Asian Transformations in Action The Work of the 2006/2007 API Fellows ii Asian Transformations in Action The Work of the 2006/2007 API Fellows © The Nippon Foundation First published in July 2009 All right reserved. No part of this book may be reprinted, reproduced, or utilized in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from The Nippon Foundation Fellowships for the Asian Public Intellectuals. A PDF version of this book is available online at http://www.api-fellowships.org Printed by: ABENO PRINTING CO., LTD. 180, 182, 184, 186 Soi Chok Chai Jong Jumreon, Rama III Bang Phong Phang, Yannawa, Bangkok 10120 Tel: 66-2-2295-0022 Fax: 66-2-2294-0176 Asian Transformations in Action The Work of the 2006/2007 API Fellows SPECIFICITIES OF GLOBALIZATION 145 TRANSFORMATIONS IN AGRARIAN LIVELIHOOD AND THE SUSTAINABLE AGRICULTURE MOVEMENT UNDER GLOBALIZATION Supa Yaimuang Introduction The objective of my study was to understand changes in the agricultural sector and the creation of farmers’ The dynamic transformation of agriculture in many alternatives in the development of sustainable countries around the globe has been actively occurring agriculture in Japan and Indonesia. In Japan, this study under globalization. Globalization has created powerful focused on farmers’ livelihoods and farmers’ groups in economic, political, social and cultural ties across the prefectures of Mie, Saitama, Fukuoka, Hiroshima, borders (Singh 2007). After the Second World War, Hokkaido and Yamagata. These farmers are involved in the development of economic ties became the major the development of sustainable agriculture including theme in global integration as international trade and the issue of farmer-consumer linkages, as well as related investment were enhanced and production technology policy issues. In Indonesia, the study was conducted in greatly improved in line with the growth of transnational rice-based communities in Wonogiri District, Central corporations (TNCs). Information technology has Java and Ngawi District, Eastern Java. The study focused significantly speeded up this integration, especially in on the impact of trade liberalization and the formation the flow of money and investment, labor, production, of the communities’ alternatives based on local culture information and culture. and biodiversity. The study was conducted at two levels. At the policy level, data were gathered through a Within the context of globalization, the global economy literature review and interviews with local state officials. has been accelerated by the ideology of neoliberalism. On the issue of sustainable agriculture and communities’ Neoliberalism, which developed from capitalism, is alternatives, the study was focused at the community defined as trade liberalization in terms of goods, services level. Data were gathered through interviews with and capital, allowing them to flow across borders without family members and members of community groups, state control, leading to rapid economic growth (Janyapes NGO staff and university academics. Participation in 2000). In this context, TNCs have gained greater various activities such as meetings, seminars and on- power in economic negotiations that have included farm visits also generated data. deregulation, privatization, trade stabilization and liberalization. Meanwhile, international organizations Agricultural change: Political, economic and social like the International Monetary Fund (IMF), the World context Bank and the World Trade Organization (WTO) have played important roles in gearing up this economic Agricultural change in the two countries has been transformation. caused by changes in their political, economic and social systems. These include the change to adopt a Consequently, agricultural transformation has inevitably system of capitalism, which in Japan took place after the moved forward under several bilateral and multilateral Second World War. In Indonesia, after independence trade agreements. These trade agreements have been in 1945, the country declared itself a democracy and made between developed countries, in which agriculture launched a land reform program. Japan moved towards is highly subsidized, and developing countries, which are industrialization while Indonesia was still in the stage poor. The concept of trade liberalization considers that of nation building, adopting capitalism in 1967. After free trade will bring about competent trade competition a land reform program, the farmers in both countries and efficient production. It has been implemented by become small farmers. In Japan, the average land many international organizations as a method of poverty holding per family is one hectare except in Hokkaido.1 reduction. As a result, farmers’ ways of life have been Meanwhile, in Indonesia, the average land holding is transformed and small-scale farmers have inevitably had only 0.35 hectare. On the island of Java, where the to adjust to the context of globalization. As an alternative land is fertile and suitable for farming and hence, the to these changes, sustainable agriculture is proposed population relatively dense, the average land holding by the agricultural community. It was conceived as a is only 0.25 hectare. In Japan, the farm population is response to the impact of the Green Revolution. decreasing. In 2005, 1.96 million families were farmers Asian Transformations in Action The Work of the 2006/2007 API Fellows 146 SPECIFICITIES OF GLOBALIZATION out of a total population of 127.8 million people. In the government in the rice trade has been reduced. The Indonesia, the majority are farmers. In 2003, there were government has had to change its policies and allow the 25.4 million farm families, making up 56 percent of the private sector to expand its role in trading; this was been total population. done together with the reduction of export and import tariffs. For example, import tariffs on agricultural items The most important agricultural change in the two were reduced to five percent in 1999. The process of countries was the Green Revolution. The Green tariff reduction began in the early 1990s and, even as Revolution transformed the pattern of agriculture from Indonesia was confronted with economic problems in traditional farming (which used human and animal labor 1998-99, the country still had to follow its international and was very nature-dependent) to modern agriculture. agreements. As the country faced economic problems, This form of modern agriculture required the use of it had to borrow money from the IMF and the World chemicals and new technologies, including improved Bank. The loan came along with conditions that forced seeds and animal breeds. High Yielding Varieties which Indonesia to adopt free trade policies. required the use of chemical fertilizers and pesticides were developed. Farmers had to depend on these external Japan also faced strong pressure to open its country up inputs produced by agribusiness companies. Before the to free trade agreements and reduce its import tariffs. In Green Revolution era, Indonesia had more than 8,000 1990, Japan had to reduce its tariffs on oranges and beef native rice varieties (Brookfield and Byron 1967). By and, in 1993, on rice. It has had to abolish domestic 1988, 74 percent of these native rice varieties had been support for agriculture. As a result, it has adapted its lost (WRI 1998). Native rice varieties were replaced by laws to follow the terms of international agreements. In high yielding varieties promoted by the government 1999, Japan declared the Basic Law on Food, Agriculture with support programs such as input subsidies. In 1984, and Rural Areas to replace the Basic Agriculture Law Indonesia achieved food self-sufficiency but the country of 1961. The new law addressed production efficiency, faced environmental problems as a result of agricultural increased competitiveness and food security. The details chemical use. Soil and water were contaminated; pest of how this change has impacted the agricultural sector problems spread as pests grew resistant to chemicals. are outlined below: The volume of production stabilized and then began to decrease due to environmental changes. Japan also 1. Food self-sufficiency and trade competition faced environmental and chemical contamination There is no exemption for a developed country like problems. Western influence had entered Japan since Japan nor for a developing country like Indonesia. After the Meiji reign; at that time, Japan adopted modern signing free trade agreements, both faced problems due technology and external inputs in its agriculture. to decreased food self-sufficiency. In Japan, food self- Experimental research on agriculture was introduced, sufficiency decreased and the role of the agricultural although it required many years to be applied in the sector declined after the Second World War. Japan has Japanese context. After the Second World War, there to depend on imported food. This is because the country was an increase in chemical use in order to meet the became an industrialized country. Free trade should country’s needs for food self-sufficiency. Japan began to benefit net-food importing countries like Japan but the experience environmental problems in 1965, which is ratio of the nation’s food self-sufficiency has declined: the same period during which Indonesia adopted Green Japan’s food