Policy Process
2.6 Related Researches
Si Thammarat, and the area for Japan case study in Oyama city of Oita prefecture.
According to the study, it was found that the OTOP project and OVOP project differs in the origins and the application of policy. The OVOP project was initiated and applied by the community members, while the OTOP was controlled and directed by the central government with the higher authority than the people. The thing which revealed the picture of government authority was the advocacy for the OTOP project under the direction of the OTOP committee, which was affiliated with the Prime Minister’s Office. As for the products, the OVOP project focused on the creation of quality products which reflect the identity of each community, while the OTOP products were controlled by the central government. As for the financial support, the OVOP project did not focus on the financial support to the community. On the contrary, the Thai government provided loans for the OTOP community enterprise. Furthermore, the OVOP project aimed to develop the human resource while the OTOP project did not focus on such goal at all. As for the similarities between both projects, they both aimed to solve the poverty and the migration of local people. In terms of marketing, the OVOP received support and aid from the government in the product marketing, which resembles the OTOP’s marketing support by the government. However, the OTOP’s marketing was more widespread as it was the national policy, while the OVOP was the local policy.
Haraguchi’s (2008) study “The One-Village-One-Product (OVOP) movement:
What it is, how it has been replicated, and recommendations for a UNIDO OVOP-type project” support the UNIDO’s objective in solving poverty and study the suburb in Africa, by following the OVOP project in Japan as the model and studying the OVOP in other area, such as the Thailand’s OTOP, and Malawi’s OVOP, in order to find the gap to develop UNIDO’s project. According to the study and the analysis, it was found that the OVOP had 3 objectives of supporting the sale and management system, the product quality, and the community capacity development, which were fulfilled completely by the original OVOP project in Japan. However, the OTOP project in Thailand and the OVOP project in Malawi could fulfill just the objective of supporting the sale and management structure, as they focused only with the outcome in this objective. Nevertheless, solving the gap problem between the original OVOP project in Japan and the OTOP project in Thailand and the OVOP project in Malawi could be
done, as UNIDO is specialized in the Private Sector Development (PSD) which could fill the gap in the 2 objectives which the Thailand’s OTOP project and Malawi’s OVOP project did not emphasis. UNIDO proposed that the OVOP must develop the technology and coordination under the available resources within the community as well as the human resource development. In addition, the government sector must allow the community to play the role to create the developmental concept by themselves, which would create the social capital and sustainable development. Here, the important principle of community development is the participation process for the community to learn to develop under the unique condition of each community. Especially for the community capacity development, the UNIDO would applied the model of Enabling Rural Innovation (ERI) in order to motivate and develop participation within the community. In terms of the product, UNIDO could arrange the product standard assurance by UNIDO which might be called “OVOP-UNIDO” product, as well as arrange for the UNIDO Investment and Technology Promotion Offices (ITPOs), in order to promote the product towards the international market as well as receiving feedback from the customers through the website, which the ITPOs would deal with the customers’ feedback and reflect the data towards the manufacturing community in order to improve the product.
Huttasin’s (2008) study “Perceived Social Impacts of Tourism by Residents in the OTOP Tourism Village, Thailand” aimed to study the perception towards the socio- cultural impact within the Baan Tawai community after it was selected as the pilot project of tourism village according to the OTOP concept. Nara Huttasin suggested that the community members’ perception included both the negative and positive perception in terms of social consequence. Positively, it was perceived that there would be the economic benefit and well-being. While the negative perception of the social consequences were the higher land price, occupation change, and garbage problem, which can be decreased by the sustainable social supports in all dimension.
Furthermore, the villagers also saw that the community tourism would not affect the traditional way of life nor increase the number of drug usage, prostitution, property damage, and theft. Also, this study found that if the community were strong in coordination, mutual feeling, and the community pride prior to the project, there would be the chance for the community to have the long-term social sustainability.
Jianxun’s study “Thai OTOP Campaign: Prospects and Problems: The Case of Chiangrai Province” aimed to study the OTOP within Chiangrai province on the theory of rural development and the people’s participation as well as the human resource development. It was found that although the operation of project could support the manufacturers as well as the SMEs, and create cooperation in the community while develop the human resources to solve the poverty within the community, but such objective was not completely fulfilled as it should due to the support and aid from the government. It could be said that this failed the basis concept and the project objectives, as evident in the case study of material sourcing for the OTOP project in the area which manufactured the folk liquor. The liquor was not actually produced by the folk method but follow the state’s suggestion while also use the external raw materials. Some communities produced various types of community products, which resulted in the problem of similar characteristic of products from different communities. Furthermore, the OTOP faced the problem due to the state’s intervention in all process from the organization of OTOP fairs throughout the country as well as supporting the grassroots manufacturers. While the state also focused on the support for the successful OTOP products while ignored the unpopular OTOP products. In addition, the OTOP project also failed at the basic objective of the project, which is the development of sustainable job creation in the rural economy in order to reduce the seasonal migration of labors.
