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Fajar B. Hirawan
ECO209 Development Economics
Monday, December 26th, 2022
UNDERSTANDING
FOODSECURITY
OUTLINE
The Pillars and
Problems
Strategic
Policies
Discussion
What is Food
Security?
01 02 03 04
What is
food security?
“Lack of understanding in defining food security and its measurement is one
of the problems that appears when a country tries to address food
insecurity” (Drimie & Ruysenaar, 2010).
Why
We
Need
Food?
• Food is one of three basic needs, together with clothing and housing, that people should have
fulfilled in their daily life.
• Although clothing and shelter are also crucial for human life, food is unquestionably more important
than other needs because humans cannot substitute food for anything else.
• People face hunger and death if they do not consume food daily (Warr, 2009), whereas they
might not face death if they have not met their clothing and housing needs.
• Thus, humans are concerned about the availability of food, accessibility of food, and affordability
of food (Suryana, 2008). These three food security pillars have been used to illustrate food security
worldwide and have also been applied by both international and national institutions, including the
Food and Agriculture Organization (FAO).
• Some experts believe that food security should be achieved only by market mechanisms without
any government intervention. Meanwhile, others consider the significance of government
intervention via policies to handle food security problems to avoid failure created by the interaction
between producers and consumers (Dorosh, 2008a).
• However, the market cannot allocate economic resources efficiently, and so several strategic
policies are likely to be needed to attain an efficient allocation of economic resources.
Food
“Human population increases at a geometric rate while food production
increases at an arithmetic rate”
(Malthus, An Essay on the Principle of Population, 1798).
Thomas Robert Malthus, well-known as the father
of demographics, conducted a study by observing
working-class people in England during the
industrial revolution.
In his book, An Essay on the Principle of
Population, Malthus argued that population grows
faster than food production and stated that
“population increases in a geometrical ratio,
meanwhile food production increases in an
arithmetical ratio” (Malthus, 1798, p. 4).
The Malthusian perspectives treat population
growth as the dependent variable that is mainly
determined by agricultural output.
A pessimistic view that was inspired by Thomas
Robert Malthus (old Malthusian) and Paul Ehrlich
(neo-Malthusian) has been countered by an
optimistic view proposed by Ester Boserup, Julian
Simon and Simon Kuznets.
Time/years
Figure 1.1 Population growth and food supply based on Malthus’ theory
Source: An Essay on the Principle of Population (Malthus, 1798) (redrawn).
Food supply/production
Unanticipated population growth
Quantity/size
Time/years
Figure 1.2 Population growth and food supply based on Boserup’s theory
Source: The Conditions of Agricultural Growth (Boserup, 1965) (redrawn).
Food supply
Population growth
Ester Boserup is one of the supporters of the
optimistic view that food production or supply is not
a limiting factor for population growth which is
contrary to the Malthusian perspective that mainly
focuses on how food production affects population
growth (Boserup, 1965).
Boserup’s theory shows that food supply adjusts
to the population growth trend over time. The
increase in population growth stimulates innovation
and technology use and development as well as
strategic management to enhance food production
to fulfill the demand for food (Turner II & Fischer-
Kowalski, 2010).
Boserup, Simon and Kuznets argue that zero
productivity is not relevant due to the principle
that people respond to incentives and
individuals are not only labourers but they are
also innovators and creators (Rapoport, 2011).
Based on the report of the World Food Conference 1974, food security was defined as “availability at all times of
sufficient world food supplies of basic foodstuff to sustain a steady growth of food consumption and to balance
fluctuations in production and prices.”
Based on a report by the Food and Agricultural Organization Director-General in 1983, “food security should ensure all
people at all times have physical and economic access to basic food.”
The concept of food security was then modified as access by all people to enough food for an active and healthy
life at all times (World Bank, 1986).
In the mid-1990s, the scope of food security broadened from an individual to the global perspective. The definition of
food security was then enriched by the issues of food safety, nutrition and food preference.
In the report United Nations Development Programme Human Development report in 1994 , food security was treated
from the perspective of human rights.
DEFINITION (1)
Based on the new definition (World Food Summit 1996), food security in any level is achieved “when all people, at all
times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food
preferences for an active and healthy life.”
