Asian Transformations in Action - Api-fellowships.org

146 SPECIFICITIES OF GLOBALIZATIONout of a total population of 127.8 million people. InIndonesia, the majority are farmers. In 2003, there were25.4 million farm families, making up 56 percent of thetotal population.The most important agricultural change in the twocountries was the Green Revolution. The GreenRevolution transformed the pattern of agriculture fromtraditional farming (which used human and animal laborand was very nature-dependent) to modern agriculture.This form of modern agriculture required the use ofchemicals and new technologies, including improvedseeds and animal breeds. High Yielding Varieties whichrequired the use of chemical fertilizers and pesticideswere developed. Farmers had to depend on these externalinputs produced by agribusiness companies. Before theGreen Revolution era, Indonesia had more than 8,000native rice varieties (Brookfield and Byron 1967). By1988, 74 percent of these native rice varieties had beenlost (WRI 1998). Native rice varieties were replaced byhigh yielding varieties promoted by the governmentwith support programs such as input subsidies. In 1984,Indonesia achieved food self-sufficiency but the countryfaced environmental problems as a result of agriculturalchemical use. Soil and water were contaminated; pestproblems spread as pests grew resistant to chemicals.The volume of production stabilized and then beganto decrease due to environmental changes. Japan alsofaced environmental and chemical contaminationproblems. Western influence had entered Japan sincethe Meiji reign; at that time, Japan adopted moderntechnology and external inputs in its agriculture.Experimental research on agriculture was introduced,although it required many years to be applied in theJapanese context. After the Second World War, therewas an increase in chemical use in order to meet thecountry’s needs for food self-sufficiency. Japan began toexperience environmental problems in 1965, which isthe same period during which Indonesia adopted GreenRevolution technology in its agricultural sector.Changes in agriculture under globalizationAgriculture in both countries is confronting problemsfrom trade liberalization. Both multilateral and bilateralagreements are moving Japan and Indonesia towardsliberalized economies. The Uruguay Round of theGeneral Agreement on Tariffs and Trade (GATT) 2affected the Indonesian agricultural sector. In addition,under regional agreements that have been made,such as the Association of Southeast Asian Nations(ASEAN) and Asia-Pacific Economic Cooperation(APEC), domestic support from the government tothe agricultural sector has been abolished. The role ofthe government in the rice trade has been reduced. Thegovernment has had to change its policies and allow theprivate sector to expand its role in trading; this was beendone together with the reduction of export and importtariffs. For example, import tariffs on agricultural itemswere reduced to five percent in 1999. The process oftariff reduction began in the early 1990s and, even asIndonesia was confronted with economic problems in1998-99, the country still had to follow its internationalagreements. As the country faced economic problems,it had to borrow money from the IMF and the WorldBank. The loan came along with conditions that forcedIndonesia to adopt free trade policies.Japan also faced strong pressure to open its country upto free trade agreements and reduce its import tariffs. In1990, Japan had to reduce its tariffs on oranges and beefand, in 1993, on rice. It has had to abolish domesticsupport for agriculture. As a result, it has adapted itslaws to follow the terms of international agreements. In1999, Japan declared the Basic Law on Food, Agricultureand Rural Areas to replace the Basic Agriculture Lawof 1961. The new law addressed production efficiency,increased competitiveness and food security. The detailsof how this change has impacted the agricultural sectorare outlined below:1. Food self-sufficiency and trade competitionThere is no exemption for a developed country likeJapan nor for a developing country like Indonesia. Aftersigning free trade agreements, both faced problems dueto decreased food self-sufficiency. In Japan, food selfsufficiencydecreased and the role of the agriculturalsector declined after the Second World War. Japan hasto depend on imported food. This is because the countrybecame an industrialized country. Free trade shouldbenefit net-food importing countries like Japan but theratio of the nation’s food self-sufficiency has declined:Japan’s food self-sufficiency was 48 percent in 1990,but declined to 43 percent in 1995 and 40 percent in2000. At present, Japan imports food such as bananas,mangoes, chicken, shrimp, beef and vegetables. Morethan 60 percent of its imports come from the USA,Australia, China and Thailand. The domestic price ofagricultural products has likewise decreased. Since thebeginning of trade liberalization, with the importation oforanges and vegetables from China, domestic vegetableproducers have suffered since they cannot compete withcheaper Chinese vegetables.Indonesia faced economic problems in 1997-1998,and with them, problems of food insecurity andpoverty. In 1999, the number of poor increased to 23percent. Indonesia imported 5.8 million metric tonsAsian Transformations in ActionThe Work of the 2006/2007 API Fellows