Forschung zur Entwicklungsökonomie und -politik / Research in development economics and policy

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Visualizing rural financial market research in Northern Vietnam through pictures
(2003) Geppert, Meike; Dufhues, Thomas Bernhard
One of the many tasks of financial market research is to develop client-oriented financial products. In order to ensure that the financial products reflect the necessities and preferences of the clients, profound participation of the target group throughout the whole research process is important. The use of pictures reduces problems of understanding and makes communication more interesting since everybody is now an insider in the discussion and can thus contribute his or her opinion. The use of pictures in research enhances participation and the research findings will be more target-group oriented. The extent to which the expense associated with using pictures in research ? which is not to be underestimated ? justifies the gains in terms of the information and data collected is rarely assessed. This article is addressed to researchers who investigate in similar situations and will offer them a basis of experience that they can take advantage of. The authors assume that information about the usefulness of the different techniques applied might be most interesting for other researchers. They conclude that the use of pictures in financial market research revealed some interesting results, albeit sometimes at quite a high cost. Nevertheless, the impact of supportive pictures on the quality of new knowledge is difficult to assess, since we have no way of answering the question of whether it would have been possible to obtain the same information without the suppor of pictures.
Towards demand-driven financial services in Northern Vietnam: a participatory analysis of customer preferences
(2003) Dufhues, Thomas Bernhard
Analyzing secondary and primary data, this paper suggests a shift in national development policies from solely promoting rural credit to supporting savings activities. The household data are econometrically analyzed applying the Conjoint Analysis (CA). The CA gave valuable insights into how to improve outreach of formal financial institutes (FFIs) by adapting the credit products to client preferences and revealed an unattended demand for savings instruments. Due the enormous credit outreach of the FFIs in Vietnam, it would be more efficient to launch a credit consolidation policy and to implement a reliable and sustainable deposit collection system at the village level. However, in national policymaking a paradigm change must take place and the capability of rural households to save needs to be recognized by policy-makers.
Regional development perspectives in Vietnam: insights from a 2002 provincial social accounting matrix (SAM)
(2004) Heidhues, Franz; Breisinger, Clemens
Growing regional disparities in Vietnam have encouraged plans to extend the national Comprehensive Poverty Reduction and Growth Strategies (CPRGS) to the provincial level. The northern mountainous province of Son La has distinctive development perspectives. It was selected as the site of Vietnam?s planned biggest dam and hydroelectric power plant. Large-scale infrastructure investments are expected to contribute to economic growth and poverty reduction in the region. The impacts of these investments on the regional economy can be assessed with a multiplier model based on a regional social accounting matrix (SAM). In this paper, we present a 2002 SAM for Son La. To shed light on the socioeconomic situation, we review insights from this detailed database. A SAM-based multiplier model is then put forward to examine linkages within the provincial economy and to present first results of demand-side effects of infrastructure investment in the local construction sector.
Assessing participation in agricultural research projects: an analytical framework
(2004) Neef, Andreas; Neubert, Dieter
Recent discourse in the field of agricultural research has focused on how to assess and optimize the use of participatory approaches. In this paper, we propose a new Analytical Framework for the Assessment of Participatory Agricultural Research (AFAPAR) that seeks to evaluate participatory research elements along different dimensions and over several research phases and thus takes into account the complexity and dynamics of agricultural research projects. Empirical data from a long-term collaborative research program on ?Sustainable Land Use and Rural Development in Mountainous Regions of Southeast Asia? (The Uplands Program ? SFB 564) are used to explore the potential and shortcomings of AFAPAR. Findings suggest that while there is a need for further refinement, the analytical framework provides a sound basis for a differentiated assessment of participatory approaches in agricultural research that goes beyond the existing one-dimensional typologies of participatory research with their inherent claim of ?the more participation, the better?.
