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Participatory Research for Poverty and Conflict ResolutionThe 6th International Seminar of Afrasian Centre for Peace and Development Studies December 6, 2009
Yoshio Kawamura, Saleh Ali, Hisashi Nakamura & Misa Shojiya
龍谷大学アフラシア平和開発研究センターAfrasian Centre for Peace and Development Studies, Ryukoku University
研 究シリーズ 9Research Series 9
研究シリーズ
9
Is There A Japanese IR?
Seeking an Academic Bridge through Japan's H
istory of International Relations
龍谷大学アフラシア平和開発研究センター
ロゴは、ガーナ・アディンクラ模様の「双頭のワニ」。双頭のワニは、2つの口がたとえ争っても胃袋はひ
とつであり、つまり目的は同じなのだから、争わずに協力していこうという意味合いの平和のシンボルであ
り、アジアとアフリカという2つの地域を合わせて「アフラシア」という圏域(スフィア)を象徴的に示す
とともに、他方で同地域における非暴力による紛争解決と平和の実現を目指す本センターの強い願いを示し
ています。
The logo mark of Afrasian Centre is adopted from an Adinkra symbol of “Siamese crocodiles” in the
ancient kingdom of Asante that existed in what is now the Republic of Ghana, West Africa. It is a
popular symbol of peace and unity, as Siamese crocodiles share a stomach, or the same ultimate goal,
even if they tend to fight with each other.
龍谷大学アフラシア平和開発研究センター 研究シリーズ 9
Participatory Research for Poverty and Conflict Resolution
Afrasian Centre for Peace and Development Studies, Ryukoku University
Research Series 9
Yoshio Kawamura, Saleh Ali, Hisashi Nakamura & Misa Shojiya
発行日/ 2010 年3月 19 日発 行/龍谷大学アフラシア平和開発研究センター http://www.afrasia.ryukoku.ac.jp/
〒 520-2194 滋賀県大津市瀬田大江町横谷1-5 TEL/FAX 077-544-7173印 刷/株式会社 田中プリント
PUBLISHED BY AFRASIAN CENTRE FOR PEACE AND DEVELOPMENT STUDIES,
RYUKOKU UNIVERSITY
1-5 Yokotani, Oe-cho, Seta, Otsu City, Shiga 520-2194 TEL / FAX + (81) 77-544-7173 http://www.afrasia.ryukoku.ac.jp/
PRINTED BY TANAKA PRINT CO., LTD.
ISBN 978 - 4 - 903625 - 96 - 6表紙デザイン: 山中大輔・内田晴子
研究シリーズ 9Research Series 9
Participatory Research for Poverty and Conflict Resolution
龍谷大学アフラシア平和開発研究センターAfrasian Centre for Peace and Development Studies, Ryukoku University
Yoshio Kawamura, Saleh Ali, Hisashi Nakamura & Misa Shojiya
The 6th International Seminar of Afrasian Centre for Peace and Development Studies December 6, 2009
謝辞
本報告書は、文部科学省私学助成学術フロンティア事業「紛争解決と秩序・制度の構築に関する総合研究―
アジア・アフリカ研究の地平から」(平成 17 ~ 21 年度 龍谷大学)による研究助成を受けた。
This publication has been supported financially by the Academic Frontier Centre (AFC) research project
at Ryukoku University “In Search of Societal Mechanisms and Institutions for Conflict Resolution”
initiated and funded by the Ministry of Education, Culture, Sports, Science and Technology (2005-2009).
この会議および報告書において表明された見解は、それぞれの発言者または執筆者によるものであり、
龍谷大学アフラシア平和開発研究センターの立場を反映するものではありません。
The opinions expressed in this publication are those of the author and do not necessarily reflect the
views of the Afrasian Centre for Peace and Development Studies. No part of this publication shall be
reproduced in any form without the permission of the author/s and the Afrasian Centre for Peace
and Development Studies.
PREFACE
The Afrasian Centre for Peace and Development Studies at Ryukoku University is
delighted to hold the 6th international seminar on 6th December 2009 at the Omiya
campus of Ryukoku University in Kyoto. The Afrasian Centre was established at
Ryukoku University in April 2005 as an Academic Frontier Centre project funded by
the Ministry of Education, Culture, Sports, Science and Technology of Japan.
The theme of our 6th international seminar is “Participatory Research for Poverty
and Conflict Resolution”. We focused on the linkages between local community and
academic research for poverty and conflict resolution. The current globalizing
economy requires more direct and strong linkage of research for local community
development based on its characteristics or peculiarity. This linkage is also very
necessary for research and education of universities. Here we would like to call this
research as a participatory research since the research would directly involve in the
reality of community development and thus researchers would also carry out their
responsibility to commit the community. We recognize that this is also a part of
university social responsibility. We believe that this seminar could identify some
necessary and important factors to form this kind of sustainable participatory
research.
Yoshio Kawamura
- 1-
CONTENTS
PREFACE …………………………………………………………………………………………………… 1
Yoshio Kawamura, Ryukoku University
KEYNOTE SPEECH
Relations of Government, Company and Community in Land Confl ict
A case of Confl ict between Lonsum Plantation Company and Local Community at
Bulukumba Regency, Indonesia ……………………………………………………………………… 5
M. Saleh S.Ali, Hasanuddin University
Darmawan Salman, Hasanuddin University
Musdalifah, Makassar Islamic University
Quest of People Based Development in Asia as Seen by an Unorthodox Economist 23
Hisashi Nakamura, Ryukoku University
STUDENT PRESENTATION
Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia?
Evidence from the Cocoa Smallholders ………………………………………………………… 43
Muhammad Arsyad, Ryukoku University
Rahim Darma, Alabama University
Food Security Assessment in Ethiopia, Amhara Region ………………………………… 63
Teshome Temesgen Tilahun, Ryukoku University
A Study of Small and Medium Enterprises in Sri Lanka ………………………………… 77
Busige Nishantha, Ryukoku University
DISCUSSION …………………………………………………………………………………………… 93
KEYNOTE SPEECH
Participatory Research for Poverty and Conflict Resolution
KEYNOTE SPEECH
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M. Saleh S.Ali1, Darmawan Salman2, Musdalifah3
- 5-
Abstract
This paper is focusing on the land conflict or agrarian conflict between local
community and Plantation Company that construct a number of relations between
government, company and local community. The relation between government and
plantation companies is much more of interest-oriented, government and local
community tended to be exploitation oriented, while the relation between company
and local people is much more on protect their own right of the land.
The paper is arguing that this confl ict can be solved by eliminating the negative
side of the relations between actors involved in the confl ict. Therefore, participatory
research approach can be used as a method to solve land conflict that occurs in
community.
Keywords: Land confl ict, Social relations, Participatory research
Relations of Government, Company and Community in Land Confl ictA case of Confl ict between Lonsum Plantation Company and Local Community at Bulukumba Regency, Indonesia
1 Professor, Faculty of Agriculture of Hasanuddin University, Indonesia, and Head of Agricultural Doctoral Program, Graduate School, Hasanuddin University, Indonesia2 Professor, Faculty of Agriculture of Hasanuddin University Indonesia; Senior Researcher on Center For Publik Policy and Development Management Studies, Hasanuddin University3 Senior Lecture of Faculty of Agriculture, Makassar Islamic University, Indonesia
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M. Saleh S.Ali, Darmawan Salman, Musdalifah
Introduction
Land conflict is a common phenomenon in agricultural countries. It is
closely related to the essential use of the land in daily life of the local community.
Interrelationship and interaction between land and human life bring about
meaningful construction building up social behavior toward the existence of the land.
Local society who is majority as peasant, generally earning living through cultivation
of land, perceives land is not only on the basis of its productive function but also as
social status and self actualization. Therefore, it is understandable, if local community
will fi ght or make any possible effort to protect their right on the land.
Farmers will fight to protect their right toward the land if their level of
subsistence is hampered. This is in line with James Scott’s notion that farmers will
extremely fight when there is interference on their subsistence level (Scott, 1976)
Another perspective is that put forward by Popkin (1979) that every action or reaction
related to any threat of daily life performed by farmers can be categorized logic and
rational actions.
In general, many land conflict takes place between big farming companies in
one side and local community in another side. It is usually initiated by the policy of
nationalizing local community lands by government and then the cultivation right
is offered to big farming companies without prior consultation or given adequate
compensation. Through this policy, the local community will automatically be put
aside and away from their land right as well as from their life resource. It is quite
often that local community is marginalized, defeated, and finally serves not more
than as spectator of development show.
Such reality is not permanent. Local community does calm down without any
open action. Most of them perform light actions or close action like secret stealing or
robbery of company’s possessions. Sometimes they perform brutal action aimed at
getting back their robbed land. Such a case becomes eventually result in dangerous
matter because nationalization policy is confronted with inherited local community
land.
The focus of land conflict presented in this paper is that taking place between
PT Lonsum, a plantation company, and local community in Bulukumba regency
under the authority on Sulawesi Selatan province. The confl ict was initiated by the
claim between both Lonsum Plantation Company (LPC) and local community on the
rubber plantation in Bulukumba. The rubber plantation itself has very long history,
starting from the colonialism up to present era even after the reformation period. The
confl ict was fi rstly caused by the renewal of regulation of offering of cultivation right
- 7-
Relations of Government, Company and Community in Land Confl ict
to LPC on the land areas cultivated inherently from generation to generation by local
community in that area.
The issue presented in this paper is identical with other land conflicts, taking
place between companies and local community. The difference will be in the
uniqueness of phenomena because it has a very long history without permanent
solution and is one of the biggest confl icts in South Sulawesi ever happened. Another
unique characteristics of the above conflict was the patronage-client relationship
among Makassarese-Buginese communities (Pelras, 2005; Putra, 1988) showing that
fi ght of peasants to landlord is of very rare event. Solidarity sense constructed tends
to be more client – patronage relationships than inter client or inter patronage relation.
This phenomenon seems to be identical with the land conflict taking place during
the Marxian era. That is why, the land confl ict between LPC and local community in
Bulukumba became so unique and interested at least viewed from the perception of
Sulawesi Selatan society.
Agrarian Confl ict in Indonesia
The intensity of agrarian conflict in Indonesia can be seriously categorized in
large scale. Data found during the era of 1970-s up to 2001-s by Komite Pembaruan
Agraria (KPA) or Agrarian Reform Committee showed that during that era, there
were 1753 of land confl icts ever happened. Among them, 334 cases were big plantation
companies as shown in (Table 1). It was convinced that the recorded land conflicts
were merely the very small parts of the very huge unrecorded ones.
- 8-
M. Saleh S.Ali, Darmawan Salman, Musdalifah
Table 1: Distribution of Agrarian Confl icts in Indonesia
from 1970-s to 2001-sProvince Number of cases
N Aceh DNorth SumatraWest SumatraRiauJambiBengkuluSouth SumatraLampungWest JavaJakartaCentral JavaYogyakartaEast JavaEast KalimantanCentral KalimantanSouth KalimantanWest KalimantanSouth CelebesNorth CelebesCentral CelebesSoutheast CelebesBaliEast Nusa TenggaraWest Nusa TenggaraMalukuPapua
47121323371315754484175991916933627264815589134427628
Total amount 1753
Source: Agrarian Confl ict Data Base – KPA, December 31, 2001
The above data indicated that the cases of agrarian conflicts were found more
frequently in more populated province like in West Java, East Java, Central Java,
The Capital City of Jakarta, South Sumatra, North Sumatra, and some provinces in
Celebes.
Some of the agrarian confl icts mentioned earlier are of latent or hidden ones, but
the others became open issues resulting in extreme actions and bring about the fall of
victims mainly from those claiming that those lands were their possessions.
Indonesia Agrarian Reform Committee has classifi ed the agrarian confl icts into
15 categories; 1. confl icts because of dam building; 2. factory building and industrial
areas; 3. developing of product forest areas; 4. developing of conservation and
protected forest areas; 5. the use of water areas; 6. developing of large plantation;
7. developing of large fresh water fishery; 8. activities and the developing of large
mining areas; 9. developing of housing and new city areas; 10. developing of military
facilities; 11. developing of governmental facilities; 12. developing of public as well as
- 9-
Relations of Government, Company and Community in Land Confl ict
city facilities; 13. developing of transmigration areas; 14. developing of tourism areas
including golf course; 15. other categories beyond the 14 items above (Lounella and
Zakaria, 2002).
Confl ict Phenomenon in Makassar –Buginese Culture
Makassar-Buginese has a unique construction from its social culture if it
is related to the phenomenon of class conflict. If we perceive the class as the
contradiction between the high-class as the landlord and the proletarian-class which
is known as the peasant, thus the history of relationship between them in South
Sulawesi does not related to the class but the patron and client relationships. In
Makassar-Buginese socio-culture, the landlord is the King while the peasants are the
slave who is working for the landlord, and half of them live as the common society.
The patron-client relationships in South Sulawesi had constructed from
exploitation by structure process while hegemony by its culture process. Hence, if the
weak class is on the top of exploitation, there will be no path for them to deny from
the exploiter except to get protection from them. The protection from exploiter will
create a relationship of dependency (Minawang relationship). The strong class called
as the patron or to-nipinawang and the weak class get the position as the followers
(to-minawang) or client.
According to the history of Makassar-Buginess social culture, the relationship between
the patron and the client never get involved into a class-conflict. The social solidarity
that formed is a vertical solidarity (patron’s protection to the weak class). Therefore, the
peasant’s struggle versus the landlord almost never had represented indeed. But in the
other hand, the confl ict is only happened between the patrons and the peasants.
The value of Siri as a prime value for Makassar-Bugenese, it does not construct
the confl ict of peasant and the landlord signifi cantly. The value of Siri’ and Pacce are
not defi nitely manifesting on the side of horizontal path neither between the peasants
nor the landlords/ patron. In reality, Siri’ of the landlord is also felt by the peasant/
the worker itself. Pacce of the peasant is felt by the landlord as well.
Chronology of Confl icts
The land-conflict of Plantation Company (PT Lonsum, abbreviated as LPC)
between the local community at Bulukumba regency started when the company
expropriated the land with 350 hectares violently which was cultivated by the rural
- 10-
M. Saleh S.Ali, Darmawan Salman, Musdalifah
society of Tambangan village (Known as Bontobiraeng village) at the end of 1981. The
company did that because they claimed those land were included in their Right of
Tenure. (Hak Guna Usaha). This action was rolled by the company’s offi cers and was
supported by the local government authority.
Due to the expropriation, the local community was making a struggle. They
prosecuted LPC into the Trial of Bulukumba’s Government. By that demand the trial
approved the claimer of local community for 200 hectares, and LPC was ordered to
return the amount of land onto the claimer.
Base on the decisions LPC make appeal in the High Court (Pengadilan Tinggi) at
Ujung Pandang city (now is called Makassar city) and its claimer was approved and
rejected the community’s prosecution. After that, the prosecutor demanded this case
into the Supreme Court (Mahkamah Agung), which was terminating the claim of LPC,
then encourage the verdict of Bulukumba’s Government Trial that was proclaimed in
1991. By this decision, the LPC demanded the application of re-reviewing (Peninjauan
Kembali) the case to the Supreme Court, but it was refused due to unreasonable
claim.
On the verdict of Supreme Court, the execution was applied by taking the frontiers.
Nevertheless, the part of LPC stood and claimed that the land which was executed
became 62,060 hectares. They then demanded an objection to the Trial hence the
execution was repeated. But re-execution was failed due to a struggle of the local society.
The climax of this confl ict was running on July 21st 2003 at 8 a.m. when the local
community made huge groups to dominate the area of rubber crops plantation of
LPC which is located on Bontomangiring, Bulukumba. This situation was commented
by a woman from local community, Badariah. She said: “I do not know on that day,
or how many was the people on the location of conflict. What I know is there were
many people, thousands of peasants who came from Bonto Mangiring, Bonto Biraeng,
Kajang Tibona and the other area of plantation and then they cut the rubber trees
and dominated the PT. PP Lonsum area.” (Interviewed on June 6th, 2007)
The Protester were auctioning under control until several of them cut the trees
on that area. The others followed it, thus the riot was getting under uncontrollable.
LPC and Police were hard to calm down that situation and make the police do several
shoots to calm down that disturbance as one of policeman said: “The protesters
burned the document from Kukumba, Division of PT. Lonsum, and they act anarchist
even against us until we could not handle them. What we did is we had to do several
shoots to warn them,” (Interviewed by A. Baso Muragawali on May 10th, 2007)
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Relations of Government, Company and Community in Land Confl ict
Relations between Government and Plantation Company and Local Community
In case of agrarian confl icts especially those are involving plantation companies,
there are three main factors involved, namely authority (state), plantation companies,
and local community including nongovernmental organization. The relationship
among the three main actors can be illustrated as follows:
Government
Intrest Domination
Right
Company Local Communtiy
NGO
Figure 1: Venn Diagram of Relation Between Government, Plantation Company, and Local Community
1. Relation Between Government and Company
The Government-Company relationship is merely based on the interest. The
government has the interest in developing the region by exploiting the natural
resources and also presenting the human resources which is functioned by the
company. The company also has the interest to exploiting the resources which has
provided in order to get any benefi ts.
This relationship starts when the government begins to put the right into the
plantation company to dominate and manage the land. In the area of Netherlands’s
colonization called as Erfacht right yet after the law about Agrarian was applied, the
company has duration about 30 year from the Right of Tenure (HGU).
The government - LPC relationship also gives the protection towards the
domination area when the company gets into conflict with society. The protection
contains the social construction from government by using the public functionary in
order to decrease the society’s struggle so that the confl ict will not appear manifestly
(Intern confl ict) as a public functionary said: “Yet because of the strength of the elite
of society and the local government the situation seemed to be hidden by external
- 12-
M. Saleh S.Ali, Darmawan Salman, Musdalifah
parts while the path process towards the confl ict solution was still going on”. However,
as long as the time goes and the development of NGO, the hidden confl ict fi nally can
be identifi ed by the parties who has either righteous or unrighteous intention. Hence,
the confl ict which began in this high culture region became as the public consumption.
Government also gave protection to the company by positioning the troops or
policeman in order to secure the area which is claimed as the company’s own. The
company’s officers were merely intimidating the society and demonstrated their
royalty to the company as one of the citizen said: “The policemen who work for the
company to secure their right of Tenure defi nitely show that they are tend to stand
on the company of PT. Lonsum which already took the peasant’s right. Lonsum has
taken all of our land by sending the policemen and so many troops. ”
When the protection or tendency becomes no longer popular, the government
expands the relation to protect the company by playing the role as mediator to fi nd
the way to seek solutions of the confl icts. Thus everything is running well and secured
without the claim-conflict of land rights as an informant said that: “There were so
many ways that government did in order to keeping the peace between Bulukumba
society and PT.Lonsum. We had already provided the time and spaces to discuss the
solution way of this problem. Because we realized, as the government we should be as
a proper mediator to fi gure out the resolution of this confl ict. Although it has not done
yet, but we will not stop to make the morals’ approach or rational approach for the
both sides in order to create and keep the words of peace.” (Interviewed at La Kama
Wijaya on July 9th, 2007)
The company should fulfi ll its obligations which are placed by the government by
paying the taxes or the current donation that already given by government and the
local council. Besides that, the company has already built the social infrastructure
and others so that this area will be more developed. The existence of this plantation
company is tending to give a bit affect. By this case a citizen said: “When the company
plantation has not already existed, the situation in this area was very poor. There
were no electricity, waters, and schools; even the access of information was very
diffi cult due to the lack of transportation and communication facilities. But after PT.
Lonsum came here, everything has been developing around our area. Day by day we
are enjoying our development which could be seen until today.” (Interviewed on June
2nd, 2007)
The other relationship of company-government that has been changing on its
political side is the election of head village or the head regency with its direct election
by the public. The amount of employees and labors owned by PLC is quite high, and
so it could be used as a property for the company in making a bargain between those
- 13-
Relations of Government, Company and Community in Land Confl ict
candidates. The case is always easy to apply according to the tradition of its society
that people are always loyal to their lords.
2. Relation between Government and Community
The Government-Society relationship developed is to take over the land rights,
oppression, mediation for peace, and plasma development until the distrust of the
society into the government.
The Expropriation of tenure right is applied by the government recognizing that
the land which does not contain the right of formal law is the state’s land. Due to the
approach, the state has a right of exploiting the land to gain more benefi ts. Almost all
of the land cultivated by the local community does not have a legal admission such as
certifi cate. Hence, the land could be claimed easily by government as the land of state,
and then it will be taken by the company with its tenure right, which is creating
society struggles.
People in the society who are involved in the struggle believe that the existence
of this plantation company does not give any advantage to them. Besides that they
are still trying to get back their own land. It is similar with the opinion from a citizen:
“We know that Lonsum has been making a change for our live around this area,
but we also realized that what we get is more less then everything that has taken
from us due to its existence. They merely see the one side from the economic part.”
(Interviewed by Mulyadi, the Leader PPMA Bulukumba on June 28th, 2007)
The impacts of their struggle are the pressure and intimidation which make the
family living become uncomfortable as one of the citizens’ opinions: “We have been
living in this village since we were born. We worked as the peasant and we are living
in simple way but we are enjoyed it because we are gathering together in a house and
in one village. But since the existence of that non-government company then claimed
our land as their rights, we started to live in the atmosphere of oppression. We are
finally rebel the situation but the fact is we became apart. Some of our family had
gone because they cannot stand in this situation. But I am still staying here because I
believe that I can struggle to maintain my rights.” (Interviewed on April 27th, 2007)
Due to the pressure that has been through the society, the failure to gain their
rights will be the a distrust of people towards the government. As a citizen said: “We
do not trust the government as well as the police, the Bupati (head of regency) and
the local senator (DPRD); we are disappointed because we cannot fi nd any resolution
for this confl ict. We cannot understand where their sides are. At least they have not
been doing anything for our society.” (Interviewed on April 30th, 2007)
Though in, the society there have been struggles, the people can maintain their
- 14-
M. Saleh S.Ali, Darmawan Salman, Musdalifah
rights. If they are not rebelling for their right now, it does not mean that they are
defeated. They are just silent for a while as a citizen said: “We are keeping silent
right now, but it does not defi ne that we are quit. We cannot always do any struggle or
rebellion because we have to get some food so we have to still do any job.”
Indeed, the society where there are struggles is always open to be found the fair
and honorable resolutions. They wanted to gain them though the government offi cers
are already untrustworthy because they always tend to stand on the company’s side
so that mediation will not be working properly. The society wanted the existence of
independent institution, which could give some solution for this case.
3. Relation between Company and Local Community
The relation between company and local community related to the right legalization.
The company’s rights require the legalization by the state because the society wanted to
gain the legalization rights by the company and government on the land they had. The
society understands that their land is not that of LPC.
The company can claim its rights on its own land; managing its land, planting
the rubbers’ crops by ignoring the society’s protests. The company argues that the
case is not necessary because it is already testifi ed on the right of tenure. But on the
other hand, the society rejects that the right of the company’s area has become a part
of their own land. The citizen is hesitating about that right as a following opinion: “A
legal HGU of PT. Lonsum should be proclaimed to people. Thus the current institution
should be testifi ed by citizen by the measure of the land frontiers.” (Interviewed on
April 5th, 2007)
The claim of the above citizen could be identified that there is an accusation
that LPC has occupied the land which is not based on its borders hor on that of HGU
(Right of Tenure). The press broadcasted by Solidaritas Nasional Untuk Bulukumba
(SNUB) that the 10,000 hectare land of Kajang’s community has been occupied by
LPC.
The struggle of the society to gain their rights was caused by the company
which had got the provocation by non-government organizations. One of the
company’s offi cers said: “They cut down trees ruined houses, burned, the properties
of PT. Lonsum and its employees’ due to the provocation of some non-government
organization.” (Interviewed on May 11th, 2007)
The presumption does not have any evidences because the non-government
organization always proclaimed the right of society and managed the people to
protest when the conflict started. One of the citizens was arrested due to the case
of vandalism action on July 21st, 2003. He said: “When the confl ict on July 21st, 2003
- 15-
Relations of Government, Company and Community in Land Confl ict
happened, I was invited by one of the members of a non-government organization to
maintain the society’s right. I was told to bring some lunch. I was surprised because
the thousands of people were cutting down the trees of Lonsum’s. Then I directly
followed them because I did not know that I would face the policeman. I just knew
that I followed it to keep the right of society. I was arrested on the day and they asked
my testimony. I was sent to jail because they placed me as a guilty.” (Interviewed, on
May 19th, 2007)
Nevertheless, that presumption was refused by the Chief Council of LSM-DRB
which has been actively advocating the rights of society in the case of expropriation of
their lands LPC. He said: “We are not the main cause of the confl ict between Lonsum
and Bulukumba society. We joined the society in order to fi gure out a proper, fair and
relevant conflict resolution. We proposed the company to make a peace agreement
which will not harm the one side of them. Yet they had never made any effort to give
us a chance to do that. ” (Interviewed on July 8th, 2007)
The violence did not seem a proper action to gain the rights but a legal crime.
