The Economic Policies of Political Parties Reflect the Vision of Political Leaders

Thailand is a small country in terms of the world economy, though globalisation compels Thailand to become aware of its need to participate in worldwide systems. Thailand’s economy makes this essential considering the fluctuation and impact of evolving economic situations, as well as the policies of trade-partner countries that must be faced.

The economic policies of visionary leaders are crucial to successfully lead a country into economic vitality and especially stability at this juncture. The world economy lacks stability, in particular to solve wide-ranging economic problems that are current. For Thai people, immense expectations are placed in the ability of any new Government to create economic stability. This is so even with obstacles critically in the way and risks incurred to challenge the future of the Thai economy. The export sector, that important engine that drives the economy, is greatly hindered by non-tariff barriers, for example.

Globalisation strengthens the link between social standards and general economic issues. For example, the implementation and maintenance of environmental and labour standards will help a country improve its exports, whilst the lack of such standards will hinder it in selling products and services. Thailand depends on other countries for international trade and if the world’s changing standard for products and services is not dynamically improved, it will become increasingly difficult to export. Entrepreneurs need to adapt themselves to these new global conditions and the Government should instigate a policy to support domestic entrepreneurs and national benefits.

In my lecture, entitled, ‘The Impact of Globalisation on the Thai Economy,’ delivered on November 28th 2007 at the invitation of the Industrial Estate of Thailand, at a seminar, ‘Overcoming the crisis . . . a strategy to deal with Thai exports in 2008,’ I spoke about the concept of Thai entrepreneurs stipulating economic policies on future issues by refusing to accept policies that will negatively affect them, especially the solution of non-tariff barriers. Rather than tackle problems only at a very obvious stage, leaders who refuse to accept policies that will negatively affect them try to act promptly in order to solve issues. They will not ignore problems or wait for resolution. In one case, Thai shrimp farmers asked their Government to help them in their difficulties with the US Government. The Shrimp Association of Louisiana had asked the US Government to review its anti-dumping policy and cut off GSP for Thai shrimps on the grounds that the Thai shrimp industry uses child labour. This was a sign that the USA was attempting to hinder the import of Thai shrimps because previously Thai entrepreneurs had been required to pay anti-dumping tax and C-bonds to the US Government. In this type of situation, first-class leaders would try negotiation with the US, whilst adhering to world-wide regulations, thus allowing Thailand greater opportunities to resolve the conflict and improve on this important export. However, Thailand’s leaders have not usually conducted economic business using this strategy. They have accepted and followed the regulations set by other countries, accepting the impact and attempting to solve the problem until it is almost too late.

Good national leaders show diplomatic decorum in line with global rules, bravely arguing with other countries on the world-stage, negotiating for proper regulatory powers and preventing their country from being intimidated. A good leader estimates carefully, and persuades other nations to agree to an outcome of common benefits with the least damage to all.

World economic situations change rapidly, especially concerning product standards. Thai leaders require foresight to anticipate procedures that Thailand must implement for gaining economic advantage over other countries, and these will be standards that one can easily and readily address. The government should introduce pro-active policies based on the anticipation of precise standards, especially standards already being upheld by trade-partner countries, such as the USA and the EU. Thailand’s standards can thus also be improved in the same direction.

If anticipating and improvng product standards is effected too early, high production costs could result and the Thai economy will be unable to compete with other countries. It is essential to negotiate with other countries so that product standards improve at a common rate. All future production of Thai goods could involve the inclusion of components produced in other nations, particularly from neighbouring countries. It will be imperative for Thai commerce to exert pressure on such external suppliers in order to attain acceptable production standards where the resultant quality of the final Thai goods is not compromised in any way.

Unfortunately, Thailand still lacks politicians who have long-term vision. Most politicians consider only immediate issues in order to win elections, particularly those involving the politics of their local area. They are politicians who denigrate people by giving them narrow, short-term, immediately gratifying policies, not appreciating that the world has leapt forward. It is time for us to look ahead and use our intelligence by voting for politicians who know what they are doing, and who know how to govern a country with vision.

Dr Kriengsak Chareonwongsak
Senior Fellow, Harvard Kennedy School , Harvard University
kriengsak@kriengsak.com, kriengsak.com, drdancando.com