Implications of the One Tambon One Product policy on sustainable development in Thailand

Title: Implications of the One Tambon One Product policy on sustainable development in Thailand

Author: Devraj Rangsit

Year: 2006

Keywords: N/A

Theme: Post-development

Advisor(s): Surichai Wun'Gaeo

The full thesis available here.

Abstract: The goals of the One Tambon One Product (OTOP) project under the government of Prime Minister Thaksin Shinawatra are often linked to Thailand's theory of sustainable development due to its ability to drive three key processes: 1) decentralization of local governance nationwide (at the village, sub-district, and provincial levels), 2) promotion of community participation in local governance and development, and 3) job/income generation within communities. This thesis aims to analyze: 1. The linkage of the OTOP policy to Thailand's theory of sustainable development; and 2. Comparing the differences in operational principles and success indicators between the OTOP policy and the private sector operating under the principles of Fairtrade. The research methodology includes analyzing documents related to project success assessment and interviewing officials from the National Research Council of Thailand and representatives from private sector organizations operating under Fairtrade principles to compare the differences in success assessment and guiding criteria for producers under both projects. The findings indicate that the income generated by the OTOP policy comes from the private sector, or private sector entities registered as community producers. Quantitative indicators of community potential development or equitable income distribution cannot be used as a measure of the policy's success. Using quantitative figures without considering qualitative impacts or fairness in trade (or employment) may reflect a policy that focuses solely on quantitative (economic) outcomes without regard for social or biological impacts, contrary to the principles of sustainable development. Furthermore, it can be concluded that for the project to effectively promote development and income enhancement according to the principles of sustainable development, it may be necessary to clearly categorize participating producers and control their operating conditions. This approach could help transform the One Tambon One Product policy into a tangible solution for community potential development and income generation, contrasting with the current focus on supporting small-scale producers (without categorizing them) and prioritizing sales figures per province without considering the community's impact. The One Tambon One Product (OTOP) policy under the Thaksin government was meant to be an initiator of SD through Thailand's decentralization process, the empowerment of local communities and employment creation and income diversification within local vicinities. The objectives of this thesis are as follows: Firstly, to clarify OTOP's conceptual implication to the notion of Sustainable Development in Thailand. Secondly, to identify the differences between the operating principles of OTOP and the Fair trade movement, and their implication towards the enabling of SD and community empowerment. The methodologies employed are structured interviews of key informants supported with the assessment of data from reports and past evaluation of OTOP as part of the comparative analysis. Informants included staffs from the National Research Council of Thailand and the managerial personnel of a Fair trade organization in Thailand. The findings are: Through the comparative analysis of OTOP's current operating principles with principles employed by the Fair trade organizations, the revenue generated through OTOP, despite of its high volume does not contribute towards the enabling of the policy's stated objectives. Implementation of OTOP lacks the disaggregate differentiation between the various types of producers involved as well as the fact that overwhelming emphasis is given to the volume of trade rather than the quality of trade conducted or the extent of the community learning process enabled. Recommendations: In order for OTOP to be an effective instigator of sustainable economic growth and community empowerment, there is an essential need for the differentiation between the types of producers endorsed. Equally important OTOP's current strategic objective of trade maximization should be replaced with the need for increased emphasis on 'customer education' and 'ethical consumption'.