Southeast Asian countries like Indonesia, Thailand, and Malaysia achieved greater economic growth and poverty reduction compared to Sub-Saharan Africa by pursuing market-oriented agricultural policies that increased smallholder productivity and market access. In contrast, many African countries neglected agriculture and pursued import substitution industrialization, maintaining distortions that taxed farmers. To achieve future global food security, the document recommends improving smallholder productivity and market access, linking smallholders to value chains, promoting productive safety nets, building institutions through evidence-based learning, and country-led strategies.

1. Tracking progress in cutting hunger and poverty in Africa and Southeast Asia Shenggen FanDirector General International Food Policy Research Institute April 12, 2010

2. Outline Development Strategies in Asia and Sub-Saharan Africa Tracking performance of Southeast Asia and Sub-Saharan Africa Agenda for achieving future food security

3. Different Development Pathways Southeast Asia Indonesia, Thailand, and Malaysia Market-oriented approach: macroeconomic stability, human capital formation, and trade openness Short period of import substitution followed by export-led growth Devoted larger share of public investment to rural areas, and lower direct/indirect taxes on agriculture compared to other developing countries Vietnam and China: “firing from the bottom approach” that focused on agricultural reforms, including Decentralization of agricultural production systems Liberalization of pricing and marketing systems

4. Different Development Pathways Sub-Saharan Africa Dominated by agro-pessimistic thinking for many years Urban-industrialization approach -> many Sub-Saharan countries missed opportunity to achieve structural transformation where agriculture could deliver aggregate economic growth The patterns of discrimination against farmers persist, although there has been reduction in agricultural distortions (especially taxes on farm exports)

5. Tracking performance of Southeast Asia and Sub-Saharan Africa

6. Economic and Agricultural Growth Source: World Bank, 2009

7. Lackluster pattern of poverty reduction in Sub-Saharan Africa Share of population living under $1.25 per day, % Source: PovcalNet, 2010

9. Prevalence of underweight in children

10. Under-five mortality rateSource: von Grebmer et al. 2009

11. Hunger persists in Southeast Asia and Sub-Saharan Africa Source: World Bank, 2009

12. Contributing factors to differences in performance Geography Distortions to agricultural incentives Governance Investment in agriculture

13. Underspending on agriculture in Sub-Saharan Africa relative to size of sector Agricultural expenditures as % of agricultural GDP

14. Africa is still taxing agriculture Source: Anderson 2008.

15. Agenda for achieving future global food security

16. 1. Improve smallholder productivity and access to markets Improve access to inputs (e.g. seeds, fertilizer) Improve access to services (e.g. extension and finance) Increase investment in rural infrastructure (e.g. rural feeder roads, water, irrigation) Promote agricultural research and innovation

17. 2. Linking smallholders with modern value chains Socioeconomic factors alongside policy reforms have transformed value chains Emergence of supermarkets in Southeast Asia and more recently Southern/Eastern Africa Small farmers often lack resources to participate and share benefits Support innovative institutional arrangements for vertical coordination, e.g. producer cooperatives Eliminate bias towards development of high-value chains in Africa -> more focus on increasing the efficiency of food crop value chains

18. 3. Promote productive safety nets Goals: Secure and smooth food consumption Enable saving and investment Build and diversify assets Types of interventions e.g.: Conditional cash/food transfers Maternal and child health/nutrition programs Public works Insurance for the poor Programs depend on needs, capacities, and resources Source: Adato and Hoddinott 2008.

19. 4. Build institutions and capacities Improve evidence-based policy making Asian reform process (esp. China) emphasized gradual implementation after careful experimentation in selected districts: Successful policies scaled up Failed policies used for learning purposes Increase investment in information gathering, monitoring, and evaluation RESAKSS Strengthen human and administrative capacities through increased investment in education and training

20. The most effective and sustainable actions must be country-led and country-owned