Transferring the issue to a weapon depressed the struggle of society. The government
and company are working together in arresting and jailing the citizen who was
involved in the action of violent protest. On the blood-confl ict, the policeman arrested
hundreds of citizens.
Confl ict Resolution
Optimism about a peaceful settlement between the government and local society
exists, however, it is still open. Those parties still recognize the necessity of peace by
the reason of the duration. If they defer the confl ict, it will be inconvenient for both
sides. The government will always feel threatened while the society will get many
pressures and intimidation, aperson added: “Verily, we expect that there will be any
institution which could resolve this serious case and so we can fi nd the way for peace.
We are a small group and not clever but we knew that this problem will be resolved. We
were already fed up with this situation; we want peace and fairness.” (Interviewed at
Salassa on June 28th, 2007)
Theoretically, there is no specifi c approach which can be used to resolve the case
of land-conflict. Bennett and Neiland said that resolution for conflict is generally
specific. There are so many methods for resolution but it does not match to every
single case. In summary we have to fi nd the proper approach for the current confl ict
case.
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M. Saleh S.Ali, Darmawan Salman, Musdalifah
Conflicts can be solved by two approaches. Firstly by the trial (litigation) and
by alternative approach which is known as alternative dispute resolution (ADR). By
the litigation process the confl ict will be brought to the formal law and the truth and
falsehood could be found. On the other hand, by the ADR approach, the case output
will be fl exible and acceptable by all the parties and it will be useful for the long term
orientation. However this approach is not recognized as the winner of the case. The
popular types of ADR are negotiation, mediation, facilitation, and arbitration.
Those approaches have already been applied on the land confl ict in Bulukumba.
By the litigation process, it reached a verdict that the society consented to win the
case for their claim and whomsoever from them already being executed as well. The
point is that the execution does not run well and carefully, and so the plantation
company does not accept the existence of additional land of society executed for them.
Moreover’ the company intended to expropriate back the executed land but it was
prevented by society.
The ADR approach process has attempted, nevertheless, it did not show any
resolution because both parties did not stand on the equal position. Plantation
Company is always taking the benefi t given by the government while the society is
placed as a guilty and a crime position. This approach would be useful if both of them
realize what their rights are and respect each other.
At any rate, there are four issues that we should handle in order to resolve the
confl ict based on the study on the confl ict area:● Firstly, making an audit of society rights in the confl ict area accurately. It can
be initiated and involved by all of stakeholders including any non-government
society. Thus, the result should be verifi ed by public-hearing. ● Secondly, re-evaluating and revising the entire Tenure Rights (HGU) of
companies. It should be revised based on auditing-result. ● Thirdly, proclaiming the dispute object as Status Quo cannot activate the
functions on land until the permanent verdict has been claimed. Hence, the
government should control this program harshly.● Fourthly, providing social infrastructure will be accepted the land’s rights of
society.
Searching a Methodology for Confl ict Resolution
As noted by Bennett and Neiland, there is no specific approach that can be
used to resolve a conflict. There are so many methods of conflict resolution but it
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Relations of Government, Company and Community in Land Confl ict
doesn’t match to every single case. One method that can be used to solve a confl ict is
Participatory Research.
Participatory research can be defi ned ”as systematic inquiry, with collaboration
of those affected by the issue being studied, for purpose of education and taking
action or affecting change.” (Green et al., 2003) While Maguire defi nes participatory
research as”a process of collective, community-based investigation, education and
action.” Hall perceives participatory research as integrated approach involving
the participation of community members to investigate social reality, builting local
capacity for the purpose of increasing community awareness to solve their problems.
From these defi nitions we can see the objectives and characteristics of PR as; 1. social
investigation – to develop the critical consciousness of people; 2. education process
– to build people’s capacity and awareness; and 3. action oriented – to change or
eliminate problems.
Two terms related to PR need to be distinguished, namely PR-for- Action and PR-
through-action (Huizer, 1997).
PR-for-Action mostly consists of the regular forms of survey research through
questionnaires or interviews with a view of quantifying data on the situation of
community. It is self-evident that before starting such investigation in a concreate
situation, statistical and other overall material should be collected and studied. Other
relevant data at community level such as population, land tenure, economic activities,
social activities, on going or past project activities as well as historical data should be
also collected.
Based on the data researchers provide the feedback to the communiy at group
meetings (public discussion) to verify the data. Through these public discussions it
can be found problems faced by the community and possible alternatives actions for
solution.
PR-through-Action type takes as a point of departure that most activities
in the field can be seen as experiments proving (disproving) that people can use
certain group strategies to change their situation for better and how to do this most
effectively through group formation and common action on their own behalf. In its
process needs a careful recording of the process of relevant undertaken activities.
PR–for-Action and PR-through-Action are generally complement each other as
components of PR. They can be complemented at various levels. These are mostly
undertaken at the village level or community level and have in such situations proved
to be useful approach to enhance the empowerment of disadvantaged people.
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M. Saleh S.Ali, Darmawan Salman, Musdalifah
Process of PR
PR is a research approach, philosophy, or process. Its core is the partnership
between researchers and the community or those being researched (Maguire,
1987). It does not follow a restricted and rigid research methodology as we found in
conventional approach. The major difference between the conventional approach and
the PR approach to research lie in the questions of who defi nes the research problem,
and who generates, analyzes, represent, own and acts on the information resulting
from the research project (NAPCRG, 1998).
There is no rigid steps or procedures that one has to follow in PR. But mostly
include the following process (NAPCRG, 1998):
1. Establishing partnership. All stakeholders involved in the research should be
treated equally as partner. Their knowledge and experience are considered
complementary. No one in the process will dominate other stakeholders.
2. Education and Capacity Building. PR is an impetus for change by relating
knowledge to action through a dialogic method. Through this dialog, there will
be an educational process where people can learn from each other and think
critically about their political, economic and social surroundings.
3. Empowerment. Through educational process and exchange knowledge, people
will aware their problems and know what resources that can be used to solve
them and how to do it.
What PR Can Do to Solve a Confl ict?
PR can be used to solve a confl ict. In the case of confl ict between LPC and local
community in Bulukumba, the PR at least can do the following .
1. PR can dig out the problems and the cause of confl ict and their consequences
that will be faced if the conflict unsolved. Understanding problem is very
initial things need to be known before solving a confl ict . In Bulukumba case,
it is clear that the root of confl ict did not understand by all parties involved.
Government and Plantation Company perceive the conflict as criminal act,
while the local people perceive as struggle for right.
2. PR will make people respect and acknowledge because it is an educational
process where people are treat equally. No domination and pressure in its
process. In Bulukumba case, it is clear that local people who are under
pressure and domination from local authority and plantation company. Many
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Relations of Government, Company and Community in Land Confl ict
local people had been put in jail, moreover, this situation make local people did
not respect the local authority and the company.
3. PR can identify power structure in community and who hold the power. It is
clear that the power structure in Bulukumba society is beside local formal
authority, there is non formal leaders that usually determine the decision in
community.
4. PR can identify aspirations, motivation, and, needs of the people who involve
in confl ict. The aspirations and needs of local people in Bulukumba case are
not considered by local authority and company. The land of local people was
taken without good compensation.
5. PR can list resources for solving confl ict arising from the research process.
6. PR can test the acceptability of any decisions have been made.
Conclusion
The Land conflict between Lonsum Plantation Company and local community
constructed the relations among actors involved in the confl ict. There are three main
actors, that are government, plantation company, and local community as well as
NGO.
The relations between government and Plantation Company tended to be a
protection of relation which is based on interest where the government provided
protection to the company either by policy or by force from government apparatus
especially from police. On the other side, Plantation Company will provide economic
benefi ts to local government.
The relations between government and local community tended to be domination
and coercive in nature where the government based on their authority push the local
community to accept any policy or decision regarding the existence of the plantation
company, while the local community perceived such actions are unfair and have to be
protested.
Relation Between Company and Local Community related to right legalization
where the plantation company protected the confl icted land based on the land right
that they got from the government, while the local community based their right on
local custom. The local community understands that their land is not the part of the
Land of Plantation Company.
Until now this land conflict is not solved yet. Latent conflict is still there and
it will happen again any time if both parties do not respect each other. Therefore,
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M. Saleh S.Ali, Darmawan Salman, Musdalifah
in order to solve the conflict, there is a need to do re-inventory the rights of
local community that have to be accommodated by any formal decision made by
government. The object of conflict has to be stated status quo until a permanent
solution is achieved.
Participatory Research as method can be used to solve conflicts such as in
Bulukumba because the method contains social investigation, educational process,
and action oriented.
Refferences:
Bachriadi, D and Lucas, A. 2001. Merampas Tanah Rakyat: Kasus Tapos dan Cimacan
(Taking People Land: Case of Tapos and Cimacan), Jakarta: Kepustakaan
Populer Gramedia (KPG).
Bawden, R. 1995. On the Systems Dimension in FSR. Journal for Farming System
Research-Extension. Vol. 5, No.2,
Bennett, E. and Neiland, A. 2000. “Review of Study Approach to Confl ict.” Centre for
the Economics and Management of Aquatic Resources (CEMARE).
Bidwell, D. 2009. Is Community-Based Participatory Research Post Normal Science?
Science, Technology & Human Values. Vol. 34, No. 6.
Coser, L. 1966. The Functions of Social Confl ict, New York: The Free Press.
Green, L.M. et al. 2003. Guidelines for Participatory Research in Health Promotion,
in MInkler, Meredith and Nina Wallerstein (eds), Community–Based
Participatory Research for Health. San Francisco, CA: Jossey-Bass Inc.
Hall, B. 1993. Introduction, in Peter Park, Mary Brydon-Miller, Budd Hall, and Ted
Jackson (eds.), Voice of Change: Participatory Research in the United States
and Canada. Westport: Bergin & Garvey.
Huizer, G. 1997. Participatory Action Research as Methodology of Rural Development.
http://www.fao.org.
Jos, H. 2001. Perlawanan Petani: Kasus Tanah Jenggawah, Peasant Fight: Case of
Jenggawah Land Bogor: Pustaka Latin.
Kartodirdjo, S. and Suryo, Dj. 1991. Sejarah Perkebunan di Indonesia: Kajian Sosial
Ekonomi (History of Plantation in Indonesia: A Study of Socio-Economics).
Yogyakarta: Penerbit Aditya Media
Lounela, A. and Zakaria, R. (eds). 2002. Berebut Tanah; Beberapa Kajian
Berperspektif Kampus dan Kampung (Scrambling Land: Some Studies From
Campus and Village Perspectives). Yogyakarta: Insist.
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Relations of Government, Company and Community in Land Confl ict
Maguire P. 1987. Doing Participatory Research: A Feminist Approach. Amherst: The
Center for International Education, School of Education.
NAPCRG (1998). ”Responsible Research with Communities: Particpatory Research in
Primary Care.” Executive Summary. NAPCRG Annual Membership Meeting.
Montreal.
Ngadisah. 2003. Konflik pembangunan dan Gerakan Sosial Politik (Development
Confl ict and Social Movement). Yogyakarta: Penerbit Pustaka Raja.
Pelras, C. 2007. Manusia Bugis (Buginese People). Jakarta: Gramedia.
Popkin, S. 1979. The Rational Peasant: The Political Economy of Rural Society in
Vietnam. California: California University Press.
Putra, A and Shri, H. 1988. Minawang: Ikatan Patron Clientt di Sulawesi Selatan
Akhir Abad 19 (Minawang: Patron Client Tied Up in South Sulawesi at End
of 19 Century). Yogyakarta: UGM Press.
Scott, J. C. 1976. The Moral Economy of the Peasant: Rebelion and Subsistence in
Southeast Asia. New Heaven: Yale University Press.
Wiradi, G. 2000. Reforma Agraria: Perjalanan yang Belum Berakhir (Agrarian
Reform: A Journey Not Finish) Yogyakarta: Insist Press.
―――――. 2004. Masalah Agraria: Masalah Penghidupan dan Kedaulatan Bangsa
(Agrarian Problems: Problem of Livelihood and Unity of Nation). Makalah
Stadium General Jurusan Sosek Tanggal 17 Mei 2004. Fakultas Pertanian
IPB, Bogor.
Hisashi Nakamura*
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1. Search of Participatory Social Sciences
Social science in general and economic science in particular are fractured in
contemporary Japan and to some extent in the modern world, too. They are divided
between the demands of science and of pragmatism although it is often emphasized
that economics is much more scientific than other branches of learning concerned
with man and society.
The more one specializes the more one loses common sense. In the case of
economics this is particularly noticeable. It also resembles the position of physics
in modern natural sciences. The mechanical model of economic theory occupies an
excessively important place. The space for non-specialists to talk about economics
is becoming increasingly restricted. The rigorous consolidation of theory makes it
diffi cult for a non-specialist to understand or for the people whose lives it affects to
intervene.
However, even if one acquires the understanding of economic theory, it is not
proof that one correctly understands and analyses actual economic activities. In
reality even with the fi ne tools to analyze the contemporary economy it is necessary
to lay down very strict conditions so that in effect one is further separated from actual
economic processes. Everybody knows no single economist can demonstrate the way
to explain and settle the global financial crisis in 2009. What was actually done is
the very simple exercise to put tax payer’s money into the banking sector for writing
off some of bad loans. If that is so, is there not a methodology that can reflect the
reality of the people who are the subject of economics? Such a method should allow
Quest of People Based Development in Asia as Seen by an Unorthodox Economist
* Research Fellow, Research Centre for Interdisciplinary Studies in Religion, Science and Humanities, Ryukoku University
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Hisashi Nakamura
the citizens of the area to understand their situation. The dream of us is to hand over
economics from specialists to the layman so that even without specialized academic
knowledge they need not feel indebted to scholars and can work to make their own
world.
Pragmatism at the other end of the spectrum offers an endless range of issues
to deal with the accumulated deficit of public finance, increasing unemployment,
economic disparities between the rich and the poor, industrial restructuring,
investments in energy resources, industrial relocation, environmental problems,
financial support for social welfare, proper tax system, privatization of public
enterprises, etc. There are no economists who would argue that these issues are not
linked to economics as a science. Economists actually feel honored to be included by
the government on economic councils and are happy to participate in formulating
policy proposals for political parties. However, it is important to remember that there
is a difference between the enthusiasm of the economists in suggesting proposals
to solve actual economic problems and the effectiveness of economics as a science
in resolving these problems. It is not just that economics is divided but that the
two poles of science and pragmatism are in a state of flux. The two extremes exist
simultaneously in the same person and in the same economic departments and
research institutes.
Fresh students of economics always find it difficult to understand that there
are no boundaries between the two poles of science and pragmatism in economics.
In most universities both the economic theories even though they reject mutual
understanding exist together (modern economics of market mechanism and planned
economic system) and work to get the students to choose between them. There are,
however, a third group of economic theories: the institutional school, the economics
of ecology, economic anthropology and social economics, non-market economists, the
self-management group which lie in the middle ground much as the Third World lies
between the East-West confrontation and peaceful co-existence.
Japanese perception of economic science had the remarkably peculiar feature
in the process of modernization of her society due to the historical background. In
the pre-modern Edo period, Japanese society was stratified into the hierarchical
order of four major classes, namely samurai at the top, followed by land-holding
agriculturists, then craftsmen and artisans and lastly merchants at the bottom. This
value system was the refl ection of the closed-door policy strictly implemented by the
Edo Government for more than 250 years before the modernization stage. The ruling
class of Meiji Period, chiefly consisted of ex-samurais and landlords, inherited the
sentiment against commercial interest before the closed policy in 16th century. They
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Quest of People Based Development in Asia as Seen by an Unorthodox Economist
found that the economic theory of Marx had strong resentment against commercial
interest and happy to accept it as main stream of economic thought taught in
the major imperial universities for the education of elitist leaders in the next
generations1.
After market and plan, the third system is an economic system where
resources are distributed through cooperation. In such an economic system the
fundamental axis is cooperative mutual inter-dependence through the development
of communication systems. This is linked to the idea of fraternity or friendship.
The core of the argument should rest in economics related to life system or ecology.
After observing in minute details the effect of neo-classical synthesis which was
formed along with the success of the Keynsian spending policies and the centralized
planning experiment after the Russian revolution, Prof. Tamanoi Yoshiro and his
group of economists started to argue in Japan that it would not be possible any longer
to rely on either the market or the planned economy2. It was this way of thinking
that led to a third system of economic principles. The Society for Entropy Studies
in Japan formed by Tamanoi and others in 1983 have been active in this direction.
Unlike either the economics of the market or the plan, the theory of an economics
of consultation, cooperation and communication has just begun. There are so many
arguments that have been advanced that it is as yet impossible to build a systematic
theory. Also even when systematized it may take a very different form from price
theory and plan theory.
The present exercise is a part of attempt within this third group to present a
people based economic theory. To build a people based economic theory it is probably
easier to do this in Japanese universities that have a stronger composite culture
than in Western universities. However, it must also be said that teachers as well as
students must go together outside the campus and learn from economic activities of
common people. People who want to find a new way through their fieldwork would
like to participate in the activities of the real world.
An important aspect of economics based on people is, therefore, the fieldwork
which is an area where it is possible to realize a two way process of exchange between
the teacher and the taught. To get to the heart of the problem more than learning
from books the method we must use is to go out and make our own investigations
and make our own observations and learn from people who are engaged in economic
activities. Perhaps there may be times when we have to question our own life style.
1 This is how the complete works of Marx and Lenin have been translated into many Japanese editions and widely read even after the collapse of socialist planed economic system.2 Yoshihiro Tamanori, The Selected Works of Tmanoi Yoshiro, Tokyo: Gakuyoshobo, 1990.
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Hisashi Nakamura
The social sciences that I learned through the fieldwork was more from the living
words inscribed in the social relations in Asian society rather than from the words in
published books. That I learnt to understand something of the meaning of economic
activity I owe to the workers and the peasants in South Asia as well as in Japan3.
The necessity of objective studies is rooted in separation of subjects and objects,
which is proper in modern science. I did not have my subjectivity when I was born.
What I regard as my subjectivity all come from other places besides myself. Subject
consists of what you heard from other people and knowledge you learned in various
forms from people surrounding you. Then what is the object? Is there any objectivity
excluding you and me? The objectivity is summation of subjects of each of us and the
way of summation affects the nature of the object.
That is, so called objectivity is a set of subjects added in certain way. So called
subject was not born in him/herself, but it was brought from outside. Putting it in
another way, the subject is an outcome of treating objective knowledge properly. We
can say that the treated object is the subject and that the summation of the subjects
is the object. Thinking in this way, we need methodological participation combining
method of object and method of subject, or so called science of those who are engaged.
Mahavira, who was the founder of Janism, had sufferings about it, then finally
reached “anekantavada”. In Sanskrit, “anekantavada” means the position that the
truth is not only one. He reached the conclusion that for human beings, the truth is
not a single just as Whitehead came to finally conclude his philosophical research
while emphasizing that exactness is a fake.
2. Studies on Cross-Civic Relations
Modern social sciences have been implicitly founded upon a pair of postulates.
One is the framework of the modern nation state. Social sciences as established
against the background of modern Western history are inseparable from the
formation of the nation state. Specifi c fi elds in social sciences have accordingly been
devoted to the analysis of social problems arising within modern nation states, and
to the elucidation of international relations between modern states. Human society
in the 21st century, however, attempts to overcome the modern nation state and
the limits of her institutions. While regionalism in its broad sense as in the case of
the European Union is integrating nation states into a multi-national federation
3 Hisashi Nakamura and Hiroyuki Hirooka (eds.), Huirudo Waaku no Shingihou (New Method of Field Works ), Tokyo: Nihonhyouron, 2000.
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Quest of People Based Development in Asia as Seen by an Unorthodox Economist
and pointing towards a new kind of unity, the narrow sense of regionalism as in the
case of Yugoslavia is heading towards ethnic independence, local autonomy and the
dissolution of the modern state. The existing academic disciplines like economics,
sociology, jurisprudence, political science and so forth were formed on the basis of the
implicit ideology of the nation state and thus cannot adequately take as their object of
study the direct interchange of people belonging to different cultures.
The second postulate is the methodology established on the model of classical
Newtonian physics. This research method excludes interaction between the observer
and the observed, through which modern social science boasted that it acquired
the means to objective research which would be free from the subjective view of
social value. In order to overcome the shortcomings of objective research without
participation, an endless process of specialization proceeded to create minute branches
of an academic discipline. But, in fact, people need to participate in the solution of
social problems and to take a role in the reorientation of the social sciences. People
who have been the object of study, will make themselves knowledgeable by research
in their own society, will dismantle the objectivity of the specialized academic system,
and will reconstruct research designed for, rather than against, the people. Going
beyond the classical framework of social science since the 19th century, participatory
research will grow rapidly to answer the demand of a new era while transcending the
subject/object dichotomy.
Participatory studies for inter-community affairs (cross-civic relations) are a
social science that deals with problems spreading beyond the boundaries of nation
states such as ethnic problems (both minority groups within a nation state and ethnic
groups beyond national boundaries), modes of development (for both depopulated and
overpopulated areas), environmental problems (with regard to both waste disposal and
resources management), regionalism (tendencies for federal formation and community
orientation), economic organizations (new forms of co-operative enterprises), peace
movement (disarmament and peace keeping systems), human rights (freedom from
discrimination based on birth place, nationality etc.) and gender issues (reflections
on the social relations of men and women ). A new research institute for people based
studies should be established so as to organize research in the above mentioned inter-
community issues. Through this venture, we must build a study of people to people
relations, which is a new fi eld of study demanded by our new era.
The market economic system has embodied a sense of liberty in modern civil
society since the industrial revolution in the 19th century. The planned economic
system has advocated equality among the working classes since the socialist
revolution of Russia and China in the 20th century. A new people based economy will
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Hisashi Nakamura
bring out a sense of fraternity in the human community through local self-reliance in
the coming century. Local economic self-reliance is based on three major factors, that
is to say, the sustainability of the cycle/recycle process, the development of diversity
and the creation of interrelationships. The dominance and subordination by the
political powers with military supremacy prevented common people from promoting
the establishment of the third economic system, which would supplement some
important shortcomings of the existing market and planned economic systems. The
following passages highlight important points of theoretical argument presented in
the Japanese book of mine 4.
The economic process of human life consists fundamentally of the circularity,
diversity and relationship. The more cyclical, diversified and inter-related human
life is, the more sustainable development will be in the coming generations. However,
the existing indicators of economic development do not differentiate between circular
and throughput, diversity and uniformity, and social relations and commoditization.
The latter set of features characterizes economic process in Japan and generates
advantages that make it supreme in market competition, it but tends to cause serious
environmental destruction. Until and unless people come to realize the importance of
the former set of features in economic life and proceed to establish more satisfactory
indicators of sustainable development, the self-reliance of the local economy will be
overwhelmed and disintegrated by market forces and state power.
The sustainability of the material circular flow is indispensable for future
environmental conservation in the world. We have to learn from the efforts made
against the gravity of the earth by salmon or eels who carry non-organic nutrients
accumulated at the bottom of the Pacifi c and Atlantic oceans up rivers on to the land
surface, so that they may keep up the cycle or recycle the fl ow of nutrients required
for the existence of other living systems on the earth. Far from doing so, our modern
civil engineering works have destroyed the ways used by salmon or eels through
the construction of dams and weirs in order to promote the one way movement of
economic goods. The modern transportation system needs to be altered in a way
that would discourage the distance which heavy commodities are transported, while
encouraging global human interaction and travel. Study abroad, overseas technical
training, marriage beyond national and ethnic boundaries, adoption of foreign
children, religious pilgrimages and other types of non-commodity human exchange
should be made accessible to everyone. For that purpose, economic reforms must
4 Hisashi Nakamura, Tiiki Jiritsu no Keizaigaku (Economics for Regional Independence), Tokyo: Nihon Hyoronsha,1998 The Korean edition was published at the same time with the Japanese book.
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Quest of People Based Development in Asia as Seen by an Unorthodox Economist
increase freight charges and lower passenger fares.
As for the creation of relationships in the field of economic activities, a new
alternative conceptualization of environmental pollution is fundamentally important.
For example, mud soil needed in paddy-fi elds though very dirty at wedding ceremony
just like petroleum needed in the motor car industry of 20th century though rejected
as the cause of pollution in Kyoto Protocol of COP3. In our people-oriented economy
all the industries are classified into three alternative categories according to their
basic relationship with local communities, as follows:
(a) Living system related industries run by the community sector (including
agriculture, forestry, fishery, animal husbandry, food processing, internal trade,
hospitals, kindergartens, elementary schools, funeral services, land management,
water supply and drainage, internal finance, waste treatment, local police, fire
brigade etc.).
(b) Industries catering to outside population and run by the private sector (production
meant for the market, mining and manufacturing industries, handicrafts,
souvenirs, travel agencies, tourist hotels, long distance trade, mass-communication,
newspapers, publishing press etc.).
(c) Inter-community industries run by the public sector (air lines, marine transport,
railways, highways, canals, telecommunications, postal service, electric power
supply, energy resources management, environment management, higher
education, academic exchange etc.).
