By WICHIT CHAITRONG
THE NATION ON SUNDAY
Pattaya
Thailand could lose its leadership role in Asean due to sour relations with neighbouring countries and internal political conflicts, experts have warned.
Speaking at the "Thailand Second Lecture" hosted by Nida Business School, former finance minister Somkid Jatusripitak expressed his concern about the country's image in both international politics and economic affairs.
"Our efforts should not be at a daily retaliation," said Somkid referring to the current sour relationship with Cambodia.
He said the country runs a high risk of losing credibility in the eyes of the world because of its self-defeating politics.
He lamented that while street politics had strengthened and caused deep social divisions, formal politics had weakened. "Nobody can guarantee that the next street protests will not lead to more violence," he said. Public confidence in the administration also has declined as people were starting to wonder how long the government would stay in power, he said.
The coalition government, led by the Democrats, has failed to centralise command and direct the path of development. Its efforts are aimed at day-to-day survival. So the government has no strategic plan for long-term development. Nor could it put the right people in the right jobs, he noted.
The government has to reinforce public confidence in the administration or it could plunge further, he warned.
He was concerned that the country could lose its leadership role in Asean and in the international community. He suggested that Thailand should stay close to emerging economic superpowers such as China, India and Australia. The country also needs to deepen its relationship with the United States.
"While global geopolitics have changed with the G-20 emerging as the new mechanism for global cooperation, Thailand has to position itself to fit into the new landscape, he suggested.
Somkid voiced concern about the long-term economic development of the country as the government was more preoccupied with short-term economic recovery. He said that though the government had no clear plan for economic restructuring, it planned to borrow a massive Bt800 billion. He warned that such large borrowings could destabilise the fiscal position due to the sharp rise in public debt.
Meanwhile, former foreign minister Surakiat Sathirathai shared Somkid's view that Thailand did not have a good relationship with its neighbours Burma, Laos and Cambodia. "When public opinion embraces nationalism, it is very difficult for the government to manage foreign policy," warned Surakiat.
He said that Thailand had a long history of being a friendly country and had many times been chosen as a venue for peace negotiations between conflicting outside parties.
He said that now foreigners, Thais and academics are confused about what is happening in the country. He pointed to an obscure legal system, such as laws and regulations related to the environment, which had led to conflict between local people and investors at the Map Ta Phut Eastern Seaboard industrial complex. While investors insist that they follow the rules for reducing pollution emission, local people do suffer from aggregate pollution. "We should ask how to develop our country without any harmful impact on the health of the local people, instead of engaging in a dispute on who does or does not follow the environment rules," said Surakiat.
Finance Ministry permanent secretary Sathit Limpongpan, said economic development and environment protection had to go hand-in-hand. The country cannot only opt for high economic growth. Economic development should also address issues such as the disparity of incomes among different groups.
Bandid Nijathaworn, Bank of Thailand's deputy governor, said economic recovery has been obvious, but it is still under the water. The momentum of recovery has been spurred by government spending, but sustainable recovery also needs private investment, he cautioned.
"The fragile recovery has to be supported by easing monetary policy. When solid recovery is achieved, the monetary policy would be back to normal [increasing policy rate]," he said.
"The more serious issue is our long-term competitiveness: we must not miss the train [of economic progress]," said Bandid.
Emerging economies are likely to spend more money as they have been less affected by the global financial crisis, he said.
The G-20 may not be able to push for real solutions due to the group's expansion. Since Thailand is not a member of the G-20, the country's role may reduce.
The country has to have a close relationship with emerging economies, he suggested. Domestic demand will be the next engine to drive world economic growth, in particularly Asian domestic demand, according to Bandid.
"Our challenge is how to be a part of the growth story," he said. He went said rewards will be high if Thailand behaves well but penalty would also be severe if the country behaves badly.
The Bank of Thailand has to stabilise the economy not only looking at the inflation threat but also strengthening financial institutions. He was optimistic about economic prospects, saying that exports to Asia had increased. He expected more Asian tourists to follow. Capital was also expected to flow into direct investment, stock and bond markets.
The central bank also aims to promote micro-finance and financial services to lower-income groups.
Speaking at the "Thailand Second Lecture" hosted by Nida Business School, former finance minister Somkid Jatusripitak expressed his concern about the country's image in both international politics and economic affairs.
"Our efforts should not be at a daily retaliation," said Somkid referring to the current sour relationship with Cambodia.
He said the country runs a high risk of losing credibility in the eyes of the world because of its self-defeating politics.
He lamented that while street politics had strengthened and caused deep social divisions, formal politics had weakened. "Nobody can guarantee that the next street protests will not lead to more violence," he said. Public confidence in the administration also has declined as people were starting to wonder how long the government would stay in power, he said.
The coalition government, led by the Democrats, has failed to centralise command and direct the path of development. Its efforts are aimed at day-to-day survival. So the government has no strategic plan for long-term development. Nor could it put the right people in the right jobs, he noted.
The government has to reinforce public confidence in the administration or it could plunge further, he warned.
He was concerned that the country could lose its leadership role in Asean and in the international community. He suggested that Thailand should stay close to emerging economic superpowers such as China, India and Australia. The country also needs to deepen its relationship with the United States.
"While global geopolitics have changed with the G-20 emerging as the new mechanism for global cooperation, Thailand has to position itself to fit into the new landscape, he suggested.
