Reflections on the Human Condition - Api-fellowships.org

In case of the losers from FTAs, there was an approved
proposal of 10-billion-baht fund from Thai government
in order to compensate the farmers from their losses
due to the negative impacts of FTAs. The funds were
aimed to reform the agricultural sector and strengthen
the competitiveness of small Thai farmers by increasing
the quantity and quality of their products within the
next ten years. The allocation of the compensation was
directed to facilitate the local farmers to switch off the
uncompetitive crops to be the competitive ones and
to be price intervention. But, the effectiveness of this
compensation policy remains questionable as this effort
did not wipe the farmers’ existing problem out and it
looks like to protect exporters rather than local farmers
from the FTAs. (Bangkok Post, 2004c)
Other policies were also launched under the Thaksin
government such as the Thai’s idea of one village one
products scheme and the establishment of a small and
medium enterprise (SME) Bank and other financial
institutions in rural areas, event though these were not
a popular policy 24 . But these policies were still positive
to empower the local economic activities, even though
increasing productivity of the rural sectors would be an
efficient effort to lessen unbalanced benefits going to
the farmers.
Many farmers especially small farmers in Asian countries
has faced the difficulties in the productivity. Like what we
have found in Thailand farming (small-rural farming),
many farmers have been facing obstacles such as seeds,
fertilizer, irrigation, labour and cultivation problem. In
addition, they also have conventional problems such as
marketing. The direct consequence of the marketing
distortion is low prices for their commodities. Under
free trade, many small farmers are getting worse off as
they do not have enough bargain to the markets or to
the governments to negotiate about the matters. The
agricultural society, supported by the government, need
to put forward a modern productive and innovative
labor in agricultural sectors, particularly small farmers
so that the rural economic actors and their produced
goods will move up to the greater productivity and
higher quality. In doing so, we need to concentrate not
only on quantity but also quality, produce innovative
thinking with more outward-looking and globalized
manner and utilize it as global resources.
The government policies of empowering agricultural
society should encompass facilitation on easily and
reasonably price of inputs, job training and retraining,
skill development for variety of producing the products,
the upgrading of the educational systems and facilities
in the rural areas, and social and health care system
THE STATE, DEVELOPMENT AND GLOBALIZATION
249
as well. 25 In order to make the Thai farmers and the
agricultural industry survive in the global market, the
Thai government has to be cared on the emerging
enforces of developed countries on non-tariff barriers
such as hygienic standards. Indeed, the farmers have
to posses the sufficient production technology to
produce high quality of farming products that meet
the consumers’ requirements from individual markets.
These actions will bring the society to be competitive and
preserve the sustainability of agricultural development
in a whole.
In respect to the agricultural society, the national and
local government have to pay great attention to what we
call ‘food security’ for not only urban inhabitants but
also rural community and sustainability in agricultural
sector. 26 In creating the way of food security, the
respective players have to concern on the use of natural
resources that has to be set on the efficient production
(as the natural endowments are scarce). Income
distribution and social welfare are other aspects that we
have to care about. The government has to set the policy
on income distribution and social welfare fairly so that
no people are worse off.
CONCLUDING DISCUSSION AND POLICY
IMPLICATIONS
The agricultural sector has become the main sector
in most Asian countries. Different from those of
manufactured products, negotiations under FTA on
agricultural products have often been difficult due to the
condition in which there is a relatively high protection
in agriculture in most of negotiating countries. In
addition, agricultural sector consist of many player
mostly farmers with different characteristics and
bargaining position across countries.
Thailand has relatively well managed agricultural sector
and has been the most attractive developing country in
Asia to involve in the FTA, without any intention to
negate any other attracting countries, such as Singapore,
Malaysia, Vietnam, Laos and so on. These actions have
been believed to broaden international markets of Thai
products including agricultural products. In entering
free trade area, the government should have wisdoms
not to open market frontally, instead of gradually steps
to liberalize its domestic markets. In order to get equally
distributed benefits of FTA, it is imperative to create
not only a freer but also a fairer trade among partner
countries under the agreements.
Ref lections on the Human Condition: Change, Conflict and Modernity
The Work of the 2004/2005 API Fellows