The activities of people in the local community are becoming increasingly
diversified and multidimensional through the participation in many kinds of
organizations by a single individual. The conventional decision making procedures
in co-operative societies (i.e. one vote per member) is no longer ideal nor realistic
at all since most individuals are members of several societies, and attach unequal
importance to the different societies. Voting rights may be given according to the
average number of hours per week spent by the particular member on the particular
activities. At the same time, more and more decentralization of co-operative
management would be imperative and diverse self-management units should be
formed for substantial democratization.
A people-based economic order could exist in a community where landed property,
labor power and credit are gradually decommoditized, and ultimately cease to be
a commodity sold in the market. One long-range goal is to place all land resources
under the control of the local autonomous body. Labor forces are to be mobilized by
co-operative self-management enterprises. Local government will issue internal
local currency (a kind of prepaid cards) and systematize the circulation of the funds
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Hisashi Nakamura
needed for local investment. Inter-community organizations will play the role of
currency exchanger for currencies between community and external currency, and the
experiences of Islamic banks could be useful in minimizing interest rates.
In English, it is translated into “manysidedness of reality.” For the cross-civic
studies, the idea that the truth is not only one is very important. It is a study of
processes to tackle various kinds of real problems. We cannot say that we have found
solutions or we have made clear the truth. It is just a process of repeating to overcome
diffi culties.
3. Indicators of Poverty in International Comparison
The conceptualization of poverty has been focal point of political economy since
the inception of social sciences in 18th century. Many attempted to shed light on
diverse aspects of poverty, particularly concerned with the way how to measure the
level of poverty. Of course, monetary measurement in terms of the GNP per capita
has been the prime indicator for economists. In addition to it, certain basic needs like
nutritious foods, decent clothes, durable habitat are considered essential for poverty
reduction.
The World Bank (IBRD) considers the above indicators too narrow as proper
measurement of economic development in international comparisons, and tries to
incorporate life expectancy and literacy criteria as well. The UNDP is still unsatisfi ed
even with that attempt and compiles Human Development Indicators every year, in
which countries are ranked in descending order of their human development index. In
the latest report, the profi le for developing countries consists of the following items,
which are different from the profi le for industrial countries5;
(a) population with access to health services (%)
(b) contraceptive prevalence rate (%)
(c) maternal mortality rate (per 100,000 live births)
(d) adult consumption of spirits per capita (litters) and adults who smoke (%)
(e) population per doctor and nurse and public health expenditure (as a % of GNP)
These indicators are still insuffi cient to measure the economic welfare of human
beings in a broad sense, not because Japan is ranked top in the human development
index list, but because economic life cannot be separated from every other aspect of
human activity. Instead of the development indicators devised by the World Bank
and UNDP, a set of people centered indicators must be compiled on the basis of the
5 UNDP, Human Development Report, New York: Oxford University Press, 2000.
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Quest of People Based Development in Asia as Seen by an Unorthodox Economist
sustainability of circulation process, the development of diversity and the creation
of human relationship. In view of the people-oriented economic order, the economic
welfare of people can be measured by the extent of self-reliance and fulfilled life
activities.
Thus, the main negative aspects of economic life of people in a particular locality
may be indicated as follows;
(a) ratio of disassociation from the stationary reproduction rate of population
(b) ratio of patients isolated in mental hospitals out of the total population
(c) ratio of suicides due to economic diffi culties out of the total population
On the opposite end of the spectrum, positive aspects may be identifi ed as follows;
(a) ratio of material cycle (ratio of incoming goods to outgoing goods)
(b) ratio of participation of handicapped people in social activities
(c) ratio of voluntary workers out of the total population
After all, welfare is not a part of human life but an entity covering all the
dimensions of the life cycle of mankind. And any damage to the life of an individual
person diminishes the welfare of all fellow members. Therefore, economic well-being
must be strongly integrated with the diverse effl orescence of social and cultural life of
the people. When the economy is properly embedded in a sound socio-cultural base of
the human community, the poverty level may not be judged by a set of index, but by
the nature of the social relations among people concerned.
Buddha preaches that the foolish people watch only an index finger when the
moon is pointed out6. Modern economists are so foolish that they are concerned with
index all the time and keen to create a new set of indicators. Amartya Kumar Sen
joins Buddha and preaches economists the need of having broader perspectives to
understand many aspects of reality.
4. Commerce and Communication across the Oceans between Equal Partners
We have to admit that the market system is not only very powerful as an
economic force but also very signifi cant for supporting cultural interchanges among
human communities in different areas on the global map. Long distance trade
relations between ancient China and Rome did not bring out any exploitation at
6 Nakamura Hisashi, “Sankagata Gakumon toshiteno Minsaigaku to Kaihatsu · Sabetsu” (Minsaigaku and Development and Discrimination from the perspectives of Participatory Research) in Hiroshi Sato (ed.), Sankagata Kaihatsu no Saikento (Reassessment of Participatory Development), Tokyo: Asia Keizai Kenkyusho, 2003.
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Hisashi Nakamura
either side, but materialized the exchanges of different cultures. Very unfortunately,
however, European trade relations across the oceans since 16th century brought
out the exploitation of people at the other side of the world. There must be certain
fundamental regulations to limit commoditization in the constructing of a self-reliant
economy.
In a people based economy, all tradable commodities in a market transaction
must consist of items as follows;
(a) be reproducible by human labor. Landed property, labor power and credit are
not reproducible by labor itself, but are the merely institutionalized forms of social
relations among people concerned. Blood and human organs are not reproducible
using human labor either.
(b) be produced for the sake of sale. Food grains are originally produced to feed
producers themselves, their families, relatives and people in the same locality. Only
when surplus grains is available, it is sold in neighboring markets.
(c) not be harmful to human life. Presently, agro-chemicals whose sale is forbidden in
the market of the producing countries because they are harmful to human organisms
are still exported to some developing countries. Such trade should be prevented so as
to make such goods non-exportable even to the third world. This is the principle to
prohibit the trade of arms and weapons.
The concept of war or conflict is often placed at the opposite pole of peace,
therefore, peace is commonly misinterpreted as the non-existence of violence in our
world. Peace is, however, a twin brother of war, or at least a part of war which may
be fought in diverse ways. Every kind of the peace does not rest on the opposite
spectrum of war, but is closely related with war in the arena of world politics. As is
well known, all wars represent the destruction of human life through the exercise of
military power, and accordingly all peaces as fellow partners of wars represent the
control of human life in any society with military and police power. Thus, both have
been supplemental to one another in the history of sovereign state formation, at least
in the Western context.
Pax Romana was the military and political order maintained by Roman forces.
The ancient Chinese term for peace meant the pacification of revolting uncivilised
people by the mighty state power. The Pacifi c Ocean is the largest sea on our planet,
pacified by the Invincible Armada of Spain in 16th century. Pax Britannica was the
world political order around seven seas achieved by the formidable British Navy in
the 19th century. And Pax Americana is the contemporary world order controlled by the
dreadful nuclear weapons system of the USA. Throughout our historical experiences,
war has tended to destroy the other party as the enemy, and peace has tended to
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Quest of People Based Development in Asia as Seen by an Unorthodox Economist
suppress the other party as the disobedient.
Violence (including discrimination) and commerce (including cooperation) among
mankind have been at the opposite ends of the spectrum of human activities since
the use of fi re. The prime objective of violence is the destruction of human relations
in a given society, and that of discrimination is the rejection of human relations
between equal partners. On the other hand, every kind of commerce and cooperation
aims at the effl orescence of social relations. Very unfortunately, however, the nature
of technological development in the previous century has made it possible to such
extreme extent to eliminate the entire human population within an hour or two
through the nuclear weapons system. As a result of this, the last century was an era
of massacre on the ground of justifi ed wars and revolutions. The economic sciences
have been partly responsible for these sad affairs to a large degree although any
schools of economics are reluctant to admit it.
At the opposite pole of war, on the contrary, we should find such positive ways
to diminish the extent of conflicts as communication, consultation, commerce,
compromise, cooperation, coordination and so on. In this context, equal partnership
is the base for the development of collaboration between conflicting parties. People
have to open doors and meet together on any possible occasion in spite of the vexed
and accumulated antagonism in the long history of confrontation. Although we may
not be able to dream of the world without any war, violence, or confl ict as a part of the
ecological system on our earth, still we can make every effort to reduce the level of
violence. If non-violent practises are to be meaningful for mutual cooperation among
the people concerned at all, the way of participatory study and development must be
to promote interchange from the inside as well as exchange from the outside.
The idea mentioned above came to my mind while I was listening to Korean
Poet Kim Chi-Ha on the significant role of Shinshi in Asian Society as a mode of
interchange of human activities. Commodity exchange through the market system
has been very useful for the development of cross-cultural relations in many Asian
regions. We have to admit that the market system is not only very powerful as an
economic force but also very signifi cant for developing communication, consultation,
commerce, compromise, cooperation, coordination and so on. Since the Pax Romana
did not reach Ancient China, and Chinese peace never attempted to suppress the
Ancient Roman Empire, neither war nor peace existed between them. Yet, commodity
trade through the Silk Road or Indian Ocean contributed to the cultural heritage at
both ends. Very unfortunately, however, European trade relations across the oceans
since the 16th century brought about the exploitation of people at the other side of
the world. There must be certain fundamental regulations to limit commoditization in
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Hisashi Nakamura
the constructing of a self-reliant economy and cultural cooperation.
Beyond market and planned economy, reciprocal interchange system has played
crucial role in rural Asia It has not been limited to the activities within the community.
Irrigation and drainage works to cover a broad area and water distribution among
related villages are coordinated by non-market agreements. Likewise, marriages with
distant villages give a good indication of interchanging labour forces between villages.
These non-market links among villages have been broader and more durable than the
use of money, and have brought about a degree of regional integration, preventing the
isolation of a particular village. Unlike the Market economy this reciprocal interchange
strengthens intra- and inter-village solidarity.
5. Modernization of Japan as a Negative Example
In the 16th century, Japanese way of development faced the very significant
turning point when the political authority was compelled to close the door to overseas
trade activities at the advent of Western powers along with Christianity except
the tiny Dejima port in Nagasaki, Kyushu Island. During the entire Edo period
since then, all the developmental efforts were concentrated in the field of land
improvement with the combination of the stored and the perennial irrigation systems.
The large river basins like Tone, Shinano, Kitagami etc. were transformed into the
newly created rice fi elds through the joint ventures of ie (family) and mura (village)
organizations in case of small projects, and supported by the feudal lords in case of
large projects. This way of massive investment only in the land development was the
base for the later economic measures taken in the modernization period. This is why
agriculturists were given higher social position, next to the samurai ruling class, than
the fellow artisans and traders in the rural community.
On the other hand, those who were not engaged in agriculture related activities
in rural area were badly discriminated at the bottom of social hierarchy while being
addressed as eta and hinin. Villagers dealing with carcasses of cattle, skin and hide
industries, executioners, hunters, mint workers etc. were regarded as the lowest social
classes by the feudal rulers. Thus, the modernization of Japan started without the
concept of civil society, but inherited the strong propensity to civil engineering works and
social discrimination against non-agricultural villagers. Although the Meiji government
attempted to liberate eta and hinin people no serious effort was made to eradicate social
discrimination. Most of them have kept on leading the lives of worst housing conditions
with lowest income compared with surrounding residents in the same locality.
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Quest of People Based Development in Asia as Seen by an Unorthodox Economist
The official registration of family records called koseki began and the choice of
jobs according to the skill and will and migration in any part of Japan was liberalized
on this recording system, which led to the labor market. However, this has been
another source of social discrimination in modern Japan. Although many people left
leather related industries of their original village and moved to different parts of
Japan, still discriminations, for example at the time of marriage, continued because
of the family record system even after several generations of migration. Since the
colonial annexation of the Korean Peninsular, Korean people were also forced to have
similar family records under Japanese rule. Some of them were compelled to migrate
to Japan as cheap labor forces after their landed property was taken away by the
ruling Japanese and formed the modern slum areas of major cities along with the
discriminated Buraku people in 20th century. The following passage is a rough sketch
of the modern history of Japan, in which Buraku and Korean minority people have
been kept to work mostly as manual laborers at the bottom of the social hierarchy.
The century of “kaisha” without civil responsibility, Datsu-a-ron (de-Asianization)
and Datsu-no-ron (de-agriculturization) coined by a leading economist in Meiji Period,
Fukuzawa Yukichi dreamed of by the followers of him. Industrialization started with
the slogans of Fukoku-kyohei (wealth of nation state and strengthening of military
forces) and Wakon-yousai (Japanese spirit equipped with Western science and
technology). Hokkaido and Okinawa were conquered and colonialized at the inception,
and from those experiences the Japanese model of nationalism was combined with
industrialism, militarism, colonialism and fi nally imperialism. For about one century,
many wars were fought as Sino-Japanese war, Russo-Japanese war, World War 1 and so
on. Each war witnessed the acceleration of industrialization and in spite of the defeat
of militarism at World War 2 (Hiroshima and Nagasaki), this model was maintained in
the process of the economic reconstruction through Korea and Vietnamese Wars.
The formation of Kaisha Shakai (company-based society) from Mura (village)
organizations were promoted along with number of Westernized institutions such
as military forces (French army and British navy), public education system (great
emphasis on elementary and middle schools), medical care system (prohibition of
non-Western medical practitioners), local governments (implementation agency of
the central government), co-operative societies (substitutes of public and private
sectors) etc. The Kaisha is the meeting point of Japanese and Western institutions. To
some extent, Japanese experiences in military organizations were also made use of
Japanese mode of management
Since the advent of Buddhism to Japan through China and Korea in the 6th
century, intellectual history in Japan has recorded great respect toward the South
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Hisashi Nakamura
Asian culture. During the period of modernisation in the late 19th and the early 20th
century, Japanese leaders tried to follow the European way of social and economic
development through nationalism, industrialism, militarism, colonialism and so on.
After the catastrophic experiences of Hiroshima and Nagasaki in 1945, the resurgence
of the Asian value of the non-violent way of life has been recognized as manifested in
the present Constitution of Japan.
The preamble of the constitution states; “We, the Japanese people, desire
peace for all time and are deeply conscious of the high ideals controlling human
relationship, and we have determined to preserve our security and existence, trusting
in the justice and faith of the peace-loving peoples of the world. We desire to occupy
an honored place in an international society striving for the preservation of peace,
and the banishment of tyranny and slavery, oppression and intolerance for all time
from the earth. We recognize that all peoples of the world have the right to live in
the peace, free from fear and want.” And Chapter II of the constitution declares the
renunciation of war with “Article 9. Aspiring sincerely to an international peace based
on justice and order, the Japanese people forever renounce war as a sovereign right of
the nation and the threat or use of force as a means of settling international disputes.
In order to accomplish the aim of the preceding paragraph, land, sea, and air forces,
as well as other war potential, will never be maintained. The right of belligerency of
the state will not be recognized.”
This is what we learned from South Asian wisdom. In short, both sides of South
and East Asia share the common goal of humanity. In 1949, Indian Prime Minister
Jawaharlal Nehru donated two Indian elephants to the Ueno Zoo in Tokyo. This
brought a ray of light into the lives of the Japanese people who still had not recovered
from Japan’s defeat in World War II. Japan and India signed a peace treaty and
established diplomatic relations on 28th April, 1952. This treaty was one of the
fi rst treaties Japan signed after the World War II. Japan’s relation with the rest of
the South Asian nations has been set according to the Indian example in a similar
manner, and kept up, more or less, friendship, though not very close.
Three kinds of scenarios for Japan’s economy could be formulated and examined
while the roles played by Japan being taken into consideration from the viewpoint of
future relationship with the rest of Asia.
(1) He (Hyper-expansion)
In this scenario, Japan will have ever-increasing share of production, trade and
investment in the global economy to emerge not only as a leading force in Asia but
also as a superpower (pax japonica or pax nipponica) in the world. Japanese Yen will
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Quest of People Based Development in Asia as Seen by an Unorthodox Economist
replace US dollar as key currency for the settlement of international transactions.
For the achievement of this ambition, Japan needs rearmament with sophisticated
nuclear weapon system.
(2) Sa (Structural adjustment)
In this scenario, Japan will encourage more domestic economic activities through
fi scal and monetary policies than external investment and trade expansion in order to
cater to the needs of aging society. Japan may play some roles of an economic engine
only within the framework of global fi nancial system guided by USA and her allied
forces.
(3) She (Sane, humane and ecological)
In this scenario, Japan will gradually de-commoditize of landed property labour-power
and credit in the market, and look forward to the way of de-development in certain
industries that are environmentally destructive. The local economic self-reliance
should be pursued through the decentralization process of political, social and
cultural activities. In Asia, Japan will be a common member of regional organizations,
not to play a leading role as she wanted in the past. With the idea to step forward to a
sane humane and ecological way of Japanese life, we have to collaborate with people
based co-operatives in Asia.
6. Concluding Remarks: Lessons from Ishigaki Island
The Ocean is the source from which Life flourishes. The Earth’s small-islands’
communication tied together Life across the Ocean’s seven seas. This communication
also facilitated the blossoming of each island ’s culture. Every island was
simultaneously a part and the center of this comprehensive communication network.
This maintained the equitability of each small island; no fi xed minority nor majority.
The islands’ rich environment supported the circularity of life. People lived enriched
lives brought by the fruits borne of the sea and of the land. This comprehensive
communication network of small islands not only in Japan but all over the world,
near and far, led each people to their own self-reliance.
Now, at the beginning of the twenty-first century, global non-nation state
activities are paving the way for wider networking activities. They include all
organizations, non-governmental or non-profit. The scope of these organizations is
diverse, ranging from local governments that work for their people to those which
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Hisashi Nakamura
focus on the international frontier. From the beginning, the critical role of co-operative
principle will play in the medium for change. New co-operative networking efforts
are located outside of the framework of the modern nation state, just as small islands
were in the past; the unique positions and roles of them manifest the potential to tie
together life across the globe.
This tie, in turn, should support the self-reliance of people, just as the
comprehensive communication network of small islands did before the modern nation
states were established. This communication of island people will bring us beyond the
bounds of modernization. Yaeyama people have substantial, historical experience to
become, together with co-operative movements from all over the world, a part and the
center of the new dawn. Multi-dimensional communication that not only permeates,
but also dissolves nation state boundaries is the fi rst step for small islands to revive
their self-reliance. All islands that protest against marginalization will walk together
in the communication network for the sake of realizing their self-reliance.
When Japan put enormous efforts into public works such as developing newly
reclaimed rice fields, people in the Ryukyu Archipelago developed relationships
through trading goods with people in China and in Southeast Asia and entered
into a full-fledged trading era. Okinawa, after being returned to Japan, has been
strongly affected by a number of public works originated from the main land Japan.
Meanwhile, cultural heritage as well as ecology is being destroyed. When one
considers the situation, the richness that trading can produce re-introduces to us the
importance of re-examining the Southeast Asian nature of Ryukyu Kingdom. As our
thoughts turn towards the history of the Ryukyu Kingdom and broaden our outlook
South, we may gain a new worldview. If NGO activities can destruct The Nation-State,
the social construct of society in the nineteenth century, Yaeyama, a marginalized
community in modern Japan, can become a part and the center of the new dawn.
Issues derived from the land have to be dealt with as social relationships that
people create, rather than as nature. One remarkable case can be drawn from the
burial site of the (19th century Chinese) Chin Dynasty people in Ishigaki. The
memorial site solidifies the hospitality with which the Ishigaki people treated 410
Chinese coolies who were sold to the US gold mines as the substitute of slaves one
year before Commodore Perry came to Japan in 1854. Those coolies made rebellion
against the captain and his crews in the commercial vessel “Robert Baum” while
anticipating the fate of slavery in the West Coast of USA.
After killing the captain and some followers of him, they arrived at Ishigaki
Island to seek shelter. Upon obtaining the information on the rebellion, British Navy
and US Navy sent their war ships respectively to the island to capture the coolies and
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Quest of People Based Development in Asia as Seen by an Unorthodox Economist
landed with the fi rearms. Most fugitive coolies were hiding themselves in the jungle
with the fear that they may be executed on return to the original port of South China.
About half of them were massacred by the mopping up operations of both navies.
Then, people in the island tried to appease British and American Navies, offering
drinking water, fi re woods, chicken, buffalo meat and so on, and saved lives of nearly
200colies. Finally, Ishigaki islanders sent back most of those Chinese coolies to their
original villages after they had negotiated with the then Chin Dynasty offi cials and
accommodated them in the islanders own ships
Compared with the fl ustered Japanese government’s dealing with Perry, Ishigaki
people performed much well in caring for the Chinese coolies. This historical event
has been taught in schools of China and Taiwan. But, Japanese Ministry of Education
did not like to include it in the school textbooks although many pages were allocated
to the story related with the arrival of American Fleet (four warships). Very few
Japanese knows the Salatga that had come to Ishigaki one year ago was one of those
four war ships.
In 1992, when an epitaph on a monument was carved, the Japanese government
did not have an offi cial diplomatic relationship with the Republic of China. However,
the Mayor of Ishigaki openly carved words of thanks to “The Republic of China.” This
carved epitaph played a role to openly declare that the local self-governing body in an
NGO. Along this line, Yaeyama people organized themselves without any involvement
of Tokyo-ites or outsiders and went directly to aid the Taiwanese when they suffered
from the Taiwan Earthquake in 1999. In this way, Yaeyama has developed solidarity
with Southeast Asia. As people in Ishigaki did in 1852, the going beyond the limit
of the modern nation states can be attained through the networking activities that
peoples’ cooperation and local self-governing bodies develop as they permeates and
dissolve nation states boundaries.
At the beginning of 1990s, the Ministry of Health in Tokyo decided not to extend
any public medical assistance to the undocumented foreign workers who deadly
needed the medical care due to serious accident or grave diseases after working for
the economic benefit of Japanese people. Most of them have been employed in the
industries which Japanese workers tried to avoid because of the nature of 3D (dirty,
diffi cult and dangerous) works. Japanese industries request the labor forces of sturdy
foreign workers in aging society, but not fellow human companions as equal partners.
Contemporary policy makers in Tokyo have to learn from the sane, human and
ecological way of life among Ishigaki islanders in 1850s to develop healthier social
relations with neighbouring people in Asia.
Lessons learned from the Ishigaki islanders direct us the way of an alternative
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Hisashi Nakamura
development relying on the elaborate cooperation within local community and also
with outside experiences. Local self-reliance can be pursued through the collaboration
with those who come back from the diverse experiences in distant communities as
well as those who bring fresh interventions from outside.
The level of self-reliance will be higher when people depend upon more outside
supports than the isolation or the dependence on a single factor. If we depend on
only one person, an institution or one system, our life has to be subordinated and
controlled by a single force. The more diversified factors we depend on, the higher
level of self-reliance will be attained among us. All the development plan and confl ict
resolution requires the support from outside. This is what we learn alsofrom the
Buddha’s Magga.
STUDENT PRESENTATION
Participatory Research for Poverty and Conflict Resolution
STUDENT PRESENTATION
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Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia? Evidence from the Cocoa Smallholders*
Muhammad Arsyad**Rahim Darma***
1. Issue and Objective
Although the rapid expansion of Indonesian cocoa production has been mainly
contributed by the smallholders (more than 90% in 2005), the proportion of cocoa
smallholders whose income falls below the “official” National Poverty Line still exists
in two ways. Firstly, cocoa smallholders are originally poor. Secondly, the smallholders
were moving out of poverty then fell into poverty again causing low purchasing power.
Besides, some remaining crucial issues which are strongly associated with poverty
reduction for cocoa smallholders stay behind. They are; (1) the difficult aspect to
improve income of cocoa smallholders through the agricultural and non-agricultural
economic activities still becomes the classical problem challenge in the country; (2)
the average size of agricultural land ownership can not be expected to increase their
production; (3) cocoa smallholders suffer from inavailability of farm credit scheme
for their farming; as a result, they don’t have options to finance their production,
daily life desires except for lending capital input (money) from the brokers which
* This is a revised version of paper presented at the International Seminar on Participatory Research for Poverty and Confl ict Resolution, organized by the Afrasian Center for Peace & Development Studies, Ryukoku University, Kyoto, Japan on December 6, 2009. We would like to extend our sincere thanks to Professor Yoshio Kawamura for his invaluable solution in employing Factor and Path Analysis. We especially also thank to Professor Muslim Salam for his excellent adjustments on earlier drafts of the research proposal; Professor Saleh Ali, Professor Koji Tanaka and Mr. T. Temesgen Tilahun for their lively comments during the presentation of an earlier version of this paper.** Muhammad ARSYAD is an Agriculture Faculty Member at the Department of Socio-economics of Agriculture, Hasanuddin University, Indonesia and a doctoral student at the Graduate School of Economics, Ryukoku University [arsyad_uh@yahoo.com] *** Rahim DARMA is Chair of the Agribusiness Study Program, Graduate School, Hasanuddin University and he has been a visiting scholar at Alabama University, USA since 2009.
