Thailand Human Development Report 2007
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Thailand Human Development Report 2007 Sufficiency Economy and Human Development Thailand Human Development Report 2007 Sufficiency Economy and Human Development United Nations Development Programme Cover photos © David Kirkland (front cover, third row, second from left), Bumrungrad International (back cover, second row, second from left). All other images royalty free. Copyright © 2007 United Nations Development Programme 12th floor, UN Building Rajdamnern Nok Avenue Bangkok 10200 Thailand Tel: (66-2) 288 1828 Fax: (66-2) 280 4294 E-mail: [email protected] Web site:www.undp.or.th ISBN: 974-88126-3-4 Foreword His Excellency General Surayud Chulanont (Ret.) Prime Minister of the Kingdom of Thailand It is my pleasure and honour to introduce the Thailand Human Development Report 2007, with the theme of “Sufficiency Economy and Human Development”. Bestowed by His Majesty King Bhumibol Adulyadej on the people of the Kingdom of Thailand, the Sufficiency Economy philosophy has now firmly taken root in Thai society. It has become the guiding philosophy for our country’s development strategies and policies, including Thailand’s 10th National Economic and Social Development Plan for 2007–2011. Indeed, it is the modus operandi for my Government’s efforts to promote human development, reduce income inequalities, and ensure sound foundations for sustainable economic growth. Gaining momentum in Thailand after the 1997 financial crisis, the Sufficiency Economy thinking has increased in importance over the years, right up to this year of political transition. The thinking advocates growth with economic stability over rapid but unbridled growth. It emphasizes sustainable development, sound macroeconomic policies, and the equitable sharing of the benefits of economic prosperity. At the same time, it shuns excessive risk-taking, untenable inequalities, and the wasteful use of natural resources. At the community level, the Sufficiency Economy approach stresses the importance of “self-immunity”, in other words, the need for communities to possess resilience against external or internal shocks, be they economic downturns, soaring fuel prices, natural disasters, ill health in families, or bad harvests. At the national level, the idea of “self-immunity” is equally if not even more important. The Sufficiency Economy thinking helps us to build macroeconomic resilience to cope with the vagaries of the global economy and the negative effects of globalization. The publication and dissemination of the Thailand Human Development Report 2007 is a timely and useful contribution to the ongoing debate about how to translate the Sufficiency Economy thinking into effective policies and concrete action plans to transform the way we tackle poverty, manage the economy, run businesses, and govern our country – for the ultimate benefit of the Thai people. Just as important, this Report will help spread the message of the Sufficiency Economy beyond the borders of Thailand. During these times when the world is facing new challenges such as global warming and rapid globalization, the Sufficiency Economy philosophy – emphasizing moderation, responsible consumption, and resilience to external shocks – is of great relevance not only to Thailand but to countries and communities across the globe. iii The Sufficiency Economy offers an effective approach to promoting sustainability and managing risks; a survival strategy for travelling down the fast-moving and sometimes treacherous road of globalization, with its illusions and pitfalls. In such a world, what could be more important than a good strategy? General (Ret.) (Surayud Chulanont) Prime Minister of the Kingdom of Thailand iv Preface The first global Human Development Report was published in 1990 with the single goal of putting people at the centre of the global development debate. Every year since, these reports have addressed global challenges from a people-centred perspective, with a very simple message: Human development is about much more than the rise or fall of national incomes. It is about people. It is about creating an environment in which people can develop their full potential and live long, healthy, productive and creative lives in accord with their needs, cultures and interests. People are the real wealth of nations. Development is thus about expanding the choices people have to lead lives that they value. And it is about much more than economic growth, which is only a means – if a very important one – of enlarging people’s choices. As of today, over 400 national human development reports have been produced in 135 countries. These reports are helping to generate lively debates around the policies and actions needed to accelerate human development and achieve the Millennium Development Goals. Indeed, they have come to serve as important tools for policy advocacy and dialogue, placing human development at the forefront of national political agendas. Thailand is no exception. The previous national human development report on Thailand, published in 2003, focused on the theme “Community Empowerment and Human Development”. The report celebrated the extraordinary dynamism of Thailand’s community movements, identified the barriers to greater community empowerment, and proposed changes in policies and institutions to achieve greater participation, social equity, environmental conservation and other key goals. This new Thailand Human Development Report 2007 is a logical successor to the 2003 volume, but approaches the topic from a very different angle and can lay claim to a very special uniqueness. It presents the development thinking of Thailand’s long-reigning monarch, His Majesty King Bhumibol Adulyadej. While these ideas have been widely and intensively discussed within Thailand in recent years, and are now adopted as the basis of national government policy, this report is the first attempt to explain these ideas and their application in detail for a wider global audience. The King’s philosophy of “Sufficiency Economy” has great global relevance during these times of economic uncertainties, global warming and unsustainable use of natural resources. It offers a more balanced and sustainable path of development – a much-needed alternative to the unsustainable road the world is currently travelling down. Advocating economic stability over unbridled growth, it calls for prudent management of the economy, a step-by-step approach to market liberalization and a strengthening of society’s immunity against the negative side effects of globalization. Like human development, the Sufficiency Economy places humanity at the centre, focuses on well-being rather than wealth, makes sustainability the very core of the thinking, understands the need for human security and concentrates on building people’s capabilities to develop their potential. And it adds a spiritual dimension to human development, reflecting the King’s own character, convictions and sincerity. v We at UNDP, as a member of Thailand’s UN Country Team, are immensely honoured to have this opportunity to contribute to the policy dialogue about the practical application of Sufficiency Economy in Thailand, and through this report to disseminate its important messages across the globe. Joana Merlin-Scholtes UN Resident Coordinator and UNDP Resident Representative Thailand vi Acknowledgements UNDP Thailand wishes to convey its profound gratitude to a number of individuals and institutions for making valuable contributions to this Report. Advisory Panel The production of the Report was guided by an Advisory Panel, chaired by H.E. Kasem Watanachai, Privy Councilor, and co-chaired by H.E. Dr. Chirayu Israngkun Na Ayuthaya, Director General of the Bureau of the Crown Property. The members of the Advisory Panel of this report include: Dr. Amphon Kittiamphon (Secretary General, National Economic and Social Development Board), Dr. Ammar Siamwalla, (Distinguished Scholar, Thailand Development Research Institute), Khunying Kasama Varavarn (Secretary-General, Office of the Basic Education Commission, Ministry of Education), Dr. Juree Vichit-Vadakarn (Chairperson, Centre for Philanthropy and Society, National Institute of Development Administration), Dr. Niran Jongwutthiwet (Director General, Community Development Department, Ministry of Interior), Kittisak Sinthuvanich (Deputy Secretary General, Office of National Economic and Social Development Board), Dr. Somkiat Tangkitvanich (Research Director for Information Economy Science and Technology Development Programme, Thailand Development Research Institute), Dr. Nirand Pitakwatchara (Former Senator, Ubon Ratchathani Province), Dr. Priyanut Piboolsravut (Director of Sufficiency Economy Research Project Unit, Bureau of the Crown Property), Dr. Veerathai Santiprabhop (Senior Executive, Siam Commercial Bank, PCL), Wuchien Michael Than (Senior Executive Vice President, Chief HR Officer, Siam Commercial Bank, PCL), Ian Porter (World Bank’s Country Director for Thailand), Elizabeth Fong (Regional Manager, UNDP Regional Centre Bangkok), Joana Merlin-Scholtes (UN Resident Coordinator and UNDP Resident Representative in Thailand), Christine Evans-Klock (Former Director, ILO Sub-regional Office for East Asia) and Håkan Björkman (UNDP Programme Director and Deputy Resident Representative in Thailand). Contributors Special thanks to Dr. Ajva Taulananda (Vice Chairman, True Corporation Public Company Limited), Thanpuying Dr. Suthawan Sathirathai (President, Good Governance for Social Development and the Environment Institute) and Dr.