Asia-Pacific Development Journal - Volume 17, Issue 1, 2012

A multiple equilibriums poverty trap model is developed to analyse the effectiveness of State policy in developing and applying policies aimed at reducing poverty, i.e. pro-poor policies. The implication of this model is that, if poverty is concentrated in agriculture, then a necessary key to breaking out of the low level trap situation (where the State is ineffective in carrying out pro-poor policy) is the creation of a backlog of agricultural technology. However, for this technology to be activated and applied by the State requires that the ruling elite feel themselves to be vulnerable in terms of controlling the institutions of the State. The workings of the model are illustrated by examining the colonial experiences of Taiwan Province of China and the Republic of Korea and comparing it to that of South-East Asia.

This paper proposes an economic computational agent-based framework, referred to here as FarmSIM, to model the micro-level economic and financial behaviour of farmers. We model macro-level external environmental impacts of costs, prices and rainfall through a set of flexible power functions. The framework allows us to trace a “digital future” of a farming community over a number of “seasons”, effectively offering the ability to test an appropriate policy on the community. FarmSIM may provide a valuable test-bed for gaining a direct insight into economic viability and sustainability issues in relation to policy implementation. The paper suggests an evaluation framework, FarmSIM, to assess the efficacy of policy formulation by Governments and other institutions concerned before the policies are implemented. The paper demonstrates the utility of FarmSIM by posing important questions relevant to pricing, profitability and indebtedness in the farming community in the form of simulation models within the FarmSIM framework. Realistic data are used to assess the dynamics and the effects of interactions of core variables over time.

This paper examines whether the increased openness and technological innovation in East Asia have contributed to an increased demand for skills in the region. We explore a unique firm level data set across eight countries in the East Asia and Pacific region. Our results strongly support the idea that greater openness and technological innovation have increased the demand for skills, especially in middle-income countries. In particular, while the presence in international markets has been skill enhancing for most middle-income countries, this is not the case for manufacturing firms operating in China and in low-income countries. We interpret this to be supporting the premise that, if international integration in the region continues to intensify and technology continues to be skilled biased, policies aimed at mitigating the skills shortages should produce continual and persistent increase in skills.

Marine protected areas (MPAs) are considered a common tool for the protection of coastal, marine and fishery resources. Recently, literature on fishery management has been paying attention to the importance of the social dimensions of MPAs and their impacts on MPA success. This paper presents an overview of the management of MPAs in the region of North-Eastern Iloilo, Philippines, and examines the interaction between the civil society and market forces of different institutional arrangements. Using the logit and principal component analyses, the paper shows that the conflicts between economic actors are still in existence today, and knowledge appears as a key factor for evaluating MPA success. Moreover, having MPAs does not seem to bring the communities any other benefit than the stated objectives, such as food security and marine conservation. The paper also discusses how contrasting objectives and expectations from various stakeholders could exacerbate conflict in the management of MPAs.

The King of Thailand’s philosophy of sufficiency economy highlights a balanced way of living. Three principles—moderation, reasonableness, and self-immunity—along with the conditions of morality and knowledge can be applied to any level of the society—from an individual to a country. This article proposes that the philosophy of sufficiency economy conveys new theory in addressing current development challenges, which are issues of institutions, human capital, environmental sustainability and the role of government. The philosophy of sufficiency economy, as a new paradigm of development, aims at improving human well-being as a development goal.

The Development of the Software Industry in Postreform India: Comparative Regional Experiences in Tamil Nadu, Andhra Pradesh, and Kerala is an illuminating attempt by Dr. Rajendra Kumar to develop a coherent analytical framework in order to document and evaluate the reasons behind three successful cases in which high-tech industries were promoted for development and economic growth. Targeted at scholars and policymakers, it is an in-depth look into the role that regional political, cultural and enabling policy environments play in hightechnology-based economic development, focusing on the software industry and information technology-enabled services (ITES) in India. The conclusions and findings of the author are a significant contribution towards understanding the different strategies and options available to developing regions in supporting the growth of this type of industry and making them competitive globally.