DEFINITION (2)
Based on FAO report in 2003, the definition of food security is “a situation that exists when all people, at all times,
have physical, social and economic access to sufficient, safe and nutritious food that meets their dietary needs
and food preferences for an active and healthy life.”
Most studies on food security since the reconfirmation of four pillars at the World Summit on Food Security in 2009
have highlighted all four pillars in undertaking research on food security.
THE PROBLEMS AND PILLARS
https://www.globalhungerindex.org
Problems in
Realizing
Food Security?
• Constraints are commonly found in governments’ efforts to achieve food security, such
as supply shortages and lack of distribution or access.
• Simatupang and Timmer (2008) stated that the main problems faced by Indonesia in
achieving food security are low production, lack of infrastructure, lack of
innovation, transport and logistics costs, and low rate of investment in research
in agriculture.
• The risk and volatility of primary sector assets are why some investors seem to
redirect their investment preferences from the primary sector to other areas (Allen et
al., 2013).
• Costly inter-island transport results in difficulties in distributing goods to remote
areas within the country.
Problems in Achieving Food Security
Figure 1.4 Foreign direct investment realisation by sector, 1990–2016 (in USD millions)
Source: Indonesian Investment Coordinating Board (BKPM, 2017).
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Foreign:Primary Sector(PS) Foreign:Secondary Sector(SS) Foreign:Tertiary Sector(TS)
Figure 1.5 Domestic direct investment realisation by sector, 1990–2016 (in IDR billions)
Source: Indonesian Investment Coordinating Board (BKPM, 2017).
Foreign and Domestic Direct Investment Realization in Indonesia
Why We Need
To Understand
Food Security
Pillars?
Figure 2.1 Conceptual model for understanding food security
FOOD SECURITY
Adequate food
availability
Adequate food access Appropriate food
utilisation
Resources
(Natural
resource
sustainability,
productive
assets,
secure
livelihoods)
Productivity
(Labour
productivity,
livelihood
stability and
diversification)
Income
(Market
integration,
purchasing
power,
savings
potential,
credit access)
Consumption
(Equity in
intra-
household
food
distribution,
food quality,
quantity and
diversity)
Human Capital
(Nutrition,
health and
sanitation,
maternal/child
care, dignity,
education,
skills, political
voice, capacity,
indigenous
knowledge)
Enhanced community
resiliency
Enhanced livelihood
capacity
Enhanced human capital
Natural shocks
(Climatic shocks,
natural resource
mining and
degradation, yield
volatility, asset
depletion, neglect
of natural)
Economic risks
(Income fluctuation,
collapsed terms of
trade, savings
depletion, employment
insecurity, price
volatility, high
transaction costs,
information
asymmetry, inflation)
Social and health risks
(Epidemics, HIV/AIDS,
widespread untended
malnutrition, risk perceptions,
corruption, social
disintegration, predatory
extraction by armed forces,
conflict, ethnic and social
discrimination
Enhancing people’s capacities to overcome political risks
(Seeking good governance (national and local), legal recourse, representation, service provision,
accountability, public goods creation, regulation, recognition of human rights, political stability,
effective institutions)
FOOD
SECURITY
RISKS
TO
BE
TACKLED
DESIRED
PROGRAM
OUTCOMES
FOOD
SECURITY
OUTCOMES
Strategic Goal
Source: Webb and Rogers (2003, p. 6).
FOOD INSECURITY
Source: Adapted and modified from several sources.
FOOD
SECURITY
GOOD
GOVERNANCE
(POLITICAL
STABILITY,
REGULATORY
QUALITY,
GOVERNMENT
EFFECTIVENESS)
ENVIRONMENTAL
FACTORS
ECONOMIC
FACTORS
SOCIAL
FACTORS
food
availability
food
accessibility
food utilisation
P
I
L
L
A
R
S
F
A
C
T
O
R
S
food stability
Simplified model for understanding food security
OPTIMIZE THE RESOURCES
INTERNAL
➢ Agricultural infrastructure
➢ Logistics and transport
infrastructure
➢ Human resources
➢ Technology
EXTERNAL
➢ International cooperation
Strategic POLICIES
“The World Bank estimates that GDP growth driven by
agricultural sector growth is up to four times more effective
in alleviating poverty in developing countries compared to
other sectors due to the high proportion of the labour force
involved in farming” (World Bank, 2007)
“Countries that do not have enough agricultural land to produce
agricultural products or commodities usually rely on food or agricultural
trade to fulfil their domestic demand.”
