Rural Poverty and Indebtedness : A Study in Three Thai Villages in Nongbua District, Nakhonsawan Province
This study investigates the nature and characteristics of rural indebtedness and poverty in three selected villages in Thailand. The study reveals that the commercialization of agriculture increased farmers' investment costs for farming which were not necessary during the subsistence perio...
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| Format: | Thesis |
| Language: | English English |
| Published: |
1995
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| Online Access: | http://psasir.upm.edu.my/id/eprint/8377/1/FEM_1995_1_A.pdf http://psasir.upm.edu.my/id/eprint/8377/ |
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| Summary: | This study investigates the nature and characteristics of
rural indebtedness and poverty in three selected villages in
Thailand.
The study reveals that the commercialization of
agriculture increased farmers' investment costs for farming
which were not necessary during the subsistence period. Their
way of life also changed and tended to rely on the outside
market for most things, even food which they used to produce
themselves.
The deforestation in the study areas had caused severe
environmental degradation. Poor soil condition was the main
factor contributing directly to low incomes, thus affecting the
large number of poor in the villages. The commercialization of agriculture also pushed farmers
to require credit. However, lack of land titles deterred many
farmers from approaching institutional sources of credit, which
provide loans with low interest rates. Many farmers were found
to be indebted as a consequence of either production
investments or consumption costs. The main reasons were high
expenditure for both farm inputs and household consumption, and
low yields caused by drought and pests.
The main solution to poverty and indebtedness of farmers
was to find additional work : non-farm and off-farm earnings.
Factors associated with farmers indebtedness and poverty
were: 1) political factors : government programmes; 2) economic
factors : the lack of land or land title, credit accessibility,
and price fluctuation; 3) physical factors: drought and pests,
ecological degradation, and poor soil conditions; and, 4)
personal attributes, such as gambling, extravagance, laziness,
drinking and drug addiction.
Suggestions to solve the problem of poverty and
indebtedness are to apply the 'safety-first' principle by
sustainable agriculture, such as agro forestry or integrated
farming. To deal with risks of over supply and low prices,
farmers, especially the poor, should be involved in several
sub-enterprises and direct marketing. Finally, credit unions, cooperatives, and savings groups should be strengthened to
ensure sustainable development of farmers in terms of self-reliance instead of having to rely on the capital of outsiders. |
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