Concept of "New Economy"
During the past decade, the world economy has been moving towards free market economy. Mean- while, the revolution of Information Technology had created an active channel of world trade through electronic commerce. These phenomena have influenced economic changes in the developed countries in the socalled force of information economy, network economy network economy and new economy. These definitions are some examples which are derived from the concept ideas of economic development in defferent views of several agencies and countries. Each country set its own vision, policy and economic development plan to be in line with the changing economy.
Thailand and concept of new economy
As the consequence of the world trade system and modern technology development, Thailand has prepared to respond to these changing situation and adjusted to fit the economic and social development scheme under the philosophy of sufficiency economy. The development policy guideline is re-oriented to balance, quality and sustainability in every sector of Thai society.
The word "new economy" for Thailand can be defined as the development of information technology which is consistent with economic and social structural changes and the changing situation. The new economic approach would help Thailand to be more self-reliant and competitive in the world and regional trade.
However, the fundamentals of education and science and technology are still wead and need to be dependent on foreign countries. These structural weadnesses are impediments to Thailand's efforts in competing in the international market.
To create a strong foundation for national development in the Ninth Plan, various key conpepts are centered: basic knowledge for human development, research-based development and the formulation of policy associated with the changing world economy, with regard to the balance and immunity of the Thai economy and society.
Development stages to move to the new economy
As a result of such changes and constraints, Thailand has adjusted its economy to enter into the new economy. In this regard, it needs to proceed no the society-based development approach in line with the balanced economy. Two areas have to be developed concomitantly;namely,
1. Develop information society
The progress of science and technology could link data and information worldwide. This has resulted in the application of information technology, electronics and computer to the business and the daily life. In this context, Thailand should develop physical characteristics to enhance potentials and efficiency to accommodate various data and build database on science and information technology in line with the Thai society. Furthermore, the opportunity of learning and disseminating modern information as well as the continuing development of quality information should be promoted equally at every level.
(1) Physical infrastructure
- to hasten to efficiently develop transportation and infornation network with appropriate investment cost.
- to support remote areas to access to information technology through collecting fair service charge for everyone.
- to apply information technology into the public affairs system through increasing the efficiency of tools at the levels of the central and local agencies via computerised system.
(2) Legal infrastructure should be adjusted in line with the present situation in order to:
- establish flexible laws and regulations and be wider for information technology, innovation and research and development.
- support the business development relating to information technology, especially for Business to Business (B-B) and Business to Consumer (B-C).
- protect against misuse of information technology, particularly the unethical use of electronic information and illegal reproduction of software programs.
- improve rules and regulations regarding hierarchy for the benefit of public services through information technology.
(3) Macroeconomic infrastructure
-Tax policy is aimed at supporting several aresa; namely,
> scientific advancement and worldwide technological application.
> technology absorption and joint technological development between Thai and foreign investors.
> application of efficient computer and solfware.
(4) Investment policy : The utilization of information technology should be jpromoted to increase the production efficiency for the private sector through applying in agriculture and services. This guideline would help support the effciency of production, marketing, inventory, human resources, finance and research and development. The necessary data is as follows:
- Reference database : The public sector should focus on haveing economic and social data with regard to speed, accuracy and transparency. This information would be beneficial to the planning of the private sector and foreign investors.
- Business data : The govement should rely on its mechanism and tools in promoting investment for the private sector's business, through granting tax privilege and other benefits.
- Administration data base : The govement should support nd develop the database for its own agencies to utilize for making decision at the policy and implementation levels.
2. Development for Knowledge-based Society
In order to create knowledge-based society, education system should be readjusted to continuously increase the ability and opportunity to learn and develop human skill as follows:
(1) Education reform
- To provide comprehensive and standardized facilities for education as well as reduce the difference in quality of education among the regions.
- To support the development and upgrading of labour skills consistent with labor market demands and canging economic situation.
- To speed up the application of information technoloty at all levels such as , educational institutions, goveenment agencies and hospitals.
- To support the educational instututions through providing knowledge-to-practice in the area of Ecommerce.
- To improve the quality of education in major subject; namely, Mathematics, English and Sciences.
- To strengthen research base on science and technology
- To apply dharma principle as well as culture and local wisdom with modern knowledge and technoloty.
- To promote the capability of personnel in science and technoloty in terms of quality and quantity.
(2) Human development
- To create the potential of the people to be capable of utilizing information technoloty at all levels : school, household, community and remote education.
- To create skills of porblem solving as well as particular management in marketing, finance and those of applying modern technoloty, electronic equipments and foreign language.
- To adjust how to manage human development.
- To promote the life-long learning proceess.
- To continuously create consciousness on skills development and learning (such as ability to think, work, have, life-long learning skills, have sound reason and be ready for change.)
Sufficiency economy and new economy philosophy
On the surface, it might appear that sufficiency economy in not compatibel with the new economy. But on closer analysis, it may be confirmed that the pursuit of sufficiency economy in Thailand does not preclude a fair degree of involvement in the economy. In its essence, the philosophy of sufficiency economy advocates the usre of the "middle path", thus ruling out the use of extremities, and favors moderation, self-reliance, not self-sufficiency in the economic sense, advocates balanced development in line with forces of globalization and shielding against inexitable shocks and excesses. The philosophy also emphasizes the streanthening of the moral fiber of the nation so that everyone from public offcials to the general population adhere to the principle of honesty and integrity.
