Ekonomi d

Social Economic Problems in Agricultural Development in and East

Daniel D. Kameo

Abstrak

Pokok kajian dalam artikel ini menyangkiit dua hal. Pertama, kajian tentang berbagai hambatan sosial ekonomi yang menjadi tantangan dalam upaya pembangunan pertanian di Nusa Tenggara Timur dan Timor Timur dan kedua, identifikasi potensi sektor pertanian dan pemikiran altematif strategi pembangunan pertanian di daerab ini. Hambatan sosial ekonomi yang menonjol adalah kemiskinan, teknologi dan ketrampilan, kelemahan-kelemahan institutional, hambatan lokasional keterbatasan infrastruttur, kondisi alam, dan tekanan penduduk. Pada bagian akbir dari artikel ini dikemukakan altematif strategi kebijakan pembangunan pertanian di daerah semi-arit Nusa Tenggara Timur dan Timor Timur dan usulan topik-topik studi pendutung yang hasilrya dapat dipakai sebagai dasar yang kuat dalam penentuan berbagai kebijakan pembangunan pada umumnya dan pembangunan pertanian pada kbususnya di daerah ini.

33 Kameo

I. INTRODUCTION

A. Background

Judging from some of the major social economic indicators and comparisons with other Indonesian provinces, one might easily conclude that East Nusa Tenggara and are regions that face major development problems in the future. One could also point to poor natural resources and harsh physical conditions as the underlying causes of this regional .

After twenty-five years of development efforts under the government. East Nusa Tenggara is still one of the poorest provinces in . It has the lowest per capita GRDP and purchasing power which is a reflection of limited output and low productivity. Subsistence agriculture-based activities still dominate the economy. In 1993, 22.7% of the rural population and 16.4% of the urban population lived under the poverty line (BPS 1994a). East Nusa Tenggara has the highest poverty index after East Timor, , Irian Jaya and West .

East Timor's situation was even worse to begin with. As development efforts began twenty years ago after the integration of the region as an Indonesian province in 1976, East Timor was facing innumerable multidimensional problems. As is so well stated by Soesastro (1991, p.207), prior to 1974 East Timor had languished for centuries as a neglected colonial backwater. Ruled by an ailing power on the opposite side of the world for nearly 400 years, neglected for centuries, it remained as one of the most isolated and backward regions in the world. Although the Portuguese administration did make some belated attempts to develop the province during the last few years of its rule, it still showed all the symptoms of colonial neglect and indifference. The Timorese participation in the economy was negligible and confined mainly to subsistence and smallholder agriculture. Business was controlled by the 14,000 Chinese living there, as well as a few Portuguese and Goanese. Health standards were very poor. Most of the infrastructures, concentrated only in Dili, had not been built imtil the early 1960's. That was, in part, a picture of East Timor when the development process began 20 years ago, which is not an easy and

34 Social Economic Problems in Agricultural Development favourable start to the path of development.

In 1993, 26.24% of the East Timor population was living below the poverty line and 70.6% of the 442 villages in East Timor were classified as impoverished (desa tertinggal) (BPS 1994d). In most of these villages, poverty is readily apparent in the poor housing of the people, unsanitary conditions, shortage of clean drinking water, inadequate diets, signs of malnutrition in children and skin diseases (Kameo 1994a).

In 1994, BKKBN conducted an assessment survey to describe the level of family prosperity using composite measures from 13 variables. Families were categorised into five categories from the Pre-Prosperous family (PraKeluarga Sejabtera/Pra-KS) i:e. diose families unable to meet such basic needs such as adequate food, clothing, housing and health; to the Prosperous family III plus (KS UEP), i,e. families able to meet basic needs, physiological and development needs and to contribute to social and religious activities. As shown in the following table. East Nusa Tenggara and East Timor have the highest percentage of families living in the Pre-prosperous category.

Table 1 The Socio-Economic Status of Families According to the 1994 BKKBN Keluarga Sejahtera Census Province/Region Category of Tamlly Pirtsperity" (%) Pra-KS KSI KSII KSlll KSill+ Total East Nusa Tenggara 70.8 21.5 6.5 1.1 0.1 100.0 East Timor 78.5 13.4 5.3 2.4 0.4 100.0 Average of Easternmost Indonesia 54.1 30.3 10.9 3.6 1,1 100.0 Indonesia (National average) 29.1 33.7 22.8 11.4 3.0 100.0 Source: BKKBN, 1994, Sensus Keluarga Sejahtera (unpublished results) quoted in Handayani and Hull, "The Famih and its well-being', in Jones and Rahardjo,1994.

As is the case in many other provinces in Indonesia, agriculture is the main contributor to the regional economy and to the economic welfare of the people. The agriculture sector in East Nusa Tenggara and East Timor makes the greatest contribution to the regional economy. In fact. East Nusa Tenggara is the only province in Indonesia with an agriculture sector contributing more than 50% to its GRDP. On the contrary, the contribution of industry to the economy of East Nusa Tenggara and East Timor are the two lowest ones in the country.

35 Kameo

Within the agricultural sector itself, the farm food crops sub-sector is donunant. This sub-sector contributes 55.9% and 54.8% to the total agriculture product in East Nusa Tenggara and East Timor respectively. The second important sub-sector is livestock in East Nusa Tenggara, contributing 23.3%, and farm non-food crops in East Timor, contributing 23.5 percent to the total agriculture output.

It is also important to note that both in East Nusa Tenggara and in East Timor the public administration and defence sector is the second main contributor to the GRDP. In fact, this sector contributes more in these two regions than it does in any other region of the country. In 1992, it contributed almost 207o to the economy of East Nusa Tenggara and East Timor, while it only contributed 7.1% to the national economy. This statistic indicates that government expenditure plays a significant role in the economy of these two provinces.

Total domestic and foreign investment in East Nusa Tenggara is the lowest in Indonesia. In the 1968-1992 period only 0.1% of the foreign investment and 0.37o of the domestic investment in Indonesia were invested in East Nusa Tenggara.

Table 2 shows that the per capita GRDP in East Nusa Tenggara is only 347o of the national average and in East Timor it is 407o. This low income is also reflected in low purchasing power as shown by the figures in the following table on monthly per capita household expenditures and the higher percentage of household expenditure used for food.

Table 2 Main Economic Indicator of East Nusa Tenggara and East Timor Fast Timor taAamialNalionai ImHcalors t ,. ' Avarajee) 1987 1992 1987 1992 1987 1992 Sectoral contribution to CROP (%)•: -Agriculture S2.0 46.7 39.7 38.6 25.7 18.5 -Industry 2.07 2.14 1.09 1.66 17.2 20.6 Average CROP growth rate 1987- 1992 (%) CROP per Capita (Rp)" 275,226 489,757 247,066 570,283 743,194 1,408,687 * At 1983 constant prices ** At current market prices Source: BPS, 1994, GRDP of Provinces in Indonesia by Industrial Origin 1987 1992, .

36 Social Economic Problems in Agricultural Development

Table 3 Percentage Distribution of Population by Expenditure Classes and Percentage of Average per Capita Monthly Expenditure for Food in 1993 Household Expenditure Ea^ Nusi) East Timor Indonesia Tengeara _ Expenditure classes: Up to Rp 40,000 86.8 80.0 62.4 Rp 40,000 - Rp 60,000 8.5 10.6 19.9 Higher than Rp 60,000 4.7 9.4 17.7 Household Expenditure for food (%) 67.2 62.6 56.8 Source: BPS, 1994, Statistical Yearbook of Indonesia 1993, Jakarta (Table 10.2.11. p.590-91) BPS, 1994, Expenditure for Consumption of Indonesia per Province 1993, Jakarta (Table 1. p.27)

B. Problem Statement

From the macro economic outlook of these two provinces given above, one could draw the conclusion that the people and the economy of these regions are depending on an economic sector that is not able to support either the economy or the economic welfare of the people. Development efforts are challenged by the dilemma of a heavy dependence upon agricultural activities on the one hand and poor semi-arid land on the other. This condition is more or less indicative of the great challenges faced by the people and the government in these regions if the agricultural sector is to remain the major source of income. Identifying both the socio economic obstacles to agricultural development and the potential that can be developed would help the people and the government in these regions to decide on the best possible policy alternatives for their future.

i II. CHALLENGES IN AGRICULTURAL DEVELOPMENT

The following section discusses social-economic and institutional aspects that have been obstacles in the past and will continue to challenge development efforts, particularly agricultural development in the future. Ignoring these variables in designing any development programmes for these regions, especially in agriculture development, would most likely lead to failure.

