Following Thailand’s economic crisis of 1997, His Majesty King Bhumibol Adulyadej, concerned for the happiness and well-being of the Thai people, began to develop his philosophy of Sethakit Phor Piang, known in English as the Sufficiency Economy. After the King’s words on this subject, there was the aim of encapsulating this profound thinking during the year 1999. The National Economic and Social Development Board (NESDB) invited a group of reputed persons to study and draw up a definition which the King himself approved. The definition is as follows:
The Sufficiency Economy is an approach to life and conduct which is applicable at every level from the individual through the family and community to the management and development of the nation. It promotes a middle path, especially in developing the economy to keep up with the world in the era of globalisation. Sufficiency has three components: moderation; wisdom or insight; and the need for built-in resilience against the risks which arise from internal or external change. In addition, the application of theories in planning and implementation requires great care and good judgement at every stage. At the same time, all members of the nation – especially officials, intellectuals, and business people – need to develop their commitment to the importance of knowledge, integrity, and honesty, and to conduct their lives with perseverance, toleration, wisdom, and insight, so that the country has the strength and balance to respond to the rapid and widespread changes in economy, society, environment, and culture in the outside world (UNDP, 2007: 29-30).
The Sufficiency Economy philosophy places humanity at the centre of development. It emphasises well-being rather than wealth, places sustainability at the core of all human development efforts, understands the need for human security and concentrates on building people’s capabilities to develop their full potential, with safeguards against external challenges. In short, it is concerned with societal happiness. Successive Thai governments – and the agencies of the Thai state – have adopted this philosophy as a guideline for the country’s development, particularly in addressing key challenges such as reducing disparities and enhancing economic growth while ensuring sustainability. The Sufficiency Economy also serves as the fundamental principle behind the 10th National Economic and Social Development Plan (2007-2011) and the yoo dee mee sook strategy.
The policy orientation of the NESDB is now toward income distribution to rural areas. It is different from rural development in the sense that rural development – at least traditionally in Thailand – was concerned with meeting basic needs and reducing poverty. For Thailand, a more appropriate policy, at least in the view of the NESDB, is to focus on income distribution rather than rural development. In addition, however, under the Premiership of Surayut (2006) there has been an additional emphasis on the yoo dee mee sook strategy over and above the creation of prosperity. The yoo dee mee sook (live well and happiness) strategy focuses on initiatives to achieve self-reliance and sustainable development, generating income while also preserving the sanctity of the community. It is a matter of helping people to help themselves, and strengthening communities.
Happiness is the essence of life. Most philosophers assume that happiness results from the comparison between notions of how-life-should be, with the perceptions of life-as-it-is. Meanwhile, many social scientists believe that true development of society only occurs when material and spiritual development happen together, complementing and reinforcing each other. Happiness is therefore intimately linked with the quality of life and the society in which we live, meaning our social, economic and environmental circumstances. According to the yoo dee mee sook strategy, happiness is when we have human security and safe communities, living in harmony and cooperation, with equal access to food, healthcare, housing, education and other social services, immune from indebtedness and irresponsible consumption as well as other excesses. Happiness is when we have justice and fairness. Happiness is when we are empowered (Wattanasiritham, 2007).
In the interviews with the Deputy Secretary General of NESDB and the Chief of the Micro Enterprise Strategy and Action Plan Formulation Division of The Office of
Small and Medium Enterprises Promotion (OSMEP), the yoo dee mee sook (live well and happiness) strategy was presented as the strategy to ensure people have a good quality of life::
“The yoo dee mee sook strategy is also about giving a choice to local communities. Nonetheless it should be accepted that the yoo dee mee sook policy is a bit too abstract to put in practice. Hopefully, the new government could execute this policy in a more objective and practical manner.”
(Interview, Ms Liwgasemsan, Deputy Secretary General, NESDB, November 2007)
“The ideal rural development policy is to make people in the community happy, have sustainable living and good quality of living. I quite agree with the yoo dee mee sook policy, which encourages locals to create their own projects. But anyway, I am not sure whether this policy will be continued by the new government.”
(Interview, Ms Suwaphanich, Chief of Micro Enterprise Strategy and Action Plan Formulation Division, OSMEP, Ministry of Industry, January 2008)
As far as Thailand’s Tenth Five-year National Economic and Social Development plan (2007-2011) is concerned, the National Economic and Social Development Board (NESDB) is now focusing on developing a strategic plan for those industrial sectors which are seen to be likely to have a competitive advantage in the world market. The emphasis is on the rising stars, such as technology-based industries including hard disk drive manufacturing, automotive parts, electronics, and the petrochemical industry. What is striking is the absence of concern for intermediate, artisan-based products, and there is a sense in some quarters that key agencies of Thailand’s development are inherently biased against what are regarded as ‘traditional’ and ‘primitive’ industries.
“Prejudice towards the industrial sector lessens the significance of the agricultural sector as well as the handicraft industry. Nonetheless, some segments of these traditional sectors are still doing well in international markets by penetrating niche market segments. From my past working experience in Chiang Mai, in some villages, making handicraft products is the major source of revenue of households. Handicraft products have unique designs and characteristics so they are not only popular among foreign tourists but also among local Thai people.”
(Interview, Ms Artarotpinyo, Senior Expert in Production and Service Strategies, NESDB, November 2007)
Before the OTOP project, there were no policies that complemented and supported handicrafts. This changed with the introduction of the OTOP programme in 2001.