Royal Misrepresentation of Rural Livelihoods

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Royal misrepresentation of rural livelihoods

January 28th, 2008 by Andrew Walker 9 Comments

Since the International Conference on Thai Studies, I have received a number of requests for thepaper I presented on sufficiency economy. The paper was not included on the conference CD

because I did not have time to submit it. So, here is the full text of my presentation. This is an

edited version of a longer and much more detailed paper (which I am still writing). Regularreaders of New Mandala will recognise much that is familiar!

A good place to start is a fairy story that has been produced in Thailand. The lavishly illustratedstory recounts the adventures of a little kingdom and its good king, who triumphs over a series of

dark forces.

One of the kings triumphs occurs during his many travels around the kingdom.

In a far off place, the king came across a village that had almost no one living there. Wherehas everyone gone the king asked the small group of remaining villagers.

The villagers answered their king: A demon of the dark called GREED came and visited

and asked the people to leave the village. Most of the villagers abandoned the village and went tolive in the City of Extravagance.

The king thought for a moment and then gave the villagers a radiant seed. The villagers took

the seed and planted it and it grew into the radiant tree that grew large branches and spread itsradiance in all directions.

The king told the villagers that the radiant tree is called SUFFICIENCY. The radiance of the

tree shone to far off places, as far as the City of Extravagance. And many of those who saw ittravelled back to return to their village.

Since the 2006 coup Thailand has embarked on an unprecedented spate of enthusiasm for the

royal theory commonly referred to as sufficiency economy. In order to draw a clear contrast withthe so-called populist policies of the overthrown Thaksin government, the coup makers have

devoted considerable attention to presenting their policies within a yellow package of royalist

sufficiency. Of course, much of this is rhetorical. It is hard to see how a 60 percent increase in themilitary budget could be consistent with the sufficiency economy prescription of reasonableness,

moderation and efficiency.

Nevertheless, sufficiency economy has become an ideological tool that seeks to moderate rising

rural expectations for economic and political inclusion. Whatever sufficiency economy thinkers

may have to say about urban consumers or businessmen, it is towards rising rural expectations for

economic and political inclusion that the sufficiency economy urgings of moderation are mostclearly directed. This is ideologically linked to the active delegitimisation of rural voters

electoral wishes in the post coup environment. Not only are rural people to be shielded (or

excluded) from full and active participation in the national economy but their full and activeparticipation in electoral democracy is delegitimised and the power of their elected

representatives constrained.

At the heart of sufficiency economys approach to rural Thailand is its three stage process ofhuman development. This staged process of development builds on a foundation of self reliant

agriculture. The first stage of human development involves the famous model farm, a much

cited example of royal genius. In the model farm, land is allocated (in thirds) between fish ponds,rice cultivation and crops/fruit.

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Of course, it would be foolhardy to take model farm too seriously but the emphasis on local

agricultural production as a basis for household sufficiency is clear.

But, the sufficiency economy advocates protest, this is not about a rejection of the marketaltogether. In the kings vision self-reliance did not mean isolation. The model farm was

expected to create a surplus beyond household consumption, and this surplus could be exchanged

on the local market. Stage 2 in the sufficiency economy model of development extends selfreliance to the community level with local exchange of household surpluses to meet local needs.

And, in turn, Stage 3 involves a higher level of external exchange to sell excess production and toobtain technology and resources.

It should be clear, then, that sufficiency economy is not about economic isolation. Stages 2 and 3

involve increasing levels of external exchange. But, and this is crucially important:

Before moving to another stage, there first had to be a firm foundation of self-reliance or else

there was a strong chance of failure and loss of independence. The driving force for developmenthad to come from within, based on accumulation of knowledge.

So, the sufficiency economy approach proposes a hierarchical model of rural economy in whichlivelihoods are based on a broad foundation of local agricultural sufficiency. On top of this

foundation local and non-local exchange involves the circulation of surpluses produced within

the subsistence-oriented base. Local subsistence needs, not regional, national or internationalmarket demand, are the key drivers of production. The exchange of surplus is primarily a

fortuitous by-product of the abundance of locally-oriented production.

In this paper I argue that this sufficiency economy view seriously misrepresents the nature ofrural livelihoods in contemporary Thailand. The view that agriculture can provide a firm

foundation of self reliance is a highly selective and simplified interpretation of contemporary

economic realities in rural Thailand. In fact, local agriculture frequently exists, and persists, on afoundation of external social and economic linkages. The notion that external linkages should

only be developed once there is a foundation in local sufficiency is simply not consistent with the

economically diversified livelihood strategies pursued by rural people in contemporary Thailand.It is an agrarian vision from the past.

I will demonstrate this, quite briefly, by examining the local economy in the village of Baan Tiam

- a lowland northern Thai village located about one hours drive from Chiang Mai.

The first thing I want to examine is Baan Tiams demographic transformation.

Over the past 50 years there has been sustained population growth in Baan Tiam. The village hasexpanded well beyond the original cluster of early settlers.

This population growth has been associated with two key demographic processed. First, as inmany other parts of rural Thailand, Baan Tiam has been a substantial exporter of population.

Second, local population growth has been accompanied by an ongoing withdrawal from

agricultural activity. This withdrawal has been driven both by agricultural resource constraintsand expanding opportunities in other sectors.

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These trends can be nicely illustrated in relation to the lineage of great-great-grandmother Pim,

who was the mother of this woman. At present I have information on 87 of her descendants and

their spouses. Of these almost exactly half are living outside the village and I have no doubt that

there are considerably more, given that my genealogical information on these scattereddescendants is much less complete.

Among those still living in Baan Tiam the relatively small number still working in agricultural isstriking. Grandmother Pim has 20 descendants currently resident in Baan Tiam who are of active

working age. Of these only about 10 are still active farmers. And the situation among Pims Baan

Tiam descendants is fairly representative of the situation in the entire village.

In brief, an examination of Baan Tiams livelihood demography immediately raises important

questions about the plausibility of an economic foundation in local sufficiency. There is no doubt

that agriculture plays a very important role in Baan Tiams economy but rather than representinga foundation for local sufficiency it is itself underpinned by substantial out-migration and internal

economic diversification. To put the matter bluntly: without these external livelihood options the

internal competition for agricultural land in Baan Tiam would be extreme and large numbers ofresidents would be forced to adopt low yielding upland agriculture in the neighbouring national

park in pursuit of the most basic subsistence livelihoods. The pressure on natural resources would

be immense. If all of great-grandmother Pims descendants were to return to the village from thecity of extravagance the royal tree of sufficiency would soon be cut down and sold to a furniture

factory in Hang Dong.

I will now move on to examine the main sectors of Baan Tiams economy. I will start with rice,and here I have provided a very rough indication of the size of the rice sector within the overall

village economy.

In relation to rice I will make five quick points.

First, in a very broad sense Baan Tiam can be regarded as self sufficient when it comes to rice.