Media supported communication in agricultural extension and participatory rural development in Northern Thailand
(2004) Fischer, Isabel
The inhabitants of Northern Thailand, Thais as well as the members of the different ethnic groups, the so-called hill tribes, face a variety of very complex problems that range from natural resources conflicts via human rights issues to health problems. All in all, those issues constitute the initial point of departure for every extension, development and research activity, regardless of whether carried out by governmental, non-governmental organizations and/or other agencies. In order to analyze the current extension situation in Northern Thailand, field research was carried out in collaboration with different governmental and non-governmental organizations. Insights were gained into major areas of operation as well as currently used extension methods and media (especially picture supported communication tools) that are used in extension and rural development work, particularly when the target group is illiterate. Three organizations were observed in more detail and will serve as case studies. The paper presents Methods and Media Used by Different Organizations as well as major Criteria for Using Media in Extension and Development Work. Furthermore, the Application of Criteria for Different Methods and Media will provide the basis for the discussion of major potentials and limitations of currently used media in comparison to the Flannelgraph method, which was chosen as a major methodological tool of reference. In summary, it appears that the extension situation in Northern Thailand is too heterogeneous to identify the one ?right? extension approach. The use of media and the choice of extension methods depend on specific financial, logistic, methodological and cultural criteria as well as further issues, such as infrastructure, target group and the costs of the respective tool. In order to increase the potential and decrease the limitations of the currently used methods, the organizations have to concentrate on a better use of the already existing means as well as the improvement of those factors that are not fully used at the moment.
Constraints and potential of livestock insurance schemes: a case study from Vietnam
(2004) Fischer, Isabel; Dufhues, Thomas Bernhard; Lemke, Ute
Livelihood systems of poor rural households are often so fragile that a small misfortune can destabilize households for years. Strategies for coping with risk include informal mutual aid agreements and/or formal microinsurance schemes. In developing countries, insurance markets are usually underdeveloped.Nevertheless, if the development path is supported by strong structures and institutions, anonymous markets will, over time, replace informal insurance networks as they are more efficient. In Vietnam, livestock is an important household income source and has additional non-economic functions in the households. For a long time, rural financial institutions in Vietnam financed only a small array of agricultural investments, but these frequently included livestock purchase. The absence of off-farm investment possibilities further promotes investment in livestock production. Failure of an investment, especially when loan-funded, can leave a household in an extremely vulnerable position. Livestock death is considered to be a major factor contributing to poverty. Farmers using credit to purchase livestock face two risks at once: (1) loss of the livestock due tovdisease and subsequently (2) failure of investment. Farmers would like to reduce the uncertainty, but a broad-based livestock insurance scheme does not exist in Vietnam. There are only a few formal and semi-formal schemes with very limited outreach. Thus, access to formal insurance is almost non-existent, and farm households have to rely mainly on informal mutual aid schemes within their social networks to reduce their risks. The objective of this paper is to contribute to the discussion on the general feasibility of a livestock insurance scheme in Vietnam. In this context, the demand for and supply of livestock insurance schemes is discussed. Quantitative (N=322) and qualitative data collection took place between 2001 and 2004. The quantitative data comprise cross-sectional household-level data from three different districts in Northern Vietnam. Four different types of insurance providers were selected for analyzing the supply side: 1. Insurance tied to credit within a state-owned company; 2. Insurance tied to credit within a development project; 3. A state-owned insurance company (which collapsed); 4. A private insurance company. By selecting these different insurance providers, the range of livestock insurance types offered in Vietnam was covered. The main result is that provision of sustainable livestock insurance is hampered principally by unreliable data on livestock mortality and by premia that are set politically at a low evel.
On the distribution and adoption of genetically modified seeds in developing countries
(2004) Basu, Arnab; Qaim, Matin
Given the proprietary nature of most genetically modified (GM) seed technologies, the question arises as to how farmers in developing countries can gain proper access to these innovations. Based on empirical observations, a theoretical model is developed which focuses on farmers? adoption decisions in response to the pricing strategies of a foreign patent holder and the government. If the government is able to commit to the announced policy, subsidizing the use of traditional seeds can increase coverage of GM technology and domestic welfare. The possibility of the government obtaining a license to distribute GM seeds domestically through a transfer to the monopolist is also considered.
