Connect with us

Economics

Issues for Sustainable Growth in Thailand

Governor of the Bank of Thailand Prasarn Trairatvorakul has cited social inclusion, ecology, and financial stability as three major issues that should be addressed properly for sustainable and equitable growth.

Avatar

Published

on

Governor of the Bank of Thailand Prasarn Trairatvorakul has cited social inclusion, ecology, and financial stability as three major issues that should be addressed properly for sustainable and equitable growth.

The central bank governor touched on these issues in his remarks at the Conference on Economic Transformation and Inclusive Growth in Frontier Economies on 28 January 2013 at the Grand Hyatt Erawan Hotel in Bangkok.

Thailand middle classes are becoming increasingly skeptical of the benefits of democratization

Thailand middle classes are becoming increasingly skeptical of the benefits of democratization

With regard to social inclusion, he stressed the need to create opportunities for everyone, so that people may contribute to and benefit from economic growth. In order to follow the principle of equality of opportunity, unbiased governance and a regulatory environment for businesses and the people are needed.

By realizing that everyone is endowed with different capacities, he said, a supportive policy adapted for each social group is needed. For instance, as in the case of Thailand, research studies indicate that broadening financial access and promoting financial literacy have significantly raised the country’s growth rate.

Regarding ecology, Mr. Prasarn said that Thailand heeds the lesson of how to progress while supporting environmental sustainability. After Thailand’s period of rapid development, ecological problems have become more prevalent. Concerns have been raised over the sustainability of the environment and, more fundamentally, the socio-economic well-being of the people. Today, efforts have been made to maintain the balance between the ecosystem and growth. For instance, environmental protection and sustainable development have been included as integral parts of Thailand’s National Economic and Social Development Plan since 1997.

Concerning the stability of financial system, he said, Thailand has improved its financial system, after learning the lesson of the 1997 financial crisis, which originated from large capital inflows. Legal and regulatory reforms have been made to ensure the stability of financial system. Today, Thailand’s efforts have paid off as its financial system is now resilient and in a good position to support growth.

Speaking about the development experience of Thailand, Mr. Prasarn said that Thailand’s rapid growth between the late 1970s and 1997 was the result of the structural transformation. The country moved from primary production to industrial production, mostly manufacturing and high-value agricultural products. The combination of processed agricultural products, import substitution industrialization, and export promotion was the principal feature of economic development.

He explained that moving up global production chains had elevated Thailand’s per capita income of 100 US dollars in the early 1960s to nearly 3,000 dollars after 1997. More importantly, the process has resulted in a dramatic fall in poverty and improved the living conditions of the Thai people. The rate of poverty had been reduced from 57 percent in the early 1960s to around 24 percent in 1981 and to 8 percent in recent years. Thailand’s economic development story has thus attracted broad interest from policy makers, multilateral agencies and academics.

As in most transformed economies, economic transformation is often associated with rising income inequality and depletion of resources. In 1970s, the average household income in Bangkok was 2.6 times larger than in rural areas, and by 1998 it had increased to 3.4 times. And, during the transformation period, Thailand’s forest cover rapidly depleted by nearly half.

Therefore, environmental issues should not be discarded in the desire to achieve sustainable and equitable growth, since this can lead to the deterioration of social solidarity and the natural world, he said.

via Inside Thailand — Three Issues that Need to Be Addressed for Sustainable and Equitable Growth.

Comments

Economics

Thai economy to grow 4% in 2021 following 6.5% decline in 2020

The World Bank is now expecting the Thai economy to see 4% growth this year, and a 4.7% growth in 2022, despite current challenges from the new wave of COVID-19 infections.

Olivier Languepin

Published

on

Crowded downtown area in Bangkok

The World Bank now expects that the Thai economy to expand by 4 per cent in 2021, according to the latest World Bank Thailand Economic Monitor report “Restoring Incomes, Recovering Jobs” released on Wednesday (Jan 20).

(more…)
Continue Reading

Banking

BoT sees mild impact of new COVID-19 wave on the economy

The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.

(more…)
Continue Reading

Economics

COVID-19 brings first consumer confidence drop in 3 months

Consumer confidence in December 2020 was measured at 50.1 points, down from 52.4 the previous month. Economic confidence was also down to 43.5 from 45.6 points.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Concerns linked to the new wave of COVID-19 infections has weighed on both daily life and business, resulting in the first drop in the Consumer Confidence Index in 3 months.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,609 other subscribers

Trending