Overview of the agricultural modernization in Southeast Asia

Book excerpt: Despite the importance of Southeast Asia (SEA) region in the world for economy and agriculture, and despite reported evidence of the modernization of various aspects of the agricultural sector, the information has not been compiled in ways that provides more representative insights of the regions, as well as chronological, dynamic perspectives across different aspects of the overall agricultural developments. This report partly fills this knowledge gap by summarizing the key characteristics in SEA region of the agricultural development, as well as changes in related outcomes, such as nutrition, natural resource endowments, and the labor movement into non-farm economies. In doing so, the report gathers secondary cross-country data on key aspects of the agricultural modernization and diversification. Overall, the SEA region has seen a relatively fast movement of labor out of the agricultural sector into non-farm sectors including trade, restaurants and hotel industries in the last few decades, leading to higher labor productivity growth than land productivity growth. Despite the important roles of trade, the agricultural production within the region and in each country continues to account for important sources of food and nutrition. The modern production technologies and inputs have spread constantly within the region, but with considerable time lags across countries. The growth of vegetable oils and aquaculture production have been considerable, and contrast with South Asia (SA)where similar patterns have been observed for vegetables and milk production. The public sector has played important roles in agricultural research and development (R&D)on genetic improvements, and infrastructure development, while keeping the nominal assistance to the sector through market interventions to a relatively modest level, which has been accompanied by the significant growth of the private-sector participation in the provisions of inputs, services and agricultural finance. The agricultural modernization in SEA region has, however, been also associated with some negative outcomes, including continued degradation of natural resources like water and forest areas in which SEA has been relatively rich historically, and gradual increases in certain types of malnutrition including overweight and diabetes.