Farmers in developing countries belong to the informal labor sector, by definition of the
International Labor Organization. In most countries, social welfare schemes do not extend to
benefit farmers (only 20% of informal labor around the globe has adequate social welfare). In
Thailand, it is only recently that Thai citizens have received very modest social or public
health insurance. As for the social welfare policy, the Thai government targeted only 0.3
million informal labor workers in the agricultural sector to be covered in 2006. In Northern
Thailand, 86% of the farmers reported belongingto least one of these schemes. None of the
contract farmers in Thailand and elsewhere receive welfare benefits from formal contract
firms. Interviews with the management of international firms confirmed there was no
provision of health insurance etc. in the contract.
As contract farming has been expanding in Thailand and extending into new areas in the
Greater Mekong Sub-region, it is imperative to consider the welfare issue in addition to fair
trade and market access aspects. This is especially recommended for projects under
development of agencies like ADB and the Regional Economic Cooperation—e.g., the
Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS)