Sufficiency economy

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Sufficiency economy (Thai: เศรษฐกิจพอเพียง, romanized: Setthakit Phophiang) is the name of a Thai development approach attributed to the late King Bhumibol Adulyadej's "sufficiency economy philosophy" (SEP). It has been elaborated upon by Thai academics and agencies, promoted by the Government of Thailand, and applied by over 23,000 villages in Thailand that have SEP-based projects in operation.[1]: 33 

History

Soon after ascending to the throne in 1946, King Bhumibol toured the country and became aware of the hardships facing Thai farmers. At that time, the per capita

GDP was about US$200. He took a keen interest in rural development, and instituted a number of royal projects to help the lot of the rural impoverished.[1]
: 26 

The sufficiency economy philosophy was elaborated upon in the king's speeches to students at Kasetsart University in 1974[2] and Khon Kaen University. To the latter he said, "Development of the country must proceed in stages. First of all, there must be a foundation with the majority of the people having enough to live on by using methods and equipment which are economical but technically correct as well. When such a secure foundation is adequately ready and operational, then it can be gradually expanded and developed to raise prosperity and the economic standard to a higher level by stages."[2]: 26–27 

Sufficiency economy came to prominence during the 1997 economic crisis when the king told a nationwide television audience, "Recently, so many projects have been implemented, so many factories have been built, that it was thought Thailand would become a little tiger, and then a big tiger. People were crazy about becoming a tiger...Being a tiger is not important. The important thing for us is to have a sufficient economy. A sufficient economy means to have enough to support ourselves..."[2]: 20 

The sufficiency economy

Three interrelated components and two underlying conditions are central to SEP's application. The three components are reasonableness (or wisdom), moderation, and prudence. Two essential underlying conditions are knowledge and morality. In contrast to the concept that the primary duty of a company is to maximize profits for the benefit of shareholders, SEP emphasizes maximizing the interests of all stakeholders and having a greater focus on long-term profitability as opposed to short-term success.[1]: 26–27 

The Chaipattana Foundation says sufficiency economy is "...a method of development based on moderation, prudence, and social immunity, one that uses knowledge and virtue as guidelines in living."[3]

A chapter entitled "

E.F. Schumacher's 1973 book, Small Is Beautiful provides much of the intellectual underpinning of King Bhumibol's sufficiency economy theories. The king was moved to translate it—it is not clear if he translated only the chapter or the book in its entirety—into the Thai language.[4] Schumacher was a Christian whose thinking was influenced by what he observed in Burma and India.[5]

Sufficiency economy is not a

cultural changes in the world."[7]

The Oxford Business Group's 2016 report on Thailand says "the sufficiency economy concept puts sustainability at its very core" and "is now seen as an important contributor to the UN's international development goals...advancing a different approach from short-term shareholder value-centred ideas of economic development."[8]

Self-sufficiency economics promotes the idea of limited production in order to protect the environment and conserve scarce resources. Production should be aimed at individual consumption. Production in excess of consumption may be sold. The philosophy holds that the rich can consume as many resources as they like so long as their consumption does not incur debt, and that the poor should consume resources without borrowing.

Translating philosophy into action

The Thai governmental organisation most responsible for implementing the sufficiency economy is the

National Economic and Social Development Board (NESDB). The NESDB's primary tool for mobilising action is the publication of the National Economic and Development Plan. The latest (twelfth) version of this plan covers the years 2017–2021.[9]

After the

self-sufficiency was one of the fundamental roles of the state.[11]

The junta-appointed Prime Minister, Surayud Chulanont, pledged to allocate 10 billion baht (US$300 million) for projects to promote well-being in line with King Bhumibol's sufficiency economy principle. He made the pledge while participating in King Bhumibol's 80th birthday celebrations.[12]

Pit thong lang phra

Pit thong lang phra (

Narathiwat Provinces. It will be funded with 1.5 billion baht from the Office of the Prime Minister, focusing the efforts of four state agencies.[14]

Critiques

Many economists were, for the most part, left confused by the meaning of sufficiency economy. After a meeting with Thai

NGO activists who embraced the king's sufficiency economy theory to oppose the construction of large-scale dams were rebuffed by Bhumibol, a long-time advocate of dam construction, who claimed that the deforestation caused by dams was a necessary evil to provide consistent energy and water sources for farmers.[citation needed
]

There have been efforts by the military government to incorporate the king's sufficiency economy in national economic policy. Thai critics are generally careful to direct their criticisms towards the military rather than the king, out of fear of prosecution for

lèse majesté.[15]
Consequently, criticisms are most often targeted at ineffective application rather than disagreement in principle. Nonetheless, common points of disagreement include:

  1. The philosophy is not consistent with the realities of Thailand's economic development.[16]
  2. Nobody understands what "sufficiency economy" really means and there are several vague interpretations.

