The philosophy of sufficiency economy is the philosophy that guides the way of living for people in every social level, starting from family, community, to nation level. It involves national development and administration according to the middle way practice and focuses on economic development in order to catch up with globalization.

Sufficiency means moderation, reasonableness, as well as immunity to both external and internal changes in which wisdom, prudence, and carefulness will be required in using knowhow for planning and executing in every step. Meanwhile, it is necessary to enhance the mental health foundation of national population, especially for government officers, theorists, and businessmen in every level, in order to let them become aware of moral principle and honesty with suitable knowledge possession, as well as living with tolerance, diligence, wisdom, and carefulness to be balanced and ready to deal with the swift changes in material, social, environmental, and cultural aspects occurring from external environment (quoted and abstracted from the royal words of King Bhumibol Adulyadej with respect to sufficiency economy, according to the letter number 0003/18888, dated 29 November B.E. 2542, the Office of His Majesty Principal Private Secretary, the Grand Palace, Bangkok). The structure and component of the philosophy of sufficiency economy can be presented in the figure below.

Figure: The Middle Way Practice According to the Philosophy of Sufficiency Economy

The sufficiency economy employs 5 principles which are:

1. The middle way of living can be applied to family, community, and national level, as well as to every economic system.

2. The balance among individual, society, environment, and economic system. It includes the balance of production and effective utilization of existing resources.

3. The sufficiency in production and consumption based on reasonable sufficiency, not too difficult, and not extravagant in using natural resources and technologies.

4. The immunity in living, being healthy, being potent, possessing problem solving skills, and suitable knowledge, as well as being able to deal with internal and external changes.

5. Being modernized, knowledgeable, cautious, patient, diligent, and having consciousnesses in virtue and honesty.

The philosophy of sufficiency economy can be applied in various aspects such as in living in family, community, society, and in occupation. It will reduce the risk that may occur. In occupation, it is necessary to study and apply the philosophy as follows.

1. Moderation: this can be applied by considering whether one’s knowledge, capability, fund, labor, ability to find material, tool, and equipment are moderately sufficient or not; for example, farming a 30 Rai rice alone might not be considered as moderately sufficient. Therefore, it is necessary for one who takes up an occupation to consider the appropriateness by himself.

2. Reasonableness: occupational development requires reasonableness. The task involves a process of careful thinking based on reliable source of information; for example, in expanding the cultivating area for dry season rice, a confirmation from related parties is required whether there is sufficient amount of water to do so or not, or some unnecessary expenses might be found after analyzing the income statement.

3. Immunity: self immunity will help solve problems that may occur in the future such as crop guaranteeing, finding market for the product, and recruiting labors in advance.

4. Knowledge Condition: the entrepreneur must analyze himself to see whether he possesses sufficient skills in the issue that he wants to develop or not; for example, if one wants to turn himself to an organic agriculturist because not only it is safer towards oneself, consumer, and environment but it also has a better price, he will have to learn how to grow crops without using chemical fertilizer and learn how to make different types of organic fertilizer such as composed fertilizer, biofertilizer, and green manure to replace chemical fertilizer.

5. Integrity Condition is also an essential condition necessary for sustaining an occupation. The entrepreneur must be honest, diligent, and patient; for example, he must not put any contamination in the product, and must not cheat at the weight measurement, all of which will create credibility towards customers and thus more products can constantly be sold.