6

EAST ASIA AND PACIFIC

The region and its farming systems

The region¹¹ (see Map) contains 1836m people (just over one-third of all the inhabitants of developing countries), 1124m (62 percent) of whom are directly involved in agriculture. Considerable variation exists among countries in terms of size and density of population. Most people are concentrated in just two countries: China (with 1278m inhabitants or 68 percent of the region) and Indonesia (205m or 12 percent of the region) - respectively the first and fourth most populous countries in the world.

Total land area is 1.6 billion ha, of which forest accounts for over 20 percent and cultivated land 15 percent. Grasslands, wastelands, desert, mountains, urban areas and waterbodies make up the rest of the area. An estimated 15 percent of the population live in poverty, a quarter of them in China. Rural poverty is on average twice as prevalent as in urban areas, but its level varies widely - from under 5 percent of rural inhabitants in China to over 57 percent in Vietnam. With the exception of China and the Republic of Korea, the economies of the region are strongly agrarian. The average contribution of the agricultural sector to total GDP is 13 percent, but reaches over 50 percent in Laos, Myanmar and Cambodia.

The eleven farming systems defined within the region are summarized in Table 6.1 (see Map for their location). The most important of these systems from the perspective of population, extent of poverty and potential for growth and poverty reduction are briefly described below.

Lowland Rice Farming System. This intensive wetland rice system is found in lowland humid and moist subhumid tropical areas and covers a total area of 197m ha. It is the most important farming system in the world in terms of its agricultural population, estimated at 474m people. Cultivated area is 71m ha, of which about 45 percent are irrigated. Large areas are found in Thailand, Vietnam, Myanmar, South and Central China, Philippines and Indonesia. The cropping intensity of the rice is dependent on rainfall distribution, length of growing season and the availability of irrigation. Important subsidiary crops include oilseeds, maize, root crops, soybeans, sugarcane, cotton, vegetables and fruits in all areas, while wheat is significant in Central China. Although China has made a great deal of progress in recent years, poverty in most other countries of the region is extensive and generally severe.

Tree Crop Mixed Farming System. This system is found in flat to undulating humid tropical areas with poor soils. Total area is 85m ha, with an agricultural population of 30m. Cultivated area is estimated at 18m ha of which some 12 percent are irrigated. Significant areas are found in Malaysia, Indonesia, Thailand, Cambodia, Philippines, Vietnam, Southern China and Papua New Guinea. Major industrial crops include rubber, oil palm, coconut, coffee, tea and cocoa, with associated crops such as pepper and other spices. They are found on both large private estates and smallholdings. Small non-tree crop farms are also found within the system, growing food, cash crops and livestock. Coconut plantations are widespread throughout most East Asia and Pacific countries. Poverty is moderate.

Upland Intensive Mixed Farming System. This system is found in a wide range of climates in sloping upland and hill areas. Total area is 310m ha, with an agricultural population of 314m. Cultivated area is 75m ha, of which about a quarter is irrigated. This is the most widespread and most heterogeneous farming system in the region, with major areas located in all countries of East and Southeast Asia. A wide range of mostly permanent crops is cultivated, varying according to local conditions. A significant crop area (mainly rice) is irrigated from local streams and rivers. Livestock production (with 52m head of bovines within the system) is an important component of most farm livelihoods and contributes draught power, meat, cash income and savings. Poverty is extensive, varying from moderate to severe.

Temperate Mixed Farming System. This farming system is found in dryer and cooler areas of the region in Eastern and Northeastern China and restricted areas of Mongolia. Total area is 99m ha, with an agricultural population of 162m. Cultivated area is 31m ha, of which about 40 percent is irrigated. Major crops are wheat and maize with smaller areas of rice, cotton, soybeans, sweet potato and rape - depending on local temperature and water conditions - as well as citrus and some temperate fruits. Livestock are important, particularly cattle (11m head), pigs and poultry. Poverty is moderate.

Source: FAO data and expert knowledge.

Key region-wide trends

Although total population will reach 2.3 billion by 2030, agricultural populations will be marginally lower, as a result of increased urbanization. Cultivated land area will also remain largely unchanged regionwide, but irrigation will expand by almost 20 percent and forest areas diminish still further. Smallholder-based production will still be the norm in 2030, despite an increase in commercial operations. Average crop yields will rise by 1.2 percent per annum to 2030, but the rate for rice will be only 0.7 percent per annum Growing urban demand will drive growth in vegetables, fruits and animal products. Numbers of almost all forms of livestock, except buffalo, are projected to increase strongly over the next 30 years, averaging more than 1 percent per annum and demand for animal feeds will grow accordingly. Fertilizer use will expand moderately (0.4 percent per annum).

Strategic priorities for East Asia and Pacific

The strong economic growth and steady reduction in poverty in China and other regional countries during recent decades is noteworthy. Nevertheless, poor socio-economic indicators in many countries continue to reflect the results of widespread quasi-subsistence agriculture and small farm size; exacerbated by poor access to financial resources, lack of opportunities for intensification and diversification, and insufficient opportunities for off-farm employment. This situation is dictated by underlying factors that include overpopulation, land fragmentation, absence of land security, and deterioration of natural resources. Further substantial reduction of poverty can, however, occur if rural communities and households are provided with adequate incentives and opportunities to invest their labour, capital and resources.

In broad terms, lower potential systems within the region are expected to achieve significant poverty reduction through migration to cities, while higher potential systems will benefit more from diversification of agricultural activities and increased productivity. Bearing in mind the fact that any comment on the region is heavily weighted by the situation in China, it is evident that expanded off-farm employment and income is an important pathway for poverty reduction in all systems, with approximately 40 percent of rural poverty reduction expected to derive from this strategy. Diversification of agricultural activities on-farm is the second most important strategy overall and, together with off-farm income, accounts for nearly two thirds of the development potential for poverty reduction.

While many policies that emphasize social issues are extremely important, the resolution of these issues in rural areas depends critically on agricultural growth. Poor members of rural communities require opportunities to increase their labour productivity in farming and to utilize surplus labour in the non-farm sector. Agricultural growth, if equitable, will create beneficial opportunities for all - including oppor-tunities for disadvantaged rural households to become involved as suppliers of goods and services, or as primary processors of raw products. Within this overall framework, specific actions directed at poverty-stricken, food insecure and disadvantaged families are necessary. Four broad, inter-linked, strategic initiatives are proposed:

Increased small farm competitiveness. Increasing the competitiveness of small and poor farmers provides a basis for successful diversification into new, higher-value agricultural activities. Components include: improved marketing and processing; strengthened product standards; expanded availability of financing; and integrated technologies for sustainable productivity increases in high value enterprises as well as traditional staple crops.

Improved resource access. Greater production efficiency depends on reduction of fragmentation and the expansion of operated area for marginal holdings. Components include: improved land policies; land titling; land leasing arrangements; and financing for land purchase.

Enabling environment for the creation of off-farm income. Off-farm employment opportunities provide the most important potential for escape from rural poverty in the region. Components include: the creation of a favourable environment for off-farm employment; the enactment of appropriate policies, with particular emphasis on processing assembly and tourism; and attention to infrastructure improvement in many systems.

Enhanced human resource development. If gains in recent decades are to be carried forward into the future, it is vital that members of small farm households increase their knowledge base and capacity to respond to both changing agricultural requirements and off-farm employment opportuni-ties. Components include: the development of information and knowledge networks; farmer capacity building; support to entrepreneurship; and training to the younger segments of the population in vocational skills.

^{11 See Annex for a list of regional countries. Hong Kong, Australia, Japan, New Zealand, Singapore and Taiwan are excluded.}