One TambonOne Product

The Strengthening of Grassroots Economy of Thailand

Presented by Dr.Chamnan Wattanasiri

• Community Development Practitioner• Civil Society / People Participation Actor

• Amateur Farmer

Concept & Practice

878 Districts = Amphoe

77 Provinces = Changwad

7,255 Sub-Districts = Tambon

70,787 Villages = Moo Baan

It all started in OITA prefecture.“The Biggest Agriculture Area of

Japan”

OTOP Background

OTOP Background

• OTOP is a government-led and supported project.

• OTOP is an agency-integrated project.

• OTOP is carried out to mobilize all available resources from all sectors to generate prosperity for grassroots communities.

Nature of OTOP Scheme

Nature of OTOP Scheme

Background of OTOP

Before 2001

4 Decades of Production

with

Plus (+) and Minus (-)

Background of OTOP

Before 2001

4 Decades of Production

with

Plus (+) and Minus (-)

Background of OTOPBefore 2001

Background of OTOPBefore 2001

Concerned government agencies extended to reach communities:Development of Local/Community Group/Organization

Skill Training on Handicrafts:weaving and making in styles/patterns

our PLUS

Existing local/community occupational groups in every Tambon

Villagers have knowledge and skills Every Tambon has its

local/community products Available government services

(know-how & field workers)our PLUS

Background of OTOPBefore 2001

Background of OTOPBefore 2001

Background of OTOP

Before 2001

Background of OTOP

Before 2001 Over supply of local/community

products Low quality & No identity

(uniqueness) Disintegrate & Overlapping

government services

our MINUS

Background of OTOP

Before 2001

Background of OTOP

Before 2001

Low income debt, poverty Fading and Dying local wisdom Poor & Unattractive rural

/agricultural sector Rural-to-urban Migration Loss of Human Resource

Rural with Undesirable Consequences

our MINUS

Concepts Behind OTOP

Concepts Behind OTOP

Local & cultural products have future / market

Every local community already has uniqueness (local wisdom, culture, and tradition) and local identity

Every local community has its local product(s)

When connected to the market, local producers develop both themselves & their products

PlacePlacePeoplePeople

• Identity

Nature

• Diversity

Culture

Roots of OTOPRoots of OTOP

Unique Product Variety

Unique Product Variety• Identity

• Diversity

OTOP Product Characteristics OTOP Product

Characteristics

Reflect local identity (culture, way of life, wisdom, etc.)

Use local materials Environmental and social

friendly Chosen to represent the

community identity

Coconut-shell Lamp

Combination of: Local materials of low or no value

Creative idea of its use/purpose

Creative design

Ceramics + History

Pottery + String Weaving

New Dimension of Pottery

Combination of: Pottery making skills

(local knowledge)

Idea for new purpose (decoration)

Local clay (local knowledge)

New design (Local identity)

Local Herbs

+Local

Knowledge on Traditional

Medicine

Go Internationa

l

5 OTOP Categories5 OTOP Categories

Food (preservation, beverage)

Fabric & Dressing Wear Decoration, Gift, Souvenir Herbal Product (non-medicine)

Drink

OTOP ObjectivesOTOP Objectives

To create employment in local communities

To strengthen (revitalize) local communities

To promote local wisdom To promote human resource

development To promote creativity of local

communities

Three Fundamental

Principles

Three Fundamental

Principles Local, Yet Global

Self-Reliance and Creativity

Human Resource

Development

OTOP ProducersOTOP Producers

1. Community members (individuals)

2. Community-based Occupational Groups

3. Community-based SME entrepreneur who produces handmade products with local wisdom, materials, and workers

2. Production Promotion Sub-comm.2. Production Promotion Sub-comm.

3. Marketing Promotion Sub-comm.3. Marketing Promotion Sub-comm.

5. Regional OTOP Sub-committee5. Regional OTOP Sub-committee

1. Administrative Sub-committee1. Administrative Sub-committee

4. Product Quality Development and Standard Sub-comm.

4. Product Quality Development and Standard Sub-comm.

National OTOP CommitteeNational OTOP Committee

• Provincial Sub-committee• Provincial Sub-committee

• District Sub-committee• District Sub-committee

Provincial OTOP Sub- Committee Provincial OTOP Sub- Committee

National OTOP CommitteeNational OTOP Committee

District OTOP Sub-CommitteeDistrict OTOP Sub-Committee

The Administrative Structure of OTOP Scheme

The Administrative Structure of OTOP Scheme

“Agency Integration”

Office of the Prime Minister Ministry of Finance Ministry of Interior (Community Development Dept.) Ministry of Agriculture and Cooperatives Ministry of Industry Ministry of Commerce Ministry of Public Health Ministry of Foreign Affairs Tourism Authority of Thailand (TAT) Ministry of Education Ministry of Science, Technology and Environment Board of Investment, Etc.

