1 Presented by In-Woo Lee, Agricultural Economist, FFTC at the National Pingtong University, Taiwan On November 22, 2006 Looking at Rural Asia and Its Future Roles and Directions A Korean Agricultural Economist’s View

2 Outline of Presentation IIntroduction IICurrent Situation of Asian Agriculture IIIConditions for Future Development Ⅳ New Engines for the Sustainable Growth of Rural Asia Ⅴ Role of FFTC in the ASPAC Region and “Q & A” FFTC/ASPAC

3 I. Introduction IIntroduction Greetings and Introduction Aim of presentation To introduce FFTC activities toward helping students understand the commitment of the Taiwan Gov. to rural Asia To explain my role in order to inspire and motivate the students to broaden their own horizons for the future Focus of presentation Describe the current situation of Asian agriculture in terms of its structure and performances Show a logical path of future rural Asia and a framework for strategic planning Explain engines for sustainable growth in rural Asia FFTC/ASPACFFTC/ASPAC

4 II. Current Situation of Asian Agriculture IIntroduction IICurrent Situation of Asian Agriculture IIIConditions for Future Development Ⅳ New Engines for the Sustainable Growth of Rural Asia Ⅴ Role of FFTC in the ASPAC Region and “Q & A” FFTC/ASPACFFTC/ASPAC

5 II. Current Situation of Asian Agriculture Framework of Agriculture and Its Performances Agricultural Production Providing food, fiber, industrial resources, Conservation of natural resources, etc. Rural Economy Farmer’s household economy Regional economy Taxation Social Community Social institution Cultural identity Balancing national development Agricultural Production Providing food, fiber, industrial resources, Conservation of natural resources, etc. Rural Economy Farmer’s household economy Regional economy Taxation Social Community Social institution Cultural identity Balancing national development Performances of Agricultural Production FFTC/ASPACFFTC/ASPAC Market Policy Technology Capital Investment Capital Investment Agricultural Population Agricultural Population Cultivated Land Cultivated Land

6 II. Current Situation of Asian Agriculture Production Potential of Asian Agriculture: Cultivated Land (I) Cultivated lands in each country show stable tendency except for China China has the largest cultivated land in the world Even so, it has continuously increased its cultivated land since 1998 Its tremendous impacts on agricultural markets have been felt all over the world, especially in Asia - Consumption pattern - Changes in supply & demand - Influence over Asian and global markets Cultivated lands in each country show stable tendency except for China China has the largest cultivated land in the world Even so, it has continuously increased its cultivated land since 1998 Its tremendous impacts on agricultural markets have been felt all over the world, especially in Asia - Consumption pattern - Changes in supply & demand - Influence over Asian and global markets Cultivated Lands of Asian Countries FFTC/ASPACFFTC/ASPAC

7 II. Current Situation of Asian Agriculture Production Potential of Asian Agriculture: Cultivated Land (II) Details of the past 10 years show that China, Indonesia, Malaysia, Philippines and Vietnam have shown increases in cultivated land Meanwhile, Japan, Korea, Taiwan and Thailand have shown considerable decreases in this aspect Details of the past 10 years show that China, Indonesia, Malaysia, Philippines and Vietnam have shown increases in cultivated land Meanwhile, Japan, Korea, Taiwan and Thailand have shown considerable decreases in this aspect Detailed Changes in Cultivated Lands FFTC/ASPACFFTC/ASPAC

8 II. Current Situation of Asian Agriculture Production Potential of Asian Agriculture: Agri. Pop. (I) Agricultural populations have shown a similar pattern with that of cultivated lands. Agricultural population in China has continuously increased since the 1960s Agricultural populations have shown a similar pattern with that of cultivated lands. Agricultural population in China has continuously increased since the 1960s Agricultural Population in Asian Countries FFTC/ASPACFFTC/ASPAC

9 II. Current Situation of Asian Agriculture Production Potential of Asian Agriculture: Agri. Pop. (II) China, Indonesia, Philippines, Thailand and Viet Nam have shown steady increases in agricultural populations. On the contrary, Japan, Korea, Malaysia and Taiwan have recorded decreases in agricultural populations. China, Indonesia, Philippines, Thailand and Viet Nam have shown steady increases in agricultural populations. On the contrary, Japan, Korea, Malaysia and Taiwan have recorded decreases in agricultural populations. Agricultural Population by Countries FFTC/ASPACFFTC/ASPAC

10 II. Current Situation of Asian Agriculture Production Potential of Asian Agriculture: Capital (I) The number of tractors, as an index of agricultural mechanization and capital investment in agriculture, indicates that selected Asian countries have enhanced their productivity through farm mechanization since the 1970s - Japan already had reached its peak in the early 1990s while other countries have shown comparatively low levels in the introduction of tractors in their agricultures - China does not show any striking increasing rates compared to its own scale of cultivated land The number of tractors, as an index of agricultural mechanization and capital investment in agriculture, indicates that selected Asian countries have enhanced their productivity through farm mechanization since the 1970s - Japan already had reached its peak in the early 1990s while other countries have shown comparatively low levels in the introduction of tractors in their agricultures - China does not show any striking increasing rates compared to its own scale of cultivated land Number of Tractors in Asian Countries FFTC/ASPACFFTC/ASPAC

11 II. Current Situation of Asian Agriculture Production Potential of Asian Agriculture: Capital (II) Thailand, Korea, Vietnam and Indonesia have shown rapid increase rates in the number of tractors since the late 1980s It means Asian agriculture has come to enter into a capital-intensive farming stage Its unexpected results, farmers experienced financial bankruptcy and economic hardship during the 1997 Asian financial crisis and pushed farmers into a critical point, especially in Thailand, Korea and Indonesia Malaysia, Taiwan and Philippines have shown comparatively low rates of increase in the number of tractors Thailand, Korea, Vietnam and Indonesia have shown rapid increase rates in the number of tractors since the late 1980s It means Asian agriculture has come to enter into a capital-intensive farming stage Its unexpected results, farmers experienced financial bankruptcy and economic hardship during the 1997 Asian financial crisis and pushed farmers into a critical point, especially in Thailand, Korea and Indonesia Malaysia, Taiwan and Philippines have shown comparatively low rates of increase in the number of tractors Number of Tractors by Countries FFTC/ASPACFFTC/ASPAC

12 III. Conditions for Future Development IIntroduction IICurrent Situation of Asian Agriculture IIIConditions for Future Development Ⅳ New Engines for the Sustainable Growth of Rural Asia Ⅴ Role of FFTC in the ASPAC Region and “Q & A” FFTC/ASPACFFTC/ASPAC

13 III. Conditions for Future Development Agricultural Production in Asian Countries Since 1961, most Asian countries have shown continuous increases in agricultural production except for Japan Japan already had entered a stagnant increase rate in agricultural production since the 1970s. Taiwan and Korea has followed the decreasing trend In spite of farmers’ economic hardship, agricultural production in Asian countries has increased. Every country faces a critical point to be overcome amid rapid globalization of agricultural market Since 1961, most Asian countries have shown continuous increases in agricultural production except for Japan Japan already had entered a stagnant increase rate in agricultural production since the 1970s. Taiwan and Korea has followed the decreasing trend In spite of farmers’ economic hardship, agricultural production in Asian countries has increased. Every country faces a critical point to be overcome amid rapid globalization of agricultural market Indices of Agricultural Production FFTC/ASPACFFTC/ASPAC

14 III. Conditions for Future Development Agri. Economist’s role: How to Contribute to Future Development Assess your country’s status in the context of its agricultural development, and Prepare a strategic plan for future agricultural development. For Agricultural Economist, change is regarded as a move to another balancing point How to move the current balancing point to a desirable balancing point What variables should you control to achieve the balance? Assess your country’s status in the context of its agricultural development, and Prepare a strategic plan for future agricultural development. For Agricultural Economist, change is regarded as a move to another balancing point How to move the current balancing point to a desirable balancing point What variables should you control to achieve the balance? Assessment and Preparation FFTC/ASPACFFTC/ASPAC Upward Development Status Quo Development Downward Development Goals & Targets Agriculture PastPresentTarget Year External Conditions Internal Conditions Figure 3-1. Logical Development Path of Agriculture

15 III. Conditions for Future Development Key Words to a Strategic Planning for Future Development Key Words and Constraints FFTC/ASPACFFTC/ASPAC Goals & Targets - Industrial, Rural Economics, Social Community - Food Security, Food Safety, Sustainable Growth External Conditions - Markets, Technologies, Policies Internal Conditions - Arable Land, Agri. Population, Capital Investment Policy Measures - Individual, Organizational, Legal and Institutional Constraints - Continuous Growth of Agriculture since WWII - Widening Gap b/w Farmers Upward Development Status Quo Development Downward Development Goals & Targets Agriculture PastPresentTarget Year External Conditions Internal Conditions

