Page 1

CHAPTER 6
THEORY OF AGRICULTURAL DEVELOPMENT
SUSTAINABLE INDUSTRY

July 12, 2013 8:07 PM first

Page 2

TABLE OF CONTENTS

6.1 Theory of sustainable agricultural development (sustainable agriculture)

6.2 Development trends of sustainable human resources in Vietnam.
6.3 System of policies to promote sustainable development.

July 12, 2013 Faculty of Economics - VNU HCM 2

Page 3

1. THEORY OF Sustainable Human Resources Development

1.1 Concepts
In the early 90s, Douglas, GM (2006)
divided into 3 different groups of definitions:
❑ Group 1: Sustainable agriculture with emphasis on master
weak in economic and technical aspects .
❑ Group 2: Sustainable agriculture with emphasis on master
weak in ecological aspect .
❑ Group 3: Sustainable agriculture is emphasized
aspects of the human environment . 3

July 12, 2013 Faculty of Economics - VNU HCM

Page 4

1. THEORY OF Sustainable Human Resources Development

1.1 Concepts /
 In the 1990s, UNDP gave the following definition:
“Sustainable development is development that meets needs
current demand but does not hurt the capacity to respond
needs of future generations ” This definition is not supported
very household because of countries where poverty is still serious and
The income of the majority of the population is still low.

4
July 12, 2013 Faculty of Economics - VNU HCM

Page 5

1.1 Concepts

Pearce and Turner (1990) have the following view: Agricultural development
Sustainability is defined as maximizing the benefits of economic development
on a binding basis to maintain the quality of natural resources under
time and adhere to the following rules:
❑ For renewable resources (forests, land, labor), use
Their use must be ensured at a lower level than their reproducibility.
❑ Fornon-renewable resources (agricultural machinery, materials) work
Optimizing the efficiency of using them depends on their replaceability
This resource (eg use of fertilizers to increase yields for alternatives
increase production by acreage) and technical progress .
5

11/15/2013 8:46 AM Faculty of Economics - VNU HCM

Page 6

1.1 Concepts

The above concepts show that there is no homogeneity of definition of

Sustainable agriculture among economists. However, most of the
Economists all acknowledge that:
Sustainable agricultural development is a development model in which there is
the link between agricultural growth and growth
general economy; Agricultural growth with self environment
of course , poverty and the human environment in rural areas.

6
July 12, 2013 Faculty of Economics - VNU HCM

Page 7

1.2 Constraints

1.2.1 Agricultural growth and natural environment.

In agriculture, there are 2 ways to increase production scale
1) Extensive farming: Increasing production due to area expansion ( owner
Weakness in expanding land area from deforestation or increasing crops opposite
land area is actively irrigated)
Consequences: Destroying ecosystems such as destroying many organisms,
degradation of land-water systems, change in climate
/
 7

Page 8

1.2.1 Agricultural growth and natural environment.

2) Intensification: increase yield per unit area by

increased use of inputs driven by industry
production chemicals. Intensive farming is the method of adding on an extra
Unit area. Therefore, the intensive farming method is capable of:
- Adds and balances nutrients in the soil.
- Using the correct dosage, type of insecticide and head
investment in developing irrigation systems in sufficient quantity as well as quality assurance
The amount can prevent salinity and water intoxication.
Forest restoration and protection will limit flooding and transformation
measurement of the climate.
8

Page 9

1.2.1 Agricultural growth and natural environment.

→ Hence, the core problem of ecological imbalance is not

It must be the rate of agricultural growth or growth
due to the mode of realization of the growth .
Braun model (1991): for developing countries of
period 1980 - 1989.
FD = f (gA, gL)
Of which: FD (Forest Damaged) is the deforested area; gA:
growth in agriculture; gL: area growth
NN land.
9

Page 10

Result:

✓ Annual agricultural growth rate and deforestation rate

lag in developing countries has no correlation (coefficient
correlation is 0.07).
✓ The growth rate of the agricultural land area is significantly correlated
for the rate of deforestation (correlation coefficient is 0.31)

ten

Page 11
Case study in Vietnam (2002): 61 provinces of 4 years
from 1996 to 1999.

FOR = f (POP, GDP, FUEL, WOOD, CROP)

/
 FOR: Forest area (Natural area * rate of forest cover, ha)
POP: Average population (1,000 people)
GDP: GDP per capita (Fixed price, 1,000 VND)
FUEL: fuelwood harvest (1,000 steres)
WOOD: timber harvested (1,000 m 3 )
CROP: Agricultural land (1,000 ha)
Linear regression model:
LnFOR = α 0 + α first
lnPOP + α 2 lnGDP + α 3 lnFUEL + α 4 lnWOOD +
α 5 lnCROP 11

Page 12

Results of regression analysis

Estimated coefficient P

LnPOP -0.6097 0.006

LnGDP 0.3404 0.130 *

LnFUEL -0.6717 0,000

LnWOOD -0.3440 0.010

LnCROP -0.4817 0.004

CONSTANT 10,3778 0,000

* The variable is not statistically significant

→ Faster agricultural growth has not necessarily been done
spoil the ecological environment more. twelfth

Page 13
Performance of sustainable agriculture can be assessed
through the following criteria:

1) Trends in agricultural growth (steady and

higher than population growth).
2) Changes in destroyed and restored forest area, degree
fertility of agricultural land in use, salinity
of the soil, the ratio of the area of land that is actively and efficiently irrigated
amount of water source.

