Known locally as Isan, NE Thailand is in many ways distinct from other parts of the country (Maneenetr, 2007). Isan’s culture has much in common with that of the nearby countries including Lao People’s Democratic Republic (Lao PDR), Cambodia and Vietnam. NE Thailand is the most traditional part of the country and locals preserve their indigenous knowledge as part for their daily lives, thus generating an important source of income for the families and contributing significantly to the economy (TAT, undated b). NE Thailand economy is small
64 and has had limited economic expansion. According to NESDB (2013c), in 2011 the gross regional product (GRP) at current market prices was THB 1,114,945 million ($36,562 million), contributing 10.03% of the country’s gross domestic products (GDP) of THB 11,120,518 million ($364,674 million). Agriculture, manufacturing and trade are the major economic sectors accounted for 21.69%, 20.19% and 10.63% of GRP, respectively. NE Thailand plays a leading role in the domestic agricultural productions, however, its productivity is low (NESDB, 2011c). Income per capita of NE Thailand people is the least in the country (NESDB, 2013c) and an average annual income of NE Thailand farmer in 2009 was THB 12,824 ($373.5) per year, less than half of the average farmer’s income in Thailand (NESDB, 2011c).
With regard to its demographic structure and consistent with the nation’s population structure changes, NE Thailand is becoming an ageing society (NESDB, 2011c). An increase in the proportion of the population that are elderly and a decrease in the younger population and workforce have resulted in lower labour productivity and potentially on increase future public expenditure (NESDB, 2011a). Besides, NE Thailand society has experienced more problems in family and life insecurity (NESDB, 2011c). For example, violence has prevailed when conflicts have arosen within the family. More children have been neglected since more parents have divorced (DOPA, 2013). Thus, in recent years, an increase in criminal cases, especially illegal drug arrests have been reported (NESDB, 2011a; NESDB, 2011c). Furthermore, although the government provides free education through upper secondary school to all Thais, NE Thailand labour force is poorly educated, especially farmers (NESDB,
65 2011c). Most farmers graduate with primary school education. They have to leave school early for farm works. Moreover, some disadvantaged groups have lacked access to social services (NESDB, 2011c).
In 2011, agricultural land covered 102,156 km2 or 60.5% of the regional area while non-agricultural land had covered 39,141 km2 or 23.2% of the total land area (OAE, 2013). Irrigated land covered 13,760 km2 (DWR, 2010) and accounted for only 8.1% of the total land area or 13.5% of the agricultural land. In addition, soil in the region is mostly sandy and infertile. There are substantial deposits of underground potash and rock salt, resulting in a large proportion of saline soil which unsuitable for cultivation (NESDB, 2011c). Sandy soil retains very little water; therefore, a deficiency in water supply is the main problem of the region (Sneddon, 2003; NESDB, 2011c).
NE Thailand is located in the Lower Mekong River Basin. Rice is the most important agricultural product of the region in terms of the ratio of land area used, the quantity and value of output, and contribution to people’s subsistence as the main diet (Chinvanno, 2008a). In 2011, NE Thailand rice cultivation covered 68,412 km2 and accounted for 67.0% of the total regional agricultural area or 61.1% of the country’s total paddy fields (OAE, 2013). Most rice is grown under rain-fed conditions as the irrigated land area is limited, accounting for 13.5% of total agricultural area (DWR, 2010; OAE, 2013).
66 3.3.3 The Northeast Regional Development Plan (2012-2016)
NESDB (2011c) designates the NE Thailand’s role within the national economy as the domestic producer of food and renewable energy crops; industrial manufacturer; Indochina gateway; and archaeological, Khmer civilisation, cultural and natural attractions.
NE Thailand is a major agricultural base for production of food and renewable energy sources of the country. The regional agricultural land accounts for 42.8% of the country’s agricultural land area (OAE, 2013). Main agricultural commodities are rice, cassava, sugar cane and maize; these products are mainly used as raw materials for food and ethanol manufacturing in the region. NE Thailand is the largest producer of rice and cassava in Thailand, and provides up to half of domestic productions (OAE, 2012). With regard to renewable energy, there are currently 18 ethanol factories operating across the region with total capacity of 4.8 million litres per day, accounting for approximately 40% of total domestic productions (NESDB, 2011c).
In addition, the region is beginning to emerge as the country’s manufacturing hubs for electronics, automobiles and electrical appliances. The major supporting factors of the shift of the production bases from the Central and Eastern regions to the Northeast are mainly due to the improvement of transportation networks and abundance of labour forces in the region with the attendant low cost of production (NESDB, 2011c).
67 NE Thailand can accomplish and take advantage from the economic cooperation with neighbouring countries under the Greater Mekong Subregion (GMS) Economic Cooperation Program. In 2012, member countries of the GMS agreed to draw up a $50 billion pipeline of potential projects under a new Regional Investment Framework (RIF), including investments in railways, power supply, agricultural programme and environment programme biodiversity conservation corridors initiative to be made over the next decade (ADB, 2013). Ensuring preparedness to response to these developments, NE Thailand is constructing customs checkpoints, border economic centres, and border crossing facilitation in border cities including Mukdahan, Nong Khai, Nakhon Panom and Ubon Ratchatani provinces (NESDB, 2011c).