PERIURBAN POVERTY REDUCTION THROUGH LINKING COMMUNITY AND BUSINESS IN SOUTH EAST ASIA

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PERI-URBAN POVERTY REDUCTION THROUGH LINKING
COMMUNITY AND BUSINESS IN SOUTH EAST ASIA

• GADJAH MADA UNIVERSITY TEAM
• November 2005

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I. INTRODUCTION

• A. Back ground
• Poverty is a global problem, where difference
  country face different intensity of poverty and
  develop a different strategy to alleviate poverty
• The high incidence of poverty in South East Asia
  may be reduced by participating all of
  stakeholders including private sectors

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Back ground

• In September 2000, 193 member of United Nations
  ratified the Millinium Development Goals (MDGs)
• One of the target of MDGs is eradicate extreme
  poverty and hunger in the world by 2015

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Back ground

• Farmer is the most poor people in South East Asia
  where main job of the people is in agricultural
  sector
• Every country in South East Asia have poverty
  data in rural and urban area but poverty data in
  peri-urban area was not found

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Back ground

• Peri-urban area faced different poverty incidence
  than urban or rural area peri-urban (interface)
  faced urban problems such as urban waste disposal
  problem and rural environtmental problems
• Peri-urban area has more opportunity in creating
  diversivication of income generating both from
  agricultural and non agricultural sectors such as
  tourism, trading and industrial manufacture.
• Peri-urban bridging the rural potencies and urban
  demand

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Existing partnership program to improve the
farmer production in black soybean development

• Some farmer in rural and peri-urban area in
  Bantul district, Yogyakarta province have
  participated the partnership program with
  multinational industry in developing black
  soybean facilitated by university and government
• The program support development of farmers group
  as village middlemen in supply chain of black
  soybean

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Existing partnership program to improve the
farmer production in black soybean development

• The development of small enterprise in supply
  chain of black soybean by farmer cooperation
• Capacity building of farmer in technological
  skill, knowledge, quality and safety of black
  soybean
• Creating a new job for women groups to generate
  income
• Assisting model to improve farmers attitude in
  agricultural production especially black soybean
  development

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B. Problems Statement

• The caused of poverty in peri-urban area may be
  different with factors in rural and urban area.
• The existing program was not design properly in
  reducing poverty in peri-urban area.
• The existing program should be studied in
  possibility to solve the problems in peri-urban
  and rural poverties.

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Problem Statement

• How far the program able to reduce the amount of
  poor families both in rural and peri-urban area.
• Impact the program on income generating of poor
  farmer
• Effectiveness of program in increasing skill ,
  knowledge, and technology in producing black
  soybean which meet industrial standard.
• Changes 0f farmers attitude in food crop
  cultivation and agribusiness development
• Factors which inhibit the partnership program
• How far the program give benefit to women
  farmers
• Effectiveness the partnership model in enhancing
  developing of small business in supply chain

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C. Goal and Objectives

• The goal of the study is to find out the
  relationship of partnership model of community
  and business in reducing poverty in peri-urban
• The specific objectives will be
• 1. To find out the number of poor household
• in peri-urban area
• 2. To find out factors of poverty incidence in
  
• peri-urban area

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Goal and Objectives

• 3. To evaluate the partnership program of
• community and business on the income
• generating of poor people
• 4. To evaluate the effectiveness of
  partnership
• in increasing quality of products and
  attitude changing of farmer
• 5. To find-out factors which might be inhibit
  the
• partnership program
• 6. To evaluate the effectiveness of the model
• partnership in development of small
  business
• in supply chain
• 7. To evaluate the impact of partnership model
  
• for women development

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Expected Benefit

• 1.The farmers become more professional and
  understand of the
• importance of quality and market needs,
  increasing their
• income, and have better social life and
  capable to apply to
• other crop
• 2.Collaboration among farmers, industry and
  university can be
• sustained
• 3.The experience can be extended to other
  commodities
• 4.Industry will get safe and good quality of
  product with secured supply and stable price
• 5.The industry implement Corporate Social
  Responsibility (CSR) to the community
• 6.The government? supporting poverty reduction
  program, and improving human resource quality
• 7.Policy maker have a partnership of community
  and business model in reducing poverty in
  periurban areas

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II. REVIEW

• A. Business and poverty reduction
• B. Poverty profile
• C. Poverty reduction strategy
• D. Increasing agricultural production
• E. Case study of community-business
• partnership in Yogyakarta province

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A. Business and Poverty Reduction

• Factors could lift people out of poverty
• 1. Access to affordable products
• and services
• 2. Access to economic opportunity (employment,
  business linkages, other income generating
  opportunities, access to credit, new technologies
  and traning)

