Two economists from the World Bank, Ndiame Diop and Hassan Zaman, have stressed the critical need for political stability, urgent reforms and the development of high-value-added sectors in Thailand, to ensure sustainable long-term growth. In an exclusive interview with Nattha Komolvadhin of Thai PBS World, they shared their insights and highlighted the key areas requiring attention.
“I think the recent election in Thailand is momentous for Thailand. We all hope for Thailand to embark on a period of political stability,” remarked Diop, the World Bank’s Country Director for Brunei, Malaysia, Philippines and Thailand. He also emphasised that political stability, alongside effective policy and economic reforms, can make Thailand highly competitive and foster rapid growth.
Thailand has made significant strides in social and economic development, transitioning from a low-income to an upper middle-income country within a generation. It has, however, faced challenges in escaping the middle-income trap for over 20 years. To achieve its ambition of becoming a high-income country, Thailand needs to sustain a growth rate of 5 to 5.5 percent, a considerable increase from the current 3.5 percent.
Zaman, the World Bank’s Regional Director for East Asia and Pacific, stressed the importance of inclusive growth, stating, “You have to make sure that the growth that you have (is not only) enjoyed by the super-rich, but actually shared among the population.” He recommended prioritising investment in skills development, cutting-edge technology and research and development, drawing inspiration from successful countries like South Korea.
Hassan Zaman
As Thailand grapples with the challenges associated with an aging society, the economists urged the country to double its efforts in driving economic growth. They highlighted the urgency of implementing immediate economic reforms, including the removal of business restrictions. Thailand currently ranks as the second most restrictive country in the region for foreign businesses, reducing foreign investment attractiveness. By creating a more favorable business environment, Thailand can stimulate sustainable growth and attract greater foreign investment.
Diop cautioned against excessive reliance on the tourism sector, traditionally considered a low-value-added sector. He encouraged Thailand to shift its focus towards developing high-value-added sectors, such as manufacturing and agriculture. This strategic shift will not only contribute to long-term and sustainable growth, but will also drive job creation.
Ndiame Diop
The World Bank economists emphasised the indispensability of political stability, urgent reforms and the development of high-value-added sectors for Thailand’s long-term growth. Their insights shed light on the potential of Thailand’s skilled workforce, robust private sector and digitally savvy young population. By implementing the recommended reforms, Thailand can achieve rapid growth and enhance its competitiveness on the global stage.
By Nattha Komolvadhin
To watch the entire interview, click on the following link:
