SUFFiciENcy EcONOMy ANd GRASSROOtS DEvElOPMENt

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The Meaning of Sufficiency Economy
International Conference
‘SUFFICIENCY ECONOMY’ IN THAILAND
The Asian currency crisis in 1997 led H. M. the King of Thailand to denounce
the export-oriented economy as the sole option for the peasants, and the King
launched a concept on “sufficiency economy”, which encourages the peasants to
produce food and other commodities first and foremost for themselves, secondly to
the domestic market, and only thirdly to the export market.
The concept “sufficiency economy” is, however, rather vague and unclear in
the theoretical literature in economics. The UNDP Report (2007) gives a following
definition:
“Sufficiency in this sense should not be confused with self-sufficiency,
turning inward, rejecting globalization, or retreating towards the mirage of a
simpler world. Rather, this approach offers a way to cope with the
unavoidable realities of the market and globalization in the contemporary
world. The Sufficiency approach stresses that individuals need a certain
measure of self-reliance to deal best with the market, and countries need a
certain measure of self-reliance to deal with globalization. Sufficiency has the
dual meaning of ‘not too little’ and ‘not too much.’” 1
Despite the warnings, “sufficiency” often translates into “self-sufficiency”
as seen in many references. 2 Such concepts as economic “sufficiency”, “selfsufficiency”
and “self-reliance” are confusing and not well founded or well
explained in the theoretical literature. There are very few examples of policies that
would have been carried out in the name of “Sufficiency Economy”. For the last
couple of centuries, ever since the popularization of the economic ideas of Adam
Smith (1723-90) 3 , the world leaders have been divided into two camps, those who
promote opening of the markets, borderless trade opportunities, low tariffs or no
tariffs and to those who for various reasons have preferred to close their markets,
limit the imports, set up high tariffs and resort to import substituting industries
(ISI). Somewhere in this spectre also the “sufficiency economy” finds it ideological
home.
Another term often linked to “sufficiency”, “self-sufficiency” or “selfreliance”
is “autarky”, which according to a dictionary definition is: “a selfsufficient
economy with no external trade. The term is often used in economics to
describe policies of decreasing reliance on external trade by tariffs and quotas”. 4
The King’s speech inspired the official Thai establishment to promote
sufficiency economy. The controversial Buddhist Asoke group, vilified by some
1
UNDP report “Sufficiency Economy and Human Development” 2007.
2
Shawn W. Crispin in Asia Times online October 5, 2006.
3
See his “An Inquiry into the Nature and Causes of the Wealth of Nations” from 1776, but
reprinted several times and much quoted and misquoted by economists.
4
The New Penguin Encyclopedia 2003.