Academic journal article Southeast Asian Affairs

The Rural Economy

Academic journal article Southeast Asian Affairs

The Rural Economy

Article excerpt

By the late 1990s, with lower agricultural prices and lesser opportunities, the incomes of farmers were starting to be well-diversified away from farming. Trend growth rates in agricultural output had been rather high since the early 1990s, helping farmers to build up equity and start to confront the severe risks involved in world market trade.25 This explains the extremely good responsiveness to market opportunities, as Brazilian and other established coffee producers have found to their cost.26 Across a wide range of products, and not greatly assisted by state-supported marketing efforts, farmers have managed to increase output and exports. Through 2000 and 2001, as rice prices have weakened, things have got worse (but then rice since the early 1990s has not been a particularly profitable crop for farmers).

25. Widespread land access, in a pattern characteristic of a post-collectivized system, plays a strong positive role. This is preserved by the lack of a formal free market in land, supported in turn by various Party activities and measures. For a contraryview that argues for the importance of easing land title transfers, see the World Bank's rural sector review of the late 1990s, especially the earlier drafts. …

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