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Food security: Theory, policy, and perspectives from Asia and the Pacific Rim
Book reviews
273
‘Industrialization aEd Social Peace’, ‘Closing Remarks’ at a conference on the inflation problem i-1 Latir; America, and his 1971 Annual Oration at the ME, ‘Socialism a;:d Economic Growth’. The latter speech ha.s been published in the fir- t number of Research in Economic Anthropology edited by George Dalton, although it is not listed in the bibliography. Jxwis’ ;Stected E+,onc&c I++itings unquestionably is a worthwhile addition to any development economist’s library. It is strong in giving one a flavor of Lewis’ work as an eademic economist. l[t is weaker from the standpoint of providing access ts Lewis’ policy papers with their trenchant pragmatism. And it is weaker still as a guide to Lewis’ prsonal ideological development. Of special interest is Lewis” continued expectation that the middle classes of the fcmner colonies can and will provide appropriate leadership in the late 20th century. Their post-colonial record of manafenlent of their respective nations has not been impressive. Rumor has it i’l:tt Professor Lewis has retired to Barbados to write the book he always has wanted to write - the book at which the opening pages df Labout in the M,‘estI&es only hinted - a history of the West Indian black middle class. H”ii1he stii insist. its he did in 1939, that this is the class with %jvhomso& salvation rests? If so, it will represent a predictable, although interesting, conclusion to the career of a great scholar, long imbued with the spirit of Fabianiam. If not, it waP represent a compelling and dramatic break wirh his own past. H’e:is, after all, the most distinguished scholar produced by the West Indian Loloniai middle classes. His harsh criticisms of the IVest African one party state:; in the suggest his endorsement of is not unconditional. But critique his own roots would be his Pudience an additional fascinating realm of inquiry and specula%ion
University of
Jr. NC
Anthony H. and Rodney Tlpers, eds., Food Security: Theor:, and Perspectives and The Pacific Rim ~rexington Books, Lexington, 1982) pp. in 1973-1974 heigl;tened interest in food security of the developing countries led to of important possible to the problems of studies of underlying causes of olm and Tyers The book edited by C articles on this topi’c. It is the outgrowth of conferences 01~ and trad: h& at the est Center, in 1979 and 1.980.Although
its
geographical focus is ON.the A&an 2nd ?a&~
Rim countries, in subject
matter content and general con&sions, it is remarkably similar to an ear,lier u&me FnaodSecurity for the Deudopi~g Camtries edited by Alberto Valdez of the Mernational Food Policy RGsearch Institute (LFPRI). The Valdez coilecti~>n is based ..on’ a conference spoz~~red jointly by CJMMYT “(the International Maize and SWheatImpxweqwnt Center in Mexico) and lFPRL
in W8. Readers interested in this generai topic are advised to read the intr&wtsry chapters to both of these books, &s they provide an excellent overview G I;& G;ouii;liG,
The focus of the C%ishdm-Tyerti
Food Security in Asian Countries; and Part ID, Results from Empirical Analysis. The first four chapters of Part I deal with the issue of food stockpiling. The conclusions can be summarized as follows. IIt is cheaper for the food importing countries to store money in the form of foreign exchange reserves than to store food. Hence, developing ceuntries should avoid acclumularing large buffer stocks (R&linger). Instead, international efforts might be more effectively invest!& in financial-insurance schemes that would assist countries in coping with the h.ighiy unstable food import bills needed for securing stable consumption at current levels \Reuthnger). iountrrGs mnght &o consider a supply insurance program between exporters and importers, as this would bk: clearly superior to food deficit countries either stockpiling in thl= short-riru or striv;ng for self-sufficiency in food production in the long run (Lattimore). A.t the national level, the rational for public stockpiling operations has not been based on identification tif specific sources of market failtue in the private sector (Chisholm). A )>rivate storage industry with many traders will in theory carry a socially optimal level of stocks (Sarris). In developing countries, where capital markets are more imperfect and futures markets ~s~~t~iy do not exist, there is a stronger case for some intervention lahoh:~. In short, it appears that all four authors would agree that ~~~li~,~in excess of levels prevailing in a competitive market is a cost& i~e~~~ientmeans of attaining national food security. The final chapter in this section views the food security issue from a rather diffe.rent perspective. Roumzsset argues that food insecurity is largely a rural affected by fluctuations in household production and well as prices. Stable food prices, therefore, are not a security particularly in the r rspective it in ToliLy
