Nakornthorn Bank

Project Areas:

 Hua Krok village in Paak Chong district, Nakhon Ratchasima Province.

The Project:

 Nakornthon Bank's involvement in community development began when Mr. Mechai Viravaidya gave a speech to the Bank in 1989 in accordance with the Chief Executive Officer's wish for the Bank to be involved in a project that would benefit Thai society. Following this the CEO requested the Bank's officers volunteer to work in rural development and since then the Bank has had a standing committee which is sponsoring a village that needs help and has potential for development.

The Bank's task force drafted a three year working plan for the village, since expanded to 5 years. These plans include the provision of basic needs (water for both drinking and irrigation, toilets), generation of primary income, generation of supplementary income, provision of training in marketing and provision of other assistance (a savings group, a child-care centre, a reading centre and temple improvements), as well as coordination and monitoring.

The Bank task force found that to develop the village they had to develop the people first and win their trust. At first the villagers accepted what was offered, but later the task force urged them to participate in each project and consult with the full time village coordinator employed by the Bank. By the time the project is finished the task force members expect the villagers to be able to manage the projects themselves.

The villagers' main income comes from growing corn, soybeans and custard apple, for which the bank lends money for the purchase of seed at less than one quarter of that being offered by money lenders. This is also without collateral, as rarely do the villagers have title or deeds for their land. To counter the lack of collateral the Bank helped the village set up a committee to screen and guarantee the loans. When it became too dry to grow these crops, the Bank encouraged the farmers to raise cows and once again provided loans to enable the purchase, but also arranged for the Dairy Promotion Organisation of Thailand to accept the villagers as members. The Bank also arranges for the villagers to visit other areas to observe a variety of alternative income generating activities, and has arranged for sewing classes for the women.

Before this project started, it was estimated by the Ministry of Public Health that each villager earned less than 10,000 Baht per year. Now they earn around 24,000 Baht per year. In addition, a health care fund under the supervision of a doctor has been established, there is a day care centre for 55 pre-school children as well a a reading centre with a range of agricultural magazines and references. The Bank has also donated 33 water storage jars, 100,000 Baht to renovate the temple and another 100,000 Baht for a new crematorium.

 

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Adapted from "Business for Development, The HRD Approach of the Thai Business Initiative for Rural Development." United Nations Economic and Social Commission for Asia and the Pacific