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Muhammad Arsyad, Rahim Darma
most of them are called ‘tengkulak’. Then the tengkulak’s money will repaid by the
smallholders in terms of cocoa products, but the price is determined by the tengkulak;
(4) the difficult access to social facilities such as education, public health services
and clean water resources causes low quality of their human resources in terms of
education attainment and health. Van de Walle (1992) also identified that access to
and utilization of public services has been a long standing issue in many developing
countries, and Indonesia is no exception. Here too, the dimension along which one is
concerned about utilization and access are between “poor” and “non-poor”, but also
along characteristics such as whether one lives in a rural or urban area, in Java or
the Outer Islands, and gender; and (5) the lack of access to market price information
for both farm input and output, agricultural extension, as well as non-agricultural
business opportunity. One of the possible negative consequences of these aspects is
that the smallholders are not able to expand their plantation area to improve their
income. In addition, the poor situation of cocoa smallholders is also exacerbated by;
firstly, the government policies -including monetary policy such as high interest rates-
were and still are, not suitable for the cocoa smallholder development in Indonesia.
Secondly, the low quality of Indonesian cocoa beans, especially which are produced by
the smallholders, is one of the crucial issues. Given the current situation, it is really
necessary to construct the research on poverty-smallholders linkages as a challenging
and interesting issue in combating poverty of cocoa smallholders in the country. Two
specific purposes of the paper are. The first is to measure the proportion of cocoa
smallholders whose income falls below the poverty line and how severe the poverty
situation is. The second is to compare the poverty situation between two villages in
Indonesia so that we are able to identify how different the poverty situation is.
2. Extracting Causality: Studies on Poverty
Poverty is multidimensional; it encompasses not only what is called income
poverty, i.e. deprivation of income/consumption such as the satisfaction of minimum
level of food and other basic needs, but also limited access to health, nutrition, and
education services, which aggravates the impact of income poverty, resulting in child
mortality, short life expectancy, and illiteracy. In addition, the poor are vulnerable to
shocks and risks and lack ability to cope with or overcome shocks. These individuals
suffer not merely from transient decline in income consumption and well-being
but also sink into deeper long-term endemic poverty. Different aspects of poverty
reinforce one another. In a wider sense, poverty basically connotes a lack of choice
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Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia?
and opportunities on the part of individuals to achieve an optimum exploitation or
use of their potentials or capabilities; it implies lack of empowerment on their part to
participate in or influence the decision-making process affecting their livelihoods and
well-being (Islam, 2006). All these indicate that poverty is a complex phenomenon
that can not be seen by one view point meaning many factors associated with poverty
itself, not only internal factor such as household human resource and production
factors ownership (say agricultural land for the poor smallholders), but also more
importantly the impact of external factors such as access to social services and
information availability on the community across developing countries in which
Indonesia is no exception. For the distribution of the benefits from social services
in Indonesia, Van de Walle (1992) in her study for the World Bank found that given
existing patterns of use, education spending is more efficient at directly reaching the
poor than is health spending. In the education sector, subsidies to primary and to a
lesser extent lower secondary education are most likely to reach poorer households
and raise their living standards. Education is potentially important conduit for
reaching relatively isolated rural households. Walle also gave a justification that
education subsidies effectively reach the poor for two reasons; poor families have more
children, and richer families self-select their children into private school. Meanwhile
in the health sector, subsidies to basic primary health care provide the best avenue
for reaching the poor, but they are far from ideal as an instrument for doing so.
The next important factor in identifying poverty causality is access to
information for the poor. So far, the study conducted by the CRIEC-World Bank (2002)
in Indonesia reveals the importance of information availability. It was found that 30%
of the households surveyed receive an income just sufficient for food requirement. The
poor usually come from farmers who are having lack of asset both land and equipment
as well as information (market, technology, capital and business opportunity). Then
the bank classified that the main factors determine the gap between the poor and
the rich are access to information. This is one finding. Another interesting finding is
from Kawamura’s study (2002) on poverty causal factor in South Sulawesi, Indonesia
by using an index “Transportation and Communication.” He found that “Radio
Communication Access” has no statistically significant path coefficient (βweight)
in relation to the “Lowest Income Level” as a poverty proxy in his study meaning
there is no direct impact on the poverty. However, “Radio Communication Access”
shows significant β weight in relation to the “Dependency on Agriculture” as one of
the intermediate variables in his work. Thus, “Radio Communication Access” will
eventually have indirect impact on “Lowest Income Level” or poverty through the
variable “Dependency on Agriculture.” Two studies above lead us to clearly say how
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Muhammad Arsyad, Rahim Darma
importance the information accessibility is in identifying poverty causal factors.
Another crucial dimension associated with poverty in developing countries
like Indonesia is both the role of agriculture and non-agriculture sectors in poverty
reduction. This is not without clear arguments. A number of important studies
support this aspect centers around a conclusion that the role of the sectors in general
and their linkage in particular are extremely important in reducing poverty. To
briefly justify this view point, some important studies that can be found in Kawamura
(2002), Sumarto & Suryahadi (2003), Said & Sallatu (2004), Salam (2006), and
Tambunan (2007). Kawamura in his estimation used the “Dependency on Agriculture”
as one of the important poverty causal factors in terms of “Lowest Income Level.”
He persuasively resulted a positive βvalue on this particular factor meaning the
more the households at lowest income level are in village, the higher the dependency
on agriculture is in the economic activity. This indicates what Salam found that the
agriculture sector (rice field production, cocoa production, on-farm labor and cocoa
plantation area) is one of the most important sectors in dealing with the poverty
in the forest community. Said & Sallatu also highlighted that the sector is one of
the possible important factors to help poverty reduction. These findings lead us to
accept Sumarto & Suryahadi’s findings that indeed agricultural growth has been
the most important factor contributing to rapid poverty reduction experienced by
Indonesia during the high growth pre-crisis period. In terms of poverty headcount,
agricultural growth accounts for 66% of total poverty reduction, 55% of urban poverty
reduction, and 74% of rural poverty reduction. In terms of poverty gap, agricultural
growth accounts for 51, 36, and 57% respectively of total, urban, and rural poverty
gap reduction. Meanwhile, for poverty severity only the reduction in rural areas is
calculated as only for these areas the coefficient is statistically significant. It appears
that 49% of reduction in poverty severity in rural areas is due to agricultural growth.
Tambunan’s study decomposes the percentage changes in poverty into three main
sectors in terms of their shares in total employment, namely industry (I), agriculture
(A) and services (S) in Indonesia. The result shows that the output growth in
agriculture appears to have the strongest impact (-10.04dYA) on the change in poverty
than those in the other two sectors (-2.56dYI and -1.82dY
S).
Smallholders indeed play an important role in encouraging Indonesian cocoa
production. The Indonesian Statistics for Estate Crop and Estate Development
Strategic Plan clearly show that the total production of cocoa at the national level
reached 536,804 tons in 2001 and 748,828 tons in 2005. Within this period, the
average growth of production was 10.49% per annum (the highest of 21.55% was
achieved in 2001). An interesting point is that most of this production (90.83%
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Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia?
per annum during 2001-2005) was produced by the Smallholders Estate (SE).
The contribution of smallholders to the total production reached of 88.85% or
around 476,924 tons in 2001 with growth by 23.76%, a substantial contribution for
Indonesian cocoa production. Meanwhile the remaining shares, 6.32% or around
33,905 tons (with negative growth by 2.61%) and 4.83% or around 25,975 tons (with
growth by 12.52%) are Government Estate (GE) and Private Estate (PE), respectively.
Up to 2005, these three categories of producer had a fluctuated growth, especially
GE declined of 24.17% in 2004 and PE of 9.53% in the same year. Fortunately, SE
persisted on its production growth by 11.69% per annum (2001-2005)--it was higher
than a national average of 10.49%--, while the GE had a negative growth (-6.77%),
although the PE also still had a positive way (4.62%). The turmoil situation above
reminds that the smallholders play a strategic role in Indonesian cocoa production.
This conveys a message that the rapid expansion of Indonesian cocoa production can
not be separated from smallholders. In other words, without having the comparative
advantage of cocoa smallholders, the Indonesian cocoa production growth can not be
expected to place Indonesia the third largest cocoa producer in the world. This implies
that poverty of smallholders could become crucial issues for Indonesian agriculture in
the future.
Using the Agricultural Censuses data, Booth (2004) identified that total incomes
from all sources are broken down into agricultural wages, other income from
agricultural activities, non agricultural wages, and various types of self-employment
activities in manufacturing and services. In addition, many households receive income
from remittances, pensions etc. In 1993, wages and salary earnings were the largest
single source off-farm earnings and non-agricultural wage earnings were greater
than those from agriculture. There is evidence of an inverted “U” relationship, in
that both agricultural and non-agricultural wages account for a higher proportion of
total agricultural household incomes for the middle income groups. All justifications
mentioned above leads us to hypothesize that the Dimension of Household Human
Resource, Agricultural Asset, Access to Social Facility, Access to Information,
Agricultural Economic Activity and Non-Agricultural Economic Activity affect poverty
of cocoa smallholders (Figure 1).
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Muhammad Arsyad, Rahim Darma
Figure 1: Hypothetical Model1
Note: 1) An arrow indicates a causal relation and a curve indicates a correlation; 2) Pjq is a path coefficient of X
j
on Xq, while r
jq is a correlation coefficient between X
j and X
q.
3. Methodology3.1. Research Site and Data Collection
The research was conducted in South Sulawesi Province, Indonesia. Two basic
criterions of the research site are needed. They are; (1) the average percentage of
cocoa smallholders and poor households for selecting district (Criterion 1), and (2) the
same percentage in cocoa smallholders, but different in poor households for selecting
village (Criterion 2). In order to reach these criterions, by putting the secondary data
into XY Scatter Plot, we got the research site (Figure 2 and Figure 3). Each figure
is divided into four Quadrants (I, II, III and IV) which have particular characteristics
regarding the cocoa smallholders-poverty linkages. Quadrant I indicates high
percentage in both cocoa smallholders and poor households. Quadrant II indicates low
percentage in cocoa smallholders, but high percentage in poor households, and so on.
The horizontal and vertical lines refer to their average. In Figure 2, there were 23
districts (‘kabupatens’) in the province. By Criterion 1, we selected Kabupaten Sidrap.
In Figure 3, there were 71 villages (‘desas’) in Sidrap plotted.2 Then, Desa Maddenra 1 The model in this paper was extracted from our previous publication to explain the different purposes, see for example Arsyad & Kawamura, 2009, pp. 1-27.2 There were 105 desa in Kabupaten Sidrap (data 2006), including kelurahan. Kelurahan is also the smallest governmental unit (just like desa) in Indonesia. However, generally desa is located in the rural area, while kelurahan is located in and near capital city. Therefore, access to information and public services (like education and public health center) are easier for the kelurahan residing. All kelurahan were excluded from the Scatter Plot to satisfy the Criterion 2.
Household Human Resource
(X1)
Agricultural Asset (X2)
Access to Social Facility (X3)
Access toInformation (X4)
Agricultural Economic Activity
(X5)
-Agricultural Economic Activity
(X6)
P O V E R T Y
(Household Incom
e, X7 )
P71
P51
P75
P61
P52
P62
r21
r31
r41
r32
P72 r56
P63
P53
P76P54
P64
P74
r43
r42
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Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia?
and Desa Compong were chosen to satisfy Criterion 2. We interviewed 70 households
in Compong (26.40 % of the total cocoa smallholder households) and 82 households in
Maddenra (28.20% of the total cocoa smallholder households) so that the total sample
was 152 households.
3.2. Analysis Methods
(i) Head Count and Poverty Gap Indices
The proportion of cocoa smallholders is living below the Poverty Line and how
severe the poverty situation is analyzed by using the Foster-Greer-Torbecke poverty
indices. They are the Head-Count Index (HCI) and the Poverty Gap Index (PGI):
NA
HCI = , where A is the number of household are below the poverty line, N is the
number of total households. ⎥⎦
⎤⎢⎣
⎡ −= ∑= Z
IZNA
PGI iA
i 1
, where Z is the Poverty Line (PL) and
Īi is average income of the households below the PL. We employ the 2006 National
Poverty Line (NPL) for rural area in South Sulawesi of Rp.98,946.00/capita/month
issued by CBS3.
(ii) Factor Analysis for Index Construction
Three subsequent steps are undertaken in Factor Analysis. They are; (1)
extracting factor to meet an initial solution or initial decision regarding the number
of inputted factors underlying a set of measured variables in each of the dimensions
studied by employing Principal Component Analysis (PCA) as an extraction method
(unrotated solution); (2) rotating factor by using Varimax Method--the most common
rotation method-- to create the results which are expected more interpretable as a
final solution. The consideration is that unrotated solution has unclear meaning,
while the rotated factor matrix provides the clear cluster of variables in the
dimension constructed; (3) constructing Factor Matrix to calculate “Index” as a new
set of variables to be regressed.4
3 CBS is Central Board of Statistics in Indonesia. The board also issued the NPL for urban area.4 For this purpose, we used SPSS Software to create factor score for all indices. See Arsyad & Kawamura (2009) for the procedure of index construction.
- 50-
Muhammad Arsyad, Rahim Darma
Figure 2: XY Scatter Plot for Selecting District or ‘Kabupaten’
Figure 3: XY Scatter Plot for Selecting Village or ‘Desa’
(iii) Path Analysis
Path Analysis (PA) basically is standardized General Multiple Regression
Analysis (GMRA). A multiple regression equation is a liniear model constructed by
a dependent variable and a set of explanatory variables (Kawamura, 1978:228) to
represent reality or phenomenon which can be formulated based on both theoretical
framework and emperical evidence. The fundamental different between PA and
XY Scatter Plot for Selecting Kabupaten
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
0.00 10.00 20.00 30.00 40.00 50.00
ercentage of Cocoa Smallholders
Perc
enta
ge o
f Poo
r Hou
seho
lds
I II
III IV
SIDRAP
XY Scatter Plot for Selecting Desa
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
0.00 20.00 40.00 60.00 80.00 100.00
Percentage of Cocoa Smallholders
Perc
enta
ge o
f Poo
r Hou
seho
ld
III
III IV
COMPONG
MADDENRA
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Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia?
GMRA is only the nature of data. The data used in PA is standardized.5 Therefore,
the assumption used in PA principally is the same as GMRA assumption. The general
model of Path Analysis;
Yt = β
1X
1t +β
2X
2t +... +β
kX
kt + E
t , for Y
t, X
it are standardized and t = 1, 2,…
, n yields the following form:
Yt =
⎟⎟⎠
⎞⎜⎜⎝
⎛∑=
K
qqtq X
1
β + Et in which the direct impact of the independent
variables on each of its respective dependent can be estimated by path equations:
X1 = E
1 (Path Equation 1, PE 1)
X2 = E
2 (PE 2)
X3 = E
3 (PE 3)
X4 = E
4 (PE 4)
X5 = P
51X
1 +
P
52X
2 + P
53X
3 + P
54X
4 + E
5 (PE 5)
X6 = P
61X
1 +
P
62X
2 + P
63X
3 + E
6 (PE 6)
X7 = P
71X
1 +
P
72X
2 + P
74X
4 + P
76X
6 +P
75X
5 + E
7 (PE 7)
The above equations yield a general form, j
k
qqjqj EXPX +⎟⎟⎠
⎞⎜⎜⎝
⎛= ∑
=1 for (k < j); where
Pjq is path coefficient of the independent variables and E
j is error terms. The estimated
values in each one of the above path equations can be obtained (from PE 5 to PE 7)
by the formula ∑=
<=k
q
jkjqXqPjX1
)(,ˆˆ ; where a hat (^) indicates an estimated value.
Thus, a path coefficient Pjq is a standardized regression coefficient, which is b
jq*(S
xj/
Sxq
). In this case, bjq is an unstandardized regression coefficient, while S
xj and S
xq
are, respectively, the standard deviation of Xj and of X
q (see Kawamura, 1978). This
solution leads us to test a Null Hypothesis (H0)
that “there is no significant impact of
independent variables on dependent ones”.
(iv) Test for Goodness of Fit and Significance of the Path Coefficient
For testing goodness of fit and path coefficient, we regress all indices on the
Poverty as dependent variable. In addition, we also regress all indices on each of the
intermediate variables so that the overall test for goodness of fit of the path equation
on the intermediate variables could also be identified.6 We used the advantage of
5 The formula for variables standardization (named Z-score tranformation) is shown as follows. This yields zero mean with a standard deviation of 1.0. This value transformation does not affect a correlation coeffi cient (Kawamura, 1978:220) which is given by:X where, X
i is an observation of the ith case in a variable X, ,/)( SDXXZscore i −= is a mean of
variable X, and SD is a standard deviation of a variable X. 6 However, the impact of independent variable on each of the two intermediate variables will not be discussed in this article.
- 52-
Muhammad Arsyad, Rahim Darma
SPSS Program in calculating the observed F-value and coefficient of determination
(R2) in testing for goodness of fit. The higher R2, the better estimates meaning the
model is fit. From this perspective, R2 heavily depends on the ability of equation
specification in explaining the reality. If the observed F-value exceeds the criterion
ones, we reject H0. The next stage was the test for significance of path coefficient,
whether the observed path coefficients differs statistically from zero (α= .10) by
using the t-ratio. In obtaining the t-value, we estimate the standard error of the path
coefficient (Sbi) a long with the path coefficient (P
jq) for each variable. If P
jq,/S
bi exceeds
the t-distribution, we conclude that (Pjq) differs significant from zero.
4. Results and Discussion4.1. Factor Analysis for Index Construction
The primary purpose of use Factor Analysis in this paper is to construct
representative factor for each of the six dimensions in two ‘desas’ (villages) which
then enable us to construct an index to be regressed. It was found that each of the six
dimensions (Household Human Resource, Agricultural Asset, Access to Social Facility,
Access to Information, Agricultural Economic Activity, Non-Agricultural Economic
Activity) has at least two representative factors as indices and at least one of the
variables strongly loaded on each representative factor.
4.2. Test for Goodness of Fit and Significance of the Path Coefficient
The overall test persuasively resulted in the rejection of H0 that “there is no
significant impact of independent variables on dependent ones” as a whole. This could
be proved that all path coefficients in the Path Equation (PE) 1 are zero. In addition,
it can also be identified that the significance test for each of the six path coefficient of
the intermediate variables lead us to reject H0 that “there is no significant impact of
the independent variables on intermediate ones”. The regression results show the R2
of each six path equations in Desa Compong. PE 1 is the path equation of the twenty-
one independent variables (including intermediate) on “Household Income (X7)” as
dependent variable in this step of analysis. The R2 of PE 1 reached 0.872. This figure
tells us that 87.20% of the total variance of endogenous variable (Household Income)
in general, can be explained so fairly robust by the all twenty-one explanatory
(independent) variables. Meanwhile, in Desa Maddenra, the R2 of PE 1 reached 0.814.
It means that 81.40% of the total variance of “Household Income” in general, can also
be explained so fairly robust by the all twenty-five explanatory variables. Thereby,
we may say that the model constructed through the six dimensions in the research
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Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia?
is more than adequate in explaining the poverty situation. In other words, all six
dimensions constructed (Household Human Resource, Agricultural Asset, Access
to Social Facility, Access to Information, Agricultural Economic Activity, and Non-
Agricultural Economic Activity) could be the important dimensions for the poverty of
cocoa smallholders. This also leads us to argue that all significant variables collected
could be the better direction for policy formulation dealing with poverty reduction in
Indonesia.
The last test was the T Test for the significance of all path equations based on
regression result. In addition, the number of significant path coefficient might also
help to identify the important explanatory variable. All path equations have at least
three significant path coefficients in which the PE 1 has 10 significant variables (X62
,
X61,
X53,
X52,
X51,
X37,
X33,
X32,
X31,
X24
) in Desa Compong and it has 11 significant variables
(X62m
, X
54m, X
53m, X
51m, X
42m, X
33m, X
27m, X
25m, X
22m, X
21m, X
12m) in Desa Maddenra.7
4.3. Poverty Causes: A Comparison of Two Villages in Indonesia
This section deals with a comparison of the poverty situation between two
villages or ‘desas’ and identifying important causes. A strong assumption here is that
it was found (through XY Scatter Plot of Figure 3) that some desas are of the same
in percentage of cocoa smallholder households, but they are different in percentage of
poor households including Desa Compong and Desa Maddenra where we conducted
the research. The calculation reveals that the Head Count Index (HCI) of Poverty in
Compong is .3428. It means that around 34.28% of the cocoa smallholder households
interviewed in Compong have an income/capita/month below the National Poverty
Line (NPL). Meanwhile the Poverty Gap Index (PGI) of the analysis is .10. It indicates
that the average income of smallholder households falls short from the NPL. This
situation is different from Desa Maddenra. The calculation reveals that the HCI in
Maddenra is .0731 meaning that less than 10% of the cocoa smallholder households
interviewed have an income/capita/month below the NPL. In fact, the average income
of all smallholder households interviewed in Maddenra is above the NPL resulting
the PGI of zero (0) meaning there is no poverty gap in the community. However, it
is important to emphasize that this finding should not be interpreted to mean that
there are no poor people there at all (as HCI revealed). The indices of PGI reveal that
the depth of poverty is, however, severer in Compong than Maddenra.
It is true that the Paired-Samples T Test (Table 1) shows that the average
household income was, however, higher in Desa Maddenra (compared to Desa
Compong), but it was just Rp518.67/capita/year or Rp43,250/capita/month (around 7 The PE 2, PE 3, PE 4, PE 5 and PE 6 are not shown here.
- 54-
Muhammad Arsyad, Rahim Darma
US$4.71/capita/month, $1=Rp9,167, rate in 2006) in mean difference so that allows
us in the acceptance of H0 that the population mean difference is equal to zero
meaning statistically there is no mean difference between these two desas in terms
of household income as a poverty proxy in the analysis. All these indicates that
the degree of poverty situation between Desa Compong and Desa Maddenra were
relatively the same. However, it is also true that they have a differentiation in terms
of income structure or component meaning poverty causes differentiation, not only
the magnitude but also the sign of causes itself.
Table 1: Paired-Samples T Test of Household Income between Desa Compong and Desa MaddenraPaired Differences
Desa Compong Desa MaddenraMinimum 4,600 4,600Maximum 62,500 76,850Mean 2.07E4 2.12E4Standard Deviation 15,372 12,939
90% Confidence Interval of the DifferenceLower -3449.642
Upper 4486.985
Mean Difference 518.671t .218df 69p-value .828N = 152
For comparison ways, we provide Table 2 and Table 4 to see the poverty causes
by different variable groups (intermediate and independent). We should emphasize
here that the variables collected among two ‘desas’ (villages) theoretically should be
the same for two fundamental reasons. Firstly, in constructing the hypothetical model,
it was obviously using the same dimension in identifying variables conceptually or
dimensionally for two desas. Secondly and most importantly, the instrument used in
collecting primary data (questionnaire) is also exactly the same, meaning variables
collected for each of the five dimensions between two desas should be also the same.
However, Correlation Matrix among variables in the beginning step of analysis
persuasively displayed some dimensions that yields the different variables collected
in two desas. In addition, Factor Analysis also reveals that even if we put the same
variables among two ‘desas’ (villages) in the analysis (Household Human Resource
Dimension for instance), but it still had a possibility to produce the different factors or
component resulting the different indices. This indicates that beside their similarity
as common factor, these two desas also have a different social structure based on
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Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia?
the dimensions constructed which creating the different poverty causes, not only the
magnitude but also the sign of causes itself.
At least, there are three ways to compare the poverty situation between two
desas as well as identifying important causing factors. The first is identifying the
common factors responsible for the poverty of two desas. In Table 2, it is clearly
displayed that the variable Government Transfer-Source Income appears to be
a common factor in each of the two desas. The meaning of variable Government
Transfer-Source Income is household income from the government (government
transfer). It is true that the Indonesian government has been providing, not only
financial support (cash transferred) to the poor household such as Social Safety
Net Program including Highest Oil Price Compensation to help them in daily life
desires, but also the government subsidizes agricultural inputs such as fertilizer and
chemical pesticide as well as farm equipment (especially paddy field) to the rural
smallholders in which these two desas (Compong & Maddenra) are no exception.
Therefore, it is a reasonable result that “Government Transfer-Source Income”
appears to be a common factor in explaining the poverty situation for the two desas.
This implies that the “Government Transfer-Source Income” can be significantly
expected to combat poverty in the country. The important question to be answered
here is that in which desa the variables have greater (important) impacts (direct and
indirect) on the poverty. As clearly depicted in Table 2 (intermediate variables group),
“Government Transfer-Source Income” appears to be a significant common factor in
explaining the poverty situation in two desas. It indicates that the positive impact of
“Government Transfer-Source Income” can be expected to reduce poverty in Compong
and Maddenra. However (in terms of direct impact), Compong receives positive
impact of “Government Transfer-Source Income” slightly higher (β=.167) than its
impact for Maddenra (β =.147).8 This implies that the role of “Government Transfer-
Source Income” in reducing poverty in Compong is more important than Maddenra.