Isaws;
Pact
15 Paspectives
on
separate the short tmn from the more secular problems of rgra! poverty. I ..w
example, efforts to stabilize food production and prices could divert res0urcc-J; from activities designed to increase food product :on in rhl: long run. In support of this view, Mellor points out in the foreword to the earlier Valdez volume that if food security is viewed as a prob’lem of the poor, there is little purpl.)se served m seuarating the problem of fluctuations iu food supplies from the r,roblcm of inadequate total supplies. Part II presents case studies of food security from the national perspective in four countries -- Indonesia, Sri Lanka, India, and Japan. These studies show &early that different countries, depending on their particular circumstances, have a very different view of the food security problem. Furthermore, national goals include objectives such as political stability, reduced dependence on foreign markets, and equit; . It is not always clear to what degree these goals conflict with the objective of ecor~mic efficiency. The authors of tie country studies suggest that national obJectives can be achieved with greater economic eficiency. But one wonders in reading Yamada’s article whether even a highly developed country like Japan is wiVing to adopt an economically more rational food policy. As Yamada states, the continued maintenance of emergency sto,:ks of rice, soybeans, and petroleum is also a means of mitigating the damaging effects of possible focld or energy supply curtailment. Such reserves also help to stabilize intl,=rnationat markets and thus contribute to more Lternationalists strateges for attaining national food security. The four empirical studies in Part III are distinctly different. Dixon shows how the Indonesian food expenditure surveys can be used to assist in making food policy decisions. He emphasizes the need to disaggregate data below the nationai level. Just as we see in Pkrt II that food security (and the policies designed to secure it) means different things to different countries, the same can be said for different groups in the population of a large and diverse country such as Indonesia. Bouis and Herdt, through their projection model for food production in the Philippines, illustrate the classic trade off that most Asian countries seem willing to make between price and pr&ucti,nl- pol~:y. A low retail price of rice can be maintained if adequate investmem is made in research, infrastructure, and the institutional changes needed to ensure a rapid grov:th in rice production. The model attempts to spell out the magnitude of lhe Investments needed and the results illustrate tititt rektnce on a highs !WC~ cf inputs alonc: wll not be sulficient to meet the production goals. There ml& + continuing increases in the eflciency of production. 4-t or ant1 .+%rl)CfilY r,uu; &.ulisy Hanpongpandh anal] zes the iikzly impa-... cement, signed by a meeting of the ASEAN foreign ministers IQ her counfries. The results of elation a~~~~~is tori:::set aside for t
r&ht of refusd afford& ASEAN importers of Thai rice in deficit years can s!lrbstantially improve the rice import security of ASE N governments. The fmal chapter by, Tye~s and Chisholm, one of the more interesting studies in the book3 ‘eltplores the’ interdependentle of cx untries engaged in trade in food. Using a global. stochastic simulation modtll of international grain and meat markets;, the author% attempt to determine whether economic welfare could be improved with a change in the pricing policies and a ~&erahz_ation of trade among both the cieveloped and the developing csc~untries:.The results of the analysis indicates that the cost to consumers of protectionist poli&s in the industrialsj7pa food-importing countries exceeds the corresponding gain ‘to their producers and governments. The lower, yet more unstable, grices that result if the pl*otectionist policies were eliminated appar to benefit the net food importers among the developing countries while impo&tg a net welfare cost on the food exporters. The provision&t (that IS, domestic prices below border prices) and price M&zing policies of ,the Asian