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.

Download this Discussion Paper [ PDF 257.7KB| 46 pages ].

Comment(s)

There are [1] comment(s) for this entry. Post a comment.

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.