Thailand’s Economic Strategy In A Current & Post Pandemic World

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Thailand’s Economic Strategy In A Current & Post Pandemic World
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Thailand’s Economic Strategy In A Current & Post Pandemic World

Written By - Patra Manas. 17-11-2020.

The coronavirus pandemic has deepened the geopolitical and geoeconomic fault lines which was evident pre-pandemic itself, brought about by the rivalry between United States and China in terms of maritime Asia-Pacific, trade imbalances, economic and technological competition.

Although a global pandemic, each country has it’s own path in dealing with the consequences of the coronavirus fallout. 

Most developed economies concentrate on surviving the pandemic, health wise and economically, ie. protecting the health of their citizens while limiting the coronavirus economic impact, in order to see a quick bounce back to pre-pandemic economy.

However, developing and emerging economies like Thailand should use this opportunity to tackle and remedy the hindrances to the country’s growth that was prevalent pre-pandemic. Inability to do so, could see these issues balloon into a spiralling economic crisis, hindering Thailand’s ability to put its best foot forward into the post pandemic world. Continue Reading Below...

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Thailand’s economic crisis is the result of a combination of an economic slowdown that predates the pandemic and the economic fallout from the coronavirus pandemic.

Therefore, an integrated and comprehensive approach is required to see recovery happen not towards “old normals” but moves at the same time towards a reimagined  Thailand, one that would thrive in the following decade in a world that is unlikely to resemble the previous ten years.

Adapting to a new and uncertain world will require reworking national priorities and reimagining models of economy.

To do this, the country needs to focus on issues with clear short, medium and long term outcomes.

The immediate policy response to Covid in Thailand has been to prioritise stabilisation of the economy and support a quick recovery, but focussing on policies for durable and sustainable high growth in the medium-run after the crisis is  equally crucial.

Investment in structures and policies that builds the economy from the bottom up  such as investment in human capital including education, workforce up-skilling, health and re-skilling for rehabilitation into the workforce of an increasingly ageing population, support of R&D in various fields to increase productivity and increase participation in GVCs with higher value products could potentially lift up Thailand’s economy to trend growth as recovery begins.

In summary, Thailand’s economy’s recovery faces very different challenges from that of developed countries, where governments are focussed on emergency fiscal efforts and stimulus packages designed to provide a measure of stability to restore the conditions that existed before the pandemic struck. 

Thailand, however, needs to recover from the effects of the pandemic induced economic crisis and at the same time find the path to sustained high growth.

Merely surviving the pandemic induced economic crisis is not an option.