| The dominant view among policy-makers in Sarawak, a resource frontier state in Malaysian Borneo, is that the only viable way to involve smallholders in the oil palm boom that has transformed the agricultural economy of that island is to consolidate them into larger production entities with externally provided management and finance. However, despite lack of government support, the area of smallholder oil palm has increased dramatically in the past decade in those regions with access to roads and palm oil mills. We argue that, once processing infrastructure is in place, oil palm smallholders can readily take advantage of this infrastructure to pursue a profitable livelihood option, with lower cost and greater flexibility than large-scale operations. In this... |
