AJAD Volume 11 Issue No. 1 June 2014

This paper presents a participatory methodological framework to identify Gross National Happiness (GNH) issues at the smallholder level in Bhutan. GNH is a development paradigm of Bhutan that has increasingly drawn international attention. Its four pillars are sustainable and equitable socioeconomic development, preservation of the environment, preservation and promotion of culture, and promotion of good governance. Since GNH is usually discussed at the national level, its domains and indicators have been defined through a top-down intellectual exercise, with possibly limited relevance of the major issues for most rural Bhutanese, which represent 69 percent of the country’s population. The methodology applied in this study was useful in identifying key GNH issues from a systems perspective at the smallholder level. Socioeconomic development and the environmental aspects were found to be the pertinent issues. The study also revealed trade-offs and dependencies among the four GNH pillars and their indicators. Inclusive policies are needed to address the concerns of smallholder farmers. If GNH is to work for the present and future generations, then it is essential to embrace the GNH issues of smallholder farmers who compose the backbone of the Bhutanese population. Further, the GNH concept is currently a mix of issues and indicators. Translating the issues identified by the study into indicators is required to properly evaluate the progress at the farm level and to support GNH policy development.

The concept of transaction cost has been around for more than 75 years. It has been used to explain every economic phenomenon that does not fit with standard neoclassical predictions. It has been applied to so many fields, its definition varying with every application. This paper surveys the literature on transaction costs in general, as well as those that apply transaction costs to agriculture. It focuses on the role of transaction costs in exchange in agriculture, particularly in the context of the household’s decision to engage in market exchange, in both input and output sides. The survey literature finds a confluence of definitions of transaction cost as applied to theoretical and empirical models. Coasian and Williamsonian definitions are used in interpreting fixed transaction costs while neoclassical and trade definitions (i.e., the concept of price band) characterize proportional transaction costs. The prominence of transport cost and the effect of distance and isolation in many of the analyses points to the influence of the new economic geography research stream. Measurement of transaction cost as an ad valorem tax also references the trade concept of transaction cost.

Vietnam’s economy faced difficulties in the 2006–2010 period due to the global financial crisis. The average inflation rate (greater than 20%) was higher than the expected level (less than 10%) for the period. The average GDP growth rate (6.3%) was lower than the target (7.5%). In the global context, however, Vietnam’s economic growth and inflation rate were still seen as successful due to the government’s strong policy and administration interventions. Nevertheless, similar to the outcomes of the country’s other economic plans since 1986, the key “relative targets” of the plan for 2006–2010 were not successfully achieved, including that for reduced income inequality, thus restraining Vietnam’s long-term growth. The main reason is that policies implemented to achieve these goals are not at “equilibrium” quantitative points. Therefore, more investment in research that applies large-scale mathematical economics models is urgently needed, similar to the ones used widely by many other governments in the world. In addition, the government’s role in managing and developing domestic markets should be improved to protect farmers who always sell their products at prices lower than the shadow prices.

Organic farming has been promoted and developed in Bali since 2006 by the government in collaboration with private businesses and certification bodies. This research aimed to synthesize the development of Balinese organic production as an effort toward sustainable agriculture. Data from the in-depth interview and critical review were analyzed. As of 2012, the following have been certified as organic farms: 22 groups of food crop and horticulture farms such as rice/red rice, vegetables, flowers, salak, grape, mangosteen, papaya, banana, ginger, red onion, and mushroom; 8 groups of cashew farms; and 7 groups of coffee farms. The Balinese organic production systems are potentially sustainable since the sustainability criteria were fulfilled. Many constraint factors affect organic production in Bali, including limited organic fertilizer sources, limited fresh irrigation water resource, certification budget availability, and buyers who are willing to pay a premium for organic products. Success in removing the constraint factors would pave the way for sustainable organic agriculture in Bali.

In India, fruits and vegetables (F&V) significantly contribute to food and nutritional security; they also enhance the livelihoods of smallholders. In recent years, demand has been increasing for these important crops, yet their productivity has been decelerating. Technical innovations can reduce yield gaps and increase the productivity of F&V crops. This paper measures technical efficiency (TE) of F&V production and its determinants based on Cobb-Douglas stochastic frontier production function. TE is defined as the maximum output that can be produced from a specified set of inputs, given the existing technology available to the farmer. The study surveyed a sample of 240 households who mostly cultivate F&V in Salem, Trichy, and Theni districts, Tamil Nadu. Mean TE level was estimated to be 0.60. The farmers in Trichy had higher TEs than those in the other districts. This means Trichy farmers use inputs more efficiently. If the average farmer in the sample could achieve the TE level of his/her most efficient counterpart, then he/she could increase output by about 34 percent with the same level of inputs. There is considerable room for increasing F&V output without additional inputs. Accessibility of irrigation facilities significantly contributed to the higher TE in Trichy. While the test for equality showed that TE did not vary significantly across farm sizes, the larger landholdings had higher TE than smaller landholdings, indicating that farm size and TE are directly related. The results showed that accessibility of infrastructure facilities (e.g., road) contributed positively to TE. Other variables such as level of education and access to credit also had positive relationship with TE.

Freshwater gobies, particularly fry and some adult species, have been used as an alternative fishery resource. Mandulog River in Iligan City, northern Mindanao, Philippines, is one of the areas known for goby-fry fishery. This study described the potentials of the goby population in Mandulog River in terms of its fishery aspects. Households along the Mandulog River were the respondents of the survey. Results show that most of the freshwater gobies were caught as alternative food while goby-fry were sold in the market. Goby fishing was done five times a year using nets and traps. The maximum catch per fishing session was one to three kilograms and sold at more or less PHP 10 (Philippine Peso) (USD 0.23) per kilogram. Monthly income from goby fishing was from PHP 100 to PHP 200 (USD 2.35 to USD 4.71) only. Goby species such as Sicyopterus lagocephalus, Oxyeleotris lineolata, Awaous melanocephalus, A. ocellaris, Giuris margaritacea, and Rhyacichthys aspro were the preferred prey species. Findings suggest that goby fishing was not a major source of livelihood as fishers were not earning much from it. However, as a bycatch, the goby population is under threat, with their economic and ecological benefits not utilized. Destructive fishing methods such as cyanide fishing, electric fishing, and use of fine mesh nets might also adversely affect the goby population, despite being non-target species. Therefore, protection of target species from overexploitation would also benefit the goby species.