The business sector has pledged a more vital and active role in driving the rural economy and strengthening local communities under the Pracha Rat (People's State) initiative, with the ultimate aim of narrowing income disparity.
Thai Chamber of Commerce chairman Isara Vongkusolkit, speaking in his capacity as deputy chairman of the Pracha Rat executive committee, voiced hope that the initiative would bear fruit within a year.
Prime Minister Prayut Chan-o-cha unveiled the initiative last September to bring together the state, the people and the private sector for long-term sustainable development of the country.
The Pracha Rat strategy aims to strengthen the country's economy at the grassroots level and empower local communities and local enterprises. The strategy is in line with the government's recently approved 136-billion-baht stimulus package.
The Pracha Rat model means the people, the government and businesses must work closely together to pursue sustainable development and help farmers, workers and communities secure their livelihoods.
Under the model, the relationship between the people, the state and businesses should be "horizontal", meaning equal and supportive of each other.
The cabinet last month approved the appointment of 12 sets of public-private steering committees and the Pracha Rat executive committee chaired by Deputy Prime Minister Somkid Jatusripitak.
A total of 36 organisations from the public, civic and business sectors signed a milestone deal on Jan 13 to boost the rural economy and strengthen local communities.
Under the deal, companies such as CP All, Big C, Central Department Store, Central Food Retail, The Mall Group, Siam Makro, Tesco Lotus, Lawson, PTT and TCC Logistics & Warehouse will sell more agricultural products through their outlets.
Mitr Phol Group, Thailand's top sugar producer, will team up with the Government Savings Bank (GSB) and the Bank for Agriculture and Agricultural Cooperatives (BAAC) to support farmers in developing their businesses.
This is the first time the public, civic and private sectors have agreed to join forces to strengthen local communities and the agricultural sector.
According to Mr Isara, the key task of the public-private steering committees is to narrow income disparity, develop human resources and raise competitiveness of the local and grassroots economy.
The committees are tasked with providing education and public health access to local people.
For instance, the initiative will upgrade farm practices using technology, knowledge and zoning to boost productivity.
Zoning will be clearly divided in two: one zone for major crops such as rice, rubber, tapioca and sugar, and the other vegetables and fruits.
Farmland consolidation will be required, while new technology and machinery will be used to cut production costs and raise productivity.
The private sector, meanwhile, will provide management, marketing know-how and distribution channels.
Companies will also be encouraged to show corporate social responsibility in supporting development projects.
"From now on, the way the government works will not be like those activities in the previous government, which normally allocated some annual budget to sponsor certain development projects that were sometimes not needed by local communities," Mr Isara said.
"The present government and private sector under the Pracha Rat initiative will first talk with local communities about what they want and then the authorities will work with the private sector to develop the projects as demanded."