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Business and Poverty Reduction

• Companies should help the achievement of MDGs
  through
• 1. Core business
• 2. Social Investment
• 3. Policy advocacy
• Business and poverty is one cluster to support
  MDGs

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Business and Poverty Reduction

• Program development
• 1. Resource management
• 2. Micro, Small and Medium
• Enterprise (MSMEs) support
• 3. Social enterpreneurship

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Business and Poverty Reduction

• 1. Resource management
• - Community training
• - Livelihood development
• - Incorporating community to be
• part of the supply chain

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Business and Poverty Reduction

• 2. MSMEs development
• - Capacity building promote
• productivity and competitiveness
• - Incorporate MSMEs as a part
• of product supply chain

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Business and Poverty Reduction

• 3. Social enterpreneurship program
• - Generating busines opportunity
• for the poor communities
• - Devoted product price () to
• gear MDGs projects
• - Allocating part of profit for
• MDGs project funding

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B. Poverty Profile in South East Asia
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Proverty Profile

• Factors caused poverty in agricultural sectors
• 1. Big family size of poor household
• 2. Land ownership lt 0.1Ha or landless
• 3. Limiting access and control on production
  factors
• 4. Limiting access on market information and
  market
• alternatif
• 5. Uncertain income
• 6. Limiting access and control of women on
• economic opportunity
• 7. Low infrastructure facilities (water
  irrigation, road
• condition, communication etc)

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Limited land ownership (lt0.1Ha)
6m
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C. Poverty Reduction Strategy

• Poverty reduction plan through
• 1. Macroeconomic strategy (emplyoment growth
• in agric. sector with main source the poor)
• 2. Productivity improvement of poor people
• 3. Lessening the expenditure of poor people to
• have access to basic, social and economic
• services (social safety net improvement)
• 4. The natural resources management strategy
• (better land and water management)
• 5. Public sector structuring strategy

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D. Increasing Agricultural Production

• Developing specific area in a specific crop
  development
• Farmer capacity building in good agricultural
  practices
• Development of partnership program with business
• Improving the quality and safety of farmer
  products
• Development of market channel and information
  system
• Development of marketable agric-products

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E. Case Study Partnership program
development in Yogyakarta province

• Yogyakarta is special province has population
  around 3,327,954 people with population density
  1,045/km
• Natural resources in Yogyakarta is poor but
  cultural and human resources is slightly high
• Around 32.8 of total population in DIY is
  categorized poor (Dinas sosial propinsi DIY)

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1. Poverty in Yogyakarta

• Two kind of poverty
• a. Cultural poverty, related with
• attitude and way of life
• b. Structural poverty, related with
• unfair of access to natural
• resourcess, economic and politic

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2. Strategy of Poverty Reduction in YK

• a. Direct aid program (ssn, sdp, BBM
• subsidized, P2KP)
• b. Subdistric as center of economic
• development program (KPPE)
• c. Agricultural development program
• d. Partnership program with private sector
• e. Micro business development program

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3. Partnership Program for Poverty Reduction

• Partnership program with private sector to reduce
  poverty in Yogyakarta have been done in
  agriculture sector and industrial sector through
  community empowerment both in agricultural sector
  and in industrial sector

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Partnership Program for Poverty Reduction

• The recruitmen of employee for new industry in
  Bantul area should come from poor people of the
  household surronding the industry
• Credit for farmer to raise cow with low interest
• Business linkage between black soybean farmers
  and soy sauce industry facilitated by GMU

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PROBLEMS DEVELOP IN PARTNERSHIP

• Technical problems in cultivation
• Commitment Problems of farmer
• Communication problems among group of farmer and
  assistant
• Environtmental problems due to weather changing
• Technological problems in post harvest
• Problems of farmers time in post harvest
  technology
• Implementation business problems

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III. METHODOLOGY

• A. Poverty logical framework
• B. Sampling Procedure
• Mapping of the typology of peri-urban area
  (physical, social, and economic attributes)
• Selection of targeted area
• Household survey
• Participatory Rural Appraisal for developing
  program in poverty reduction especially linkage
  with business

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III. METHODOLOGY

• B.Sampling Procedure
• 5. Partnership program evaluation
• Effectiveness of the program in reducing poverty
  in peri-urban area
• Impact of the partnership program on income
  generating
• Effectiveness of the program in incraesing
  skills, knowledge and technology development

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III. METHODOLOGY

• d. Evaluation of factors which inhibit the
  program
• e. Evaluation of problems development during
  program planning, implementation and evaluation
• f. Effectiveness of the program in developing
  small business in supply chain
• g. Evaluation on livelihoods
• h. Access and control of women in creating
  economic development
• i. Household income generation of farmer
  participate in the program