My estimate of the rice subsistence requirement for the village as a whole is about 120 tonnes.Under good cultivation conditions the village produces about 140 tonnes of rice.

But this broad impression of rice sufficiency is rather misleading.

In fact only slightly over half of the villages households are engaged in rice cultivation (66 out

of 126). The most common reason for non-rice cultivation is that the households do not own any

agricultural land. The primary way in which non rice producing households obtain rice is viapurchase either within the village (from rice surplus households) or outside the village (from rice

traders in the nearby district centre). Some households obtain rice as payment for wage labour.

So, while in a very general sense Baan Tiam can be regarded as being rice sufficient, the ways inwhich people access rice varies significantly. Images of local sufficiency, even in the limited

sectors of the economy where they may be applicable, conceal local inequalities in access to

resources and production. The key point is that many rural people obtain their most basicsubsistence goods via market transactions.

The next key point is that Baan Tiams broadly defined rice sufficiency is a result of considerableout-migration. If significantly more people had remained in the village there simply would not be

enough locally produced rice for local consumption needs and dependence on external purchase

would be substantially higher than it is now.

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And rice sufficiency is a relatively recent phenomenon. Farmers report that rice yields have

increased dramatically in recent years as a result of the introduction of improved varieties

(especially Sanpatong 1). These varieties require relatively high inputs of fertiliser but the greatlyincreased returns easily justify the additional outlay. Of course, the sufficiency economy model

of rural development does provide for the introduction of new technology in Stage 3 of its model.

But according to sufficiency economy precepts this should follow on from a firm foundation inself reliance and local knowledge. In Baan Tiam, and many other parts of Thailand, improved

rice yields are the result of ongoing external investment in variety improvement, irrigation

infrastructure and agro-chemical input.

And finally, despite its cultural importance, rice is only one component of the contemporary

household economy. And, in fact, it is a relatively modest component. By my rough estimates the

cash value of rice production makes less than 10 percent of average household incomes innorthern Thailand. Even among those deemed to be living in absolute poverty rice production

may represent only 20 or 30 percent of total income.

I will now move on to cash crop production. In Baan Tiam some cash crops are grown in the wetseason, along with rice, but cash crop production takes place mainly in the dry season in irrigated

paddy fields. Here is a very quick view of cash crop production.

In relation to cash crops I have four key points.

First, cash crop cultivation represents a larger sector of the economy than rice cultivation. Oneindication of their importance is that the production of cash crops was nominated by 34 percent

of households as their most important source of income.

Second, Baan Tiam has been a long term cultivator of garlic, but in recent years there have been

problems with yield. These problems are locally perceived to be caused by climatic variation anddeclining soil fertility. The free trade agreement with China in 2003 also had a short term effect

on garlic prices and combined with a Thaksin government adjustment scheme this encouraged

some farmers to move out of garlic production.

So, farmers in Baan Tiam have faced many of the same environmental and economic anxieties

that have contributed to the sufficiency economy philosophy. As at a national level, Baan Tiamsfarmers have had to deal with concerns about resource degradation, environmental change and

external economic impacts. But their response has been quite different to that laid down by the

sufficiency economy precepts. Rather than seek limit their engagement with external markets and

focus on consolidating a subsistence oriented agricultural base, farmers have pursued new formsof engagement with agricultural commercialisation.

Largely in response to concerns about garlic production, Baan Tiams farmers have adopted arange of new cash crops. Most of the new cash crops are grown under contract farming

arrangements. Farmers regularly state that they have become interested in contract farming

because they do not have to invest their own capital (which is usually borrowed). There is astrong sense in Baan Tiam that the advent of contract farming has introduced a wider range of

agricultural alternatives into the village and these alternatives have been enhanced by some

degree of revival in the yields and price of garlic.

This is a system based on the active exploration of agricultural options introduced from outside

the village. While many farmers ultimately adopt one of the major crops this adoption is

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accompanied by careful observation and vigorous discussion of the numerous experiments that

are going on at the margin. The relatively small areas devoted to minor crops may not be

significant in terms of the overall local economy but they are sites of experimentation where

agricultural alternatives are actively tested and evaluated.I will deal with the issue of agricultural wage labour very briefly. The key point is that about 30

percent of Baan Tiams households are heavily dependant on agricultural wage labour, primarily

because they do not own any land. Most wage labour opportunities occur in the externallyoriented cash cropping sector - opportunities for local income are much more limited in the

subsistence oriented rice sector.

And I will also deal with non-agricultural enterprise briefly. This is an important and diversesector of Baan Tiams economy. I estimate that it represents something between 30 and 40

percent of the village economy. Key areas of enterprise and employment include construction,

local handicrafts and small scale industry, government employment, and shop-keeping.

A key point to underline here is that the government is a key source of direct employment and offinance for other economic activities that generate local employment. The Thaksins

governments stimulus of this sector was a key reason for its electoral popularity in Baan Tiam.

I will finish up by making three general points about sufficiency economy and itsmisrepresentation of rural livelihoods. And this image, from the Bangkok Post, of one of the

queens sufficiency economy projects in southern Thailand is a useful backdrop for the

discussion.

First, the image of rural economy which underlies the sufficiency economy philosophy is not one

that would stand up to any concerted ethnographic scrutiny in rural Thailand. It is an image inwhich external economic connections are, at best, peripheral and at worst highly disruptive. It is

an image of rural livelihood in which subsistence oriented agriculture is seen as potentially

providing a firm foundation for household livelihood and in which local subsistence needs are, or

should be, the primary driver of economic activity.

In this paper I have sought to paint a rather different picture of rural economy. The data from

Baan Tiam indicate that subsistence-oriented agriculture is just one component of a diverse andmultifaceted economy. And it is a relatively small component.

My second key point is that the sufficiency economy prescriptions for rural development areinappropriate and disempowering. Perhaps the best outcome is that sufficiency economy will

largely be ignored except as a promotional strategy for rural development programs. In the recent

election Matchimathipatais sufficiency economy policy for 9 million fish ponds, based on the

kings vision of the model farm, didnt seem to capture much electoral interest. They won sevenout of 480 seats.

But the possibility that sufficiency economy principles may shape future rural developmentpolicy cannot be too readily dismissed, especially given the current force of royalist thinking.

