Assessing outcomes of private company involvement in rural development in Thailand

Abstract

The purpose of this study was to examine the outcomes of rural development by the non government organisations (NGOs) promoting private companies' involvement in rural development in Thailand. The main objective of study was to evaluate the outcomes of the private companies' rural development programme from the points of view of the villagers, private company officials and NGO staff. Three appropriate methods; interviews, available data, workshops and group meetings, were used to gather data. One hundred and sixteen participants from all three parties were interviewed. Thirty NGO staff and 95 villagers participated in workshops and group meetings. Eight villages and three private companies were selected as case studies. Four matched pairs of villages were used to compare the outcomes of the rural development programmes in terms of increased incomes, improved business skills, and perceptions of the development programmes.

The results of the match pair comparisons showed that the villagers participating in private company development programmes took the view that their incomes had dramatically increased, leading to a higher standard of living for them. Not only had individual incomes increased but the village organisations' funds had also risen. In general, the overall perception of the development programme is that they been effective in developing positive social and cultural activities in the villages. Positive effects included increased employment and business opportunities, the increased role of women, the promotion of villager’s participation in development, and other benefits seen by villagers such as strengthening of village organisations and the government paid more attention.

The field study indicated the factors influencing the private companies in participating in the rural development programme. It also presented the actual benefits to the private companies including: positive image, improved public relations, boosting of employment morale, doing experimental model of shoe production, gaining tax advantage, having joint venture opportunities, and selling and buying products from the their rural development programmes. Furthermore, the results demonstrated that the NGO that initiated the private companies' involvement has gained various benefits from implementing this rural development programme. In particular, its staff learnt more business skills in the joint ventures opportunities, applied business skills to other development programmes. The government provided funds to the NGO and it also gained positive image.