Session ISustaining Rural Development

Problems & opportunities of

small holder farming systems

16-17 June 2009Mekong Institute, Khon Kaen,

Thailand

Anthony M. ZolaChief Technical Advisor, Centre for Social Entrepreneurship

Mae Fah Luang Foundation under Royal Patronage& Senior Researcher, Mekong Environment & Resources Institute - MERI

Bangkok, Thailand

www.maefahluang.org, www.merimekong.or.th

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Sustaining Rural DevelopmentDay 1: • Morning: Session 1

– Part 1.1: Defining rural development & sustainability

– Part 1.2: Problems of small- holder farming systems

– Part 1.3: Opportunities for smallholder farming systems

• Afternoon: Session 2– Human resources

development– Rural development

planning simulation– Reporting to the plenary

session– Homework assignment

Day 2:• Morning: Session 3

– Homework review– Part 3.1: Rural

development and environment

– Part 3.2: Role & Significance of Income Generating Initiatives in Rural Development & Microfinance

• Afternoon: Session 4– Problem solving: Rural

investment & resources management simulation

– Preparation of rural investment alternatives & presentation of alternative plans

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Setting the Scene

Target Groups• Agriculture is 40% of

GDP in many developing countries

• Agriculture provides 80% of employment in many developing countries

• About 70% of the world’s poor live in rural areas & depend on agriculture for their livelihoods

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Setting the SceneDefinitions of rural development (RD)

• ICARRD*: RD is a dynamic process; – Based on the exchange of

experiences & locally-designed solutions & processes; not common guidelines & indicators of success.

– Recognition that land & other natural resources are cultural, social, & historical assets, not just economic.

– Use of these assets must be addressed in an integrated and area-based way through dialogue and participatory approaches

• FAO: SARD** is a process that meets a set of criteria:– Food security: present &

future;– Durable employment with

sufficient income from agriculture;

– Maintains the productive capacity of the natural resources base; no disruption of ecological cycles or socio-cultural character of rural communities;

– Reduces vulnerability of agriculture sector to adverse natural & socio-economic factors & other risks;

– Strengthens self-reliance

* ICARRD: International Conference on Agrarian Reform & Rural Development, Porto Alegré, Brazil, March 2006

** SARD: Sustainable agricultural & rural development

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Setting the SceneDefinitions of rural development

• World Bank (RD objectives):– Increases in rural incomes &

broadened opportunities for rural inhabitants;

– Fostering an enabling environment for broad-based & sustainable rural growth;

– Enhancing agricultural productivity & competitiveness

– Fostering non-farm economic growth

– Improving social well-being, managing and mitigating risk, & reducing vulnerability;

– Enhancing sustainability of natural resource management.

• Mekong Institute:– Reliance on agriculture for livelihood;– Largely subsistent agricultural

households;– Transition between environmental

conservation & development.

• Independent source:– Non-urban population; scattered;– Area-based;– Agrarian;– Self-contained.

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Setting the SceneDefinitions of rural development

• Asian Development Bank (ADB):– Focus on poverty and

inequality– Environmental aspects

of economic growth– Changes in the quality of

life --- improvement in health, & nutrition, education, environmentally safe living conditions, & reduction in gender & income inequalities

– Inclusive RD is about improving the quality of life of all members of rural society

Source: Fernando, N., ADB, 2008

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Defining Sustainability• UN Division for

Sustainable Development, Department of Economic & Social Affairs, UN Economic & Social Commission (ECOSOC) prepared indicators for UN Commission on Sustainable Development (CSD)– 1997, 2001, 2006 – Available to apply to

evaluating Agenda 21 for the WSSD in 2002 / Johannesburg

•Poverty

•Natural hazards

•Economic development

•Governance

•Atmosphere

•Global economic partnership

•Health

•Land

•Consumption & production patterns

•Education

•Oceans, seas, coasts

•Demographics

•Freshwater

•Biodiversity

14 Themes:

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Defining SustainabilitySample indicator: Health

Core & Non-Core Indicators for Health• Mortality

– Under-five mortality rate – Life expectancy at birth – Healthy life expectancy at birth (non-core)

• Health care delivery – Percent of population with access to

primary health care facilities – Contraceptive prevalence rate(non-core) – Immunization against infectious

childhood diseases • Nutritional status

– Nutritional status of children • Health status and risks

– Morbidity of major diseases such as HIV/AIDS, malaria, tuberculosis

– Prevalence of tobacco use (non-core)