However, specifically (Table 2), the orientation of cocoa production in agricultural
economic activity is strong and directly associated with the poverty in Compong (β=.557), while for coffee, cashew-nut and livestock productions are in Maddenra (β=.674). A major implication of this finding is that encouraging cocoa production in
Compong and coffee, cashew-nut and livestock productions in Maddenra in particular,
can be strongly expected to reduce poverty directly. Put it general ways. The variables
that have the strongest positive impacts or impacts directly in reducing poverty of
smallholders is “Cocoa Production” in Compong and “Coffee, Cashew and Livestock
Productions” in Maddenra. It conveys an important message that the orientation of 8 The intermediate variables don’t have indirect impacts on “Poverty.”
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Muhammad Arsyad, Rahim Darma
agricultural productions in economic activity (agricultural sector in broad sense) is
strong and directly associated with rural poverty phenomenon. This leads us to argue
that even if the agricultural sector is not a single factor to reduce poverty, but the
sector is considerably important in reducing rural poverty directly.
Table 2: Poverty Causes Comparison between Desa Compong and Desa Maddenra by Intermediate Variable
No Intermediate Variable(β weight) on the Poverty
Desa Compong Desa Maddenra1 Coffee and Orange Productions .377 *2 Clove Production and Livestock .195 *3 Cocoa Production .557 *4 Family Transfer-Source Income .258 **5 Government Transfer-Source Income .167 .1476 Coffee, Cashew and Livestock * .6747 Clove and Orange Productions * .2248 Cocoa and Irrigated Paddy Field Productions * .249
Note: * unidentified in the same cluster of variable; **insignificant; shaded area is common causes.
The second important comparison way is focusing on the variable which is
identified to influence poverty in one ‘desa’ (village) but it is unidentified and/or
insignificant for the other desa (the variable Family Transfer-Source Income, for
instance). The defenition of variable Family Transfer-Source Income is household
income from others household members who are working outside the country
especially Malaysia (resulting remittances) and the members who are working
outside the hometown for making money. However, the family transfer-source income
for household in Desa Compong is much more diversity, not only having the members
who work in Malaysia, but also other family members who have different type of
economic activities in hometown (such as be a social/private teacher, craftsman
and extracting rattan from forest, etc) for making money. Unlike Desa Compong,
the family transfer-source income for household in Desa Maddenra is more limited
by having the only remittance and to be farm laborers wage resulting the number
of smallholders who received family transfer-source income in two desas is also
different, as clearly depicted in frequency distribution of Table 3. In the table, it is
obviously that thirty-one out of seventy (44.29%) of smallholder households have
family transfer-source income in Desa Compong, while thirty-four out of eighty-two
(41.47%) in Desa Maddenra. Thus, in terms of percentage of household which have a
family transfer-source income, Compong is higher than Maddenra. This then, enables
“Family Transfer-Source Income (X61m
)” also appears to have an impact (βweight)
on the poverty of smallholders in Maddenra even though it is insignificant. This is a
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Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia?
reason why even though “Family Transfer-Source Income” can be one of the causing
factors of poverty in Compong and Maddenra (since the variable was identified in
two desas), however, the variable has a significant positive impact on Compong’s
smallholders only (β weight =.258 in Table 2). It is important to note that “Family
Transfer-Source Income” was also identified in Maddenra, but insignificant meaning
it still has an impact but insignificant. It doesn’t mean that there is no impact at all.
For this justification, we may say that the variable Family Transfer-Source Income is
also a common factor influences poverty in both Desa Compong and Desa Maddenra,
but the degree of the impacts or impacts are different. This implies that diversity of
family transfer-source income can also be expected to reduce poverty.
Table 3: Frequency Distribution of Family Transfer-Source Income of Cocoa Smallholders in Desa Compong and Desa Maddenra
Family Transfer-Source IncomeDesa Compong Desa Maddenra
Frequency % Frequency %Yes 31 44.29 34 41.47No 39 55.71 48 58.53
Total 70 100.00 82 100.00
The third crucial comparison is that the variables were identified in both
Desa Compong and Desa Maddenra, but the cluster of variable was different. For
example, (see Table 2), it is clearly presented that the variable “Coffee and Orange
Productions” was identified in Compong. However, one substantive question we might
rise is that even though “Coffee” was also identified in Maddenra, but why it was
not clustered with “Orange Production” (as Compong has), rather, it was clustered
with “Cashew and Livestock”. The same thing happens on “Clove Production and
Livestock”. Another crucial question is that why “Cocoa Production” appears alone in
Compong, but it was clustered with “Irrigated Paddy Field Production” in Maddenra.9
Besides comparison of those two desas by the intermediate variables, we will
also compare them by the independent variables group. However, for a variety of
reasons including general policy formulation, we will more focus on common poverty
causes comparison, especially “Cultivated Land Area”, Social Service Utilization”
and “Agriculture & Non-Agriculture Extensions”. It is clearly depicted in Table 4
that the variable Cultivated Land Area with Farm Equipment has, not only a direct
positive impact but also indirect ones. Its direct positive impact influences poverty
in Maddenra ( β =.373, a moderate impact), while for its indirect positive impact
influences the poverty in both Compong (indirect impact of .353) and Maddenra
(indirect impact of .078). A principal implication of this finding is that expanding
9 However, we will not answer these questions in this paper.
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Muhammad Arsyad, Rahim Darma
cultivated land area could be expected moderately to reduce poverty directly in
Maddenra. In addition, it also could be the next route to reduce poverty indirectly
for smallholders in Compong and Maddenra. However, it should be underscored that
its indirect positive impact on the poverty in Compong is four times higher than
Maddenra. This conveys a crucial message that expanding cultivated land area is
more important to consider in reducing poverty in Compong indirectly.10
Table 4: Common Poverty Causes Comparison between Desa Compong and Desa Maddenra by Independent Variables
No Independent Variable(β weight) on the Poverty
Desa Compong Desa MaddenraDirect Indirect Direct Indirect
1Cultivated Land Area with Farm
Equipment- .353 .373 .078
2 Social Service Utilization - -.061 .444 -.040
3Agriculture & Non-Agriculture
Extensions- .288 .276 -.191
Another common poverty causing factor is “Social Service Utilization”. Table 4
shows that the variable Social Service Utilization has a direct positive impact on the
poverty in Desa Maddenra (β=.444). In addition, it also has a negative impact on the
poverty in both Desa Compong (indirect impact of -.061) and Desa Maddenra (indirect
impact of -.040). These are also understandable facts. In Maddenra, social facilities
such as primary public health center (so called PUSKESMAS), junior high school and
public water for cooking are closer to smallholder residence compared to Compong’s
smallholders. For instance, as clearly presented in Table 5, the average of “DISTN_
EDUC2” (distance to the junior high school) in Compong is almost 4 km (Mean=3.57)
with maximum distance of 10 km (Max=10). Meanwhile in Maddenra, its average
distance to the school is less than 2 km (Mean=1.81) with maximum distance of 4
km (almost three times closer than Compong). We can also clearly see that even if
the average of “FRE_HEALT3” (degree of utilization of PUKESMAS) in Compong
(Mean=.27) is slightly higher than Maddenra (Mean=.191), however, Compong still
has a minimum degree of zero (Min=0) meaning there are smallholders who never
used PUSKESMAS in Compong (unlike Maddenra, Min=1). In terms of maximum
frequency, Maddenra has almost three times higher (Max=5) than Compong (Max=2)
indicating that the degree of utilization of PUSKESMAS as primary public health
center in Maddenra is more accessible. This statement can also be supported by
looking at “DISTN_HEALT2” (distance to auxiliary health center, so called PUSTU).
10 Indirect impact explained here is total indirect impact.
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Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia?
PUSTU is obviously unidentified in Maddenra. It is a general phenomenon that
PUSKESMASs in Indonesia are located in the capital city of sub-district (‘kecamatan’)
and/or village (‘desa’), but PUSTUs are located in remote rural area. In this particular
case, Compong is more remote rural area (having PUSTU) compared to Maddenra
which is closer to the capital city of kecamatan (having PUSKESMAS). Therefore, it is
a reasonable result that Maddenra’s smallholders receive the direct positive impacts
of “Social Service Utilization” with β=.444 (see Table 4) due to a closer distance to
those social facilities in general. However, it doesn’t mean that all smallholders have
better access. Frequency distribution shows that Maddenra still has 19% smallholders
who further from those social facilities (say “DISTN_EDUC2”--distance to Junior
High School-- of 4 Km as a maximum value in Table 5). This is a reason why “Social
Service Utilization” has, not only direct positive impact but also negative indirect
impact (even if in a negligible association of -.040) on the poverty in Maddenra.
Table 5: Descriptive Statistics of the Variable FRE_HEALT3, DISTN_HEALT2 and DISTN_EDUC2 in Desa Compong and Desa Maddenra
Desa Compong Desa MaddenraMin Max Mean SD Min Max Mean SD
FRE_HEALT3
(Times/month)0 2 .27 .588 1 5 1.91 .971
DISTN_HEALT2
(Km)0 4 .89 1.149 * * * *
DISTN_EDUC2
(Km).15 10.00 3.57 2.495 1 4 1.81 .873
Note: *unidentified
The last common poverty causing factor (see Table 4), is “Agriculture & Non-
Agriculture Extensions”. It has direct positive impact in increasing household income
meaning reducing poverty in Desa Maddenra (β= .276, a moderate impact). We may
say that the higher the frequency of getting the information of technology/agriculture
extension, non-agriculture jobs information and price information for input-output
in agriculture, the higher the crops productions (agriculture income) as well as non-
agriculture income will be gained, the more total household income will have, meaning
reducing poverty situation. This indicates that “Agriculture & Non-Agriculture
Extensions” can also be expected to be the next important variable in reducing
poverty directly after “Cultivated Land Area with Farm Equipment”.11 The important
implication is that expanding cultivated land area with farm equipment as well as
11 Note as well that this statement based on the positive moderate impacts directly, not across variables.
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Muhammad Arsyad, Rahim Darma
improving agriculture and non-agriculture extension services in Maddenra could be the
next important routes to help smallholders move out of poverty directly. In addition,
the variable Agriculture & Non-Agriculture Extensions also has positive impact in
reducing poverty in Desa Compong, however, in an indirect way (indirect impact of
.288, a moderate impact). The impact of “Agriculture & Non-Agriculture Extensions”
was transmitted to the poverty through the three intermediate variables (“Cocoa
Production”, “Family Transfer-Source Income” and “Government Transfer-Source
Income”) positively, so that the total indirect impact becomes positive (.288). This
implies that by providing agricultural and non-agricultural informations or extensions
in Compong, the poverty of smallholders can also be expected to cope with indirectly.
An interesting point is that the variable Agriculture & Non-Agriculture
Extensions also sends its indirect impact on the poverty in Maddenra, but in
a negative way. It is important to re-note that the variable Agriculture & Non-
Agriculture Extensions transmits its impact through the four intermediate variables
i.e. “Coffee, Cashew and Livestock (indirect impact of -.155)”, “Clove and Orange
Productions (indirect impact of -.045)”, “Cocoa and Irrigated Paddy Field Productions
(indirect impact of .039)” and “Government Transfer-Source Income (indirect impact
of -.030)”. After impacts decomposition, we found that the variable provides a negative
indirect impact (total indirect impact of -.191) to the poverty due to the negative
β weights of three intermediate variables mentioned above. Thus, even though
the variable transmits its impact positively on “Cocoa and Irrigated Paddy Field
Productions” meaning it has positive impact on cocoa and paddy field development
due to a suitable access to information and agricultural technology (properly
transferred and/or effective way in introducing technology by incentive), however,
the variable also sends its impact negatively on “Coffee, Cashew and Livestock”,
“Clove and Orange Productions” and “Government Transfer-Source Income”. In other
words, it has a negative impact on these three variables reducing household income
indirectly (in total indirect impact). This leads us to say that it can not be expected
to reduce poverty in Maddenra through the three intermediate variables mentioned
above. It implies that (beside cocoa and paddy field existing technology), providing
properly technology especially for coffee, cashew and livestock in Maddenra are also
necessary to optimize the role of agricultural technology or extension in alleviating
poverty indirectly.12 This is obviously different from Desa Compong which already
receives indirect positive impact of “Agriculture & Non-Agriculture Extensions”.
12 Indirect impact of “Agriculture and Non-Agriculture Extensions” on the “Poverty” through “Clove and Orange Productions” and “Government Transfer-Source Income” is a negligible association.
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Can Agricultural Economic Activity Strongly Reduce Rural Poverty in Indonesia?
5. Concluding Remarks and Policy Implications
Some principal findings are; (1) the Head Count Index (HCI) of poverty in
Desa Compong reveals that around 34.28% of the cocoa smallholder households
interviewed in Compong have an income/capita is below the National Poverty Line
(NPL). Meanwhile, the Poverty Gap Index (PGI) of the analysis is .10. This indicates
that the average income of poor smallholder households falls short of the NPL.
This situation is different from Desa Maddenra. The HCI in Maddenra is .0731
which means that less than 10% of the cocoa smallholder households interviewed in
Maddenra have an income/capita is below the NPL. In fact, the average income of all
smallholder households interviewed in Maddenra is above the NPL resulting the PGI
of zero, meaning there is no poverty gap in the community. Finally, the indices of PGI
reveal that the depth of poverty is, however, severer in Desa Compong compared to
Desa Maddenra; (2) the degree of poverty situation between Compong and Maddenra
were relatively the same, but they have a differentiation in income structure meaning
poverty causes differentiation; (3) specifically, the orientation of cocoa production
in agricultural economic activity is strong and directly associated with the poverty
in Compong (β =.557), while for coffee, cashew-nut and livestock productions are in
Maddenra ( β =.674). A major implication of this finding is that encouraging cocoa
production in Compong and coffee, cashew-nut and livestock productions in Maddenra
in particular, can be strongly expected to reduce poverty directly meaning that
encouraging agricultural economic activity of smallholders can be strongly expected
to combat rural poverty in the country.
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Muhammad Arsyad, Rahim Darma
References
Arsyad, M. & Y. Kawamura, 2009. A Poverty Causal Model of Cocoa Smallholders in
Indonesia: Some Initial Findings from South Sulawesi. Ryukoku Journal of
Economic Studies, 49 (2):1-27.
Arsyad, M. & S. Yusuf, 2009. Poverty Causes - Cocoa Smallholders Linkages. Ryukoku
Journal of Economic Studies, 49(2):1-27.
Booth, A., 2004. The Changing Importance of Off-Farm Income for Agricultural
Households in Indonesia [in The Indonesian Rural Economy: Mobility, Work
and Enterprise]. Edited by Thomas R. Leinbach. ISAS, Singapore.
Center Research Institute for Estate Crops (CRIEC) & World Bank. 2002. The
Performance Analysis of Cocoa (Report Studies on Smallholder Tree Crops
Production and Poverty Alleviation). CRIEC-World Bank.
Islam, N., 2006. Reducing Rural Poverty in Asia: Challenges and Opportunities for
Microenterprises and Public Employment Schemes. Food Products Press.NY.
Kawamura, Y., 1978. Urbanization, Part-Time Farm Households and Community
Agriculture: Japan’s Experience after World War II. Ph.D. Thesis, Cornell
University.
Kawamura, Y. 2002. Role of Social Statistical Analysis in Participatory Rural
Community Development Programs for Poverty Alleviation; Case of JICA
Project in South Sulawesi, Indonesia. JICA Commissioned Research Report.
Said, A. & A.M. Sallatu, 2004. Incidence of Poverty Causal Model for Sulawesi Region,
Indonesia:A Path Analysis Based on Statistics “Potensi Desa’. Ryukoku
Journal of Economic Studies, 44 (1):27-49
Salam, M., 2006, Poverty Structure in Indonesian Forest Area: A Comparative Study
on Poverty Structural Causal Model of Forest and Non Forest Communities.
Ph. D. Thesis, Ryukoku University, Kyoto.
Sumarto, S. & A. Suryahadi, 2003. The Role of Agricultural Growth in Poverty
Reduction in Indonesia. Paper Prepared for the Roles of Agriculture
International Conference, 20-22 Oct. Agricultural & Development Economic
Division (ESA), FAO, Rome.
Tambunan, T., 2007 (downloaded year). Agricultural and Poverty Reduction in
Indonesia (28 pages). http: [agriculture-poverty_jejaki2.pdf].
Van de Walle, D., 1992. The Distribution of the Benefits from Social Services in
Indonesia, 1978-87. Policy Research Working Papers, Country Economics
Department. The World Bank.
Teshome Temesgen Tilahun**
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1. Introduction1.1. Background
Agriculture sector is the backbone of the Ethiopian economy, making multifaceted
contributions to the development of its economy. The performance of agriculture,
however, in terms of feeding the country’s population, which is growing at about 2.9%
per annum, is poor. According to UNDP (2006) report, over 50% of the Ethiopian
population, of whom the majority reside in rural areas, is food insecure in relation to
the medically recommended daily intake of 2,100
kilocalories per person per day (FAO, 1998). Agriculture is responsible for about
50% of Gross Domestic Product, and over 90% of foreign exchange earnings, and
employing over 85% of the labor force.
Nevertheless, Ethiopia is one of the sub-Sahara African countries suffered a lot
from chronic and transitory food insecurity problems. According to UNDP’s report
(2005), there are 5 million people live under chronic food insecurity in nationwide and
2 million people in Amhara region. In addition, 10 and 2.5 million people live under
transitory food insecure condition in the nation and Amhara region respectively.
The Ministry of Agriculture and Rural Development is trying to combat such food
insecurity problems in the national and regional levels. These include identifi cation
of households under chronic and transitory food insecurity problems; and designation
of food security assurance programs like – supply of agricultural inputs to maximize
Food Security Assessment in Ethiopia, Amhara Region*
* This paper has presented to Amhara Regional State Council, Ethiopia (2007), Bahir Dar, Ethiopia.** The author is a lecturer in Ethiopia, Bahir Dar University, Faculty of Agriculture and Environmental Sciences, Department of Disaster Risk Management and Sustainable Development and now a doctoral student at the Graduate School of Economics, Ryukoku University, Kyoto, Japan.
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Teshome Temesgen Tilahun
agricultural production, capacity building for income diversification in non-
agricultural activities, participation in productive safety net programs, voluntarily
based resettlement programs, and infrastructural fulfillments to enhance disaster
prevention and resilience capacities.
The study is conducted in the eight districts of West Gojam and one district of
South Gondar Administrative Zone, Amhara region, to ensure whether these people
are vulnerable to food insecurity.
1.2. Objectives of the Study
To examine the depth and extent of food insecurity problems of the nine
districts of food insecurity vulnerable peasant administrations.
To compare the food security situations of the nine districts selected peasant
administrations.
To present the result of food security conditions of the nine districts peasant
administrations to the regional council to form decisions for solutions.
To forward short, medium and long term plans to be implemented under
safety net program.
1.3. Signifi cance of the Study
To ensure whether the question of food shortage, repeatedly raised by the
districts and peasant administrations cabinet members is supported by the study, and
helpful to give urgent response for those who are in critical food shortage in the short
term and incorporating them to safety net programs in the long term. Hence, the
study is also helpful to design short, medium and long-term plans of development in
the study areas.
2. Methodology of The Study2.1. Sources of Data
Both primary and secondary sources of information are used as sources of data.
Primary data obtained through structured questionnaire interviewed to sample
households’ in the twenty food shortage vulnerable peasant administrations of
the nine districts. Development agents and elementary school teachers conducted
households’ interview. In addition, focus group discussion based on sex, age, and
land ownership status has taken as the supplement of the households’ interview. In
addition, secondary data obtained from the districts’ report from 2005-2007.
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Food Security Assessment in Ethiopia, Amhara Region
2.2. Sample Selection
The sample peasant administrations are selected based on the offi cial letters and
requests of the district and peasant administration administrators to be included
under safety net program. The sample peasant administrations are selected from the
three Agro-ecological zones (High lands, Plains and Lowlands). In each of the selected
20 peasant administrations, 30 households are selected using systematic random
sampling method from the master list of peasant administrations. The number
of sample peasant administrations selected in each districts is determined by the
particular agro-ecological zones they are experienced. Accordingly, there are three
sample peasant administrations in the two districts (East Estie and Dega Damot) and
two peasant administrations in the rest of the districts.
2.3 Data Analysis Method
The district supervisors and researcher, before data entry have verifi ed the data
obtained from the interview and the districts’ report. Then set to Microsoft Excel
program to be analyzed in the form of frequency and descriptive statistics.
3. Results and Discussion3.1. Household Characteristics
The average number of sample household members’ is 5.68, which is somewhat
larger than the regional average household members (5.2) are. The average lowest
family member is in Gonji Kolela (5.18) and the highest is in Dega Damot (6.15). The
proportion of females’ is 49.33 % and males’ is 50.67 %, and sex ratio is 103 indicating
that the proportion of males is a bit greater than females. When we see the average
sample households’ age distribution, 51.64 % are less than 15 years, 46.69 % are
between 15-64 years, and 1. 67 % are greater than 64 years. This indicates that the
sample households’ younger population is higher than the adult and aged population.
This results in high dependence ratio (1.14). Dependence ratio is higher in East Estie
(174 economically dependent peoples are relied on 100 economically active peoples)
and the lowest is in Yilmana Densa (94 economically inactive peoples are relied on
100 economically active peoples).
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Teshome Temesgen Tilahun
Table 1: Sample Households Sex and Age Distribution
No. Districts
Household Members by Sex (%)
Average Family Members
Sample Household Members by Age (%)
Dependence Ratio
Male Female <15 15-64 >641 Yilmana Densa 50.92 49.08 5.40 46.60 51.54 1.86 0.942 Gonji Kolela 48.87 51.13 5.18 47.91 50.80 1.29 0.973 Mecha 51.37 48.63 6.10 55.46 43.17 1.37 1.324 Dembecha 40.03 51.97 5.93 47.19 51.12 1.69 0.965 Quarit 52.12 47.88 5.88 54.39 44.48 1.13 1.256 Dega Damot 48.24 57.76 6.15 52.30 47.15 0.55 1.127 Sekela 51.58 48.42 5.81 49.57 47.85 2.58 1.098 Jabi Tehinan 51.88 48.12 5.33 48.33 51.25 0.42 0.959 East Estie 51.98 48.02 5.60 59.72 36.51 3.77 1.74
Total 50.67 49.33 5.68 51.64 46.69 1.67 1.14Source: Field Survey, 2007
3.2. Landholding and Wealth Status
The average landholding size of the total sample households is 0.99 hectare. The
lowest average landholding size is 0.81 hectare in Mecha district and the highest is
1.31 hectare in Jabi Tehinan. Landless households account 10.67%. Except Mecha
and Dega Damot, all districts have landless households with different proportions.
However, landlessness is severe in Sekela district (25%) than any other districts. This
clearly indicates that landless segments of population have no chance to produce
cereals using their users’ right and hence highly vulnerable to hunger.
Households are classifi ed as rich, medium, poor, and poorest of the poor according
to the local standards. Accordingly, larger proportion of the poorest of the poor is
recorded in Mecha (37.5%), East Estie (35.69%) and in Gonji Kolela (30%). Basic
variables taken for wealth status classifi cation in descending order are farmland size
and quality, number of animal population, and healthy labor; but in East Estie unlike
other districts, the number of animal population is taken as prior measure of wealth
status.
Agricultural production is the main livelihoods of 89.33 % of the total sample
households and the remaining proportions are used other means of income beside
agricultural production. The average oxen holding are 1.09. This indicates that the
average number of oxen is nearly one, showing how farmers have lost their basic
input for their cultivation.
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Food Security Assessment in Ethiopia, Amhara Region
Table 2: Sample Households Landholding and Wealth Status
No. Districts
LandHoldings (%) Average
Land Holdings
Average Oxen Holdings
Wealth Status of Households (%)
Have Land
Have No Land
Rich Medium PoorPoorest of the Poor
1 Yilmana Densa 95.00 5.00 0.82 1.05 12.50 35.00 31.00 21.50
2 Gonji Kolela 95.00 5.00 1.01 1.18 10.00 30.00 30.00 30.00
3 Mecha 100.00 0.00 0.81 1.08 10.00 22.50 30.00 37.504 Dembecha 95.00 5.00 1.15 1.20 12.50 22.50 42.50 22.505 Quarit 91.67 8.33 0.83 0.60 14.00 26.00 37.50 22.50
6 Dega Damot 100.00 0.00 0.91 1.30 21.66 28.33 28.33 21.66
7 Sekela 75.00 25.00 0.99 0.72 20.00 30.00 30.00 20.00
8 Jabi Tehinan 44.44 15.56 1.31 1.50 16.11 28.89 30.56 24.44
9 East Estie 76.67 23.33 0.96 1.00 9.46 18.88 34.98 35.69Total 89.33 10.67 0.99 1.09
Source: Field Survey, 2007
3.3. Production and Productivity
The district report (2005-2007) indicated that the average per capita production
is 3.91 quintal, but it is 1.45 quintal as calculated and shown below for the study
sample households. The highest per capita production is recorded in Dembecha
district (6.12 quintal) on the base of district’s report from 2005 - 2007; but on the
base of this survey, the highest per capita production is found in Jabi Tehinan (2.37
quintal). Except, Jabi Tehinan district, all the remaining eight districts sample
households indicated that their per capita production is less than or equal to two
quintal. Such problem is severe in Sekela (0.08 quintal) and East Estie (0.55 quintal).
