The philosophy of Sufficiency Economy Sufficiency Economy unit The office of National Economic and Social Development Board Outline of Presentation 1) Royal Speeches Related to SEP 2) The King’s Working Principles 3) 6 Royal Development Study Centers 4) Sufficiency Economy Philosophy (SEP) Conceptual Framework / SEP Components 5) SEP vs. New Theory 6) Case Studies of SEP Applications 7) SEP vs. Human Development We shall reign with righteousness, for the benefit and happiness of the Siamese people. His Majesty’s coronation Speech in 1946 1) Royal Speech “… Economic development must be done step by step. It should begin with the strengthening of our economic foundation, by assuring that the majority of our population has enough to live on. …Once reasonable progress has been achieved, we should then embark on the next steps, by pursuing more advanced levels of economic development. Here, if one focuses only on rapid economic expansion without making sure that such plan is appropriate for our people and the condition of our country, it will inevitably result in various imbalances and eventually end up as failure or crisis as found in other countries...” (Royal speech on 18 July 1974 ) 1) Royal Speech “…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 sufficiency economy. A sufficiency economy means to have enough to support ourselves…” (Royal speech on 4 Dec. 1997) Explosion from within 2)The King’s Working Principles Holistic approach Self - dependence Step by step One stop service Public hearing Public participation Simplicity Our loss is our gain Sufficiency Economy Philosophy (SEP) 3) 6 Royal Development Study Centers “… Development must take account of the local environment in terms of the physical environment, the sociological environment and the cultural environment. By the local sociological environment, we mean certain characteristics and ways of thinking which we cannot force people to change. We can only suggest. We cannot go in to help people by trying to make them the same as us. However, if we go in and find out what the people really want and then fully explain how they can best achieve their aims, the principles of development can be fully applied.” (Royal speech on the occasion of the establishment of the six Royal Development Study Centers Objectives 3) Six Royal Development Study Centers To conduct study, research and experiment appropriate to different conditions of each region and area To serve as a center for exchange of experiences among academics, development workers and people from many sectors : to be source of knowledge for people and to integrate theory with practice To serve as a centre of integrated development patterns. To build and reinforce close coordination among agencies and intersectoral framework. Six Royal Development Centers Northeastern Region Central Region Eastern Region Western Region North Region Southern Region n Khao Hin Sorn Royal Development Study Center Founded on August 8, 1979 Location : Phanom Sarakham District in Chachoengsao Province (Central region) Focus on land development by land and water resource development, forest rehabilitation and promotion of agricultural knowledge oHuai Sai Royal Development Study Center Founded on April 5, 1983 Location : in the compound of Mrigadayavan Palace Cha-am District in Phetchaburi Province (Western region) Focus on deteriorated forest development , control forest fires by wet fire breaks, develop water sources, conduct a study on agricultural development programs with people participation encouragement pKung Krabaen Bay Royal Development Study Center Founded on December 28, 1981 Location : at Tha Mai District in Chanthaburi Province (Eastern region) Focus on development and improvement of fishery and propagation of marine life in the coastal areas, together with integrated farming practice Emphasize on the development of utilization and conservation of natural resources towards ecological balance qPuparn Royal Development Study Center Founded on November 25, 1982 Location : at Ban Na Nok Khao, in Sakon Nakhon Province (Northeastern region) Focus on study and research on agricultural development ; forestry through irrigation system , cultivation of economic crops and animal husbandry rHuai Hong Khrai Royal Development Study Center Founded on December 11, 1982 Location : at Doi Saket District, in Chiang Mai Province (North region) Focus on study and research on various development pattern ; forest development (cultivating three types