We have been translating the term “Settakij Porpieng” as “Sufficiency Economy”. I believe the term “Sufficiency Economy” has a connotation that tends to mislead the public especially, those who favor free trade and globalization to associate this type of economy as self-sufficient economy. In economic development strategy self sufficient economy goes in the opposite direction to free trade and globalization. I believe this is the issue that the public relation and political consulting firms in the US are focusing on for their client. As we all know the US is the leading country that promotes free trade and globalization. For example, the Wall Street Journal and its subsidiary Asian Wall Street Journal like to write about free trade and globalization. This is because their readers are investors that would directly benefits from free trade and globalization. The term “Sufficiency Economy “ is very threatening to them. A clear example can be seen when the central Bank and Ministry of Finance try to introduce measures designed to stop appreciation of Baht to help the export sector. Foreign investors see this action as an exercise of practicing self-sufficiency economy.
I believe the core meaning and intention of “Settakij Porpieng”have nothing to do with self-sufficiency economy. In my interpretation “Settakij Porpieng” emphasizes two most important conditions for sustainable economic development, which include increase domestic saving and promote food security among rural population and rural poor in the country. These two elements in economic development are very crucial for sustainable economic development and growth. Higher domestic saving combine with inflow of foreign capital will eventually lead to lower interest, cheaper money lead to higher investment more employment. We must remember that in macro economic saving equal investment.
Free trade and globalization means that economy will function in the most efficient manners. However, we must also recognize that in the market economy there is a tradeoff between efficiency and equality. This means those who are not well endowed will be left behind, small family farmers will not be able to compete with corporate farm or cheap imports. However, consumers will benefits from cheap produces thus, improve efficiency in the economy. “Settakij Porpieng” does not advocate any restriction of imports or opposing corporate farm. I believe, it simply emphasizes food security among rural population and/or rural poor, which is one of the key elements for sustainable economic growth. That is all individuals have equal opportunities and are spared from extreme deprivation and outcomes of economic development.
I would like to end my thought by stressing that we should refrain from using the English term “Sufficiency Economy,” since it does not do any justice to the original Thai term “Settakij Porpieng.” I believe “Settakij Porpieng.” has nothing to do with self-sufficiency economy (neither on concept nor the practices), it simply emphasizes domestic saving and food security that are two of the crucial elements for sustainable economic growth and development.