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Privatise the profits. Socialise the losses.

June 18th, 2008 by Andrew Walker · 4 Comments

Garlic growers in Mae Hong Son were encamped outside the city and blocked two roads in their protest to urge the government to buy garlic at a guaranteed price on Wednesday. The protesters gathered at city hall and moved to block a second road in Mae Sarieng district. Garlic farmers have encamped the Mae Hong Son city hall for the second day, and blocked one entrance to the city hall. … Nirat Chankaen, the chairman of the Mae Hong Son garlic grower network said that the blockage of the two roads and the protest at city hall was to urge the government to solve their garlic price problem. The protesters said that they would block the roads until the government approves buying dry garlic at a guaranteed price of 25 baht per kilogramme. Bangkok Post, 13 June 2008

Farmers in Thailand are like businessmen all over the world. When things are going well they like to keep the profits for their own private purposes. But when things start to go badly they want the state to step in and support them.

Thai farmers are flexing their new-found political muscle and taking to the streets with the “privatise the profits, socialise the losses” banner held high. And good luck to them.

There is no reason why rural producers, like other sectors of society, should not seek to maximise their share of state largesse. Some farmers may be sitting back raising ducks and reassuring themselves with the nostalgia of “sufficiency economy” but far more are, quite literally, voting with their feet and seeking to shore up their position in the free-market economy with a solid safety net of government subsidy when things go wrong.

Rice. Garlic. What next?

Tags: Northern Thailand · Sufficiency Economy · Thailand

4 responses so far ↓

  • 1 Srithanonchai // Jun 18, 2008 at 5:29 pm

    The Thai capitalist economy might not any time soon be replaced by the “suffiency economy.” I am not so sure about the (agricultural) “subsidy economy”, though. Let’s turn the state budget into a price-guarantee mechanism! The EU provides a good example of the consequences. The Samak government seems to be on the defensive on so many fronts…

  • 2 Patiwat // Jun 18, 2008 at 11:25 pm

    Pork? Oh wait….

  • 3 phrek gypmantasiri // Jun 19, 2008 at 7:13 pm

    Garlic is considered as vulnerable crop when we take into account strong competition of large and firm garlic bulbs from China. With a surge of fertilizer price, chemically based garlic farmers will face financial loss again. The “subsidy economy” will not be the answer. Currently in Mae Hong Sorn, small groups of farmers across districts, assisted by local NGO, have formed themselves Mae Hong Son Sustainable Agriculture Network. They have successfully produced organic garlic, and delivered the product at Baht 25/kg. The group has been working towards alternative agriculture for almost 10 years before any governmental grand intervention. It is a slow process but it does make a difference.

  • 4 jonfernquest // Jun 19, 2008 at 9:35 pm

    Wouldn’t a well planned and thought out agricultural policy be better than an ad hoc policy that only reacts, essentially giving in to (in an ad hoc fashion) every demonstration that arises?

    Are they just going to keep giving in until the government budget runs out and inflation eventually spirals out of control? (See Krugman’s article on wage price spiral and inflation. There is a recently resurrected government organic farming promotion programme.)

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