some NIEs attempted to upgrade from labour intensive to high- tech industry (e.g. computer chips) since the 1980s as labour costs increase  High-tech initiatives: Science Park in Singapore Super Multimedia corridor in Malaysia Beijing High-tech Park Super multimedia corridor was promoted by Malaysia to promote high tech industry located S of Kuala Lumpur (Photo by F. Yee, 2007)

IV. Industrial Development Factors A.Industrial Policies B.Role of State C.Cultural and Social Factors D.Foreign Trade & Investment

A. Industrial Policies  Industries received high priority for government investments  Industrialization became a national goal and means to achieve (Western) modernization

Singapore’s Industrial Strategy  “Intelligent Island” – develop a network of fiber-optic & digital communication system  Computer industry – a key producer of computers;  TNCs TNCs employing 60% of Singapore’s workforce and produce 80% of its exports  Industrial hinterland - investments in China, Malaysia and Indonesia as part of Singapore’s industrial hinterland Science Park in Singapore (Photo by F. Yee 2007)

B. Role of State Active involvement by government in industrial development  Taiwan (government controlled enterprises);  S. Korea (close relationship with chaebols);  Japan (led by Ministry of International Trade and Industry) Singapore, an Intelligent Island, increasingly focused on high-tech development. (Photo by F. Yee, 2007)

China’s Open Door Policy and Industrialization  Open Door policy – adopted to encourage foreign investment and trade in 1978  Special Economic Zones - were created to promote foreign investment, increase employment, accelerate technology transfer and facilitate exports.  Coastal Cities: were opened since 1984 to expand the open door policy  FDI: a cumulative total of almost US$300 billions of FDI were received and millions of new industrial jobs were created An electronics factory in Dongguan, China (Photo by F. Yee, 2005)

C. Cultural and Social Factors  Rapid industrial growth was attributed to: The presence of a highly disciplined work force Extensive influence of Confucianism: hard working and conforming The provision of basic education to the general public, including industrial workers A group of university graduates in Singapore (photo by F. Yee 2007)

D. Foreign Trade and Investment  Neo-liberal approach: encourage private business and welcome multinational corporations  Foreign trade and investment were strongly supported by government and World Trade Organization A Japanese IT company in Singapore’s Science Park (Photo by F. Yee, 2007)

Malaysia industrialization  An outward looking strategy was adopted since 1980s  Free trade zones were established to encourage FDI  Manufacturing is the largest employment sector (50%)  Multi-media super corridor was constructed in Cyberjaya (S of Kuala Lumpur) to promote knowledge-intensive industries A new university in Cyberjaya, Malaysia to support high tech development (Photo by F. Yee, 2007)

Readings  Weightman, ch. 5.