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The Royal Initiative of the ‘Philosophy of Sufficiency Economy’

Although His Majesty has been promoting self-reliant or sustainable farming since the 1950s, it is generally accepted that the idea of a Sufficiency Economy had been brought up in the 1970s during His Majesty’s speeches.

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Sufficiency Economy is a philosophy based on the fundamental principle of Thai culture. It is a method of development based on moderation, prudence, and social immunity, one that uses knowledge and virtue as guidelines in living. Significantly, there must be intelligence and perseverance which will lead to real happiness in leading one’s life.

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“…I ask all of you to aim for moderation and peace and work to achieve this goal. We do not have to be extremely prosperous…If we can maintain this moderation, then we can be excellent…”

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His Majesty the King’s Statement given on 4 December 1974

The Philosophy of Sufficiency Economy and its Three Pillars

- Moderation: Sufficiency at a level of not doing something too little or too much at the expense of oneself or others, for example, producing and consuming at a moderate level.

- Reasonableness: The decision concerning the level of sufficiency must be made rationally with consideration of the factors involved and careful anticipation of the outcomes that may be expected from such action.

- Risk Management: The preparation to cope with the likely impact and changes in various aspects by considering the probability of future situations.

Decisions and activities must be carried out at a sufficient level depending on two conditions:

- Knowledge, comprising all-round knowledge in the relevant fields and prudence in bringing this knowledge into consideration to understand the relationship among the field so as to use them to aid in the planning and ensure carefulness in the operation.

- Virtue to be promoted, comprising the awareness of honesty, patience, perseverance, and intelligence in leading one’s life.

In this royal statement, His Majesty concerned that modern development which emphasized only the economic expansion might eventually lead the country to the crisis. Therefore, he stressed the importance of building a ‘good and stable foundation’ before further progress could be developed. This means that instead of putting the emphasis on the expansion of the industrial sector prior to development, the stability of the basic economy should be established first, that is, assuring that the majority of rural people have enough to subsist first. This is a method of development that stresses the distribution of income to build the overall economic foundation and stability of the country before going on to a higher level of development.

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On a personal level, the Philosophy of Sufficiency Economy can be adopted by all people simply by adhering to the middle path. The awareness of virtue and honesty is also essential for people as well as public officials.

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The Philosophy of Sufficiency Economy and National Development

His Majesty’s Philosophy of Sufficiency Economy emphasizes that the producers or consumers try to produce or consume within the limit or limitation of existing income or resources first. This is the principle in decreasing the dependence and increasing the ability to control the production themselves, thus decreasing the risk of not being able to efficiently control the market system.

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Sufficiency Economy does not mean that one must constantly be frugal. A person can indulge himself in luxury once in a while, provided that it is within his capacity to do so. But the majority of the country’s population often overspend beyond their means. Sufficiency Economy can lead to the goal of establishing economic stability. Fundamentally, Thailand is an agricultural country; therefore, the country’s economy should be keyed towards agro-economy and food stability in order to establish a stable economic system to a certain degree. This is an economic system that can help lessen the risk of economic instability in the long run.