dej4oping countries are also found to impose a net welfare oost domestically as measured in expected welfare terms. However, amlysis of this type cannot reflect the value governments place on other goals. The authors are quick to point out that the pricing poiicies of the rievelopmg cvrri;Ges are shown to provide a considerable protection a&t food insecurity to consumers in relative]:, poor countries. Fiaally, the authors giopose a trade liberalization policy such that part of ihe gains in the indus!riaIized food-importing countries might be employed for the restoration of produdion incentives in the developing countries, while low and stable f~~ti prices are retained in the developing countries. Whether or not such a policy Is feasible is open ta question. However, the low food price policy currently pursued by the developing countries appears to be a. rational response to the policies of the developed countries. First, as mentioned by the riuthcbrs?the 4fect cf protectionism alone serves to reduce the marginal social cost of food in the developing countries. Second, as illustrated by Bouis anti Her&, the developing countries trade off on lower foods prices with investment ia other production incentives designed to increase the efficiency of input use. In this they are assisted by the donor ncies who provide f.&rrcial support for the development of international arch centers, the cofisf:ruc;tion of irrigation dams, and a host of other a~~~v~t~~s, In summary, the we< of evidence in this book favors a liberalization of food grains and a minimum ls4 of stockpiling to achieve national urity with maximum economic efficiency. Distortions in price result ~~~a1 cost for both tht developed and the developing economies. countries of Asia seem to have found a satisfactory food s ectives. They have been abl prices e e~~~o~rag~~r~‘~t
Book reviews
27!
production through other incentives It is not clear i,c me that the food deficit. countries woulc, benefit greatly from a liberalization of trade. But this is a subject for further study. Randolph Barker Cornell University, Ithaca, NY
Victor Bulmer-Thomas, Input-Output Analysis in Pc~.++n~ (John Wiley, New York, 1982) pp. xvi + 297, $44.95.
Countries
The creation of input-output tables in developing countries is an arduous task, full of pitfalls and uncertainties. Victor Bulmer-Thomas has provided a well-etched, detailed map of the terrain, which seems certain to shorten the production peric 1 of these tables in many countries. But this is not only a handbook ior those involved in the compilation of I,‘0 matrices. It is also the most complete systematic work available on the basic theory and applications of input-output, and so it is ve;y -much a book for students, teachers, and applied workers in the area. While it is explicitly written with developing countries in mind, much of whar is here is directly applicable to developed countries as -jvell. 7%;; &_& L ;I; ;LUC. yap 1s. I ilt: nrst 11 chapters are devoted to problems of table construction and methodology. The last 6 chapters delve into a plethora of applications. Virtually the entire first part should be required reading fiir anyone constructing an input-output t;,ble. The author’s own experiences in working on three I/O projects (Costa Rica, Scotland and Morocco) as well as his asknilation of the relevant literature and his iwn good common sense, make for pag&s f~di al impor;ant ideas and innumerable practical tips. For those who have never worked on construction of an I,/0 matrix and who do n& contemplate doing so, these chapters still offer a unique opportunity to understand what really goe i on behind the final tables. Selective reading, however, may be called for. Complete chapters: c;ie devoted to topics such as price ievei, fweigu iwit: and secondary production, subjects that are handled in many other I/O reference works m a few pages. While t”le fuller trchtments accorded here are one of tl:e book’s strengths, all of the :xposition on all of the subjects will not nec.:ssarily interest every reader. It is P credit to Bulmer-Thomas’ expository rkill that each of the chapter ~iradotter s:!krhnpt *rs is sufficiently self ch>ntained that they can be read selectively, as dictated bjr the reader’s interest. The second part of the book gathers together m)st of the important tables may be put. he press ntatiolls are ~e~er~.lly applications to whit succinct, up to date, and q ite ~cad~~ble.!3 nts of p~a~~~~g odc!3 fii:aq is area a bit thin, but is undzrstandabie, given that fi volumes can and have been written on sectoral plannirlg alone.
273
‘Industrialization aEd Social Peace’, ‘Closing Remarks’ at a conference on the inflation problem i-1 Latir; America, and his 1971 Annual Oration at the ME, ‘Socialism a;:d Economic Growth’. The latter speech ha.s been published in the fir- t number of Research in Economic Anthropology edited by George Dalton, although it is not listed in the bibliography. Jxwis’ ;Stected E+,onc&c I++itings unquestionably is a worthwhile addition to any development economist’s library. It is strong in giving one a flavor of Lewis’ work as an eademic economist. l[t is weaker from the standpoint of providing access ts Lewis’ policy papers with their trenchant pragmatism. And it is weaker still as a guide to Lewis’ prsonal ideological development. Of special interest is Lewis” continued expectation that the middle classes of the fcmner colonies can and will provide appropriate leadership in the late 20th century. Their post-colonial record of manafenlent of their respective nations has not been impressive. Rumor has it i’l:tt Professor Lewis has retired to Barbados to write the book he always has wanted to write - the book at which the opening pages df Labout in the M,‘estI&es only hinted - a history of the West Indian black middle class. H”ii1he stii insist. its he did in 1939, that this is the class with %jvhomso& salvation rests? If so, it will represent a predictable, although interesting, conclusion to the career of a great scholar, long imbued with the spirit of Fabianiam. If not, it waP represent a compelling and dramatic break wirh his own past. H’e:is, after all, the most distinguished scholar produced by the West Indian Loloniai middle classes. His harsh criticisms of the IVest African one party state:; in the suggest his endorsement of is not unconditional. But critique his own roots would be his Pudience an additional fascinating realm of inquiry and specula%ion
University of
Jr. NC
Anthony H. and Rodney Tlpers, eds., Food Security: Theor:, and Perspectives and The Pacific Rim ~rexington Books, Lexington, 1982) pp. in 1973-1974 heigl;tened interest in food security of the developing countries led to of important possible to the problems of studies of underlying causes of olm and Tyers The book edited by C articles on this topi’c. It is the outgrowth of conferences 01~ and trad: h& at the est Center, in 1979 and 1.980.Although
its
geographical focus is ON.the A&an 2nd ?a&~
Rim countries, in subject
matter content and general con&sions, it is remarkably similar to an ear,lier u&me FnaodSecurity for the Deudopi~g Camtries edited by Alberto Valdez of the Mernational Food Policy RGsearch Institute (LFPRI). The Valdez coilecti~>n is based ..on’ a conference spoz~~red jointly by CJMMYT “(the International Maize and SWheatImpxweqwnt Center in Mexico) and lFPRL
in W8. Readers interested in this generai topic are advised to read the intr&wtsry chapters to both of these books, &s they provide an excellent overview G I;& G;ouii;liG,
The focus of the C%ishdm-Tyerti
Food Security in Asian Countries; and Part ID, Results from Empirical Analysis. The first four chapters of Part I deal with the issue of food stockpiling. The conclusions can be summarized as follows. IIt is cheaper for the food importing countries to store money in the form of foreign exchange reserves than to store food. Hence, developing ceuntries should avoid acclumularing large buffer stocks (R&linger). Instead, international efforts might be more effectively invest!& in financial-insurance schemes that would assist countries in coping with the h.ighiy unstable food import bills needed for securing stable consumption at current levels \Reuthnger). iountrrGs mnght &o consider a supply insurance program between exporters and importers, as this would bk: clearly superior to food deficit countries either stockpiling in thl= short-riru or striv;ng for self-sufficiency in food production in the long run (Lattimore). A.t the national level, the rational for public stockpiling operations has not been based on identification tif specific sources of market failtue in the private sector (Chisholm). A )>rivate storage industry with many traders will in theory carry a socially optimal level of stocks (Sarris). In developing countries, where capital markets are more imperfect and futures markets ~s~~t~iy do not exist, there is a stronger case for some intervention lahoh:~. In short, it appears that all four authors would agree that ~~~li~,~in excess of levels prevailing in a competitive market is a cost& i~e~~~ientmeans of attaining national food security. The final chapter in this section views the food security issue from a rather diffe.rent perspective. Roumzsset argues that food insecurity is largely a rural affected by fluctuations in household production and well as prices. Stable food prices, therefore, are not a security particularly in the r rspective it in ToliLy
