Agricultural innovation has played a critical role in the economic transformation of developing East Asian countries over the past half century. This transformation began with the diffusion and adoption of high-yielding seed varieties, modern fertilizers, and other agricultural technologies (for example, pesticides, machinery), commonly known as the Green Revolution. A strong focus on increased production and food security, and rapid adoption of modern rice and corn varieties, coupled with investments in irrigation, agricultural extension services, and broad economic reforms, resulted in dramatic increases in crop yields and agricultural productivity across the region (figure ES.1). This higher productivity, in turn, contributed to higher farm incomes and lower poverty in rural areas. Higher agricultural productivity freed rural labor to move into manufacturing and services, and it enabled significant expansion and intensification of export-oriented commodity production. In short, innovations in agriculture helped lay the foundation for the structural transformation that has fueled subsequent growth and development across the region.

Despite significant structural changes in the region’s economies, with rapid growth in manufacturing and services, the agri-food sector remains highly important for developing East Asia. The food value chain accounts for roughly 14 percent of the region’s gross domestic product (GDP) and 35 percent of the labor force, with considerably higher shares in several lower-middle-income countries (figures ES.2 and ES.3). Nearly 40 percent of Vietnam’s labor force still works in agriculture, for example, as does 50 percent of the labor force in Myanmar, and more than 33 percent of the labor force in the Lao People’s Democratic Republic. Moreover, the region dominates global trade in tropical fruits and is gradually expanding exports in horticulture, seafood, and processed products. Agricultural sector performance thus remains important to the region’s development, including for raising rural households’ incomes, further reducing poverty, and meeting countries’ growing food demand and nutrition requirements.