“The transport and logistics services sector has become a crucial issue in
food security after the high awareness of the importance of supply chain
management and the significant growth of consumer concerns about food
safety and quality as well as the high demand for consistent and reliable
products in large volumes.”
Source: World Bank
No Country
2010 2014 2018
LPI
Score
Infrastructure
LPI
Score
Infrastructure
LPI
Score
Infrastructure
1 Brunei N/A N/A N/A N/A 2.71 2.46
2 Cambodia 2.37 2.12 2.74 2.58 2.58 2.14
3 Indonesia 2.76 2.54 3.08 2.92 3.15 2.89
4 Laos 2.46 1.95 2.39 2.21 2.7 2.44
5 Malaysia 3.44 3.5 3.59 3.56 3.22 3.15
6 Myanmar 2.33 1.92 2.25 2.14 2.3 1.99
7 Philippines 3.14 2.57 3 2.6 2.9 2.73
8 Singapore 4.09 4.22 4 4.28 4 4.06
9 Thailand 3.29 3.16 3.43 3.4 3.41 3.14
10 Vietnam 2.96 2.56 3.15 3.11 3.27 3.01
Logistics Performance Index ASEAN Member Countries 2010-2018
Source: World Bank Logistics Performance Index improving performance
Share
Your
Thoughts?
• The issue of institutions is important given their role in policy decision-making
and in adapting to technical and environmental conditions.
• Mobilizing political will and building necessary institutions on food security
and agricultural policies are needed to guarantee sustainable achievement on
food security (Food and Agricultural Organization, 2009b).
• Offering investment opportunities, especially in the food and agricultural
sector.
• Actively participating in bilateral, regional, and multilateral economic
cooperation, specifically dealing with food and agricultural trade. Indonesia’s
agricultural and food trade needs to be strengthened at different levels,
particularly at the regional level.
• An efficient services industry, specifically transport services, is required to
solve the distance problem.
Some Strategic Issues
DISCUSSION
Thank You
Fajar B. Hirawan, PhD
fajar.hirawan@uiii.ac.id

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Understanding Food Security Pillars and Some Measurements.pdf

  • 1. Fajar B. Hirawan ECO209 Development Economics Monday, December 26th, 2022 UNDERSTANDING FOODSECURITY
  • 4. “Lack of understanding in defining food security and its measurement is one of the problems that appears when a country tries to address food insecurity” (Drimie & Ruysenaar, 2010).
  • 6. • Food is one of three basic needs, together with clothing and housing, that people should have fulfilled in their daily life. • Although clothing and shelter are also crucial for human life, food is unquestionably more important than other needs because humans cannot substitute food for anything else. • People face hunger and death if they do not consume food daily (Warr, 2009), whereas they might not face death if they have not met their clothing and housing needs. • Thus, humans are concerned about the availability of food, accessibility of food, and affordability of food (Suryana, 2008). These three food security pillars have been used to illustrate food security worldwide and have also been applied by both international and national institutions, including the Food and Agriculture Organization (FAO). • Some experts believe that food security should be achieved only by market mechanisms without any government intervention. Meanwhile, others consider the significance of government intervention via policies to handle food security problems to avoid failure created by the interaction between producers and consumers (Dorosh, 2008a). • However, the market cannot allocate economic resources efficiently, and so several strategic policies are likely to be needed to attain an efficient allocation of economic resources. Food
  • 7. “Human population increases at a geometric rate while food production increases at an arithmetic rate” (Malthus, An Essay on the Principle of Population, 1798).
