An Examination of Community-Based Enterprises and Poverty Reduction in Rural Northern Thailand

Abstract

Poverty alleviation remains a challenge for Thailand's socio-economic development. A key strategy of the Thai government to help meet this challenge at the 'grass roots' level has been the promotion of community-based enterprises (CBEs). Approximately 40 per cent of CBEs engage in food processing and handicraft production. The Government has supported CBEs through the One Tambon One Product (OTOP) project, which includes such initiatives as the OTOP Product Champion (OPC) certification that aims to improve the quality of CBE products. National statistics and descriptive studies show that CBEs have led to both income improvement and employment creation. However, the question is whether they have alleviated poverty. Poverty can be viewed from a number of perspectives, not only monetary. Therefore, a multidimensional perspective of poverty is a central theme of this thesis. The purpose of this research has been to conduct a comprehensive analysis of the role that CBEs play in poverty reduction at the household level in the context of the United Nations Millennium Development Goals (UN MDGs). To obtain data for the research, a detailed survey was conducted of 14 CBEs in northern Thailand. The survey included 343 households from 12 villages. The analytical framework used in the research is based on a multidisciplinary approach with two key steps: (1) identification of poverty groups within the target geographical area and their related poverty components; (2) and investigation of the role of CBEs and other factors on household poverty. The framework combines three well-known but traditionally separately used methodologies in order to better explore the economic dynamic of CBEs on households. The framework is relevant, both theoretically and methodologically, to researchers undertaking similar poverty, microenterprise and social entrepreneurship studies in developing countries.