Impoverished households often solve this problem by borrowing rice or money from other merchants or tradesmen and paying a high interest rate. In the end, the locals incur debt and then become bankrupt. Their inability to take care of themselves becomes an obstacle for developing other aspects of the nation. The fact that Thailand has enough grains to feed everyone in the country but still has those who do not have enough to eat, is a conflict in the local areas of the country.His Majesty the King Bhumibol Adulyadej’s Viewpoint on the “Rice Bank” .His Majesty King Bhumibol Adulyadej has traveled to the rural areas of the country on a regular basis for decades. Therefore, His Majesty is aware of the poverty and the troubles of Thai farmers, especially in terms of “rice”.
In 1976, His Majesty the King visited the Karen people in Amphoe Chom Thong, Chiang Mai Province and granted rice paddies to the many village headmen to start a “rice bank” for their communities. His Majesty the King also gave advice to the Karen people, suggesting that a few selected villagers form a committee to oversee the amount of rice given out on loan and received and to manage the “rice bank” account. Local villagers that need rice as food have to sign their names stating how much rice is being borrowed from the bank. When the villagers are able to collect enough rice, they then must return the rice to the rice bank as well as pay a small amount of interest as agreed upon with the committee. The rice that is the interest will be kept in the rice bank and will serve as food for everyone in the village.
The rice bank is a project set up to help with social welfare. The results of this project are similar to transferring income from the wealthy to the poor. It is a distribution of income that all parties benefit from. The people have a central source of rice that belongs to the village, from which the people can borrow rice for food or to use to cultivate. The villagers must pay interest, which is less than the interest that would have been paid to another merchant or tradesman. And this helps alleviate the troubles of the poor and needy and improves the social status and income of the farmers. This solution is effective and helps build a foundation for improving cooperation among the villagers so that they know how to deal with their problems effectively.