  • 8. Thomas Robert Malthus, well-known as the father of demographics, conducted a study by observing working-class people in England during the industrial revolution. In his book, An Essay on the Principle of Population, Malthus argued that population grows faster than food production and stated that “population increases in a geometrical ratio, meanwhile food production increases in an arithmetical ratio” (Malthus, 1798, p. 4). The Malthusian perspectives treat population growth as the dependent variable that is mainly determined by agricultural output. A pessimistic view that was inspired by Thomas Robert Malthus (old Malthusian) and Paul Ehrlich (neo-Malthusian) has been countered by an optimistic view proposed by Ester Boserup, Julian Simon and Simon Kuznets. Time/years Figure 1.1 Population growth and food supply based on Malthus’ theory Source: An Essay on the Principle of Population (Malthus, 1798) (redrawn). Food supply/production Unanticipated population growth
  • 9. Quantity/size Time/years Figure 1.2 Population growth and food supply based on Boserup’s theory Source: The Conditions of Agricultural Growth (Boserup, 1965) (redrawn). Food supply Population growth Ester Boserup is one of the supporters of the optimistic view that food production or supply is not a limiting factor for population growth which is contrary to the Malthusian perspective that mainly focuses on how food production affects population growth (Boserup, 1965). Boserup’s theory shows that food supply adjusts to the population growth trend over time. The increase in population growth stimulates innovation and technology use and development as well as strategic management to enhance food production to fulfill the demand for food (Turner II & Fischer- Kowalski, 2010). Boserup, Simon and Kuznets argue that zero productivity is not relevant due to the principle that people respond to incentives and individuals are not only labourers but they are also innovators and creators (Rapoport, 2011).
  • 10. Based on the report of the World Food Conference 1974, food security was defined as “availability at all times of sufficient world food supplies of basic foodstuff to sustain a steady growth of food consumption and to balance fluctuations in production and prices.” Based on a report by the Food and Agricultural Organization Director-General in 1983, “food security should ensure all people at all times have physical and economic access to basic food.” The concept of food security was then modified as access by all people to enough food for an active and healthy life at all times (World Bank, 1986). In the mid-1990s, the scope of food security broadened from an individual to the global perspective. The definition of food security was then enriched by the issues of food safety, nutrition and food preference. In the report United Nations Development Programme Human Development report in 1994 , food security was treated from the perspective of human rights. DEFINITION (1)
  • 11. Based on the new definition (World Food Summit 1996), food security in any level is achieved “when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.” DEFINITION (2) Based on FAO report in 2003, the definition of food security is “a situation that exists when all people, at all times, have physical, social and economic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life.” Most studies on food security since the reconfirmation of four pillars at the World Summit on Food Security in 2009 have highlighted all four pillars in undertaking research on food security.
  • 12. THE PROBLEMS AND PILLARS
  • 14.
  • 16. • Constraints are commonly found in governments’ efforts to achieve food security, such as supply shortages and lack of distribution or access. • Simatupang and Timmer (2008) stated that the main problems faced by Indonesia in achieving food security are low production, lack of infrastructure, lack of innovation, transport and logistics costs, and low rate of investment in research in agriculture. • The risk and volatility of primary sector assets are why some investors seem to redirect their investment preferences from the primary sector to other areas (Allen et al., 2013). • Costly inter-island transport results in difficulties in distributing goods to remote areas within the country. Problems in Achieving Food Security
  • 17. Figure 1.4 Foreign direct investment realisation by sector, 1990–2016 (in USD millions) Source: Indonesian Investment Coordinating Board (BKPM, 2017). 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Foreign:Primary Sector(PS) Foreign:Secondary Sector(SS) Foreign:Tertiary Sector(TS) Figure 1.5 Domestic direct investment realisation by sector, 1990–2016 (in IDR billions) Source: Indonesian Investment Coordinating Board (BKPM, 2017). Foreign and Domestic Direct Investment Realization in Indonesia
  • 18. Why We Need To Understand Food Security Pillars?
