Investment Priorities in Agriculture and Multisectoral Linkages in Corridor Development

Javed H. Mir Director, Environment, Natural Resources and Agriculture Division, Southeast Asia Department, ADB

Shifting landscape of agriculture across GMS

Energy and food price volatility Food security still a concern Agri productivity and poverty linkages Increasing competition for land and water resources Changing drivers of commercial agriculture creating opportunities for high value products Opportunities for private sector (including FDI/TNCs) in agri-business

Opportunities and risks from ANR

Quang Nam province, Viet Nam (An Illustration)
Alternative usual: Maximize output from Business as Scenario: Maximize function from landscape (i.e. intensive landscape (e.g. extensive land use agriculture, tourism, hydropower) conversion to agriculture, rubber)
Hydropower

NR investment

Within zone of influence of Da Nang and EastWest Economic Corridor Current land use supports many different sectors mining, hydropower, tourism, agriculture Two potential future development scenarios

Risks to hydropower, natural resource Business as usual Alternative Scenario investment due to deforestation in catchment

Tourism

Alternative Scenario Business As Usual Both Scenarios

Opportunity to increase urbanrural links through eco-tourism, organic farming/ agro-forestry, decentralized renewable energy

Need to move towards scenarios that optimize multi-sector development, increase resilience of investments, optimize natural resource supply

Towards holistic Development Corridors

Integrated development around GMS Corridors bringing together multiple sectors Increasing rural-urban linkages by developing green market chains (e.g., NTFPs), eco-tourism development Mobilizing private sector investments, particularly focusing on SME development to increase competitiveness and create jobs Increase resilience of investments by using climatefriendly technologies Integrating risk profiles for corridor investments

Natural Resource Contributions

GMS Core Environment Program and Biodiversity Conservation Corridors Initiative Phase II Assessing natural resource stocks and flows quality, quantity and extent of natural assets Strategic decision-making support for river basin and corridor development planning integrating efficiency and climate resilience upstream in the planning process Supporting resource use efficiency and private sector development enhancing energy efficient clean freight in SMEs through technology and behavior change EOC as a model for improved multi-sector corridor investment planning

Agriculture Investment Needs (and Key Directions) Market-oriented, environmental friendly agriculture. Food Security And Agriculture Productivity Improvement Rehabilitation and Upgrading of Rural Infrastructure Value Chain Support Core Agriculture Support program (CASP II) as the primary implementing instrument

Illustration Pro-Poor Value Chains in Economic Corridor

Global food market is robust 36% rise in food prices in the last year. Global market prices for organic vegetables are, on average, 2.4 times higher. Prices of organic produce is more stable. Food safety concerns driving the rapid growth.

Ongoing and Planned ADB Investments

Current 1. GMS Biodiversity Conservation Corridors ($69 mill) 2. Sustainable Natural Resource Management and Productivity Enhancement Project ($35 million) Pipeline 1. GMS Flood and Drought Mgmt ($132 mill) 2. Agri Commercialization and Resource Conservation Sector Development Program: CAM ($ 55 mill) 3. EWEC Productivity Enhancing Project: Lao PDR ($55 mill) 4. Pilot Program on Climate Resilience, CAM and Forest Investment Program, Lao PDR ($21 mill) 5. GMS Core Environment Program and Biodiversity Conservation Corridors (CEP-BCI) Phase II ($25 million) and GMS CASP II ($7.5 mill)

THANK YOU!