Saturday, January 25, 2014
Rice Cultivation Changing in Vietnam
Rice cultivation has been a staple of the Vietnamese economy ever since the country declared its independence from France in 1945. Environmental stress on the region has led to nutrient deficient rice that has hurt the the capacity for Vietnamese farmers to export their rice; it seems as though, for many, rice cultivation, no longer remains a source of viable income. Another layer to the issue is the government and economic structure. Most of the rice is purchased by the state-owned farms with ties to corporate firms. There is also an incriminating lack of farmers on the very powerful Vietnamese Food Association, and push-back from state-owned rice exporters who don't want to make any changes that would diminish their profits. This is exacerbated by the fact the new constitution passed last November which continues to call for the state-owned enterprises to remain a central fixture of the Vietnamese economy.
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2 comments:
Interesting article and it seems the situation is similar in many other countries where the economic situation is similar. The central government tries to control the agricultural sector only to favour their corporate 'friends'. Hopefully, they can rectify the situation before it gets to a stage where recovery will not be possible.
This is a great example of how possibly "obscure" externalities can impact a large market. It's important to think about how the environment itself can be such a controlling factor in large and interconnected economies. It's sad to see how corporate actors seem to be taking control over an economy that the Vietnamese people are trying to rely on.
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