REGIONAL SYMPOSIUM ON INDOCHINA

Food Policy in Indochina: the Effects of Globalization, Hanoi, March 1-2, 1999

News Release
Agenda

BACKGROUND AND PURPOSE

The Indochinese region-comprising the countries of Cambodia, Southern China, Laos, Myanmar, Thailand, and Viet Nam-displays an enormous diversity in levels of development, historical experiences, and social organization. In spite of such diversity, the countries in the region share some common characteristics that justify a regional debate on the critical issues for food and agricultural policy. First, food production in the region is heavily based on rice. The region's share in the world rice market is about forty percent, with Thailand and Viet Nam being the two largest rice exporters in the world. Second, in addition to rice the region also has enormous potential for agriculture and agrifood business development, and in places such as China, Thailand, and Viet Nam this potential is already being exploited. Third, the region seems to be undergoing transition from centrally controlled systems to market-oriented systems, again displaying a variety of experiences ranging from a still largely controlled system like Myanmar to liberalized systems like Thailand. Fourth, almost all the countries in the region are part of ASEAN and are also committed to entering the World Trade Organization (WTO). The openness of the region to world trade, particularly in food and agriculture, makes it subject to the emerging challenges arising from the broad movement toward globalization. Fifth, in spite of the great variation in economic performance across the various countries, a large share of the population still lives in poverty and is food insecure, particularly in mountainous regions. Sixth, water management issues are of interest to all the countries in the region, because of the importance of water on rice production, as well as the non-agricultural uses of water (to promote industrialization). The Mekong River Delta Commission, for example, includes four countries in the region. Finally, the region's agricultural trade is heavily affected by its large neighbor, China. The proximity of China presents opportunities and challenges for regional and international trade.

The purpose of the seminar is to bring together professionals and policy makers from the region in order to promote a food policy debate that will sensitize policy makers and help identify the most promising solutions to meet the challenges of food insecurity, globalization, poverty, and water resources management. The debate will be enriched by IFPRI's experience conducting food and agricultural policy analysis in the region and in other countries, and by the country level experiences of the regional participants.

SPECIFIC THEMES

The debate on food and agricultural policy will be organized around seven major themes.

Theme 1. Market Reforms and the Transition from Centrally Controlled to Market Systems

While some countries in the region have been functioning as market economies for a long time, others have started the transition to a market system only during the last decade. Even in those cases where policies are strongly committed to the market, there have been in the past and still are numerous examples of intervention in food and agricultural markets. The theme will analyze the role of the state in the process of market reform and learn from the experiences of countries that have already successfully reformed.

Theme 2. Globabilization, Macroeconomic Policies, and Agriculture

The region as a whole is open to world trade, particularly in the food and agricultural sector. ASEAN membership will further link these countries together. The links might help to strengthen the bargaining power of the region vis à vis the rest of the world, but they may also induce instability, as in the recent Southeast Asian currency crisis. The theme will examine the macroeconomic policies pursued by different countries, their effectiveness, and the implication for food and agriculture.

Theme 3. Rice Markets, Regional Patterns, and World Markets

Rice is the main staple food of the region, providing the backbone of agriculture and the livelihood for the majority of the rural population. The region is also the major supplier of rice to world markets, with Thailand and Viet Nam being the two largest exporters. Cambodia and Myanmar also have largely unexploited potential. The theme will look at the performance of the rice sector in the recent past, identify the key challenges in the future, and the implications of the region's rice production for the world market.

Theme 4. Changing Patterns of Food Demand and Implications for Nutrition, Food Security, and Aggregate Future Food Outlook

As income in the region grows, demand for food shifts from rice towards higher value products, including vegetables, meat, and fish. The theme examines the implication for nutrition and food security, particularly of the poor, at the micro level. Then it examines the aggregate food supply-demand balances in a forward-looking perspective.

Theme 5. Agricultural Diversification and Rural Industrialization

The changing pattern of food demand also has important implications for agricultural diversification. The theme explores alternative strategies to promote growth in rural areas based not only on rice but on alternative crops, livestock, fisheries, and forestry production. The key issue for rural industrialization examined in this theme is how to transform low value-added agricultural production into highly valued commodities.

Theme 6. Poverty and Growth

The change from a complex, controlled economic system to a market-oriented system of production has generally been successful in accelerating growth of income in many economies. However, there is a general fear that the market often does not take care of people who are left behind for many reasons. A market-oriented strategy, if not adequately guarded, may aggravate the extent of poverty in the region. The relation between growth and poverty under various strategies should be the focus of this theme.

Theme 7. Water Management and Efficiency

It is increasingly recognized that water resources are often allocated inefficiently, which leads to significant waste. The theme explores the challenge posed by the increasing water scarcity in the region and alternative responses to improving the management and allocation of water resources. Joint exploitation of the Mekong River to meet the expanding demand for water is a crucial consideration in the development of agriculture in the region.

Tentative Agenda

Food Policy in Indochina: the Effects of Globalization
Hanoi, March 1-2, 1999

March 1, 1999
8:30 AM-9:00 AM	Welcome and opening remarks
9:00 AM-10:30 AM	SESSION 1: The transition from centrally controlled to market systems. The effect on growth, agriculture, and food security. The new role of the state during market reforms.
10:30 AM-10:45 AM	Break
10:45 AM-12:30 PM	SESSION 2: The effect of globalization and macroeconomic policies on agriculture and food security.
12:30 PM-2:00 PM	Lunch
2:00 PM-3:00 PM	SESSION 3: The role of rice in the Indochina economy. Emerging challenges from world markets.
3:00 PM-3:15 PM	Break
3:15 PM-4:45 PM	SESSION 4: Changing food demand patterns and implications for nutrition, food security, and aggregate future outlook.
March 2, 1999
8:30 AM-10:00 AM	SESSION 5: Agricultural diversification and rural industrialization.
10:00 AM-10:15 AM	Break
10:15 AM-11:45 AM	SESSION 6: Growth and poverty. Experiences and alternative strategies.
11:45 AM-1:30 PM	Lunch
1:30 PM-3:00 PM	SESSION 7: Alternative mechanisms for water allocation.
3:00 PM-3:15 PM	Break
3:15 PM - 4:45 PM	Concluding Session: Toward the development of a collaborative research and outreach agenda in Indochina.

Information about IFPRI

The International Food Policy Research Institute was established in 1975 to identify and analyze alternative national and international strategies and policies for meeting food needs of the developing world on a sustainable basis, with particular emphasis on low-income countries and on the poorer groups in those countries. While the research effort is geared to the precise objective of contributing to the reduction of hunger and malnutrition, the factors involved are many and wide-ranging, requiring analysis of underlying processes and extending beyond a narrowly defined food sector. The Institute's research program reflects worldwide collaboration with governments and private and public institutions interested in increasing food production and improving the equity of its distribution. Research results are disseminated to policymakers, opinion formers, administrators, policy analysts, researchers, and others concerned with national and international food and agricultural policy. IFPRI is a member of the Consultative Group on International Agricultural Research, an association of 16 international research centers, and receives support from a number of governments, multilateral organizations, foundations, and other sources.

last updated: March 15, 1999