of trees for four benefits) and watershed area conservation The study emphasizes on the use of various development patterns to enable farmers to rely on themselves and not destroy the environment sPikun Thong Royal Development Study Center Founded on January 6, 1982 Location : at Muang District, in Narathiwat Province (South region) Focus on study and research on peat soil and development of organic soil to ensure its optimal benefits in agriculture and promoting occupational development in several fields; agriculture, animal husbandry and agro-industry as well as promotion of community participation 4) SEP SEP Background • Sufficiency Economy (SEP)is an innovative approach to development designed for practical applications • The approach was formulated by King Rama IX , resulting from his long experiences in development works. • The King provided practical alternative development paths through thousands of Royal projects SEP Background 4) SEP • On 4th Dec. 1997, the King made his usual birthday address to a national audience on Sufficiency Economy. • In 1999, NESDB invited a group of eminent persons to construct the definition of SEP. • In 1999,NESDB adopted the King’s idea as the guiding principle for the ninth development plan and continuing to the tenth plan. • In 2001, NESDB has interpreted and elaborated on SEP. • In 2003, NESDB initiated a process of SEP Sufficiency Economy “Sufficiency Economy” is a philosophy bestowed by His Majesty the King to his subjects through royal remarks on many occasions over the past three decades .The philosophy provides guidance on appropriate conduct covering numerous aspects of life. After the economic crisis in 1997, His Majesty reiterated and expanded on the Sufficiency Economy in remarks made in 1997-1998. The philosophy points the way for recovery that will lead to a more resilient and sustainable economy, better able to meet the challenges arising from globalization and other changes. conceptual Framework Philosophy of Sufficiency Economy Sufficiency Economy is a philosophy that stresses the middle path as an overriding principle for appropriate conduct by the populace at all levels. This applies to 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 “Sufficiency” of globalization. means moderation, reasonableness, and the need of self-immunity 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 characteristics Definition Condition methodologies for planning and implementation in every step. At the same time, it is essential to strengthen the moral fibre of nation, so that everyone, particularly public officials, academics, businessmen at all levels, adheres first and foremost to the principles 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. Expected outcomes Philosophy of Sufficiency Economy The Middle Path Moderation Reasonablenes s Self-immunity Knowledge condition (know, prudence, care) Integrity condition (honesty, diligent, conscious, sharing,perseverance) Lead to life / economy / social / environment progress in balance, stable and sustainable way 4) SEP SEP Conceptual Framework Sufficiency Economy is a philosophy serves as guide for the way of living/ behaving for people of all levels toward the middle path. As an agenda, Sufficiency Economy delivers the middle path as the economic life guiding principle; a secularized normative prescription As an application domain, Sufficiency Economy is scalable, with universal domain applicability. SEP Components 4) SEP 3 components: moderation , reasonableness , self-immunity 2 Conditions : knowledge , integrity Sufficiency Economy entails 3 components (a trio); • Moderation : enough in the sense of not too little, and not too much / self-reliance and frugality • Reasonableness : evaluate the reasons for any action and understand its full consequences • Self-immunity : be resilient, have an ability to withstand shocks and cope with external changes that are unpredictable 4) SEP SEP Components 2 other conditions are needed to make the principle of SEP work. • Knowledge : (wisdom) includes accumulating information with the insight to understand its meaning with care and prudence usage. • Integrity : virtue, ethical behavior, honesty, tolerance, perseverance , unexploited of others 4) SEP SEP Codification SEP can be simplified into 5 basic concepts: • Know what you are doing • Be honest and persevere • Take a middle path, avoid extremes • Be sensible and insightful • Build protection against shocks From : Thailand Human Development