When agricultural commodities in developing countries experience an economic boom, they offer potential pathways out of poverty while creating environmental and social problems. While recent research provides insights into the governance of international supply chains, it provides less analysis of the local production networks creating critical problems. Indonesia is now the world's largest exporter of crude palm oil. This paper analyses processes of oil palm development in three oil palm districts. It considers how policy models, regime interests, and agribusiness strategies shape local production networks, generate local outcomes, and affect the possibilities of tackling issues associated with this boom.
Participation is commonly accepted to be a process that brings stakeholders together to define issues and create mutually beneficial outcomes. In the fields of development and natural resource management, participation is such a widely accepted part of policy that it is rare to find a project or programme that does not exhort the practice of participation and stakeholder engagement. However, despite the considerable weight of orthodoxy advocating greater participation and stakeholder engagement in development, the participative processes and power relations underpinning such engagement are rarely analysed in careful detail. This is particularly the case with oil palm plantations in frontier Indonesia and the interactions between the principal stakeholders at the plantation-community level. There has been minimal analysis to date appraising how such stakeholders interact in relation to a plantation, and there is limited description outlining the divergent viewpoints from such stakeholders. The paper argues that one local stakeholder group, oil palm smallholders, usually possess some agency in their decision-making and interactions with a plantation organisation but that existing structural and informal modes of interaction often limit the transformative potential of participation for all stakeholders.
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