What is of most concern is the notion that local subsistence-oriented agriculture can act as a

foundation for rural livelihoods and that this foundation should be firmly established beforemoving on to the later stages of development (local exchange and then limited external

exchange). In relation to Baan Tiam I have already noted the very limited sense in which the

subsistence agricultural sector could be seen as providing some basis for local sufficiency in rice.Making this quite modest part of the local economy a primary focus for rural development would

be to condemn many rural households to a sector of the economy in which the potential for

livelihood transformation is very constrained. A more realistic development standpoint would be

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too see the foundation for local livelihood as lying in a diverse and spatially dispersed package of

agricultural and non-agricultural pursuits. Local economic resilience lies in diversity, not in a

narrowing of focus to subsistence production and locally oriented exchange. Strengthening this

diverse economic foundation involves a multi-faceted package of agricultural extension,enterprise development, infrastructure investment and, probably most importantly, high quality

primary and secondary education. Of course, there is considerable potential for improving

agricultural productivity and in enhancing subsistence security (especially for these mostvulnerable farmers who cultivate subsistence crops on marginal lands). But enhancing local

livelihoods will necessarily involve both supporting the production of higher value commercial

crops and supporting the ongoing movement of household labour and resources into non-agricultural pursuits.

But perhaps the current preoccupation with sufficiency economy does not really reflect a concern

with rural development at all. It is important to remember that one of the key ideological projectsof the regime in post-coup Thailand has been to argue that the Thaksin governments electoral

mandate was illegitimate because it had been bought from an unsophisticated and easily

manipulated electorate. The military and judicial overthrow of an elected government is justifiedon the basis that the Thai electorate, and especially the rural electorate, is in no position to make

rational political decisions. Rural voters, we are consistently told, are vulnerable to the lure of

vote buying and the political pressures of local strongmen. What is required is a political systemin which electoral power is tempered by the guiding hand of the good men in the judiciary and

the bureaucracy.

The sufficiency economy philosophy serves this ideological project very well. Its clear message

is that the appropriate role for the rural population is in localised and modest pursuits. Matters of

regional and national economy are for others to take care of. Underlying the sufficiency economy

approach is the message that when rural people become involved in these broader economicpursuits they readily breach the moral regulations of reasonableness, moderation and immunity.

Their journeys to the city are not attempts to improve their livelihoods but morally dubious

pursuits of extravagance. In the same way votes cast for Thaksin do not reflect local politicaljudgement but are the readily mobilised results of financial inducement. In this elite vision of

electoral participation the problem lies in money politics - the demon of greed. The solution lies

in the royally bestowed tree of local sufficiency.

Sango Mahanty // Jan 29, 2008 at 4:03 pm

Good paper Andrew. Relating the sufficiency economy concept back to Baan Thiam gives a

richness to your analysis on what the problems are with the concept. Is it possible though that the

idea is being interpreted and used diversely at the local level? We earlier discussed (not on thisblog) the case of a CBO in Kanchanaburi whose idea of sufficiency economy seems to be

strongly centred around improving financial literacy and planning in village households as well

as enterprise development. Subsistence agriculture was a tiny player in the local sufficiencyeconomy vision in this drought prone part of Kanchanaburi. I wonder if the grand plan of

sufficiency economy (as can so often be the case with grand plans) is starting to take on different

meanings for different people?

3buddhism adjunkt Cambodian Economic News: Ive been gone a long time

roundup// Jan 30, 2008 at 4:34 am

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[] Not anymore. As an article I read today concluded, in the voice of a Phnom Penh TukTuk

driver, Now the war in Cambodia is over land. The always-exciting work of Andrew Walker

(of New Mandala) includes the just-posted piece on the Thai Royal misrepresentations of rural

livelihoods has much of relevance to broader regional discussions, and has graciously put the fulltext of his presentation on this topic. []

4Thorn // Feb 1, 2008 at 7:17 am

This is the must-read paper for Thai economic students.

However, Im still curious about the last 30-40 percent share of non-agricultural enterprise. What

sort of government employment are there in this share? Is it employment related to governmentadministrative unit (such as TAO)?

And what sort of government spending that support these agricultural enterprises? Do you mean

OTOP?

5Andrew Walker// Feb 1, 2008 at 7:38 am

Thanks for your comment Thorn. Here is a more complete discussion of the non-agriculturalenterprise sector with the Baan Tiam economy. I am still working on this paper and will be

adding more detail over the next few weeks.

It is worth emphasising the crucial point that out of Baan Tiams 126 households about 43percent are not engaged in independent farming. Some of these derive income from working as

wage labourers, primarily in the cash crop agricultural sector. But there is also substantial

employment outside the agricultural sector. In the livelihood survey I undertook in 2003 28percent of households indicated that non-agricultural employment was their most important

course of income. An additional 8 percent were supported by shopkeeping and local

handicraft/industry (3 percent) supported relatively few households. These figures were broadly

corroborated by a later survey (2006) in which households were asked if they earn more fromcash crops or wages: 61 percent nominated wages (and another 7 percent said their income from

wages and cash crops was roughly equal). This latter survey sought to disaggregate the sources of

wage income in a little more detail. 31 percent of those surveyed nominated agricultural wagelabour as their most important source of cash income. The second most important was

government employment with 27 percent. The importance of this government sector was

underlined by the additional 9 percent who nominated community projects (most of which areheavily dependant on direct government grants) as their most important source of cash income.

Other key sources were local business activity (18 percent) and non-agricultural wage labour (10

percent).Construction is a key sector in which Baan Tiam residents gain business income and wage-labour

employment. In local perceptions construction is one of the key markers of development. Over

the past few years Baan Tiam has witnessed an array of construction projects: the paving of

village roads; a handicrafts centre (now used to house the community shop); a large concretepavilion for the village territorial spirit; improvements to the temple, including an elaborate bell

tower; a new water supply system; a new irrigation weir; two bridges; a community rice mill; and

several large private houses. A similar array of projects is evident in the surrounding villages.These various construction projects are predominarly funded by government grants, donations

from sponsors living outside the village and private investment in housing (usually a result of

lucrative salaried employment). Baan Tiams residents are involved in these construction projects

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in various ways. Most directly, and profitably, there are two local contractor resident in the

village. One is a highly successful businessman who has won a steady supply of construction

work from the local council (tesaban), no doubt linked to the fact that his father in law is the local

mayor. Another contractor focuses on the design and construction of private residences bothwithin Baan Tiam and the district more generally. There is also another prominent contractor

within the district who has close links with Baan Tiam, having acquired significant land holdings

there. Each of these contractors employs Baan Tiam residents to work on their variousconstruction projects. Construction work usually pays considerably more than wage labour in the

agricultural sector especially for those undertaking skilled activities (such as carpentry or

bricklaying).The government sector provides employment in several different ways. First there are those who

hold official and salaried positions. Most prominent is the mayor and deputy mayor of the local

municipal council both of who are resident in Baan Tiam. Several other residents also hold

professional positions with the district or provincial administration. Others hold salaried positionsin government-run services such as the district hospital or the district and local schools and in

government departments, particularly the forestry department and the national park

administration. Less skilled employment is also available in local agricultural developmentprojects (especially the nearby Royal Project development centre) and in re-forestation projects

run by watershed management units. The government sector also provides substantial financial

support for an array of community projects that also provide various sources of employment andincome.

