Isan - Economy

Economy

Agriculture is the largest sector of the economy, generating around 22% of the Gross Regional Product (compared to 8.5% for Thailand as a whole). Sticky rice, the staple food of the region, is the main agricultural crop (accounting for about 60% of the cultivated land). It thrives in the poorly drained paddy fields, and where fields can be flooded from nearby streams, rivers and ponds, often two harvests are possible each year. Farmers are increasingly diversifying into cash crops such as sugar cane and cassava (manioc), which are cultivated on a vast scale, and to a lesser extent, rubber. Silk production is an important cottage industry and contributes significantly to the economy. The long, narrow fertile province of Nong Khai Province, which stretches along the Mekong River, is also noted for the production of pineapples, tobacco (which is dried, cured and shredded by the families before collection by the cigarette manufacturers) and tomatoes, which are grown on an industrial scale, particularly around the town of Sri Chiang Mai.

Despite its dominance of the economy, agriculture in the region is extremely problematic. The climate is prone to drought, while the flat terrain of the plateau is often flooded in the rainy season. The tendency to flood renders a large proportion of the land unsuitable for cultivation. In addition, the soil is highly acidic, saline and infertile from overuse. Since the 1970s, agriculture has been declining in importance as the trade and service sectors have been increasing.

Very few farmers still use water buffalo rather than tractors. Nowadays, the water buffalo are mainly kept by almost all rural families as status symbols. The main piece of agricultural equipment in use today is the 'rot tai na' (Thai: รถไถนา, lit. "vehicle plow field") colloquially referred to as 'kwai lek' (Thai: ควายเหล็ก, or "iron/steel buffalo"), or more generally by its manufacturer's name of "Kobota", a mini tractor comprising a small diesel engine mounted on two wheels with two long wooden or metal handlebars for control and steering. It is usually attached to a trailer or a plow. Buffalo are now mainly used for grazing on the stubble in the rice paddy, which they in turn fertilize with their manure. The main animals raised for food are cattle, pigs, chickens, ducks and fish.

Isan is the poorest region of Thailand: in 2002 average wages were the lowest in the country at 3,928 baht per month (the national average was 6,445).

The region's poverty is also shown in its infrastructure: eight of the ten provinces in Thailand with the fewest physicians per capita are in Isan (Sisaket has fewest, with one per 14,661 in 2001; the national average was 3,289); it also has eight of the ten provinces with the fewest hospital beds per head (Chaiyapum has fewest, with one per 1,131 in 2001; the national average was 453). Nevertheless, as in the rest of Thailand, all districts (Amphoe) have a hospital, and all sub districts (tambon) have a clinic providing primary health care. The introduction of the "30 baht" health card has dramatically changed the numbers of those attending hospitals for treatment, as it has meant that full health care is available to all who register for only 30 baht per visit. The few who can afford it travel to the modern private hospitals and clinics in the large cities for non-urgent specialist consultations and care.

The region also lags in new technology: there was only one Internet connection per 75 households in 2002 (national average one per 22 households), but by 2006 every district town (amphoe) had at least one publicly accessible internet connection, either in the local computer shop or in the district office. Extension of landline telephones to remote areas not previously served has been largely superseded by the use of cell phones, primarily of the GSM format, which now covers the entire region with the exception of a few sparsely populated mountainous areas and large national parks. Many people, even the poorest and frequently also children, have cellular telephones, although they have no fixed-line telephone. In this sense, Isan has led advanced nations where land-line service is now being superseded by cellular technology. The region also has the lowest literacy rate when compared with other regions in Thailand. By the beginning of 2008, most of the amphoe (district towns of the provinces) had been provided with ADSL by the TOT, still leaving, however, the vast majority of the rural population dependent on dial-up connections for those few who have land-line telephones. This of course provides a very slow service that does not adequately meet modern data-hungry internet services. In reality, most rural people rely on smart phones for data services. Internet shops with high speed connections have for many years now provided a service for people who cannot afford or do not have access to high speed internet. They are heavily patronized by primary and secondary schoolchildren who come not only to use the Internet but also to play on-line games, use VOIP, or just to use the computer and printing facilities. An increasingly significant number of customers in the Internet shops, particularly in the cities, are young ladies who enjoy the many dating sites on offer. Resident Western expatriates, and foreign tourists are also frequent customers. The price of internet services at these shops is very competitive - 30 Baht / $1 per hour not being atypical. For those outside the district towns who require a serious use of the Internet in their homes, the mobile phone or an iPstar broadband satellite connection is the only alternative; although very much more expensive than a DSL connection. It is far less reliable and suffers considerable down-time due to overloading, heavy cloud cover, and rain. Despite - in theory - being ‘always on’, it often lacks adequate stability for streaming and clarity of VOIP.

Many Isan people seek higher-paying work outside the region, particularly in Bangkok. Some of these people have settled permanently in the city, while some migrate to and fro. Others have emigrated in search of better wages. Rather than relocate as a family, they usually leave their babies and school-age children in the care of relatives, friends or neighbours.