Bangkok Sufficiency Ec Panel 23 Nov 2006

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    The Sufficiency Economy

    on the Edges of CapitalismPeter Calkins

    Faculty of EconomicsChiang Mai University

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    Western textbook Economic(Parkin and Bade, 2006)

    All economic questions arise because we

    want more than we can get.

    Everyone ends up with some unsatisfiedwants

    Our inability to satisfy all our wants is

    called scarcity.

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    4 edges of capitalism Inability to solve the key socioeconomic

    problems of 21st century

    Self-centered maximizing view of productionconsumption, and exchange

    Polarized income distribution

    Underestimate of human nature

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    Natural science Economics Political

    science

    Sociology Religion

    Waste Greed Corruption Tyranny Imposition

    Hunger Risk Powerlessness Prejudice Atheism

    Destruction Short-run

    thinking

    Campaign

    promises

    Despair Intolerance

    Myth Low

    human K

    Passivism Illiteracy Ignorance

    Extinction Theft Imprisonment Persecution Extremism

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    ButterErosion

    Kyoto

    TimeEnergy

    Resources

    Spirit

    Know-ledge

    Figure 1: Sufficiency Economy on the edge of production, consumption and exchange

    Automobiles

    a

    b

    c

    f

    d

    Pequitable

    Pequitable

    Pglobalization

    Guns

    Rice

    e

    g

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    USD $

    Happiness

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    Mans Higher nature:

    The Theory of Moral Sentiments

    Impartial spectator

    Others interest and opinion

    World citizenshipMans Lower nature:

    The Wealth of Nations Invisible hand

    Self-interest

    Maximization

    The two worlds of Adam Smith

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    Moderation of wants Buddha:

    Life is suffering because we are tempted by unlimited desiresThe only way to avoid suffering is to avoid greed for things an

    situations we dont need.

    Koran:

    Spend benevolently of the good things that you earnDo not wish for bads

    Know that Allah is Self-sufficient, Praiseworthy.

    Bible

    It is hard for a rich man to enter the kingdom of heaven

    It is easier for a camel to go through the eye of a needle than fa rich man to enter the kingdom of God.

    l l l l l

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    Natural science Economics Political

    science

    Sociology Religion

    Conservation Moderation Suffrage Minority

    rights

    Moderation

    Food security Immunization Lenience Tolerance Faith

    Balance Reasonableness Democracy Flexibility Tolerance

    Science Knowledge Awareness of

    rights

    Literacy Ecumenism

    Conservation Ethics Liberty Culture Acceptance

    T bl 1 T i P l Vi i f W ll b i i E i d P h l

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    Table 1. Tri-Polar Visions of Well-being in Economics and Psycholo

    uthor /Axis Material-economic Political-social Spiritual

    King Bhumipol Moderation Immunization Ethical com

    dam Smith Wealth/inv.hand Nation Sympathy

    Leon Walras Market equilibrium Cooperation Spirituality

    John M. Keynes Markets Fiscal-monetary MoralityMahatma Gandhi Self-sufficiency Village economy Spirituality

    Shigeto Tsuru Rich Strong Warm-heart

    French Revolution Liberty Equality FraternitySigmund Freud Id Ego Superego

    Modern psychology Left brain Right brain Whole brain

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    Material axis

    (Nat. Resources, Mkt economy

    Societal axis

    (Politics, Society)

    Spiritual axis

    Ideal Development/Transition/ Globalization

    Moderation

    Ethics

    Immunization

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    Five principles of implementation1. Adequate preparation who will be affected, how and how much

    empowered with knowledge, especially

    vulnerable to be immunized

    imposition leads to death, destruction and

    suffering of the people it was designed to help

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    Five principles of implementation2. Quantification

    To date most case-study communities have been

    described qualitatively

    how many calories per day for food security

    By how many baht per hour has appropriate new

    traditional and modern knowledge improved theproductivity

    What percentage of land should be allocated to

    subsistence vs. exportable cash crops? Statistical, econometric, optimization tools and SAMs

    standard economics SEM

    Gov Envi Im Rest

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    Regional SEM for

    North Thailand Prodn Sale Input Hhs

    Entr

    rpri

    ses

    Gov

    ern

    men

    t

    Envi

    ron

    men

    t

    Im

    mun

    iatio

    n

    Rest

    of

    worl

    d

    T

    T

    L

    Production 660 6

    Sales 367 225 26 89 135 8

    Inputs 280 2

    Households 200 1 30 8 2

    Enterprises 75 8

    Government 13 21 5 2 23

    Environment 63 3

    Immunization 9 60 10 9

    Rest of world 161 3

    Row TOTAL 660 842 280 239 84 63 66 89 163

    2

    i i i l f i l i

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    Five principles of implementation3. Bottom- up aggregation

    slowly, in small increments focus groups and resource mapping

    aggregated upwards, through a bottom-up

    approach national and international levels, wherecountries can develop policies that are infusedwith appropriate concepts from the Kings

    Philosophy still respecting national income accounting an

    economic ri or

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    Five principles of implementation4. Pluralism => combine with

    market economics

    knowledge economy

    sustainable modernization

    positive globalization

    technological advances in health and quality of life

    inventiveness and modernization should never bediscouraged.

    humility and caution

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    Five principles of implementation5. Buffered vs sequential application

    set up a buffer(protective filter) between the inward

    looking, protective sufficiency economy part and the

    outward looking, risk-laden globalizing economy. UseCommunity Development Council

    proceed in two temporal stagesattaining sufficiency anthen maximizing remaining value added.

    Materi mi Politic u

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    BANGKOK RESEARCHERSMateri

    al

    mi

    c

    Politic

    al Social

    u

    alLearn new technology 25

    Apply participatory research to other projects 13 13

    Learn how farmers select practices 23

    Get opportunity to apply FPR 23

    No longer work alone, but in partnership 10 10

    DOA accepts FPR approach as policy 20

    Efficiency information increases income 18

    Program unifies institutions: clearer for farmers 15

    Farmers express themselves with confidence 12

    Understand farmers needs and how to serve 11

    See some old technologies don't work 7

    Farmers trust researchers and extensionists 4

    Better planning through coordinated institutions 3

    Gain local wisdom from farmers 1

    Motivated bec/understand farmers 1

    Total score 32 30 51 86 10

    %Total votes 15% 14% 24% 41% 5%

    Moder Immu Reaso Knowl Ethic

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    BANGKOK RESEARCHERS

    Moder

    on

    Immu

    niz

    Reaso

    n

    Knowl

    e

    Ethic

    s

    Learn new technology 25

    Apply participatory research to other projects 13 13

    Learn how farmers select practices 12 12

    Get opportunity to apply FPR 23

    No longer work alone, but in partnership 10 10

    DOA accepts FPR approach as policy 20

    Efficiency information increases income 18

    Program unifies institutions: clearer for farmers 15

    Farmers express themselves with confidence 6 6

    Understand farmers needs and how to serve 11

    See some old technologies don't work 3.5 3.5

    Farmers trust researchers and extensionists 2 2

    Better planning through coordinated institutions 3

    Gain local wisdom from farmers 1

    Motivated bec/understand farmers 1

    Total score 33 52 48 63 13

    %Total votes