37 Kameo

A. Poverty

As shown in the figures above, poverty is still the main problem in these provinces. Indeed, poverty arises from the poor natural resources and harsh physical environment but poverty also reinforces itself in a vicious circle. Poverty itself, which is reflected in lack of capital, unskilled human resources, low level of technology, and to a certain extent poor work attitude, has prevented the people in these regions from freeing themselves of poverty.

In the following diagram. Beets (1990 p.51) depicted the relationships between physical, technical and human factors as constraints to raising output and productivity in agricultural development in harsh agricultural areas.

Diagram 1 Vicious Circle Perpetuating Declining Productivity and Environmental Deterioration of Unstable Tropical Subsistence Agriculture

Under utilisation and abuse of natural resources

Low yields Environmental deterioration

Low level of Investment In the farm Less productive land available for Little saving agriculture 1

Decreasing general productivity

A study on the small cattle farmers in Kabupaten Timor Tengah Selatan and Kabupaten (Kameo 1994b) has shown how the small farmers were being exploited by and dependent on the money lenders and traders, trapped in debt and poverty because of poverty itself. Very often a farmer will take an advanced payment from the trader, in money or in kind, on condition that he sells his cattle to the trader. Once the

38 Social Economic Problems in Agricultural Development farmer is involved in this practice, he will be trapped in his own debt because what he produces is usually less than his debt. To survive he has to continue borrowing or take a new advanced payment which eventually causes him to fall deeper and deeper into debt. This situation, in turn, creates and reinforces an unequal dependency relationship between the farmer and the trader/money lender as depicted in the following diagram.

Diagram 2 Poverty-Dependency Circle Among the Small Cattle Farmers in Kabupaten Kupang and Timor Tengah Selatan

Open to be Dependency exploited

Caught in a debt Low income trap

Combating poverty does not only mean freeing the people who are trapped in it, but creating an essential pre-condition for these people to participate and benefit from any development programmes. In other words, there will be no development before poverty is eradicated. Agricultural development programmes that aim at improving the well- being of the smaU farmers can only be achieved by first freeing them from poverty. There has to be a sufficient mirumum effort in bringing the farmers to a certain standard level of economic welfare before they can participate productively in any development programmes.

B. Economies of Scale and Subsistence Economy

Most of the small farmers, conditioned by the harsh physical environmental conditions, tradition, deficiency in land, capital and technology, and limited economic incentive, seem to be satisfied with

39 Kameo subsistence economic conditions. The output produced however, barely enables them to meet even their most basic needs. Any surplus from their agricultural products are usually traded for other basic necessities. Since there are no sigiuficant agricultural surpluses to be traded as an extra income, saving is low or negative and capital accumulation is therefore insignificant.

C. Low Level of Skill and Technology

Simple and labourious, time consuming hand tool technology is still commonly used among the small farmers in farm activities. Low production and productivity is largely attributed to this problem. In some parts of the region, especially in , and Tunor, animal power is used but in a very inefficient way.

D. Institutional Disadvantages

The following institutional weaknesses often hinder development programmes. For farmers, these institutional shortcomings often cause unnecessary extra cost (of production), exploitation, lack of incentive, and even ignorance.

(a) Market imperfection

As in many other parts of Indonesia, monopoly, oligopoly, monopsony, and lack of market information are the common patterns of market imperfection. In such a situation small farmers and producers often become the victims of institutions with greater economic power. If this condition persists, the small, powerless farmers will never gain from any development programmes, and it could lead them into even deeper poverty.

(b) Weaknesses in government institutions

A sectorial or departmental-centric oriented approach for regional development, e.g. rigidity in the government bureaucratic system and lack of interdepartmental coordination, has frequently impeded the implementation of development programmes. The coordinative function of BAPFFDA is far from ideal, both because of the departmental bureaucratic system as well as because of internal weaknesses inherent in BAPPEDA. This situation is often reflected

40 Social Economic Problems in Agricultural Development

1 in the absence of good regional development planning. Development programmes are often merely viewed as simple projects needing to be completed within a given budget year.

