Introduction
More than two billion people in the world today depend on agriculture for their livelihood. In
Asia where poverty is largely a rural phenomena, governments are in a constant search for
effective agriculture development strategies. In recent years, two important new
developments have emerged strongly: the growth of organic agriculture (OA), and the
increased use of land to grow energy crops (Biofuels). While both activities are still relatively
small, they are expanding rapidly due to the growing demand for safe food and the rising
price of oil. Because both developments are taking place largely in marginal areas where the
majority of the poor reside, poverty and environmental implications from these two activities
appear significant.
Using the cases of the Lao People’s Democratic Republic (PDR) and Cambodia, the study
compares the two options for the development of OA and biofuel with respect to a set of
development goals; the focus of which includes not only the narrow economic benefit to the
farmers, but also their impact on health, poverty reduction, the environment and sustainable
development overall. There is considerable interest in both these farming enterprises in the
two countries, and the public and private sectors are already engaged in a range of activities
related to them. The report provides a description of these activities and looks at how
effective they are—or they can be in the future, in promoting sustainable rural development.
The report is structured as follows. In Section II the general case for OA and biofuels in
developing countries in general, and in Asia in particular, is made. Section III looks at the
two options for Cambodia, and Section IV does the same for the Lao PDR. Section V
provides several conclusions and offers recommendations.
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The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
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