Isaws;
Pact
15 Paspectives
on
separate the short tmn from the more secular problems of rgra! poverty. I ..w
example, efforts to stabilize food production and prices could divert res0urcc-J; from activities designed to increase food product :on in rhl: long run. In support of this view, Mellor points out in the foreword to the earlier Valdez volume that if food security is viewed as a prob’lem of the poor, there is little purpl.)se served m seuarating the problem of fluctuations iu food supplies from the r,roblcm of inadequate total supplies. Part II presents case studies of food security from the national perspective in four countries -- Indonesia, Sri Lanka, India, and Japan. These studies show &early that different countries, depending on their particular circumstances, have a very different view of the food security problem. Furthermore, national goals include objectives such as political stability, reduced dependence on foreign markets, and equit; . It is not always clear to what degree these goals conflict with the objective of ecor~mic efficiency. The authors of tie country studies suggest that national obJectives can be achieved with greater economic eficiency. But one wonders in reading Yamada’s article whether even a highly developed country like Japan is wiVing to adopt an economically more rational food policy. As Yamada states, the continued maintenance of emergency sto,:ks of rice, soybeans, and petroleum is also a means of mitigating the damaging effects of possible focld or energy supply curtailment. Such reserves also help to stabilize intl,=rnationat markets and thus contribute to more Lternationalists strateges for attaining national food security. The four empirical studies in Part III are distinctly different. Dixon shows how the Indonesian food expenditure surveys can be used to assist in making food policy decisions. He emphasizes the need to disaggregate data below the nationai level. Just as we see in Pkrt II that food security (and the policies designed to secure it) means different things to different countries, the same can be said for different groups in the population of a large and diverse country such as Indonesia. Bouis and Herdt, through their projection model for food production in the Philippines, illustrate the classic trade off that most Asian countries seem willing to make between price and pr&ucti,nl- pol~:y. A low retail price of rice can be maintained if adequate investmem is made in research, infrastructure, and the institutional changes needed to ensure a rapid grov:th in rice production. The model attempts to spell out the magnitude of lhe Investments needed and the results illustrate tititt rektnce on a highs !WC~ cf inputs alonc: wll not be sulficient to meet the production goals. There ml& + continuing increases in the eflciency of production. 4-t or ant1 .+%rl)CfilY r,uu; &.ulisy Hanpongpandh anal] zes the iikzly impa-... cement, signed by a meeting of the ASEAN foreign ministers IQ her counfries. The results of elation a~~~~~is tori:::set aside for t
r&ht of refusd afford& ASEAN importers of Thai rice in deficit years can s!lrbstantially improve the rice import security of ASE N governments. The fmal chapter by, Tye~s and Chisholm, one of the more interesting studies in the book3 ‘eltplores the’ interdependentle of cx untries engaged in trade in food. Using a global. stochastic simulation modtll of international grain and meat markets;, the author% attempt to determine whether economic welfare could be improved with a change in the pricing policies and a ~&erahz_ation of trade among both the cieveloped and the developing csc~untries:.The results of the analysis indicates that the cost to consumers of protectionist poli&s in the industrialsj7pa food-importing countries exceeds the corresponding gain ‘to their producers and governments. The lower, yet more unstable, grices that result if the pl*otectionist policies were eliminated appar to benefit the net food importers among the developing countries while impo&tg a net welfare cost on the food exporters. The provision&t (that IS, domestic prices below border prices) and price M&zing policies of ,the Asian dej4oping countries are also found to impose a