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Land rights and access can have significant impacts on farmer and firm adoption of innovations. Secure land market rights and access support sustainable agricultural productivity growth by enhancing landholders’ incentives to make long-term investments (World Bank 2012). Moreover, secure land market rights facilitate the use of land as collateral for loans, which can be important for funding productivity- and sustainability-enhancing innovations. Many developing East Asian countries (for example, China, the Philippines, Vietnam) have carried out consecutive land reforms that enable the use of land as collateral and enable land consolidation, rental, and sale. However, in many countries (Indonesia, Malaysia, the Philippines) land rights still impede investment (table 6.4). For example, in Malaysia strengthening land market rights and access may enhance the capacity of Malaysia’s farmers and firms to increase agricultural productivity (OECD 2017b). In Indonesia, complex and insecure land rights have impeded firms’ interest in investing in agriculture (FAO, n.d.).
NOTES 1. For instance, Malaysia places significant emphasis on agriculture and innovation as drivers of productivity, sustainability, inclusivity, and growth (National Agri-Food Policy 2.0) and emphasizes the role of new agricultural technology (information and communication technology, precision agriculture). 2. China’s net FDI to agriculture (targeting Africa and Latin America) increased from $190 million in 2006 to $3.29 billion in 2016, an average annual increase of 33 percent (Jiang, Chen, and Wang 2018). Net FDI has resulted in, for example, land acquisitions and imports of grains by state-owned enterprises (Zambon et al. 2019). 3. China, Malaysia, Thailand, Indonesia, the Philippines, Vietnam, Cambodia, Lao PDR, and Myanmar. 4. Examples of such plans include China’s 13th Five-Year Plan (2016–2020), which called for an innovation-driven development strategy; Malaysia’s Agrofood Policy 2.0, 10th Malaysia Plan (2011–15), and Economic Transformation Programme; Thailand’s Agriculture 4.0, 12th National Economic and Social Development Plan (2017–2021), and National Science Technology and Innovation Policy and Plan; Indonesia’s Smart Farming 4.0 and Master Plan for the Acceleration and Expansion of Economic Development; Vietnam’s Master plan on high-tech agricultural parks and zones through 2020, with a vision toward 2030 and The National Assembly Plan; the Philippines’ Smarter Agriculture and The National Science and Technology Plan (2002–20). 5. Across 21 European Union and OECD countries, the share of farmers with no formal training in agriculture was 73.8 percent in 2005 and 55 percent in 2010, with basic training was 14 percent in 2005 and 34.5 percent in 2010, and with full training was 12.2 percent in 2005 and 10.4 percent in 2010 , based on data from EUROSTAT’s Farm Structure Survey (https:// ec.europa.eu/eurostat/statistics-explained/index.php?title=Farm_structure_survey _–_survey_coverage) 6. Korea has tried to improve both the attractiveness of agriculture among youth and farmer education levels. The share of agricultural high school graduates who become self- employed farmers is about 1 percent. At the tertiary level of education, approximately 30,000 students are enrolled in agricultural colleges and universities; of these, the rate of becoming a self-managed farmer is about 7 percent (OECD 2018b). 7. The focus of investment varies widely from economy to economy. 8. For example, the Netherlands has moved from potatoes to seed potatoes and from protected horticulture production to a strong global position in the high-tech industry of greenhouse construction (Dons and Bino 2008). 9. China spent about 2.1 percent of GDP on overall R&D in 2015, which is close to the EU15 (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, United Kingdom) average, and slightly lower than the OECD average of 2.4 percent. The gap with the OECD average has been narrowing compared with the early 2000s (OECD 2016).
