grassroots economic development in thailand
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1
Grassroots Economic Development in Thailand
Mr.Chirapun GullaprawitSenior Adviser
National Economic and Social Development Board (NESDB)
November 25, 2013, Imperial Queen's Park Hotel, Bangkok, Thailand
2
Outline for Presentation
Grassroots Economic Development Policy for Poverty Eradication
2Government Policy3
Evolution of The National Economic and Social Development Plan
1
Evolution of The National Economic and Social Development Plan
Gold Era of Planning Democracy Era Paradigm Shift
Plan 1 (1961-66)
Plan 2 (1967-71)
Plan 3 (1972-76)
Plan 4 (1977-81)
Plan 6 (1987-91)
Plan 9 (2002-06)
Plan 7 (1992-96)
Plan 8 (1997-2001)
Plan 5 (1982-86)Economic Growth and
Infrastructure Development Economic Growth
Led Development and the Beginning
of Social Development
Economic Stability and Social Development
People Centred Development
Paradigm
Participatory and Area-based Approach
Sufficiency Economy
Political Fluctuation
Plan 10 (2007-2011)Communit
yPlan
Plan 11 (2012-2016)
3
4
Grassroots Economic Development Policy
Improving access
to domestic &
international markets,
including
sub-district
websites
Human Resource Development
Strategic Interventions
Income generation
Redu
cing e
xpen
ditu
re
Increasing opportunities
Coordinating withChamber of Commerce
To Solve Poverty Problem
5
Fix-it centersFix-it centers
Land reform & landentitlement process
Land reform & landentitlement process
One Tambon, one productOne Tambon, one product
Improving access
to domestic &
international markets,
including sub-
district
websites
Debt suspension programDebt suspension program
Housing scheme for the poorHousing scheme for the poor
Free schooling & Lending bicycle for school children
Free schooling & Lending bicycle for school children
Village revolving fundVillage revolving fund
SML fundSML fund
Strategic Interventions
Income generation
Redu
cing e
xpen
ditu
re
Increasing opportunities
Managed by:CBOs
Coordinating withChamber of Commerce
Universal health insurance
Universal health insurance
Strategies & Specific Government Interventions for individuals, families and people groups
6
People Groups formation
Occupational
Group
Saving Group
Older Person
Group
Welfare
Group
Women Group
Community Plan Group
Youth
Group
- Establish various people groups
I . Building capacity for individuals,families and people groups
7
- Strategic Management
Targeted Interventions/Areas
GovernmentInterventions
CommunityPlan
Improving Efficiency
&Effectiveness
Com
mun
ity-le
d
Soluti
ons f
or
Develo
pmen
t
Change Role/Paradigm
II. Building capacity for communities
8
External Support
CommunityInvolvement Communit
yPlan
Community’sInitiatedInterventions
Community’s Strengthin Development
Local Authority&ProvincialPlans
Support fromDev. Partners
Linkage
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Com
mun
ity D
evel
opm
ent
Stra
tegi
es &
Spe
cific
G
over
nmen
t Int
erve
ntion
s
Capacity Building & Opportunity
Local authorities insure Education and life long learning Opportunity
Free Schooling & Lending bicycle for school children
Social Protection & Safety Net
Universal Health Insurance
Cash Transfer to Elderly & Disable persons
Housing & Shelter, drinking water
Macro& Micro Economic Management
Debt Moratorium for Small farmers and Agricultures
People’s Bank
Village Revolving Fund
One Tambon-One Product
Long-term credit facility, refinance loan from informal source
Changing Asset of the Poor toCapital
Streamlining Public Administration
Devolution of public resource management & responsibilities
Community Action Plan for Development
Natural Resource Management
Water Resource Management
Land Settlement and Reform
STRATEGIES: SELECTED INTERVENTIONS
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Income Generation
Increases Income of Farmers
Expenses Reduction
Rice Pledgin
g
Increases Income of laborsMin. Wage
of ฿300/day
฿15,000
Salary for Uni.
Graduates
Increases Income of University Graduates
Allowance
for Elderly
Price support for
agricultural produces
e.g. cassava,
rubber, pineapple
Increases Income of Farmers
Provides Income Guarantee for Elderly people
Corporate
Tax Cut
First-Home
Policy
Support for Cost of Living
Support for
Energy Prices
Maintain the prices of energy in a affordable range
Maintain the prices of consumer goods in a appropriate range
Increase opportunity for home ownership
Provide opportunity for car ownership for personal & commercial uses
Increase competitiveness of private sector & prepare for AEC
First-Time-
Car-Buyers
Scheme
Government Policy
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Increase the Village and Urban Community Fund to 1 million Baht per unit.
Establish a fund to develop women’s roles with an 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 tothe 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 development.
Access to Credit measures: Improve people’s access to sources of funding
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2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
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. THBo 2002= 24 bill. THBo 2003= 33 bill. THBo export in 2005 (9 months) = 874 mil. USD
One Tumbon One Product: OTOP
12
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Government Initiatives: Fix-It Centre
Vocational Students
Local technician/ mechanic/
worker
Local people
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.
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•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
Old Age Pension in the Current Social Security System
•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)
Pension Systems for Government State Enterprise
Officials
•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.
Private Sector Provident 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
Retirement Mutual Fund 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.
Other Old Age Pension System
Monthly allowance for all registered elderly particularly in the informal sector
(largest sector of Thailand)
Government Initiatives : Five Categories of (formal) Old Age
Security Systems
15
Universal Health Insurance
16
15 year free tuition fee: kindergarten to high school level
uniform school activities textbooks Tablet
Education Policy
16
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Housing Scheme for the Poor: Housing Security Project
958 communities: 52,780 HH (Sep, 2007)
Community Organizations Development Institute (Public Organization)
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.
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.
www.nesdb.go.th
Thank you
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