Slides from a presentation @Inclusive Agribusiness Southeast Asia Roundtable September 23-24 2015, Ho Chi Minh City, Vietnam

1. Comparing Country Context
08:45 – 09:15 h
Roundtable, Inclusive
Agribusiness
24 Sept 2015

2. Agribusiness models that enable inclusiveness
along the supply chain
Supply
Chain
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
) ++
“Inclusive”arrangements
forsmallfarmers
(Key: ++++ High adoption; +++ Moderate; ++ Low; + Infrequent)

3. 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 Level
Enablers specific to agri-food
sub-sectors
Macro Level
Enablers specific to country
or region
Enablers of Inclusive Agribusiness
Figure 2. Conceptual Framework for the Enablers of Inclusive Agribusiness

4. MACRO Essential Enabler: Country Policy and Institutional
Assessment across selected ASEAN Countries (2013)
CountryPolicy& InstitutionalAssessment Criteria Cambodia Indonesia* LaoPDR Myanmar Vietnam
Economicmanagement clusteraverage 3.8 4.3 3.3 3.7 4.2
Macroeconomic management rating 4.0 4.5 3.5 3.5 4.0
Fiscal policy rating 3.5 4.0 3.5 3.5 4.5
Debt policy rating 4.0 4.5 3.0 4.0 4.0
Structuralpoliciesclusteraverage 3.7 3.7 3.5 2.8 3.5
Trade rating 4.5 4.5 4.5 3.5 4.0
Financial sector rating 3.0 3.5 2.5 2.5 3.0
Business regulatory environment rating 3.5 3.0 3.5 2.5 3.5
Policiesforsocialinclusion/equityclusteraverage 3.4 3.5 2.6 4.0
Gender equality rating 4.0 3.5 4.0 3.0 4.5
Equity of public resource use rating 3.5 4.0 4.0 2.5 4.5
Building human resources rating 4.0 3.5 3.5 3.0 4.0
Social protection rating 2.5 2.5 2.0 3.5
Policy and institutions for environmental sustainability rating 3.0 3.0 3.5 2.5 3.5
Publicsectormanagement andinstitutionsclusteraverage 2.8 3.2 3.1 2.7 3.5
Property rights and rule-based governance rating 2.5 2.5 3.0 2.5 3.5
Quality of budgetary and financial management rating 3.5 3.5 3.5 3.0 3.5
Efficiency of revenue mobilization rating 3.5 3.5 3.5 3.0 4.0
Quality of public administration rating 2.5 3.5 3.0 2.5 3.5
Transparency, accountability, and corruption in the public sector rating 2.0 3.0 2.5 2.5 3.0
Notes:
*Indonesia isbasedon2006latest data
EachCPIAcriteria arescoredbasedona 6-point ratingscale(1=low to6=high)
1ratingcorrespondstoveryweakperformanceand6ratingtoa verystrongperformance
Source:WorldBankDatabase

5. • The “essential enablers” in Vietnam appear to be supportive policy
changes at the national level, accompanied by liberalization in rules
and regulations which give more empowerment to private
enterprise, and at the micro level, some semblance of land rights for
small farmers.
• Vietnam has also seen rapid growth in its “immediate enablers” at all
three levels and indeed the digital revolution in Vietnam has
penetrated to the most remote rural areas. Innovative models of
technology transfer are evident especially for important crop-based
enterprises like the rice-based ones in the Mekong delta.
• Consistency in political support for innovating the agricultural sector
has been an additional “useful enabler”, which at the meso level,
has encouraged private-public partnerships to be operationalized.
VIETNAM

6. • “Essential enablers” - liberalized and development-oriented policies
that promote growth in trade and investments.
• Such policies have eased the course towards “important enablers”
such as higher foreign investment and a more business-enabling
climate in the country.
• Developments in agrarian reform and increased investment have
facilitated agricultural research and development through
organizations like PhilRice and a host of other state-supported R&D
institutions. Technological innovations have benefited smallholder
farmers
• Higher investment has also strengthened “useful enablers” at meso
and micro level, particularly business linkages with large
multinational agri-food companies and capacity building of small
farmers.
PHILIPPINES

7. • Myanmar’s shift to market-oriented policies appears to be the most
important “essential enabler” for smallholder inclusion in
agribusiness chains. The opening up to markets facilitated freer flow
of foreign and domestic enterprises, which is a definite boon for an
agriculture-based economy such as Myanmar.
• The country’s policies in support of economic and political
liberalization have also opened doors for regional support towards
macro level “important enablers” such as physical infrastructure.
• Easing of controls across the different business activities in the
value chain, namely production, post-harvest, distribution and
marketing stages had encouraged growth in the export market and
fostered the burgeoning of “useful enablers” particularly smallholder
linkages across the value chain.
MYANMAR

8. • The “essential enablers” appear to be the country’s policy thrust on
agriculture development, self-sufficiency and investment
liberalization.
• These policy goals have prompted rapid development of “important
enablers” across all stages, more notably in the improvements in
financial and physical infrastructure as well as efficient transfer of
agro-technology innovations to smallholders. This has led to
enhanced capacity of farmers and increased access to different
markets. Key achievements of these policy reforms are the spillover
benefits of the Green Revolution in the advancement of rice
technology in the country.
• The stronger business-enabling environment facilitated by
liberalized investment policies have provided the means to promote
“useful enablers” such as smallholder linkages with large
multinational agribusinesses.
INDONESIA

9. Thank you - 谢谢 - Terima Kasih
- धन्यवाद - –ありがとう Maraming
selamat - Merci - Gracias - 너를
감사하십시요 - Thank you
Ispaul.teng@ntu.edu.sg;
paul.teng@nie.edu.sg
Ispaul.teng@ntu.edu.sg;
paul.teng@nie.edu.sg

10. 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

11. D. Social inclusion / equity
Gender
Equity (public resource)
Building human resources
Social protection
Sustainability of environmental institutions
B. Public sector management & institutions
Property rights (rule based governance)
Quality of budgetary & financial management
Efficiency of revenue mobilization
Quality of public administration
Transparency, accountability & corruption
Essential Enablers at macro-level:
Policy
Types of policies

12. Governance indicators: ASEAN
MACRO: Useful Enabler

13. MESO:Essential Enablers – Business Norms, Rules
and Regulation
Percentage of Satisfaction and Dissatisfaction across Business Factors

14. Table 13
MESO:Essential Enablers – Business Norms, Rules
and Regulation