Organic Crops or Energy Crops? Options for Rural Development in Cambodia and the Lao People's Democratic Republic

This paper examines the prospects for organic agriculture (OA) and the production of biofuels as strategies for rural development in Cambodia and the Lao People’s Democratic Republic (Lao PDR). Both agricultural activities are growing worldwide, although there are some questions as to how effective they are, environmentally and socially. These questions are discussed in the first part of the paper. The second part looks in detail at the potential for OA and biofuels in the two countries. The benefits of both activities in terms of poverty reduction and environmental sustainability to developing countries such as Cambodia and the Lao PDR are likely to be significant, although the full extent of that is subject to market access (particularly for organic foods) and the costs of certification. Poverty impacts appear to be greater for OA than for biofuel but since the growing areas do not generally overlap, both could be promoted. Since the present agricultural environment in both countries is generally regarded as ‘clean’ with a low level of chemical inputs, production of safe food for a high-value market may be a preferred strategy than to intensify agriculture through conventional methods and compete with more developed countries. Assistance from external organizations in overcoming challenges will be critical for the success of any programs to promote both OA and biofuels.

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1. Chumroen Benchavitvilai
   (posted 16 May 2009 / 05:44:46 PM)
   
   In fact all the LDC government must realize that the cost of Biofuel is /will be much more expensive than the mineral fossil fuel at any time.
   If the LDC like Lao,Cambodia and Myanmar wants to promote the Biofuel utilization as the national agenda .The policy makers in all countries must be able to find the satifatory answers to the following questions.
   
   (1) Do the people in the poorest countries of LDC really need to pay for the expensive / high cost of Biofuel as teh real cost is w/o governemtn interention ?
   
   (2) Will the governments of the LDC provide subsidies for Biofuel to keep the Biofuel not to be too much more expensive that the mineral fossil fuel ?
   The subsidies are both in term of production subsidies for lower production cost and consumer subsidies by waiving all related taxes eg energy tax, exile taxes VAT ,Energy fund etc.
   
   (3) It is doubtfully that the governments in all LDC are able to effort to provide any sbsidies for Biofuel .
   Normally the income from the energy usages is one of the main stream for revenue.
   All government in LDC are haing the deficit budget forever.
   Althrogh they may want to promote Biofuel and cover all the subsidies.
   It is impossible to survive.
   
   LDC countries should be the exporter of the Biofuel not teh teh end user of the Biofuel.