The coronavirus disease (COVID-19) pandemic has highlighted food security issues and nutrition gaps in Asia and the Pacific, where various risks and fragilities have continually affected the food and agriculture sector. There is a clear need to integrate sustainable management of natural resources, nutritional considerations, and the economic dimensions of food supply chains to enhance resilience and mitigate climate change. This publication explores how innovative financing and transformative knowledge solutions can help address the financing gaps and other challenges of food systems in the region.

The regional study collects and analyzes recent innovative risk transfer and sharing strategies used by private or public financial institutions and enterprises leading agricultural investments in Asia. It makes an illustration of the channels through which recent strategies overcome obstacles for the delivery of various financial services to agribusinesses, such as long-term loans, savings, insurance, hedging instruments, and leasing. An explanation of the context in which these strategies seem to work is be provided in addition to those constraints that currently limit further outreach to the agribusiness sector, specially to smaller agro-enterprises with growth potential where poorer rural households participate.

In developing countries across Asia, food marketing parastatals have played an important role in agricultural policy, especially with regard to government efforts to stabilize food prices. Three broad market failures constitute the primary arguments for this form of government intervention: a lack of market integration stemming from inadequate infrastructure, the absence or inadequacy of risk-mitigating institutions and markets, and the need to protect the world's poorest communities from a volatile global market. Opponents of such public intervention schemes claim that the old rationales are no longer convincing, that the programs are not cost-effective and do not allocate resources optimally, and that private institutions are strong enough to take over many of the functions traditionally performed by parastatals. In From Parastatals to Private Trade, the editors—clearly from the latter camp—pose three general questions: Why must parastatal-centered policies in Asia change, when should policy changes occur, and how should such change happen: gradually or abruptly? Experts in agricultural policy use case studies from South Asia (Bangladesh, India, and Pakistan) and East Asia (Indonesia, the Philippines, and Vietnam) to answer these questions; and a concluding chapter synthesizes these countries' experiences with price stabilization programs. In light of the evidence—which indicates that parastatals played important roles in the past but have become overly expensive, and that reduced intervention can promote competition, help develop alternative institutions, and release funds for development and antipoverty programs without jeopardizing price stability—the editors highlight the challenges ahead and propose suggestions for reforming the existing paradigm for price-related policies. This volume provides valuable analyses for anyone concerned with balancing government intervention with market-friendly policies.

Despite the importance of Southeast Asia (SEA) region in the world for economy and agriculture, and despite reported evidence of the modernization of various aspects of the agricultural sector, the information has not been compiled in ways that provides more representative insights of the regions, as well as chronological, dynamic perspectives across different aspects of the overall agricultural developments. This report partly fills this knowledge gap by summarizing the key characteristics in SEA region of the agricultural development, as well as changes in related outcomes, such as nutrition, natural resource endowments, and the labor movement into non-farm economies. In doing so, the report gathers secondary cross-country data on key aspects of the agricultural modernization and diversification. Overall, the SEA region has seen a relatively fast movement of labor out of the agricultural sector into non-farm sectors including trade, restaurants and hotel industries in the last few decades, leading to higher labor productivity growth than land productivity growth. Despite the important roles of trade, the agricultural production within the region and in each country continues to account for important sources of food and nutrition. The modern production technologies and inputs have spread constantly within the region, but with considerable time lags across countries. The growth of vegetable oils and aquaculture production have been considerable, and contrast with South Asia (SA)where similar patterns have been observed for vegetables and milk production. The public sector has played important roles in agricultural research and development (R&D)on genetic improvements, and infrastructure development, while keeping the nominal assistance to the sector through market interventions to a relatively modest level, which has been accompanied by the significant growth of the private-sector participation in the provisions of inputs, services and agricultural finance. The agricultural modernization in SEA region has, however, been also associated with some negative outcomes, including continued degradation of natural resources like water and forest areas in which SEA has been relatively rich historically, and gradual increases in certain types of malnutrition including overweight and diabetes.