The Sufficiency Economy on the Edges of Capitalism

Peter Calkins Faculty of Economics Chiang Mai University

Western textbook Economics

(Parkin and Bade, 2006)

All economic questions arise because we want more than we can get. Everyone ends up with some unsatisfied wants Our inability to satisfy all our wants is called scarcity.

4 edges of capitalism
Inability to solve the key socioeconomic problems of 21st century Self-centered maximizing view of production, consumption, and exchange Polarized income distribution Underestimate of human nature

Natural science Economics

Political science

Sociology

Religion

Waste Hunger Destruction

Greed Risk Short-run thinking

Corruption Powerlessness Campaign promises Passivism

Tyranny Prejudice Despair

Imposition Atheism Intolerance

Myth

Low human K

Illiteracy

Ignorance

Extinction

Theft

Imprisonment

Persecution

Extremism

Guns Automobiles d
Kyoto e

c Pglobalization

b g a Spirit

Knowledge Energy

Resources

Pequitable

Pequitable

Time

Erosion

Rice Butter

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

Happi ness

USD $

The two worlds of Adam Smith

Mans Higher nature: The Theory of Moral Sentiments Impartial spectator Others interest and opinion

World citizenship
Mans Lower nature:

The Wealth of Nations Invisible hand Self-interest Maximization

Moderation of wants
Buddha:
Life is suffering because we are tempted by unlimited desires The only way to avoid suffering is to avoid greed for things and situations we dont need.

Koran:
Spend benevolently of the good things that you earn Do 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 for a rich man to enter the kingdom of God.

Natural science

Economics

Political science

Sociology

Religion

Conservation

Moderation

Suffrage

Minority rights

Moderation

Food security Balance Science

Immunization Reasonableness Knowledge

Lenience Democracy Awareness of rights

Tolerance Flexibility Literacy

Faith Tolerance Ecumenism

Conservation

Ethics

Liberty

Culture

Acceptance

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

Author /Axis Material-economic Political-social King Bhumipol Adam Smith Leon Walras John M. Keynes Mahatma Gandhi Shigeto Tsuru French Revolution Sigmund Freud Moderation Wealth/inv.hand Immunization Nation Spiritual

Ethical compassi Sympathy Spirituality Morality Spirituality Warm-heart Fraternity Superego Whole brain

Market equilibrium Cooperation Markets Self-sufficiency Rich Liberty Id Fiscal-monetary Village economy Strong Equality Ego Right brain

Modern psychology Left brain

Ideal Development/Transition/ Globalization

Spiritual axis Ethics

Moderation

Immunization
Societal axis (Politics, Society)

Material axis
(Nat. Resources, Mkt economy)

Five principles of implementation

1.

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.

Five principles of implementation

2. 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 the productivity What percentage of land should be allocated to subsistence vs. exportable cash crops? Statistical, econometric, optimization tools and SAMs of standard economics SEM

Regional SEM for North Thailand

Production Sales Inputs Households Enterprises Government Environment Immunization Rest of world Row TOTAL

Prodn Sale Input Hhs 660 367 280 200 75 13 21 5 2 225

Gov Entr ern rpri men ses t

Envi ron men t

Im mun iatio n

Rest of TO worl TA d L 660

26

89

135

842 280

30

8 8

239 83 64

23 63 3 10 9

66 88 164

9 161 660 842 280 3 239

60

84

63

66

89

248 163 6

Five principles of implementation

3. Bottom- up aggregation slowly, in small increments focus groups and resource mapping aggregated upwards, through a bottom-up approach national and international levels, where countries can develop policies that are infused with appropriate concepts from the Kings Philosophy still respecting national income accounting and economic rigor

Five principles of implementation

4. Pluralism => combine with market economics knowledge economy sustainable modernization positive globalization technological advances in health and quality of life inventiveness and modernization should never be discouraged. humility and caution

Five principles of implementation

5. 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. Use Community Development Council proceed in two temporal stages attaining sufficiency and then maximizing remaining value added.

BANGKOK RESEARCHERS
Learn new technology Apply participatory research to other projects

Econo Materi mi al c 25

Politic al
13

Social 13

Spirit u Tota al l 25 25

Learn how farmers select practices

Get opportunity to apply FPR No longer work alone, but in partnership DOA accepts FPR approach as policy 20

23
23 10 10

23
23 20 20

Efficiency information increases income

Program unifies institutions: clearer for farmers Farmers express themselves with confidence Understand farmers needs and how to serve

18
15 12 11

18
15 12 11

See some old technologies don't work

Farmers trust researchers and extensionists Better planning through coordinated institutions Gain local wisdom from farmers

7
4 3 1

7
4 3 1

Motivated bec/ understand farmers

Total score % Total votes 32 15% 30 14% 51 24%

1
86 41% 10 5%

BANGKOK RESEARCHERS Learn new technology Apply participatory research to other projects

Moder Immu Reaso on niz n

13 13

Knowl Ethic Tota e s l

25 25 25

Learn how farmers select practices

Get opportunity to apply FPR No longer work alone, but in partnership DOA accepts FPR approach as policy 10

12

12
23 10 20

23
23 20 20

Efficiency information increases income

Program unifies institutions: clearer for farmers Farmers express themselves with confidence Understand farmers needs and how to serve 6

18
15 6 11

18
15 12 11

See some old technologies don't work

Farmers trust researchers and extensionists Better planning through coordinated institutions Gain local wisdom from farmers 3 1

3.5
2

3.5
2

7
4 3 1

Motivated bec/ understand farmers

Total score % 33 52 48 63

1
13