Sustainable and Equitable Development in Southeast Asia and Latin America: Comparative Perspective

GC003-17SBS: Sustainable and Equitable Development in Southeast Asia and Latin America: Comparative Perspective

Abstract:

Following the global financial crisis in 2008, economies around the world were mired in a recession reminiscent of the great depression of the late 1920s. This crisis compelled governments to actively review their models of economic development, specifically the extent of the role of the state in the economy, the policies that had to be promulgated to ensure sustained growth of entrepreneurial domestic firms, and the creation of new industries in niche and emerging sectors to enable their economies to compete effectively in a globalized economy while protecting the environment and the wellbeing of their citizens.

Two regions that were deeply mired in economic crises after 2008 were Southeast Asia and South America, where debates subsequently emerged about forms of sustainable development and the creation and promotion of new industries to ensure long term economic growth. A close assessment of Southeast Asian and South American economies would indicate that there are varying degrees to which the state intervenes in countries to promote domestic enterprise and create or promote new industries including to facilitate industrialization. The pattern and extent of state intervention in these economies have been crucial in determining the type of companies, or business groups, that have secured a prominent presence in each country in these two regions. The business groups comprise government-linked companies, family firms and professionally-led multinational enterprises. A focal point of this study is to assess the outcomes of state intervention in the economy, based on different models of economic development that have been adopted. Among the most important models of development that will be assessed are that of the developmental state (involving active state intervention) and neoliberalism (where the private sector functions as the primary engine of economic growth).

This project reviews and compares how these economies have developed and how they plan to foster equitable and sustainable economic growth and social wellbeing in the post-2008 period. To assess how they have fared, we propose a multi-disciplinary comparative study looking at two key sectors where their business groups have a dominant presence, with active state support, and where they have embarked on technological upgrading to improve the quality of their products as well as create new markets for these industries. This study will compare the commodities sector in Southeast Asia and Latin America from where important spin-of industries are emerging to deal with issues such as alternative and clean energy, food security and healthy living.

The study will focus on the mature oil palm industry and an ‘infant’ biofuels sector in Southeast Asia and a burgeoning palm oil industry and well-developed biofuel sector in Latin America. Both regions view the development of these two sectors as crucial to sustain long-term economic growth with much state support for domestic companies investing in research and development (R&D) to create high quality products that can be exported. Latin America currently produces 6% of the world’s palm oil, while Malaysia and Indonesia combined produces more than 90% (RSPO, 2015). Latin America is emerging as a major global producer of biofuels, while in Southeast Asia there has been a growing number of public polices to promote industry involvement in biofuels and agribusiness driven by the need to respond to global demand for fuel and food while also seeing this as a mechanism to ensure energy security, stimulate rural development, reduce poverty and create jobs.

Crucially too, Southeast Asia, as home to a mature palm oil industry, can provide lessons that can help Latin America develop this sector without replicating mistakes while also ensuring equitable land distribution for the poor and more environmentally sound methods to cultivate this product. Similarly, Latin America offers Southeast Asia vital lessons about how to nurture a biofuels industry that can be sustained in the long-run. Latin American countries are choosing to venture into palm oil in a big way while countries in Southeast Asia are actively pursuing methods to enhance biofuel production. An issue of importance to both regions is that the export of both palm oil and biofuels-related products have been subjected to much criticism in Europe and North America, ostensibly because they impair the health of people.

Objectives:

1. Business Groups and Equitable Development-To determine the result of government policies on enterprise development, to assess the extent of entrepreneurial capacity and to review the level of technological development and the problems encountered in palm oil and biofuels.

2. Environmental Governance- To compare the extent of environmental impact and government addressed environmental and to compare how both regions balance developmental pressures (from palm oil) against climate change concerns.

3. International Trade- To profile the regulatory landscape for trade in the oil-palm based industry, to examine the direct impacts of core non-tariff measures on the global exports of Malaysia and Colombia and to provide an outlook for expanding oil-palm exports to new (non-traditional) markets.

4. Biofuels – Enhancement of Biofuel Production from Tropical Biodiversity Sources, to compare biofuel production from tropical biodiversity, to improve the production and characteristic and to assess environmental impact of palm oil based biofuel produced via enzymatic reaction.

5. Health – Palm oil consumption and cardiovascular health, to compare the contribution of palm oil consumption to cardiovascular disease mortality and to compare the fatty acid and nutritional profile of palm oil produced by both regions and its effect on cardiovascular function.

Methodology:

The study will be based on the following methods to secure information an in depth study, a comparative study, desk review of literature, and environmental standards and policies, consultation, empirical, raw material and feedstock preparation, oil extraction and characteristics analysis, experimental study on biofuel production via enzymatic reaction and properties, physiochemical properties comparison and quality improvement, environmental impact assessment and life cycle cost analysis. The effects of palm oil on blood lipids parameters and its association with CVD will be passed by a systematic review and meta-analysis to assess. Given that dietary lipid composition affect the development of CVS dysfunction, in-vivo and ex-vivo lab work will be conducted to investigate how palm oil produced in South East Asia and Latin American counties differentially affect lipid profile, adiposity, insulin resistance, cardiac metabolism and subsequently function.

Expected outputs:

3 Master/PhD, 5 ISI papers and 4 Scopus papers, 1 edited volume, 1 policy paper and/or infographic, Collaboration with foreign professors and international universities in Latin America, 1 policy paper and 1 workshop with selected Southeast Asian and Latin American countries.

Sub-Programme Leader:

Prof. Dr. Edmund Terence Gomez

Duration:

31 December 2017 – 31 December 2018

Grant Amount:

RM 250,000.00