5. Non-Medicinal Herbs

1. Food

2. Beverage

3. Fabric and Dressing Wear

4. Furnishing, Decorationand Souvenir

5 Categories of OTOP Products

OTOP Focus in 11-Year Road Map

26

2001 Ministerial Integration

2002 In search of OTOP

2003 OTOP Product Champion (OTOP)

2004 Standard Campaign

2005 OTOP Marketing Promotion

2006 In Search of Excellent OTOP (PSO & OVC)

2007 Knowledge – Based OTOP

2008 Entrepreneur Promotion

2009 OTOP Tourism Villages

2010 OTOP Network Promotion

2011 OTOP Value Creation for Creative Economy

OTOP Producer Registration Year 2010

Total 33,228 producers

Categories Quantity

1. Community Based Occupation Group 22,199 groups

2. One-person Owner 10,303 owners

3. SMEs 726 enterprises

OTOP Product Registration Year 2010

1. Food 20,330 products

2. Beverage 3,073 products3. Fabric & Dressing Wear 21,386 products

4. Furnishing, Decoration & Souvenir 31,334 products

5. Non-Medicinal Herb 9,050 products

28

Catagories Quantity

Total 85,173 products

Knowledge-based OTOP

Entrepreneurship

Development

Young OTOP Camp

Overall Operatio

n

OTOP Registrati

on

29

The Activities of OTOPMarket

Promotion

OTOP City Fair

Regional OTOP Fair

OTOP Midyear Fair

OTOP Product

Champion(OPC)

OTOP Village

Champion (OVC)

OTOP Tourism Village

2001 245 million ฿ (8 million $)

2002 16,714 million ฿ (557 million $)

2003 33,276 million ฿ (1,109 million $)

2004 46,362 million ฿ (1,545 million $)

2005 55,104 million ฿ (1,837 million $)

2006 68,105 million ฿ (2,270 million $)

2007 71,460 million ฿ (2,382 million $)

2008 77,705 million ฿ (2,590 million $)

30

OTOP Sale Figures (Baht)

2010 68,484 million ฿ (2,283 million $)

2009 63,009 million ฿ (2,100 million $)

2011 70,487 million ฿ (2,349 million $)

Points for Development Consideration

Points for Development Consideration

Domestic Sale = 85.97 %

International Sale = 14.03%

From 2001-2006

What does this tell us about development?What development approach should we

take to strengthen rural or grassroots economy?

Or How should we approach to the development of grassroots community?

•Product Classification System for Standard and

Quality

•The system has Criteria & Indicators.32

OTOP Product Champion (OPC)

5-star

product

4-star

product

3-star

product

2-star

product

1-star

product

OTOP Product Champion (OPC)

OTOP Product Champion (OPC) year 2010

1-star (below 50)

477 products

2-star (50-69) 2,654 products

3-star (70-79) 2,904 products

4-star (80-89) 3,498 products

5-star (90-100)

1,449 products

Total 10,982 products

Government

University

Private

Sector

OTOP Producer

s

University

Private

Sector

OTOP Producer

s

Sustainability

Stage

Formation

Stage

Knowledge-based OTOP(KBO)

KBO for Sustainability

OTOP KBO

Contest

4-Ps for Community Strengthening

OTOP Village Champion: OVC

P-PeoplePeople participation

P-PlaceCommunity can become a tourist

attraction.

P-ProductExisting prominent OTOP products in a

community.

P-PreservationCommunity can

maintain its local identity.

4 Ps

OTOP Marketing Promotion

OTOP MidyearOTOP CityRegional OTOP Fair

OTOP 2012 Proactive Policy

OTOP Mobile to the Factory/Department Store/Supermarket

OTOP Delivery

OTOP 2 Countries Relations

Excellent knowledge of Thai heritage to the world stage

OTOP Distribution Center (DC)

Young OTOP Exchange Program to ASEAN

International Young OTOP Champion Camp

Existing social capitals – groups & local wisdom

Government’s Commitment - National Agenda

Agency Integration – Effectiveness People/ Community Participation Focused Policy on Grassroots Economy Sufficient and Competent Government Field

Workers Knowledge Based Development of Products OTOP Brand

The Success Factors

Maintaining Standard & Quality

Continuing Production for mass order

Entrepreneurship Development Marketing Expansion Competitive Advantage – Brand & Image Knowledge Based Development of Products

(Technology)

41

The Challenges

Packaging Design Entrepreneurship Training Program for

Entrepreneur & Officer

Web Design & Technology

Food science Technology

Needed Support

Q & A

Thank you for your attention