The combination of sufficiency economy and new economy is an important principle to the Ninth Plan. It will be the development guideline consistent with the future situation in order to lead the Thai society to the sustainable development in the globalized world.
NESDB Organizes Seminar on Recommendation on Transport of Dangerous Goods
On September 26 th , 2000, Dr. Sippanondha Ketudat, the Chairman of the National Economic and Social Development of the National Economic and Social Development Board presided over the opening ceremony of the Seminar on "Recommendation on Transport of Dagerous Goods" at the Siam City Hotel, Bangkok.
At this seminar, the Office of NESDB and Ministry of Industry, Ministry of Transport and Communications and the Bangkok Metropolitan Administration jointly formulated the project on prevention and protection for the transport of chemical substances and dangerous materials. In this regard, Government of Germany provided technical assistance through the office of NESDB as the coordinator among the concerned agencies.
The project implementation framework in cluded 1) The development of classification system on chemical substances and safety control standard, based on UN safety standard for transportation of dangerous goods specified in "Recommendation on the Transport of Dangerous Goods" ( 2 books). 2) The through coordinatiing and gathering information technoloty system regarding management in emergency through gathering information concerning transport costs on chemical and dangerous materials and lthers from pubic and private sectors. 4) The examination and granting of certification.
The Recommendation on the Transport of Dangerous Goods Book 1 is focused on the general reles for transport of dangerous goods which is in line with the standard and free trade conditions and can be put into practice. These recommendations which have been approved by the cabinet on May 23 rd,2000 are used as teh basic guideline for setting up rules and regulations. These rules and regulations will have an effect on economic activities made by the private sector. In so doing, this esminar was organized by the Office of NESDB to create a mutual understanding and make preparation before the laws are enforced.
Dr. Sippanondha Detudat stated in the opening ceremony that it is a great pleasure to learn that the private sector and the entrepreneurs involved with the transport of dangerous goods were enthusiastic and active to cooperate with the public sector in developing the safety system for transporting dangerous goods in Thailand. Thay have shown their consciousness and social responsibility. At present, more than 40}000 types of chemicals and dangerous substances are spread in the world markets and the international community is aware of the danger which may occur to the people and environment.
Though the Recommendation on the Transport of Dangerous Goods Book 1 is consistent with criteria of UN standard and the conditions in Thai and international laws, it is understood that they are regarded with high standard and considered hard to apply in practice, particularly for Thailand which has started at the beginnig point and lacks knowledge, personel and budget to support. However, the awareness of the problem at the first step would provide ample opportunity for solving the problems in future. All in all, the manuals and other documents should be disseminated in order to promote better understanding.
Outcomes of Sub-regional Seminars to Promote Understanding in Regional Development Plan Formulation Under the Ninth Plan
Mr. Sansern Wongcha-um, Secretary-General of NESDB discolsed the seminars on "Promotion of Understanding in Regional Development Plan Formulation of the Ninth Plan utilizing the pholosophy of Sufficiency Economy as the principle". The implementation was made in 9 sub-regions with the attendance of 300 representatives in each sub-region and the seminar was held during August 24th - September 15th,2000.
The Secretary-General stated that the seminars were organized to promote understanding in the direction of the Ninth Plan which will be the framework of the regional action plan and also the brainstorming process to link with community development plan as a core of the action plan, and the coordination between local, district and provincial plan. In so doing, the outcomes of cooperation among the parties concerned in formulating the development plan at the community level can be summarized as follows:
The coordination between the development plan at the community level and the government plan : The understanding on the Ninth Plan should be created for the community, through stressing on understanding contents and planning reocess gained from brainstorming among the people nationwide and on vision of multilateral parties at the community level. Furthermore the community plan should focus on the process rather than the outcome and should be the comprehensive plan in the hsort and long terms. Also, it should be made through relying on the potential of the community to build data within the community and body of knowledge in exchanging, learning and network, coordinationg with those involved, and requesting support from the public sector regarding the activities that are beyond the capacity of the community.
The cooperation between the development parties regarding the formulation of development plan at the commuinty level : The roles of public sector, educational institution, private sector, NGOs and local organiztion should be cearly designated. Moreover, the establishment of network and the building of coordination mechanism among multilateral parties at the local level should be made in order to integrate the community into the holistic center.
Mr. Sansern Wongcha-um finally stated that the 9 sub-regions would like to get support from the authorities concerned in translating the Ninth Plan into action. In this context, the authorities concerned shoulk assign the duties for the provincial officers to work for the community and allocate the budget and build the instructors to help support the community. The linkage between the community development plan and development plan of community, tambon, province and central regions should be made at the policy and implementation levels in order to reduce the redundancy of plans, profects, target groups and budget for implementation. Meanwhile, rules and regulations should be re-adjusted to focus on the involvement of the community in translation of the plan into action such as the budget administration reform for decentralization to the community and the linking of information between the community and outside. The role of central agendies should be readjusted from giving commands to be facilitators for the community. Futhermore, most participants attendisng the seminar agreed that the process of building understanding on the Ninth Plan, especially on the contexts of the Ninth Plan derived from the people's participation should be created in all concerned parties.
Development News Bulletin, National Economic and Social Development Board, Volume 15, No. 10 : October 2000 End.
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