There is an active commercial sector within Baan Tiam. There are seven shops; two small

restaurants; two small petrol stations; several crop traders and several stall holders in the nearbydistrict market. The shops sell a wide array of basic consumer durables and some locally

produced fresh vegetables. Much of their custom is from Baan Tiam, but some of the shops have

an active trade with residents of an upland Karen village that is located in the national park about

10 kilometres to the east of Baan Tiam.And there are several very small scale enterprises. These include one household producing fried

bananas; another producing steamed bamboo shoots; and several producing furniture and other

forms of woodwork. There is an active underground trade in illegally cut timber from the nearbynational park. Several households are involved in felling trees, milling the timber and selling the

high value planks to builders and furniture producers.

fall // Feb 1, 2008 at 1:26 pm

Perhaps the best outcome is that sufficiency economy will largely be ignored except as a

promotional strategy for rural development programs.

I think this is the key quote for the paper.

The core problem that sufficiency economy try to tackle seem to be rural worker migration (to

urban). But the sufficiency economy seem to take it the wrong way. China is a good example

of effect on increasing rural population.

May be the problem should be address in the exact opposite, like Japan regional crop variation.

Instead of encouraging model farmland and government left villager alone. Encourage farmer to

produce only best yield crop in the area and government promote promotion, transport, and sales.

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Sufficiency economy and human development

In a move that some commentators will find rather bewildering the UNDPs 2007Human

Development Report for Thailand provides a strong endorsement of the sufficiency economy

approach. The report was launched yesterday and is available here. The UNDP website forThailand reports:

Thailands Sufficiency Economy holds the key for reducing poverty, combating corruption,

and buffering the country against financial crises, according to a timely report launched today in

Bangkok. Sufficiency Economy and Human Developmentdemystifies this economic philosophyand shows how its practical applications in business, politics, education, farming, and even

everyday conduct have a wide global relevance.

There is much to read in this report and when I have some time to digest it I will provide some

further posts. For now, just one quick comment.

On initial inspection there does seem to be an inverse relationship between adherence to the

principles of sufficiency economy and a positive performance on UNDPs Human AchievementIndex. The top two performers, Phuket and Bangkok, are hardly paragons of sufficiency

economy. Advocates of sufficiency economy are much more likely to find what they are lookingfor in two lowest ranked provinces: Tak and Mae Hong Son. Note that 9 of the 10 lowest ranked

provinces are in the north and the northeast.

Tags:Publications Sufficiency Economy Thailand

5 responses so far

1 New Mandala Sufficiency economy = poverty?// Jan 10, 2007 at 9:41 pm

[] In my post of earlier today I discussed the emphasis placed in Thailands 2007Human Development Report on sufficiency economy. As I work through the report I

will provide a series of short posts (as time permits) on some of its key issues. In this post

I focus on Chapter 1 in which the key human development data are presented. []

2 Republican // Jan 10, 2007 at 9:45 pm

Not quite sure why it is bewildering that the report should give a strong endorsement of

self-sufficiency theory:

(i) Copyright 2007: well that just about says it all. But for those commentators whomay still be in doubt:

(ii) As it is the Kings theory (I hesitate to give it that honour)any criticism of it wouldby definition count as an act of lese majeste, which carries a maximum penalty of 15

years in prison. Strange they didnt mention that in the report. If one had the choice of

criticising the Kings theory, thereby risking ones professional position, at best, and atworst a jail term, or collecting what must have been a very nice UN pay cheque, it is not

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difficult to guess what most of the contributors choice would be. Looks nice on the CV

too.

(iii) The report is endorsed by PM Surayudh, the former privy councillor and Kings

nominee for the prime ministership after the royalist-military coup detat. Hes hardlygoing to endorse a report critical of his master.

(iv) As the Acknowledgements points out, the report was guided by an Advisory Panel,

chaired by H.E. Kasem Watanachai, Privy Councilor, and co-chaired by H.E. Dr. Chirayu

Israngkun Na Ayuthaya, Director General of theBureau of the Crown Property, which is made up of a whos who of network monarchy

- Crown Property Bureau people, Royal Project people, etc. Contributors also include

Sumet Tantivejakul, Secretary-General, of the monarchys Chaipattana Foundation andone of the leading anti-Thaksin campaigners.

I mean, this is the absurdity that is Thailand in todays modern dark ages; the DG of one

of the largest business conglomerates in the country singing the praises of self-

sufficiency. The King waxes lyrical about the virtues of his theory while members of hisown extended family travel around the world virtually every week, and then force their

Thai subjects to watch their holiday movies on the 8pm TV news. This is the stuff of

Marie Antoinette. And the reason no-one kicks up a fuss (openly)? lese majeste, and since

September 19, the little matter of living under a royalist-military dictatorship.

But what is worse than that is how the UNDP can prostitute itself by lending its brand to

the Thai King, who has just endorsed the overthrow of a government elected

overwhelmingly by his own people, and who is now backing an increasingly ruthlessmilitary dictatorship. Funny the report didnt mention that either. How can we explain

this? Like so many idiot farang expats who get used by the Thai phu yais (and get paid

very well for it!) to give their endorsement (as Western experts) to projects which in

their own countries would be crucified in the media? (No doubt they are all very much inlove with Thai culture, and the love is surely reciprocal). Or worse than that, they

actually believe that it is OK for dictatorships to treat their people in this way?

As Ive said before, if self-sufficiency is a theory that you are going to force upon the

Thai people then let there be an open debate about it, get rid of lese majeste, and apply theprinciples of reasoned, vigorous debate. Let the world see just who is really behind the

industry of producing the discourse of self-sufficiency, and whose interests this discourse

is really protecting.

3 Jon Fernquest// Jan 10, 2007 at 11:24 pm

Thailand is probably a good example for other countries of what it is feasible to achieve,

however

When I saw Chiang Rai rank so low in so many categories I couldnt help but think of all

those conversations in Burmese I had with the literal ***army of Burmese workers***that built Thailands newest university in Chiang Rai. Wages are near zero for Thais in

Mae Sai unless they have a little store selling things to tourists.

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There is a **fundamental disconnect between appearance and reality**. I remember the

way were given a list of things to say to the accreditation board that visited the university.

***I have the utmost respect for His Majesty the King*** but not those who use the

hallowed institutions of royalty to build up their own absolute power which is probablywhy the truth so often remains concealed under the veneer of slick brochures.

The university I worked at had an annual Tham Hua ceremony where all the staff

grudingly had bowed and reaffirmed their loyalty to the **president of the university**

who is not royalty. This is too much. This is right out of the Burmese chronicles that Itranslate and publish at the University of London:

http://web.soas.ac.uk/burma/bulletin.htm

Of course, by even pointing this out I could get sued for defamation (or deported because

I am a foreigner) fairly obvious reasons why the truth never gets out.