The frailty and shortcomings of local government officials who help to manage development projects often hamper the achievement of objectives. Corruption and manipulation of development funds is a serious problem since government officials play major roles in various development activities. The former govemor of East Timor, Carasscalao, estimated that about 30 to 40% of the government development budget had been corrupted or misused (Kameo 1994a).

(c) Lack of supporting institutions.

Absence of well functioning output and input markets, service oriented financial institutions as a source of affordable funds, and other service institutions, can be a disincentive and even an obstacle to various development efforts. Institutions such as BRI unit desa, KUD, or Kelompok Tani have the potential to support a^ieuifcuEali development programmes. Nevertheless, these institutions have not yet played a significant role in these regioES. •

E. Location/geograplriicai Disaitvaatages aad Limited Supporting Infrastmctares

Dispersed settlement patterns in most rural areas in East Nusa Temggaxa and East Timor is a serious issue. It not only hampers the* attempt to provide people with social and economic services and extension programmes but also increases communication and transportation costs. Metzner (1977) in his study in East Timor has concluded that dispersed settlement has long been recogriised as a major handicap to development.

Poor natural resources, difficult physical environment, and insignificant economic activities make the investment in infrastructures like asphalt roads, harbours and airports economically unfeasible. Again, as mentioned earlier, this condition is not favourable to development programmes in these regions. Alternatives and compromises are yet to be decided.

41 Kameo

F. Poor and Deteriorating Physical Environmental Conditions

Previous studies have concluded that shifting cultivation and bush and grassland burning has caused devastation to the forest/vegetation and significant damage to the physical environment. Ormeling compared his findings with the travel account of Ten Kate, 1894, an observant reporter, and concluded that environmental deterioration had taken place in Tunor (1956, p.2G8). Ormeling stated:

"The vegetative cover is being destroyed to an increasing extent by man's activity. Due to repeated burning, the soil is laid bare to the transporting effects of wind and rain. The dangers of this system on semi-arid Timor are all the more serious since the vulnerable periods coincide with the times of greatest wind velocity and heaviest rainfall. The belukar is burned off in the middle of the dry season, when the southeast nwnsoon is at its height, to which the bare, dried-up soil is an easy prey" (p.210).

This deteriorating process is still continuing today. East Nusa Tenggara has the vastest critical land area in Indonesia. In Pelita V, 289,300 Ha of critical land area was assigned for a rehabilitation program and 1,461,100 Ha, or 22.8% of the national total, has been assigned for the next rehabilitation program (BPS 1994a, p.263). Among the twelve regencies in East Nusa Tenggara, Sumba Timur and Sumba Barat have the largest critical land area, 81.7 and S9.S percent of the regencies total land area respectively (Umbu Pura Woha 1995, p.l3).

Intensive studies in the Bacau and Viquque regions of East Timor led Metzner (1977) to conclude that there had been "a rapid process of land degradation characterised by erosion, landslides, impoverishment of the soil and formation of badlands" (p.293). Nevertheless, he added, "very little has been done by the area's population to prevent land degradation"(p.269). Between 1989 and 1991 alone, 1990 Ha of forests were burned in East Timor. In one of his reports in 1992, the former govemor of East Timor, Carasscalao, estimated that the critical land in East Timor now accounts for 78% of the total land mass of East Timor (Kameo 1994a).

42 Social Economic Problems in Agricultural Development

G. Population Pressure

In arid and senu-arid regions, population pressure has always been a major cause of land degradation. Almost 907o of the population of East Nusa Tenggara and more than 90% of the population of East Timor live in rural areas. As shown in Table 4, in 1990, 77.27o of the work force in East Nusa Tenggara and 74.5% in East Timor work in the agriculture sector. Consequently this puts more pressure on agricultural land.

The carrying capacity of the agricultural land in these provinces has long been exceeded. The fallow cycle in the shifting cultivation system (swidden agriculture) has become shorter, allowing limited time for the bush land to regenerate. Fox (1977, p.l7) cited some varying estimates of the carrying capacity of the swidden system: a maximum density of 20 to 25 persons per Km2 for the Iban of Sarawak (Freeman), 48 per Km2 for Hanunoo in The Philippines (Conclin), and 50 per Km2 as an absolute ceiling on the density of swidden population in Indonesia (Van Beukering). From the census figures. Fox concluded that already in 1930 certain limits had seemingly been reached in the 's area of Timor (p.l8). I

In 1990, the population density had reached 68 persons per Km2 in East Nusa Tenggara and 50 persons per Km2 in East Timor (BPS 1994a). In 1993 the agricultural population density in East Nusa Tenggara has reached 200 people per Km2 (Umbu Pura Woha 1995, p.6).