Comparative advantage of Vietnam's rice sector under different liberalisation scenarios: a policy analysis matrix (PAM) study
(2004) Nguyen, Manh Hai; Heidhues, Franz
The rapidly changing global economic environment and domestic economic reforms in Viet-nam have brought the issue of comparative advantage of the rice sector to the forefront. In recent years, Vietnam has had to compete in an increasingly competitive rice export market. This paper examines the fluctuations in the comparative advantage of Vietnamese rice production based on different scenarios of trade liberalisation and economic reform in Viet-nam. To do this, a Policy Analysis Matrix (PAM) was used in conjunction with an econo-metric model. The study involved simulation of a large number of scenarios of trade liberalisation and macroeconomic reform, using variations in a single factor and in a group of factors such as product price and input costs, i.e., the price of imported fertilisers, land, water and labour costs, etc. The empirical results show that in 1998 (the baseline scenario), the comparative advantage in rice was relatively high and that the use of domestic resources ? i.e., land, labour and water ? was efficient in economic terms. The estimated DRC elasticities in respect of the world rice price and the shadow exchange rate in 1998 showed a considerably improved com-parative advantage. The estimated DRC elasticities for land rent, the social costs of labour, the import price of fertilisers and irrigation water charges were small in absolute values indi-cating small and negative impacts on comparative advantage with a rise in these prices. The results of sensitivity analyses revealed that the comparative advantage of rice is very sensitive to changes in its export price. In addition, the exchange rate and land rent are also important determinants of the rice sector?s comparative advantage in Vietnam. Other empirical results show that Vietnam is still likely to retain its comparative advantage in rice production in the next decade; however, its comparative advantage might be seriously affected or even dis-appear entirely if Vietnam is exposed to a number of unfavourable economic conditions simultaneously. The major recommendation of this paper is that production should be diversified, with appropriate agricultural policy support, within a broader framework of macroeconomic transformation and trade liberalisation.
Debt position of developing countries and new initiatives for debt reduction: a panel data fixed effects estimation of the impacts of the HIPC initiatives
(2005) Houssou, Nazaire; Heidhues, Franz
In September 1996, the World Bank and the International Monetary Fund launched the Heavily Indebted Poor Countries Initiative (HIPC). This initiative was endorsed by 180 governments around the world as an effective and welcome approach to help poor, severely indebted countries reduce debt as a part of the overall poverty reduction strategy. Three years later, the initiative was enhanced to provide for faster, broader and deeper debt relief. Using a panel data fixed effect estimation, this study assesses the achievements of the first and second HIPC initiatives and explores further areas of intervention that might help the HIPCs graduate from debt rescheduling and achieve sustainable growth and poverty alleviation. Despite moderate achievements of the HIPC measures so far, this paper argues in favour of a HIPC III initiative. Much more relief is needed to link debt reduction to poverty alleviation if the expectations raised by the HIPC initiatives are to become reality.
Outreach of credit institutes and households' access constraints to formal credit in Northern Vietnam
(2005) Dufhues, Thomas; Buchenrieder, Gertrud
Abstract Most policy and research interest regarding rural credit markets revolves around the perception that poor households in developing countries lack access to credit, which is believed to have negative consequences for household welfare. An important feature of the rural credit market is that access to credit is easier for some groups than for others. The Vietnamese government supplied credit on preferential terms, particularly to rural households, throug state-owned financial intermediaries. The share of the informal sector was thus considerably reduced from 78% (1992/93) of all outstanding loans to 54% (1997/98) in favor of the formal sector. However, there is evidence from other developing countries that credit constraints persist despite the expansion of rural finance. Hulme and Mosley (1996) state that there is increasing evidence that the poorest 20% of the population are excluded from rural credit programs. Thus, even in Vietnam the question remains: did the Vietnamese government succeed in reaching the poor, or do groups of people exist who are still access-constrained? Quantitative (N=260) and qualitative data collection took place between March 2000 and 2001. The quantitative data comprise cross-sectional household-level data from two different districts in Northern Vietnam. The poverty outreach of formal rural lenders was analyzed using Principal Component Analysis, while access to formal credit was investigated using a binary logit analysis. The poverty outreach of the formal lenders is quite satisfactory since about 50% of all predominantly poor rural households have access to formal credit. However, the poorest households are seldom clients of formal lenders. Yet, it is not their extreme general poverty that determines their access to formal credit. The results indicate that only certain aspects of poverty, e.g. low quality of housing, have an important influence on access to formal credit in Vietnam. The poorest households simply have much less demand for formal credit. Offering new credit products would only slightly improve the credit coverage of poorer households. More promising would be a specialized pro-poor extension service to widen the scope of their investment ideas and possibilities, combined with general improvement of the infrastructure. All in all, the most appropriate tool to incorporate poorer households into the formal financial system would be mobilization of savings. Nevertheless, the number of access-constrained households is surprisingly low. One reason for the low number is the weakening or eradication of former access constraints. Some acces barriers do still exist, e.g. towards ethnic minorities or female-led households. To reduce these access barriers, the actions to be taken should be catering to the specific needs and the circumstances of those households that lack access.
