Recently, Dr. Sippanonda Ketudat, Chairman of the National Economic and Social Development Committee (NESDC), presided over a special NESDC meeting to consider adjusting the Eighth National Economic and Social Development Plan (1997-2001).
The Eight Plan, with the prime focus on human development, was formulated when the Thai economy was healthy. Things have changed and the Thai economy is now critical and being supervised by the IMF Rehabilitation Plan, so the Eight Plan's targets had to be adjusted.
However, the main focus would remain, but the investment criteria had to be adjusted to be consistent with the IMF bail-out plan. In so doing, the NESDB would cooperate with the Ministry of Finance in adjusting the national investment scheme.
All investment budgets at the ministerial level must be reconsidered, and investment priorities for FY 1998-1999 must be indicated.
On this matter, NESDB Secretary-General Wirat Wattanasiritham added that the NESDB was about to propose to the Cabinet three criteria for project scrutiny. Firstly, focus should be on investment projects that use low import content, generate employment and use locally-produced goods. Those projects, relying on import content, should bring in foreign exchange earnings to reciprocate the import value. Thirdly, any joint venture of either public or private sector with foreign counterparts must rely on foreign capital not loans in order to reduce external debt burdens.
More discussion on the above criteria with the office of the BOI would be sought, said Mr. Wirat. On this matter, both offices agree that any investment projects, requiring imported materials, generate sufficient export revenue to the country in return.
These critieria would be applied mainly to new investment projects, and those approved projects would be considered on a case-by-case basis, said Mr. Wirat. Top priority would be on maintaining the current account deficit, economic expansion and inflation according to the IMF conditions. The office of the NESDB would assess the national economic situation every 3 months and prepare a report to the Cabinet for consideration.
--Development News Bulletin, National Economic and Social Development Board, Volume 12, No.8: August 1997--
The Eight Plan, with the prime focus on human development, was formulated when the Thai economy was healthy. Things have changed and the Thai economy is now critical and being supervised by the IMF Rehabilitation Plan, so the Eight Plan's targets had to be adjusted.
However, the main focus would remain, but the investment criteria had to be adjusted to be consistent with the IMF bail-out plan. In so doing, the NESDB would cooperate with the Ministry of Finance in adjusting the national investment scheme.
All investment budgets at the ministerial level must be reconsidered, and investment priorities for FY 1998-1999 must be indicated.
On this matter, NESDB Secretary-General Wirat Wattanasiritham added that the NESDB was about to propose to the Cabinet three criteria for project scrutiny. Firstly, focus should be on investment projects that use low import content, generate employment and use locally-produced goods. Those projects, relying on import content, should bring in foreign exchange earnings to reciprocate the import value. Thirdly, any joint venture of either public or private sector with foreign counterparts must rely on foreign capital not loans in order to reduce external debt burdens.
More discussion on the above criteria with the office of the BOI would be sought, said Mr. Wirat. On this matter, both offices agree that any investment projects, requiring imported materials, generate sufficient export revenue to the country in return.
These critieria would be applied mainly to new investment projects, and those approved projects would be considered on a case-by-case basis, said Mr. Wirat. Top priority would be on maintaining the current account deficit, economic expansion and inflation according to the IMF conditions. The office of the NESDB would assess the national economic situation every 3 months and prepare a report to the Cabinet for consideration.
--Development News Bulletin, National Economic and Social Development Board, Volume 12, No.8: August 1997--