Local Governance for the Development of Community Economy: The Case Study of the Group Operating Community Rice Mill in Nongbua Sub-district, Kosumpisai District, Maha Sarakham Province

Abstract

This article aims to 1) study governance approaches of the group operating community rice mill and the role of Nongbua Sub-district Administrative Organization in supporting local economy; and 2) study success factors in operating the group. The qualitative methods were adopted by this study including the review of relevant documents, interviews and focus group. The study found that rice mill governance compounded with 2 components: 1) to be formed by the community, and 2) to be engaged by the local government. Regarding the formulation by the community, it firstly demanded for the subsidy from the related public sector. Secondly, the community mobilised the capital through the household investment as share holders. Thirdly, there were active committees. Fourthly, there was a systematic governance mechanism. Fifthly, there was a committee that was responsive in checking and balancing the rice mill operation. As regards the role of the local government, it scaled up the rice mill from 'rice mill of the community' into 'rice mill of the sub-district', and provided financial support continuously to the group. About success factors of the operation, it firstly was driven by the attempt to handle collective problems based upon local community itself. The second factor was the active participation of the local government in supporting the operation. The third factor was the existence of the community rules that guided the management. The fourth factor was the acceptance and regular adjustment of key persons for driving the rice mill. The fifth factor was the existence of check and balance system in community rice mill operation. The sixth factor was the transparency in its operation. The seventh factor was the participation of the members of the group operating the rice mill. The eighth factor was the trustworthiness and altruistic mind that concerned the common interests of all members.