|
Rethinking Taiwan¡¦s
agriculture
By Eric Chiou ªô«³§»
Last month, the news that a 69-year-old farmer attempted suicide because of the
delayed delivery of mechanical reapers drew attention to the plight of farmers
and revealed the prevailing sense of gloom in the agricultural sector.
A few days ago, a member of Academia Sinica, Chou Chang-hung (©P©÷¥°), warned that
the government¡¦s agricultural policies overwhelmingly rely on subsidies and lack
long-term planning and vision, which has not only impeded progress in the
sector, but also allowed its labor force and production value fall into a
downward spiral.
In the past, agriculture was been the cornerstone of the nation¡¦s economy. Rice
and sugar were two major Taiwanese exports. Not only was the banana the emblem
of Formosa, agricultural goods comprised more than 90 percent of exports in the
1950s.
However, those days have long since passed and the agricultural sector last year
accounted for just 1.72 percent of GDP and less than 5 percent of total
employment. As for agricultural trade, not only has Taiwan changed from a
food-exporting country to a food-importing country, it also accumulated an
agricultural trade deficit last year of US$10.18 billion.
The ratio of Taiwan¡¦s agricultural exports to total exports shrank to 1.6
percent last year and its food self-sufficiency rate (based on calories) dropped
to 32.7 percent in 2008, lower than Japan¡¦s 41 percent and South Korea¡¦s 44
percent.
Coupled with the recent debate over beef imports containing the feed additive
ractopamine and the Dapu (¤j®H) farmland controversy, the suicide attempt of a
farmer is a heartbreaking wake-up call, indicating that the predicament of
Taiwanese agriculture may be attributable to misguided policies and long-term
negligence, as Chou said. This deplorable neglect of agriculture not only stems
from the faulty premises held by policymakers, but may also derive from their
lack of understanding about the complex relationship between people and land.
In essence, the significance of agriculture lies in the following indisputable
truth: The survival of human beings relies on the provisions of nature.
Agriculture provides the majority of life-supporting goods to a society. From a
political perspective, every country¡¦s primary task is to supply its citizens
with access to sufficient, healthy and affordable food. This prevents famine and
thereby reduces the odds of hungry people rioting and staging a revolt against
the government. Hence, one of the foundations on which the legitimacy of modern
states are built, is that ability of a government to guarantee the subsistence
of the people. Far-sighted political leaders with an interest in their political
survival rarely overlook the importance of agriculture since they recognize the
pivotal role it plays in maintaining peace and political stability.
However, industrialization and, more recently, globalization have given rise to
flawed and specious arguments that play down the importance of agriculture. For
example, agriculture is now portrayed as a waning industry, which discourages
young people from taking an interest in the sector.
Without the input of new labor, we can hardly expect cutting-edge agricultural
technologies, efficient managerial skills and modernized marketing expertise to
enhance agricultural productivity on their own. Over the years, the government¡¦s
policies have not merely failed to reverse this vicious cycle, but have
exacerbated the situation.
Additionally, since Taiwan joined the WTO and began implementing trade
liberalization, overseas agricultural products have flooded the domestic market
and changed the food supply structure dramatically. As extravagant bread becomes
the latest fad in Taipei, Taiwan¡¦s consumption of rice, the traditional staple,
has dropped significantly. The danger of being a food-importing country is that
the government surrenders its responsibility of food provision to capricious
international food markets. The 2008 global food crisis demonstrates this point
alarmingly well by not only revealing the scarcity in international food
markets, but also highlighting the extreme volatility of food prices.
That crisis also made clear that Taiwan, with its debilitating dependence on
food imports, is very vulnerable to the consequences of events like droughts in
the US or flooding in Australia. Furthermore, international food agencies
predict that food prices on international markets are set to remain higher than
food prices in 2005. With the rapid economic growth of emerging countries and
soaring demand for biofuel, the cost of importing food is likely to increase. In
addition, all countries, including food-exporting countries, prioritize domestic
food needs over food exports in order to safeguard food security. As a result,
Taiwan¡¦s historically unprecedented low rate of food self-sufficiency is
precarious and needs to be taken seriously.
Moreover, it is misleading to calculate the contribution of agriculture solely
based on a narrow definition of economic output. In addition to providing food,
agriculture also serves other functions, such as environmental conservation,
ecological protection and recreational activities, which are not been taken into
account when calculating agricultural GDP figures.
More importantly, agriculture preserves the way in which people have interacted
with nature for generations. While the progress of industrialization has
alienated most people from the land and destroyed the subtle balance between
humans and nature, villages in the countryside are the last sanctuary for the
heart, soul, and spirit of the nation and its people. This explains why many
European countries have made enormous efforts to preserve and revitalize
agriculture and rural areas.
In the face of strong global competition, agriculture should not just be viewed
as an obstacle stymieing Taiwan¡¦s efforts at trade liberalization which sucks up
subsidies.
While institutional incentives to elicit private investment and more labor for
the agricultural sector remain important initiatives, more public investment and
well-planned policies to realize the promising prospects of agriculture should
be carried out first. The future of national agriculture not only relies on the
political determination of the government, but also hinges on how Taiwanese view
their homeland.
Ultimately, the revival of agriculture is a matter of how Taiwanese want their
children to grow up, to interact with their environment, to understand their
grandparents¡¦ folk stories and to dream about the future.
Eric Chiou is an associate research fellow at the Taiwan Institute of
Economic Research.
|