In all the districts, the per capita production of the study areas sample households is
much lower than the per capita production indicated in the report (2005- 2007).
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Teshome Temesgen Tilahun
Figure 1: Comparison Between Districts and Sample Households Per Capita Production Based on Secondary and Primary Data
Source: Field Survey, 2007
Similarly as depicted in table 3, the average production obtained from all districts
sample household respondents is 8.26 quintal. The highest average production among
the study districts sample households is observed in Jabi Tehinan (12.69 quintal)
followed by Yilmana Densa (11.11 quintal). The lowest average production is observed
in East Estie (3.04 quintal), Quarit (5.11 quintal) and Sekela (5.65 quintal).
Table 3: Sample Households Production and Family Members
No Districts Average Production(quintal)
Average Size of Family Members
Average Per Capita Production (quintal)
1 Yilmana Densa 11.11 5.40 2.062 Gonji Kolela 9.77 5.18 1.893 Mecha 7.61 6.10 1.254 Dembecha 8.41 5.93 1.425 Quarit 5.11 5.88 0.876 Dega Damot 10.99 6.15 1.797 Sekela 5.65 5.77 0.988 Jabi Tehinan 12.69 5.36 2.379 East Estie 3.04 5.54 0.55
All Districts 8.26 5.68 1.45Source: Field Survey, 2007
According to the regional Disaster Prevention and Food Security Coordination
Offi ce (2005), a given household member to be regarded as food secured, he / she needs
an annual expenditure of greater than or equal to 769.5 birr (Ethiopian currency).
Of which, 537.00 birr for food, 74.88 birr for clothing, 53.00 birr for education and
communication, 68.00 birr for medication, 8.50 birr for tax, and 28.12 birr for other
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Food Security Assessment in Ethiopia, Amhara Region
non-food expenditures.
This study indicates that except Gonji Kolela and Jabi Tehinan districts, all
have shown that the birr value of per capita production is much lower than even to
the minimum food expenditure alone (537.00 birr). This entails that there is food
insecurity problems in all districts with different degree.
Figure 2: Households’ Annual Regional Minimum Expenditure Standard and Sample Households Per Capita Income in Birr
Source: Field Survey, 2007
Figure 3: Land Productivity ( Quintal Per Hectare)
Source: Field Survey, 2007
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Teshome Temesgen Tilahun
In the above graph, it is shown that in all of the districts sample households,
productivity is less than the national average (13.39 quintal per hectare) and regional
average productivity (12.01 quintal per hectare), except Dega Damot (13.28 quintal
per hectare), which has greater productivity than the regional level but lower than
the national level. Even the average of all the sample household districts productivity
(6.88 quintal per hectare) is less than the regional average productivity (12.01 quintal
per hectare). Such low productivity is especially depicted in East Estie (3.11 quintal
per hectare) and Quarit (5.88 quintal per hectare).
3.4. Households Food Gap Condition
Of all districts, only 12% sample households have covered their annual food
demand by their own production. The remaining 88% are unable to cover their annual
food consumption by their own production. Especially in Quarit district, all sample
households are found unable to cover their annual food consumption by their own
production. In all districts, there are very small proportion of the sample households
who can cover their annual food consumption with their own production in Sekela
(3.39%, East Estie (4.55%), and Mecha (5%).
Table 4: Sample Households Who Can and Cannot Cover Their Annual Food Consumption (%)
No. Districts Cover Annual Food Consumption
Cannot Cover Annual Food Consumption
1 Yilmana Densa 18.60 81.402 Gonji Kolela 30.00 70.003 Mecha 5.00 95.004 Dembecha 16.70 83.305 Quarit 0.00 100.006 Dega Damot 13.60 86.407 Sekela 3.39 96.608 Jabi Tehinan 17.00 83.009 East Estie 4.55 95.50
All Districts 12.00 88.00 Source: Field Survey, 2007
Furthermore, as shown in table 5 in those districts that are highly exposed to food
shortage in the preceding tables and graphs, have also shown similar characters in
terms of their food gap in different classifi cations of months. In these districts, namely,
Quarit, East Estie, Sekela and Mecha, have 5-20% of the population who could cover
their food consumption only from 1-3 months and conversely the proportion of their
population who could cover food consumption by their own production from 10-12
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Food Security Assessment in Ethiopia, Amhara Region
months is smaller than the rest of the districts. However, it does not mean that the
rest of the districts sample households are in a better situation to cover their annual
food consumption. Still there are large segments of population who could not cover
their annual food consumption as shown below.
Relatively speaking, Jabi Tehinan and Dega Damot districts sample households
are better than others in covering their annual food consumption by their own
production. In the nine districts, the percentage of sample households who could cover
their annual food consumption by their own production is only 29.6 %. This indicates
that larger proportions (more than 70 %) of the sample households are unable to cover
their annual food consumption by their own production.
Table 5: Sample Households Food Consumption Coverage by Their Own Production (%)No. Districts 1-3 Months 4-6 Months 7-9 Months 10-12 Months1 Yilmana Densa 0.00 18.30 50.00 31.702 Gonji Kolela 1.70 3.30 33.30 61.703 Mecha 5.00 36.70 41.70 16.704 Dembecha 3.30 20.00 48.30 28.305 Quarit 20.00 33.30 35.00 11.706 Dega Damot 0.00 5.00 50.00 45.007 Sekela 10.00 25.00 46.70 16.708 Jabi Tehinan 2.20 10.00 35.60 52.209 East Estie 16.00 53.30 25.60 3.30
All Districts 6.70 23.80 39.90 29.60Source: Field Survey, 2007
3.5. Contribution of Extension Package
It is shown that households under extension package earn better per capita
production (1.80 quintal or 407.27 in birr) than who are not under extension package
(1.40 quintal or 293.35 in birr). In terms of food consumption coverage, those under
extension package on the average could cover 8.6 months, where as those who are not
could cover only 7.6 months. However, with regard to the average number of family
size, extension users (6.4) have more family size than the non-extension users (5.3).
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Teshome Temesgen Tilahun
Figure 4: Extension Package Users and Non-users Family Members, Per Capita Production, and Number of Food Self-Suffi ciency Months
Source: Field Survey, 2007
3.6. Causes of Food Shortage
Low and erratic rainfall, , high population pressure, serious land degradation, ,
insect pests, , fall of ice before harvest; and less participation and practice of extension
packages in descending rank are identifi ed as the major causes for poor production
and productivity which eventually led to food deficit. These causes are identified
mainly by focus group discussants in each of the sample peasant administrations.
3.7. Food Shortage Indicators
Huge out flow of population/ out migration, hunger and misery, reduction and
disappearance of water sources, illiteracy and high level of school dropout, , confl ict on
resources, and incapability to purchase modern agricultural inputs are the common
food shortages indicators in the districts peasant administrations..
3.8. Food Shortage Coping Strategies
When people faced food shortage, they used different coping strategies to skip
from such situation and transit to a better tomorrow. Among the various methods of
coping strategies temporary migration, reduction of food quantity, skip-eating times,
selling domestic animals, credit from private lenders, and child labor are the common
coping strategies practiced by the local peoples to withstand food shortage.
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Food Security Assessment in Ethiopia, Amhara Region
3.9. Strength, Weakness, Opportunities and Threats (SWOT) Analysis
A. Strength
Availability of huge economically active labor force; commitment of the society
to relieve from such better life; commitment of the regional government to solve
such critical problems; and acceptance of the society to the newly started extension
packages are among the strengths of the sample households’ that are helpful to
combat the present bitter situation and bring better tomorrow.
B. Weakness
Due to the remoteness of the studied peasant administrations from the center
of the district capital, development agents and district officers, even peasant
administrators did not go there and give professional advices and administration
to the local society. In addition, the presence of weak family planning service
mobilization and the attention given to these districts by the regional government is
too low on account that these areas are wet areas expected for surplus production.
Unavailability of agricultural experts in the districts and peasant administration
levels with poor credit access/facility are some of the major weaknesses aggravated
the existing food shortage problems in the sample districts sample households.
Furthermore, in some districts (Dega Damot and Dembecha) they have potential idle
communal land, but still there are landless peasants.
C. Opportunities
Comfortable climate for crop production and animal husbandry; presence of
economically active labor force; ambition to accept and adapt new technologies and
new systems of production; availability of potential land are the major opportunities
in the sample districts.
D. Threats
If the torrential ice mixed and erratic rainfall, usually happened in autumn
season, continuous in the future, resilience would be very difficult. Furthermore,
confl icts between landless and land users due to land resource misallocation may lead
to big socia
4. Conclusion
There is serious food shortage in all of the nine districts with different degree.
In all districts production, productivity, per capita production and other food related
parameters are very low as compared to the regional and national standards. There
are smaller proportions of the sample population that could cover their annual food
- 74-
Teshome Temesgen Tilahun
consumption. With this respect, especial attention and priority is important for
East Estie, Quarit, Sekela and Mecha district vulnerable peasant administrations
without which loss of life due to hunger would be immense as it has already started.
Thus, particularly in East Eastie and Sekela districts emergency food aid would
be an indispensible action. In fact, the districts’ reports in all districts showed that
there is better food production. Hence, these food shortage vulnerable districts are
superimposed by the surplus producers of other peasant administrations within each
districts. Thus, it is difficult to see the clear picture of these districts food security
problem as it is hiding by those surplus producers.
There are large numbers of landless peasants (25% in East Estie and 30% in
Jabi Tehinan). Natural disasters like frequent drought; limited extension packages
participation; limited use of agricultural inputs and credit accesses have all
contributed their own behalf to aggravate the problems of food insecurity and made
the society more vulnerable.
5. Recommendations
Short Term
Redistribution of surplus potential lands for those landless peoples.
Mobilize employment generating schemes like natural resources protection,
infrastructural construction under safety net program for those who are
able to work, and offering aid for those who cannot work to save their life for
a better tomorrow by fi lling their food gap.
Strengthen the commenced extension packages (minimum and special
packages).
Provide professional support to farmers on water and soil conservation
methods.
Arrange credit service facilities; and especial attention should be given
for those who do not have guarantee to lend money from private and
governmental lenders, so that they can participate in agricultural and non-
agricultural activities.
Emergency food aid is required for children, poor health and aged peoples in
East Eastie and Sekela.
Mobilize the young to participate in forest development on communal
mountainous lands.
In East Eastie, land is totally degraded and hence diffi cult to rehabilitate
- 75-
Food Security Assessment in Ethiopia, Amhara Region
easily within short time such that resettlement program shall be arranged.
Medium and Long Term
In the medium and long term: implementation of family planning service; supply
of agricultural inputs with appropriate price and variety; taking detail studies on
irrigation schemes on water potential areas; implementation of diversifi ed livelihood
approach are recommended to the study areas.
References
Amhara National Regional State ((1998) Food Security Evaluation in Amhara Region,
Bahir Dar, Ethiopia.
Amhara National Regional State Districts’ Report (2005-2007) Districts’ Agriculture
and Rural Development Yearly Report, Bahir Dar, Ethiopia.
Amhara National Regional State (2005) Food Security Assessment in Amhara Region,
Bahir Dar、Ethiopia.
Food and Agricultural Organization (FAO) (1998) Crop and Food Supply Assessment
Mission to Ethiopia. FAO Global Information and Early Warning System on
Food and Agriculture, Rome, Italy.
IMF (2005) Poverty Reduction Strategy Paper Joint Staff Assessment in Ethiopia,
Addis Ababa, Ethiopia.
UNDP (2005) Food Security Report in Ethiopia, Addis Ababa, Ethiopia.
UNDP (2006) The Patterns of Food Intake and Households’ Expenditure in Rural
Ethiopia, Addis Ababa, Ethiopia.
Busige Nishantha
- 77-
1. Introduction
Small and Medium Enterprises (SMEs) play a crucial role in contributing
to overall industrial production, employment generation and poverty reduction
in developing countries (Arinaitwe, 2006). This paper attempts to discuss the
contribution of SMEs to economic development in post- war Sri Lanka and the
possibilities for promoting the SME sector. At the same time, the study attempts to
explore the prevailing challenges that have limited the growth of the SME sector and
fi nally, try to come up with some policy recommendations. During past three decades,
the Northern and Eastern Provinces of Sri Lanka were cut off from the development
process by the continuous civil war.
The war was costly to the nation, as it was financed through increased taxes
and interest rates, leading to a diversion of developmental resources away from
economic sectors, private sector inclusive. Subsequently, the war diverted funds and
attention from building the infrastructure which industries rely on; such as transport,
electricity, water and telecommunication. In the afterthought of the three –decade
civil war, the Sri Lankan government has given more priority to rebuilding Sri Lanka
in order to achieve a higher economic growth. More specifically, the government
targets to achieve a balanced development in all parts of the country including
Northern and eastern Provinces. The government is currently implementing massive
infrastructure development programs side by side with the resettlement of Internally
Displaced People (IDPs). The opportunities for the private sector in post confl ict Sri
A Study of Small and Medium Enterprises in Sri Lanka
* Busige Nishantha is a Faculty Member at the Department of Management & Organization Studies of the University of Colombo, Sri Lanka and a doctoral student at the Graduate School of Economics, Ryukoku University, Kyoto, Japan [nishantha@fmf.cmb.ac.lk].
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Busige Nishantha
Lanka will range from the opening of the vast areas of fertile land, accessibility to
two thirds of Sri Lanka’s coastal line, and ocean resources, including some of the best
natural beaches (eg. Nilaveli, Pasikuda) and tourism potential in the world. SMEs
offer the best prospects for putting people back to work, generating incomes and
contributing to the rebuilding of society.
According to the Central Bank of Sri Lanka (1998), the cottage and Small Scale
industries sector plays an important role in economic development through creation of
employment opportunities, the mobilization of domestic savings, poverty alleviation,
income distribution, regional development, training of workers and entrepreneurs,
creating an economic environment in which large firms flourish and contributing
to export earnings on one hand. On the other hand, SMEs do not exist in isolation
from the rest of the economy, since they are integral of the supply chains; with large
enterprises, as suppliers, customers, or complementary producers.
1.2. Methodology
The current situations of the SMEs are analyzed by using data of latest industrial
surveys of Sri Lanka. The Department of Census and Statistics conducted industrial
surveys in 2007. In addition to this, various other data sources such as Central bank
of Sri Lanka, Ministry of rehabilitation Reconstruction & Refugees are used.
2. Sri Lanka in The Beginning of Post War Period at Glance
Sri Lanka is a tiny Island with a total land area of 65,610 square kilometers
(See fi gure 1) and a multi-racial country which has total population of 20.2 million.
According to the Asian Development Bank (2008), Sri Lanka is becoming a middle-
income country and on track to achieve the Millennium Development Goal (MDG) on
poverty reduction. The country is also on track to achieving most other MDGs, as its
social indicators are high compared with those of countries of similar income status.
However, the civil strife that prevented Sri Lanka from exploiting its full potential
and benefiting from its proximity to India, just as Hong Kong profits from being a
trade hub to China. The current Sri Lankan government broad economic strategy is
outlined as “Mahinda Chinthanaya” ( Mahinda’s thought) , which guides government
economic policy; is focused on poverty alleviation and steering investment to
disadvantaged areas. Developing the SMEs; promoting the agricultural sector and
expanding the already enormous civil service are sum of the steps being taken. As
shown in the table 2, though most of the social indicators of Sri Lanka prevail in
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A Study of Small and Medium Enterprises in Sri Lanka
satisfactory level, economic indicators are still in lower positions. Both export and
remittance have declined in recent times due to global economic crisis. The rising
oil prices and the thirty years conflict have contributed to Sri Lanka’s high public
debt load (86% of GDP in 2007). Sri Lanka needs economic growth of 7% - 8% and
investment levels of about 30 % of GDP for a sustainable reduction in unemployment
and poverty. In the past 10 years, investment levels have averaged around 25% of
GDP. The future of Sri Lanka’s economy primarily depends on its political stability;
return to permanent peace, and continual policy reforms, particularly fi scal discipline
and budget management.
Table 1: General Socio-economic Indicators of Sri Lanka Figure 1: Map of Sri Lanka Indicator Value
Mid-year Population(‘000) in 2008Population growth ratePer capita GDPGDP GrowthInfl ation ratePercentage of poor households (2006/2007)National savings (percent of GDP)Literacy rate (average / 2006)Human Development Index (2006)Unemployment rate(percent of labor force)Total external debt and liabilities (Percent of GDP)
20,2161.02014 (US$)6.022.615.2
18.290.80.742
5.2
51.0
Source : www.mapsofworld.com Source: Central Bank of Sri Lanka (2008)
2.1. Industrial Potentials in confl ict-affected Areas
Northern and Eastern Provinces were the most conflict affected areas and
comprise an area of 18,640 square kilo-metres (28 percent) of the total area of Sri
Lanka. The Eastern Province (EP) comprises 15% of the land area of the country, 25%
of the coastal belt, 8% of the population and 35% of the fi sheries population. The total
land area is 9,361 sq km, inland waters 635 sq km with a total of 9,996 sq km or 15%
of Sri Lanka. EP consist with three districts; Ampara, Batticaloa, and Trincomalee.
This province contributes 4.8 percent to Gross Domestic Products (2008). In the past
Eastern Province produced large quantities of marketable surpluses of paddy, and the
eastern rice producing area was recognized as the granary of the country.
- 80-
Busige Nishantha
Table 2: Potential Industries for Northern Province of Sri Lanka
Resource Potential IndustryLimestone Cement and limekilnLivestock Processed milk,yoghurt,ice cream,dairy & poultry farm,bio
gas, and manufacture of compost manureMarine resources Fish,dry fish,manufacture of fishing gear,ice plants,boat
building, and processing of lobsters for exports.Palmyrah Bott l ing o f toddy & sweet toddy,Jaggery & pa lm
suger,distilling arrack,odiel fl our,fi ber and fi ber products, mat
weaving, and palmyrah leaves productsFruits and vegetables Fruit processing,jams,cordials,savouries,pickles,dehydrated
fruits & vegitablesCoconut Coconut oil,soap,animal fodder, charcoal,fi bre & coir productsPaddy & rice Rice milling ,rice fl ourChillies Sauces & powdertobacco Cigars and cigarettesclay PotterySource: Ministry of rehabilitation Reconstruction & Refugees, Jaffna Plan 2003
There is a potential for lucrative agri-businesses. In addition, EP consists with
number of natural resources from fi sheries to minerals. It also consists with multiple
ports including famous natural port called “Trincomalee harbor” and some of the best
beaches in the country. According to (Sarvananthan, 2007) EP could become industrial
economy and tourist center in the long run.
Northern Province (NP) consist of 4 districts: Jaffna, Kilinochchi , Mullaitivu ,
mannar and Vavuniya. Crop agriculture (red onion, chilli, potato and tobacco), livestock
farms (meat, milk and egg production), and fi sheries are the major economic activities in
the NP. Table 3 shows the potential industries suited for Northern Province, especially for
Jaffna district based on the resources endowments and comparative advantages.
3. Review of Overall Performance in Small and Medium Enterprise Sector
SMEs are defi ned in a variety of ways by various countries using such parameters
such as number of persons employed, amount of capital invested, amount of turnover
or nature of the business, etc. not only different countries apply different defi nitions on
the concept of SMEs, even within countries, different regions and different institutions
adopt varying defi nitions in this regard. In Sri Lanka , there is no clear defi nition for
SMEs. Different government agencies and other organizations use different criteria
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A Study of Small and Medium Enterprises in Sri Lanka
to identify SMEs. Among these criteria are the number of employees, the size of fi xed
investment, energy consumption, and the nature of the business and the sector,( i.e.
formal or informal), in which the industry operates. As shown in table 1 most of the
organizations have defi ned small enterprises with reference to the number of employees
and amount of fi xed capital. According to their defi nitions, the ceiling on employment
and fi xed capital used are respectively 50 employees and Rs 20 million excluding land
building and permanent working capital. SMEs encompass establishments operating in
agriculture, mining, manufacturing, constructions and service sectors. They have been
identifi ed to play a crucial role in the economic development process by developed as
well as developing countries. They are even more important to developing countries as
the poverty and unemployment are crucial problems in these economies.
Table 3: Different Defi nitions of Small Enterprise used in Sri LankaInstitution Defi nitionIndustrial Development
Board (IDB)
(a) Fixed assets excluding land , building and permanent
working capital not exceeding Rs.4 million.
(b)Number of employees less than 50The Department of Small
Industries (DSI)
(a)Capital investment less than Rs.5 million
(b)Number of employees less than 50
Export Development Board
(EDB)
(a) Capital investment less than Rs. 20 million in
plant machinery and equipment excluding land
and buildings and an annual export turnover not
exceeding Rs. 40 million and total annual turnover
not exceeding Rs. 100 million.The National Development
Bank (NDB)
(a) Capital investment less than Rs. 20 million excluding
land and buildings.Source : Author
According to the industrial census conducted by the Department of Census and
Statistics in 1983, there were a total of 102,721 formal registered and unregistered
informal industrial units in the country producing various types of products
and employing 639256 persons. The survey findings indicated that industrial
establishments below 5 employees accounted for 84% of the total establishments
and 28% of total employment, but accounted for only 7.5% of the total output and
7.0% of the value added in the industrial sector. Enterprises having over 5 employees
represented less than 15.7% of all establishments, but accounted for 92.5% of the
output and 71.6% of total employment (Central Bank of Sri Lanka, 1998).
All the existing data sources lack accuracy and complete coverage of the
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Busige Nishantha
‘enterprise sector’ in spite of various government and semi government institutions
engaged in compiling SME related data bases. The Department of Census and
Statistics has been conducting annual industrial surveys, it has not covered the
establishments with less than 5 persons engaged, due to the fi nancial limitations and
non availability of a proper frame. The most recently conducted industrial survey
dates back to 2007.
Table 4: Overview of Sri Lankan Manufacturing Sector Classifi ed by Industrial Size in 2006Industrial Size Industrial
EstablishmentsIndustrial Employment
T o t a l Va l u e -Added
Total Output
Micro EnterprisesSmall EnterprisesMedium Enterprises
No. % No. % Million Rs
% Million Rs
%
Total SMEsLarge EnterprisesTotal
59248589348918002291820920
28.3241.0616.6786.0513.95100
416391596022221734234149650771388491
3.0011.5016.0030.5069.50100
9382719861590192403878578161098203
0.856.5614.4821.8978.11100
2032614198542991659222719030752495302
0.815.6917.2323.7376.27100
Source: Author’s calculation based on Industrial Census 2007, Sri Lanka
The data provided by this survey provides a good frame for analyzing the
contribution of SMEs to the national economy in Sri Lanka in terms of employment
generation, value of output and value addition. For the purpose of present analysis,
we categorized very small or micro enterprises were those enterprises employing
between 5-10 people, small 10-39 people, medium 40-99 people and large 100 or more.
As shown in table 2, in 2006, micro enterprises accounted for 28 percent of the total
number of enterprises but contributed to only 3 percent of total employment in the
manufacturing sector, about 1 percent of total value added and 1 percent of total
output. Small enterprises which had a work force of 10-39 employees accounted for 41
percent of total number of establishments in the manufacturing sector. Small fi rms
accounted for 11 percent of industrial employment, 6.5 percent of total value-added
and 5.6 percent total output. Medium sized firms which had a workforce of 40-99
employees accounted for 16 percent of the total number of industrial establishments
accounted for 16 percent of total employment, 14 percent of total value-added and
17 percent of total output. It reveals that medium sized establishments are much
better than micro and small enterprises in terms of employments generation and
value addition. All the industrial establishments, which have employed less than
100 employees, can be categorized as small and medium enterprises (SMEs). They
- 83-
A Study of Small and Medium Enterprises in Sri Lanka
accounted for 86 percent of total number of industrial establishments but only 30
percent of total employment, 21.8 percent of total value-added and 23.7 percent of
total industrial output. As for large fi rms which employed more than 100 employees,
while accounting for 13.9 percent of total number of establishments, they contributed
to 69.5 percent of total employment, 78 percent of total value-added and 76.2 percent
total output. It revealed that SMEs are providing more employment opportunities but
their contribution for output is relatively low.