Professor Kevin Hewison, Director of the Carolina Asia Center at the University of North Carolina, is critical of sufficiency economy. He has written that, "Sufficiency Economy is essentially about keeping the poor in their place. The people and organisations that promote SE are a wonderfully contradictory lot. The king, promoting moderation, sits at the head of a family and institutional wealth that is huge, based on land ownership and large capitalist corporations. The Crown Property Bureau's known institutional wealth is estimated more than US$40 billion.... Prime Minister Surayud spends considerable time talking up SE and his government has made huge budget allocations to SE activities. Meanwhile, Surayud has declared collections of luxury cars and watches and expensive homes, despite having been on a relatively low military salary his entire career. The contradictions are massive. For the wealthy, SE means that they can enjoy their wealth so long as they do so within their means. For the poor, the advice is to make do. In class terms, SE becomes an ideology to justify inequalities.[17]

See also

References

  1. ^ a b c South-South in Action; Sustainability in Thailand; Experience for Developing Countries (PDF). New York: United Nations Office for South-South Cooperation and Ministry of Foreign Affairs of Thailand. 2017. Retrieved 2 March 2017.
  2. ^
    ISBN 978-974-88126-3-2
    . Retrieved 10 December 2016.
  3. ^ "Philosophy of Sufficiency Economy". Chaipattana Foundation. Retrieved 22 June 2020.
  4. ^ An official biography of King Bhumibol says he "used part of the material in the book...for a Thai discourse on Buddhist Economics." National Identity Office, Secretariat of the Prime Minister, Thailand. King Bhumibol: Strength of the Land. vol.2, 2000 p 64.
  5. ^ Schumacher, E.F. (1973). "Buddhist Economics". Small Is Beautiful: A Study of Economics As If People Mattered. London: Blond & Briggs Ltd. Retrieved 10 December 2016.
  6. doi:10.18356/02bd5fb3-en
    . Retrieved 1 October 2016.
  7. ^ "Sufficiency Economy: Implications and Applications" (PDF). NESDB. Archived from the original (PDF) on 19 July 2011. Retrieved 6 May 2010.
  8. ^ "Thailand applies sufficiency economy philosophy to promote sustainable development". Oxford Business Group. 2016. Retrieved 12 November 2016.
  9. ^ "The Twelfth National Economic and Social Development Plan (2017-2021)". National Economic and Social Development Board. Retrieved 4 July 2018.
  10. ^ "Rebranding Thaksinomics", The Economist, 11 January 2007
  11. ^ a b Crispin, Shawn W (5 October 2006). "In Thailand, a return to 'sufficiency'". Asia Times. Archived from the original on 15 November 2016. Retrieved 10 December 2016.{{cite news}}: CS1 maint: unfit URL (link)
  12. ^ "PM earmarks B10bn for well-being", Bangkok Post, 10 March 2007[dead link]
  13. ^ Theparat, Chatrudee (13 October 2019). "Seeds of Sufficiency now flourishing". Bangkok Post. Retrieved 23 June 2020.
  14. ^ Theparat, Chatrudee (28 February 2017). "4 more areas to try sufficiency economy". Bangkok Post. Retrieved 1 March 2017.
  15. ^ Farrelly, Nicholas (29 March 2010). "Oranuch on sufficiency economy". New Mandala. Retrieved 22 June 2020.
  16. ^ Walker, Andrew (28 January 2008). "Royal misrepresentation of rural livelihoods". New Mandala. Retrieved 23 June 2020.
  17. ^ Farrelly, Nicholas (20 August 2007). "Interview with Professor Kevin Hewison – Part Two". New Mandala. Retrieved 6 February 2015.

Further reading

External links

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