World Bank Praises Thai Economic Growth

[george]

World Bank praises Thai economic growth and investment environment

BANGKOK: -- The head of the World Bank in Thailand has praised the Thai economic growth.

He said the country had developed a more promising investment atmosphere than either India, or Brazil.

Thailand’s economic growth had been impressive and the country’s investment environment internationally renowned, the World Bank's Director for Thailand, Ian Potter, told a seminar in Bangkok on Friday.

Thailand ranked after Malaysia but ahead of India and Brazil, according to the World Bank’s two-year economic survey of 50 countries.

But the World Bank director warned Thailand that government red tape and the country's bureaucratic culture could hinder investment growth.

Thailand should improve its workforce’s foreign language and computer skills, he suggested.

It is difficult to maintain an impressive economic growth rate in the face of competition from other countries, especially the emerging East European nations, where the costs of investment are relatively low, he warned.

Meanwhile, a senior economist at the World Bank said Thailand still lacked enough professional workers and basic infrastructure.

Thailand needs to improve its capacity to compete with other nations by relaxing its tough government regulations, which have proved a significant obstacle to foreign investment, he said.

Bangkok’s investment environment is far more encouraging to foreign investors than other parts of the country, he said.

Half of Bangkok’s businesses use the Internet and information technology (IT), compared to only 30 percent of Thai companies in the South and the Northeast, he said.

Thailand must improve the ability of its workforce even though it is likely to push up capital costs by 15 percent.

The country needs to improve in several areas to stay competitive in the view of foreign investors, the Deputy Secretary General of the National Economic and Social Development Board (NESDB), Arkhom Termpittayapaisith said.

''We need to do more to increase the country’s production capacity, improve the workforce's skills, and reduce the customs process, to allow imports and exports to flow more quickly,” he said.

--TNA 2005-06-11

[Tiger7Moth]

World Bank praises Thai economic growth and investment environment 

BANGKOK: --  The head of the World Bank in Thailand has praised the Thai economic growth.

He said the country had developed a more promising investment atmosphere than either India, or Brazil.

Thailand’s economic growth had been impressive and the country’s investment environment internationally renowned, the World Bank's Director for Thailand, Ian Potter, told a seminar in Bangkok on Friday.

Thailand ranked after Malaysia but ahead of India and Brazil, according to the World Bank’s two-year economic survey of 50 countries.

But the World Bank director warned Thailand that government red tape and the country's bureaucratic culture could hinder investment growth.

Thailand should improve its workforce’s foreign language and computer skills, he suggested.

It is difficult to maintain an impressive economic growth rate in the face of competition from other countries, especially the emerging East European nations, where the costs of investment are relatively low, he warned.

Meanwhile, a senior economist at the World Bank said Thailand still lacked enough professional workers and basic infrastructure.

Thailand needs to improve its capacity to compete with other nations by relaxing its tough government regulations, which have proved a significant obstacle to foreign investment, he said.

Bangkok’s investment environment is far more encouraging to foreign investors than other parts of the country, he said.

Half of Bangkok’s businesses use the Internet and information technology (IT), compared to only 30 percent of Thai companies in the South and the Northeast, he said.

Thailand must improve the ability of its workforce even though it is likely to push up capital costs by 15 percent.

The country needs to improve in several areas to stay competitive in the view of foreign investors, the Deputy Secretary General of the National Economic and Social Development Board (NESDB), Arkhom Termpittayapaisith said.

''We need to do more to increase the country’s production capacity, improve the workforce's skills, and reduce the customs process, to allow imports and exports to flow more quickly,” he said.

--TNA 2005-06-11

<{POST_SNAPBACK}>

Ratings of the countries are done based upon numerous statistical measurement. About a half dozen of the measurements have to do with unemployment in one way or another. Thailand is reported to have an unemployment rate of about 1.5% (don't recall exactly) and gets credit for this in numerous measurements, as I previously mentioned.

I don't know how Thailand has such an extremely low figure for unemployment. But, assuming this figure were true, it is meaningless in my opinion. It seems to me that there are many Thai people "employed" to do nothing at very, very low wage rates. For example, a man is employed at my building as a security guard. He earns less than $150 US per month and can be seen sleeping at his post every night. In the health club I go to there are many Fitness trainers. Whenever one uses an exercise machine, a Fitness trainer will stand behind you as you exercise, essentially doing nothing. Go to Central department store and count the sales people standing around doing nothing.

