Localism in Thailand - Media Criticism

Media Criticism

Asia Times Online has published an article that analyzes the Thai military junta government's economic policy that is fully influenced by the King's self-sufficient philosophy . The article notices the unexpected, rather bold step in Thailand economic development of the military junta government, endorsed by the King, that willingly responds to the King's philosophy. The article criticizes the philosophy as being so new as to have no academic ground and no empirical approval. As a consequence, any misstep, whether improper interpretation from the philosophy to be economic policy or the unaudited practices, would have caused the Thai economy's demise. The article also claimed that the protectionism that the Thai government has used will disperse foreign investors and reduce short term cash flow from outside the country.

The article emphasizes the contradiction between capitalism and self-sufficient economics, which favors long-term economic alignment with what is environmentally friendly, this being the main principle in the philosophy, particularly in less-regulated markets. The Thai model of sustainability is slightly different than Western sustainable development models. In the Western concept of sustainable development, the force that drives the will to protect the environment comes from society's long-term needs. In the Thai model, the driving force comes from the basic human psychological state of need. This psychological state of need can be refined through a far-sighted government education of the public. The other name for localism in Thailand is called "Buddhist Economics" .

The philosophy has been demonstrated by Pridiyathorn Devakula, Thai Minister of Finance, who proclaims he is a supporter of the King's self-sufficiency economy, or Localism. Examples of his policies that follow the King's philosophy of sufficiency economy are: limiting foreign companies investments, a practice that enormously reduces the liquidity of the Thai economy; regulation and investigation of foreigners' sources of funds; and capital controls that allegedly destroyed US$20 billion of market value in one day. As a consequence of capital controls and investigations into foreign investors, the World Trade Organization (WTO) sent negative feedback to Thailand which cast doubt on the ability of Thailand to continue to be a WTO member . The prime minister Surayud Chulanont, who also proclaims the King's localism, has called for the former minister of commerce Somkid Jatusripitak, who is pro-capitalism, to return to the service of the country.

An article appearing in the Bangkok Post on 22 February 2007 noted that Somkid Jatusripitak, who had been the finance minister in the previous Thaksin-led government, resigned his new position as spokesman for the sufficiency economy within days of being appointed. His appointment to the position had been heavily criticized, and Mr. Somkid said that he resigned in order to prevent ongoing divisions in Thai society.

The Bangkok Post reported on 23 February 2007 that there is now discussion about whether the committee drafting the new constitution should include language defining Thailand's economic policy. The previous constitution, drafted in 1997, had identified capitalism and free markets as the Thai economic philosophy.

One example of the Thai government's application of the King's self-sufficient philosophy is in promoting the use of local currency. The use of "Bea-Kud-Shum" as a local currency in specific parts of rural Thailand was endorsed by the Thai government in August 2006, in spite of the fact that the use of this currency instead of the standard Thai 'Baht' had been deemed illegal previous to this. This example also shows the difficulties of applying the philosophy, in that by using local currency such as "Bea-Kud-Shum", the currency itself is exempted from tax collection and can therefore interfere with the tax system.