Report 2007 of United Nations Development Program (UNDP) 4) SEP Six messages for taking Sufficiency Economy forward • SEP is central to alleviating poverty and reducing the economic vulnerability to the poor. • SEP is central to community empowerment and the strengthening of communities as foundations to the national economy. • SEP takes corporate responsibility to a new level by raising the strength of From : Thailand Human Development Report 2007 of United Nations Developmentto Program (UNDP) commitment to practices conducive longterm profitability 4) SEP Six messages for taking Sufficiency Economy forward • SEP principles are vital for improving standards of governance in public administration. • SEP can guide national policy to immunize a country against shocks, to craft better policies and to plan strategies for more equitable and sustainable growth. • SEP thinking demands a transformation of values and a revolution in the mindset, From : Thailand Human Development Report 2007 of United Nations Development Program (UNDP) necessary for the advancement of human d l t 4) SEP SEP Scope & application • SEP is not an economy but a guide to conducting life and taking decisions that can be applied to all levels. • SEP helps shielding the country against shocks. • SEP does not reject globalization but it is a means of succeeding in globalization. • New Theory is an application of SEP. 4) SEP SEP Applications by levels • At individual and family levels 9 essential knowledge and necessary skills, realize in co-existence with nature, adhere to morality • At community level 9 Sufficient community has a degree of selfreliance, basing on knowledge and moral strength, in a way that are appropriate to their geo-social context. • At National level 9 National administrative and development plan that encourage people to live their own lives SEP Applications by sectors 4) SEP • For sufficiency businessmen 9 are more concerned on sustainability and long term benefits, conduct business ethically and are socially & environmentally responsibility. • For sufficiency politicians 9 Be moral discipline and leadership ideal, truly understand local conditions in communities they represent, play a role in such a way as to create balanced progress for people. 9 Make policies and laws basing on Sufficiency Economy and encourage to the development of new practices, knowledge and technologies that prove beneficial to the country. 4) SEP SEP Applications by sectors • For Sufficiency Government Officers 9 Apply SEP in their own lives, realize their roles as “social service providers” enhancing balance and harmony in society. 9 Be morally conscious and morally-led behavior 9 Implement projects, policies and plans that encourage balance development. 4) SEP SEP Applications by sectors • For sufficiency educators 9 Be role model for students by having sufficiency lives 9 Realize the necessity for human being to be harmonious with nature 9 adhere to morality 4) SEP SEP Applications by sectors • For Sufficiency Farmers 9 Be morally based 9 Follow His Majesty’s “New Theory” with an application of farmer’s wisdom and skills in ways, which are consistent with their environment. 5) SEP & New Theory New Theory is a practical example of applying SEP. The complete New Theory has 3 stages; • stage 1 : Sufficient at the household level self-sustaining agricultural landscapes 30:30:30:10 • stage 2 : Sufficient at the community level cooperative activities basing on a concept of sharing • stage 3 : sufficient at the national level expansion of community activities through reaching out to other outside sources Sufficiency Economy VS. New Theory (NTA) Sufficiency Economy is a guidance and theoretical concept of New Theory Approach. New Theory is an application example of Sufficiency Economy Sufficiency at the household level Sufficiency at the community level Sufficiency at the national level Self-sufficiency of Sufficiency Economy Advanced stage of Sufficiency Economy First stage of NTA Second stage of NTA Third stage of NTA 6) Case studies Individual and family level What you gonna do first; adding some more water or sealing the hole ? lottery Liquor Tuition fees Clothe s Medicine s interest s pesticides Food Cigarette s household s 6) Case studies Individual and family level Miss Jutamas Kaewpijittra (academician and lecturer at NIDA) “I try to balance my time for family, friends, and work…so problems won’t happen. I know that if I weight too much time on some activities, there