Although the average growth rate of population in East Nusa Tenggara in the 1980-1990 period was relatively low, the population pressure had intensified. The net negative migration and relatively high labour force participation rate were indicators of both population and economic pressures. The Head of the Manpower Regional Office in Kupang stated in Pos Kupang that every year around 3000 migrant workers from East Nusa Tenggara entered Malaysia illegally (Tirtosudarmo 1995). As stated by Tirtosudarmo, poverty and economic hardship have driven people to migrate to other places to seek employment. ^

For East Timor the net positive migration of 4.57o has created not only economic but also socio-political pressures in the region. 427o of the migrants in East Timor have originated from East Nusa Tenggara which amounts to 19% of the region's total out-migrants (Gray at al 1995, p.43).

43 Kameo

Unemployment among junior and senior high school graduates is high. In 1990, only 29.57o of the 4,716 registered in the Regional Labour Department as seeking work were accommodated by the job market. In 1991, only 6.7% of the 7,817 job-seekers were placed and in 1992 only 31.3% of the 5,561 job-seekers could be absorbed (Kameo et. al 1993).

Table 4 Some Main Demographic and Employment Profiles of East Nusa Tenggara and East Timor Province - , - -9:. .^j/. East Nusa EastTicnol Indonesia Tenggara i"' Population (1990 Census) 3,269,000 748,000 179,379,000 Projected population In 1995* 3,582,800 843,100 195,283,200 Growth rate of population 1980-1990 1.79% 3.02% 1.98% Population density per Km2 (1990) 68 50 93 Number of households (1990) 919,000 149,000 39,722,000 Average household size (1990) 5.3 5.0 4.5 Projected number of households In 1995 697.500 172.900 45.067.00 Employment 1992; - lotal economically active 1,603,552 341,972 80,703,974 - % of working to economically active 98.8 98.2 97.3 - labour force participation rate (% of 66.1 65.5 57.3 economically active lo working age population) - % working In agricultural sector (1990) 72.2 74.5 50.4 - Average annual increase of employment In 3.5 n.a 2.1 agricultural sector (1980-1990) Net migration** -1.5% 4.5% Based on 1990 population census I.B. Mantra, 1992, cired in Tirtosudarmo, 1995. (Based on 1990 population census 1990) Source BPS, 1994, Statistical Yearbook of Indonesi 1993, Jakarta.

III. POTENTIAL FOR AGRICULTURAL DEVELOPMENT

Despite all the arid and semi-arid-related natural constraints and all the human made problems (discussed in section II), agriculture is still the main source of economic welfare for the people in East Nusa Tenggara and East Timor and will remain so in the future. Therefore, constraints and problems faced by the people in this sector must be dealt with seriously. Potential resources need to be recognised, managed and used sensibly without creating new problems. The optimal use of the

44 Social Economic --oblems in Agricultural Development

agricultural potential in these regions can be achieved by, among other things, improved (appropriate) technolog}, better cultivating systems, better land management and land conservation-oriented farming systems.

Aside from food crops, other potential resources that need to be considered in the agricultural development of East Nusa Tenggara and East Timor include the following.

(a) Agroforestry (social ) is a potential in almost all parts of Flores and in most parts of West Sumba and Timor island. The trees for this social forestry are commercial trees, suitable for land conservation purposes, which can be harvested in a period of 5 to 15 years, and which do not compete rvith other farming activities. Candlenut trees and eucalyptus alba (for construction material) can be considered since they have been well adapted in most parts of these regions, especially in Flores, the interior of East Nusa Tenggara and the eastern part of East Timor.

(b) Non-food cash crops that have good markets and reliativefy stable domestic and international prices should be promoted. These crops, include cacao, vanMla, arabica and cashew nuts.

