Food and Agriculture
Organization of the
United Nations
Agricultural Development Economics Division (ESA)
Rice public expenditure policies in
Asia
David Dawe
Agricultural Development
Economics Division and
Regional Office for Asia
and the Pacific, FAO
Bangkok, Thailand, 28
November 2013
Food and Agriculture
Organization of the
United Nations
Agricultural Development Economics Division (ESA)
Ag spending has increased in
recent years
Agricultural spending as % of agricultural GDP
Source: IFPRI SPEED database
Bangkok, Thailand 28 November 2013
Regional Office for Asia and the Pacific
2
Food and Agriculture
Organization of the
United Nations
Agricultural Development Economics Division (ESA)
Ag spending has increased in
recent years
Agricultural spending as % of agricultural GDP
Source: IFPRI SPEED database
Bangkok, Thailand 28 November 2013
Regional Office for Asia and the Pacific
3
Food and Agriculture
Organization of the
United Nations
Agricultural Development Economics Division (ESA)
Sources of public agricultural spending
National government accounts for about
80 percent of ag expenditures in Indonesia
and the Philippines, 67 percent in Cambodia
Donor spending is less important than
national government spending
Both national government and donor
spending have been increasing in recent
years
Bangkok, Thailand 28 November 2013
Regional Office for Asia and the Pacific
4
Food and Agriculture
Organization of the
United Nations
Agricultural Development Economics Division (ESA)
But the quality of public spending
is what matters most
Impacts of public expenditures on growth in India
Source: Fan et al (2008)
Bangkok, Thailand 28 November 2013
Regional Office for Asia and the Pacific
5
Food and Agriculture
Organization of the
United Nations
Agricultural Development Economics Division (ESA)
Composition of agricultural spending in the Philippines
2001-2007
2009-2011
2012-2013
National rice program
21.1%
18.4%
13.1%
National corn program
2.0%
2.5%
2.4%
Other banner programs
7.5%
9.5%
6.9%
Irrigation
46.0%
38.6%
50.4%
Farm to market roads
13.0%
12.5%
11.6%
Other expenses
11.4%
19.0%
16.0%
Department of Agriculture, OSEC budget, million Pesos
13,456
33,423
51,735
Bangkok, Thailand 28 November 2013
Regional Office for Asia and the Pacific
6
Agricultural Development Economics Division (ESA)
Food and Agriculture
Organization of the
United Nations
Composition of agricultural spending in Cambodia
Share of spending in
2007
Share of spending in
2009
% increase in 2009
comp. to 2007
Irrigation
27.7%
37.3%
87%
Roads
40.5%
34.4%
18%
Other
agriculture
Total, $ billion
31.8%
28.4%
24%
463.7
643.6
39%
Bangkok, Thailand 28 November 2013
Regional Office for Asia and the Pacific
7
Agricultural Development Economics Division (ESA)
Food and Agriculture
Organization of the
United Nations
Composition of agricultural spending in Indonesia
Share of
spending in
2006-2007
Share of
spending in 20082009
% increase of
spending in 2009
comp to 2006
Fertilizer subsidy
15.6%
28.9%
485%
Seed subsidy and Raskin
20.8%
25.9%
191%
Irrigation
24.7%
17.1%
21%
Research and development
2.0%
1.1%
28%
Other expenses
36.9%
27.0%
74%
Agricultural budget, RP billion
30,290
58,310
93%
Bangkok, Thailand 28 November 2013
Regional Office for Asia and the Pacific
8
Food and Agriculture
Organization of the
United Nations
Agricultural Development Economics Division (ESA)
Expenditures on public goods
Advantages and disadvantages
Increased growth and poverty reduction if
money is spent on agricultural R&D,
education and rural roads
Higher short-term political benefits if
money is spent on private goods/subsidies
Bangkok, Thailand 28 November 2013
Regional Office for Asia and the Pacific
9
Food and Agriculture
Organization of the
United Nations
Agricultural Development Economics Division (ESA)
Thank you for your kind
attention
Bangkok, Thailand 28 November 2013
Regional Office for Asia and the Pacific
10