So, it seems that the unemployment categories which drive Thailand's rating are bogus. Thus, Thailand receives a much higher rating than it should.

I am not an economist and don't know about Thailand's competitors, such as, Malaysia. Just my opinion.

[TizMe]

It seems to me that there are many Thai people "employed" to do nothing at very, very low wage rates.

I think that you will find this is common in all 3rd world countries.

[Erwin1011]

It seems to me that there are many Thai people "employed" to do nothing at very, very low wage rates.

<{POST_SNAPBACK}>

I think that you will find this is common in all 3rd world countries.

<{POST_SNAPBACK}>

IMHO, you cannot longer call Thailand a developing country. It has all the characteristics of a developped country in place, with one exception. salary levels and the labour force structure. That however is the responsibility of the local government and the ruling class.

[aaaaaa]

That however is the responsibility of the local government and the ruling class.

<{POST_SNAPBACK}>

by class you mean - capitalists / farmers / proletariat ?

[Heng]

I don't know how Thailand has such an extremely low figure for unemployment.  But, assuming this figure were true, it is meaningless in my opinion.  It seems to me that there are many Thai people "employed" to do nothing at very, very low wage rates.  For example, a man is employed at my building as a security guard.  He earns less than $150 US per month and can be seen sleeping at his post every night.  In the health club I go to there are many Fitness trainers.  Whenever one uses an exercise machine, a Fitness trainer will stand behind you as you exercise, essentially doing nothing.  Go to Central department store and count the sales people standing around doing nothing.

Well, as long as it is enough to provide themselves with food, shelter, and medicine, it's better than being unemployed. "Low?" It's all relative anyway.

[george]

ECONOMY / SECOND-HALF OUTLOOK

Thailand heading out of 'perfect storm'

BANGKOK: -- Thailand's economy has already passed its lowest point, after encountering a ''perfect storm'' of negative factors in the first half of the year, Finance Minister Somkid Jatusripitak said yesterday.

Dr Somkid said economic growth in the first quarter was a satisfactory 3.3%, considering the impact of the drought, bird flu, the Dec 26 tsunami, soaring oil prices and ongoing violence in the South.

''We've never encountered something like this _ five factors coming together at the same time. With that in mind, 3.3% isn't low at all,'' he said at the opening of an economics seminar yesterday.

Dr Somkid noted that Thailand had outperformed other countries in the region, considering that Singapore had posted first quarter growth of 2.5%, Taiwan 2.5% and South Korea 2.7%.

He said three areas that helped keep first-quarter growth relatively robust were exports, up 12% from last year, investment, up 10%, and foreign investment, up 110% from the year before.

''Right now, what is important is that we maintain our stability, particularly the trade balance,'' he said.

For the first four months of the year, the trade deficit totalled $4.9 billion, with a current account deficit of $3.1 billion, due mostly to higher oil costs.

The National Economic and Social Development Board, which on Monday cut its growth estimate for the year by one full percentage point to a range of 4.5-5.5%, currently projects a trade deficit of $4.9 billion for the full year, but with the current account expected to show a surplus of $100 million.

Dr Somkid said that despite the recent weakness in the trade figures, the economy remained broadly stable, with international reserves at a healthy level of $49 billion.

''We need to ensure that we minimise any current account deficit. But even if we do post a modest deficit, it would not impact the overall economy, considering that our reserves are at healthy levels.''

Inflation is a concern, however, driven largely by higher energy costs. Inflation for the first five months of the year was 3.2% year-on-year, and is expected to reach 3.8% for the full year.

Prasert Bunsumpun, president of PTT Plc, the country's largest producer of oil and gas, said global oil prices were unlikely to decline through the rest of the year.

Dubai oil prices are expected to average $42.50 to $51.80 per barrel through the second half, he said, as low investments in new exploration would keep supplies tight and support current prices.

Assuming oil prices remained at current levels, Mr Prasert said local petrol would be priced between 21.97 and 24.41 baht per litre through 2005.

Diesel fuel, assuming limited state subsidies, would cost 18.19 to 19.30 baht per litre in the second half, but could rise to 18.74 to 21.19 baht if subsidies were completely phased out.

--Bangkok Post 2005-06-11

[kat]

It seems to me that there are many Thai people "employed" to do nothing at very, very low wage rates.

<{POST_SNAPBACK}>

I think that you will find this is common in all 3rd world countries.