(c) Ruminants, especially beef cattle, goats and pigs, are a good prospect both from the supply side and the demand side. Livestock production should be integrated into the overall farming system. In 1992 East Nusa Tenggara had more than 764,000 Ha of meadows and a temporarily fallow land of 833,000 Ha (BPS 1994c, p.l87) while East Timor had 209,000 Ha of grazing land (Kantor Statistik Timor Timur 1993). If the quality of grass and nutrients in these areas can be improved, it can probably support at least twice as many cattle and other ruminants.

(d) Fisheries are probably the most economically feasible potential for the people living in and along the coastal areas. If the fishermen are given the opportunity and are supported with capital, technology and infrastructures, this sub-sector may well contribute significantly to the economic welfare of the people and to the macro economy of these two provinces. In fact, with a steady volume of catchment and with a sufficient economies of scale, it can stimulate the establishment of the processing industry e.g. frozen and canning

45 Kameo

industries. Seaweed is another sea potential. The le Rae Foundation has proven this by its sea weed farming in Island. According to the Director of the le Rae Foundation, the sea weed farmed in Savu Island is one of the best species (originally from Siunba) and for the last few years, le Rae has been exporting 250,000 Kg of sea weed.

The agricultural potentials mentioned above can only be optimally realised if. (i) the various constraints discussed in section 11 are reduced. This is a pre-condition for any promising agricultural development in these regions; and (ii) there is a well designed and appropriate development policy.

IV. ALTERNATIVE AGRICULTURAL DEVELOPMENT POLICIES

In the short and medium term agricultural development plan (Pelitada VI and Repelitada VII), poverty elimination and improving farm production from a simple subsistence level to a semi-commercial level among small farm households should be given priority. An integrated regional development approach is a more appropriate development strategy than the conventional sectoral-oriented development approach.

In a comprehensive development approach, various sectors and sub- sectors are interlinked and support each other in a package programme. An integrated agricultural development programme would include interlinking sub-programmes such as: provision or distribution of assets (land, capital) in significant economies of scale, provision of supporting physical and institutional infrastructures, built-in environmental conservation, human resource quality (skill) improvement and improved appropriate technology, post production (harvest) management, and marketing supports.

The evaluation results of the Integrated Area Development Project (lADP) in Kecamatan Lembor, Kabupaten Manggarai showed positive results when it was designed to suit a particular social economic condition. The following diagram shows the lADP Lembor programmes as a comprehensive package and the results after five years of implementation (Kameo 1993).

46 Social Economic Problems in Agricultural Development

Diagram 3 Integrated Area Development Project (lADP) and its Intermediate and Final Impacts: the Pilot Project in Kecamatan Lembor, Kabupaten Manggarai, East Nusa Tenggara

lADPiMqimnpnitch Mcfncdslc iTqads HralBMiacs

AsstMnlomisNpscliane: OpInuluscofigBaArklanl InKstUkiimlifng Hoaing 114 Muse niinKiK Re^to sunA Id dmw agriakm i tneaKinielalagnabn iipds I ouVUaHiroducMr' CeiMisstftesA icfiHCS PinaioniitdcnitMiigiat Martetlorsuslijsiioilucl SsnmingiiiindHliy: SniMctaaM

ImpravsnenK n (|ua% ol He aid slab BCaiM"

ImgAaidimeli lEsbMslifflaiilaffaocession IMetplaa I aidusliiesandsanice adMes** Cermsn^knty

Mkrnsragemettmg Increasa in gwerrvncflt rewnjeflix)

supr wad lecal and lagjonat aconomy

Note: * Planting frequency of rhe sawah changed from one to rwo times a year. Producuvity increased from an average of 2.2 ton per Ha to 4.22 ton per Ha. ** Per capita income from farmers in three villages covered in the lADP Lembor (Daleng, Waibangka and Surunumbeng) increased from Rp 50,600, Rp 138,400 and Rp 121,800 in 1989, to an average of Rp 220,850 in 1993 (and this is only income from sawah). Average agriculture (paddy) surplus for trading has increased from less than 107oto47B7o. *** Number of mills in Lembor increased from 10 imits in 1986 to 40 units in 1991. Several new kiosks have been established. Number of traders in the weekly local market have doubled.