net welfare oost domestically as measured in expected welfare terms. However, amlysis of this type cannot reflect the value governments place on other goals. The authors are quick to point out that the pricing poiicies of the rievelopmg cvrri;Ges are shown to provide a considerable protection a&t food insecurity to consumers in relative]:, poor countries. Fiaally, the authors giopose a trade liberalization policy such that part of ihe gains in the indus!riaIized food-importing countries might be employed for the restoration of produdion incentives in the developing countries, while low and stable f~~ti prices are retained in the developing countries. Whether or not such a policy Is feasible is open ta question. However, the low food price policy currently pursued by the developing countries appears to be a. rational response to the policies of the developed countries. First, as mentioned by the riuthcbrs?the 4fect cf protectionism alone serves to reduce the marginal social cost of food in the developing countries. Second, as illustrated by Bouis anti Her&, the developing countries trade off on lower foods prices with investment ia other production incentives designed to increase the efficiency of input use. In this they are assisted by the donor ncies who provide f.&rrcial support for the development of international arch centers, the cofisf:ruc;tion of irrigation dams, and a host of other a~~~v~t~~s, In summary, the we< of evidence in this book favors a liberalization of food grains and a minimum ls4 of stockpiling to achieve national urity with maximum economic efficiency. Distortions in price result ~~~a1 cost for both tht developed and the developing economies. countries of Asia seem to have found a satisfactory food s ectives. They have been abl prices e e~~~o~rag~~r~‘~t
Book reviews
27!
production through other incentives It is not clear i,c me that the food deficit. countries woulc, benefit greatly from a liberalization of trade. But this is a subject for further study. Randolph Barker Cornell University, Ithaca, NY
Victor Bulmer-Thomas, Input-Output Analysis in Pc~.++n~ (John Wiley, New York, 1982) pp. xvi + 297, $44.95.
Countries
The creation of input-output tables in developing countries is an arduous task, full of pitfalls and uncertainties. Victor Bulmer-Thomas has provided a well-etched, detailed map of the terrain, which seems certain to shorten the production peric 1 of these tables in many countries. But this is not only a handbook ior those involved in the compilation of I,‘0 matrices. It is also the most complete systematic work available on the basic theory and applications of input-output, and so it is ve;y -much a book for students, teachers, and applied workers in the area. While it is explicitly written with developing countries in mind, much of whar is here is directly applicable to developed countries as -jvell. 7%;; &_& L ;I; ;LUC. yap 1s. I ilt: nrst 11 chapters are devoted to problems of table construction and methodology. The last 6 chapters delve into a plethora of applications. Virtually the entire first part should be required reading fiir anyone constructing an input-output t;,ble. The author’s own experiences in working on three I/O projects (Costa Rica, Scotland and Morocco) as well as his asknilation of the relevant literature and his iwn good common sense, make for pag&s f~di al impor;ant ideas and innumerable practical tips. For those who have never worked on construction of an I,/0 matrix and who do n& contemplate doing so, these chapters still offer a unique opportunity to understand what really goe i on behind the final tables. Selective reading, however, may be called for. Complete chapters: c;ie devoted to topics such as price ievei, fweigu iwit: and secondary production, subjects that are handled in many other I/O reference works m a few pages. While t”le fuller trchtments accorded here are one of tl:e book’s strengths, all of the :xposition on all of the subjects will not nec.:ssarily interest every reader. It is P credit to Bulmer-Thomas’ expository rkill that each of the chapter ~iradotter s:!krhnpt *rs is sufficiently self ch>ntained that they can be read selectively, as dictated bjr the reader’s interest. The second part of the book gathers together m)st of the important tables may be put. he press ntatiolls are ~e~er~.lly applications to whit succinct, up to date, and q ite ~cad~~ble.!3 nts of p~a~~~~g odc!3 fii:aq is area a bit thin, but is undzrstandabie, given that fi volumes can and have been written on sectoral plannirlg alone.