From a growth-driven to a sustainable development policy, countries still face clear and present challenges in development. Those challenges stem from dysfunctional institutions, poor quality of people’s lives, environmental degradation, and the optimal role of government.
As this paper has argued, the philosophy of sufficiency economy of the King of Thailand conveys a new paradigm for development. Emphasizing the three principles of moderation, reasonableness and self-immunity together with the two conditions of knowledge and morality, this philosophy helps address those development challenges.
Trustworthiness, honesty, integrity, sharing, and altruism, the important elements of PSE, can be considered the social capital embedded in society that encourages proper economic and non-economic activities. PSE acts as an informal institution that can substitute for a formal institution in cases of a dysfunctional or missing formal institution. It also helps shape strong formal social capital in the society.
One of the most important applications of the PSE is to help improve human well-being. The PSE emphasizes the self-reliance of an individual and of a community, together with the essentials of education. Poverty reduction can be achieved, by which PSE helps people reduce vulnerability, build their own capability to shape their lives, and have choices. With the PSE mindset, people will be moderate, reasonable and selfimmune; therefore, they will not overexploit or abuse the environment or natural resources. They will embrace the environment, conserve it for the future and live in harmony with nature.
Finally, a government with a PSE mindset would be able to achieve the optimal role in maximizing its people’s welfare. Such a government will make policy with prudence and vigilance, resulting in good governance and a culture of honesty.