  • 19. Figure 2.1 Conceptual model for understanding food security FOOD SECURITY Adequate food availability Adequate food access Appropriate food utilisation Resources (Natural resource sustainability, productive assets, secure livelihoods) Productivity (Labour productivity, livelihood stability and diversification) Income (Market integration, purchasing power, savings potential, credit access) Consumption (Equity in intra- household food distribution, food quality, quantity and diversity) Human Capital (Nutrition, health and sanitation, maternal/child care, dignity, education, skills, political voice, capacity, indigenous knowledge) Enhanced community resiliency Enhanced livelihood capacity Enhanced human capital Natural shocks (Climatic shocks, natural resource mining and degradation, yield volatility, asset depletion, neglect of natural) Economic risks (Income fluctuation, collapsed terms of trade, savings depletion, employment insecurity, price volatility, high transaction costs, information asymmetry, inflation) Social and health risks (Epidemics, HIV/AIDS, widespread untended malnutrition, risk perceptions, corruption, social disintegration, predatory extraction by armed forces, conflict, ethnic and social discrimination Enhancing people’s capacities to overcome political risks (Seeking good governance (national and local), legal recourse, representation, service provision, accountability, public goods creation, regulation, recognition of human rights, political stability, effective institutions) FOOD SECURITY RISKS TO BE TACKLED DESIRED PROGRAM OUTCOMES FOOD SECURITY OUTCOMES Strategic Goal Source: Webb and Rogers (2003, p. 6). FOOD INSECURITY
  • 20. Source: Adapted and modified from several sources. FOOD SECURITY GOOD GOVERNANCE (POLITICAL STABILITY, REGULATORY QUALITY, GOVERNMENT EFFECTIVENESS) ENVIRONMENTAL FACTORS ECONOMIC FACTORS SOCIAL FACTORS food availability food accessibility food utilisation P I L L A R S F A C T O R S food stability Simplified model for understanding food security
  • 21. OPTIMIZE THE RESOURCES INTERNAL ➢ Agricultural infrastructure ➢ Logistics and transport infrastructure ➢ Human resources ➢ Technology EXTERNAL ➢ International cooperation
  • 23. “The World Bank estimates that GDP growth driven by agricultural sector growth is up to four times more effective in alleviating poverty in developing countries compared to other sectors due to the high proportion of the labour force involved in farming” (World Bank, 2007)
  • 24. “Countries that do not have enough agricultural land to produce agricultural products or commodities usually rely on food or agricultural trade to fulfil their domestic demand.”
  • 25. “The transport and logistics services sector has become a crucial issue in food security after the high awareness of the importance of supply chain management and the significant growth of consumer concerns about food safety and quality as well as the high demand for consistent and reliable products in large volumes.”
  • 27. No Country 2010 2014 2018 LPI Score Infrastructure LPI Score Infrastructure LPI Score Infrastructure 1 Brunei N/A N/A N/A N/A 2.71 2.46 2 Cambodia 2.37 2.12 2.74 2.58 2.58 2.14 3 Indonesia 2.76 2.54 3.08 2.92 3.15 2.89 4 Laos 2.46 1.95 2.39 2.21 2.7 2.44 5 Malaysia 3.44 3.5 3.59 3.56 3.22 3.15 6 Myanmar 2.33 1.92 2.25 2.14 2.3 1.99 7 Philippines 3.14 2.57 3 2.6 2.9 2.73 8 Singapore 4.09 4.22 4 4.28 4 4.06 9 Thailand 3.29 3.16 3.43 3.4 3.41 3.14 10 Vietnam 2.96 2.56 3.15 3.11 3.27 3.01 Logistics Performance Index ASEAN Member Countries 2010-2018 Source: World Bank Logistics Performance Index improving performance
  • 29. • The issue of institutions is important given their role in policy decision-making and in adapting to technical and environmental conditions. • Mobilizing political will and building necessary institutions on food security and agricultural policies are needed to guarantee sustainable achievement on food security (Food and Agricultural Organization, 2009b). • Offering investment opportunities, especially in the food and agricultural sector. • Actively participating in bilateral, regional, and multilateral economic cooperation, specifically dealing with food and agricultural trade. Indonesia’s agricultural and food trade needs to be strengthened at different levels, particularly at the regional level. • An efficient services industry, specifically transport services, is required to solve the distance problem. Some Strategic Issues
  • 31. Thank You Fajar B. Hirawan, PhD fajar.hirawan@uiii.ac.id