Ahmad Homidi's unassuming manner belies the turmoil he lived through as a child. He and his family fled the Soviet invasion of Afghanistan, forcing his parents to start from scratch as refugees in the United States. He joined CISAC in 2011 as the administrative manager, after navigating the 2007 housing crash as the broker of a real estate firm.

His story is a study in fresh starts.

Homidi was a child in Afghanistan when the Soviet Union invaded his homeland. His parents were faced with a hard choice: His father could join the military and fight the invasion or the family could leave the country. Or his parents – already refugees from their native Uzbekistan – could once again look for a better life in another country.

"Fleeing the country meant you couldn't just walk into a bank and empty out your account," said Homidi. "It meant carrying whatever you could, physically, and leaving that night. Whatever mattress money my father had saved up, he took with him."

Homidi, at the time 4 years old, along with his parents, older brother and little sister, hid in military vehicles and tractors. Their father bribed officials to smuggle them across the border into Pakistan. Once there, they faced discrimination for their refugee status and his father had trouble finding work. After a year living in a Karachi apartment shared by several families, Homidi's father put out a lifeline to an old colleague in the United States.

"Fleeing the country meant you couldn't just walk into a bank and empty out your account. It meant carrying whatever you could, physically, and leaving that night."

His father remembered a professor with whom he had worked at a university in Beirut.

"With his funds depleted, he just wrote a letter addressed to 'Dr. Jerry Nielsen, Montana,’ and he put a stamp on it and he hoped and prayed that it actually reached him at Montana State University," Homidi said. "Lo and behold, it did.”

Dr. Nielsen sponsored the Homidi family for entry into the United States in 1982. They lived in Montana for several months before moving to the Bay Area, where a large Afghan expat community helped the Homidis get settled in Fremont. Homidi's father soon realized his foreign master's degree in agriculture and his former life as a professor and executive didn’t go far in America.

"At that point, he had the option to say, 'Things aren't going to work out here. We'll just have a meager existence,' or he could say, 'I have to rebuild myself,'" Homidi said of his father. "He chose to rebuild himself."

Homidi's father worked three jobs while putting himself through school, and successfully pulled his family into the American middle class. Homidi credits his own strong work ethic to his father's unwavering determination to earn his way in America.

Homidi's father had the option to say, "'Things aren't going to work out here. We'll just have a meager existence.' He chose to rebuild himself."

Homidi had ambition and wanted a fulfilling job in a competitive environment. This led him to his first career in real estate.

"The allure of working on commission was something I thought made sense: the harder you work and the smarter you work, the more money you can make,” he said. “So in 1999 I got into real estate while supporting myself through college."

After graduating from San Jose State University with a business degree, Homidi joined another real estate firm as office manager. Over the next five years, he helped grow the company from one Bay Area office with 45 agents to six offices across California with more than 200 agents. He rose within the company and, when the firm was sold, took over one office as head broker.

Homidi was leading that firm when the housing market collapsed in 2007. In 2010, when he found that most of his new business was from the very banks foreclosing on homes, he knew it was time to get out. He decided to scale back the firm when he saw his employees struggling to sell houses, and did his best to help them find other jobs.

"I saw myself as helping families achieve their dreams of homeownership and prosperity. That was one of the main rewards of the business," he said of the pre-crash years. "Never did I imagine I would one day be kicking people out of their homes. I knew right then and there that this was no longer what I wanted to do."

With his interest in international affairs, sparked by his family background, he jumped at the opportunity to join CISAC in 2011 as a fixed-term staffer.

"I'm struck by what we do, and the scale that we do it at," he said. "I am very fortunate to work in such an amazing environment, to be around the people that we're working with and collaborating with in different ways, it's pretty amazing."

China’s commitment to agricultural development over the last thirty years has dramatically transformed the country’s economy. Rural income per capita has risen an astounding 20 times after 30 prior years of stagnation. Its poverty rate (US$1.25/day) has dropped from 40 percent to less than five, and 350 million rural people between the ages of 18-65 are now working in the industrial or service sector, enjoying rising wages and new economic opportunities.

This rapid transformation is largely the result of three key agricultural policy decisions: putting land in the hands of farmers, market deregulation, and major public investment in the agricultural sector. Although China must now contend with extreme inequality, high levels of pollution, and an aging farming sector there are still lessons to draw from China’s experience that could hasten the transformation of other developing countries.

China expert and agricultural economist Scott Rozelle broke these lessons down at FSE’s fourteenth Global Food Policy and Food Security Symposium Series last week, opening with an underlying theme of the series.

“Growth and development starts with agriculture,” said Rozelle. “Agriculture provides the basis for sound, sustained economic growth needed to build housing, invest in education for kids, start self-employed enterprises, and finance moves off the farm.”

To prove this point he referenced China’s ‘lost decades’ (1950s-1970s) when 80 percent of the population lived in the rural sector and relied on communal, subsistence agriculture. Poor land rights, weak incentives, incomplete markets and inappropriate investments left the average rural farmer poorer at the end of 70s than they were in the 50s with almost no off-farm employment growth.

So what changed? Incentives, market deregulation and strategic investments by the state were key.

Creating the right incentives

In 1978 the Chinese government broke the communes down into small “family farms” such that every rural resident was allocated a small parcel of land. A family of five farmed an area the size of a football field. While they did not own nor could sell the land, they had the right to choose what crops and inputs they used and the right to the income generated from their land.

“Incentives are important, and can be enough in the short run,” said Rozelle. “Hard work led to money in the pockets of farmers and China was off.”

“Every two and half years China added another California in term of agriculture,” said Rozelle.

