Sufficiency economy (Thai: เศรษฐกิจพอเพียง, romanized: Setthakit Phophiang) is the name of a Thai development approach attributed to King Bhumibol Adulyadej's "sufficiency economy philosophy" (SEP). It has been elaborated upon by Thai academics and agencies, promoted by the Government of Thailand, and applied by over 23,000 villages in Thailand that have SEP-based projects in operation.
History Soon after ascending to the throne in 1946, King Bhumibol Adulyadej toured the country and became aware of the hardships facing Thai farmers. At that time, the per capita GDP was about US$200. He took a keen interest in rural development and instituted a number of royal projects to help the lot of the rural impoverished. The sufficiency economy philosophy was elaborated upon in the king's speeches to students at Kasetsart University in 1974 and Khon Kaen University. To the latter, he said, "Development of the country must proceed in stages. First of all, there must be a foundation with the majority of the people having enough to live on by using methods and equipment that are economical but technically correct as well. When such a secure foundation is adequately ready and operational, then it can be gradually expanded and developed to raise prosperity and the economic standard to a higher level by stages." The concept of the sufficiency economy came to prominence during the 1997 Asian financial crisis, when the king told a nationwide television audience, "Recently, so many projects have been implemented, so many factories have been built, that it was thought Thailand would become a little tiger, and then a big tiger. People were crazy about becoming a tiger...Being a tiger is not important. The important thing for us is to have a sufficient economy. A sufficient economy means to have enough to support ourselves..."
Sufficiency economy Three interrelated components and two underlying conditions are central to the SEP's application. The three components are "reasonableness" (or "wisdom"), "moderation", and "prudence". The two essential underlying conditions are "knowledge" and "morality". In contrast to the concept that the primary duty of a company is to maximize profits for the benefit of shareholders, the SEP emphasizes maximizing the interests of all stakeholders and having a greater focus on long-term profitability as opposed to short-term success. The Chaipattana Foundation has said the sufficiency economy is "...a method of development based on moderation, prudence, and social immunity, one that uses knowledge and virtue as guidelines in living". A chapter entitled "Buddhist Economics" in E. F. Schumacher's 1973 book, Small Is Beautiful, provides much of the intellectual underpinning of King Bhumibol's sufficiency economy theories. The king was moved to translate it—it is not clear if he translated only the chapter or the book in its entirety—into the Thai language.
The sufficiency economy is not a theory about how the economy of a country works but rather a guide for making decisions that will produce outcomes beneficial to development. According to Thailand's National Economic and Social Development Board: "Sufficiency Economy is a philosophy that stresses the middle path as an overriding principle for appropriate conduct by the populace at all levels. This applies to conduct starting from the level of families to communities and to the nation in terms of development and administration, so as to modernize in line with the forces of globalization. 'Sufficiency' means moderation, reasonableness, and the need for self-immunity to protect from impacts arising from internal and external change. To achieve sufficiency, an application of knowledge with due consideration and prudence is essential. In particular, great care is needed in the utilization of theories and methodologies for planning and implementation in every step. At the same time, it is essential to strengthen the moral fiber of the nation, so that everyone, particularly public officials, academics, and business people at all levels, adhere first and foremost to the principles of honesty and integrity. In addition, a way of life based on patience, perseverance, diligence, wisdom and prudence is indispensable in creating balance and in coping appropriately with critical challenges arising from extensive and rapid socioeconomic, environmental, and cultural changes in the world".
The Oxford Business Group's 2016 report on Thailand says, "the sufficiency economy concept puts sustainability at its very core" and "is now seen as an important contributor to the UN's international development goals...advancing a different approach from short-term shareholder value-centred ideas of economic development."
Translating philosophy into action The Thai governmental organisation most responsible for implementing the sufficiency economy is the National Economic and Social Development Board (NESDB). Its primary tool for mobilising action is the publication National Economic and Development Plan. After the 2006 coup d'état, the military junta claimed that the policies of deposed Prime Minister Thaksin Shinawatra were inconsistent with the king's philosophy. The preamble of the junta's new constitution stated that promotion of self-sufficiency was one of the fundamental roles of the state. The junta-appointed prime minister, Surayud Chulanont, pledged to allocate 10 billion baht (US$300 million) for projects to promote well-being in line with King Bhumibol's sufficiency economy principle. He made the pledge while participating in King Bhumibol's 80th birthday celebrations.
Pit thong lang phra Pit thong lang phra (Thai: ปิดทองหลังพระ; lit. 'putting gold [leaf] on the back of the Buddha image') is a Thai idiom meaning "to eschew praise for one's good deeds". It is the name of a royal initiative to foster rural development using the philosophy of the sufficiency economy. Founded in 2008, the project was first deployed for five years in Nan, Udon Thani, Phetchaburi, Uthai Thani, and Kalasin provinces. It enabled farmers in 2,017 families to earn 285 million baht in income. The second phase was aimed at assisting farmers in Khon Kaen's Ubolratana district and 21 villages in Yala, Pattani, and Narathiwat provinces.
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