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1　ARTICLESLimits to Agribusiness-led Development:A Structural Analysis of the Malaysian Palm Oil IndustryIwasa Kazuyuki　　IntroductionIn the agro-food sectors, East and Southeast Asian countries hav....

1　ARTICLESLimits to Agribusiness-led Development:A Structural Analysis of the Malaysian Palm Oil IndustryIwasa Kazuyuki　　IntroductionIn the agro-food sectors, East and Southeast Asian countries have experienced thepressure of global competition under the WTO regime, Free Trade Agreements (FTAs),Economic Partnership Agreements (EPAs), or the Trans-Pacific Partnership Agreement(TPP). Most of the countries have given high priority to large-scale export-orientedagriculture for the purpose of national development1. This paper focuses on Malaysianpalm oil, one of the highest growth commodities in the world, and explores the role ofpalm oil-related agribusiness and its socio-political contradiction.Palm oil is a variety of vegetable oil, made from the perennial oil palm tree. Recentlyit has been the most widely consumed among vegetable oils, and widely used worldwidefor products such as cooking oil, confectionery, or detergents. In addition, it has drawnconsiderable attention as biodiesel, a substitute for petroleum. As we will note later,this demand has been supported by the massive supply from Southeast Asia since the1960s, and Malaysia, in particular, has been the leading producer/exporter in the world.Malaysian Government and business circles have praised palm oil as the “Golden Gift,”and have actively promoted the agro-industrial development based on various businessviewpoints2.Despite this achievement, it is only one aspect to evaluate Malaysian palm oil as a“success story.” Behind its rapid industrial growth, large-scale development of oil palmplantations has brought about massive environmental destruction and social conflicts.Local communities and international NGOs have opposed such forms of development,and formulated anti-palm oil campaigns mainly in the EU3. With increased attentionon issues related to development, International Organizations also address this issue todiscuss and survey the current situation4. In Japan, Lion Corporation, one of the chemicalKochi University Review of Social Science No. 102 November 2011