Decentralized rural development and the role of self help organizations in Nang Rong, Buriram, Wilas Lohitkul, Thailand

In recent years we have seen an attempt to improve economic conditions and income through diversification of income generating activities. By introducing industrial businesses such as footwear and clothing manufacturing, export earnings increased, bringing much-needed foreign exchange into the national economy. This approach is aimed at establishing Thailand as a Newly Industrialized Country (NIC) in the future, which will increase its political as well as economic power. The effects of this approach on the nation's development that have become visible are that increased income is restricted to urban residents and rural people do not receive these benefits. In fact, government development assessment has shown that the income of urban residents has increased ten times more than that of northeastern rural residents. The northeast is home to approximately one-third of the population of Thailand; thus this income disparity is increasingly worrisome. Some 15 million people in the Northeast are considered to have incomes below the poverty line. Their average income is 4 141 baht per person per year (US$96). It is obvious that this kind of development approach is inappropriate and detrimental to the community, particularly in rural areas, by creating a wider gap between rich and poor, which become increasingly difficult to bridge. To exemplify the development of this situation, in 1976, 49 percent of Thailand's wealth was held by 20 percent of the population. By the 1990s, 55 percent of Thailand's wealth is held this group. In 1988, the poorest 20 percent of the population experienced reduced income holdings from 6 percent to 4.5 percent of national wealth. It is apparent that this trend of an increasing gap between rich and poor will continue if this development approach is continued. Realizing the danger, government policy regarding national development was altered to ensure that rural areas would have their growth needs addressed in every situation. The government applied a large portion of the annual national budget to development needs to achieve successful outcomes. The most important objectives set by government include provision of local health care centers, water and dam development, road improvement, widespread availability of electricity and schools.

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