156
fare economics. Therefore, neo-classical economics was considered to provide the
proper rationale to the thought that enhancing market economy can contribute to
poverty alleviation, even though the multiple dimensions of poverty were considered important. The approach from the neo-classical economics can be recognized
as a framing of development strategy.
In addition to the economic bases as described above, food security has been a
central issue in development strategy for poverty alleviation. Many reasons exist for
this: (1) the threat of Malthus’s world is becoming more of a reality, (2) many people are suffering from poverty in the rural areas of developing countries, (3) agriculture is the main industry in developing countries, (4) the number of undernourished
people had remained virtually the same for several decades, and so on. Although the
reasons for focusing on food security have changed over time, their fundamental
policy has been the same: increasing agricultural productivity in a consistent manner. This policy has remained consistent, even though development strategies have
evolved because of recognition of various negative factors such as environmental
impacts (IAASTD 2008). Agricultural policies to alleviate poverty from the perspective of food security have been coordinated with economic policies in development strategies. This means that agricultural policy is oriented toward enhancing
market function (World Bank 2008).
Enhancing market function decouples production and consumption. When the
market function is enhanced, trading is expanded from the household level to local,
national, or international levels. People have more potential opportunities to increase
their production. Therefore, agricultural policies have primarily focused on the production or supply side. On the other hand, consumption is more related to nutrition
policy. This decoupling of consumption from production often leads to not only the
market failure but also mal-nutrition, and thus causes failure in poverty alleviation
policies by the government. Agricultural policy dealing with production and nutrition policy dealing with consumption have different framings. Both policies are
implemented separately and not integrated with each other because of decoupling
consumption from production that results from development strategies.
In the following sections, we first give an overview of the impacts of the Green
Revolution on poverty alleviation in developing countries. The Green Revolution
began in the 1940s, and the development strategies associated with the Green
Revolution were to enhance market function in agriculture. It impacted food security in the world tremendously through the decoupling of consumption from production. Second, we review how nutrition status was considered in development
strategies. The impacts of the Green Revolution are discussed from the viewpoint of
the production or supply side perspective. Nutrition status, however, is discussed
from the viewpoint of consumption or demand side perspective. Third, we discuss
the reasons for the failure of the market economy concept in neo-classical economic
theory, as well as its implications. A summary of this chapter is provided at the end.
H. Matsuda et al.
fare economics. Therefore, neo-classical economics was considered to provide the
proper rationale to the thought that enhancing market economy can contribute to
poverty alleviation, even though the multiple dimensions of poverty were considered important. The approach from the neo-classical economics can be recognized
as a framing of development strategy.
In addition to the economic bases as described above, food security has been a
central issue in development strategy for poverty alleviation. Many reasons exist for
this: (1) the threat of Malthus’s world is becoming more of a reality, (2) many people are suffering from poverty in the rural areas of developing countries, (3) agriculture is the main industry in developing countries, (4) the number of undernourished
people had remained virtually the same for several decades, and so on. Although the
reasons for focusing on food security have changed over time, their fundamental
policy has been the same: increasing agricultural productivity in a consistent manner. This policy has remained consistent, even though development strategies have
evolved because of recognition of various negative factors such as environmental
impacts (IAASTD 2008). Agricultural policies to alleviate poverty from the perspective of food security have been coordinated with economic policies in development strategies. This means that agricultural policy is oriented toward enhancing
market function (World Bank 2008).
Enhancing market function decouples production and consumption. When the
market function is enhanced, trading is expanded from the household level to local,
national, or international levels. People have more potential opportunities to increase
their production. Therefore, agricultural policies have primarily focused on the production or supply side. On the other hand, consumption is more related to nutrition
policy. This decoupling of consumption from production often leads to not only the
market failure but also mal-nutrition, and thus causes failure in poverty alleviation
policies by the government. Agricultural policy dealing with production and nutrition policy dealing with consumption have different framings. Both policies are
implemented separately and not integrated with each other because of decoupling
consumption from production that results from development strategies.
In the following sections, we first give an overview of the impacts of the Green
Revolution on poverty alleviation in developing countries. The Green Revolution
began in the 1940s, and the development strategies associated with the Green
Revolution were to enhance market function in agriculture. It impacted food security in the world tremendously through the decoupling of consumption from production. Second, we review how nutrition status was considered in development
strategies. The impacts of the Green Revolution are discussed from the viewpoint of
the production or supply side perspective. Nutrition status, however, is discussed
from the viewpoint of consumption or demand side perspective. Third, we discuss
the reasons for the failure of the market economy concept in neo-classical economic
theory, as well as its implications. A summary of this chapter is provided at the end.
H. Matsuda et al.