Thailand should promote "Innovation eduction"

Published on July 16, 2010

Thailand should lay emphasis on stronger law enforcement, sufficient liquidity, and higher education to ensure a healthy economy in the next 10 years when competition and social needs are likely to grow, Bank of Thailand deputy governor Bandid Nijathaworn said.

At a seminar on economic devel?opment in the next decade, Bandid said it was imperative for Thailand to move towards creative products, as such commodity products as TV sets, computers and cars would become cheaper.

Given Thailand's 47th ranking in the world in terms of innovation, even trailing Indonesia's 40th, Thailand needs to take measures to promote creative products, he said.

He noted that liquidity would be a key factor in this promotion, but banks would be encouraged to lend with their deposits, not external bor?rowings, which could induce risks.

Meanwhile, the government should be thorough in launching social programmes, with clear tar?gets. He said the weak should be enabled to stand on their feet instead of being given free gifts. The current economic situation stems from high production costs, wide inequality and dependence on public funding, he said.

Economic guru Narongchai Akrasanee said Thailand should also put more emphasis on the agricul?tural sector, which employs a large number of workers. The value chain - from plantation, processing to power generation from agricultural by-products - should be highlight?ed.

The secretary-general of the Office of the National Economic and Social Development Board, Poramethee Vimolsiri, said Thailand in the next decade or two would grow in line with the rest of Asia. But as has been highlighted in the 11th development plan for implementa?tion from 2012 to 2016, Thailand's development will meet three main challenges.

On the economic front, it will be necessary that financial institutions are strong while the fiscal position is in balance.

On the social front, education must be strengthened, along with measures to promote health and aid for the elderly.

On the environmental front, Thailand will be affected by global warming and degradation in natu?ral resources.

He cited poor public administra?tion, an economic structure that can?not support sustainable develop?ment, and the growing number of elderly as major risk factors for Thailand.