4 New Mandala A royal project// Jan 12, 2007 at 11:02 pm

[] The second chapter of the report is primarily a promotional piece for the sufficiency

economy approach. As at least one New Mandala reader has commented it is surprising

that an international agency such as UNDP has been willing to endorse the promotion ofan approach that in recent months has been politically mobilised to help justify the

military overthrow of an elected government. Some explanation from UNDP is surely

called for. []

5 Ananth // Jan 31, 2007 at 4:15 am

Actually this economic approach is very simple. fairly speaking, the King proposed itduring the economic crisis years ago. And it is so true that one of main causes here was

the Thai ambition to be a new NIC. But in fact Thailand was so weak in economic

infrastructure, as lots of economists explained for long time. The center of his idea is justto be prepared when we have to go for some new change and first we have to fill our

stomach first. Do not too ambitious. And be highly cautioned for changes in the future.

In-sufficient analysis


This is my fourth post on Thailands 2007 Human Development Report. It discusses chapter 3,

Sufficiency economy in action.

This chapter is another public relations piece for the sufficiency economy approach. It discusses a

range of broadly defined sufficiency economy initiatives at local, corporate and national levels.

The main case study discussed is the Inpaeng Network in northeast Thailand. The activities aredescribed in terms of the three-stage model of local development discussed in myprevious post.

Network members started by turning away from cash cropping to local subsistence production;

they then developed a range of external economic relations based on the clever identification,

processing and marketing of local products. The result is a sufficiency success story:

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The communities of the Inpaeng Network are far from being isolated from the outside world and

the pressures of globalization. Almost every household has a TV, and over half have a mobile

phone. More and more children go to secondary schools in town and are exposed to the

consumerist fashion of the age. The decision to retreat from mono-cash-cropping almost ageneration ago was not a withdrawal from the world. Through their connections to markets,

government agencies, universities, other networks and even Japanese schools, they are much

more broadly and deeply involved in the outside world than before that first decision.

This is encouraging. But I must confess to some lingering scepticism. The chapter does documentsome of the challenges facing the Inpaeng Network but it is primarily a public relations piece.

There is no attempt at any rigorous analysis of, for example, the impact of Network activities on

household budgets; the extent to which Network participants are supported by householdmembers working in urban areas; the extent to which network activities are dependant on

external grants and other forms of financial support; and the relative role of Network activities in

local livelihoods. Nor, surprisingly, is there any consideration of how villages active in theNetwork perform in relation to the UNDPs human development indicators. In other words, we

are provided with some very nice imagery but no concerted attempt to seriously evaluate the

Network in terms of sufficiency principles or its social impact in terms of human development.New Mandala would love to hear from any readers who can provide any further insights into the

Networks activities and their impacts on local livelihoods.

The rest of the chapter covers a range of different issues. Let me deal with some of them briefly.

First, there is a discussion of various royal initiatives that have implemented sufficiency economy

principles in relation to environmental management. Vetiver grass (used extensively in an attemptto combat erosion) gets a mention with no consideration at all of its negative impacts on local

farming systems.

Second, there is discussion of various corporate initiatives in relation to sufficiency economy.

Siam Cement (in which the Crown Property is a major shareholder) will appreciate thepublicity and strong endorsement. There is a lot of good common sense advice about how

principles of moderation and integrity can improve business performance. Interestingly, a

corporate Sufficiency Alignment Index is proposed. As I stated in aprevious post, it would beinteresting if indices could be developed for other aspects of sufficiency economy and some

consideration given to how these correlate with other aspects of human development.

Third, there is some discussion of how sufficiency economy may inform a more conservative

approach to national economic management. Some of the specific policies of the Thaksingovernment are briefly considered. The popularity of the village fund is acknowledged, but it is

suggested that the scheme should be re-designed to put greater emphasis on savings. The 30 baht

health care scheme is also acknowledged as making a major contribution to humandevelopment and lifting more people above the poverty line than any other single government

scheme but it fails on sufficiency economy criteria for not being built on firm foundations: the

planning and implementation lacked moderation and insight. Interestingly the chapter saysnothing substantial about what sufficiency economy may have to say about the great disparities

in access to government services that are documented in chapter 1 of the Human Development

Report. Community self reliance is all very well, but it doesnt address the issue that some people

have much greater government support than others!

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Finally, there are some general comments about how sufficiency economy can inform national

development strategy and education.

In brief, the chapter provides an interesting picture of sufficiency economys various dimensions

but makes very little attempt to critically evaluate initiatives in terms of their adherence tosufficiency economy principles or their contribution to human development.


8 responses so far

1 anon // Jan 12, 2007 at 3:54 pm

What were you expecting - refereed journal-level analysis?

Chris Baker isn\t really an academic (he\s an \independent research\, which means

that no university will give him tenure), and the Thailand Human Development Report is

a palace puff piece to justify the Human Development Lifetime Achievement Award thatKofi Annan gave to the King. Sounds impressive, doesn\t it?

Until you ask who else has received this award. And the answer is: nobody. It\s an

award created specifically for the king.

2 nganadeeleg // Jan 12, 2007 at 4:12 pm

Why dont you get personal, anon?


The 30 baht health care schemelacked moderation and insight.

I witnessed someone in a coma denied oxygen necessary for their continued life unless a

lot more than 30 baht was forthcoming.

Here, as always, transparency is the issue: 30 baht for what?

4 polo // Jan 13, 2007 at 6:19 am

I think Bakers work qualifies him as a public acadeic or something perhaps we need a

real term to characterize all scholars, including those not tied to any academy.

But anyway, I think there are more questions to be asked about Inpaeng too, before

comparing its success with other villages. Here are some:

1. What is the strength of land ownership and tenure there? What is the average family

farm size?

2. How much input came from outside with the region chosen as a demonstration model?

3. How are lands being divided among subsequent generations?

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4. How much of the mobile phones and TVs and other modcons are paid for by family

working in the cities that is, what is the role of money transferred inward?

5. With this approach how to you produce people educated enough to run the central

bank?


One obvious way to boost regional self-sufficiency is to move more food processing

upstream to the provincial level. I could see local entrepreneurs who have the requisite

technical skills in food science, e.g.:http://www.readbangkokpost.com/business/entrepreneurship/abalone_farming_a_new_fo

od_fro.php

doing at a local level essentially what CP Foods does at a national level for export:

http://www.readbangkokpost.com/business/international_trade/cp_foods_export_strategies_in.php

Certain fields in Thai universities like Food Science are more important than in westernuniversities. But the pioneering abalone entrepreneur in the article above was trained as a

vet, so you could argue that the more general rigorous training of the natural sciences isvery pertinent. The importance of the fundamental and more universal subjects that have

been around for ages like mathematics is underrated. The university I worked at had no

math department but it did have a trendy cosmetic science department, more an artifact ofmarketing than knowledge per se.