gonna be risky problems. ” 6) Case studies Individual and family level Mr. Prasarn Eng-Kanan (TV moderator) “It’s like when we have water in the reservoir I always have some amount left, in case there is no rain when dry season comes. Importantly, I have to judge my capability if I can find more water from other sources. If I am still healthy enough, I’m going to put some more water in to the reservoir. ” 6) Case studies Individual and family level Mr. Tann Kun Jit-Itsara (Chinese teacher and TV. moderator) “Sufficiency Economy helps realize the value of my life that is worth than price. It’s an arts of balancing ourselves and everything around us…or living in a middle path, weighting between the real value of our belief and our social role” Mr. Sanmond Intrara-chaiya Mr. Sanmond Intrara-chaiya’s background • Born on 2nd of November 1955. • 51 years old • Live at 27 Moo 1, Bandong province, Udon-thani. • Is an eldest of 7 sons of Mr. Chajern and Mrs. Saikum Intrara-chaiya • Get married with Mrs. Lawan • Have 2 sons – Mr. Jaluk, aged 26 years old, is currently doing his bachelor degree in engineering at Northeastern University. – Miss Lukkanee, aged 23 years old, is a bachelor degree graduate in accounting and is now working as a teacher at Ban Nong Weang’s children center at Udonthani province His home • Above is his housing area. • There are various kinds of fruit trees; mango, lemongrass, sugar apple, rose apple, longan and pomelo, and different kinds of onions. Also, around the house, there are spinach, some kinds of beautiful flowers and herb, including curcuma. He is an agriculture with his own land, inherited from his ancestors, covering around 12 acres that are divided as follow; His wife His daughter He reserved 7.2 acres for rice planting, offered for renting He kept around 4 acres for Eucalyptus Planting. . 0.8 acre forest conservation area includes redwoods, Thai herbs, forest bamboo, bamboo shoots and different kinds of vegetables. Also, this area is for animal feeding. There are water lotus and fishes in 0.8 acre pool for herding. Presently, rice, eucalyptus planting and forest conservation areas are for rented. His second private land, which is his wife’s heritage, covering 9.6 acres, is divided as follow; 4.8 acre area is for rice planting, presently offered for renting. 3.2 acre area is for eucalyptus planting. There are around 1.5 acres reserved for two pools and one canal. Two pools and one canal covers 1.5 acres, surrounded by many kinds of fruit trees; mangoes, olives, guavas, acacia, bamboos, eucalyptus, rattans, wild santols. All are for fish feeding. The other 3.2 acres is reserved for : • Eucalyptus planting and forest conservation area, reserved for herding, fishing and poultry feeding, are now offered for rent. • Forest area includes many kinds of trees; red and white woods, bael trees and other kinds of woods, He has 3 private farms. The First farm The first part ( 2.5 acres of land) is inherited from his grandparents, reserved for planting bamboos, mangos, bananas, sugar apples, tomatoes, gingers, galanga, chilies, with no pesticides. The second farm • The second part ( less than 2.5 acres of land) is reserved for planting coconuts, jackfruits, tamarinds, wild santols, mangoes, bamboos, sugar apples, rattans, wild acacia and other kinds of plants. The third farm (an inherited land) • The third part ( less than 2.5 acres of land) is reserved for planting bamboo shoots, as a raw material for fence building and handiworks and food as well. Local church at Wat Bawon-Monkol that Mr. Sanmond helps funding as a good Buddhist. . Monk residence, designed and built by Mr. Sanmond, using old materials Residences built for grandparents and aunts A house for Mr. Sanmond’s mother- in law and brothers, built by him During 1981-2006, He participated in a volunteer program and got elected as a leader Community Store of Ban Ton na lab In 1999, there was an economic crisis. Price was increasing, so local people could not afford. I, with help from some friends, therefore, decided to establish a local store to raise funds from locals and buy products offering to members and other people in a fair price. There is also interests and dividends paying to members at the end of every year Sufficiency Economy applicant • I promise not to be arbitrarily in an immoral way. Additionally, since I have enough in living, I will be always at other people’s service. Sufficiency Economy application at individual level • Focus on present