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Country contexts p_teng inclusive_asia_2015


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

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Country contexts p_teng inclusive_asia_2015

  1. 1. Comparing Country Context 08:45 – 09:15 h Roundtable, Inclusive Agribusiness 24 Sept 2015
  2. 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. 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. 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. 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. 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. 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. 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. 9. Thank you - 谢谢 - Terima Kasih - धन्यवाद - –ありがとう Maraming selamat - Merci - Gracias - 너를 감사하십시요 - Thank you;;
  10. 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. 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. 12. Governance indicators: ASEAN MACRO: Useful Enabler
  13. 13. MESO:Essential Enablers – Business Norms, Rules and Regulation Percentage of Satisfaction and Dissatisfaction across Business Factors
  14. 14. Table 13 MESO:Essential Enablers – Business Norms, Rules and Regulation