3. Income Creation Policy
The country's debt problem must be resolved by the creation of income. Therefore, the Government would support and promote the process of income creation for the people at all levels. Towards this end, the Government would promote the principles of the Sufficiency Economy in accordance with the potential of each community at the grassroots level of the country, beginning from production for personal consumption to sale of excess production to create income at the family level. The Government would support villagers to join together in conducting economic activities at the community level, accelerate the development of small- and medium-scale entrepreneurs, promote mutually beneficial and supportive linkages between such entrepreneurs and large-scale enterprises, and provide access to domestic and overseas markets in order to systematically strengthen the income creation process for the people.
In this connection, the Government will support the restructuring of the production bases in the agro-industrial, industrial and services sectors in order to meet the needs of modern-day markets. In so doing, the Government will emphasize and develop the country's natural resources and skills potential in areas in which the country has a natural or proven comparative advantage. The ultimate aim is to create a new base for creating employment, improve distributing opportunities and reducing risks, and creating a production base for small- and medium-scale entrepreneurs with an overview policy in the 3 following areas of agriculture, industry and services:
3.1 Agriculture
Agriculture policy is divided into 3 parts as follows:
Part 1: Revival and Strengthening of Farmers
(1) Reform the debt structure and maturity profile of the agricultural sector to correspond with the crop production cycle. Expedite the resolution of farmers' debt. Implement a debt moratorium and suspension of interest payments for a period of 3 years for small-scale farmers.
(2) Promote the practice of mixed agriculture, alternative agriculture and organic agriculture as well as support the learning process for farmers.
(3) Support farmers to have adequate land for earning their livelihood by implementing a coordinated and comprehensive land utilization policy and by optimizing the use of idle land. The management of water resources at every level must also be improved efficiently in a manner that is suited to the production system of each crop and the conditions of the terrain. Emphasis must be placed on the full participation of the people in the restoration, conservation and development of land that is upriver as well as in river basins, reservoirs, irrigation canals, water quality, and piped irrigation. The use of surface water and underground water must also be efficient and systematic, especially in projects involving the development of large water sources.
Part 2: Development of Domestic Markets and Strengthening Rural Communities
(1) Develop production in the rural sector and strengthen community economies by linking the processing of agricultural produce with the "One Village, One Product" Project. A one-million-baht Village and Community Fund will be established in each village to serve as a revolving loan facility for the long-term local investments and income creation in rural areas at community levels.
(2) Develop the marketing system for modern agricultural produce. Provide support for the construction of barns and crop drying grounds for farmer groups in rural areas. Promote the establishment of an information technology network for agriculture news and improve access to marketing information concerning agricultural goods so that farmers may undertake production planning in an efficient manner.
(3) Promote and strengthen cooperatives, community businesses, agricultural institutions, and community organizations, enabling them to participate in making and proposing agricultural policy and measures as well as in agricultural research and development.
(4) Increase production efficiency by promoting research and utilizing local knowledge as well as modern technological know-how.
(5) Promote and support agriculture and agro-industry appropriate to the particular conditions of the terrain and climate as well as in accordance with the demands of the market and the capacity of each community.
Part 3: Increasing the Competitiveness of the Agricultural Sector in the World Market
(1) Support the creation of new value added by processing agricultural produce. Develop the quality, standards, forms, and packaging of agricultural and agro-industrial goods.
(2) Develop Thailand as a centre for the production of organic agricultural products. Promote the registration of patents involving agricultural production in every area as preparation for future liberalization in trade of agricultural products.
(3) Improve quality controls, standards and safety of agricultural products, both imports and exports. Support the development of biotechnology to improve productivity, quality and standard that are internationally recognized and market tested.
(4) Promote coastal fishing, aqua-culture and marine farming as well as fishing beyond territorial waters based on bilateral cooperation with neighbouring countries, developing a strong national fishing fleet, supporting the cold storage industry, and promoting the processing of fishery goods. Conservation and protection of natural marine resources and the ecology of the seas is a primary policy.
3.2 Industry
(1) Restructure the industrial sector and promote investment consistent with the country's targets and national development strategies, while taking into consideration the country's natural resources, traditional and proven Thai skills and local knowledge, our potential in the area of production and marketing, and the need to strike a balance between utilization of domestic or imported raw materials.
(2) Promote the development of basic industries and linkages with related supporting industries as part of industrial restructuring and development.
(3) Develop skilled personnel and labour in the industrial sector in line with future industrial development strategies. Support measures to increase value added in industrial production. Promote and develop production processes that are of a high standard, pollution free or low environmental impact, while ensuring transparency and efficiency in management.
(4) Develop small- and medium-sized industries to play a significant role in the development of the country's industrial sector by supporting and promoting cooperation in the research and development of products and technology among the public and/or private sector and educational institutions as well as the creation of an information network concerning production and marketing factors.
(5) Promote the role of financial institutions. Support the establishment and operations of a Venture Capital Fund as well as a facility for guaranteeing credits for the development of small- and medium-sized industries.
(6) Support the growth of new entrepreneurs in small- and medium-sized industrial businesses in the new knowledge-based economy.
3.3 Services and Tourism
Tourism is a major foreign exchange industry. Therefore, it is the policy of the Government to improve the quality, diversity and standard of services and ensure the long-term competitiveness of the Thai services and tourism industry as follows: 3.3.1 Development of the Services Sector
(1) Improve and develop the basic factors necessary for increasing the efficiency and boosting the competitiveness of Thailand's service sector. This includes the production and development of service sector personnel, the development of different forms of providing services, and the development of technology and infrastructure.
(2) Arrange for agencies and organizations concerned to join together in developing a strategy whereby the potential of the services sector can be fully utilized. This would enable the services sector is serve as a source of foreign exchange and local revenue through areas such as tourism, education, health services, health care, sports and recreation.
(3) Accelerate the development of entrepreneurs in the services sector to provide them with appropriate knowledge and comparable skills in languages, service standards and management. This would help in strengthening and preparing them to cope with any new changes in international agreements governing the services sector.
3.3.2 Tourism Promotion
(1) Accelerate the restoration and strengthening of relations and cooperation with neighbouring countries in order to develop Thailand as the main gateway for tourism in the region in terms of marketing, transport, investment and management as well as solving any obstacles to such tourism developments. (2) Administer tourism by using proactive marketing tactics. Tourist activities must be developed both at the domestic and international level, with linkages to small- and medium-sized enterprises as well as community businesses. The quality of tourism services must be enhanced and Thailand's standing must be elevated as a centre for conferences, seminars and exhibitions in Southeast Asia.
(3) Accelerate the development, restoration and revival of the country's cultural heritage and assets, both within and outside city areas, in order to create new focus of tourism. Create new shopping areas for tourists by promoting the role of the private sector in collaboration with the community in preserving tourist sites and the Thai ways of life to remain distinct and vibrant.
(4) Increase the diversity of different forms and purposes of tourists, targeting eco-tourism, health tourism, and nature tourism. New tourist sites must be developed and promoted. Communities must be able to play a greater role in the management of tourism, whether through the establishment of tourism cooperatives or the development of community areas as tourist sites.
(5) Increase tourist facilities, ensure greater tourist safety, prevent unfair exploitation of tourists, and take effective measures to eliminate the difficulties faced by tourists.