16 Ⅳ. New Engines for the Sustainable Growth of Rural Asia IIntroduction IICurrent Situation of Asian Agriculture IIIConditions for Future Development Ⅳ New Engines for the Sustainable Growth of Rural Asia Ⅴ Role of FFTC in the ASPAC Region and “Q & A” FFTC/ASPACFFTC/ASPAC

17 Ⅳ. New Engines for the Sustainable Growth of Rural Asia Past and Present Engines for Development FFTC/ASPACFFTC/ASPAC Past - Designed to accumulate more input resources to be utilized in the agricultural field - More production promises more income, finally focusing on input Present - Conditions inside and outside agriculture have changed - More precise and highly-developed engines are needed, focusing on reallocating resources US and EU: renovation of old rural development programs - reallocating the combination of agricultural production factors - Externally improve farmers’ market access capacities thru trade negotiations, WTO, FTA - Internally promote volunteer groups to commit to the revitalization of rural economies

18 Ⅳ. New Engines for the Sustainable Growth of Rural Asia Examples of New Engines in Asian Countries FFTC/ASPACFFTC/ASPAC Japan - JA-Jenzhu promotes a social movement that links “People’s Diet and Agriculture” Korea - NACF has launched the “Caring for Rural Community” movement since 2005 Taiwan - Taiwanese government has started the “New Agriculture Movement” Common Interest in these countries - Each of them envisions that dietary connection, mutual coexistence, and young farmers will serve as the new engine for future agricultural development in each country

19 V. Roles of FFTC in the ASPAC Region and “Q & A” IIntroduction IICurrent Situation of Asian Agriculture IIIConditions for Future Development Ⅳ New Engines for the Sustainable Growth of Rural Asia Ⅴ Role of FFTC in the ASPAC Region and “Q & A” FFTC/ASPACFFTC/ASPAC

20 V. Roles of FFTC in the ASPAC Region and “Q & A” Mission of FFTC/ASPAC Established in 1970 as an international information center in the Asian and Pacific Region Mission Collect and disseminate technical information on agricultural production, in order to achieve increased output and higher incomes for small-scale farmers in the region Organizational Structure - Executive Board Meeting - Working Group Meeting - Technical Advisory Committee - Technical Staff and - International Cosponsor Institutions Established in 1970 as an international information center in the Asian and Pacific Region Mission Collect and disseminate technical information on agricultural production, in order to achieve increased output and higher incomes for small-scale farmers in the region Organizational Structure - Executive Board Meeting - Working Group Meeting - Technical Advisory Committee - Technical Staff and - International Cosponsor Institutions FFTC/ASPACFFTC/ASPAC FFTC/ASPACFFTC/ASPAC

21 V. Roles of FFTC in the ASPAC Region and “Q & A” Major Activities of FFTC/ASPAC Regional Field Surveys For 35 years, 21 surveys Seminars and Workshops 185 Seminars and Workshops Training Courses 46 Training Courses Field Demonstration Projects 9 Field Demonstrations Publications 549 Extension Bulletins, 165 Technical Bulletins, 62 Books, 145 Issues of Newsletter 34 Annual Reports, 121 Practical Technology Leaflets, etc. Websites and Database Strengthen Regional Agri. Cooperation Regional Field Surveys For 35 years, 21 surveys Seminars and Workshops 185 Seminars and Workshops Training Courses 46 Training Courses Field Demonstration Projects 9 Field Demonstrations Publications 549 Extension Bulletins, 165 Technical Bulletins, 62 Books, 145 Issues of Newsletter 34 Annual Reports, 121 Practical Technology Leaflets, etc. Websites and Database Strengthen Regional Agri. Cooperation Major Activities of FFTC/ASPAC FFTC/ASPACFFTC/ASPAC

22 V. Roles of FFTC in the ASPAC Region and “Q & A” Future Directions: FFTC Strategic Plan for FFTC/ASPACFFTC/ASPAC TARGETED TOPICS TARGETED TECHNOLOGY TECHNOLOGIES FOR COLLECTION AND TRANSFER Enhanced Information and Technology Collection and Dissemination/Transfe r STRATEGIC MISSION Increased Income and Improved Livelihood of Small-scale Farmers Improved Food Safety Enhancement of Environment-Friendly Technology Sustainable Use of Natural Resources OPERATIONAL STRATEGY FFTC WORK PROGRAM Status and roles of agriculture and needs of farmers have changed -Review existing strategic plan - Outlining four strategic missions and plan for

23 Thank you for your attention! 謝謝您 ! FFTC/ASPACFFTC/ASPAC