Services Trade Liberalization and Food Security: Exploring the links in the Association of Southeast Asian Nations (ASEAN)

The document explores the nexus between services trade liberalization and food security in ASEAN, focusing specifically on financial and logistics services. It argues that while liberalization alone is insufficient to overcome structural barriers—such as the reluctance of banks to lend to smallholder farmers or poor infrastructure in least-developed member states—strategic reforms in these sectors could reduce food costs, improve supply chain efficiency, and enhance rural financial access. The authors highlight a correlation between poor logistics infrastructure and high food insecurity in countries like Indonesia, Cambodia, and the Philippines, and suggest that food security should be more prominently integrated into regional logistics and financial policy debates.

• Nearly 80 million people within ASEAN's population of 550 million are considered food insecure, with Cambodia, Indonesia, Lao PDR, the Philippines, and Timor Leste identified as Low-Income Food-Deficit countries in 2011.
• Financial sector liberalization has not significantly improved credit access for the rural poor because foreign banks typically focus on large firms and high net-worth individuals, and smallholder farmers are often not viewed as 'bankable'.
• Foreign banks in ASEAN face operational restrictions that limit their reach; for example, in Thailand, while three branches are technically allowed, in practice, no foreign bank has been granted approval for more than one.
• There is a correlation between poor logistics friendliness and food insecurity; countries with 'D' or 'C' ratings in logistics friendliness, such as Indonesia, Cambodia, Lao PDR, the Philippines, and Vietnam, also face major food deficit problems.
• Poor logistics infrastructure in Indonesia leads to significant food price differentials between provinces; consumers in remote areas like North Sulawesi and West Kalimantan pay higher prices for rice than the national average.
• Regional food trade for rice and maize is hindered by port inefficiencies in exporting countries like Vietnam and importing countries like Indonesia and the Philippines, with port waiting times accounting for approximately 45% of the total transport time.
• ASEAN has established regional mechanisms to address food security, including the ASEAN Integrated Food Security framework and the APT Emergency Rice Reserve (APTERR), which holds 787,000 tonnes of rice.
• Logistics services quality varies drastically across the region, with Singapore ranked 1st in the 2012 World Bank Logistic Performance Index, while Myanmar ranked 129th.

APA

Chandra, A. C., & Kinasih, H. N. (2012). Services Trade Liberalization and Food Security: Exploring the links in the Association of Southeast Asian Nations (ASEAN). International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/services_trade_liberalization_asean.pdf

Chicago

Chandra, Alexander C., and Herjuno N. Kinasih. Services Trade Liberalization and Food Security: Exploring the links in the Association of Southeast Asian Nations (ASEAN). International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/services_trade_liberalization_asean.pdf.

Wikipedia

{{cite report |last1=Chandra |first1=Alexander C. |last2=Kinasih |first2=Herjuno N. |title=Services Trade Liberalization and Food Security: Exploring the links in the Association of Southeast Asian Nations (ASEAN) |publisher=International Institute for Sustainable Development |date=December 2012 |url=https://www.iisd.org/system/files/publications/services_trade_liberalization_asean.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chandra2012services, author = {Chandra, Alexander C. and Kinasih, Herjuno N.}, title = {{Services Trade Liberalization and Food Security: Exploring the links in the Association of Southeast Asian Nations (ASEAN)}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = dec, url = {https://www.iisd.org/system/files/publications/services_trade_liberalization_asean.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }