Grassroots Economic
Development in Thailand

Mr.Chirapun Gullaprawit
Senior Adviser
National Economic and Social Developme...
Outline for
Presentation

1
2
3

Evolution of The National
Economic and Social
Development Plan
Grassroots Economic
Develo...
Evolution of The National Economic and
Social Development Plan
Gold Era of Planning

Political Fluctuation

Democracy Era
...
Grassroots Economic Development
Policy
Human Resource
Development

Strategic
Interventions
Income generation

Coordinating...
Strategies & Specific Government Interventions for individuals,
families and people groups
Managed by:
CBOs

Free schoolin...
I . Building capacity for individuals,families
and people groups
- Establish various people groups
Occupational
Youth

Gro...
II. Building capacity for communities
- Strategic Management
Government
Interventions

Change Role/
Paradigm

Community
Pl...
Community
Involvement

Community’s
Initiated
Interventions

Community
Plan
External
Support

Support from
Dev. Partners

L...
Community Development Strategies & Specific
Government Interventions

STRATEGIES:

SELECTED INTERVENTIONS

Capacity Buildi...
Government Policy
Expenses Reduction

Income Generation

Rice Pledging

Increases Income of Farmers

Corporate
Tax Cut

Fi...
 Increase the Village and Urban Community Fund to 1
Access to Credit measures: Improve
million Baht per unit.
people’s ac...
One Tumbon One Product: OTOP
Thai Government announced
Poverty Eradication Strategy:
income generation, expenditures
reduc...
Government Initiatives: Fix-It Centre
Local people

Local
technician/
mechanic/
worker
Vocational
Students

 Reduce expen...
Government Initiatives : Five Categories
of (formal) Old Age Security Systems
Old Age Pension in
the Current Social
Securi...
Universal Health Insurance

15
Education Policy

 15 year free tuition fee:
kindergarten to high school level
 uniform
 school activities
 textbooks
...
Housing Scheme for the Poor: Housing
Security Project
 launched by the Thai government in January 2003 ,
as part of its e...
www.nesdb.go.th

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Grassroots economic development in Thailand

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Grassroots economic development in Thailand
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Grassroots economic development in Thailand

