Can Thailand’s political parties take us out of the middle-income trap?

[webfact]

 

By Ken Mathis Lohatepanont

In 2016, writing in the Thammasat Economic Journal, Emory University professor Richard Doner described in just a few sentences the problems that plague Thailand’s economy. 

 

Thailand had been “quick on its feet,” Doner wrote, successfully reducing poverty and achieving middle-income status. But too reliant on cheap labor and exports, Thailand’s growth soon stagnated. Quoting Somkiat Tangkitvanich and Nonarit Bisonyabut, Thailand had “industrialized without developing its own technology.” In other words, Thailand became addicted to quick and easy growth without laying the foundations for sustainable development.

 

That was written in the early years of the Prayut administation. Seven years later, Thailand’s economy remains stuck in a rut, with growth remaining sluggish and the path towards a long-term upward trajectory still unclear. 

 

Full story: https://www.thaienquirer.com/48954/can-thailands-political-parties-take-us-out-of-the-middle-income-trap/

 

-- © Copyright Thai Enquirer 2023-03-29

 

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[Will B Good]

13 minutes ago, webfact said:

Thailand had been “quick on its feet,” Doner wrote, successfully reducing poverty and achieving middle-income status. But too reliant on cheap labor and exports,

The focus is and always has been to maximise the profits of CP and the like by allowing price gouging, monopolies and cheap imported labour.........you reap what you sow.

Edited March 29, 2023 by Will B Good

[retsdon]

When your growth model is based on the availability of cheap labour it stands to reason that growth is going to falter when the labour stops being cheap. It's hardly rocket science. 

[sscc]

Hong Kong, Singapore, South Korea, Taiwan had unofficially reputed as  " The Four Tigers of Asia Economy"  since late-1980's.   By early 1990's Thailand had been tipped as the upcoming "Fifth Tiger"  and it had never materialized.     Thirty years had gone by  under with a number of Thai leaders and government administrations in 3 decades ( not just Prayut government of 8 years). 

 

There are a combination of  deep-root reasons why Thailand did not make the economic leap   ( too long and complicated to bother explaining ) 

 

 

 

 

 

 

 

[Longwood50]

Wealthy countries always produce things of value.  Look at where products are made.  The USA, China, Germany, Japan, South Korea, etc.

They take raw materials, add value and sell it. Poor countries sell for the most part natural resources and commodities.  Rice, rubber, coffee, pineapples, etc. 

The one exeption is the oil producing countries.  

The lesson is, if you want to increase the standard of living for your country, the country needs to encourage manufacturing to locate in the country and employ the people. 

That is a two step process.  First, having sufficient workers with the requisite skills to support the manufacturing.  No company is going to locate here if it believes the country lacks sufficient workers with the skill to produce its products.  Second, you have to "encourage" not discourage manufacturing.  That means favorable rules on the construction, operation, and taxation of businesses that locate here. 

Money flows where it is treated well.  Just look at Singapore and Hong Kong.  They learned long ago that being business friendly make their countries prosperous.  China more recently learned that lesson. Unfortunately the USA has forgotten what made it the leading economic power in the world. 

 

[SoilSpoil]

First step is to eradicate (police) corruption. A corrupted society will never share its wealth. Revolution is needed, because the present lot of oxygen thieves will want to keep the present status quo

[dinsdale]

Can Thailand’s political parties take us out of the middle-income trap?

Interesting. Top 5% own how much. 90%+ of Thailand's wealth. What % are in poverty?  Reduction of poverty? Well I'm guessing the lockdowns increased poverty substantially. As for political parties it's all about filling their own and their mates pockets.  Fairly sure there would be 10's of millions who would love to be in a middle income trap. Headline seems to defy reality.

[worgeordie]

Keep the population poor , dumb ,and compliant , that's what the 

powers that be want , if they worried about the population they

would have done something about the road carnage ,and annual

burning , but every year it's the same , nothing changes .

 

regards worgeordie

[Will B Good]

14 minutes ago, worgeordie said:

Keep the population poor , dumb ,and compliant ,

....and to be fair they've done a cracking job of it.

[dinsdale]

Corruption top to bottom depends on a compliant society. Compliancy is taught through so-called cultural and religious education. 

[Eric Loh]

Will need a visionary leader, political stability and investment in human capital. All 3 conditions are needed if Thailand wish to escape the middle income trap. 

[BritManToo]

"Can Thailand’s political parties take us out of the middle-income trap?"

 

Shouldn't the title be 'them', as most of 'us' aren't allowed to work here?

[hotchilli]

6 hours ago, webfact said:

In 2016, writing in the Thammasat Economic Journal, Emory University professor Richard Doner described in just a few sentences the problems that plague Thailand’s economy. 

The political choice?

I've done it in three words.

[OneZero]

5 hours ago, sscc said:

 

 

There are a combination of  deep-root reasons why Thailand did not make the economic leap   ( too long and complicated to bother explaining ) 

 

 

 

 

 

 

 

I agree, long explanations would be necessary to properly explain it all to the uninitiated.  Then those long explanations would be debated, argued, criticized.  I'll give you the short answer:

 

Historical Patronage* culture (starting at the top - the very very top) supporting Corruption. 

* In this system, the patrón holds authority and influence over a less powerful person, whom he protects by granting favors in exchange for loyalty and allegiance ...(ie, keeping your mouth shut). 

 

 

 

[Enoon]

 

The decision is not in the hands of political parties.

 

It is a "philosophical" decision to maintain Thailand as a primitive society.

 

Other "agencies" are responsible for that.