IMHO instead of taking His Majesty the Kings words and try to create some monolithic

new all-encompassing subject out of it, if people just **thought good and hard** for a

couple of minutes each day, perhaps before breakfast, **about what Paw Piang actuallymeans** and then practiced it with perseverance in their own daily lives (albeit it is

difficult to do that in the hustle bustle of Bangkok) that would be of much more value

than big theories and a course. One of the most disheartening things about being a teacherwas seeing all the lecture notes strewn about on the ground outside the examination room

after the final exam. I still have the lecture notes from when I was a graduate student at

Stanford 20 years ago.

Three weeks ago the government was claiming that they didnt know how to activate thesufficiency economy philosophy in policy. Three weeks later they have grandiose all

encompassing ideas and policies. They should get a clue.

The sufficiency economy is already there. Rural people can go down to a bookstore learn

how to fish farm in their backyard. Ask some neighbors for some advice and presto,enough cash to eat everyday. Pak Bung, it grows wild by the side of the road! People just

need to learn to use what they already have better!

6 New Mandala Sufficiency going forward, diversity going backward// Jan 16,

2007 at 9:11 pm

[] This is my final comment on the UNDPs 2007 Thailand Human Development

Report (for my previous post see here). My comments in this post focus on the final

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chapter (Sufficiency going forward) which explores the ways in which the sufficiency

economy approach can help to change the direction of thinking and practice on

development in Thailand. []

7 Royalist propaganda and policy nonsense// Nov 7, 2007 at 6:49 am

[] New Mandala readers may recall my commentary on the UNDPs 2007 HumanDevelopment Report for Thailand. Kevin Hewison has also written a []

8 Historicus // Nov 7, 2007 at 1:19 pm

One obvious way to boost regional self-sufficiency is to move more food processing

upstream to the provincial level. I could see local entrepreneurs who have the requisitetechnical skills in food science,doing at a local level essentially what CP Foods does at

a national level for export.

Wasnt that what OTOP was about?

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Sufficiency economy = poverty?


In mypostof earlier today I discussed the emphasis placed in Thailands 2007 Human

Development Reporton sufficiency economy. As I work through the report I will provide aseries of posts (as time permits) on some of its key issues. In this post I focus on Chapter 1 in

which the key human development data are presented.

The message of this chapter is straightforward: Thailand has made remarkable progress inrelation to human development but this progress has not benefited everyone equally. One

indicator of the progress is the reduction in poverty from 38 percent in 1990 to 11 percent in

2004. The report notes that Thailand is expected to meet most or all of theMillennium

Development Goals in advance of the 2015 target. But the inequalities are stark. The reportprovides a ranking of Thailands 76 provinces in terms of their Human Achievement Index (HAI)

Score. This HAI score provides a summary of a wide range of human development indicators

relating to health, education, income, housing, community, communications and participation.Phuket rates the highest, followed by Bangkok. Of the other 10 top-ranked provinces five are in

the central region. By contrast, Mae Hong Son in the far north ranks at the bottom. Eight of the

bottom 10 provinces are in the North or Northeast. Two are in the South. In brief:

People in Bangkok, Bangkok Vicinity and other regional growth areas enjoy higher levels ofhuman development than people in more isolated provinces. The North and the Northeast, as well

as a few provinces in the deep South, are placed at much lower levels.

The report provides data and insights on various dimensions of this inequality. Compared to

those in Bangkok people in the Northeast and North are more likely to be disabled and more

likely to report physical illness but they have much lower access to health services; they alsohave lower access to education; they have lower standards of housing and living environment;

lower access to mobile phones and the internet; and they are much more likely to be living inpoverty. In brief the report provides a compelling account of Thailands regional inequality.

This chapter of theHuman Development Reportmakes almost no mention at all of the

sufficiency economy approach. This is unfortunate. It would have been very interesting if the

authors had made some attempt to map some key indicators of sufficiency economy and see howthese correlate with the Human Achievement Index. As I said in my previous post, superficial

inspection suggests that there may be an inverse relationship between sufficiency economy and

human development. To put it bluntly, I suspect Mae Hong Son (at the bottom of the HAI table)contains many more people living a sufficiency lifestyle than the high-ranking Bangkok or

Phuket.

What could be some useful indicators of sufficiency economy? Perhaps the percentage of a

provinces agricultural land devoted to subsistence crops. Or the percentage of provincial incomederived from local production. Or the proportion of household income spent on basic

consumption. All these may be possible proxy indicators for the presence or otherwise of

sufficiency economy. Another may be the level of household debt, given that sufficiencyeconomy is often presented as an antidote to debt-fuelled pursuit of economic expansion. Data on

household debt (by province) is available in theHuman Development Report(Table All4).

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Taking the level of household debt by province as a very rough proxy for sufficiency economy

(lower debt indicates more sufficiency economy) I thought it would be interesting to see how this

correlates with the overall HAI rankings. I plotted the relationship in this graph (click it for a

larger image):

The horizontal axis shows the level of household debt by province. Bangkoks average debt is

351,000 while Mae Hong Sons is 83,112. The vertical axis indicates the HAI ranking thoselow on the axis rate low on the HAI (Mae Hong Son rates 76) while those high on the axis rate

high on the HAI (Bangkok rates 2).

The result is interesting, though not compelling. It does suggest that there is some tendency for

higher levels of debt to correspond with higher HAI rankings. Very generally, the less humandeveloped provinces tend to have lower debt levels. And the more human developed provinces

have higher debt levels. In other words, based on this very rough and limited calculation there is

some suggestion that higher levels of sufficiency economy (such as in Mae Hong Son) correlateto some extent with lower levels of human development.

Interesting. And surely worth further investigation. Before Thailand goes too far down the

sufficiency economy path it may be worth investigating the current distribution of key features

of sufficiency economy and how they relate to other key measures of human development.


24 responses so far

1 nganadeeleg // Jan 11, 2007 at 12:02 am

Lies, damn lies, and statistics!

If you taking gross debt, without reference to underlying assets, and income levels, then

your analysis is meaningless in terms of the sufficiency economy.

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A higher gross debt could still fit within the sufficiency model if that household also had

high asset and income levels.

If the Household Debt axis in the above graph was actually Household Debt as a

percentage of Assets or Income, then the graph would be more meaningful in analysingthe sufficiency theory.

Andrew, it sounds like you have a problem with the sufficiency theory.

Here is a translation of the Kings 1998 speech which includes clarification of what he is

talking about:http://www.kanchanapisek.or.th/speeches/1998/1204.en.html

In the light of that clarification, what ecactly are your concerns with the theory?


Should say exactly not ecactly in last sentence of my post above.

Also missing the word are after you in the second sentence.

No edit capability so I must remember to check more carefully before I click submit

3 Vichai N. // Jan 11, 2007 at 12:55 am

Still at it Andrew Walker? Trying with all your nonsense to equate HMKs Sufficiency

Economy to poverty?

Either you are being stupid or you are merely being malicious. Or your master has givenyou instructed to pursue this nonsense or you wont get paid.

