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