  1. 1. Grassroots Economic Development in Thailand Mr.Chirapun Gullaprawit Senior Adviser National Economic and Social Development Board (NESDB) November 25, 2013, Imperial Queen's Park Hotel, Bangkok, Thailand
  2. 2. Outline for Presentation 1 2 3 Evolution of The National Economic and Social Development Plan Grassroots Economic Development Policy for Poverty Eradication Government Policy
  3. 3. Evolution of The National Economic and Social Development Plan Gold Era of Planning Political Fluctuation Democracy Era Paradigm Shift Plan 1 (1961-66) Plan 2 (1967-71) People Centred Development Paradigm Plan 3 (1972-76) Participatory and Area-based Approach Plan 4 (1977-81) Sufficiency Economy Economic Growth and Infrastructure Development Plan 5 (1982-86) Economic Growth Led Development and the Beginning of Social Development Plan 6 (1987-91) Plan 7 (1992-96) Plan 8 (1997-2001) Economic Stability and Social Development Plan 9 (2002-06) Plan 10 (2007-2011) Community Plan Plan 11 (2012-2016)
  4. 4. Grassroots Economic Development Policy Human Resource Development Strategic Interventions Income generation Coordinating with Chamber of Commerce To Solve Poverty Problem 4
  5. 5. Strategies & Specific Government Interventions for individuals, families and people groups Managed by: CBOs Free schooling & Lending bicycle for school children SML fund Universal health insurance Village revolving fund Housing scheme for the poor Debt suspension program Land reform & land entitlement process Strategic Interventions Fix-it centers Income generation Coordinating with Chamber of Commerce One Tambon, one product 5
  6. 6. I . Building capacity for individuals,families and people groups - Establish various people groups Occupational Youth Group Group Older Person Saving Group People Groups formation Group Community Plan Group Welfare Group Women Group 6
  7. 7. II. Building capacity for communities - Strategic Management Government Interventions Change Role/ Paradigm Community Plan Targeted Interventions/ Areas 7
  8. 8. Community Involvement Community’s Initiated Interventions Community Plan External Support Support from Dev. Partners Linkage Local Authority & Provincial Plans Community’s Strength in Development 8
  9. 9. Community Development Strategies & Specific Government Interventions STRATEGIES: SELECTED INTERVENTIONS Capacity Building & Opportunity Village Revolving Fund Long-term credit facility, refinance loan from informal source People’s Bank Macro& Micro Economic Management Debt Moratorium for Small farmers and Agricultures One Tambon-One Product Changing Asset of the Poor to Capital Local authorities insure Education and life long learning Opportunity Free Schooling & Lending bicycle for school children Social Protection & Safety Net Cash Transfer to Elderly & Disable persons Natural Resource Management Water Resource Management Streamlining Public Administration Devolution of public resource management & responsibilities Universal Health Insurance Housing & Shelter, drinking water Land Settlement and Reform Community Action Plan for Development 9
  10. 10. Government Policy Expenses Reduction Income Generation Rice Pledging Increases Income of Farmers Corporate Tax Cut First-TimeMin. Wage of Increases Income of labors 300/day 15,000 Salary for Uni. Graduates Allowance for Elderly Price support for agricultural produces e.g. cassava, rubber, pineapple Car-Buyers Scheme Increases Income of University Graduates Provides Income Guarantee for Elderly people First-Home Policy Increase competitiveness of private sector & prepare for AEC Provide opportunity for car ownership for personal & commercial uses Increase opportunity for home ownership Support for Cost of Living Maintain the prices of consumer goods in a appropriate range Increases Income of Farmers Support for Energy Prices Maintain the prices of energy in a affordable range 10
  11. 11.  Increase the Village and Urban Community Fund to 1 Access to Credit measures: Improve million Baht per unit. people’s access to sources of funding an  Establish a fund to develop women’s roles with average funding of 100 million Baht per province.  Establish a fund of 1,000 million Baht for participating universities to promote the creation of small entrepreneurs and enable them to borrow money supported by a “business incubator” service within educational institutions and to create innovative enterprises which will drive the economy.  Allocate funding to the SML fund for community and village development to the amount of 300,000 Baht, 400,000 Baht and 500,000 Baht, corresponding with the village size in order for villages to manage for their own 11 development.
  12. 12. One Tumbon One Product: OTOP Thai Government announced Poverty Eradication Strategy: income generation, expenditures reduction, and opportunities enhancement. OTOP development policy was endorsed as poverty reduction strategy. Concept: draw upon the local knowledge and ingenuity of Thai villages, regions, and the entire nation at large  encouraging the people to produce local products using their homegrown skills and expertise;  providing technical assistance and advice to enable them to produce their goods more efficiently and of higher quality that reach world standard;  marketing their goods throughout the country and around the world. oSales of local products: o 2001= 215 mil. THB o 2002= 24 bill. THB o 2003= 33 bill. THB o export in 2005 (9 months) = 874 mil. USD 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 12
  13. 13. Government Initiatives: Fix-It Centre Local people Local technician/ mechanic/ worker Vocational Students  Reduce expenditure  Increase student capacity with the real life practice  Community knowledge centre  Cooperation between local vocational school and community Note: At present, Fix-it centre programme is implemented by each vocational school as the school project. 13
  14. 14. Government Initiatives : Five Categories of (formal) Old Age Security Systems Old Age Pension in the Current Social Security System Pension Systems for Government State Enterprise Officials • Social Security Act • workers who work in the private-sector enterprises and must have contributed to the Social Security Fund for not less than 180 months, and that person will have aged at least 55 years and no longer working •original government pension plan for public servants (end 2037) •the Government Pension Fund Act of 1996: contribution of Government (3%) and Officers (3%) •The Government Pension Fund Office (semi public-private organisation) Private Sector Provident Fund System •the employees will receive lump-sum payments at the time of their resignation or retirement: tax exempted on the part of employees, and tax deductible on the part of employer •Employees’ contributions must be at least 3 % of wages but not exceed 15 % while Employer’s contributions must not be less than employees’ contributions. Retirement Mutual Fund System •voluntary pension scheme: the latest addition to the old age pension schemes •It aims to provide a means of voluntary retirement savings to employees who are not in the Provident Fund, or who want to make additional contributions Other Old Age Pension System •Private Teachers’ Provident Fund system •enterprises’ workers are covered by the Provident Fund Act of 1987 and will receive lump sum payments upon retirement. Monthly allowance for all registered elderly particularly in the informal sector (largest sector of Thailand) 14
  15. 15. Universal Health Insurance 15
  16. 16. Education Policy  15 year free tuition fee: kindergarten to high school level  uniform  school activities  textbooks  Tablet
  17. 17. Housing Scheme for the Poor: Housing Security Project  launched by the Thai government in January 2003 , as part of its efforts to address the housing problems of the country’s poorest urban citizens.  The program channels government funds, in the form of infrastructure subsidies and soft housing and land loans, directly to poor communities, which plan and carry out improvements to their housing, environment, basic services and tenure security and manage the budget themselves. 958 communities: 52,780 HH (Sep, 2007) Community Organizations Development Institute (Public Organization)  Instead of delivering housing units to individual poor families, the Housing security Program puts Thailand’s slum communities (and their community networks) at the center of a process of developing long-term, comprehensive solutions to problems of land and housing in Thai cities. 17
  18. 18. www.nesdb.go.th Thank you

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