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A. Poverty logical framework
Farm Household Resources -Land -Labor -Capital -Ma
nagement
Infrastructure -Road -Agriculture
extension -irrigation
Cropping Pattern Cropping Intensity Farm
Productivity Farm Production
Farm Income Non-farm Income
Market -Labor -Agriculture input -Agriculture
output
Poverty
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Poverty logical framework

• Incidence of poverty is analyzed by using
  headcount and poverty gap, gini ratio
• Factors affecting poverty is analyzed by logit
  model, probit model and ordinary least square
  model

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Net working of the program
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C. Out put Indicators

• 1. Number of poor household involve in program
• 2. Incidence factors of poverty in PU
• 3. Livelihood improvement of poor household
• 4. Percentage of increasing income
• 5. Number of trained farmers and professional
• farmers
• 6. Number of farmers group develop as village
• midlemen in supply chain
• 7. Number of MSMEs as a supply chain partners of
• multinational company
• 8. Income generating by women group

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IV. PROJECT ACTIVITIES
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IV. PROJECT ACTIVITIES
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PARTNERS and Possible access of Organization

• The Phillippine Xavier University, Puvep,
• Thailand Faculty of Agriculture at Kamphaeng
  Saen
• GermanyFreiburg University, Justus Liebig
  University
• Other EU countries or South East Asian Countries?

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THANK YOU
Prambanan Temple, see you there
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Target Peri-Urban Community (Socialization)
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Women and income generating
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STUDY ON FARMER AND SMES EMPOWERMENT IN
PERIURBAN AREA TO STRENGTHEN FOOD SECURITY AND
SOCIAL-ECONOMIC WELFARE

• GADJAH MADA UNIVERSITY
• YOGYAKARTA- INDONESIA

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INTRODUCTION

• In 2010, Indonesian population projected to reach
  253 million and 316 million by 2020.
• In 2010, the estimated soybean demand is 3.87
  million ton will be fulfilled by domestic
  production (2.65 million ton) and import (1.22
  million ton)
• The import of soybean in 2020 is estimated to
  increase to 1.6 million ton if the domestic
  production does not increased

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INTRODUCTION

• The increase of soybean import occurs due to less
  awareness of farmer on soybean quality to meet
  market demand and soybean is not consider as a
  main crop ? less attention from the farmer. Less
  attention from researcher and government.
• The need of industry on black soybean should be
  response by farmer under fasilitator of
  researcher (develop a model)

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Farmer-SMEs-Industry Collaboration
F
F
F
F
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INTEGRATED PROGRAM OF BLACK SOYBEAN (BS)
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FARMER EMPOWERMENT

• Knowledege, skill, technique, attitude,
• of soybean cultivation, GAP, post harvest
  technology, industrial standard quality,
  management, leadership, networking. Develop black
  soy farmer association
• Method Participatory FGD Field school
  assistancy consultancy training media
  development senior farmer development

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SMES EMPOWERMENT

• Business management, credit, accounting,
  tax,insurance, internet, seed packaging and
  storage, seed quality grading, seed
  transportation.
• Method training, FGD, assistancy and
  consultation

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EVALUATION OF MODEL
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Goals of farmer SMEs empowerment

• To change the mind set of the farmer and SMEs to
  become more professionals
• To facilitate farmer and SMEs to do linkage to
  private sector (industry)
• To give an opportunity of farmer to do on farm
  research for developing local variety of black
  soybean
• To provides farmer to develop network with other
  stake holders

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Problem Statement

• Farmer and SMEs empowerment in the form of
  integrated agribusiness system model has been
  implemented for three years.
• How far the effectiveness of the program
• How far the influence of the empowerment on mind
  set changing of the farmer (it has not been
  evaluated, yet)
• What is the impact of the program on
  socio-economic welfareand food security.
• How far SMEs can sustain the agribussiness
  system.

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Objective of the study

• To develop indicators for evaluating the
  effectiveness of the model in changing farmers
  and SMEs mindset towards professional ones
• To evaluate the knowledge to the farmer on
  precision farming and technology of soybean
  cultivation
• To analyze factors that influence success of
  improving farmer mindset in local black soybean
  development
• To evaluate the social economic welfare impact of
  the program
• To study food security of farmer house hold
• To study sustainability of the program on
  developing local black soybean

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Scope of Study

• Farmer mindset on good quality production of
  local black soybean
• Effectiveness of model developed by university
  and industry integrated agribusiness system
• Impact of model implementation on social-economic
  welfare of farmer household
• Possibility of model to support food security