OTOP

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• OTOP
• An Implication for
• Poverty Reduction in Thailand

Authors Chudatip RITRUECHAI Dr. Chaivej
NUCHPRAYOON 29 October 2007 Chudatipsmebank_at_yaho
o.com
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• Kingdom of Thailand
• Land of Smile

The Beloved King and Queen and Royal
Family Best Sample of Devotion and Hard Working
for Poverty Reduction
Buddhism Base Concept of Kind Cooperation
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Background
Established 2001 / OVOP Concept of
Japan Implemented Department of Community
Development Together with Other Public and
Private Agencies Concerned An Instrument of
Reduce Poverty / Community Development
Japanese"OVOP Project"

Good Quality Local Products Local
Materials Create Value Added Thai Wisdom
Experiences
Local Yet Global Self-reliance Creativity of
Local Community Wisdom Local Human Resources
Development
Thai "OTOP Project"
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Formulation / Project Management
The National Economic and Social Development
Board set up policy for poverty eradication and
submitted to Government
The Government through the Cabinet created the
Project
National Committee
Sub-Committee Management
Sub-Committee on Marketing Promotion
Sub-Committee on Manufacturing Promotion
Sub-Committee on Standards Development
Sub-Committee Product Quality Development
Office of Coordination for OTOP Project
Provincial Committee

Amphor (District) / Sub District Committee
Tambon Committee
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Key Elements and Programme
Target Beneficiaries Producers 2006
37,840 entrepreneurs Local
employees 611,990 employees Communities
Consumers The Nation Overall Milestone
Stakeholders Cooperation All Agencies
Concerned Under Royal Philosophy Sufficiency
Economy Morality Ethics
Team



HR Development Entrepreneurs Employees
Community Leaders Ethics Create Trust
/Loyalty

• Duration
• Implemented since 2001
• Without Time Limitation

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Geographic Coverage 2006 All Parts of
Thailand Northeastern 15,409
Motivation Modern Knowledge Market Needs
Product Champion Scheme
Role of Champions Creativity Good Quality
High Standard Proud of Themselves Create
Trust from Customers Become Exporter Thai
Products Representative Bring National Wealth
Product Development Product Designs
Training Advisory Services Standards
Halal / ISO / Health Standardized
1-5 Stars Selection 14,520 Products
in 2006


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Market Place Promotion
OTOP City Fairs The City of Thai Wisdom
Thai Tambon.com 16,797 Products
5,054 Tambons
Marketing Channels 75 Networks 6 - 18,000
Places Effective Location
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Funding Financial Support Seed Fund The
Government 1,500 M Baht in 2001 460 M Baht (
2003-2006 OTOP City FairMid 2007) 5
B Baht 4 Banks Cheaper Interest Rate
Bank of Agriculture and Agricultural
Cooperatives BAAC
Export and Import Bank EXIM Bank
Government Savings Bank GSB
Outcomes Community Grass-roots Level
Development Entrepreneurs Increased
7,000/2001- 37,840/2006 Sales Revenue
Increased 16.7 M Baht/67.8 M Baht Infrastructur
es Communication Local Wisdom Concrete
ToolPoverty Alleviation

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Innovations New Way of OTOP Success
Beginning of Stability Community and Local
Product Promotion (OTOP) Prime-Minster Awards
Honorable Persons
10 Community Leaders
Sample Potential Model Very Good Sample
Model Develop Community Decrease Poverty
Challenges and Overcome To Concrete the
Project Lead to Poverty Reduction Become a
National-wide Opportunity Lack Required
Product / Market Needs Infringement / Copying


How to Apply Publicize the Concept Issue
Policy Create Project Cambodia / Nepal
Good Practice Build up Employment Generate
Income Local Development
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JIRAPHA CERAMIC Samuthsakorn Province
BENJARONG
J. ANGEL RICE Rachaburi Province Thai Rice
Milk Vitamin
SONGKLA GOLDREN MERMAID Songkla
Province MERMAID Shrimp Crisp Rice MERMAID
Crystal Shrimp
Rice Milk Serum
Rice Milk Lotion
Yin Yang Soap
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Success Factors Beloved King /Queen / the
Royal Family Buddhism concept All
Stakeholders All beneficiaries
Recommendation Ethic Entrepreneurs /
Community New Important Agenda Result on
Trust Loyalty from Consumers Good
Reputation of Cooperation Growth
Sustainability
Conclusion Success Story The UN MDGoals 1
called Eradicate Extreme Poverty and Hunger
Dream can Come True Other Countries Imply
the Concept Poverty Reduction of the World
Community