I already told you the first time I visited this forum when you made that stupid conclusionAndrew that it is too ridiculous to qualify as a blatant lie. I have not changed my mind a

bit.

4jeplang // Jan 11, 2007 at 2:19 am

I will put my money on there being no correlation between the 2 variables;not with an r

squared of 0.18,indicating 82% of the variance is NOT explained by the regression line .

[A minor point-I thought R squared was reserved for non-linear regression.]If the 95% confidence intervals had been drawn ,or better still ,the prediction intervals,,the

straight line could have been drawn virtually anywhere except horizontally-slight

exaggeration ,I know.

Even after reading the Kings speech referred to by nganadeeleg ,Im still unsure whatsufficiency economy means. Does it,in part,mean ways and means of reducing poverty?

This is the only speech of the King I have read,and I have been surprised ,enlightened and

also dismayed,perhaps saddened would be a better word.And I think it is wise not to

elaborate.

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5 anon // Jan 11, 2007 at 5:16 am

You pencil-necked pin-headed development geeks think that happiness can only be

measured with numbers.

Realize that the self-sufficiency economy isnt about numbers and wealth - its about

goodness and dignity. Without this fundamental understanding, Thailand will stillproduce another generation of Thaksins.

6 Bangkok Pundit// Jan 11, 2007 at 5:53 am

Thank you Nganadeeled for the link. I find the following interesting:

This sufficiency means to have enough to live on. Sufficiency means to lead a

reasonably comfortable life, without excess, or overindulgence in luxury, but enough.Some things may seem to be extravagant, but if it brings happiness, it is permissible as

long as it is within the means of the individual. This is another interpretation of the

sufficiency economy or system.

So if Surayuds couple of a million baht in foreign watches brings him happiness it is ok.Now, if I understand correctly, if I have 10 billion baht and want to buy myself a fleet of

Ferraris, it is ok within the sufficiency economy system as long as it is makes me happy

and is within my means of the individual (I dont borrow excessively?).

I dont really see any limits to this sufficiency economy idea,* but then again as I have

previously stated I dont really see sufficiency economy meaning anything apart from

being a rhetorical device.

Are there any examples of people who have not been in accordance with the sufficiencyeconomy. Surely, Thaksin who brought debt down from around 57% of GDP to 41% of

GDP didnt break the sufficiency economy idea.

*How does one determine whether money borrowed is within the means of an individual?

Is the government going to do this or just banks in accordance with normal lendingcriteria? If banks, what is going to change then?

7 Jon Fernquest// Jan 11, 2007 at 6:23 am

Case studies would be more useful than a bunch of statistics. Look at newspapers on

Japanese funded Easy Buy in which the debtor can opt not to pay and the debt grows and

grows. or the motorcycle dealerships that rake in cash by selling easily on credit inprovincial villages and then repossessing with the help of the local mafia.

This all has nothing to do with His Majesty the King who sets an example. Of course

some people wont follow it. But it is a lot better than places that have no example at alllike Burma.

the less human developed provinces tend to have lower debt levels.

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Here is another place where appearance does not meet reality. Have you ever heard of

Len Hun ? There are extensive informal debt networks. I doubt whether they enter the

stats.

Many years ago I saw IQ test results that reported a substantial fraction of northernerswere mental retarded. The test was given in central Thai and there are a lot of hill tribes

and Kham Meuang speakers. Statistical studies like this should be taken with a grain ofsalt.


Unfortunately, there is a tendency to treat the Kings ideas as some sort of prescriptiveformula for the economy.

It is easier for critics of the junta or the palace system to score points if the sufficiency

economy is seen to be prescriptive/formulatic, and it appears the junta is playing right into

their hands.

I see the sufficiency economy theory as guidance from HMK for people to think about the

way they live, and to apply some moderation in their business and personal activities.

(I also agree with comment #5 above by anon - very well said)

Pundit: Im sure we can all find examples of excesses that appear to show particularindividuals are not practising sufficiency economy.

An alternative way of looking at it would be like followers of the Buddhist religion - they

all believe in the religions ideals, but various individuals are further along the Buddhistpath than others. Some (or most) may never get there in this lifetime, but they can still be

on the path to enlightenment.


This overview in The Nation by Dr Chris Baker might also be helpful in understanding

the thinking behind sufficiency economy:http://www.nationmultimedia.com/2007/01/11/opinion/opinion_30023814.php

(Dr Chris Baker is the principal writer and editor of the United Nations Development

Programmes Thailand Human Development Report 2007: Sufficiency Economy andHuman Development)

10 anon // Jan 11, 2007 at 10:41 am

nganadeeleg, dont you know sarcasm when you see it?

I was trying to say that sufficiency economy is like ariyasaj 4 - it sounds nice and is

undoubtedly true. But it shouldnt be used as the basis for ruling a populace or managingan economy.

11 Bangkok Pundit// Jan 11, 2007 at 12:42 pm

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It is easier for critics of the junta or the palace system to score points if the sufficiency

economy is seen to be prescriptive/formulatic, and it appears the junta is playing rightinto their hands.

I see the sufficiency economy theory as guidance from HMK for people to think about the

way they live, and to apply some moderation in their business and personal activities.

Your talk of the junta and the Surayud government and its use of sufficiency economy is

what concerns me. Any policy of Thaksins they dont like is labelled as not being in

accordance with sufficiency economy, but then relabelled and extra money spent moneyand suddenly it is in accordance with sufficiency economy. Crispin touched on this in

October when he said:

There is a definite risk that Thai bureaucrats may overplay the sufficiency concept in

expression of their loyalty and affection for the monarch. There is a concurrent risk thatthe royal philosophy will be twisted by less scrupulous government officials as an

opportunity to abuse their authority for rent-seeking and extortion, particularly among

foreign-invested concerns.

Thai TV is now riddled with vague references to sufficiency economy (ie doing x is not inaccordance with sufficiency economy). The principle behind sufficiency economy of

living within one means is so vague that it is easily subject to abuse. The new measures of

capital controls and amendments to the Foreign Business Act have one large beneficiaryrich Thais, particularly those with local monopolies.

The second problem I have with sufficiency economy is, as I believe Republican pointed

out in another post, that analysing the concept is very difficult because of lese majeste.

You cant criticise the concept only in Thai society without risking bringing trouble toyourself.

Finally, HM the King is not just suggesting a model on how people should live their

personal lives, it is about changing the economy with fewer exports and an economy

which is 25% self-sufficient.

btw, HM the King has given one of few explanations I have seen of the share game

which is extremely prevalent in Thai society. I lived in Thailand a while before I heard

anything about this.

12 Srithanonchai // Jan 11, 2007 at 2:34 pm

In an article in todays The Nation, Chris Baker refers to himself as the main writer andeditor of the UNDPs sufficiency economy report. The link is

http://www.nationmultimedia.com/2007/01/11/opinion/opinion_30023814.php

His article makes one wonder whether there are actually two Chris Bakers in Bangkok.

