According to Myint's "vent-for-surplus"
theory, development of the economies of Indonesia, the
Philippines, and Thailand from the nineteenth century on
depended on the natural advantage of large tracts of unused
"empty land" with low population density and abundant natural
resources of the type typically found in Southeast Asia and
Africa at the outset of Western colonization. When these
economies were integrated into international trade, hitherto

The process by which different
ecological conditions and historical trajectories interacted
to create different social and cultural systems resulted in
major differences in economic development performance within
Southeast Asia. In the late 19th century, Indonesia, the
Philippines, and Thailand commonly experienced
vent-for-surplus development through exploitation of unused
lands. Nevertheless, different agrarian structures were

This study is undertaken to quantify the benefits of contract farming (CF) on farmers’ income in a case where new market opportunities are emerging for smallholder farmers in Nepal. CF is emerging as an important form of vertical coordination in the agrifood supply chain. The prospect for CF in a country like Nepal with accessibility issues, underdeveloped markets, and lack of amenities remains ambiguous. On the one hand, contractors find it difficult to build links in these cases, particularly when final consumers have quality and safety requirements.

Contract farming may be defined as agricultural production carried out according to a prior agreement in which the farmer commits to producing a given product in a given manner and the buyer commits to purchasing it. Often, the buyer provides the farmer with technical assistance, seeds, fertilizer, and other inputs on credit and offers a guaranteed price for the output. Proponents of contract farming argue that it links small-scale farmers to lucrative markets and solves a number of problems small-scale farmers face in diversifying into high-value commodities.