action • Try to do best everyday • Be moderate and enough in living • Concentrate and be conscious in working, and be ready for action results, no matter what’s going to happen. Sufficiency Economy communities Ban Rong Kadd Tai Prae province Kloy Luk Tak War community, Bangkok Ban Wang Lum, Ranong Province Ban Muang-wan Koh chalern, Buriram Province Ban Nong Kland Dong, Prajob Kiri Kan Province eal Sufficiency Economy community characteris • • • • • • • • Have Food security Have appropriate production system, suiting to socioeconomic context Have family with strong tie of relationship in community Have stable socio-economic condition Have basic factors and infrastructure ready in the community Have strong collaboration and welfare system Have learning, knowledge management and local wisdom application process Have fair and sustainable resource allocation An outstanding characteristics of Sufficiency Economy application area Ban Muang-wan Koh chalern, Buriram Province Emphasize on community values and beliefs Launch community welfare programs especially in development education and learning process or harmonyinitiated activities Sufficiency Economy Procedure of the Community Ban Muang-wan Koh chalern, Buriram Province moderation Reasonabl eness Self immunity - Plant rice for consuming purpose first knowledge - Sell, if left - Found handicraft production group Arrange focal to earn extra incomes for housewives -Found organic fertilizer, produced by locals leaders field -Prohibit to have alcohols in mourning rites trips, learning from other provinces - Do accounts when there are community events. often - Control food quantity, suitable to numbers Ethics of guests -Plant extra trees or vegetables after sowing reason -Support animal feeding in households -Have local stores and community saving groups - Have public barn - Have community welfare fund Stick with wellbehaved customs Sep. MOVEMENT of NESDB Long term results after 2007 Framework Movement Mechanism 3 levels cultivating knowledge/ develop database Networking Thai people live based on sufficiency economy Thinkful leader social sector • Eminent person Academic Developed the learning educational network of the Sufficiency institution Economy political media institution people Governmental institution private sector • Sufficiency movement subcommittee mass • Sufficiency Economy Unit / NESDB Searching various examples Developed learning process suitable to each target group 2003 Thai community has network for sufficiency economy cooperation 4 years period 2007 Thai development base on sufficiency economy The Process of the Sufficiency Economy Movement 04 HUB equipments strategies cooperation 06 05 setting target node leadership development develop in addition to expand knowledge Initiate Initiate Create Create Nodes Nodes 07 networking Communicate Celebrate through mass H.M. the King’s th Birthday 80 media Anniversary Expand Expand Practice Practice Sufficiency Economy application at organizational level Sufficiency Economy organization is an organization that is composed of good intention people, devoting to common interests, and being abided by harmony royal concept as “Roo Rak Samakkee” (know-love-be harmonious). Also, these people are core groups, creating inside and outside networks to be as basic link of strong community. They stick to 5 moral principles; honesty, devotion, responsibility sympathy and reliability Sufficiency Economy Development Objectives Apichai Puntasern, Phd. has defined 9 sufficiency economy characteristics that help the organization survive during an economic crisis. They are: ¾ Use appropriate technology to funds and business condition ¾ Have a proper technology to management capability ¾ Focus on long-term profits and long-term stability ¾ Diversify products to manage risks Sufficiency Economy Development Objectives ¾ Try not to be indebt or delinquency that’s over its returning capacity. ¾ Efficiently use raw materials ¾ Respond to local markets first and expand to regional and international markets when stabled. ¾ Invest more on labors than machines ¾ Give priority to honesty as a valuable Business benefits from honesty Honesty- famous companies have following advantages; ¾ The company has good credit, so it can ask for low interest loan. ¾ Because of public admiration, the company becomes popular among clients, which mean more incomes ¾ Company staff is proud of their organization and fully devote, so the company become professional with high