Agricultural Development Economics Division (ESA) Food and Agriculture Organization of the United Nations Rice public expenditure policies in Asia David Dawe Agricultural Development Economics Division and Regional Office for Asia and the Pacific, FAO Bangkok, Thailand, 28 November 2013

Bangkok, Thailand 28 November Regional Office for Asia and the Pacific Food and Agriculture Organization of the United Nations Agricultural Development Economics Division (ESA) Agricultural spending as % of agricultural GDP Ag spending has increased in recent years Source: IFPRI SPEED database

Bangkok, Thailand 28 November Regional Office for Asia and the Pacific Food and Agriculture Organization of the United Nations Agricultural Development Economics Division (ESA) Agricultural spending as % of agricultural GDP Ag spending has increased in recent years Source: IFPRI SPEED database

Bangkok, Thailand 28 November Regional Office for Asia and the Pacific Food and Agriculture Organization of the United Nations Agricultural Development Economics Division (ESA) Sources of public agricultural spending  National government accounts for about 80 percent of ag expenditures in Indonesia and the Philippines, 67 percent in Cambodia  Donor spending is less important than national government spending  Both national government and donor spending have been increasing in recent years

Bangkok, Thailand 28 November Regional Office for Asia and the Pacific Food and Agriculture Organization of the United Nations Agricultural Development Economics Division (ESA) Impacts of public expenditures on growth in India But the quality of public spending is what matters most Source: Fan et al (2008)

Bangkok, Thailand 28 November Regional Office for Asia and the Pacific Food and Agriculture Organization of the United Nations Agricultural Development Economics Division (ESA) Composition of agricultural spending in the Philippines National rice program21.1%18.4%13.1% National corn program2.0%2.5%2.4% Other banner programs7.5%9.5%6.9% Irrigation46.0%38.6%50.4% Farm to market roads13.0%12.5%11.6% Other expenses11.4%19.0%16.0% Department of Agriculture, OSEC budget, million Pesos13,45633,42351,735

Bangkok, Thailand 28 November Regional Office for Asia and the Pacific Food and Agriculture Organization of the United Nations Agricultural Development Economics Division (ESA) Composition of agricultural spending in Cambodia Share of spending in 2007 Share of spending in 2009 % increase in 2009 comp. to 2007 Irrigation27.7%37.3%87% Roads40.5%34.4%18% Other agriculture 31.8%28.4%24% Total, $ billion %

Bangkok, Thailand 28 November Regional Office for Asia and the Pacific Food and Agriculture Organization of the United Nations Agricultural Development Economics Division (ESA) Composition of agricultural spending in Indonesia Share of spending in Share of spending in % increase of spending in 2009 comp to 2006 Fertilizer subsidy15.6%28.9%485% Seed subsidy and Raskin20.8%25.9%191% Irrigation24.7%17.1%21% Research and development2.0%1.1%28% Other expenses36.9%27.0%74% Agricultural budget, RP billion30,29058,31093%

Bangkok, Thailand 28 November Regional Office for Asia and the Pacific Food and Agriculture Organization of the United Nations Agricultural Development Economics Division (ESA) Advantages and disadvantages  Increased growth and poverty reduction if money is spent on agricultural R&D, education and rural roads  Higher short-term political benefits if money is spent on private goods/subsidies Expenditures on public goods

Bangkok, Thailand 28 November Regional Office for Asia and the Pacific Food and Agriculture Organization of the United Nations Agricultural Development Economics Division (ESA) Thank you for your kind attention