Agricultural sciences in upland Northern Vietnam : situating research in a dynamic environment
(2006) Friederichsen, Rupert
This paper aims to provide an introductory overview over the socio-cultural context of Northern Vietnam to agricultural researchers. The paper focuses on the interplay between Vietnam?s lowlands and the uplands to specify what makes the Northern uplands a distinct region; as an object of empirical agricultural research and as a context of application of research results. The paper reviews the developments of selected social institutions from pre-colonial times to the current era of ?renovation?. First, developments in Vietnam?s legal and administrative structures are outlined. Second, education and higher education, particularly the agricultural sciences, are discussed. The third and main part elaborates on social, political, and economic specifics of the Northern Uplands. It is suggested that the relationship between formal and informal institutions is crucial for understanding the dynamics of contemporary uplands Vietnam, particularly in the given multi-cultural situation.
Potential impacts of iron biofortification in India
(2006) Bhutta, Zulfiqar A.; Stein, Alexander J.; Qaim, Matin; Meenakshi, J. V.; Nestel, Penelope; Sachdev, H. P. S.
Iron deficiency is a widespread nutritional problem in developing countries, causing impaired physical activity and cognitive development, as well as maternal mortality. Although food fortification and supplementation programmes have been effective in some countries, their overall success remains limited. Biofortification, that is, breeding crops for higher micronutrient content, is a relatively new approach. We propose a methodology for ex-ante impact assessment of iron biofortification, which builds on disability-adjusted life years (DALYs) and a large household data set. Our analysis of iron-rich rice and wheat in India indicates sizeable potential health benefits. The cost-effectiveness of iron biofortification compares favourably with other interventions.
Can genetic engineering for the poor pay off? : an ex-ante evaluation of Golden Rice in India
(2006) Qaim, Matin; Sachdev, H. P. S.; Stein, Alexander J.
Genetic engineering (GE) in agriculture is a controversial topic in science and society at large. While some oppose genetically modified crops as proxy of an agricultural system they consider unsustainable and inequitable, the question remains whether GE can benefit the poor within the existing system and what needs to be done to deliver these benefits? Golden Rice has been genetically engineered to produce provitamin A. The technology is still in the testing phase, but, once released, it is expected to address one consequence of poverty ? vitamin A deficiency (VAD) ? and its health implications. Current interventions to combat VAD rely mainly on pharmaceutical supplementation, which is costly in the long run and only partially successful. We develop a methodology for ex-ante evaluation, taking into account the whole sequence of effects between the cultivation of the crop and its ultimate health impacts. In doing so we build on a comprehensive, nationally representative data set of household food consumption in India. Using a refined disability-adjusted life year (DALY) framework and detailed health data, this study shows for India that under optimistic assumptions this country?s annual burden of VAD of 2.3 million DALYs lost can be reduced by 59.4% hence 1.4 million healthy life years could be saved each year if Golden Rice would be consumed widely. In a low impact scenario, where Golden Rice is consumed less frequently and produces less provitamin A, the burden of VAD could be reduced by 8.8%. However, in both scenarios the cost per DALY saved through Golden Rice (US$ 3.06-19.40) is lower than the cost of current supplementation efforts, and it outperforms international cost-effectiveness thresholds. Golden Rice should therefore be considered seriously as a complementary intervention to fight VAD in rice-eating populations in the medium term.
Vitamin A and iron consumption and the role of indigenous vegetables: a household level analysis in the Philippines
(2006) Weinberger, Katinka; Qaim, Matin; Ecker, Olivier; Hönicke, Mireille
Micronutrient malnutrition is a public health problem in many regions of the developing world. Severe vitamin A and iron deficiencies are of particular concern due to their high prevalence and their serious, multiple health effects on humans. This paper examines dietary patterns and nutrient intakes, as well as their socioeconomic determinants among households in the Philippines. Since promotion of indigenous vegetables is often considered as an avenue to reduce micronutrient malnutrition, special emphasis is placed on analyzing the contribution of this particular food group to household vitamin A and iron intakes. We use a sample consisting of 172 resource-poor households located in peri-urban areas of Laguna Province. A 24-hour food consumption recall allows for detailed, meal-specific examination of diets. Results of the dietary analysis suggest that fish is of major importance for vitamin A and iron intakes. But also vegetables, and especially indigenous vegetables, play an essential role for balanced household diets. In order to determine socioeconomic factors influencing vitamin A and iron intakes, we employ an econometric model, which shows that deficiencies are strongly associated with low household incomes and poverty. Thus, poverty alleviation will help reduce the problem of micronutrient malnutrition in the medium and long run. However, in the interim, more targeted interventions will be needed. Our results suggest that promotion of indigenous vegetables can play a role in this respect, especially among the poor, who can often not afford sufficient amounts of animal products.
