Supachai on the economic "blessing in disguise"
of the 2006 coup
By Jon Fernquest |
Yesterday's Bangkok Post covered comments on the post-coup Thai economy made by Supachai Panitchpakdi, head of the United Nations Conference on Trade and Development (UNCTAD).
He mentioned the increased fiscal transparency that the post-coup government fostered as well as the compulsory licensing of pharmaceuticals that should be resolved first by the WTO before rushing into a Free Trade Agreement (FTA) with the US.
He also suggested that the Thai government should devote more time to transport, environment, energy and IT issues to increase Thailand's future long-term competitiveness in the global marketplace.
Here's the summary of his comments published in the Bangkok Post:
The past 16 months, during which Thailand has been governed by a coup-installed administration, has resulted in a more balanced economy..."Do not regard the past one year and four months as a waste of time. In fact, it has been a blessing in disguise. It has helped slow down certain economic rhythms. The economy might not have moved fast but it adjusted the unbalanced growth"...
The country's economy has not totally lost out under the administration as it helped slow down the imbalance in the economy, including a stream of bilateral agreements, said Mr Supachai.
The economic adjustment helped reduce public debt burdens which had been driven by the Thaksin Shinawatra government's populist policies and views on bilateral trade agreements.
The coup-installed government has tried to work for the fairness of several issues, added Mr Supachai.
"Importantly, the free trade agreements [FTAs] have been stalled for a while and this allows us to rethink and reconsider the importance of intellectual property [IP] issues that have to be in compliance with the World Trade Organisation [WTO]," he said.
He was referring to the Thai-US FTA talks, which were suspended after the Sept 19, 2006 coup d'etat.
He said Thailand could and should wait for the conclusion of the WTO review of the IP issue and should not necessarily rush into a bilateral trade deal.
Mr Supachai said neither Unctad nor he are against the FTA. But such agreements, here or elsewhere, must take into account the effects on all parties.
He emphasised that the Thai-US FTA should not include pharmaceutical products as they fall under a WTO agreement on intellectual property rights.
Discussing the compulsory licensing of medicines, Mr Supachai said the issue was not the sole mistake of the outgoing government. It was in line with the WTO's procedures, but there may not have been as much consultation with concerned parties as there should have been.
Mr Supachai refrained from commenting on the new coalition government. He simply said Thailand needed to pay less attention solely to trade issues and spend more time on transport, environment, energy and IT issues.
"The new government might not have time for this long-term mission, but it is a must for its competitiveness," he said.
He also said monetary and fiscal measures should be carefully monitored.
"The Thai economy should not rely solely on monetary or fiscal measures or a swing between one and another. Fiscal measures are like penicillin - they are strong and if they are used for a long time they will have strong side effects," he said.
(Source: Bangkok Post, general news section, 05-02-08, temp-link)
Vocabulary:
a blessing - a good thing that happened to you
a blessing in disguise - it seemed bad at first, but in the end it was actually good
UNCTAD - United Nations Conference on Trade and Development, the agency in the United Nations that deals with trade, investment and development issues, its goals are to "maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis" (See Wikipedia)
fiscal transparency - reporting government expenditures in a way that the public can see them, so that they figure into any government deficit, so that no expenditures are "off balance sheet"
fostered - help it develop
resolved - solve a problem
rushing into - adopt and start doing too quickly (before carefully considering the consequences)
rhythms - regular patterns of change over time (the rhythm of the seasons in a year, or monthly changes in one's body, or your heart beat, etc)
bilateral - between two countries
multilateral - between many countries
bilateral agreements - agreements between two countries (for example, a free trade agreement)
multilateral agreements - agreements between many countries (for example, WTO agreements)
reduce public debt burdens - reduce government borrowing to finance a deficit
stalled - not moving forward, no progress being made
compulsory licensing - when a government forces the holder of a patent, copyright, or other exclusive right to grant use to the state or others (See Wikipedia)
in line with - agreeing with (See glossary)
consultation with concerned parties - before making a decision, asking people who will be affected by decision
coalition government - government formed by several political parties joining together and combing their votes
penicillin - an antibiotic used to fight infections
side effects - bad things that drugs can do to you, in addition to curing your disease (for example, making you sleepy or giving you a red rash all over your body)