13

Page 14

1.2.2 Agricultural growth and rural poverty

1) The relationship
between growth and poverty.
According to Rao CHH and Chopra K (1991)
- Forthe extensive mode, due to nutrient exploitation
natural soil, expanding area by deforestation should increase
Agriculture growth can be achieved in the short term, but when the environment itself
If there is a natural recession, output will decrease while the population increases.
Consequently, unemployment and poverty will emerge.

/
 14

Page 15

1.2.2 Agricultural growth and rural poverty

1) The relationship between growth and poverty.

- Forthe intensive farming mode, to meet the increased demand
rapid agricultural growth, high abuse of chemicals (feces
fertilizer and insecticide) will appear. This will degrade
divestment of land and water resources. Once photo degradation began
benefits, productivity and income decrease while population
increase, job vacancies in the countryside, unemployment
high karma and poverty will emerge.
15

Page 16

According to Shepherd A. (1998), even the application of techniques

production ensures no degradation of environmental resources remains
leading to poverty. The cause is the disadvantage of
the slow application of new technologies for farmers
poor.

16

Page 17

2) The relationship between poverty and environmental degradation.

When poverty increases, it will lead to degradation of the natural environment. Shallow
people are ready to meet the natural commodity consumption needs of the ministry
the population has a high income by exploiting natural resources
(public resources) for income (deforestation, hunting, fishing
creatures of any size)
→ As a result,
the natural environment continues to degrade, their income will be
decline and fall into a cycle of poverty.
So sustainable agricultural development must ensure above-level livelihoods
poverty for rural people.

17

Page 18

Sustainable agriculture can be assessed by a number of related indicators

employment trends and poverty in rural areas

1) Proportion of poor households in rural areas.

2) Rural unemployment rate
/
 18

Page 19
1.2.3 Agricultural growth and human environment in agriculture
village.

The human environment in rural areas is shown on 2 sides: love

health status - nutrition and cultural level of the source
rural manpower.
1.2.3.1 Agricultural growth and health - nutrition environment.
Agricultural growth and environmental health - nutrition improvement
maintenance has an interactive relationship.
1) Agricultural growth creates jobs and income
2) Employment and income will facilitate improvement
nutritional status and health of farmers.
3) The farmer's health and nutrition status is improved
The improvement will affect the agricultural growth again 19

Page 20

Braun's model (1991)

Based on data from 40 developing countries in the period
1965 - 1989.
G GNP = f (GA )
1) Agricultural growth rate correlates closely with the growth rate
economic growth in developing countries. For countries
low income developing countries, the correlation coefficient is 0.75.
While developing countries have middle income generation
this number is 0.21.
2) GNP growth rate is strongly correlated with mortality
infant mortality as well as child malnutrition rate
(correlation coefficient is 0.47). 20

Page 21

If the agricultural growth is done by the mode of production

but it affects environmental degradation, it will affect
affect people's health and nutrition
countryside.

21 /
Page 22

1.2.3.2 Agricultural growth with the cultural level of farmers

- Farmer's educational level is too low (illiteracy rate is high)

it is very difficult for them to understand the concepts of development
sustainability - environmental degradation and understanding of techniques
to reduce resource degradation.
- Low literacy will hinder the application of techniques
both bring benefits to them while preserving the lips
school.
→ Therefore, agricultural growth is not associated with improving education
Rural intellectuals will affect environmental degradation. 22

Page 23
Sustainable agriculture can be assessed by a number of related indicators
to trends in nutritional health status and educational attainment
of rural people as follows:

1) Proportion of malnourished and illiterate children and adults.

2) Infant mortality
3) Proportion of farmers with major lip diseases
school

23

Page 24

Through the above growth relationships, it shows that:

Sustainable agricultural development is the development that meets the needs
general growth demand of the economy but not undermining
withdraw the natural environment - people and ensure livelihoods
Sustainable above the poverty line for rural people.
2. DEVELOPMENT TRENDS OF Sustainable Agriculture in Vietnam
Since the renovation, Vietnamese agriculture has developed in a sustainable direction
are not?
2.1 Agricultural development in recent years.
2.1.1 Agricultural growth and GDP
24

Page 25
Economic growth and agricultural growth
period 1990 - 2010

Year GDP NN
(%) (%)
1990 5.09 1.00
1995 9.54 4.80 /
 2000 6.79 4.63
2005 8.43 4.00
2006 8.23 3.69
2007 8.46 3.76
2008 6.21 4.68
2009 5.32 1.82
2010 6.78 2.78

25
July 12, 2013 Faculty of Economics - VNU HCM

Page 26

2.1.2 Agricultural labor productivity growth

In 1999 compared to 1986, the labor productivity of human resources increased by 1.14 times and the labor productivity increased
1.5 times. On average, from 1986 to 1999, the average growth rate
year is 1% for labor productivity and 3% for labor productivity.
2.1.3 Export of agricultural products
In 2010 compared with 1986 (24 years), the value of agricultural exports
increased 105 times. The average annual growth rate is 21% /
Export turnover of Vietnamese agriculture
year. 1986 - 2010 period
Unit of measure: million USD