Land property, tenure security and credit access: a historical perspective of change processes in China
(2006) Jia, Xiangping; Piotrowski, Stephan
The North China Plain is the country?s granary: most of wheat and maize is supplied by this region in the northeast of China. Intensity of agricultural production has risen sharply in the last decades and the negative environmental effects like water scarcity, salinization and nitrate contamination have been widely acknowledged. In the wake of the country?s rapid economic development it becomes at the same time more and more urgent to narrow the gap between the well-being of the urban and rural population. In order to better understand the paths that lead to this present dilemma, this paper provides a historical overview of the development of the land and water markets and the rural financial system. It highlights the linkages and reciprocal restraints between these three sectors and gives some conclusions and policy recommendations on how to proceed in order to further a more sustainable development in the North China Plain. Apart from literature review, data from an original farm household survey, conducted by the authors, is used to substantiate the arguments put forth in this paper.
Use of household food insecurity scales for assessing poverty in Bangladesh and Uganda
(2008) Alcarez V., Gabriela; Zeller, Manfred
An important dimension of poverty is access to food. Household food security implies access to the food needed for a healthy and productive life. Lack of access to and/or impaired utilization of food contribute to household food insecurity. This study compares the usefulness of a standardized food insecurity scale for determining the food insecurity status of rural and urban households in Bangladesh and Uganda, and for predicting poverty status. The analysis uses data from the IRIS Composite Survey Household Questionnaire (2004), which consists of 1,587 households (approximately 800 households in each country). The coping mechanisms adopted in the presence of food shortages represent the building blocks for the development of the scale (7 items). In order to assess the suitability of the scale as an estimator of the households? poverty status, the benchmark indicator ?daily expenditures per capita? and its relation to the corresponding poverty line serves as the basis for evaluation for each country. The scale provides the means for classifying the households into 3 main groups: Non Food Insecure, Moderately Food Insecure, and Severely Food Insecure. The reliability of the scale is measured via the Cronbach?s Alpha statistic. In addition, the scale is used in regression analysis in order to predict per capita daily expenditures and the poverty incidence. The results show that food insecurity does not always reflect (income) poverty. However, the use of the scale as a predictor of poverty status produces rough estimates of poverty incidence that could be useful as background information. The differentiation of households according to their food security status may be valuable for focusing and developing improved food insecurity mitigation strategies.
Payments for environmental services : incentives through carbon sequestration compensation for cocoa-based agroforestry systems in Central Sulawesi, Indonesia
(2008) Zeller, Manfred; Seeberg-Elverfeldt, Christina; Schwarze, Stefan
Up to 25 percent of all anthropogenic greenhouse gas emissions are caused by deforestation, and Indonesia is the third largest greenhouse gas emitter worldwide due to land use change and deforestation. On the island of Sulawesi in the vicinity of the Lore Lindu National Park (LLNP), many smallholders contribute to conversion processes at the forest margin as a result of their agricultural practices. Specifically the area dedicated to cocoa plantations has increased from zero (1979) to nearly 18,000 hectares (2001). Some of these plots have been established inside the 220,000 hectares of the LLNP. An intensification process is observed with a consequent reduction of the shade tree density. This study assesses which impact carbon sequestration payments for forest management systems have on the prevailing land use systems. Additionally, the level of incentives is determined which motivates farmers to desist from further deforestation and land use intensification activities. Household behaviour and resource allocation is analysed with a comparative static linear programming model. As these models prove to be a reliable tool for policy analysis, the output can indicate the adjustments in resource allocation and land use shifts when introducing compensation payments. The data was collected in a household survey in six villages around the LLNP. Four household categories are identified according to their dominant agroforestry systems. These range from low intensity management with a high degree of shading to highly intensified shade free systems. At the plot level, the payments from carbon sequestration are the highest for the full shade cocoa agroforestry system, but with low carbon prices of ? 5 tCO2e-1 these constitute 5 percent of the cocoa gross margin. Focusing on the household level, however, an increase of up to 18 percent of the total gross margin can be realised. Furthermore, for differentiated carbon prices up to ? 32 tCO2e-1 the majority of the households have an incentive to adopt the more sustainable shade intensive agroforestry system. A win-win situation seems to appear, whereby, when targeting only the shade intensive agroforestry systems with carbon payments, the poorest households economically benefit the most and land use systems with high environmental benefits are promoted.