3.1. Types of Industries, Factor Proportion and Factor productivity of SMEs
with Comparison to Large Businesses
Table 3 shows the results of the calculation of capital-labour ratio, labour productivity
and capital productivity by industries. Firstly, results found that capital intensity is
exceptionally low in nearly all industries under SMEs, except for paper products and basic
metal industry. Such low capital- labour ratio in small and medium enterprises shows that
most tend to use higher proportion of labour relative to capital inputs. Considering Sri
Lanka as country which lacks capital but has abundant labour resources, the high intensity
of labour usage relative to capital implies a relatively more effi cient usage of scarce resources
in the country. It also implies that Sri Lankan SMEs tend to utilize more labour for a
given amount of capital relative to large enterprises. It also implies that SMEs potential in
contributing to employment generation in industries as long as they have an equal access to
capital. Another signifi cant result is that, small fi rms (10-39 employees) have relatively high
capital – labour ratio than micro and medium sized firms. Secondly, labour productivity
was compared with the different size of fi rms. Labour productivity of micro enterprises are
relatively low compare with the small medium and large enterprises. Small enterprises
which are producing wood and wood products are achieving higher labour productivity than
other sizes of fi rms. In some industries such as non metallic mineral products, and basic
metals , medium size enterprises are achieving higher labour productivity than other sizes
of fi rms. In average, labour productivity of large enterprises is greater than SMEs. Overall,
medium size fi rms achieving better labor productivities than small and micro fi rms. Thirdly,
we compared the capital productivity of different size of fi rms by different industries. There
is no clear pattern. In some industries such as textile, apparel, leather, non metallic mineral
products, metal products and machines and equipments, micro enterprises getting grater
capital productivity than small , medium and large fi rms. Medium size fi rms are reaching
higher capital productivity in food, beverage, tobacco, chemical, petroleum, rubber and
plastic industries. When comparing the all industries, relatively higher capital productivity
is achieving by medium size enterprises than micro, small and large enterprises.
- 84-
Busige Nishantha
Tab
le 5
: Fa
ctor
Pro
por
tion
an
d F
act
or p
rod
uct
ivit
y of
Dif
fere
nt
Siz
e of
In
du
stri
esF
act
or P
rop
orti
on a
nd
Fa
ctor
pro
du
ctiv
ity
of D
iffe
ren
t S
ize
of I
nd
ust
ries
Typ
e of
In
du
stry
Typ
e of
In
du
stry
Cap
ital
-lab
or R
atio
Cap
ital
-lab
or R
atio
Lab
or P
rod
uct
ivit
yL
abor
Pro
du
ctiv
ity2
Cap
ital
Pro
du
ctiv
ity
Cap
ital
Pro
du
ctiv
ity2
Mic
roM
icro
Sm
all
Sm
all
Med
ium
Med
ium
Lar
geL
arge
Mic
roM
icro
Sm
all
Sm
all
Med
ium
Med
ium
larg
ela
rge
Mic
roM
icro
Sm
all
Sm
all
Med
ium
Med
ium
Lar
geL
arge
Foo
d, B
ever
age
& T
obac
coT
exti
le, A
ppar
el &
Lea
ther
Woo
d, &
woo
d pr
odu
cts
Pap
er p
rodu
cts,
pri
nti
ng
& p
ubl
ish
ing
Ch
emic
als,
Pet
role
um
, ru
bber
& p
last
icN
on –
met
alli
c M
iner
al p
rodu
cts
Bas
ic M
etal
Met
al P
rodu
cts,
Mac
hin
es &
Equ
ipm
ents
Oth
er M
anu
fact
uri
ng
All
In
dust
ry
81.0
3.19
5.32
96.2
912
.90
1.95 -
0.75
0.52
22.0
8
95.6
625
.60
10.2
478
.01
32.0
761
.35
-7.
4914
.71
46.7
0
17.4
611
.78
24.6
9
134.
91
46.4
8
17.5
894
5.17
29.9
586
.04
40.5
2
58.1
941
.55
56.5
6
88.1
6
136.
04
74.0
353
.81
23.1
82.
9855
.69
436.
9386
.16
139.
75
384.
23
243.
63
270.
6336
5.19
132.
0423
7.49
225.
32
1076
.18
108.
1643
2.69
197.
48
453.
77
222.
7914
3.59
254.
3616
4.65
451.
04
979.
3925
6.63
293.
72
337.
44
2100
.53
558.
9518
71.7
0
164.
8513
1.80
715.
75
1091
.77
591.
2425
2.91
1146
.75
2214
.02
465.
5716
33.9
3
268.
7113
64.6
388
8.86
5.39
27.0
326
.25
3.99
18.8
9
138.
75 -
175.
4145
3.87
10.2
0
11.2
54.
2242
.24
2.53
14.1
5
3.63 -
33.9
411
.19
9.66
56.0
921
.79
11.9
0
2.50
45.1
9
31.8
01.
98
5.50
1.53
17.6
6
18.7
614
.23
4.47
13.0
1
16.2
7
6.29
30.3
7
11.5
945
8.62
15.9
6
Sou
rce:
Au
thor
’ s c
alcu
lati
on b
ased
on
In
dust
rial
Cen
sus
2007
, Sri
Lan
ka
2)
Th
e tw
o in
dexe
s of
pro
duct
ivit
y u
sed
in t
his
stu
dy a
re l
abou
r an
d ca
pita
l pr
odu
ctiv
ity
(Ado
pted
fro
m D
ias,
Sri
yan
i, F
acto
rs A
ffec
tin
g th
e P
rod
uct
ivit
y of
Man
ufa
ctu
rin
g S
ecto
r
in S
ri L
anka
: A S
pati
al A
nal
ysis
, Geo
Jou
rnal
, 199
1,23
(2),
113-
120.
Pro
duct
ivit
y of
Lab
our
(PL
) =
V
alu
e A
dded
P
rodu
ctiv
ity
of C
apit
al (
Pc)
=
Val
ue
Add
ed
N
um
ber
of E
mpl
oyee
s G
ross
add
itio
n t
o fi
xed
asse
ts.
- 85-
A Study of Small and Medium Enterprises in Sri Lanka
3.2. Geographical Concentration of Manufacturing Industries
Table 6 shows the geographical distribution of industries in Sri Lanka. Small
scale enterprises are concentrated in the Western province based districts of
Colombo (13%) and Gampaha (15%) and North-Western Province based district of
Kurunagala (14%). Medium and large scale industries are concentrated mainly in
Western Province based districts of Colombo (28%) and Gampaha (24%). In the case
of employment generation in small scale industries Gampaha (16%), Colombo (15%)
and Kurunagala (14%) are the main districts.
Table 6: Geographical Concentration of Industries Geographical Concentration of Industries
DistrictDistrict
Establishments less than 25Establishments less than 25 employees employees
Establishments more than 25 Establishments more than 25 employeesemployees
No. ofNo. of Establishments Establishments Persons engagedPersons engaged No. ofNo. of
Establishments Establishments Persons engagedPersons engaged
Colombo 1,633 20,195 2,413 365,388Gampaha 1,900 20,914 2,023 370,100Kalutara 649 6,574 619 70,174Kandy 1,114 12,581 517 62,291Matale 267 2,878 104 16,901Nuwara-Eliya 151 1,450 210 32,510Galle 679 6,406 356 48,566Matra 429 4,041 200 17,982Hanbantota 230 3,139 62 12,669Mannar 9 51 1 60Vavuniya 44 425 18 702Mullaitivu 77 462 3 87Batticaloa 307 3491 - -Ampara 401 3,370 79 12,287Trincomalee 18 149 39 1,053Kurunegala 1,716 18,236 557 46,553Puttalam 1,317 14,669 287 28,442Anuradhapura 343 3,731 60 9,479Polonnaruwa 195 2,461 77 5,479Badulla 171 1471 239 19,800Monaragala 116 1340 22 7,038Ratnapura 209 2197 456 103,392Kegalle 392 4505 211 22,803Total 12,368 134,735 8,551 1,253,756
Source: Author’s calculation based on Industrial Census 2007, Sri Lanka
Medium and large enterprises are also mainly generating employment in the
Western Province based districts of Gampaha (30%) and Colombo (29%). This clearly
shows the heavy concentration of SMEs in Western Province of Sri Lanka. The shaded
areas of the table 6 shows the data related to some conflict affected districts. Few
numbers of establishments (7%) are only operating in these six districts. they have
generated only 4 percent of employments in the manufacturing sector.
- 86-
Busige Nishantha
4. Oppetunities Associated with the Development of the SME Sector in Sri Lanka
In post war period, Sri Lanka has to rethink about its future prospects. There
are multi-faceted opportunities prevailing in the SME sector. Firstly, development
of SME sector can be used to promote balanced regional development. Due to the
war situation, in the past few decades, major commercial activities were more
scattered in urban areas, especially the western province of the country. With regard
to the overall industries by the end of the year 2006, 80 Percent of the registered
industries were located in Colombo district and Gampaha district (next to Colombo
district). According to the World Bank (2009), with the gradual resettlement of the
displaced people and restoration of their livelihoods, agriculture and SME production
is expected to pick up. At the same time, regional demand will be created for SME
products. Secondly, with further improvement in the overall investment climate,
foreign direct investment is expected to continue flowing in to the country. More
investment opportunities are emerging in following areas; precious and semi-precious
stone mining, fi sheries, organic agriculture in large scale, wind and solar energy, oil
and gas exploration, Eco-tourism ect . Then SMEs can play a complimentary role to
large industries through subcontracting, thus facilitating the linkage between the
formal and the informal sector. Thirdly, there is a high possibility to creating a strong
backward linkage between SMEs and agricultural sector. Many inputs in to the
SME production are based on agricultural and forestry products (Arsyad, 2009). As
a result of such linkages SME manufactures will be much less import intensive than
large businesses. The North and east parts of the country have more agricultural
land. Before the civil war the region’s agricultural production compared favorably
with that of other parts of the country, mainly rice, vegetables, fruit, and other cash
crops. SMEs can add value for those primary products and market to the other
parts of the country and export markets. Fourthly, there are large deposits of silica
sand and normal construction sand available in Northern Province which can be
used in manufacturing of glass products. Fifthly, The SMEs can be started with low
investments, mainly from personal savings or informal borrowings. Therefore, the
sector contributes to broad –based capital formation throughout the economy. Sixth,
as discussed in earlier section, SMEs especially medium sized firms absorb more
labour per unit of capital employed implying that; by promoting this sector large huge
employment opportunities can be created in the informal sector.
- 87-
A Study of Small and Medium Enterprises in Sri Lanka
5. Constraints Associated with Development of SMEs
Development of the SME sector in Sri Lanka is constrained by number of factors.
According to the white paper (2002) prepared by Task Force for Small and Medium
Enterprise Sector Development Programme, has identifi ed the major constraints that
critical for the SME development in Sri Lanka. In addition to that, multilateral and
bilateral agencies such as USAID, world bank,JICA,ADB,UNIDO have carried out
number of studies on problems of SMEs in Sri Lanka.
The lack of a comprehensive framework in terms of policies toward SMEs
development is one of the most important factors that constraint the growth and
development of SMEs. There is no national policy for industrial development of the
country and the policies are changing with government changes.
Access to suffi cient fi nance is also a major problem faced by SMEs due to lack of
access to bank facilities, lack of regional spread of loans, lack of knowledge of bank
facilities, lack of knowledge of bank procedures, and inability to provide collateral.
Lending institutions are expecting land based collateral but most of the SME owners
do not their own lands.
The use of low level of technology and absence of technical and managerial skills
has also been identifi ed as important constraints affecting the development of SME.
With low level of technology it is diffi cult to maintain higher productivity and quality,
resulting in higher costs of production and a reduction in market competitiveness.
The lack of adequate infrastructure facilities also hampers the progress of
this sector. The prosperity of enterprises is dependent on the availability of key
infrastructure services such as electricity, water, telephones and road access.
6. Conclusion and Policy Recommendation
The purpose of this article was to examine the current situation of the SME
sector in Sri Lanka after thirty decades civil war, and explore the opportunities and
challenges prevail for developing a healthy SME sector. Available secondary data and
extensive literature indicates that 86 percent of the industrial enterprises belonged
to the SME category and they play a vital role in the economy and are a major source
of various economic contributions. The study revealed that medium sized firms
(employees between 40 -99) have been gaining relatively higher productivity and
their contribution for value addition, total output and employment generation is also
better than micro and small fi rms. There is a huge potential for this sector to prosper
- 88-
Busige Nishantha
in war affected areas given the high level of human capital and natural resource
endowments.
Having identified some of the challenges and opportunities associated with
SMEs it is possible to present some strategies that the government and the agencies
responsible for development of the SMEs in Sri Lanka.
First, the government has to take measures to formulate national policy for
SMEs as an integral part of the overall industrialization policy. Without such policy
frame work, it is difficult to develop this sector. Given the, non -diversification of
the industrial structure and its heavy concentration in the few low value added
industry categories is a main problem for sustainability of the industrial development
(Dasanayaka,2009) process. There need to be gradual shift towards high value
added domestic resource based production activities. Second, innovative measures
should be used to attract investment and business interest from the displaced Jaffna
Diaspora. Most of intellectuals and entrepreneurs have migrated from Sri Lanka to
western countries due to the civil war. Diaspora investors have the potential to play
an important role. Even more than most international operators, since they have
the local connections and, the personal motivation to contribute to their country’s
reconstruction. While living abroad, they may have picked up valuable expertise,
in addition to amassing funds ( Bray,2007). As war is over, the government should
provide various incentives and security to them to come again to their motherland
and convert the accumulated financial and human capital in to assets of the
development process. Third, as lack of fi nance constrains the growth and development
of SMEs, the government and other supportive agencies need to promote micro
lending and SME lending on a much bigger scale, with greater participation of women
entrepreneurs on the line of the “ Grameen” scheme of Bangladesh. Forth, beyond
enhancing the coverage and quality of basic infrastructure, initiatives would also help
improve access to markets for rural fi rms.
- 89-
A Study of Small and Medium Enterprises in Sri Lanka
7. References
Arinaitwe,S.K. 2006. Factors Constraining the Growth and Survival of Small Scale
Businesses. A Developing Countries Analysis. Journal of American Academy
of Business, Cambridge, 8(2), 167-179.
Asian Development Bank, .2008. Country Partnership Strategy, Manila, Asian
Development Bank.
Bray,J.2007. The Role of Private Sector Development in Post-conflict Economic
Recovery, United Nation Development Progremme, Sep, 1-38.
Central Bank of Sri Lanka .1998. Economic Progress of Independent Sri Lanka,
Colombo, 121- 124.
Central Bank of Sri Lanka. 2008. Annual Report, Colombo , Sri Lanka.
Central Bank of Sri Lanka.2008. Economic and Social Statistics of Sri Lanka, Central
Bank of Sri Lanka ,Colombo.
Dasanayaka,S.2009. Small and Medium Scale Enterprises in Informal Sector in
Pakistan and Sri Lanka with Research Agenda, IARIW-SAIM Conference,
Kathmandu, Nepal.
Department of Census and Staistics .2007. Annual Survey of Industries-2007,
Colombo.
Department of National Planning .2006. Mahinda Chintana : Vision for a New Sri
Lanka, Colombo.
Dias,Sriyani.1991.Factors Affecting the Productivity of Manufacturing Sector in Sri
Lanka: A Spatial Analysis,GeoJournal,23(2),113-120.
Narman, A. & Vidanapathirana, U.2005. Transiting from Prolonged Confl ict to Post
Confl ict Developmeny: Locating the Case of Trincomalee District of Sri Lanka,
Pease and Democracy in South Asia,1(1), 13-22.
Task Force for SME Sector Development Program.2002. White Paper: National
Strategy for Small and Medium Enterprise Sector Development in Sri Lanka,
Ministry of Enterprise Development, Industrial Policy and Investment
Promotion, Colombo.
DISCUSSIONParticipatory Research for Poverty and Conflict Resolution
DISCUSSION
DDDI
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CCU
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- 93-
Moderator, Prof. Yoshio Kawamura, Ryukoku University: Ok, so right now I
have a headache, because I don’t know how to run this discussion that really depends
on your participation. As the lady said, the key issue is the participation, to solve any
problem. So those are the true fears so we should keep it at that kind of philosophy.
So please give any opinions or, the experts, this is good chance to share the experience
and ideas and those kinds of things, to… as I said, we have many different kinds of
research then we are focusing on the possibilities to realize participatory research
that means maybe a link, the research to the real society to solve the problem. So
already we have two keynote speakers’ presentation in the mornings and they gave
us basically the very theoretical or conceptual framework although in the case of
Professor Saleh Ali’s he also gave us a very concrete case of concepts and base on that,
he gave us conceptual framework.
What we should do, what we should think. And then after that we have 5 very
concrete research presentations, so of course you can have questions relate directly
at the research itself, don’t hesitate to start. But also as I said, we’d like to know at
least three dimensions, one is how we are going to identify the real social problem or
community problem, then which kind of research we should form base on that, then
after the research but what can do or what we should do. That is exactly the part
of the important message that we got yesterday from Professor Saleh Ali’s special
lectures at the graduate school of Economics. And so by talking about that we might
be able to clarify, which kind of factors or conditions, we have to be aware to develop
those kinds of research, so this is just the beginning of my statement, so all should
be on your hand raising or whatever you said. Are there any persons who really fi rst
want to contribute? Okay.
Discussion
- 94-
Participant A: Thank you very much. We have got a conflict now in China, in my
country, there are so many conflicts, now my country is transiting from the lower
income countries to the developing countries. Now in my country there are many
problems arising, as many problem with us, can say that the confl ict between rural
communities and the local government, we always have these kinds of problems and
they are very popular in the rural areas.
Also the widest problem that happens is also because of the land, the land,
because the government wants to come to the land, then sell the land to build houses
and then also sell the land to companies. Recently, another problem is in urban areas
the price of a house is increasing. And many people they cannot survive or they cannot
buy a house. It is very diffi cult for a newcomer from rural to urban. When my father
was young, he graduated from a university. My father was, I meant my father’s father
means my grandfather he went to school for education and graduated within 10 years
working he can buy a house, but now, maybe if you want to buy a house in Shanghai,
you will have to work for your whole life. And these are big problems in my country, so
I think if we want to solve this problem or confl ict, I want to ask all Professors to give
some advice or discussion. Thank you very much.
Prof. Kawamura: First he throws the problem to us, so maybe some of you can
respond. Actually he identifi ed a gap between the problems people recognize and the
university’s activities too, right.
Prof. Saleh Ali, Hasanuddin University: Thank you very much. I’d like to
make some comments about the presentation that we had today. Our topic is about
participatory research, it’s a kind of method inquiry. According to me it belongs to
positivistic paradigm. What I saw that presentation from our college here, they are
still under the positivistic paradigm, they are still under the positivistic paradigm
which is more on the perspective of more on the philosophical reductionism,
reductionism philosophy. That reality or phenomena can be studied by breaking down
the reality into parts and each part can be studied small parts or the whole part.
Now it is criticized by positivistic paradigm. As I mentioned in my presentation that
participatory research is a post-positivistic paradigm which is more concerned with
a holistic approach, it is different from the positivistic one. So in discussing this topic
today let’s focus on how we are using research to solve the problem holistically.
Say for example our fellow from China throws up a problem “How do we improve
the income of the rural people?” So like for example after research, you know, we fi nd
some evidence that cocoa, or cacao products can improve the well-being of the rural
- 95-
Discussion
people. But, how can this kind of research directly improve their rural income? Did
they just hypothesize this, but there is no actual action that we can do to improve
the rural income. That’s the most important thing in participatory research. Action-
oriented, education-oriented and partnership-oriented, I mentioned this in my
presentation. Thank you.
Prof. Kawamura: Although I didn’t talk this possibility individually to Professor
Tanaka’s, but as I mentioned he has a very rich, extensive experience of research, fi eld
research especially in Sulawasi areas so maybe he can give us more good experiences
that he has had and his ideas too probably.
Prof. Koji Tanaka, Center for Southeast Asian studies, Kyoto University: As
soon as we are going to talk about participatory research, the concept or actual, how
can I say, the activities related to participatory research I think we have to define
what is participation. Then as Professor Saleh Ali told, research should be more quote-
unquote ‘action-oriented’. So I have listened to many reports from the session before
this and you have analyzed what are the problems, but in order to solve the problems
we need some more active approach to communities as well as to local governments,
as well as the third parties. Because every confl ict, every problem has many parties,
it’s the stakeholders, so not only the local communities. There are some outsiders who
are interested in confl ict itself, so we have to analyze many stakeholders.
So let me take an example from research conducted in Lampun province in
Sumatra in Indonesia. I studied about the farmers’ communities who exploited forest
areas in order to open agricultural land for their lives. And then that forest area was
enclosed by the government, central government, the central ministry of forestry, and
then nobody is allowed to settle in the forest area, nobody is allowed to cultivate the
land because this is the forest area, and even though there is the legal structures
but the local people, local government did not have enough control or management
powers because of the shortage of government offi cials and then in the former days it
was the forest land was almost all open access and then farmers get in to there and
settle their lives in the forest areas, then after that because of the environmental
issues, because of the global environmental issues, the government was forced to
strengthen the policies in relation to forest management, so they have to kick out the
farmers who settled there for a long time, so that conflict occurs. So I studied that
case and then I had many discussions with the local communities of course and also
discussions with the forestry persons, forestry offi cials. And then probably the role of
the researchers will be a kind of bridge, or as kind of mediators who play their role in
- 96-
order to encourage the discussions or encourage the interaction between the parties.
Of course, this interaction or intervention should be based on the research fi ndings,
but not only the research findings analyses but also we have to propose some sort
negotiation among these quotas, so I think as I stated at the beginning, as far as you
are going to study with the method of participatory research, I think these kinds of
approach, these kinds of action-oriented approach are very innovative. Thank you.
Prof. Kawamura: I saw your eyes; I thought you had something to say... Okay good.
Now I’ve got the message, a clear message already. All the participatory research
that’s according to its following the terminologies of Professor Saleh Ali’s holistic
paradigms, then he also indicate with that way is the participatory research is not
always carried out as research itself, rather than the impact, and how we are going to
deal with it after the research is kind of an important factor. That should be within
the concept of participatory research. When we are doing the research we’re talking
about the causality, but we never talk about what we should do after the research but
he pointed out that’s the point we have to do. And also Professor Tanaka mentioned a
very similar thing too.
So then that means often in today’s presentations we saw after the research
analysis there are many recommendations. But that is going to be enough in the case
of conventional research but when we are talking about the participatory research by
which we are going to solve the problems of the real societies then we need a kind of
action-oriented method after the research, that’s the new thing we’ve got here. That
means those researches will be integrated into implementations of how to solve those
problems. So this is something very strongly related to the attitude anyways, that’s
also one of the messages that came from Professor Nakamura, so that’s one thing we
are starting to recognize the free markets or the kind of tele-visual age we are talking
about by using the participatory research.
So probably, also like Leidi said, the process of the research is something that we
haven’t discussed yet, but the process is also a very important part. That because it
directly links to the process of implementation after we do the research too, so maybe
we need to do some kind of clarifi cation of how we are going to do the research itself,
as a process, then also if you go back to the beginning stages, then Professor Tanaka
mentioned about the stakeholders, because when we see the problems we are going
to identify, could they also be giving us very different meanings and definitions, so
the stakeholders analysis and who is going to identify the problems and how they
are going to identify these, are probably also very important processes in the case
of participatory research. All those we didn’t discuss deeply about yet. So now what
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Discussion
we knew is we have a necessity to identify the beginning stages of identifying the
problem, and then identify the stakeholders and then how we are going to identify
the problem, and then also carry out the research in which we are making also the
causality clarifi cations. But in this case the process could be also very important, that
could be not only for the job but the research itself, maybe we need to do something
but I don’t know but that is the second stage we may have to discuss.
Then the later ones, the third one is already the Professor Saleh Ali and Professor
Tanaka summations. How we are going to use, those and the output of the research.
That should be whenever we say oriented or action-oriented research means what you
are going to do after the research is a very important issue over this theme. So now
we have 3 dimensions, we have to clarify those ones, decide which kind of research
itself we should do although we said causality but many of the papers here are also
trying to identify the linkages between externalities or environment, and internality
or structures, you know to better clarify what the causal problem is too. So actually
we have those four dimensions that are what at this moment I just organized and
differentiated with what we have discussed.
Arsyad Muhammad: Thank you very much, especially Professor Tanaka. I
totally agree how to make those linkages between local governments and then to
communicate those research results. And also Professor Saleh Ali there are some
answers now as a result encouraging cocoa production can be expected to reduce
poverty, but how can I do and in which kind of way should I do this is very important
task. The problem is even I know Professor Saleh Ali has a very strong linkage
between his students and the local government, but bringing those research results
to the local government to be applied is no easy task. The reason is the parliament
or the political will of the parliament members is not easy to absorb that way, the
reason is the parliament or the political or parliament members do not easily shift to
take on board the research result or proposed solutions. So we need a strong approach
to make sure those parliament members start to solve this really important issue.
Because we have this experience and bring it to those local governments, but it is
essential to apply this research, totally we have to get the recommendation from the
parliament, which is a very political part, political will, so if we are not able to make
the recommendation then it is very diffi cult to apply this recommendation, so that’s
why this happen sometimes.
So in this case we need some kind of independent institution to encourage us
and then encourage local government because as Professor Saleh Ali, Professor
Tanaka today gave us a very good example without having any kind of confl ict from
- 98-
the society to push those parliament members to receive this kind of result, it is very
diffi cult to get or achieve, again we can very much understand, so I’m saying actually
those policies, they have political weight. So we cannot apply very easy that way.