Between 1979 and 1985 productivity for wheat, maize, and rice went up 50 percent using the same amount of labor, land and inputs. Agriculture across the spectrum has grown at an astounding rate of 5 percent since 1988 (about four times the population growth rate). Livestock and fisheries have grown even faster – accounting for most of the output of the agricultural sector by 2005.

Income growth from farming enabled family members to begin to seek work off the farm. Between 1980 and 2011, off-farm work increased 71 percent with more than 90 percent of households reporting that at least one family member worked off the farm.

Increasing efficiency through liberalization and investment

Another key policy decision was China’s commitment to market liberalization and investment in public goods.

“Markets can be an effective, pro-poor tool of development,” said Rozelle. “A remarkable partnership is formed when you let farmers do production and government do infrastructure…let markets guide decisions.”

The government dismantled state-owned grain trading companies and deregulated trading rules. Prices were set once a week the same day across China to better integrate markets, and eventually prices for major crops closely mirrored those of world prices. Villages began specializing in crops and livestock and incomes of the poor increased. By not providing government input subsidies (e.g, pesticides, fertilizers), traders were incentivized to participate in the market.

“Giving land to farmers and letting the private sector emerge is an easy thing for governments, even without a lot of money, to do,” said Rozelle.

The government provided more indirect market support by publicly investing in better roads, communications, and surface water irrigation. Groundwater was left to the private sector. There were no water or pumping fees nor subsidies for electricity, keeping it completely deregulated. As a result, 50 percent of cultivated land in China is irrigated, compared to 10 percent in the US and only four percent in sub-Saharan Africa.

Finally, China has invested heavily in agricultural research and development (R&D). One percent of China’s agricultural GDP is now invested in agricultural R&D while US investment has fallen over time. US$2 billion alone goes to investments in Chinese biotechnology.

Despite major investment, China only has one major success story to show for so far. The introduction of Bt cotton led to a significant drop in pesticide use (with important health benefits for farmers), and drop in labor and seed price; resulting in a huge 30 percent increase in net income.

“GM technology benefits exist but big policy decisions still need to be made in the face of much resistance both in China and elsewhere in the world on its application,” said Rozelle.

Status of China’s economy

China has largely solved the country’s macro-nutrient food security problem at the household level (>3000 Kcal/day/person) and millions have been lifted out of poverty. Practically all 16-25 years old are now working off the farm.

“This is a real transformation, and one that could not have happened without a major investment in agriculture,” said Rozelle.

While China’s agricultural accomplishments have been major, Rozelle recognizes the system is far from perfect. For starters, there are serious food safety concerns due to lack of traceability. An astounding 98 percent of Beijing consumers think their food is tainted, said Rozelle.

Water is being pumped like crazy and farmers are aging. The younger generation is neither willing nor interested in following in their parents’ farming footsteps. To make up for a labor deficit farmers are applying huge amounts of fertilizer on their land with serious environmental consequences. As a result of changing demographics and an increasing demand for meat, fish, fruits and vegetables, China is likely to be a net importer of food in the long run.

China also faces major urban and rural inequality issues. Even though wages have risen, inequality has not fallen, largely a result of China’s decision not to privatize rural land.

“Rural people have no assets on which to build wealth while urban people were given assets in the form of housing,” said Rozelle. “Housing prices in major cities in China now rival those in the Bay Area!”

The Chinese government fears losing control of the land, but this comes at a price of less individual incentive to invest and inability to build larger farmers. As agricultural growth slows, Rozelle worries high levels of inequality could lead to instability.

Adding fuel to the fire, investment in rural health, nutrition, and education remains far from sufficient. Only 40 percent of the rural poor go to high school resulting in 200 million people who can barely read or write.

“What’s going to happen in 20 years when low skill manufacturing jobs move to other countries?” asked Rozelle. “The rural, uneducated poor are going to become unemployable.”

China’s record leaves room for improvement, but presents a strong case for supporting smallholder agriculture. For those countries emerging out of their own lost decades, smallholder agriculture should remain a primary focus of investment and development.

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Thirty years ago, I crossed the Pacific for the first time, traveling from Seoul to attend graduate school in Seattle. Meanwhile, down the coast at Stanford, a visionary group of faculty was laying the bedrock of a unique organization committed to promoting strong U.S.-Asia relations through research on timely, policy-relevant issues.

Early research initiatives looked at themes like Northeast Asia regional security and the development of the high-tech industry in Asia and the United States. From the very beginning of Asia’s transformation and through the twilight of the Cold War era, such projects brought together leading scholars from Asia and Stanford, and high-level U.S. and Asian policymakers, for fruitful collaboration and dialogue.

Twenty years later, in September 2005, I became director of the newly endowed Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC), a thriving organization poised for even greater growth. I gratefully acknowledge the support of Mr. Shorenstein and our many generous donors, as well as the three decades of work by dedicated faculty, researchers, staff, and, not least of all, the five visionary directors who served before me.

Asia has grown over the past three decades into a key global region, and at no other time in history have there been such significant ties between the United States and Asia. Although we have expanded the scope of our regional expertise and research, we stay true to our Center’s original mission.

Today, Shorenstein APARC boasts five flourishing research programs: the Asia Health Policy Program, Japan Studies Program, Korean Studies Program, Southeast Asia Forum, and Stanford China Program. We have brought hundreds of visiting scholars, practitioners, and fellows to the Center over the years, and have established a strong and ever-growing alumni network in Asia through our Corporate Affiliates Program. I remain grateful and honored to serve this wonderful research institution.

As we celebrate our thirtieth anniversary this May, we honor a vision turned into successful reality, and head toward a bright future of possibilities for continuing our work to foster lasting, cooperative relations with the countries of the Asia-Pacific region.

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