1986 160
1995 7,452
2010 16,816
26
July 12, 2013 Source: General Statistics Office of Vietnam

Page 27

Share of the State's contribution to total export value (%)

Year Density
(%)
1986 65
1995 forty six
2010 23

Conclusion: The share of agriculture in total value

Export tends to decrease.
. . \ National data collected \ Import and export value of the whole country by region and by region
group of goods.xls

27
July 12, 2013 Faculty of Economics - VNU HCM

Page 28

2.2 Trends in preservation and degradation of environmental resources.

2.3 Trends in Poverty and Unemployment in NT (School Analysis
of VN).

A. Poverty
Poverty standards

Area Income level / person / month

2006-2010 period Period 2011 - 2015

City 260,000 VND 500,000 VND

Rural plain 200,000 VND 400,000 VND

28

/
Page 29

- The worldpoverty line is 60 USD / person / month (equivalent

1.2 million VND).
- Vietnam's poverty line is less than 50% of the world poverty line
(as of 7/7/2011). The whole country has 3,055,566 poor households , compared with
with the total number of households in the country accounting for 14.2% . Regions of provinces
The rate of poor households in the Northwest reaches 40%, the highest
country. Dien Bien province, the number of poor households with the rate of more than 50%.

- Vietnam is in the "poverty map" of the world. Compared to the standard

poor world, what is the rate of poor households in Vietnam?
29
- .. \ Data collected nationwide \ Muc09_List [1] .pdf

Page 30

B. Employment and Unemployment

- According to the results of 2 surveys on living standards of GSO annually

1993 and 1998, the average annual job growth
in rural areas it is 1.7%. In which, employment is associated with production
0.8% for farm households, 6.7% for non-agricultural households, and 3.3% for hired labor.
Unemployment rate in rural areas in 1993 was 2.6% and
decrease to 2.3% in 2010 .. . \ National data collected \ Unemployment and underage
jobs in Vietnam in 2010 (urban and rural areas) .xls

Conclusion: Recent agricultural growth in Vietnam is associated with

employment expansion and unemployment reduction in NT .
30

Page 31

2.4 Trends in environment, health, nutrition and culture.

Table 1: Levels of plant protection chemicals use in Vietnam

1991 2000
Area of cultivated land (million ha) 9 10.5
Average amount of medicine / ha (kg) 0.5 1.05
Drug group (%)
Inside:
Pesticides 83.3 45
Disease control 9.5 22.54
Herbicide 4.1 32.03

Source: Le Van Khoa et al (2003)

Conclusion: Chemical abuse tends to increase, especially pesticides
thirty first

Page 32

3. POLICY SYSTEM TO PROMOTE Sustainable Development

3.1 The Relationships of Sustainable Development

1) Advanced production technology, growth, increase revenue
import (poverty reduction), improve the quality of life and environment
living schools, improving the quality of human resources, improving
/
 advanced technology used in production.
2) Outdated production technology, environmental degradation, increase
decrease in growth, decrease in income and employment (increase poverty), quality
quality of life and living environment decreased and quality
Human resources decline, advanced technology is not used
used in production.
32

July 12, 2013 Faculty of Economics - VNU HCM

Page 33

3. POLICY SYSTEM TO PROMOTE Sustainable Development

3.1 The Relationships of Sustainable Development

3) Advanced production technology, but the quality of human resources
low, environmental degradation, declining growth, income and employment
decrease, decrease in quality of life and living environment,
quality of human resources declines and technology is advanced
Not used in production.

33

July 12, 2013 Faculty of Economics - VNU HCM

Page 34

3.2 System of policy impact

1) Economic policy
2) Education policy
3) Policy on environmental and resource protection
4) Policies for health care - nutrition for
rural people

34

July 12, 2013 Faculty of Economics - VNU HCM

Page 35

3.2.1 Economic policy system

1) Invest in applied research and dissemination of techniques

new associated with ecological balance;
2) Stabilize the prices of inputs for agricultural production
and agricultural products;
3) Creating sustainable livelihood opportunities for farmers - people
poverty in rural areas;

35

July 12, 2013 Faculty of Economics - VNU HCM

/
Page 36

3.2.2 Education policy system

1) Raise the level of culture for future generations of agriculture

people and rural people;
2) Environmental awareness ability;
3) Control population growth;

36
July 12, 2013 Faculty of Economics - VNU HCM

Page 37

3.2.3 Natural environmental protection policy system

1) Focus on complete law and enforcement system

efficiency for environmental protection;
2) Complete the allocation of forest land use rights to agriculture
people.

37
July 12, 2013 Faculty of Economics - VNU HCM

Page 38

3.2.4 Health care and nutrition policy system

maintenance

Interested in improving the usability of people

rural areas for community health services, clean water and nutrition
maintenance

38
July 12, 2013 Faculty of Economics - VNU HCM