On a micro level, e.g. a farming system programme, an integrated development approach would he a farm with balanced combinations of food crops, commercial trees planted along the borders that can also function as land conservation assets, and grass or cut-and-carry feeding

47 Kameo type of trees (legumes) for livestock. Another example is the cattle raisin programme. In order to have a significant result, comprehensive and integrated package programmes would have to include; farm household economic support during a certain gestation period, provision of yoimg bulls for fattening in sufficient economic scale, feeding supply, water supply in the dry season, compost making, and infrastructure support (professional extension programmes, animal health centre, breeding programme, financial institution for providing credit funds, transportation network, well-functioning market, and low cost, transparent and efficient government bureaucracies).

Another crucial aspect for policy consideration is the distribution of land, the main agricultural asset. Land conservation programmes could be more effective if the legal status of land ownership were secured and if the state-owned (critical) land were distributed among the farmers and they then, with government support, would become responsible for the conservation programmes. This scheme could be more effective in preventing the land degradation process than the Hutan Tanaman Industry scheme or the massive reboisasi or penghijauan programmes by the government (Kanwil/Dinas Kehutanan) which often fail. Naturally, when there is a sense of belonging, people are apt to be more responsible if they are given responsibility and if they can see that they will benefit from it.

Still in regard to land conservation programmes. East Nusa Tenggara and East Timor are badly in need of a very strong and fanatic moral campaign to make the people in these regions become environmentally aware. This programme can be called Tiijaunisasi Timor' or 'program penyelamatan tanah Timor' or given any catchy propaganistic slogan. If between 1996 and 2000, each household were responsible for planting and take care of just two trees per year, by the year 2000 there would be 6,200, 000 new trees in East Nusa Tenggara and 1,500,000 in East Timor. If this process continues, the bare lands of these region would be systematically covered as time went on. I personally believe that the people of these regions should take full responsibility for preventing the environmental deterioration of these regions. The government can provide supporting facilities such as seedlings, fencing, and water supply in the dry season.

48 Social Economic Problems In Agricultural Development

V. CONCLUDING REMARKS AND AGENDA FOR FURTHER RESEARCH

A. Concluding Remarks

There are two core problems facing agricultural development in East Nusa Tenggara and East Timor. First, as in many arid and semi-arid areas in developing coimtries, agricultural development in the semi-arid region of East Nusa Tenggara and East Timor is hampered and challenged not only by physical environmental constraints but also by other social economic and institutional constraints as well. Climatic factors, man made errors and inappropriate development policies are leading the agricultural practices in these region into non-sustainable agriculture. Second, poverty and low level living standards have not only encouraged the farmer to use unsustainable farming systems but, at the same time, prevented the farmers from stopping environmental deterioration.

There is a potential for agricultural development in these regioias. To realise this potential, efforts have to be made to eliminate constraints and design and implement an appropriate development approach/strategy. A comprehensive and integrated development approach would seem to be the most suitable one.

Development activities in general and agricultural development in particular in a semi-arid region like East Nusa Tenggara and East Tunor can oidy be sustainable by giving priority to environmental aspects. Government cannot be held responsible for environmental care. People should take more responsibility.

B. Agenda for Further Research

(1) Research in social cultural aspects concerning: traditional beliefs related to farming practices; traditional ways/means of land conservation and environmental protection; attitudes/values toward (agricultural) work and leisure; social structures in the decision making process; entrepreneurship, and future orientation of the people.

(2) Research in social economic aspects includes: an economic analysis of agricultural potential (production, marketing, prices, organisational structure, adoption of innovation ); measure of

49 Kameo

comparative advantage of potential agricultural commodities (for choosing the most profitable commodities to be produced); changes in consumption pattern (desire for modem consumer goods) and how it affects the economic activities (production) of farm households.

(3) For technical aspects of the farming system, I would like to suggest the following topics/research questions to be considered.

• Tillage system in relation to productivity and land degradation.

• Ground protection: what kind of mulching or ground cover is most suitable

• Mixed cropping and alley cropping: types and number of crops, benefits of intercropping compared to sole cropping. • Ways of increasing the quality of local meadow grass for pasture. Even though the costs of pasture establishment can be high, Mullen (1995) stated "replacement of weed infested native pastures with improved pastures can improve ruminants liveweight gains by up to 250%" Is there any other cut-and-carry animal feed aside from the lamtoro and turi that can be used as a substitute? • Kinds of trees that have economic value (commercial trees) which are suitable for agroforestry and environmental protection purposes. What would be the best agroforestry technique? Beets (1990, p.690) stated, "On the whole, good agroforestry techniques are not yet available for drier areas".

