The Japanese ‘One Village One Product' (OVOP) movement is spreading throughout Asia including Thailand, China and Cambodia. As part of the Aid for Trade initiative, the Japanese government initiated the OVOP Campaign. In addition, the government is expanding assistance to Africa. However, critics argue that the sustainability of the movement is heavily dependent on government intervention. Therefore, the movement declines in proportion to the reduction of the government interventions.
In this paper, we examine the effectiveness of the Thai ‘One Tambon One Product' (OTOP) movement, which started in 2001 under strong government initiatives. We identified three characteristics of the movement by studying specific case studies. First, the movement is completely different from the Japanese prototype, OVOP. The movement is a government policy not an endogenous movement. The Thai government plays an important role in human resource development. Second, OTOP is widely accepted by the five star grading products championship system. Earnest efforts in product development have resulted in quality products. Third, the OTOP movement is strongly assisted by information and communication technology including web site based marketing and technology exchange. This reduces the information linkage costs and a village firm maintains a sustainable competitive advantage.

JEL Classitication: R58