- By Pooky, this blog economics journalist
A great deal is being debated in Thailand, as to the true state of Thailand’s economy. One point of contention is the Foreign Direct Investment (FDI) figure.
The Thai government of Abhisit and the Thai BOI-down to most Thai think tank, including the media, says Thailand is doing great. The Nation Group, today went splashing on the front cover, in a major way, how well Thailand FDI is doing-with all sort of graph.
In sum Thailand got about US$10 billion in a hotly promoted “Thailand Investment Year” as the Nation Group pointed out.
- This blog just wants to point out, that Thailand’s economy is about 3 times the size of Vietnam’s economy-and yet Vietnam got US$13 billion in DFI.
Last year, Vietnam’s FDI dropped about 20%, and yet the total FDI figure, was about US$13 billion. We also just want to point out, that “In the pipe-line, committed FDI to Vietnam, is about US$70 billion.
There are some serious, economic and societal problems to Thailand. These problems are not being resolved, because simply stated, the pressure is not there to address the problems. That is because, practically, all the information floating around, including economics, are just for political consumption-edited and propagated.
Clearly, FDI, brings with its lots of problems, and the Washington Consensus, that focus on global trade and investments, has some serious problems associated with it. We are actually, happy, that Thailand is failing to attract FDI. However, hyping up a successful FDI, when it is a total failure, does not help anything.
- If the way to go is the Washington Consensus, then the basic facts that Thailand is failing on that road is needed to be recognized and problems addressed.
However, this blog believes, what is really needed, is some serious thinking on the direction of Thailand’s future growth, both economically and societal.