Kasornbua and Namsawad (2013) conducted the research “The Competency Development of One Tambon One Product (OTOP) Community Enterprise to Small and Medium Enterprises (SMEs): A Case Study of Processed Banana Food Products Community Enterprise”, in order to study the management, marketing development, and packaging design development. It was found that the community enterprise of processed banana food products still requires the competency development in order to step up to the small and medium enterprise (SMEs) level. In terms of management, the community enterprise still lacks the agility and knowledge in management. There should be the monthly meeting to exchange opinion, and the training by the related organization or encourage the community enterprise member to study from other organizations. In terms of the distribution channel, it was found that the product of the processed banana food products community enterprise had no problem in selling.
However, there were 2 major problems. Firstly, there were many competitors for the
product of the group. And secondly, the important details in the packaging is still missing. The community enterprise should have the packaging design in order to differentiate its product as well as changing the production towards pre-order production, which would help reducing the marketing risk. And if other community enterprise wishes to develop itself into the SMEs, there should be the guideline in developing the marketing management and financial management competency.
Kurokawa, Tembo, and Velde (2010) presented the study “Challenges for the OVOP movement in Sub-Saharan Africa -Insights from Malawi, Japan and Thailand”
at the Overseas Development Institute London JICA. This research aimed to study the OVOP project within the Sub-Saharan Africa area, by comparing the effectiveness of the OVOP project in 3 countries. The research team presented the findings as following.
The Sub-Saharan Africa applied the OVOP project and focused overall at the Top- Down implementation, which prevented the area to develop the OVOP project sustainably. According to the comparative study of the OVOP project, it was found that the OVOP project in Thailand and Malawi differs from the original OVOP in Japan, as both countries focused only with solving the economic problem while ignoring the importance of social development, such as community development and human resources development. Nevertheless, the OVOP project in Thailand attempted to transfer itself towards the local community and government. While Malawi attempted to emphasis on the leadership development for the OTOP project in the community of Sub-Saharan Africa. There must be the adjustment of OVOP manufacturers’
connection to connect with the national and global chain of commerce, towards the brand creation and utilization of E-commerce according to OVOP model in Thailand as well as providing the management and financial training. Moreover, the OVOP in the Sub-Saharan Africa must develop more coordination among the network and the entrepreneurs, and finally the OVOP should note be evaluated by the sell numbers and profit but rather by the index which reflect the social development.
Mekhum (2010) presented the study “Bringing the Sufficiency Economy Philosophy into Province by the Group of OTOP Product Producers Using the Local wisdom in Nonthaburi Province”, in order to study the application of Sufficiency Economy philosophy towards the daily practice of the OTOP manufacturers who use the local wisdom within Nonthaburi province. The researcher found that the knowledge
the daily practice which would led to the success in work included the elements such as the sober household, the environmental conservation, the use of natural resource with appreciation, and the use of material available within the community. It was found that there were high levels of sober household, with the understanding of the application of sufficiency economy. Most manufacturers had the second job and the practice of household savings. As for the daily practice, it was found that most manufacturers conserved the environment and spent the resource in the sustainable way, by using the raw material carefully and economically. Most would use the raw materials available within the community and natural environment, and were aware of their usage.
Natsuda, Igusa, Aree Wiboonpongse, Aree Cheamuangphan, Sombat Shingkharat Wiboonpongseb, and Thoburn’s (2012) study “One Village One Product – rural development strategy in Asia: the case of OTOP in Thailand” aimed to study the strategy of rural development through the OTOP project in Thailand, by using the case study in the Chiang Mai province as the area of study under the framework of Endogenous development. This article presented the findings that the OTOP project aimed to solve the poverty in the rural area, but the OVOP aimed to solve the problem of migration within the trend of industrial development. The Thai OTOP attempted to raise the level of OTOP products by pushing the product quality standard through the system of giving stars to represent the product quality. The government sector also provided marketing support and loan support for the entrepreneurs. However, the marketing and financial supports were limited to the OTOP which received high level of stars. Furthermore, the OTOP project had the characteristic which the community must depend on the state in various ways and emphasis on the quantity of production rather than the product quality development. Nevertheless, the development of the housewives group in Chiang Mai province was found to generate income for the group members who were mostly elders. Hence, the OTOP could produce the social capital for the community which was the form of Endogenous development.
Pasaribu’s (2007) study “Developing of Small and Medium Enterprises for Poverty Alleviation in Indonesia: Lesson Learned from OTOP Program in Thailand”
aimed to study the concept of poverty alleviation by the OTOP project, in order to develop the SMEs and alleviate poverty in Indonesia. In this work, Sahat M. Pasaribu saw that the OTOP project did solve the poverty problem in Thailand. Since the OTOP
project was initiated, it generated income for the community both inside the country and from the international market. The Thai government had attempted to solve the poverty problem which was the result from the 1997 economic crisis by focusing on the support of product creation by the SMEs, so that the entrepreneurs and the community would gain the income from the primary product processing which the government would advocate and take care of the entrepreneur. There were also the specialists who provide consultant as well as arrange for the coordination among the local entrepreneur, the private sector, and the government. This resulted in the movement for community economy with the capacity to transfer towards the national level, which also affect the social development indirectly. In other words, Pasaribu was that the OTOP project could empower the community economy as well as alleviate the poverty problem by using the locally available resources. And Thailand also had the good databases to provide support for OTOP project, which allow those related to the project and policy to access the information easily, resulting in the effective project development. The government also organized the OTOP Champion project to develop the OTOP product quality. When Indonesia is considered, both countries are similar in many ways and therefore the OTOP project is suitable for the SMEs development to alleviate poverty problem in Indonesia.
