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Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and Degrowth? By Istvan Rado Thammasat University

Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and Degrowth ?

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Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and Degrowth ?. By Istvan Rado Thammasat University. Structure. 1. Degrowth : Beyond Sustainable Development 1.1. Sustainable Development in the EU and ASEAN 1.2. The Degrowth Response - PowerPoint PPT Presentation

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Page 1: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and Degrowth?

By Istvan RadoThammasat University

Page 2: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

Structure1. Degrowth: Beyond Sustainable Development1.1. Sustainable Development in the EU and ASEAN1.2. The Degrowth Response

2. Thailand’s Sufficiency Economy Approach towards Sustainable Development

2.1. Socio-Economic Background2.2. Thailand’s Development Strategy…2.3. …And Its Shortcomings

3. Sufficiency Economy: Between Sustainable Development and Degrowth? - The Contribution of the Conference

Page 3: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

1. Degrowth: Beyond Sustainable Development• Economic growth is not sustainable, but human

progress without economic growth is possibleKey demands:• Voluntary and equitable degrowth• extension of human relations instead of market

relations• seeking higher human wellbeing through

sustainable means Degrowth should be achieved through democratic means and participative planning. Such planned degrowth is understood in contrast to a recession (= unplanned degrowth).

Page 4: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

1.1. Sustainable Development in the EU and ASEAN

Based on the Rio Declaration in 1992:Each state has the right to its own environmental policies (Principles 2 and 11), simultaneous pursuit of the objectives of development and social and environmental sustainability (Principle 3, 5, and 12) through scientific knowledge and new technologies (Principle 9).

Page 5: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

1.1. Sustainable Development in the EU and ASEAN

Regional Framework Gothenburg Strategy 2001 ASEAN Community Roadmap (2009),

SOERs

Objectives and

Measures

Economic, social, and environmental interests to be served in a “mutually reinforcing way”

Use of green technologies in the energy and transport sectors

Each member nation to draw up its own national sustainable development strategy

Operational targets > progress reports to European Commission

“Effectively address global environmental issues without impinging on competitiveness, or social and economic development”

Protection of biodiversity and natural resources

developing and adapting environmentally-sound technology

State of the Environment Reports every 3 years

In both regions environmental sustainability is in rhetoric and in practice subservient to economic goals

Page 6: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

1.2. The Degrowth Response• Win-win between production and environment very

unlikely• Measurement of Wellbeing Based on “wrong”

indicators• GDP, as the indicator itself has serious

shortcomings

What are underlying conditions that cement the current growth regime?

• Property regimes (economic, political condition)• Cultural attitudes

Page 7: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

2. Thailand’s Sufficiency Economy Approach towards Sustainable Development

Development policies in the 1960s and 1970s:• Focus on industrialization• Development of industrial workforce• Infrastructure Development

Results up to the present:• Average economic growth from the early 1960s to the late 2000s

was above 7% percent per year• incidents of absolute poverty rapidly decreased since the first

economic plan from over 50% of the total population to less than 10% in the late 2000s

However: Urban-rural income gap has widened over the period

Page 8: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

2.1. Socio-Economic Background

CountryRural population share of national population

in %

Agricultural Share of GDP in % GINI Coefficient

Indonesia47 15.8 37

Malaysia28 9.5 46

Philippines34 14.8 44*

Thailand66 11.6 49

Vietnam71 20.9 38*

Agriculture and Inequality in Transforming ASEAN Economies

Source: www.worldbank.org (2009; *2006 data); NESDB

Page 9: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

"Sufficiency Economy" is a philosophy that stresses the middle path as an overriding principle

for appropriate conduct […] starting from the level of the families, communities, as well as the

level of nation in development and administration so as to modernize in line with the forces of

globalization. "Sufficiency" means moderation, reasonableness, and the need of self-immunity

mechanism for sufficient protection from impact arising from internal and external changes.

To achieve this, an application of knowledge with due consideration and prudence is essential.

In particular great care is needed in the utilization of theories and methodologies for planning

and implementation in every step. At the same time, it is essential to strengthen the moral

fibre of the nation, so that everyone, particularly political and public officials, academic,

businessmen at all levels, adheres first and foremost to the principle of honesty and integrity.

In addition, a way of life based on patience, perseverance, diligence, wisdom and prudence is

indispensable to create balance and be able to cope appropriately with critical challenges

arising from extensive and rapid socioeconomic, environmental, and cultural changes in the

world. (NESDB Definition, 1999)

2.2. Thailand’s Development Strategy…

Page 10: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

2.2. Thailand’s Development Strategy…"Sufficiency Economy" is a philosophy that stresses the middle path as an overriding principle

for appropriate conduct […] starting from the level of the families, communities, as well as the

level of nation in development and administration so as to modernize in line with the forces of

globalization. "Sufficiency" means moderation, reasonableness, and the need of self-

immunity mechanism for sufficient protection from impact arising from internal and external

changes. To achieve this, an application of knowledge with due consideration and prudence is

essential. In particular great care is needed in the utilization of theories and methodologies

for planning and implementation in every step. At the same time, it is essential to strengthen

the moral fibre of the nation, so that everyone, particularly political and public officials,

academic, businessmen at all levels, adheres first and foremost to the principle of honesty and

integrity. In addition, a way of life based on patience, perseverance, diligence, wisdom and

prudence is indispensable to create balance and be able to cope appropriately with critical

challenges arising from extensive and rapid socioeconomic, environmental, and cultural

changes in the world. (NESDB Definition, 1999)

Economic activities planned and carried out in accordance with these elements will contribute to “a more resilient, balanced, and sustainable development”,

as well as to the ability “to meet the challenges arising from

globalization and other changes” (Priyanut 2004)

Page 11: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

Balanced Development Strategy as pursued by the Ministry of Interior (since 1998) and NESDB (since 2001):

Gradual inclusion of rural economies into the mainstream economy

Strengthening of communal self-sufficiency and entrepreneurship

further economic integration through linking up rural production with processing industries

2.2. Thailand’s Development Strategy…

Page 12: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

•Political Decentralization: Community Development Plans

•De-emphasis of economic growth: Wellbeing as “final measure of success” (NESDB 2001)

•Environmental sustainability: communal management of land and resources

2.2. Thailand’s Development Strategy…

Is Sufficiency Economy a Degrowth Strategy?

Page 13: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

2.3. … And Its ShortcomingsPractical:• Community responsibilities are not matched

equally with responsibilities of other actors (public and business sector)

• Scheme distortion by government officials assigned to “assist” community development (lack of political enforcement)

Theoretical:• Weak theoretical foundation

Page 14: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

3. The Contribution of the Conference• The national strategy of balanced development

largely ignored in academic publications so far• Alternative community initiatives predating

the national strategy can profit from it (Inpaeng Network)

Commons-based culture is not limited to traditional communities:

• Business and civil society sectors (Focolare Movement, Peer2Peer Movement)

Page 15: Thailand’s Sufficiency Economy Strategy: Between Sustainable Development and  Degrowth ?

Thank You!