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Defining SustainabilitySample indicator: Poverty

Poverty Indicators• Income poverty

– Proportion of population living below national poverty line

– Proportion of population below $ 1 a day (non-core)

• Income inequality– Ratio of share in national income of

highest to lowest quintile • Sanitation

– Proportion of population using an improved sanitation facility

• Drinking water– Proportion of population using an

improved water source • Access to energy

– Share of households without electricity or other modern energy services

– Percentage of population using solid fuels for cooking (non-core)

• Living conditions– Proportion of urban population living

in slums

The End of Session 1.1

Session 1.2: Problems of Smallholder

Farmers

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Problems of Smallholder Farmers

Agricultural production

systems

• Practice of shifting cultivation & other types of traditional agriculture

• Natural

• Organic

• Low productivity & yields

• Use of native seed varieties• Low / no use of inputs• Low / no standards

Livestock

raising

• Most important asset after land & harvested crops

• Lack of veterinary services

• Lack of good quality vaccines

• High mortality rate

• Low birth rates

• Poor nutrition

Fisheries:

Freshwater & Coastal

Coastal:• Unsustainable• Competition• Encroachment• Illegal methods

Coastal:• Regulated: weakly enforced• Powerful interests • Destruction of coastal habitats

Freshwater:• Competition in water bodies• Illegal methods •Funding for ponds• Knowledge of fish raising

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Problems of Smallholder Farmers

Poverty

• Low income

• Lack of political & social security

• Neglect

• Illicit activities

• Discrimination• Degraded natural resources

• Lack of assets

• No recognition of assets

Natural hazards

• Weather

• Drought

• Floods

• Pests

• Food security

• Climate change

Economic development

• Poor communications

• Isolation; remote location

• Inadequate infrastructure

• Market access

• Market prices

• Credit / operations & investment financing

Governance

• Lack of good governance at all levels of government

• Lack of public services

• Low salaries

• Lack of official systems to register assets

Health

• Inadequate health care services• Lack of awareness of emerging diseases

• High maternal child mortality rates

• Dependence on local sources of medicines

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Problems of Smallholder Farmers

Land

• Lack of recognition of ownership

• Land use restrictions• No recognition of occupancy rights

• Encroachment

• Land grabbing

• Colonizers

Education

• Lack of teachers

• Poor quality

• Lack of importance of understanding of education

• Neglect from government

• No options

Water

• Poor quality

• Scarcity of water • Unable to tap groundwater

• Abundance of water

• Occupy watersheds

• Occupy flood plains

• Occupy coastal areas

Forest resources & biodiversity

• Dependency on biodiversity for NTFPs & food (fisheries)

• Depletion of biodiversity => social security issues

• Trading of NTFPs to depletion• Degrading of NTFPs

Demographics

• Large number of children for use as labor

• Lack of access to citizenship• Ethnic minorities

• Population pressure on land & resources

Session 1.3: Opportunities of Smallholder

Farming Systems

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Opportunities of smallholder farming systems

Agricultural production

systems

• 21st Century agricultural modernization = natural & organic products

• Blend indigenous knowledge with modern agricultural techniques

• Insatiable demand for soybeans• Growing demand for biofuel crops

Livestock

raising

• Range fed animals bring higher prices• Liberal definition of ‘wild’ animals

• Expanding demand for protein in high growth economies

• Upgrading natural feeds for improved nutrition & natural products

Fisheries:

Freshwater & Coastal

• Technical advances in coastal aquaculture

• Growing demand for high-quality coastal aqua-culture products

• Consumer replacement of seafood by freshwater aquaculture

Economic development

• Contract farming

• Value-added processing

• Post-harvest handling

• Globalization

• International sanitary & phyto- sanitary standards

• Global Food crisis

• Global energy crisis

• Sufficiency economy

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Opportunities of smallholder farming systems

Land

• Official recognition of importance of land as an asset needed to alleviate poverty

• Recognition of occupancy rights

• Land titling projects

• Land zoning that brings improved stewardship

Health & Education

• Significant improvement in public education systems• Disease control

• Availability of non-formal & other adult education•Emphasis on literacy

• Availability of vocational education opportunities

Water

• Mobilize communities to organize water user groups

• Irrigation of crops during dry season: off-season production

• Development of underground water resources

Forest resources & biodiversity

• Reforestation for ecosystem rehabilitation

• Adoption of agroforestry systems

• Domestication of non-timber forest products

End of Part 1

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