So to me let me keep as a result, after this comment of course, Professor Saleh
Ali here, I know in the case of local government it a little bit easier to talk because
we have closer linkage between the local government and the universities, but in the
case of national governments it is very diffi cult to communicate with them. Because
that totally… we have to go the parliament fi rst, then they have to have a meeting
and to decide if we can do it this way, however budget is also very very necessary, so
not only political will but also budget. The total problem we are facing at the time,
because even though we have the budget, but sometimes also local communities,
local people… yeah that’s true we did this for the local people but not all local society
or local people will accept it before seeing the improvement. Because… I’ll give you
one example. My respondents, I asked them “do you think that the poverty situation
is a problem?” They said, “no, the problem is our daily lives, not with the poverty
situation”. But in our eyes, the poverty situation is the problem, so this, to me, we
have to make a triangle, linkage between the local community, university and those
national governments, so I’ll keep at this with it as a result and we will probably be
able to achieve something. Thank you very much.
Prof. Kawamura: Actually he also mentioned about the social, we say social distance
or the gap between the researchers and the university’s positions and other bodies
and not only the local governments but also the local community people’s positions.
Well I think I’m expecting opinions or ideas from each of you, just like yesterday, and
then you can contribute to this seminar. Okay.
Participant C: Thank you very much for presenting all the presenters. I am grateful
for this academic stream. I also make the recommendation to most of them…look at
local action plans. So it’s very diffi cult, so there’s a big gap between the implementable
things and recommendations. So I think that because last year I learned that there
is PCM, in Japan there is Participatory Community Metrics or something, but it is a
logical framework analysis and so if we give the framework a recommendation using
the logical framework as a tool then it is made more practicable and understandable
for even a non-academic person. So I think that I should suggest if you use the logical
frameworks even we use for the project designing, so the same thing if you use it at
the last chapter, so it made more practicable and understandable I think, thank you.
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Discussion
Prof. Tanaka: May I respond to Arsyad Muhammad?
Prof. Kawamura: Yes, please.
Prof. Tanaka: Listening to the comment raised by Arsyad Muhammad, I got some
impressions of these are very serious issues how researchers behave in front of
the rural communities you studied, so that is a very big issue. And then although I
emphasized the action-oriented research, I do not recommend you to change yourself
from a researcher to an activist! It should be the activities within the frame of
the research, so in that sense I’d like to take a phrase from Professor Nakamura’s
papers, so if you have them, please look at the front page, fi rst page, and then second
paragraph and Professor Nakamura mentioned that the more one specializes the
more one loses common sense. So this phrase is very important when we are getting
in touch with local communities. So in the case of Professor Arsyad you analyzed
the logical framework of the small scale cocoa farmers and then you analyzed. And
of course cocoa plantation is very closely related to the poverty elimination, and
then it’s okay, but of course the cocoa price is higher, they are richer. It’s very simple
knowledge, and people expect the high price of cocoa and if you analyzed cocoa is very
important to solve the poverty issues, so it is just this analysis is a very strict analysis
or very good analysis but the result, the cocoa is very closely related to the poverty,
it is very much common sense also. So it’s not necessary to do such analysis if the
farmer understands that the cocoa is very important, of course they are very much
interested in that price.
And then I would like to recommend to you, not only you but all of you, we have
to analyze the phenomena using the scientifi c ways, it’s okay, but we have to have a
wider scope when we apply the research. So that is very important. So if I take an
example from your areas, it is Sitrop in Indonesia, cocoa plantation is just the history
within the last 20 or 30 years. And then in the very beginning, it had a very high
price and then expanded, and probably there is a fl uctuation of prices. Then before
the cocoa boom there was a clove boom and sugar also, and the farmers also planted
cloves. Then before the cloves probably the farmers planted coconuts or some other
cash crops so the cocoa plantation is just a selection within such waves of economic
fluctuations of change in the cash-earning crops. So when you analyze the cocoa
farmers now, you have to pay attention to the history of the cash crop. Cash crops
in Indonesia played a very important role in the functioning of small scale farmers.
So not only the functional analysis but you also have to pay such attentions to the
historical perspective for example. With this knowledge you have to make yourself
- 100-
closer to the farmers. So farmers keep their history, their memories. Your research
should be mixed with their memories. So as long as you ask the very quantitative
data following the questionnaires there is no harmonious interaction between
the people and you. So you have to know very detail about the history, about the
geographical or regional conditions. This is the base of the action-oriented research.
So that is my perception. So I didn’t simply recommend you to be an activist, so that
is a very important point.
Prof. Kawamura: Thank you very much for nice points. I really appreciate that. Yes…
Prof. Hisashi Nakamura, Ryukoku University: Thank you very much. I also am
going to support a statement made by Professor Saleh Ali and Professor Tanaka we
need not go to parliament or central government we need not a political agreement to
do anything. May I tell you a small anecdote, when I strongly recommended Professor
Yunus, Muhammad Yunus, for the Fukuoka Culture Prize in which I am a member
of the committee, some people said “No, this is an action-oriented study done by an
economist, but he doesn’t have any distinguished papers on economics”, some people
criticized. But fi nally it was given 5 million yen after three years he was awarded the
Nobel Prize a far bigger amount, but he came to Fukuoka and told us he didn’t go to
parliament or central government or he didn’t use any budget. He started in a small
village thinking how to organize poor people for the micro-finance problem that was
how his work started. It may not be very much academic yet had a certain impact on
the rural scene of Bangladesh. So we are told research workers are not having much
infl uence on political parties or governments or budgets, but we can all do something
small on the basis of what we found through our research. Thank you.
Prof. Kawamura: When I am listening the PR has had a research, probably, I cannot
say all, but most of you who are studying in this graduate schools of economics and
then working on how to reduce the poverty problem, without any qualifi cations you
can just you know feel very comfortable but the question I would like to raise is
when we are dealing with micro levels or… I often use “mezzo”. Mezzo is between
micro and macro. When we are dealing with the micro and mezzo levels, maybe the
particular research should be the very necessary procedures, and the concept of those
as Professor Saleh Ali pointed out as a change of the paradigm, but this is also the
truth in the case of macro and then global levels. I know we are dealing with these
ones. Somebody said well in the case of central government we don’t have that kind of
necessity, those kinds. The question is I have no idea what are the answers. Maybe I
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Discussion
can ask the persons who are dealing with international relations and also migration,
the international migration, those ones, maybe you have some kind of opinions or
reactions, maybe by fi rst should I invite the…?
Participant D: Participatory research?
Prof. Kawamura: Yes, that’s the kind of validity of participatory research; maybe
you are dealing with international relations or the macro level approach. Just that’s
no…another way to use as a means.
Participant D: Is it true that participatory research is used in international
relations? Again it depends on the defi nition of international relations I think because
there is more of a…, at the macro level there are scholars of international relations
dealing with the theories of IR, international relations. So they are looking from the
abstract points of view so it might be diffi cult to use participatory research and they
are really doing what Professor Tanaka pointed out that Professor Nakamura wrote,
that the more you go deeper, the more you become abstract, you become further from
the real world in a way. So those scholars might not be that directly related to the
parts of the research. But when we look at international relations as interdisciplinary
study that some of the universities call it now, interdisciplinary areas or studies, then
you can use, we can use participatory research. If you ask me my personal experience
or opinion, as a student of IR, still I consider myself as a student of IR. I did Japan
and Oceania relations from international and political economic points of view, in the
case study I worked on I worked on free trade agreements and economic partnership
agreements, then I try to use both, I try to apply theories, I try to lead application or
implementation of economic partnership agreements between those countries from
the theories of international relations. Then in a way I try to link the theories and
paths to research by doing different, by trying to apply research methodologies but I
cannot say they are all IR issues.
Arsyad Muhammad: Personally, I say thank you very much to Professor Tanaka.
You can see quickly external point of my set which I don’t see honestly speaking. Well
it’s true that everybody knows that cocoa can be expected to reduce poverty meaning
that there is an assisting the relationship between smallholders and the poverty
situation, I totally agree. But I personally honestly speaking don’t know which are the
important parts which make this linkage to be done so this is primary reason why I
did this kind of thing, but however I totally agree if you can say this is the common
- 102-
sense, that’s fairly true. But I really appreciate you can see external space of myself.
Then the second one is you say you should most close to the farmers. This is probably
one of the recommendations to graduate school of economics. Honestly speaking,
Professor I can leave university only 51 days. 51 days meaning a very limited time
to do this kind of work. I should say this then in this case I’m not saying because
of the limited time of my research but I have the limitation of resources to do the
research, so both sides are limitation to do the research but I have the limitations of
the research so because generally we can leave the university for a maximum ways
2 months. Because of this I cannot stay close to the partners but thank you Professor
this is input for the graduate school of economics. Thank you very much.
Musige Nishanta: Related to participatory research I think it is my opinion there
is some area we have to focus in our research to the local problem. There is in the
industrial sector and agricultural sector, we are using some models or techniques or
methods developed by distant countries such as Japan, but sometimes, most of the
time we fail some when we follow these models or techniques. I think our research,
as researchers we also have to do research in those areas, why those models or
techniques fail. Thank you.
Misa Shojiya, Research Assistant of Afrasian Centre for peace and Development
Studies, Ryukoku University: I major in international relations, as she said I am
in IR and public policies. I really enjoyed today’s presentations. I enjoyed today’s
presentation from the viewpoint of post-conflict peace building that is my research
topic. I think participatory research can give us some kind of answers to the questions
which we are asking among the international relations students, especially about
post-conflict peace building things. One thing which I was very impressed with
today is Professor Nakamura’s received local system because as you know now there
are a lot of critiques to our today approach of the international community that
the international community tried to impose the wisdom institutions, especially
democratization and also open market, so we have that kind of big question among
international relations students. So today I think the participatory research can give
us some kind of answer to our questions so it think we can study both viewpoints,
maybe we can enrich our study together.
Participant E: Okay, I want to emphasize or go back to the micro-level, Professor,
and use or emphasize a word that Professor Nakamura used which is organization.
I believe for participatory research, organization is essential. Not simply the
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Discussion
organization of the people, but also the organization of different organizations
themselves or groups those are present in a local community. I believe that by
building or bridging the gap or aligning the focus or interaction between the different
groups present in a small community, I think we can achieve much more than if we
work alone. For example we are researches to a certain extent. We are working and
trying to fi nd and defi ne problems and also make recommendations or solutions as to
how we can alleviate a certain problem in a certain area. I believe like us there are
also other organizations or other people, stakeholders that are also interested in the
same common goal but the relationship or the interaction is not present and I believe
that some mechanism needs to be created. I can’t really tell how or what or when but
I do believe bringing together or bridging the gap between the communities, within
the community itself and other present organizations I think much more can be
achieved. And the accomplishments of our ultimate objectives will be met easier.
Temesgen Tilahun: Okay, thank you. I would like to make two points, fi rst one is
commitment about participatory research. I think the time, budget and other things
are not suffi cient conditions for researchers. In Ethiopia case, I got that commitment
is the most important factor for researchers. Most researchers would like not to go
to the remote areas to do research because they know that these remote areas have
not got any infrastructure fulfi llment, there is nowhere in the rural areas to eat or
sleep or something like that, so most researchers, serial researchers don’t want to go
there. There is no background information at all, I face such problems. In my research
area no such research has been done before. But when you go to the central areas, the
central parts of the country, there is a large number of duplicated research. So I think
if we really ought to bring about poverty reduction in our country it is important to
be committed enough to see and to observe the situations of the partner societies and
live together for certain time if possible. I got that this is the most important thing
from my experience.
The other thing is I think researchers should be independent of politics. I am
speaking from my country’s point of view. I know there are a larger number of serial
researchers who did the research in poverty reduction whether in larger general
systems or foreign security or whatever, but they are not politically independent,
then the research is suspended on the air, very difficult to implement because the
contemporary government or political party view them as if they are opposing
opposite the existing government. Of course it may be another question of how people
can live without politics, but sometimes I feel sorry when I read the research outcomes
written by those opposing researchers. Particularly if they were in the community or
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living out of Ethiopia, they give you know large numbers valid and brilliant research
but this research are suspended on the air, nobody is going to implement it, as long
as there is a social gap, social distance between the contemporary government and
these researchers. So to my understanding, academicians should be free of politics to
a certain extent. So I think that this is one of the most important things for them to
have. Thank you.
Participant D: About your comment, Mr. Temesgen. About your comment I agree
and I disagree. First of all I think it’s very diffi cult to carry out independent research.
About history for example there is a common saying that ‘everything is written for
something, for some purpose’. So it is very difficult to be independent especially in
today’s quite interdependent society now today. And again at that point I might
disagree with you, but I agree with you that we as students or researchers, we don’t
have to be under the impact of politicians or politics but I believe that we should
do our research about politicians, we should go beyond politics, beyond politicians
and we should be able to have an effect with our research results, effect politics and
politicians. Especially, I would like to bring your attention to tomorrow, because
tomorrow is the beginning of the Copenhagen Climate Summit, so I might be a
little emotional because this summit is quite important for all of us so even as an
example when will look at the climate summit starting tomorrow, most of the key
players, key speakers are politicians, government leaders there. Of course there
are representatives from NGOs, a variety of universities, research institutions, but
still the decision makers will be unfortunately politicians. So that is something
important I believe that we should go beyond and have the power to affect politics
and politicians. Thank you.
Prof. Kawamura: Well, that’s a very important I would say, it relates to politics. But
in that case one of the things I understand the difference, is when you are dealing
with the real communities, and then how to develop this, it’s strongly related to the
distribution systems of resources and then fi nally talking about more abstract ways
at a global level like for say human rights or some kind of the international relations,
that’s not directly, I’m not talking long but short term, not directly to associated to the
distribution programs of resources.
Participant D: I agree. I understand your point.
Prof. Kawamura: Probably that’s the difference when we’re dealing with the
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Discussion
research but then the social impact or needs of the research could be a little different
between your case and this case too. That is very important. You have to be aware of
that difference too.
Arsyad Muhammad: I have experience when I was working at a private university.
So the results we produce of that research. When we come to give that to local
governments, it’s very easy but it’s very diffi cult to apply a terrible budget because the
city might always say this decision has to come through the parliament so you have to
make sure of that with parliament fi rst, in order to get that budget for example. But
what we did at that time – because this dealing with political ways – what we did at
that time was going to a parliament member personally and asking him, not in front
of the meeting committee but personally we did it this way, and then he at that time
started to recognize, oh this is a really important issue, and then personally brought
that issue on that committee and then at that time they accent. But when we directly
brought that research from our side, from the university, directly to the parliament
everything was rejected. So I don’t know to conclude but this is the best bet. Thank
you very much.
Prof. Kawamura: I am afraid that time is running out, is there any person?
Prof. Saleh Ali: One thing that you and Professor Kawamura mentioned was it
was most important to discuss about the process of participatory research. And in
the process or participatory research one of the important things is how we define
the problem, who will defi ne the problem. The researcher or who? Professor Tanaka
mentioned that you have to consider the whole stakeholders also the lady from Belize
also said more about that. Okay, we agree that all stakeholders should be involved
in the decision in formulating a problem, but what is the role of the researchers in
the process? What is a kind of incidentally that should indentify or clarify in this
research, that’s one point.
And then the second point is how we collect information. Are we still using the
era of collecting the information by using the conventional method or what? Professor
Tanaka said that it’s like an activist way, I agree that participatory research is much
more developed by social activists, by social movements like that, like Paolo Freire
from Brazil that develop the idea of consciousness rising from the local people; they
have to perceive what the problem is. So I think that. As Arsyad mentioned, the
problem is the political situation also is very infl uential. Sometimes you have a big
problem and you already decide, you formulated it by involving all the stakeholders
- 106-
but when you implement this process or apply the results you have the problem of
political rejection. Remember that Paolo Freire is a Brazilian and was rejected in
his country then went to the Venezuela or something like that, and then to Harvard
because the government rejected him, because of his approach, conservationist
approach. That’s the point.
And then the second point is about the unit of analysis. I think Professor
Kawamura and the ladies mentioned about the micro-level analysis and macro-
level analysis. Micro-level analysis is no problems. I do not see any problems with
implementing participatory research in the micro-level but in a macro-level I think
there is some problem then because that is related to my first question - who is
going to define the problems? The macro-level is very practical especially at the
international level. Who is going to defi ne? The UNDP or United Nations? Who? Are
the perceptions at the national level the same as the perceptions of the local people?
Maybe the international level they say that that the poverty is like this but when
you go and ask the people in the regions “are you poor?” They say: “No, we are not
poor”. This is a kind of problem of implementing the participatory research not only a
political aspect - who formulates the problem - but also in terms of unit of analysis of
the regions. Thank you.
Prof. Kawamura: Please let me continue by seniority because we have strong
personalities, so maybe I would like to… so we shouldn’t spend so much power on this.
Are there any additional statements from Professor Tanaka?
Prof. Tanaka: I think the discussion has developed very well so I don’t think it is
necessary.
Prof. Kawamura: He gave us a maybe a B+ or maybe an A-. I’m sure, I think.
Prof. Nakamura: Sorry there’s not much time. You know nowadays economists can
go beyond set areas for economics, for example the latest guiding of Amartya Sen can
be seen as almost of a philosopher. I can remember the last lecture delivered by a
British leading analytical philosopher, Whitehead, the last sentence of his last lecture
said exactness; exactness is a fake, ill-concentrated on the research of the positive.
He tried to analyze to see the logical meaning of statements in many ways but in
actuality when he retired, he came to write as a statement how exactness is a fake.
So we have to think about that kind of thing, we may not be very much accurate in
collection of the data or the research work, but if we are very much concentrating
- 107-
Discussion
upon exactness then the whole picture may be missed as Doctor Whitehead warned.
Thank you.
Prof. Kawamura: Thank you. I think already we are over the original schedule so
I think I should conclude this one but very diffi cult to close this one. This is not the
conclusion but let me organize our discussion we did. So maybe I’d like to point out 6
points or issues or subjects.
One is we have the problem of how to identify the problems, that’s the beginning
stages. And then as Professor Tanaka mentioned we also should be aware of
stakeholders and then how and who is going to identify the problem. Of course we are
not able to invite all the stakeholders, but by identifying the process and also how and
what we are identifying the problem. By knowing that, we also understand the kinds
of limits that we are trying to carry out. That is one of the important things fi rst.
The second one is the research itself. One is like in the last statement from
Professor Saleh Ali, he mentioned how we are going to get the data collection, the
data, so how we can reach the data’s information. Always there’s also the political
infl uence functioning often, so which kind of data are really taking, so based on the
data we are starting to recognize the realities. So we now understand that this is the
problem we have to be aware of, anyway. Also within the research many discussions
are done focusing on the content or how to form the research content itself. In
Arsyad’s case he did a very good analysis but then even if that is a good analysis you
cannot reach the real communities that came from Professor Tanaka’s suggestion.
That means in order to give very good validities of that research or those analyses
maybe we need not only the variables but also we have to understand history and
also cultures. So means the totalities of that reality. Maybe this is easy to say. I know
that’s very difficult. Maybe for the researcher how to link the kind of functional or
structural approach and that total understanding of the society, that is also very
important issue. That is one thing that is able to give a base for participatory research
in the future.
The third one is the process of research. Although this one came from the lady she
suggested maybe the participatory method could be one of the ways to get participatory
research. That was easy to say but we don’t know how to do that, all those things that
Sara Hansan said are other methods or the logic, we have PCM. PCM is project cycle
management, but within that one we have those methods of this one. But that’s also I’m
not so sure if it’s practical or not but anyway, the process of the research itself is a very
important issue we have to consider. That was the third one.
Then the fourth one is after the research, you can have very good research
- 108-
but how are you going to use it, what are you going to do? That we call one action-
oriented research, but then that means we are also carrying out the commitment for
the intercommunications. That’s also always the political problem we also associate
with that. But what we know is that all those in conventional ways did very good
research in this condition, but when we start talking about participatory research
then we should be aware of the impact or how you are going to do something after the
research. That could be a very important issue, and that’s the fourth point.
Then fi fth point is just Professor Tanaka’s suggestion or recommendation to our
researchers (Arsyad), don’t change your attitude in any ways, you cannot be ignoring
your other research here. That means there is probably a strong limit to get the
realities of participatory research by changing your attitude, no? Rather the more
important one is how to link between you and the other stakeholders, if I borrow
Professor Tanaka’s words. So that’s the way we are making network or the linkage,
with other researchers and then with other people. Could be a very crucial situation.
So that’s the fi fth point.
Then the sixth point is the unit of analysis. Well when we are dealing with just
like me or Professor Tanaka and Professor Saleh Ali and Professor Nakamura we
are the ones who are dealing with really grassroots, and then talking about the
people and community, then these are very comfortable words, when we are talking
about participatory research at the micro-level and micro-mezzo levels. But when
we’re talking about the macro-level or the globalized levels there’s actually a very
important differentiation. One of the participants pointed out, the point is we need
also to identify the validities of participatory research. We cannot apply maybe, we
cannot apply whole thing, and there is also a limit to the application of those ones.
Those six points could be the output we’ve got through today’s very intensive,
good discussion. I really appreciate your contributions. I really enjoyed especially
Professor Tanaka’s, Professor Saleh Ali’s and also Professor Nakamura’s and Shojiya-
san’s. Those people also contributing very well from outside I really appreciate those
ones. So let me fi nish my chairmanship, and then I will pass this on to my boss.
Prof. Pauline Kent, Head of Afrasian Centre for Peace and Development Studies,
Ryukoku University: I’m not quite sure which one is the boss! Let me begin by
repeating Professor Kawamura in saying thank you very much to our distinguished
guests, our keynote speakers and our presenters today. I think the discussion today
has been very provocative, extremely stimulating and it has reconfi rmed my beliefs
in the way Afrasia has taken an approach to research. We have tried to be inclusive;
we have tried to take a holistic approach, because conflict, conflict resolution isn’t
- 109-
Discussion
something that you can fi x tomorrow. It’s part of a process and the confl ict and the
resolution is all part of the one process, so I think we have heard about this sort
of thing through today’s discussions. To be able to take a holistic approach though,
we can’t do it on our own, you’ve heard about the limitations of research, so in that
sense we need to take an international approach, also an interdisciplinary approach.
And I think we have been extremely successful in that challenge today with all our
presenters. So in that sense as director of Afrasia I think we have had a wonderful
discussion today and we heard that to be a researcher you need commitment. I think
we have seen the commitment but I think also especially from our young researchers
we have seen some wonderful enthusiasm for research, and I think this is also
extremely important. I think we have sent you on the way for long careers because I
think you realize now that research is a long process, sometimes it includes politics.
Sometimes you may become the activist. Remember that you are also the researcher,
who has to identify the problem correctly and then work from there. I do wish you
all, especially the young researchers all the best for the future, I can see futures
here. Hopefully we will have the opportunity to meet again. And for today to all our
participants, presenters, thank you very much for your wonderful participation.
龍谷大学アフラシア平和開発研究センター 研究シリーズ 9
Participatory Research for Poverty and Conflict Resolution
Afrasian Centre for Peace and Development Studies, Ryukoku University
Research Series 9
Yoshio Kawamura, Saleh Ali, Hisashi Nakamura & Misa Shojiya
発行日/ 2010 年3月 19 日発 行/龍谷大学アフラシア平和開発研究センター http://www.afrasia.ryukoku.ac.jp/
〒 520-2194 滋賀県大津市瀬田大江町横谷1-5 TEL/FAX 077-544-7173印 刷/株式会社 田中プリント
PUBLISHED BY AFRASIAN CENTRE FOR PEACE AND DEVELOPMENT STUDIES,
RYUKOKU UNIVERSITY
1-5 Yokotani, Seta Oe-cho, Otsu City, Shiga 520-2194 TEL / FAX + (81) -77-544-7173 http://www.afrasia.ryukoku.ac.jp/
PRINTED BY TANAKA PRINT CO., LTD.
ISBN 978 - 4 - 903625 - 96 - 6表紙デザイン: 山中大輔・内田晴子
Participatory Research for Poverty and Conflict ResolutionThe 6th International Seminar of Afrasian Centre for Peace and Development Studies December 6, 2009
Yoshio Kawamura, Saleh Ali, Hisashi Nakamura & Misa Shojiya
龍谷大学アフラシア平和開発研究センターAfrasian Centre for Peace and Development Studies, Ryukoku University
研 究シリーズ 9Research Series 9
研究シリーズ
9
Is There A Japanese IR?
Seeking an Academic Bridge through Japan's H
istory of International Relations
龍谷大学アフラシア平和開発研究センター
ロゴは、ガーナ・アディンクラ模様の「双頭のワニ」。双頭のワニは、2つの口がたとえ争っても胃袋はひ
とつであり、つまり目的は同じなのだから、争わずに協力していこうという意味合いの平和のシンボルであ
り、アジアとアフリカという2つの地域を合わせて「アフラシア」という圏域(スフィア)を象徴的に示す
とともに、他方で同地域における非暴力による紛争解決と平和の実現を目指す本センターの強い願いを示し
ています。
The logo mark of Afrasian Centre is adopted from an Adinkra symbol of “Siamese crocodiles” in the
ancient kingdom of Asante that existed in what is now the Republic of Ghana, West Africa. It is a
popular symbol of peace and unity, as Siamese crocodiles share a stomach, or the same ultimate goal,
even if they tend to fight with each other.
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