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Published on March 20, 2008

Mechai Viravaidya, a long-time advocate of business-village partnership, welcomes the interest but urges companies to focus their enthusiasm where they can really help the country: reducing poverty in Thailand.

He sees private-sector involvement as critical now, since the Thai government has failed miserably in this area.

Economic policies have failed to narrow the gap between rich and poor.

Its charity approach sees people as passive recipients of welfare and does not foster new skills or any form of lasting economic empowerment. Worse, it creates dependency on handouts.

"The welfare approach addresses the consequences of poverty rather than tackling the root cause and therefore is not sustainable," Mechai said.

He was speaking to a recent gathering of business executives at a luncheon hosted by the British Chamber of Commerce.

Recent efforts like the One Tambon One Product project and the Village Fund are the latest examples of failed efforts to reverse the persistent poverty gripping much of Thailand, which is why, as Mechai says, it is time for the business sector to step up to the plate.

People in the village are already engaged in business: they grow rice, fruit and vegetables, catch fish and raise livestock. But they often fail to prosper, because of a lack of business skills and bargaining power.

Some villagers say the companies they are dealing with exploit them.

An agribusiness signs a contract with them to grow potatoes and provides credit to purchase the company's seeds and fertiliser but then refuses to purchase the crops at the agreed prices.

Some companies are more responsible than others, whether because of their intrinsic good ethics or the demands of a more socially conscious market.

If these companies want to do something extra, Mechai suggests using their business skills and access to credit to help villagers make better choices.

"With moderate effort, these vital inputs could be provided by the business sector. The key is to motivate the business sector to become involved in poverty eradication as part of CSR," Mechai said.

The business sector can use their in-house resources like knowledge and skills, connections in the marketplace, in-kind donations, cash and staff time.

Speaking from a few decades of experience facilitating business-village partnership, Mechai said companies must first learn more about the people they want to help by visiting their villages and listening to their needs.

They must make sure the villagers are responsible for project planning, implementation, monitoring and evaluation, he said.

If any company wants to take up Mechai's challenge, he is ready to help them start.

Given his achievements to date, there is no one better you could want on your team.

Nantiya Tangwisutijit can be contacted at nantiya@nationgroup.com.

Nantiya Tangwisutijit

The Nation