Somkid voiced concern about the long-term economic development of the country as the government was more preoccupied with short-term economic recovery. He said that though the government had no clear plan for economic restructuring, it planned to borrow a massive Bt800 billion. He warned that such large borrowings could destabilise the fiscal position due to the sharp rise in public debt.
Meanwhile, former foreign minister Surakiat Sathirathai shared Somkid's view that Thailand did not have a good relationship with its neighbours Burma, Laos and Cambodia. "When public opinion embraces nationalism, it is very difficult for the government to manage foreign policy," warned Surakiat.
He said that Thailand had a long history of being a friendly country and had many times been chosen as a venue for peace negotiations between conflicting outside parties.
He said that now foreigners, Thais and academics are confused about what is happening in the country. He pointed to an obscure legal system, such as laws and regulations related to the environment, which had led to conflict between local people and investors at the Map Ta Phut Eastern Seaboard industrial complex. While investors insist that they follow the rules for reducing pollution emission, local people do suffer from aggregate pollution. "We should ask how to develop our country without any harmful impact on the health of the local people, instead of engaging in a dispute on who does or does not follow the environment rules," said Surakiat.
Finance Ministry permanent secretary Sathit Limpongpan, said economic development and environment protection had to go hand-in-hand. The country cannot only opt for high economic growth. Economic development should also address issues such as the disparity of incomes among different groups.
Bandid Nijathaworn, Bank of Thailand's deputy governor, said economic recovery has been obvious, but it is still under the water. The momentum of recovery has been spurred by government spending, but sustainable recovery also needs private investment, he cautioned.
"The fragile recovery has to be supported by easing monetary policy. When solid recovery is achieved, the monetary policy would be back to normal [increasing policy rate]," he said.
"The more serious issue is our long-term competitiveness: we must not miss the train [of economic progress]," said Bandid.
Emerging economies are likely to spend more money as they have been less affected by the global financial crisis, he said.
The G-20 may not be able to push for real solutions due to the group's expansion. Since Thailand is not a member of the G-20, the country's role may reduce.
The country has to have a close relationship with emerging economies, he suggested. Domestic demand will be the next engine to drive world economic growth, in particularly Asian domestic demand, according to Bandid.
"Our challenge is how to be a part of the growth story," he said. He went said rewards will be high if Thailand behaves well but penalty would also be severe if the country behaves badly.
The Bank of Thailand has to stabilise the economy not only looking at the inflation threat but also strengthening financial institutions. He was optimistic about economic prospects, saying that exports to Asia had increased. He expected more Asian tourists to follow. Capital was also expected to flow into direct investment, stock and bond markets.
The central bank also aims to promote micro-finance and financial services to lower-income groups.
9 comments:
“Greed will cause others to disrespect you.” I think Thailand learned the hard way. Stay away from Khmer's land and you never any see problem.
get the fuck off our land you fucking dumb siems
Abhisit just a kid lern how to walk and talk, will make his own country face down. That's the great thing he can do.
Hey Thais, it looks like your (gay/play) boy Abhisit is having a huge leadership problem. He messes up with a lot of nations. During the recent ASEAN summit in your country, only five out of ten leaders showed up at the opening ceremony - a record low attendance!
Thailand is really a disgraceful nation.
To us Cambodia, Thailand never a country with respect. They had claim its country as a roll model or long term democracy but right now it is showing it true face that just like pretending to be a good neighbor with Cambodia. Thailand has been insulting Cambodia so many years and insulted Khmer's sovereignty and integrity.
I'm really shameful to be Thai. We have taken so many lands from Cambodia and lately we are still being GREED with ourselves that has been twisting, manipulated with the history. Do we all remember even the city (Bangkok) was also belong to Cambodia. We have taken almost like 90% of Khmer's land and never found ourselves to be enough with this GREED.
Professor from Thamasat.
Ignorance to be arrogant, stubborn, manipulative and exploiting the less fortunate will lead this land of Tai to destruction. No one is proud of Tai land.
harmony cannot and will coexist with ignorance.
The Thais are a bunch of loonies ultra-nationalists...What is the matter with them??? It's true that Cambodia do not have economic experts, that's why Samdech Hun Sen imports foreign know-how like Lee Myung Bak and now Thaksin. The Thais are ingrateful bastards who owe so much to Cambodia for the past 800 years. They are imperialists who can not exert control beyond their borders...Instead of fostering fraternal friendship between our two peoples (Khmer-Thai) which share so much in common, they choose the wrong path to self-destruction and humiliation. In the eyes of the world, they are indeed a crazy disturbed people...
To Hun Sen (Leader of the Cambodian People's Party Hun Sen Khmer Rouge Regime)
Since you and the CPP assassinated, executed, killed and murdered jurnalists, political opponents, leaders of the free trade union, innocent men, innocent women and innocent children;
Do you have any plan to assassinate the Thai prime minister (Abhisit Vejjajiva)?
Are you going to send Brigade 70 (Hun Sen's Death Squad Unit) to assassinate the Thai prime minister (Abhisit Vejjajiva)?
Is it true, you only kill your own peoples, you will not kill Thai and Veitnamese peoples that cannot get enough of our land?
Is it true, you only kill innocent Khmer peoples with no weapon in their hands?
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