• What ecological damages result from bush and grass burning? • What would be the ideal carrying-capacity for agricultural land (for humans and livestock)?

• R and D of affordable and appropriate farming hand tools • On-farm physical soil conservation works, e.g. types of appropriate watershed planning

• How significant are the following variables in determining the rate of farm productivity: crop husbandry (weeding system, plant-configuration); soil fertility management; time of operation; systems manipulation (land use management,

50 Social Economic Problems in Agricultural Development

rational crop selection, use of available labour); and external inputs (fertilisers, pesticides, machinery)? '

In conducting research, the following points should be taken into consideration: 1

• Agriculture is a complex activity. A multi-disciplinary approach is a must in order to have a comprehensive imderstanding of that complexity. Each individual discipline is resporrsible for its respected field of expertise, but decisions for policy purposes have to be based on inter-disciplinary findings/conclusions.

• Agricultural research should not only describe things but also explain why things are as they are. • Avoid biases in agricultural research. Newman et al (1979 p.243) suggested avoiding three types of biases in collecting agriculture data:

• 'point' biases, i.e. the tendency to consider the farmer at one point m time;

• 'individualistic' biases, i.e. when researchers consider the farmer as an independent decision maker; and • 'homogenous' biases, i.e. when fanners as a group are assumed to be homogenous.

51 Kameo

REFERENCES

Gray, Beets, C, 1990, Raising and Sustaining Productivity of Smallholder Farming Systems in the Tropics: A Handbook of Sustainable Agricultural Development, AgBe Publishing, Alkmaar.

Biro Pusat Statistik, 1994a, Gross Regional Domestic Product of Provinces in Indonesia by Industrial Origin 1987-1992, Jakarta.

,1994b. Expenditure for Consumption of Indonesia per Province

1993, Jakarta

,1994c. Statistical Yearbook of Indonesia 1993, Jakarta.

, 1994d, Penduduk Miskin dan Desa Tertinggal 1993: Metodology dan Analisis, Jakarta. Fox, James, J., 1977, Harvest of the Palm: Ecological Change in Eastern Indonesia, Harvard University Press, Cambridge.

Newman M, at al, 1979, 'Farm-Level Studies in the Semi-Arid Tropics of West Africa', in ICRISAT, 1979, Socioeconomic Constraints to Development of Semi-Arid Tropical Agriculture, Proceedings, Hyderabad, India.

Alan at al, 1995, 'Population Growth and Change', in Jones, Gavin, J., and Yulfita Rahardjo, eds., 1995, People, Land and Sea: Development Challenges in Eastern Indonesia, Indonesia- Population Related Research for Development Plarming and Development Assistance in Indonesia Project (Preliminary draft).

Kameo, Daitiel D, 1994a, 'An Analysis of Development Process in East Timor: Background, Achievements, Problems and Alternatives', Paper presented at the seminar on Political Economy of East Timor, Center for Southeast Asian Studies Northern Territory University, Darwin 24 -11 -1994.

,1992, 'Evaluation of the Integrated Area Development Project (lADP) in Kecamatan Lembor, Kabupaten Manggarai, Nusa Tenggara Timur', BAPPEDA Propinsi Dati 1 NTT and Fakultas Ekonomi UKSW, Salatiga.

52 Social Economic Problems in Agricultural Development

,1994b, 'Poverty among cattle farmers in East Nusa Tenggara: A case study in Kabupaten Kupang and Kabupaten Timor Tengah Selatan', Paper presented at the Workshop on the Contemporary Eastern Indonesia, RSPAS Australian National University, Canberra.

Kameo, Daniel, D., et al, 1993, Evaluasi Pembangiman Lima Tahim Kelima Periode 1989/1990-1993/1994 Propinsi Daerah Tmgkat 1 Tunor Timur, Universitas Kristen Satya Wacana, Salatiga

Mullen B.F., 1994, 'Practical pasture establishment under plantation crops', in Mullen, B, P., and H.M. Shelton, eds. Integration of Ruminants into Plantation System in , ACIAR Proceedings No. 64, Canberra.

Ormeling, F,J, 1957, The Timor Problem: A geographical interpretation of an vmderdeveloped island, Martinus Nijhoff, 's- Gravenhage.

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