13 anon // Jan 11, 2007 at 4:13 pm

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The Kings in-depth knowledge of share schemes is probably due to his wifes

involvement in Mae Chamoys share scheme.

But the King is a brilliant man, and his family didnt loose a single Baht in that scandal.

He is truly a genius!

14 Vichai N. // Jan 11, 2007 at 9:06 pm

Anon why dont you go ahead and complete your innuendos about Mae Chamoy and the

King.

If you dont I am certain Andrew Walker or Republican will gladly do the work for you.


Its those lese majeste laws again it seems everyone wants to use them to get what theywant politicians, media barons, supporters of the palace, and surprise surprise, even

critics of the palace system.

Pundit: Do you seriously think that rational criticism of the sufficiency economy theory

will be taken to be lese majeste?In any case, there is no need to worry about lese majeste on this site - Im sure the palace

and the junta will not be able to find any Anon, Republican or Bangkok Pundit in the

phone book, so feel free to provide constructive criticism of the sufficiency economytheory.

Most of the criticism I have seen has been concern about possible manipulation & abuse

by bureaucrats etc, rather than real criticism of the concept.

Anon: I cant help it if your sarcasm rings true!

It is apparent that many posters on this site have very fixed views about the Thai politicalsituation, and it is a shame that the level of debate cannot seem to rise above those

existing biases.

I am quite happy to declare my position:- I believe the country is better to have HMKoffering advice and a steadying influence than it would be if the politicians were left to

their own devices (or vices).

Also, I am not so nave as to think that there are no behind the scene relationshipsinvolving some people close to the palace. Rather, I accept that those types of

relationships exist virtually everywhere, including in western democracies that are

supposed to be our salvation (Halliburton etc)

Such relationships existed before, during and after Thaksin, and the only thing thatchanges is who is in and who is out at a certain point in time.

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A royal project


This is my third post on the 2007 Human Development Report for Thailand. RegularNew

Mandala reader Vichai reflects on my motivation for writing these pieces:

Either you are being stupid or you are merely being malicious. Or your master has given you

instruct[ions] to pursue this nonsense or you wont get paid.

After the Christmas season expenses I can only hope that the cheque is in the mail!

But this is a serious issue and one that deserves ongoing discussion. I thank those who respondedthoughtfully to myprevious poston this issue. I fully accept the inadequacies of my rudimentary

and inexpert statistical analysis. But I do think it demonstrates the point that it may be fruitful to

consider how sufficiency economy can be measured and how this may relate to other measures of

human development. So far I have seen no consideration of this important issue in the HumanDevelopment Report.

The second chapter of the report is primarily a promotional piece for the sufficiency economy

approach. As at least oneNew Mandala reader has commented it is surprising that an

international agency such as UNDP has been willing to endorse the promotion of an approachthat in recent months has been politically mobilised to help justify the military overthrow of an

elected government. Some explanation from UNDP is surely called for.

That said, for interested readers, chapter 2 of the Human Development Report does provide anaccessible introduction to the sufficiency economy approach and places it in the context of

concerns about growing inequality, environmental degradation and the excesses of globalisation.There is much here that reads as good old fashioned common sense, though with a rather

moralising tone. There are many wise words about moderation, reasonableness, resilience,knowledge and integrity. In itself, much of this is easy to accept as a good and wholesome thing,

much like yoga, meditation and freshly squeezed fruit juice.

But, as usual, the devil is in the detail. At the heart of the sufficiency economy approach is the

concept of self reliant agriculture - a three stage process of human development. Stage 1 involvesthefamous model farmwhere land is allocated between fish ponds, rice cultivation, and crops

and fruit: the production system maximized synergies between livestock and crops, and made

the household self-reliant. Stage 2 extends self reliance to the community level with localexchange of household surpluses to meet local needs. There is some external exchange but local

exchange should be preferred because it economizes on transport and other transaction costs.

Stage 3 involves a higher level of external exchange to sell excess production and to obtaintechnology and resources.

The chapter emphasises that sufficiency economy is not about economic isolation. Stages 2 and 3

involve increasing levels of external exchange. But (and this is crucially important):

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Before moving to another stage, there first had to be a firm foundation of self-reliance or else

there was a strong chance of failure and loss of independence. The driving force for development

had to come from within, based on accumulation of knowledge.

This sounds like a sober and sensible approach to human development. But I think it is based ona misunderstanding of the nature of rural livelihoods. In many areas of rural Thailand limited

land productivity, combined with population growth means that local resources simply cannotsupport the rural population. In the past rural villages survived by exporting surplus population to

the land frontier. Now, surplus population is much more likely to move into urban employment.Most rural communities in Thailand probably derive more income off farm than they do in the

agricultural sector. In other words local agriculture frequently exists, and persists, on a

foundation of external social and economic linkages. The notion that external linkages shouldonly be developed once there is a foundation in local sufficiency is simply not consistent with the

economically diversified livelihood strategies pursued by rural people in contemporary Thailand.

It is an agrarian vision from the past.

There is a more specific question to be asked. Chapter 2 of the Human Development Reportsituates sufficiency economy in the context of royal initiatives in rural development such as the

Royal Project Foundation:

the key maxims have arisen from the Kings real-world experiences in development projects.

They are a practical summary of what works, based on decades of experimentation, observationand evaluation.

The reference to evaluation is a little puzzling as there really has been very little attempt to

frankly evaluate the various royal rural development projects. As those working in rural Thailandwill know, the royal projects are usually treated as a no-go zone for critical analysis. Given the

scale of investment in these various schemes (and the emphasis now being placed on them as a

template) this is disturbing. Certainly there are valid questions about the extent to which the royal

projects themselves may accord with sufficiency economy principles. Based on my observations,the royal projects in northern Thailand often depend on substantial investment in infrastructure

(sometimes involving the appropriation of land and water resources from local farmers). They are

supported by substantial budgets and benefit from generous inputs from other governmentagencies seeking to cooperate with royal initiatives. Farmer views are mixed. No doubt many

have benefited from royal project extension schemes and direct wage labour employment at royal

project development stations. But others complain that the royal projects sometimes tend to targetrelatively successful farmers who are most likely to demonstrate the success of extension crops.

There are also grumbles about slow payments for crops and reduced payments when crops dont

meet appropriate standards. A good number of farmers I have talked to say they prefer to deal

with private traders.

Of course, these are fragmented and anecdotal observations. But in the absence of detailed, frank

and appropriately critical evaluations there is not much else to go on. We need much more open

and transparent discussion of the ways in which the royal projects themselves contribute tohuman development and the ways in which they support or contradict sufficiency economy

principles.

[New Mandala readers may be interested in this article in The Nation by Chris Baker. ANewMandala reader has commented: In an article in todays The Nation, Chris Baker refers to

Documents

Royal Misrepresentation of Rural Livelihoods