<{POST_SNAPBACK}>

IMHO, you cannot longer call Thailand a developing country. It has all the characteristics of a developped country in place, with one exception. salary levels and the labour force structure. That however is the responsibility of the local government and the ruling class.

<{POST_SNAPBACK}>

Actually you can and should call Thailand a developing country, because that is a fact. If you want to question the classifications used by all world-body multilaterals and international finance measures, that would be a theoretical discussion. But as the fact stands today - that is, not how you or I feel personally or theoretically about it - Thailand is classified by the UN, the World Bank, IMF, and international banking infrastructures, as a middle-income developing country.

The state of development is much more than expressways, shopping malls, and expensive mobile phones. In fact, salary levels and the labor force structure are directly related to Thailand's development status.

Also, there are many other indicators of developing/developed status. One of the most significant is the strength and stability of institutions and political structures. Thailand's institutional climate is very weak, as is abundantly evident in every nook and cranny. One can find many examples in every single institution, but to save time, you can start with law enforcement and judiciary mechanisms. However, throughout the entire state apparatus there is no enforcement or regulatory consistency, which is fundamental to the rest of Thailand's development, including the labor structure.

I have been in a position where educated Thai people and foreigners alike have either stopped talking to me or became agitated simply because I referred to Thailand as a developing country in the course of an economic discussion. This is absurd, especially since a month later the PM himself referred to Thailand as a developing country. Why? Because it is one.

This seems to be the only developing country in the region that is not cognizant of its own status or history from an international perspective, which speaks volumes about the state of development here.

Edited June 13, 2005 by kat

[samran]

The state of development is much more than expressways, shopping malls, and expensive mobile phones. In fact, salary levels and the labor force structure are directly related to Thailand's development status.

Relative (edit) Salary levels tend to reflect labour productivity. In simple terms, wages will remain low so long as there is a lack of people doing jobs which add value to the economy, or where there are too many people doing a job which one person could handle.

Seeing less waiters hovering over you at a restuarant, or less security guards sitting around doing nothing will be a good 'canary down the mine' to guage Thailand's development levels. It will mean the redundant waiters at the restuarant (the ones who do the periphial jobs like replacing the pink tissues) will be out there doing something else and creating value for someone else.

Till that day arrives though, I suppose it is better for society on many levels that that pink tissue replacer still has a job and is not sitting around doing nothing, and at least has some money to feed and clothe themselves and send their kids to school up-country.

Edited June 13, 2005 by samran

[chownah]

The state of development is much more than expressways, shopping malls, and expensive mobile phones. In fact, salary levels and the labor force structure are directly related to Thailand's development status.

Relative (edit) Salary levels tend to reflect labour productivity. In simple terms, wages will remain low so long as there is a lack of people doing jobs which add value to the economy, or where there are too many people doing a job which one person could handle.

Seeing less waiters hovering over you at a restuarant, or less security guards sitting around doing nothing will be a good 'canary down the mine' to guage Thailand's development levels. It will mean the redundant waiters at the restuarant (the ones who do the periphial jobs like replacing the pink tissues) will be out there doing something else and creating value for someone else.

Till that day arrives though, I suppose it is better for society on many levels that that pink tissue replacer still has a job and is not sitting around doing nothing, and at least has some money to feed and clothe themselves and send their kids to school up-country.

<{POST_SNAPBACK}>

Good post. Not many people seem to understand (as you do) that for a nation to be prosperous it is important for individuals to have productive jobs....it is, afterall, the collective sum of everyone's productivity which makes or breaks a nations economy.

[maerim]

It seems to me that there are many Thai people "employed" to do nothing at very, very low wage rates.

I think that you will find this is common in all 3rd world countries./QUOTE]

It is also very common amongst local council employees in the UK at very high wage rates. from what I have seen of this mob most are employed as "observers" as in one working, four watching.

Here is a good tip, if you ever want to buy a van, buy an ex-council one as the hardest thing that has ever worked on them is the flashing light and the ashtray.

[mnoorsapl]

World Bank praises Thai economic growth and investment environment 

''We need to do more to increase the country’s production capacity, improve the workforce's skills, and reduce the customs process, to allow imports and exports to flow more quickly,” he said.

--TNA 2005-06-11

<{POST_SNAPBACK}>

World Bank praises Thai economic growth and investment environment 

But the World Bank director warned Thailand that government red tape and the country's bureaucratic culture could hinder investment growth.

--TNA 2005-06-11

<{POST_SNAPBACK}>

So let the World Bank take control?