Insurance preferences of smallholders : results from an adaptive conjoint analysis in Northern Vietnam
(2008) Buchenrieder, Gertrud; Fischer, Isabel
Livestock plays a pivotal role for smallholder production systems in mountainous Northern Vietnam. Poor rural farm households are vulnerable and their livelihood systems are often so fragile and finely-balanced that a small misfortune can destabilize the households for many years. Economic risks, especially loss of livestock, are one of the major reasons for slipping into poverty. Normally, insurance systems could step in here. In developing countries however, insurance markets are usually underdeveloped. Empirical research reveals that raising livestock and selling it in case of a livelihood emergency is a particularly popular risk management strategy. Based on the results of a computer-based Adaptive Conjoint Analysis (ACA) with 155 responding households of different ethnic minority groups in Son La and Bac Kan provinces of Northern Vietnam, this article examines insurance preferences of rural farm households. In general, smallholders are very interested in livestock insurance. The ?insured animal? is the most important attribute for all respondents and the buffalo is the highest valued animal. However, the critical issue is how to design the insurance package. It is argued that the provision of adapted livestock insurance could help decreasing household vulnerability by a forward looking risk management strategy. Insurance preferences of smallholders are presented and policy recommendations are given to improve the overall situation of vulnerable households in mountainous Northern Vietnam.
Land titling policy and soil conservation in the uplands of Northern Vietnam
(2008) Dung, Pham Thi My; Saint-Macary, Camille; Keil, Alwin; Zeller, Manfred; Heidhues, Franz
In Vietnam, a quasi private property regime has been established in 1993 with the issuance of exchangeable and mortgageable long term land use right certificates. Using primary qualitative and quantitative data collected in a mountainous district of Northern Vietnam, this paper investigates the role of the land policy in the adoption of soil conservation technologies by farmers. This issue is of crucial importance in the region where population growth and growing market demands have induced farmers to intensify agricultural production. While poverty has been reduced, environmental problems such as soil erosion, landslides, and declining soil fertility have become more severe over the past years. Among the abundant literature on the impact of property rights and formal land titles in developing countries, only a few studies have focused on the adoption of soil conservation technologies: an important element in sustainable development strategies of fragile agro-ecological areas confronted with increasing population densities. Our findings suggest that soil conservation technologies are perceived as being economically unattractive; therefore, most upland farmers continue to practice the prevailing erosion-prone cultivation system. Focusing on agroforestry as one major soil conservation option, we estimate household and plot level econometric models to empirically assess the determinants of adoption. We find that the possession of a formal land title influences adoption, but that the threat of land re-allocations in villages discourages adoption by creating uncertainty and tenure insecurity. We conclude that more efforts are needed from decision-makers to promote and support the adoption of conservation practices and to clarify objectives of the land policy in order to secure land tenure and foster sustainable development in fragile areas.
Linkages between poverty and sustainable agricultural and rural development in the uplands of Southeast Asia
(2008) Zeller, Manfred; Beuchelt, Tina; Fischer, Isabel; Heidhues, Franz
Most of the upland areas of Southeast Asia are characterized by insufficient infrastructure, low productivity in smallholder crop and animal production, mounting environmental problems such as soil and forest degradation and loss of biodiversity, increasing population pressure, and widespread poverty, particular in rural areas. While some upland areas in South East Asia have been experiencing considerable progress during the past twenty years, others have stagnated or even declined with respect to economic, social and environmental objectives of development. The purpose of the paper is to describe major trends regarding sustainable development in the upland areas of selected countries in South East Asia, and review explanatory approaches for the observed trends based on case studies from Cambodia, Laos, Thailand, Vietnam, and Indonesia. The conceptual framework for this paper builds on the critical triangle of sustainable rural development. Here, equity or poverty alleviation, economic growth, and the protection of the environment are the three major policy objectives. We further distinguish three explanatory approaches for land use change and agricultural and rural development. Apart from the market approach and the population approach, we suggest that future studies should focus more on governance issues as a major driving force of land use change. The governance approach appears particularly relevant for upland areas which are often politically and institutionally marginalized. The paper begins with a review of definitions of sustainability, and proceeds with a conceptual analysis of the two-way linkages between poverty and the environment, and poverty and economic growth in rural areas. This is followed by empirical findings from research on agriculture and forestry as the major land uses in upland areas of selected South East Asian countries. Based on the results of different case studies from Cambodia, Laos, Vietnam and Indonesia, we seek to contrast stories of relative success with those of failure. The paper concludes with implications for rural and agricultural development policies, and suggests future areas of research.

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