Narongsak Pitchayapisut (2008) conducted the study about the role of the government sector and the society in “The Local Revitalization of Japan: Case Study of OVOP (One Village One Product in Oita prefecture”. This research studied the origins, characteristics, model, development, and the progress of Japan’s local revitalization as well as the OVOP: One Village One Product of Oita prefecture and the roles of various sectors towards the localization. This included the role of the state or the central government and the local government in Japan as well as the role of the society which refers to the people, group, associations, or the organizations. It was found that in terms of the Human Resource Development, the local government of Oita had the most important role as it was believed that human resource development was the most important thing for local revitalization. In terms of production, the state also played the important role, as the local government of Oita prefecture had the role of technological support and product development. Meanwhile, the society, people, and the group of associations had the role of manufacturers. And the agricultural co-op
would support the manufacturing equipment, finance, and budget. The state or the local government had the concept of non-financial support but it would give the technical support, while the central government would support the fund for the local. And the society, through the agricultural co-op had the role of financial supporter as well as the companies or shops who donate money to the local government for using with the local revitalization. In terms of marketing, the state through the local government had the very important role of finding distribution channels in various forms, through the construction of shops and companies to sale the local products, and through the public relations. The central government had the role of finding distribution channel. And the society, through the agricultural co-op would be the distribution channel in the forms of shop operated by the co-op. And other companies in Oita also provide the place for distributing products.
Wanna Prayukvong’s (2007) proposed the study “A Buddhist Economic Approach to Happiness & Capability Linkage in OTOP Craftsmen in Southern Thailand”. This research studied the Buddhist Economic approach related to the OTOP craftsmen in Southern Thailand, with the aim to study the application of local wisdom and the capacity of the craftsmen within the OTOP project, as well as observing the element and the accumulation of social capital by the craftsmen. Under the Buddhist Economic approach, the craftsmen were related to the Social Capital Index structurally, as the OTOP group members were related to the craftsmen in the administration of OTOP project. There were the communication among the members, the mechanism to solve conflict, as well as the participation in the OTOP project. And the important factor for the craftsmen in terms of the career wisdom and the enlightenment of networking were the concept about happiness which also affect the social capital index, the number of years as the group member, the family relationship with the wisdom heritage, the local leadership of the family, and the level of education. Nevertheless, the income from OTOP project was not related to the fulfilment of OTOP objectives according to the findings. The researcher thus suggested that the OTOP policy implementation must empower the society and community, apart from evaluating the product quality by giving stars according to the quality level. There should be the connection of the local wisdom towards the social capital, not only for income generation but also the empowerment of the society, the happiness of strengthening the society and
community, the pride of creating the products which are also the cultural heritage, as well as the human resource development within the community.
Shakya’s (2011) study “Understanding One Village One Product in Japan, Thailand and Nepal Agro Enterprise Centre Japan International Cooperation Agency”
aimed to compare the OVOP project in Japan, Thailand, and Nepal. It was concluded that the original OVOP project of japan had been through the continuous development for a long time. The OVOP project was developed by the community and the local government under the coordination of the community member, by maximizing the benefit from using the local resources and transfer the local wisdom towards the internationalization. The central government only provided help for the organization development and marketing support. Meanwhile, the OVOP project in Thailand became the national policy, or the national agenda, especially through the large role of the central government and the Prime Minister, by allowing the use of local wisdom to develop the products within the local community. And the various sectors were well- participated. In the researcher’s view, the OVOP project in Thailand was successful as there were 70,787 communities who participated in this project. As for Nepal, the OVOP project was also initiated as the national policy to alleviate poverty in the similar way with Thailand, with the MoAC (government program) and FNCCI (private sector) as the core players. The private sector was assigned with the marketing development, while the government sector would responsible for the product. From the researcher’s perspective, the OVOP of Nepal succeed in the development of product quality and packaging, but its development differed from the OVOP product in Japan, including the development of local leader, the local people’s skill, the problem of lacking the coordination in network, the problem of depending on the government’s budget, and the problem of marketing, especially the brand development of OVOP project.
The National Statistical Office of Thailand, Ministry of Information Technology and Communication (2007) conducted the survey of people’s opinion towards the local community products during 2007. This survey collected the information about perception and participation in the project of local community products, the usage of local community products, the manufacturing of local community products, and the union or networking to exchange knowledge with other