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[Thai Economics Library | Archives| Currency Crisis 2007| Entrepreneurs]
October 19, 2009

maptaphut

Map Ta Phut closures a wake up call
Time to move industry to rural hinterland

By Jon Fernquest

Map Ta PhutWhat if rural Thailand had factories and industrial parks just like Thailand's prosperous Eastern Seaboard near Bangkok?

What if industrialization was happening in the rural farming areas of Thailand as well as Bangkok? 

How to best bridge the income gap between Bangkok and the rest of Thailand? 

Problems of "uneven development" and the "rural-urban divide" are a global phenomenon by no means unique to Thailand.

Asian neighbors such as South Korea and Japan have bridged similar income gaps in the past. How did they do it? [potential research question]

In today's article (below) Thailand's Minister of Industry Charnchai Chairungruang discusses possible solutions to these problems.

Protests then slowly, slowly change....

Thailand probably has a greater tolerance for protest and freedom of speech than its Southeast Asian neighbors Cambodia, Laos, and Burma. Witness the neverending protests.

Has the government ever really listened to the protests and acted?

Chang Noi writing recently (Sept 21) on the recent Map Ta Phut industrial closures traces the history of how local protests went nowhere until recent court decisions (Read article).

Today's article begins after the vocabulary:

Map Ta Phut Industrial Estate - one of Thailand's largest industrial estates located in Rayong (See interactive map)
industrial park, industrial estate - a special area especially for factories with special facilities (roads, transportation, water, electricity, waste disposal) (See Wikipedia)
a wake up call -
an important event that tells you that you must change now  
prosperous - rich, wealthy (business doing well so high incomes) 
Eastern Seaboard - a heavily industrialized area of Thailand stretching from Bangkok south through Chonburi, Sri Racha, and Pattaya to Rayong
industrialization - when a country starts building its factories to manufacture goods in the country, rather than importing them
bridge the gap - end difference between two things
bridge income gap -
make the incomes equal  
uneven development -
when two areas develop economically at different speeds
rural-urban divide -
when the countryside (rural) of a country is poor and the city (urban) is rich
a phenomenon - something observed to happen or exist
by no means unique to - isn't the only place where this happens 
tolerance - allowing people to say or do what they like even if you do not like it (do not agree)
freedom of speech - the freedom to speak without censorship or limitation (See Wikipedia)
Witness.... - Look at and consider...
rural hinterland - the edges of the country, far away from big cities
uneven development - when different parts of the country develop at different speeds, so one part is rich while the other is poor 
rural-urban divide - when the farming part of a country in the countryside (rural) is poor and the city (urban) is rich
traces the history - follow the events in history, step by step 
went nowhere - had no effect, failed to have any result, did not change anything 

IN THE HOT SEAT

Industry minister determined to resolve Map Ta Phut impasse but agrees new models are needed in the future.
19/10/2009
 Post reporters

...Industrial policy and regulation have been in the spotlight since the Administrative Court on Sept 29 ordered the of 76 industrial projects in suspension of the operating permitsMap Ta Phut, pending a closer look at whether their environmental and health impacts violate Section 67 of the 2007 Constitution.

Industrialists, their creditors, customers and thousands of workers want to know how long it will take before some 400 billion baht worth of projects will get clearance to continue...

It's unreasonable, he says, for environmentalists to think they can halt industry altogether. "Thailand still needs investment and industry, otherwise where will we gain income from? If we depend on farming alone, can we survive?" he asks rhetorically.

in the hot seat - under a lot of pressure, has difficult decisions to make
impasse - obstacle, difficulty or problem preventing progress and moving forward
in the spotlight - the public is watching him , interested in what he will do next
administrative court - a court that solves disputes concerning the exercise of public power and government administration (See court websitehistory of Thailand's administrative court and Wikipedia on administrative law)
suspension - stopping for a period of time (temporarily)
suspension of the operating permits - ending official permission to operate temporarily 
X pending - issue or case X waiting to be dealt with or settled
pending a closer look - decision waiting until they look more closely at the problem
environmental and health impacts - effects of a project on health and the environment
2007 constitution - Thailand's constitution after the 1997 coup (See Wikipedia and read the constitution)
Section 67 of the 2007 Constitution - on community rights (Read section)
creditors - companies or people how are owed money (who lent money to others and have not been paid back yet)
clearance - official permission to do some activity
get clearance to continue - get official permission to continue doing an activity
asks rhetorically - (not really asking a question)

Mr Charnchai is determined in any case to move the industrial sector into a new era, with new practices.

"From now on, industry must be developed in the form of clusters, located in limited zones, developing their own communities. This way, they would never be a burden for the community," he told the Bangkok Post.

By mapping out zones and determining appropriate activity in each one, industrial and residential areas should be absolutely separate.

an era - a period of time in history
a cluster - a small group of things close together
a burden - a difficult thing to do (takes a lot of time and effort)
a burden for the community - a difficult thing for the community to do
appropriate activity - activity that is ok (acceptable, suitable) to do in a situation 

He has already asked the Industrial Estate Authority of Thailand to start working on a plan, starting with five northern provinces and eight northeastern provinces where new estates for the new types of projects could emerge. Improved road links with China are one reason for the shift in geographical focus.

"A province like Khon Kaen would be a good home for the ethanol industry," he says. "There are lots of sugar mills. They are also ethanol makers themselves."

As well, border provinces have potential as zones for labour-intensive industries that could tap workers from neighbouring countries under a system that would curb the problems associated with illegal migrant labour.

"I hope to see this project ready to seek approval from the cabinet within three months," said Mr Charnchai.

Industrial Estate Authority (I-EA-T) - Thai government agency that organizes and creates industrial estates, also has the responsibility of decentralization of industrial activity away from the capital to the outlying provinces of Thailand (See Wikipedia and website)
ethanol industry - the industry that turns plants (sugar, tapioca...etc) into fuel for cars (See Wikipedia)
industrial zones - special areas of the country where a lot of big factories are located (with special "infrastructure" such as electricity, roads, and power to support them)
labour-intensive industries - industries that rely mainly on workers and less on machines and technology
tap - use
curb - stop or reduce
migrant labour - workers who move to another country or region to work and make more money (See Wikipedia)
seek approval - try to get official permission to do a project

However, at Map Ta Phut, he seems to prefer to play hardball, saying that nobody can turn back time since Map Ta Phut has grown so large. But he agrees it should be treated with special measures to ensure that both local residents and industry can coexist.

He cites a National Economic and Social Development Board research study, showing that the contribution to the nation by industrial activity would hurt the environment in the order of 20% of the total benefits industry creates.

"So that means the industries need to find ways to reduce the damage caused by their activities. We have a number and target to make it, so you [industrialists] do it."

play hardball - act ruthlessly, do anything to get what you want, even being unfair or harsh
turn back time - go back to some point in time in history, and do history over again, this time doing it the right way
coexist - live together and function together (without fighting)
National Economic and Social Development Board (NESDB, Sa-pa-pat) - Thai government planning agency for economic development, creates five year plans with an agenda of: 1. Alleviation of Poverty and Income Distribution problems, 2. Enhancing Thailand’s Competitiveness, 3. Promoting Social Capital Development, 4. Promoting Sustainable Development (See Wikipedia)

(Source: IN THE HOT SEAT, Industry minister determined to resolve Map Ta Phut impasse but agrees new models are needed in the future, 19/10/2009, Post reporters, link)


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