standards. From Green Economy (Thailand Sufficiency Economy and a greenhouse effect) book Nordstrom (> 100 years) Outstanding characteristics, suitable to Sufficiency Economy Not focus only on high profits but also every stakeholders’ needs to maintain long-term relationship Have various products with fair price Highly invest in staff, clients, society, environment and other parts of society Not much concern about annually report to stock markets but more focus on long-term benefits and returns Pay more incomes to staff than it should be Highly focus on staff innovations to bring best client satisfactions Give priority to services Have a promotion from within No layoffs during economic crisis but define human as a valuable asset Highly emphasize on community development and CSR Nordstrom (> 100 years) Outstanding characteristics, suitable to Sufficiency Economy Not focus only on high profits but also every stakeholders’ needs to maintain long-term relationship Have various products with fair price Highly invest in staff, clients, society, environment and other parts of society ลงทุนอยางมากมายกับ พนักงาน ลูกคา สังคม สิ่งแวดลอม และสวนอืน่ ๆ ของสังคม ไมกังวลกับการรายงานผลดําเนินงานทุกไตรมาสกับตลาดหลักทรัพย แตทาทายนักลงทุน ซึ่งมุงหวังผลกําไรในระยะสั้น โดยการบริหารงานเพื่อผลตอบแทนในระยะยาวมากกวา จายเงินเดือนและคาตอบแทนใหกับพนักงานมากกวาที่ควรจะเปน ใหความสําคัญกับการใชความคิดสรางสรรคของพนักงาน เพื่อกอใหเกิดความพอใจ สูงสุดแกลูกคา ไมมีการอบรมพนักงานขาย เพียงแตบอกวาใหบริการใหดีที่สุดเทานั้น มีการเลื่อนตําแหนงงานที่สูงขึ้นจากภายใน ไมชอบที่จะนําเอาบุคคลภายนอกเขามา ในชวงภาวะวิกฤติ ไมมกี ารใหพนักงานออก เพื่อรักษาองคความรูและวัฒนธรรมแหง องคกร ใหความสําคัญอยางมากกับการพัฒนาชมชนที่ตนดําเนินธรกิจอย ลงทนในกิจกรรมตาง ๆ Pranda Jewelry Co. Ltd. moderation Have clear selling Reasonableness Self-immunity Have their own brands Diversify the products to serve different levels serving different levels channel Give appropriate of customers Focus on best prices to suppliers Often evaluate Pranda Have not over 60% credited customers business performance dividends of net profits Have average risk with other companies Evaluate risk every 6 management months Expand production Focus on Business Manage risk by base to cheap labor sharing money forward countries Have various Be flexible entrepreneur networks Knowledg Develop and learn any business innovations Launch bilateral educational program for disadvantage e children and Pranda staff Participate in Social Venture Network to development knowledge and business standards Have blood donation campaign every three months Ethics Support anti drug program in business organizations Sufficiency Economy Learning tools Books Learning Tools VCD Exhibition Academic papers Website Others Sufficiency Economy learning tools Books UNDP Human Development Repo What is Sufficiency Economy? Books Learning Tools Sufficiency Economy Community case studies Sufficiency Economy Company Case studies Frequently Asked Questions (FAQs) Sufficiency Economy learning tools VCD Private Sector case studies VCD Learning Tools • Pranda Jewelry Co. Ltd. • Cement Thai Co. Ltd. TV series (9 Series) “Sufficiency by Dad’s concept” I – Movie “What is Sufficiency Economy • General public target group • Private Sector target group Sufficiency Economy learning tools Papers Sufficiency Economy Philosophy Case Studi in Private Sector Academic Papers Learning Tools Sufficiency Economy Community Case Studi in Regional Synthesized the knowledge of Sufficiency Economy Researched People’s knowledge and their understanding on SEP (SEP Poll) English Academic Documents Sufficiency Economy learning tools Website tools SEP Hot news Website www.sufficiencyeconomy.org Learning Tools SEP interesting news SEP movement network Recommended books Sufficiency Economy Web bo Sufficiency Economy learning tools Exhibition Exhibition Learning Tools Exhibition of Sufficiency Econom and its movement for Children and youth Exhibition of Sufficiency Econom and its movement for public “…Wishing you all to be healthy, so we can be ready to make contribution to others. May the happiness be with you from working and wish you all the best to gain happiness from the success of work.” (Royal speech) Contact Sufficiency Economy Unit Office of the National Economic and Social Development Board 962 Krung Kasem Road Bangkok 10100, Thailand Tel: (66-2) 280 4085 Fax: (66 2) 281 6127 e-mail : [email protected] WEBSITE : SUFFICIENCYECONOMY.Org
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